Money Saving Tips

Credit and Finance for MSMEs https://www.fundstiger.com/credit-and-finance-msmes/ Credit and Finance for MSMEs: Even as Indian MSMEs continue to struggle with access to low-cost credit, a majority 67 % of finance supply for small businesses in India comes from informal sources. Even as Indian MSMEs continue to struggle with access to low-cost credit, a majority 67 % of finance supply for small businesses in India comes from informal sources such as money lenders, friends and family etc. According to the data compiled by consulting company Dun & Bradstreet (D&B). Another 21 % comes through equity finance while 12 % is sourced from formal sources including non-banking and government institutes, small banks, public sector banks, private sector, and foreign banks, it said based on data from its own research, IFC, and World Bank. The total demand for finance by MSMEs stands at Rs 87.6 lakh crore out of which debt demand has been Rs 69.2 lakh crore and equity demand at Rs 18.4 ...

Personal Guarantor Insolvency https://www.fundstiger.com/personal-guarantor-insolvency/ The government on 12 November notified rules for the initiation of insolvency proceedings against personal guarantors to corporate debtors, to be applicable from December 1. Under these rules, if insolvency proceedings against a corporate debtor under the Insolvency and Bankruptcy Code are already in process, the same bench of the bankruptcy court would also deal with the proceedings against the personal guarantor. Experts said the introduction of these rules would likely bring about a faster resolution to insolvency cases of corporate debtors as well. The insolvency of personal guarantor to a corporate debtor being dealt with at the same bench which is hearing the insolvency of the corporate debtor will improve potential recovery for lenders and make the recovery process more holistic and easier procedurally. On November 15, the corporate affairs ministry said provisions related to personal...

Basic Rules of Buying a House https://www.fundstiger.com/rules-buying-house/ Among the most major decisions that are driven by a investor’s psychology rather than financial factors, perhaps the biggest is buying a house, the space we occupy seems to play a big role in our view of self. Developers too do their best to exploit this aspect of human psychology. In that sense, much has changed when it comes to selling and buying property, but caution is still key No matter how distressed developers are and no matter how reasonably priced apartments look in 2019 compared to 2008 or 2013, these three basic rules of buying a house are just as relevant as back then. 1. Identify Needs Buy  just  one house in which you will live. Do not think of buying any more for investment. The first house is a need. When you take into account the fact you can stop paying rent and get a tax break on EMIs, you will realize that it is a big financial advantage. 2. Be on Budget Don’t stretc...

All about SIP Calculators https://www.fundstiger.com/sip-calculators/ Systematic Investment Plan (SIP) To start investing in equity mutual funds, one is often asked to save through SIP. The systematic investment plan (SIP) can be monthly or quarterly or at any fixed interval and works better in the case of equity mutual funds (MFs). Investing using the SIP mode helps to keep the average cost of MF units low and also helps avoid the temptation to time the market. SIP suits long-term goals such as children’s education, marriage or for own retirement. But, before one starts a monthly SIP, the investor would want to know as to how much will be the final amount. SIP calculator can be of use and help the investor decide how much one should save to reach their goal of Rs 1 crore or a higher amount. How does SIP calculator works? SIP calculator is essentially a tool that helps to calculate the maturity value of a series of payments for a specific period at an assumed growth rate. The...

How to get out of a Debt Trap? https://www.fundstiger.com/get-out-of-debt-trap/ You land in a debt trap when your income falls short in paying for the EMIs and the interest keeps piling up on the outstanding amount. You end up taking fresh loans to clear off your existing loans and before you can realize, your debt situation spirals out of control. And once you are in, it only gets harder with time unless you rescue yourself out of it. Your credit score takes an ugly form, savings and goals go for a toss, and your debts continue to grow monstrous in size. If you find yourself in a situation like this, don’t lose your cool. Your first priority should be to get rid of high-cost loans credit card outstanding, personal loans, etc. Since it’s quite unlikely for an investment to generate returns that can match the cost of credit card outstanding around 40% it makes sense to pay off the dues by cashing out investments in mutual funds, gold, etc. Taking help from one’s family is another ...

What is a Home Equity Loan? https://www.fundstiger.com/home-equity-loan/ Home Equity Loan is the loan that is available to you against the equity on a property. A type of consumer debt, home equity loan is also known as an equity loan, a second mortgage or a home-equity installment loan. It can be availed for any purpose and is available against both residential and non-residential property. The loan amount is calculated on the basis of the current market value of the property. It is a loan secured by the equity in your home. It means that a bank could let you borrow up to 75% or 80% of the equity in your home (the difference between the home’s market value and the outstanding loan balance on your home). In order to avail a home equity loan, you need to make sure that you have an excellent credit history, reasonable loan-to-value and combined loan-to-value ratios. Types of Home Equity Loans There are two types of home equity loans. Fixed rate loans Home Equity Lines of C...

How to switch Home Loan to a cheaper rate? https://www.fundstiger.com/how-switch-home-loan/ Once your loan rate has been lowered, consider regular pre-payment. Pre-paying on your home loan during a low rate period is more impactful than pre-paying at higher rates. Pre-pay now to accelerate out of debt. If you have a home loan, you would be paying attention to the recent developments in the banking industry. The Reserve Bank of India has mandated banks to link interest rates on floating-rate loans to an external benchmark such as the repo rate. Banks, therefore, must step away from the MCLR regime where the benchmark was set by banks internally on the basis of cost of funds. The RBI took this decision because it wanted interest rate movements on retail loans to be more responsive to repo rate cuts which are being made by the central bank to stimulate growth. Now, several repo rate-linked loans have been launched, mostly by government banks. Repo-linked loans are expected to be m...