Category Archives: talk on finance

Quick Tips to Avail Tractor Finance for Agricultural Purposes

Tractor finance for agricultural purpose is extremely useful for people whose primary mode of occupation is farming. In earlier days, this occupation was conducted by making use of bullock carts and ploughs but with the advent of technology, things have taken a rapid turn, for the better. The productivity has definitely increased with the usage of tractors and they are useful to simplify the complicated farming process.

The main issue here is the affordability of these machines. Purchasing this machine becomes difficult for some; therefore, quite a number of banks launched flexible tractor loans in order to realise the dreams and ambitions (of the farmers) of owning a tractor and multiplying the output.

Tractor Finance for Agriculture Purposes

The following tips will help you obtain a tractor loan:

Look out for a financer

This is one of the most important tasks because quite a number of financial institutions will offer you varied rates and you need to select one that suits your needs best. This can only be possible if you read the loan documentation carefully of every institution you approach. This will help you decide what is perfectly suited to your requirements.

Apply for the one offering you best interest rates

The interest rates always depend upon the amount you intend to borrow, the duration of the loan (also known as the tenure) and other similar factors. Hence, you should keep that in mind before availing tractor finance for agricultural purposes.

The documents required

In order to avail tractor finance for agricultural purposes, you are required to produce the following documents:

  • Documents pertaining to land ownership
  • KYC documents (that include your name, age, address and DOB)
  • Encumbrance certificate
  • Your guarantor’s KYC and ownership documents

You can avail the facility of a foreclosure

You can also avail a provision where you can foreclose the loan before the closing date. This is for all those people who do not wish to remain under the debt of a loan (for a long term). This provision is allowed after the completion of 6 months (commencement) with an additional fee of about 5 percent on the outstanding loan.


Tips for Receiving an Approval for Small Business Loans

Securing funds for small business loans have become simpler; you need to follow the right steps and prepare in advance to increase your chances of securing a business loan approval.  Certain companies that are looking out to grow require these loans to increase their working capital, upgrade or hire more employees.

Take a look at the following details in order to avail a business loan:

Provide all your information

This is mandatory and you are required to produce all the specifics and details about how you intend to make use of the funds. You also need to provide them with information regarding how you will accomplish your goals; therefore, you should prepare in advance to answer certain questions that the lender will pose to you.

Share your financial information

You will have to provide your lender with all the financial information and background of your company and your future growth plans that include your personal information. This information will help the bank and the lender to gain an insight into your current financial scenario in order to sanction your business loan. This is mandatory because a lender would be required to know all your past history so that it is easier for him/her to approve your loan.

Try looking out for multiple lenders

This requires a bit of research where you can create a list of potential lenders and discuss with them the possibilities of the loan you wish for. This will help you create more options if any one of them declines your application. Also, their feedback will help you prepare better for future business loan applications.

Look for SBA lenders

Before you take any step regarding a business loan application, you should definitely visit counselors who can assist you with any loan process. They shall also help you with various products available that you may not be aware of. Therefore, with a little assistance, you may be able to secure a loan and build your business further.

Strategic Bond Fund

strategic_bond_fundStrategic Bond Funds has become one of the most popular means of investment among investors who wish to diversify their portfolio. This bond fund is more popular during a period of crisis or difficult market conditions when investors seek to hand over the allocation of their bond to an expert.  But it difficult to select the right one is not that simple because every strategic bond fund varies in its approach to market maturity and the interest-rate risk.  Also, a strategic bond shall differ in terms of the rewards for a younger investor and the stable income seeking retiree. Therefore, you need to keep certain things in mind before investing in a Strategic Bond Fund.

Bond exposure

You need to check your own bond exposure before taking a chance at the bond fund because you do not want an overlap of allocation with your current/existing bond funds. This can result in risks rather than diversification of one’s profile. By means of comparison you can check how you can decrease the risk factor rather than an increase.

Know your goals

This is required in order to know what you can achieve by investing in a Strategic Bond Fund. If your goal is to achieve a high-yield exposure, then aggressively positioned Strategic Funds are apt for you. Also, you need to be comfortable with an unpredictability that can be equivalent to an equity fund and a gilt fund. This way, you shall ensure higher returns. If you are only looking out for a Strategic Fund to diversify your portfolio, then a Strategic Fund that provides exposure to government bonds is the perfect option.


You need to have a perfect understanding of your portfolio’s reward and risk profile. The following terms need to be kept in mind for a better strategy.

Credit Exposure: Earlier, one was required to hold a minimum of their assets in high-yield bonds but now things are a bit different. Funds nowadays are able to capitalise on opportunities and vary the credit quality.

Maturity: Strategic Bond Funds can make adjustments in the interest-rate exposure; therefore, it displays characteristics of flexibility.

Derivatives: Derivatives can increase the flexibility of the portfolio and also reduce transparency of the investment process.


This is necessary to determine how much you’d wish to invest in your portfolio. It will all depend on the type of fund you have selected. If you think of high yield due to an aggressively positioned fund, then you need to be at a fairly modest position. Also, you need to reduce this exposure once you reach the point of retirement. If your fund is not that aggressive or as you can call it, mild mannered, then it shall be able to adapt it to the ever-changing market conditions. This shall also be helpful once you retire.

So you need to be sure the kind of investment fund you seek, so that you maximize on your gains and minimize on those risks.

Certain Mandates for Availing a Home Loan

Buying a home is the biggest purchase that you will ever make in your life. To simplify the purchase, banks and NBFCs offer versatile home loans to eager house buyers. These borrowings carry certain restrictions and qualifying criteria.

home loansHome buyers are often confused while applying for a home loan. To simplify the process for them, we have presented a simple guide of essential documents and eligibility criteria.

Who is Eligible?

Several banks and NBFCs have versatile eligibility criteria. General eligibility criteria is as follows-

  • Any person, proprietor, partner, partnership entity or group, corporate entity and other associated parties are eligible to apply for house loan.
  • Builders and land developers are also eligible to apply.home-loan-eligibility-calculator

Once you are eligible, you can fill the application and then be ready to submit the required mandatory documents.

What are the documents required?

The list of documents to be submitted varies according to applicant’s profile. Such documents vary according to the income profile of the applicant.

List of documents for salaried individuals

  • 3 Months’ salary slips
  • Salary certificate
  • Form No-16
  • Copies of bank pass books, bank statement for last 6 months, and key account details.
  • Company profile

List of Documents for business owners

  • Last 3 years income tax return files
  • Last 3 years balance sheet, P&L account copies duly signed and verified by chartered accountant
  • Brief on business profile
  • Bank statement for past 1 year
  • Other business related statements required by loan sanctioning committee

What is the Eligibility Criteria?

After gathering the required documents, you will still require to meet the following eligibility criteria to get the loan sanctioned.

  • Valid KYC documents of applicants and co-applicants
  • Proof for continuity of income
  • Clean loan repayment and credit history
  • Technical and legal clearance for the property to be held as collateral
  • References and witnesses

After fulfilling the eligibility criteria, your loan application will become valid for processing.

3 In-depth Ways of Calculating Mutual Fund Performance

Mutual fund Calculation

Savings form an important part of everyone’s life and you may not be an exception to this belief. There are several saving schemes in the market, which allow you to invest and multiply your savings. But, in the end, only the ones linked with equity markets offer substantial returns.

Direct investment in equities can be risky, so you can prefer buying the mutual funds. These funds are linked with capital market instruments, and the funds gathered through them are managed by experts, who have in-depth knowledge of stock market movements. Still, you will always have a doubt whether your investments are growing or not.

To solve all your doubts to assess mutual fund performance, take a look at these 3 in-depth, number crunching methods that help in assessing the growth in a better way.

Mutual Fund Performance

1.   Absolute Returns

This method is also called as point-to-point method of evaluating the growth of mutual funds. It is commonly used to calculate returns and is one of the easiest methods of all. According to mutual fund definition, NAV is the net asset value of the scheme for a particular day. In this method, NAVs on two dates are used to assess returns.

The formula is: Absolute Returns = (NAVend – NAVstart / NAVstart) x 100

2.   Total Return

This method includes the dividends received over underlying stocks for a particular MF scheme. It is better than the Absolute Return method, and is calculated by summing up dividends for a particular period to the absolute change in NAV.

The Formula is: Total Return = (Dt / NAVstart) x 100 + Absolute Return

3.    CAGR (Compound Annual Growth Rate)

This method is very intensive and is applicable for holding periods of more than one year. It eradicates the fluctuations and inconsistencies experienced during short term holding periods and offer a solid picture to the investors.

These are the three number intensive techniques, which help in assessing mutual fund performance in a better way.