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Using Your Businesses Cash Flow For Loans

Businesses Cash Flow For Loans

Are you looking for a loan to keep your business ‘s cash flowing? Sometimes you need help to keep your business fluid and it may be that you need a cash flow loan. There are many quick collateral-free loans available to help you. There is no risk to your business assets with a cash flow loan and it can only make things better.


Are There Different Types of Loans?

Yes, there are four main options with a cash flow loan. Whether you need an invoice loan, a short-term loan, a cash advance loan, or a business line of credit it is vital that you investigate the options available to you. They all have a variety of terms and conditions and with careful consideration, you should pick the one most suited to your needs.

1. Business Lines of Credit

Quite simply one of the most flexible options around. The lender will allocate you a set amount which you can draw from when you need it. Once you repay the debt in full it refills and you can keep using the funds as you see fit. It has the feel of a credit card loan in that as long as you repay the minimum stated amount on the time you won’t incur any penalties.

These loans can be secured or unsecured in that they do not need collateral to obtain one. This is a good option if you need to boost your cash flow. If your financial records are up to date you may receive the cash the same day you apply.

2. Short-Term Loans

Similar to a traditional business loan but with a shorter-term repayment plan these also allow you to access funds immediately. You may have to start the repayments on a daily or weekly basis but a quick repayment can give the business owner peace of mind.

This might be the perfect solution during the busiest months of the year when a sudden injection of funds is required. If your business grows suddenly then this short term loan might just help with the flow.

3. Invoice Financing

This is the perfect solution if you are waiting for invoices to be paid. With an invoice finance loan, the credit company will check your creditworthiness and offer your terms based on the quality of your invoices. It would be a shame if you missed out on buying parts for a large order because you were waiting for someone to pay you.

You should receive around 85 % of the value of the company’s invoices which you can repay as your invoices are paid. The typical fee for this service is 2-3% plus a time related “factor fee”. This loan is collateral-free.


4. Merchant Cash Advance

This type of loan is a good option if your business receives money from credit cards. The merchant advance company will loan you money which you will repay as part of your daily credit card sales.

This daily repayment might mean that you have to change credit card providers if you do not work with a company on their list. This option is a little more costly than the others so a thorough investigation in all options is advisable. Ultimately you will make the best decision for your own business.



The Reasons Why Buying a Smartphone on EMI Is a Good Idea

Few Reasons For Buying a Smartphone on EMI

Smartphones have become a necessity for many people throughout the world. Today’s technically advanced smartphones are capable of doing much more than just receive and place phone calls. And its potential is not restricted to just connecting you on social media platforms; you can use the technology to store data, take pictures and do a lot more.

Are you finally considering upgrading your old mobile phone to a new technology-advanced smartphone, but don’t have the money to buy it? We get it.

Mobile on EMI Stock photo

Your meticulously planned monthly budget, your list potential expenditure, and some unexpected expenses may leave you not enough money to splurge on the latest smartphone. But, if you must own the phone, you can easily buy the smartphone on EMI.

The evolution of the lending sector has made it easier for people to fulfill their dreams without causing financial unrest. If possessing a high-end, feature-rich smartphone is your dream, then you can easily buy it on EMI. There are a lot of financial institutions and fintech lending platforms, such as MoneyTap that provide you with the option to purchase a mobile on EMI. Simply buy the phone on a loan and repay the loan in affordable EMIs spread over a certain loan tenure.

Why You Should Buy Your Next Smartphone on EMI?

1. It’s a shame not to pick up a great bargain
Retail and online stores lure buyers like you and me with amazing bargains and deals. It would be a waste not to use such massive discounts to buy the phone you want. Wouldn’t it? Don’t get discouraged by your low account balance, buy the smartphone on EMI.

2. You get closer to luxury
Since you won’t be paying from your own pocket, you can think of buying a premium segment smartphone on EMI.

3. It’s simply convenient and fast
Standing in line, gathering the documents, and applying for a loan with a traditional bank to buy a mobile phone may not be your thing. Buying a smartphone on EMI gives you the convenience of applying for a loan online with a loan approval done within a few minutes.

Why Buy a Smartphone on EMI Using a Personal Loan?

Because of the benefits it provides.
1. Hassle-free loan application process – You get to enjoy a fast, hassle-free, convenient loan application experience.

2. Get access to funds instantly to buy the smartphone you want – Unlike traditional loans, you can get instant approval and quick disbursal so that you can take advantage of bargain deals and buy the smartphone before the deal expires.

3. A better option than using Credit Cards – Using a credit card to buy a smartphone means taking on debt at a high-interest rate. You can get a personal loan at a much lower interest rate. That means you get to save money on interest.

4. Affordable EMIs –Depending on your financial capability, you can choose to either pay high EMIs over a shorter loan tenure or low EMIs spread across a longer duration.

5. Flexibility in its usage – You can use the personal loan amount on whatever you please. After paying for your phone, if you are still left with funds, you can use it to buy mobile accessories you’ve always wanted but couldn’t afford.

6. Flexible repayment tenure – Most personal loans have flexible loan repayment tenure ranging from 2 months to 5 years.

7. Pay interest only on the amount you use – A lending platform like MoneyTap offers its consumers a unique feature that is not available with traditional personal loans. The personal loan or mobile loan is offered to you in the form of a personal line of credit. You can withdraw as much as you want up to your approved credit limit. The best part is that you pay interest only on the amount you withdraw from your credit line and not on the entire credit limit that is approved.



Hot Stocks to Watch in 2019


Stocks to Watch in 2019

The stock market can be extremely complicated to keep track of, with huge shifts in sentiment and abrupt changes being the norm.

When political turmoil like Brexit, US-China tariffs, or US-Iran tensions come about, the situation only gets more unpredictable. In fact, if there are any stock facts that are 100% guaranteed to remain true, it’s that you never know what could happen next.

However, by keeping track of the industries that have a bright future ahead of them, we can more easily make sense of the stock market and what could happen next.

Let’s take a look at some recommendations for stocks and industries to keep an eye on in 2019:


What is the Stock Market Like in 2019?

Unfortunately, the end of 2018 brought with it the return of volatility after a decade-long bull run.

This, combined with the political uncertainty mentioned above has been making a lot of investors hesitant. If the current tensions and competing superpowers develop much further, financial markets will feel the sting.

Despite this, some new blossoming industries such as cryptocurrency and CBD related health products present some interesting possibilities and some evergreen mainstays like communication should certainly be watched too.

Cannabis Stocks in 2019

With cannabis being legalized across Canada and multiple US states, and CBD products being legalised across the UK and countless other countries, companies involved in the growth, research, production and marketing of cannabis-related products are going to have an explosive year.

Of course, with such a boom comes multiple competitors, many of which will fail, so this is still a risky business.

Our recommendations for the top pot-related stocks to watch in 2019 are Canopy Growth (NYSE: CGC), Aleafia Health (NASDAQOTH: ALEAF), and Charlotte’s Web Holdings (NASDAQOTH: CWBHF).

Canopy Growth has become one of the leading players in this emerging market. In fact, it’s the largest legal cannabis company in the world, and recently made $4 billion in financing via an equity sale. Bruce Linton, the CEO who spurred the company’s explosive growth, has recently stepped down in the hopes of finding a new, more investor-friendly CEO. If he succeeds in finding the right person, the following sell-off could be a perfect on-ramp.

Charlotte’s Web Holdings stock grew 117% last year and is up over 30% this year so far. With hemp production and retail locations both increasing dramatically this year, this company is in for an interesting time.

Aleafia Health is trying to become #1 of the pot world and is making a good try of it, with an already excellent stock turnover ratio. Several recent acquisitions, stakes in other major cannabis medical service providers, and several joint ventures with European Pharma companies make this one to watch in the near future.

Communications Stocks in 2019

Whereas cannabis stocks are important to watch in 2019 because of their huge growth and the fact it’s a completely new industry with a lot of interest, some industries are worth watching this year because, well, they never really stop growing.

The same can be said for tech as a whole, but communication has some potential winners this year:

Vodafone is a major UK network provider with a new CEO from late 2018 who is prioritizing a simplified business and aiming to prepare the company for the future more than ever. Vodafone has also recently purchased assets from Liberty, leading to good cash flow and some chunky dividends. If all goes well with the new CEO, Vodafone’s stocks could have a very bullish year.

BT is also a popular one to watch in 2019 as it’s a safe and stable company that was once a monopoly and is still by far the market leader. It might be a relatively boring investment, but safe and stable is exactly what most investors are looking for this year.

Insurance Stocks in 2019

Insurance is something that every single motorist requires, from private drivers to company fleets. This makes investing in insurance companies a great potential source of profit.

Prudential has seen a lot of growth across the Americas and Asia in the last 12 months and is fairly low risk.

Admiral is an example of a company that’s managed to keep a capital-light business plan without succumbing to undercapitalization. Admiral also pays out the majority of its profits as dividends, including special dividends beyond the regularly scheduled ones, making them a good potential buy-and-hold. The company’s profits grew by 45% in 2017 and a huge chunk of this went to investors. While this growth has now slowed down, Admiral remains a highly productive company with good growth and dividend potential.



How to Pursue CPA from the USA?


Becoming a CPA from the USA

Becoming a Certified Public Accountant (CPA) in the United States has become more challenging in recent years for several reasons: the type of content tested on the CPA Exam has changed to focus more on the type of real-life tasks CPAs perform; the scope of content on the exam has expanded, and the educational and experience requirements to become certified have increased. This article talks about various aspects of getting a CPA from the USA.


Nevertheless, the CPA credential remains a sought-after goal with proven long-term benefits associated with its achievement. Here is a summary of what you need to know if you want to become a CPA

Who oversees the CPA Exam?

The National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) jointly manage the Uniform Certified Public Accountant Examination (the “CPA Exam”).

NASBA is responsible for administering and scoring the CPA Exam within the 55 separate U.S. licensing jurisdictions—which include the 50 states, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, and the Commonwealth of Northern Mariana Islands (CNMI).

The AICPA oversees updates to the CPA Exam. The exam is administered at Prometric test centers. There are over 10,000 Prometric test sites in 160 countries.


Eligibility Criteria for the CPA Exam

Any candidate wishing to sit for the CPA Exam must meet certain educational requirements, though these do vary by jurisdiction so it’s best to verify with your state board.

Typically candidates must have completed either a bachelor’s degree or 120 college credit hours to be eligible. Most states require a minimum number of credit hours in specific business and accounting subjects.

In addition, nearly all states now require that candidates have 150 credit hours (this is sometimes referred to as the “150-Hour Rule”) to become certified, though most states still only require 120 hours to sit for the CPA Exam. Most states also require verified work experience to become licensed, but not to sit for the exam.


CPA Exam structure and scoring

The exam consists of four separate sections;

  1. Auditing and Attestation (AUD)
  2. Financial Accounting and Reporting (FAR)
  3. Regulation (REG)
  4. Business Environment and Concepts (BEC)

Altogether, the exam sections add up to 14 hours of testing. To pass, you must score at least 75 in each of the four sections within an 18-month period.

In recent years, the AICPA has restructured the exam in an attempt to test higher-level skills like evaluation and analysis rather than just testing your ability to memorize. In addition to multiple-choice questions (MCQs), the exam now includes Task-Based Simulations and Document Review Simulations, which are designed to replicate real workplace situations and require that you leverage your knowledge and experience to answer them.

Simulations make up 50% of your total score on the exam, so it’s critical for you to practice them as part of your exam prep.


CPA Exam “Testing Windows”

Candidates may take the CPA Exam during the first two months of each calendar quarter. These are often referred to as the four “testing windows”:

  1. January 1 – February 28 (or 29, if it is a leap year)
  2. April 1 – May 31
  3. July 1 – August 31
  4. October 1 – November 30


How to Apply for a CPA Exam section?

To start the testing process, you need to schedule your test at least 5 days before you wish to take a test, though NASBA recommends scheduling 45 days in advance to ensure your space (sometimes even farther out, depending on demand).

To register for the exam, contact your State Board of Accountancy. Once your application has been processed, you will receive a Notice to Schedule (NTS), at which point you may contact Prometric to schedule your exam session.

You may take any or all of the sections on your scheduled test day. However, if you do not pass a portion, you have to schedule to retake that exam in the next testing window.


How do I take the CPA Exam if I live outside the U.S?

If you’re a CPA candidate who wishes to take the CPA Exam in an international location, you must:

  • Select a participating jurisdiction (note that Alabama, California, CNMI, Delaware, Idaho, Kentucky, Mississippi, New Jersey, North Carolina, and the Virgin Islands do not currently participate in international CPA Exam administration)
  • Contact the Board of Accountancy in your chosen jurisdiction and ensure you meet its eligibility requirements (some, but not all, states require that candidates be U.S. citizens)
  • Submit a completed application and any required fees
  • To review the requirements to sit for the CPA Exam as an international candidate, click here.


How and when will I get my score?

The AICPA grades all exams and sends the results to the State Boards of Accountancy. Your State Board or jurisdiction will send you your results.

Typically, the AICPA will process test results and release the scores within 30 days of test date, though this can vary, especially soon after the CPA Exam has undergone changes.


How difficult is it to pass the CPA Exam?

Due to many of the factors covered in this article, such as the additional type of content and the ever-expanding scope that it covers as legislation change and grow, CPA Exam pass rates have declined in recent years.

National pass rates exceeded 50% for many years, but pass rates for individual sections now average between 45% and 50%, according to AICPA. Students often pass one or two sections but struggle to pass all four sections within the 18-month time frame.


How to increase my chances of passing the Exam?

Because it is so challenging to pass all four sections of the CPA Exam, most students seek the help of a prep course. The most popular CPA Review courses are now online and/or self-study based, versus classroom-based.

Most follow a traditional “linear” learning approach, where students are instructed to study every topic in the order in which the course presents it, from the first chapter to the last chapter. Becker is a well-known example of this kind of traditional, linear course.

More modern CPA Review courses, such as Surgent CPA Review, use adaptive learning technology to streamline the study process and personalize studies to each student’s specific weaknesses.

Rather than trying to study every lecture, textbook, and test bank question—which most candidates simply don’t have time to do—students using adaptive learning technology focus their study time on the specific topics they don’t know well, which typically saves many hours of study time.

In the end, as the low CPA Exam pass rate indicates, the road to becoming a CPA can be long and difficult. But studies have shown that CPAs make, on average, $1 million more over their career than non-CPA accounting professionals, so the effort can certainly pay off.

Be sure to research eligibility and experience requirements and be diligent in selecting a CPA Review course that you’re confident will help you pass all four sections the first time.

>Read How to become a Chartered Accountant in India


6 Reasons to do Accounting and Finance Courses from Udemy


Accounting and Finance Courses from Udemy

For those of you who are not aware of Udemy, as of today, it is one of the top online education portals and learning platforms in the world. In this article, we will explain why you should consider enrolling in accounting and finance courses from Udemy.

Udemy has plenty of online courses where you can learn almost anything from bread baking to accounting. In today’s fast-paced life, online courses are not just convenient, but they are not affordable to


1. Industry Leader in Online Education

Man studying onlineFounded in 2010, Udemy in2022 has over 200,000 courses and plenty of instructors offering both paid and free courses in form of video lectures combined with other media. It has some great teachers with heaps of students who have benefited from it.

Udemy has a variety of online courses that can help you learn almost anything. Accounting and finance courses from Udemy cover topics such as Financial Management, Taxes, Trading, Auditing, MS-Excel, and many other related areas.


2. Free and Paid Courses

Free vs PaidUdemy offers both free and paid courses. You may choose any of them as they both have their own benefits and drawbacks. A free course might be tempting. However, a paid course might end up providing you with more value for money.

It is highly suggested that you do your due diligence before enrolling in a course. Don’t forget to research the course, author, author’s background, reviews, etc.


3. Reviews and Ratings

Reviews are availableAll courses have real reviews and ratings provided by actual students who are enrolled in the course. This is also applicable to accounting and finance courses from Udemy and it is always advisable to look out how the course has been rated and reviewed.

The review system on Udemy is really helpful for new users and aspirants looking to enrol in the course. An ethical review system is a good indicator of the overall quality of the course.


4. Start Instantly & Learn On-the-Go

learn on the goAll Udemy programs are available for consumption immediately after the purchase. As a student, you can choose when and how to start learning as per your own comfort.

The Udemy platform is built on modern web infrastructure which enables the students to learn anytime, anywhere and on any screen size. This means all accounting and finance courses on Udemy are available and mobile, tablets and PCs.


5. Self-paced and No Eligibility Criteria

eligibilitySelf-paced instruction means that the content of the program is based on the learner’s response. In simple words, the content can be paced as per the student’s requirement so it can be paused, replayed, and restarted forever.

Largely there are no prerequisites that prevent you from enlisting in accounting and finance courses from Udemy; however, there are few courses on Udemy which expect you to have some prior knowledge in the concerned area.


5. Great Instructors at an Affordable Cost

Some expert instructors on Udemy have a vast array of experience and sophisticated education backgrounds. If you were to hire a CPA, CMA, etc., their professional services would cost at least 10-100 times as compared to their online courses.

Udemy has made it affordable for candidates to avail of high-quality online education by paying a fraction of the original market cost.


6. Certification and 30 Days Money Back Guarantee

Many courses provide a certificate of completion, which can be useful for freshers starting their careers, as this can go on your resume under the head “Trainings & Courses”. It is any day better.

In rare cases when you’re unhappy with the course material, you may request a refund from Udemy, which is usually a smooth process.



How to Pay Your Credit Card Bill From Another Bank?


Pay Your Credit Card Bill From Another Bank

Are you still old-fashioned when it comes to paying your credit card bills? Visiting the bank and waiting in queues? Well, you’re due for an upgrade and this article explains how you can pay your credit card bill from another bank using net banking.

It is advisable to use this payment option if there are at least a few working days left before the due date. In case of an immediate payment requirement, you may want to check with the receiving bank before making a payment.


Step 1 – Go to Credit Card Issuer’s Bill Desk

Almost every major bank has an online portal to make a credit card bill payment from another bank’s savings account. Seach online for receiving bank’s “bill desk”.

  • Google receiving bank’s “payment bill desk”.
  • Type > Receiving credit card’s bank name + Bill Desk
  • Most often this search query would bring the required bill desk on the top.
Search bill desk on google to pay your credit card bill with a different bank
Assuming that the Credit Card to be Paid is Issued by Standard Chartered Bank

Out of the search results, choose the relevant link & move to Step 2.

Here is the link we used in this example


Step 2 – Fill all Required Details

After choosing the appropriate search result you should be able to see a window as shown below. Fill all necessary information along with some personal details such as your mobile number and email id.

*These payments are usually safe and secured by a 128 or 256 bit SSL encryption.

Pay Your Credit Card Bill Online using a Different Bank Account


Step 3 – Your Credit Card is Almost Paid!

After step 2 you will be redirected to your bank’s net banking interface. It is all self-explanatory from there, just like you would make any other payment using your bank’s net banking gateway.

Fast forward, once the payment is made you will see a “Success” message along with a payment reference number. It is advisable to save this reference number till the payment confirmation is not received or the payment is reflected in your records.

Payment confirmation screen when credit card bill is paid from another bank

Note – Usually when you pay a credit card bill from another bank using net banking the payment is credited to your bank within 3 working days, therefore it is always advisable to pay in advance.


Billdesk of Top 5 Banks in India

State Bank of India BillDesk
HDFC Bank BillDesk
ICICI Bank BillDesk
Axis Bank BillDesk
Kotak Bank BillDesk



10 Tips to Follow for Freshers Before an Accounting Interview

Last updated on March 14th 2022

Tips to Follow for Freshers Before an Accounting Interview

Initial finance and accounting interviews can be hard-hitting and you don’t want to be caught off-guard. Here, we’ve compiled top 11 tips to follow for freshers before an accounting interview.

For obvious reasons we have not added the must-haves such as “hard work” & “dedication”. This list has been curated from real-life experiences and hopes to help you to achieve more out of your accounting interviews.


10. Revise your basics

Top grades in academics do not guarantee success in accounting and finance interviews. This is the main reason why we strongly suggest that you revise fundamentals of accounting and finance before your next encounter with an interviewer.

The idea is to avoid taking it for granted and never be complacent with yourself. You can subscribe and receive a free eBook with top 40 accounting interview questions asked by major companies around the world.

Revise Finance and Accounting Fundamentals


9. Know Your Job Profile – Don’t Be Trapped

This is one of the most important tips to follow for freshers before an accounting interview. A lot of freshers are prone to getting into the WRONG type of jobs because of not being able to handle the anxiety of starting a professional career.

A finance student getting into marketing, human resources, customer care, operations, and other unrelated work profiles is not the best way to kickstart a career.

It is highly advisable that you research your role & job profile. What are you expected to do 9 to 5? how are you going to spend a regular day at work? etc. Trust us, you don’t want to feel trapped and be sorry for your decision later on. It is also important because it allows you to anticipate questions and prepare precisely for the technical rounds.


8. Exhibit Stability

You may not have applied for the exact role you’ve always wanted, however, this isn’t something you need to convey to the interviewers. Talking about IJPs (Internal Job Postings), future plans, anything which shows that you’re not going to stay in this role for long is a strict NO!

Be careful about revealing your future plans, a lot of students get excited and start talking about fancy courses such as CPA, CA, CMA, ACCA, CFA, etc. that they are pursuing. Don’t get amazed to know that this is only a red flag in the eyes of the interviewer. There are however exceptions to this scenario where a specific course may be a plus for your role. Only reveal if you’re 100% sure about it.


7. Stay Motivated

You may have the best preparation and extraordinary educational background but on the day of the interview, you still need the unseen & intangible forces to work in your favour.

add motivation to the right attitude and the see the magic happen!

To reduce nervousness, stress, and anxiety related to an interview, we recommend that you try to watch motivational videos or do anything that makes you feel confident and positive.


6. MS-Excel

Most finance and accounting roles require you to work extensively with MS-Excel. Therefore, most of the accounting and finance interviews have at least one round related to Microsoft Excel.

Few functions we recommend every fresher should be comfortable with are Sort, Filter, Concatenate, Vlookup, Hlookup, Pivot (basics), Conditional Formatting, Text to Column, Charts, Sumif, Countif, Left, Right, Mid, Trim, etc.

The above is not an exhaustive list but covers most of the major functions. Also, consider learning some basic excel shortcuts.


5. Journal Entries

For accounting students, this is your holy grail. There is almost no way that an accounting interview can exist without journal entries. Not only are you expected to be good with accounting fundamentals but you are also required to display superior journal entry skills.

We have a list of journal entries here that can help you prepare. Along with basic entries, the operations manager love to ask accrual related entries don’t forget to prepare them.


4. Don’t Overtalk & Embrace Smartwork

Overtalking rarely helps, more often than not we end up saying things that we didn’t want to or we reveal more than required. Please avoid this.

Staying Quiet at the right time is an uncommon tact

Nothing beats a combination of Smart Work and Hard Work. For example, if you are anticipating a group discussion in your interview make sure you’ve researched the best practices, to-dos, etc. related to a GD. Don’t be shy to Google and learn something new.


3. Communication Skills

More than 70% of rejections happen in the preliminary rounds where the people from the human resource department churn out the applicants. The biggest reason for rejection in Non-English speaking countries still remains “Poor Communication Skills”.

Few resources for improvement we recommend are; watching movies, reading, youtube channels, online courses on UDEMY, online certifications at COURSERA, etc. This is one area that requires persistence and constant practice.


2. Research About the Company

Don’t forget to research about the company, mainly, its main line of business, history & top management. The best way to do this is through Wikipedia or the company’s own website.

Be ready with a crisp and natural answer to this question “Why do you want to join our organization?”


1. Rejection isn’t the end of World

Last in our list of tricks and tips to follow for freshers before an accounting interview is related to handling rejection. There is always a chance that your entire interview experience may have been really awesome and all your answers were perfect, but, you will still be rejected.

Accept that you can’t control everything and sometimes the reason for failure isn’t you at all. There are numerous behind the scene management-related decisions that can impact your success in an accounting interview. A few of them are – reduction in no. of positions, the job is filled up by an IJP, budget constraints, hiring manager’s personal choice, etc.

Jack Ma, Alibaba Group’s founder was REJECTED! by KFC. 



>Read Accounting Interview Questions for Freshers


Sukanya Samriddhi Yojana – Details and More..

Sukanya Samriddhi Yojana

SSY Account Girl ChildSukanya Samriddhi Yojana (SSY) is a scheme exclusively for girl children, started by the Prime Minister of India Mr. Narendra Modi on 22nd January 2015 in Panipat, Haryana. The scheme mainly assists parents of a girl child to create a reserve for their education & marriage-related expenses. 

SSY scheme proposes a deposit plan for a girl child which offers a high-interest rate on deposits. Till October 2015 under Sukanya Samriddhi Yojana there were more than 7 Million active accounts with a total fund of about US $420 Million. 


Benefits of Sukanya Samriddhi Yojana

  • SSY account matures after 21 years from its inception date & the amount is disbursed to the account holder. An exception to this can be availed if the girl child is above 18 years old and intends to marry.

Sukanya Samriddhi Account Maturity Amounts

  • From the year 2016-17, the rate of interest provided in this scheme is 8.6% (P.A) compounded annually. Click Here for latest Interest Rates of SSY.
  • Now 100% withdrawal is allowed from the scheme when the account holder has attained the age of 18 years.
  • Investment in Sukanya Samriddhi Yojana scheme is exempted from Income Tax under section 80(c). Principal, interest and outflow all three are exempted from tax.
  • An SSY account can be transferred to another bank/post office on request.


Eligibility & Other Criteria

  • The account can be opened by a guardian in the name of a girl child from her birth until she becomes 10 years old.
  • Only one account is allowed per girl child.
  • The maximum number of accounts allowed are 2 by a legal guardian for two different girl child, only exceptions provided are in case if the first or the second birth are twins or triplets.
  • A minimum of *Rs 250 needs to be deposited in the Sukanya Samriddhi Account in a financial year else it is discontinued and can only be revived with a penalty of Rs 50 per year with the minimum amount required for a deposit for that year.
  • Investment in an SSY account can be increased in multiples of thousands with a cap of Rs 1,50,000 in a financial year, a regular investment is to be made for 15 years (earlier it was 14 yrs).
  • Sukanya Samriddhi Yojna account can be opened for an adopted girl child as well.
  • Loan facility is not provided against this scheme.


How to Open an SSY Account & Documents Required

  • Sukanya Samriddhi Yojana account can be opened at any Indian Post office or at a branch of an authorized bank for e.g. SBI, ICICI Bank etc.
  • SSY Account Opening Form
  • Identity proof
  • Residence proof
  • Birth Certificate of the girl child


*Amount reduced from Rs 1000 to Rs 250.


Atal Pension Yojna – Details and More..

Atal Pension Yojna – Securing the Unorganized Sector

Atal Pension Yojna

On 9th of May 2015, Prime Minister Narendra Modi formally launched the Atal Pension Yojna (APY) which is a government supported pension program in India and is meant for workforce in the unorganized section. The scheme is managed by PFRDA (Pension Fund Regulatory and Development Authority) with the help of National Payment Scheme’s design.

Under this scheme, for every contribution made towards the pension fund, 50% of the total contribution or Rs 1000/- whichever amount is lower, will be co-funded for up to 5 years by the central government.

Government’s co-contribution is only available for those who are not covered by any statutory social security schemes and are not Income Tax payers. Pension starts once the person becomes 60 years old hence the requirement is for a person to pay for at least 20 years under the scheme.



  • APY is available to all citizens of India between 18 – 40 years of age
  • KYC compliant Bank account is a mandate


How to Enroll for Atal Pension Yojna

  • Walk-in to your nearest bank (All PSUs would offer this scheme)
  • You may either download the application form beforehand from a bank’s website or ask for one at the branch
  • Fill the form appropriately, ensure to mention a working mobile number & submit the form at the branch
  • Lastly you will be asked to submit a photocopy of your aadhar card along with form

All existing Swavalamban scheme subscribers, if eligible, may automatically be migrated to Atal Pension Yojna with an option to opt out.


Alternatively, you can download the form directly from govt. website by clicking Here


Payout and Contribution

Under Atal Pension Yojna (APY), there is a guaranteed minimum monthly pension for subscribers, it varies between Rs 1000 and Rs 5000 per month depending upon the contribution.

Below is a chart showing different contributions at different life stages, such as if you’re 25 years old and you wish to earn pension of Rs 5000 at the age of 60 your monthly contribution will Rs 376 per month.

atal pension yojna payout and contribution table

The contributions are debited automatically from the subscriber’s bank account. Under APY, the monthly pension is available to the subscriber, and after their death to the spouse. In case if the spouse also dies the pension corpus as accumulated at age 60 (of the subscriber) would be provided to the nominee.


Defaults and Discontinuation of Payments

Banks are authorized to collect a penalty amount for delayed payments, such amount will vary from Re 1 per month to Rs 10 per month depending on the contribution amount.

  • Re. 1 per month for contribution up to Rs. 100 per month
  • Re. 2 per month for contribution up to Rs. 101 – 500 per month
  • Re 5 per month for contribution between Rs 501 – 1000 per month
  • Rs 10 per month for contribution beyond Rs 1001 per month


If you discontinue to make payments this is what happens to your account:

 After 6 Months  Account is Frozen
 After 12 Months  Account is Deactivated
 After 24 Months  Account is Closed


All amendments & further details can be found on the official website for this scheme www.jansuraksha.gov.in



New Accounting Standards in India: A Step Up to Ind AS

Ind AS – New Accounting Rules for Companies

As per the new Accounting Standards in India (Ind AS), for companies having a net worth of Rs 500 crore or more it is mandatory to adopt the Indian Accounting Standards from April 1, 2016.

New Accounting Standards in India

In the 2009 G-20 summit, India had committed to take required steps to “restore the momentum of growth in the developing world” with the convergence of Indian Accounting Standards (Ind AS) with International Financial Reporting Standards (IFRS). After which the Ministry of Corporate Affairs devised a road map to implement the convergence of Indian Accounting Standards with International Financial Reporting Standards from April 2011.

It was meant for all Indian companies; however the insurance, banking and non-banking finance companies were exempted. The step taken was unsuccessful because of a few glitches like unresolved taxes but the FY 15 Budget had once again proposed to adopt the Ind AS. The Honorable Minister for Finance also clarified that the dates of implementation of the particular regulators for banks and insurance companies will be notified separately. A separate notification for standardized tax computation in accord with the budget will also happen on a set date.


The Implementation

The execution of new accounting standards in India will happen in two phases:

Phase I applicable from April 1, 2016 onwards

  • It is obligatory for all companies either listed or unlisted, having a net worth of more than Rs 500 crore to apply Ind AS.
  • It is also applicable for all the holding joint ventures, associates or subsidiaries of such companies.

Phase II applicable from April 1, 2017 onwards

  • Any company whose debt or equity securities has been listed or is going to be listed within India or outside — having a net worth of less than Rs 500 crore.
  • Unlisted companies whose net worth is more than Rs 250 Crore but less than Rs 500 crore.
  • Holding, subsidiaries, joint ventures or associates of such companies also need to apply Ind AS.

The net worth of a company has to be calculated in agreement to the company’s stand-alone financial statement as on March 31, 2014 or the audited financial statements which are first for accounting period after March 31,2014.


The Impact

There could be either positive or negative impact on the net income and net worth of the companies because of the areas like taxes, financial instruments and revenue recognition. Furthermore there could also be an impact on arrangements with lenders, vendors, customers, internal control systems and changes to IT system. More than 350 companies from BSE 500 are predicted to migrate from FY17. Besides delivering more disclosures application of Ind AS will also bring material changes to return ratios and operating metrics of companies.



What is RBI’s Unified Payment Interface?

Unified Payment Interface (UPI) – Instant and Cashless

Developed by National Payments Corporation of India (NPCI) the Reserve Bank of India launched Unified Payment Interface (UPI). Money transfers will not only be easy to send but more instantaneous and secured.

Unified payment interface is a common system across retail systems designed to enable all account holders to both send and receive cash with the help of smartphones using Aadhar, Mobile Number etc.

The Unified Payment Interface could change the money micro-payment process throughout the country. Sending money will become as easy as sending an SMS or making a phone call. As per a report, around 65 percent in value terms and 95 percent of consumer transactions in volume terms happen in cash. For an advanced economy, transaction in volume is higher than 40 to 50 percent and 10 to 20 percent higher in terms of value.

Reserve Bank of India along with the government has been working together on techniques to diminish cash in the economy. Since the mobile industry is thriving, the number of smartphones in the country is predicted to go up from 200 million to about 500 million. There is definitely going to be a boost in mobile money transfer.

Unlike online banking which takes some time to transfer cash, UPI completes a cash transaction instantly. Presently, only some banks offer the Immediate Payment Service (IMPS); the lone way available to customers using which they can send cash across banks instantly. IMPS transaction requires details like bank account number, IFSC code, and email id for proof of identity.

UPI has eliminated manifold identifications and will accept the mobile number or Aadhar card number to complete a transaction. Phase one will have 29 banks operating the platform. It will permit instant money transfers inter-operable across many banks.


Unified Payment Interface


Key Benefits of Unified Payment Interface

  • Every consumer with a bank account can avail the benefits of this service.
  • Consumers will not require details such as account number, IFSC code etc. to transfer money.
  • Application providers can gain from integrating multiple channels, innovative features & swift authentication services.
  • Unified payment interface will lighten the burden on banks and other payment portals which deal with a huge number of mobile transactions on daily basis.



Startup India Campaign


Start Up India Campaign

Startup India Initiative to Boost Entrepreneurship 

On the Independence Day, 2015 at Red Fort, Prime Minister Mr.Narendra Modi recited the slogan, “Startup India, Stand up India”. Startup India campaign aims at promoting bank financing for start-up companies to encourage entrepreneurship and eventually leading to more In-house jobs for people of India. On 16 January 2016, Vigyan Bhavan, New Delhi, this campaign kick started and plans were laid out officially to ease out the hurdles hindering the path of start-ups.


Start Up process simplified – A mobile app was rolled out by the government on April 1, particularly for start-ups. Setting up and registering for a start-up will be abridged by this app.

Launch of Atal innovation mission – The Mission has been declared to aid incubate start-ups. The funds will be utilized to grant seed funds and will also fuel the incubation facilities that are already running. It will also train the pre-incubation entrepreneurs.

Compliance regime based on self-certification – Initially the start-ups will self-certify their compliance with the labor and environment laws. There will be no inspection for the first three years.

Protection & rebate on patents – In order to protect the patents, government will set up a panel of legal facilitators who will help in filing the patents. For the first year all the patents filed will be given a rebate of 80 percent.

Funds to be invested – For the registration process to happen smoothly the government the startups have been granted a 90 day open window to close down their businesses if they do not work out. A Rs 10,000 crore with an infusion of Rs 2,500 crore every year has been planned for the growth and expansion of the start-ups.

Tax exemption – From the 1st April, 2016 all start-ups will be relieved of both capital gain and tax in profits for the first three years. The exemption will be only for the ones who have invested in the capital gains of government recognized funds.

New Research Parks & Incubators – The government has planned to set 13 startup centers and 18 technology business centers, besides there will be 31 innovation centers to be set up at national institutions, 7 research parks, 150 technology transfer offices, 50 bio-technology incubators and 20 bio-connect offices.

Promotion of New Ideas – In order to avail these facilities, your company turn over should not exceed Rs 25 Crore. The product of the start-up business should be new and of value to the customers. This will help in new innovations rather than copying an already existing product.

For students – A Grand Challenge Program will award Rs 10 lakhs to twenty innovations done by students, starting with 5 lakh schools to target 10 lakh children for innovation program.

Easy exit policy – Convenient bankruptcy rules to be put in place which will allow a company to exit within 90 days.


More details on Startup India Campaign can be found at their official website www.startupindia.gov.in



Frequently Asked Questions on Retirement


The Answers To Your Retirement Questions

As a pre-retiree in your 50s, you may be facing some challenging financial choices and some of them may be the most important ones you make in your lifetime. Here we’re diving into some of the most common situations you may be looking at and providing retirement planning solutions.

If you’re late to the game in terms of saving, you can still make a huge difference in your overall portfolio thanks to the catch-up provision. This IRS rule lets anyone who is 50 and above to contribute an extra $6K to their 401(k) plan, where everyone else is capped at $18K for 2015. This higher limit can really help you grow your money.



Many people are dipping into their retirement accounts; 1 in 5 are taking loans from their 401(k)s. If you leave your job before you finish paying it back, you have to finish within a certain period of time or you are forced to take a distribution that not only raises your taxable income but is taxed more as well.

3 out of 4 people are claiming Social Security at 62, but this leaves a lot of money on the table, especially as people are living longer. Every year you delay filing, your benefit grows by 6.5-8%, depending on your age. 

If you claim Social Security at 62 for a $750 monthly payout, over your lifetime your benefit will be worth $297K. Waiting until 70 and living to be 95, your benefit jumps up to $1,320 per month or $396,100 over the course of your lifetime. 

There are other misconceptions about Social Security too when it comes to eligibility.

For example, it can serve as a resource for people younger than 62. If a 51-year-old couple has a 14-year-old son still living with them and his father were to pass away suddenly, his mother would be entitled to SS. Unfortunately, many people fail to claim their benefits because they’re unaware they’re eligible.

Long-term care insurance is worth the price. The average cost is $2,500 per year, but most of us will need LTC late in life and the optimal time to buy is in good health between 50 and 64.

Perhaps the most challenging financial situation pre-retirees in their 50s face is underestimating how expensive retirement really is. Figuring out how much you need to save and how to invest those savings to build financial security for the rest of your life is vitally important, and those who sit down and do the math end up saving a third more than those that don’t plan ahead.


Planning for retirement is not an easy thing to do. There are a lot of unknown variables and a lot of decisions to be made. If you are interested in learning more about your options for retirement planning and you live in the Everett, WA area, then contact a local Everett retirement planner or local financial planner.`



What is SIDBI?

SIDBI – Small Industries Development Bank of India

Small Industries Development Bank of India (SIDBI) is a financial institution which is headquartered in Lucknow, India. It was established in 1990 on April the 2nd and is mainly responsible for promotion and development of micro, small and medium-scale enterprises (MSMEs). These small enterprises contribute about 45% to manufacturing output and about 40% to total exports, directly and indirectly. SIDBI started as a wholly owned subsidiary of Industrial Development Bank of India (IDBI) & is currently owned by 33 different institutions which are either controlled or owned by government of India. Its official website is www.sidbi.in

Since its inception SIDBI has grown from being just a refinancing agency which assisted banks and other local NBFCs indirectly to a lender which now provides loans and other forms of credit directly to MSMEs. It plays a vital role by helping these budding businesses to expand their operations.


SIDBI has created several different legal entities to actively perform associated activities:

  • CGTMSE – Credit Guarantee Fund Trust for Micro and Small Enterprises (www.cgtmse.in)
  • SIDBI Venture Capital Limited (www.sidbiventure.co.in)
  • SMERA – SME Rating Agency of India Ltd. (www.smera.in)
  • ISARC – India SME Asset Reconstruction Company Ltd. (www.isarc.in)
  • MUDRA – Micro Units Development & Refinance Agency Ltd. (www.mudra.org.in)




Products and Services of SIDBI

Few of the products and services that Small Industries Development Bank of India offers are:

  • Service Sector Assistance – The micro small and medium-scale enterprises which require Loan/Capital for growth can consider SIDBI, this includes service sector enterprises such as IT houses, health care, logistics, retail outlets, clinics etc. It also offers loan facilitation and syndication services to the service sector.
  • Supporting Clean Energy – It has different programs to extend credit to support waste management, cleaner production and similar firms who are helping the planet to reduce the carbon footprint. 
  • Receivable Finance Scheme – It is a scheme devised to mitigate the receivables issue that occurs from the suppliers who are supplying goods to MSMEs and it helps to improve liquidity.
  • Flexible assistance for Capital Expenditure -It provides assistance in scheduling the tenure of your repayment schedule if the investor is investing in fixed assets for example land or building.
  • Government Subsidy schemes – It assists in variety of schemes which are offered by the government to help MSMEs in adoption of modern technological processes & expansion of operations.


Top Benefits of SIDBI

  • Uniquely Designed Products to meet MSMEs needs.
  • Focused attention on Industrial and Service sector.
  • Attractive rates on financial products.
  • Focused managers to assist in entrepreneurial development.
  • Its wide presence across the country.
  • Provision of risk/growth capital.
  • Access to equity and venture financing.
  • Access to collateral free finance.
  • Focused attention on Industrial & Service Sector Funding.



What are Personal Loans?

Personal Loans

You need money for almost everything. To tackle emergencies, to fulfil wishes, to get a higher education, to buy any amenity for your home or to get the best treatment for a health condition, money is all you want. And in these situations, Personal Loan comes to our rescue.


Personal Loans



A personal loan is “money borrowed” from an institution or a person to fulfil the personal requirements of a person for instance, for education, vacation, medical requirements, vehicle repair, etc. They are smaller loans and are of two types:

  • Secured Personal Loan
  • Unsecured Personal Loan

A secured personal loan is protected by collateral or an asset, for instance, a car or a house. Whereas, the unsecured personal loan does not require any kind of protection by any asset or collateral.

If you hold a good credit record, you can apply for a personal loan at any official lender, bank or building agency. As the personal loan is a smaller loan, the amount is also small. It may range from $500 to $10,000, i.e., any small amount based on your requirement, but if you want to borrow a large sum of money, you would have to apply for a secured personal loan.


Personal Loan Application

The procedure of applying for a personal loan is very easy. You need to apply for a loan at a bank or a lending agency. Nowadays, you can also apply online for a personal loan. You first need to fill an application then you may choose to talk to a representative who will explain you in detail, the loan options available for you. You will also be required to provide some personal information to the bank and your financial history and its current status. You also need to provide the proof of employment, the amount you need to borrow and the reason behind application of personal loan. Another important thing that you need to tell the bank is whether you have a co-signer or not.

Once you manage to get the personal loan, you can pay it back by paying an equal amount every month. The rate of interest and the loan fee may differ with different banks and lending agencies.


  • It is the easiest type of loan available at your disposal.
  • You can directly apply for a loan in a bank without any need of an agent.
  • The processing time is very less.
  • This is the least troublesome loan. The paperwork is a minimum.


  • You cannot apply for a personal loan unless you have a bank account.
  • You must qualify the criteria set by the bank to get the loan.
  • Good credit history is a must.


Example of some personal loan providers in the world are:

  • Citibank
  • Santander
  • HDFC Bank
  • Money Lender Singapore – Passcredit.com



What are Moneylender Loans?

Moneylender Loans

Moneylender loans illustration

 Moneylenders provide small personal loans for a short time period at high rates of interest. In other words, risks and repayments are high. There are many different types of moneylenders. Some give a small number of loans that are to be repaid over a number of days. Some offer a heavy sum of money with a high-interest rate. Others may offer credits on furniture or electrical goods.

Moneylenders don’t count for your good or bad credit history. They even lend money to the gamblers who often get into a debt circle. However many countries are governed by the Money Lenders Acts of particular states.


Repayment and Interest Rates

Moneylenders will collect money from you in cash by reaching your doorstep and you will have to bear their collection charge. If you cannot pay the collection charge, you need to repay (principal+interest) at the moneylender’s office. The moneylender should carry his identity card so that he has permission to call you for repayment, any day between Monday to Saturday from 10 am to 9 pm. If you are comfortable, they can also call you from 8 am to 10 pm, but you must give it in writing beforehand. Also, they don’t have the permission to contact you on Sundays or any of the bank holidays or Contact your family members without your agreement.

Moneylenders are more expensive when compared to a bank or credit institution. The APR is a minimum of 23% and higher in other cases. The total credit cost tells the extra amount or the interest to be paid on the amount you borrowed. Moneylenders cannot charge extra interest, except for the collection charge. So make sure that if you miss paying the repayment, the total amount to be paid should not go up.


Consequences of Non-Payment

If you miss repaying the loan amount, contact your moneylender as soon as possible. If you fall short of payments, the moneylender cannot charge any kind of penalty and cannot give you another loan to pay the first loan. If the matter is still not resolved between you and the moneylender, you can contact the Money Advice and Budgeting Service (MABS). They give free and independent advice to people in debt. They will give you various suggestions such as drawing of budget, finding your entitlements, try to work out new loan arrangements with your moneylender. It will help to fulfil your commitments.


Some examples of moneylenders are,

  • creditwaves.com
  • hardmoneyusa.com



What are Foreigner Loans?

Foreigner Loans

A foreigner loan is a type of loan which can easily be accessed by someone who is not the citizen of the country from which he/she is acquiring the loan. Let us say if you need money to set up your business, buy some goods etc. however, you don’t have enough cash then there are some institutions which are specialized to give you financial help. You can avail that by applying for a foreigner loan to meet your needs. You just need to meet certain requirements to get your money.


Foreigner Loans


Foreigner Loans Vs Other Loans

The key difference between a foreign loan and another type of loan is the interest rate and the duration of repayment it offers. The banks and other credit institutions generally offer short-term loans. But foreign loans can attract higher interest rates, as the foreigners don’t have to go for collateral securities. So this means that foreigner loan is a high-risk loan. The duration of this loan is shorter when compared with standard loans. The less you borrow, the shorter the duration of repayment. Before going for this loan, a proper detailed study must be done taking various lending institutes into account.


Documents Needed to Obtain a Foreigner Loan

To obtain the loan from a moneylender, you are required to submit the following documents:

1. Work permit
2. Personal Information
3. Identification Documents
4. Payslips

*Specific requirements vary among different lenders.


Miscellaneous Points & Examples

Some moneylenders will try to exploit a high-interest rates from you if they know how badly you need a loan or if you don’t have sufficient knowledge. So explore and know more and more moneylenders and find out a suitable deal.

If you don’t want to obtain a loan from any of these sources, you can go for private lenders. All they need is your credit history and creditworthiness. They have less strict policies.

So before you apply for any loan, make sure that you take a glimpse of your income. Also make sure to study different sources of obtaining loans and keeping in mind your creditworthiness and future prospects, choose the most effective and efficient option.


An example of a foreigner loan provider is Power credit money lender Singapore.



What is a LLP in India?

Limited Liability Partnership – India

In India, a business organization can take many forms such as an LLP (Limited Liability Partnership), Private Limited Company, Public Company etc. On 7th January 2009 with the assent of the President the Limited Liability Partnership Act, 2008 came into effect. LLP has been a successful business vehicle since then as it combines the benefits of a partnership with that of a limited liability company, making it a lucrative option for start-ups. It keeps the personal wealth of partners safe and on the other hand, it helps leverage the benefits of a partnership.

In a Limited Liability Partnership, a partner is not bound by another partner’s acts; it can be due to negligence, misconduct etc. In other words, LLP can also be defined as a corporate entity that combines professional as well as entrepreneur behaviour to operate in an effective, efficient and flexible manner by providing the benefit of limited liability and larger financial resources.


LLP in India



Requirements and Benefits of an LLP

  • The formation of an LLP requires a minimum of 2 partners and at least one of them shall be an Indian resident. Each partner will only be liable to the extent of its capital in the business unless found to have acted with fraudulent intentions and deceiving purposes to cheat creditors.
  • It is a separate legal entity formed under the LLP Act 2008 therefore It shall now possess the power to sue and be sued. Also, both an individual and a body corporate may become a partner.
  • Duties, rights & shares of each partner are governed by an agreement among partners or between the LLP and partners subject to the act. Law gives the freedom to formulate the agreement per choice.
  • There is no minimum capital required to form an LLP, moreover, the creation of a limited liability partnership is inexpensive as compared to other forms of business.
  • When paralleled with regular partnership an LLP is a preferred choice of lenders hence making borrowing easier. Also, it has less stringent compliance and regulatory requirements making it easier for the business owners to focus on operations.


Disadvantages of an LLP in India

  • A Limited Liability Partnership is not allowed to go public this means that it can not be listed on the stock exchange and is not allowed to raise money from the general public.
  • Actions of any partner related to the LLP will have an impact on it and the entity will be legally held responsible for any liabilities thus created.
  • Winding up an LLP can be a tedious and expensive task.


You may Download/View a PDF of the complete LLP Act – 2008 here LLP_Act_2008_India

To get details on the steps to register an LLP go to the official MCA India Website.



What is REIT (Real Estate Investment Trust)?


REIT (Real Estate Investment Trust)

REIT stands for Real Estate Investment Trust, it can be seen as a mutual fund that instead of investing in stocks invests in real estate. It is an organisation that deals in securities which may be sold like shares on major exchanges. REIT invests in real estate either directly or through mortgages by making a combined pool of money from investors which can range from small retail type to large accredited ones.

REIT own income-producing real estate which are in form of offices, apartment buildings, warehouses, hospitals, hotels, shopping malls etc. It benefits investors in several ways such as helping them attain regular income streams, long-term capital appreciation, diversify their investment portfolio, invest in real estate with relatively small capital etc. REIT’s prove to be strong income vehicles because they pay out almost 90% of their taxable income to the shareholders in form of dividends and shareholders pay taxes on those dividend. As Real Estate Investment Trust receive special considerations regarding tax, so high yields and liquid methods are offered to investors.


REIT - Real Estate Investment Trust


Types of Real Estate Investment Trusts

1. Equity REIT – In this type, investment is made in owning properties or a part of it thus generating their core income either by property rents or  by selling their long-term properties. Equity REITs are tilted towards specializing in owning certain building types such as apartments, shopping malls, corporate offices, hotels etc. Few concentrate on owning & generating revenues from a single type of building while others diversify.

2. Mortgage REIT – In this type, revenue is generated from investing not directly in the property instead investing it in mortgage related to a real estate. Money is either lent directly to the owners of real estate in form of a mortgage or existing mortgage is acquired or a mortgage-backed security is purchased. This may be done for both residential & commercial properties. Prime source of money is earned in form of interest generated on mortgages.

3. Hybrid REIT – It is a combined outcome of equity REIT’s and mortgaged REIT’s. This investment is done carefully in both properties and mortgages thus getting benefits of both the dimensions.


REIT – Common Qualifications

Different countries have different internal criteria(s) to qualify a company as a Real Estate Investment Trust, below mentioned are few common points across various nations:

1. Invest about 75% of assets in the field of real estate.

2. About 75% of gross income should be generated from real property or interests from mortgages.

3. Pay approx 90% of its taxable income to shareholders as dividends every year.

4. Should be controlled and managed by Board of Directors or Trustees.

5. At least have 100 shareholders.


Benefits of a REIT

1. High Yields – For most people, main attraction of this scheme is the income earned which usually outperforms the broader market making this a lucrative option. 

2. Easy Tax Procedure – Tax issues with REIT’s are more straight forward when compared to other schemes or partnerships. A form 1099-DIV is sent to shareholders which contain the breakdown of dividends. Each year dividends are allocated from capital gains and ordinary incomes. So it becomes easy to invest here.

3. Liquid Asset – Since REITs can be listed as stocks on major exchanges hence they are easy to buy and sell. This makes them liquid & hassle free.

4. Diversification – Research has shown adding REIT’s to any investment increases returns and diminishes risk as they have very little correlation with the stock exchange(s).

5. Leverage – Usually a small investor with less to moderate initial capital can not buy real estate easily, they may never be able to get the benefits of investing in high potential commercial real estate such as shopping malls, office spaces etc. Such investors can leverage their investment and get the benefits they otherwise may never be able to get.



5 Reasons to Invest in Blue Chip Stocks


Reasons to Invest in Blue Chip Stocks

Blue Chip is a stock recognized for features such as stable earnings, high quality, less volatility and good returns. Thanks to Oliver Gingold of Dow Jones, In the early 1920s he termed such stocks as “blue chips” as he related them with the highest denomination in poker which was $25 back then for a blue coloured chip.

Such recognition helps a naive investor differentiate between “almost garbage” & a well-established firm. A regular investor with limited financial literacy can be awestruck by the number of options to invest while looking at all the listed stocks on an exchange. Let’s look at why blue-chip stocks are famous among investors.


1. Stable Earnings

If a business has stable earnings over a consistent period of time then it becomes reliable & earns the trust of investors which is considered a real good sign of a company which has its fundamentals right. If a stock has stable earnings it clearly means that the top management of the company is doing “something right” which has led them to stability. Stable earnings mean good returns for your portfolio & that remains the primary goal for all investments.


2. Dividend Payments

A solid trend which shows that the company pays dividends to its shareholders in a timely and consistent basis is a great morale booster for a stock owner simply because it acts as a cherry on the cake. It is income over and above your capital appreciation so, for example, a 20% dividend would mean an extra 20% income over and above your investment appreciation in a particular blue-chip company.


3. Strong Financials

Blue-chip companies have strong financials, for example, they are not hugely burdened by debt, their financial ratios are intact and are seen within prescribed limits, they have an efficient operating cycle etc. This leads to less volatility, minimal risk & very limited downside risk for the investor which ultimately helps them to mitigate risk keeping the entire investment profile in view.


4. Diversification

You might be someone who likes to take the risk; however, since blue-chip stocks are less risky they provide a great feature to help you reduce the entire risk profile so that even if you invest in more risky stocks which have a greater chance to fail blue chips can help you cover up some of your losses. These businesses usually have diversified business lines, demographics and multiple revenue channels which in turn help them reduce risk from operational failures.


5. Competitive Brand Advantage

Most of the blue-chip companies have a stronghold and their presence can be felt in daily lives of common people, for example, if you buy a can of sprite then you are adding up to the revenues of coca-cola if you buy ahead & shoulders shampoo you are adding up to the revenues of P&G. There are many such examples where it can be seen that blue chips get a competitive advantage due to their cost efficiency, franchise value, goodwill or distribution control.


Famous Blue Chip Companies 

These are the top 5 among various reasons to invest in blue-chip stocks.


What is Commercial Real Estate or CRE?


Commercial Real Estate

CRE (Commercial Real Estate) is also called Commercial property, investment property or income property. It is mainly related to all real estate which is used for business purposes to generate income. Examples of such real estate include shopping malls, restaurants, business offices, hotels etc.

Commercial real estate includes any type of property or vacant piece of land which fetches or has the potential to fetch income. From a business point of view, commercial real estate is any kind of commercial space that can be leased (or at times bought) for the use of operating a business. A commercial real estate (CRE) is usually leased and the owner collects a monthly or yearly payment in lieu of its usage by the tenants. 


CRE - Commercial Real Estate - Infographic


It can be categorized into a different type of property such as if it is a mall then the property falls under retail type, here is a quick look on the top categories:

  • Retail
  • Leisure
  • Offices
  • Industrial
  • Healthcare
  • *Residential

Few of the top known real estate landlords of the world are CBRE Group, Knight Frank, GE capital real estate, AMB Property, Prologis, Simon Property Group, Agile Property, General Growth Properties, ING Clarion, LaSalle Investment Management, RREEF, DLF, EMAAR etc.



What is FDI?

FDI (Foreign Direct Investment)

FDI stands for Foreign Direct Investment. When a company from a particular country invests in another company based in a different country in a way that it acquires some (generally 10% as per OECD) controlling stake is known as Foreign Direct Investment.

Like in the example info graphic shown below, Company A from India invests in Company B based in USA such an investment is termed as FDI (Foreign Direct Investment). The investment can happen in form of buying tangible assets, controlling stakes in ownership etc. FDI is not only a transfer of ownership as believed but it is also transfer of elements complementary to capital including technology, management and skills. FDI helps developing nations by filling in investment gaps which the domestic investors & the government can not fulfill on its own.


Infographic explaining FDI



FDI (Foreign Direct Investment) is different from FPI (Foreign Portfolio Investment) which means holding of shares and other financial assets by foreign investors without any controlling, management or ownership rights over the company, FPI is a indirect investment whereas FDI is direct.

There are 2 primary ways to invest in FDI:

  • Cross border M&A (Mergers & Acquisitions) which means buying controlling stake in a foreign company (Brownfield Investment)
  • Extending company’s operations to foreign and begin building new factories & offices from scratch (Greenfield investment)


Importance & Types of Foreign Direct Investment

1. Increased FDI implies rise in economic development because of increased capital and increased tax returns for the host country.

2. New projects are channelized to hike development by FDI investment in host countries.

3. Tough competition leads to highest efficiency and productivity levels in host country.

4. FDI results in specialization of skills and creation of new jobs.

5. FDI also generates employment opportunities created by different entities, for local countries.


Top reasons to invest in foreign companies are:

  1. Tap new markets
  2. Skilled labor
  3. Cut down costs
  4. Other strategic profit making decisions


Type 1 – Horizontal FDI

If a company lets say a e-commerce company expands its business in another country however still does the same thing both at home and abroad it is knows as Horizontal FDI. So in this case the e-commerce company enters a new geographical territory but the operations remain exactly the same.


Type 2 -Vertical FDI

When a company lets say an e-commerce company either moves upwards or downwards related to its operational cycle adding value to its business cycle it is called vertical FDI. A good example of this will be the same e-commerce company (who already has established business in a foreign country) acquiring a controlling stake in a logistics company.



5 Tax Benefits for Small Business Owners in USA

Tax Benefits for Small Business Owners

You can be an entrepreneur who is running a start-up, a home-based business or a small firm that is trying to make a mark. While playing the lead in this role of your life you are wholly responsible for your actions i.e. generating income, profits, paperwork, legal requirements, taxes etc. No matter what you do you can’t fully escape from paying taxes but you can definitely work towards reducing your tax bills. Don’t confuse Tax evasion with Tax avoidance, where the former is totally not suggestible the latter helps you to pay the least amount of tax legally. Just be very sure with your facts and ensure to never mess with the IRS.

Tax Benefits for Small Business Owners

Home Office Deduction

The cost of the workplace where you conduct your business either if you rent or acquire it, can be deducted as a home office expense. Your declarations are considered as final and considered true while filing taxes so it is always a good suggestion to be honest and always have supporting facts in case if you are examined. It is considered as a complex deduction, hence IRS gives 2 different ways to get this done, Standard Method and Simplified Method.

The tax deduction includes expenses such as interest on mortgage, insurance, utilities, repairs, depreciation and maintenance charges which are paid during the year. For example, if your workspace is 30% of your home, then 30% of your power bill for the year is tax-deductible. The standard method needs you to calculate your actual home office expenses whereas the simplified option lets you multiply an IRS-determined rate by your home office square footage.


Travel Expenses

An expense qualifies to be categorized under this head if it requires you to be away from the vicinity of your tax home, usually for longer than 1 workday & requires you to eat, rest and sleep to meet the demands of your work while travelling. Also, this type of travelling has to be business-related where you are expected to be involved in only business-related activities such as attempts to gather new customers, gain new skills, important conferences etc.

Travel expenses that can be covered are transportation, meals, telephone, baggage and shipping, cleaning, tips etc. You must keep complete and accurate records of your business dealings as it may be asked for proof. Tax expense which will be deducible includes the transportation cost to and from, tickets, lodging, meals. Full 100% travel expenses related to the business are deductible but in case of meals and entertainment deduction is limited up to 50% of the actual cost, if you keep the records. Or it can be calculated by 50% of the standard meal allowance. Whereas, on entertainment, the IRS has numerous restrictions. If your entertainment expenses qualify for the test, it is only 50% deductible. You must keep a record of all receipts relating to tour, entertainment and meals.

Click Here to see detailed deductions on Travel, Entertainment, Gift, and Car Expenses on IRS’s website.


IRS - Internal Revenue Services Logo
Click on the Image to See More Credits and Deductions on the official IRS Website


Telephone & Internet Charges

These charges refer to calls made & the internet used for business purposes. The common idea is to only declare deduction of the consumption that happens related to business operations, so for example if 40% was used for the business then only 40% of total charges should be claimed for deduction.

You may or may not have a separate line for your business, in the latter case when you receive your telephone bill each month you can highlight the business calls and file it accordingly. Many people carry a cell phone, especially for business calls. They can claim the full bill as tax-deductible. It is highly advisable to NOT to include your personal usage.


Insurance Premium

There is no business without the owner so your personal health insurance can be used as a deductible under tax laws. Whatever the amount, you can use all of it except that it cannot exceed more than the net profits of your business. You may deduct premiums that you paid to provide coverage for your spouse, dependents and your children who were below 27 at year-end, even if they are not your dependents. It can’t be claimed if you pay a different type of insurance premium, either single or jointly, such as the one offered by your spouse’s medical plan.

Two important points must be kept in mind:

1. Employment of your spouse must be real.

2. Any kind of failure in meeting these requirements may result in a court situation.


Car Mileage

When your car is used for business purposes, those expenses are tax-deductible. Make proper records of such trips and do not mix it with personal trips. The deduction can be taken out using two methods:

1. Standard Mileage
2. Actual Expense Method

  • Standard Mileage: This method is the easiest because it requires record keeping and minimal calculation. Write down the dates and the miles you drove your vehicle for business purposes. At the end multiply your annual miles by standard mileage rate which is 57.5 cent per mile. The answer will be your tax-deductible amount.
  • Actual Expense Method: For this, the percentage of business driving must be calculated for a full year along with operating charges such as gas, registration fees, repairs and insurance. Now let us say you spent $4000 as operating expenses and used your car for 10% business purposes, the result would be $400 as a deductible expense.

Don’t forget to keep track of your mileage. While you can’t deduct all of your mileage, you can deduct mileage that is work-related and outside of your normal commute, so you’ll want to keep track of that throughout the year says Troy Martin, a Utah CPA for Cook Martin Poulson, P.C.


Bonus – All in One Deduction

All contributions to Simplified Employee Pension – SEP -IRA, Savings Incentive Match Plan For Employees Of Small Employers – SIMPLE & Independent 401(K) are tax deductibles and help you reduce your taxable income. Why do we call them cherries on the cake is because they not only help you save tax but they also help you attain tax-deferred investment gains for later on. This year (2015) the contribution limit for Independent 401(k) has been increased to $53,000.


Small business owners’ tax deductions are quite complicated. But the above overview gives clear information about the aspects which will be helpful in a tax deduction. You may take the help of a professional in case if you don’t wish to get into all the related hassle. While we encourage you to avail all legal tax deductions for small business owners we would also like to remind you that illegal tax evasion can lead you to heavy penalties or jail time.


Click Here for IRS’s Employer’s Tax Guide


What is RBI?

What is RBI (Reserve Bank of India)?

RBI stands for Reserve Bank of India & it is headquartered in Mumbai, Maharashtra. It is the Central Bank of India, controlling monetary values. It came into being on 1st April 1935. On 1st January 1949 RBI was nationalized. The share capital was divided into 100 shares owned by private shareholders, however now shares are held by the government. RBI’s central office was in Kolkata, Now it is in Mumbai from year 1937. It manages loans and its terms and controls the liquidity of funds in market. Reserve Bank of India is a member bank of ACU and topmost member of Alliance for Financial Inclusion (AFI).

Official Website of RBI – www.rbi.org.in

Current Governor (2017) – Urjit Patel

Reserves (2017) – Over $400 Billion

RBI – Logo

RBI Logo



Dr. B. R Ambedkar wrote about RBI in his book- The Problem of Rupee- Its origin and its Solution, in presence of Hilton Young Commission. The Foreign Exchange Management Act came into being in June 2000. RBI enforced nationalized banks with capital markets, developed economic growth in spite of barriers in late 1990′s .



RBI - Reserve Bank of India - NEFT



Structure of RBI

Board of Directors (BOD)
It is the central committee of central bank. Board of Directors are appointed for a term of 4 years. It consists of 4 Deputy Governors, 4 Directors from Ministry of Finance and 10 other Directors.

Raghuram Rajan is the governor of RBI. The other 4 Deputy Governors include HR Khan, Dr Urjit Patel, R Gandhi and  S S Mundra.

Supporting Cast
RBI has four regional representatives; New Delhi in North, Chennai in South, Kolkata in East and Mumbai in West. Five members form the representation.

Branch and Office
It has 4 zonal offices and around 19 offices in following states and cities:
1. Ahmedabad
2. Chandigarh
3. Bhopal
4. Delhi
5. Mumbai
6. Nagpur
7. Jammu
8. Kolkata
9. Patna
10. Lucknow
11. Srinagar
12. Simla


Functions of RBI

1. Manager, Regulator and Controller of Financial Market:

RBI is the supervisor of financial system as it maintains public faith in this system, provides transparency in its activities and protects the interest of investors.

2. Exchange control manager:

RBI facilitates internal and external trade and equates the balance of payment account. It also helps in the growth of foreign exchange market in India.

3. Issues Currency:

Reserve Bank of India issues and exchanges currency, both notes and coins as per the circumstances. It sells and purchases securities to maintain the price stability and liquidity of assets.

4. Banker’s Bank:

It serves as a bank to commercial banks where they can deposit money to balance the monetary structure of economy. By providing advances to commercial banks, it acts as lender of last resort.


Rates and Ratios

As per January 15, 2015 , the rates are:

1. Bank Rate – 8.75%
2. Repo Rate – 7.50%
3. Reverse Repo Rate – 6.75%
4. Cash Reserve Ratio – 4%
5. Statutory Liquidity Ratio – 21.50%
6. Base Rate – 10.00% to 10.25%
7. Savings Deposit Rate – 4%
8. Term Deposit Rate – 8.00% to 9.00%



What is MNREGA?


On September 5th 2005 with assent of the president of India a new policy came into existence which worked towards providing livelihood security in rural areas of India. It started with the name “NREGA” which stood for National Rural Employment Guarantee Act and then an additional letter “M” was prefixed making it “MNREGA” Mahatma Gandhi National Rural Employment Guarantee Act. MNREGA is an employment scheme which provides social security by guaranteeing a minimum of 100 days paid work per year to all the families whose adult members opt for unskilled labor-intensive work.





After three years of observation, the government launched schemes like Jawahar Rozgaar Yojana, Food for Work Programme, Sampurna Grameen Rozgaar Yojna. These acts were predecessor to Mahatma Gandhi National Rural Employment Guarantee Act, which was a legal title. This act was firstly initiated in Maharashtra in 1970’s by Former Chief Minister of Maharashtra Vasant Rao Naik. NREGA act resulted in a boon for millions of farmer families. This act was accepted by Planning Commission and later on accepted nationwide. Such acts gave lessons to government regarding ‘Rural Manpower Programme’ ‘Crash Scheme for Rural Employment’ ‘Drought Prone Area Programme’ ‘Marginal Farmers and Agricultural Laborers Scheme’. Keeping the objectives of wage employment, production of valuable assets and food security still, the government focuses on implementing new schemes by seeking drawbacks of old ones. MNREGA is one of the outcomes of same.


Key Features

1. To provide job security to all adult members for at least 100 days in a financial year
2. To create permanent wealth such as roads, ponds, wells.
3. Employment is provided within a range of 5 kms from residence of applicants.
4. Minimum wages will be provided.
5. Applicants will be given unemployment allowances, if work is not provided within 15 days of application.



1. By 1st April 2008, this act covered all districts of India.
2. ‘Stellar Example of Rural Development’ is what World Bank termed this act, as per World Development Report 2014.
3. This act is executed by Gram Panchayats.
4. Labor-intensive tasks are preferred.
5. Women empowerment, environment protection, boosting social equality are the areas covered under NREGA act.
6. The act safeguards the effective and efficient management and implementation of its policies.
7. The act also ensures a genuine, transparent regulation of its activities.


MNREGA has been criticized for making agriculture less profitable as landless laborers are lazy and they don’t want to work on farms as they can get money without doing anything through minimum money guarantee at NREGA work sites.