5 reasons to buy a term plan today

In times of financial uncertainty, it is often the steps we take today that can have an impact on the future. Too often we fail to correctly estimate how much money will be needed for future financial goals. Inflation and rising expenses eat into our monthly income steadily.

At the same time, we often fail to factor in one grim fact – we are able to support our families only as long as we are present with them. If we are not, our loved ones may face severe financial difficulties. The best way to remedy this situation is by buying a term insurance plan.

Consider the following reasons to buy a term plan:

1. It is affordable. Term insurance policies are among the most affordable insurance products in India today. This is because the premium payable is quite low. Hence, it is an ideal insurance product for those who do not wish to invest in expensive life insurance policies, but who would like to have sufficient life coverage for their loved ones’ future.
   
   
2. High sum assured. Though the premium on the term plan is quite low, the corresponding sum assured is not. In fact, term plans have some of the highest sum assured amounts across life insurance products in India. This large sum of money can be useful to your loved ones in your absence – many of their personal milestones can be achieved using this money.
   
   
3. Flexibility. Reputed insurance companies in India are offering flexibility in term plans. Apart from simple pure life insurance policies, they are offering different pay-out options and the chance to change the plan matrices if necessary. This was not possible earlier, when only simple term insurance was offered with a lump sum payout.
   
   
4. Low possibility of claim rejection. As per a new mandate from the IRDA (Insurance Regulatory Development Authority), insurance providers cannot penalise the policy holder on grounds of non-disclosure of facts two years after the policy becomes active. However, you must take care to furnish all the correct and latest information about yourself at the time of taking the term plan. This mandate means that future claims made on your policy will likely not be rejected, if your information is correct.
   
   
5. Best way to pay for the future. You may have created savings and made investments for the future. However, in times of high living costs and mounting expenses, these may not last for more than a few months. Realistically, it may not be possible for you to create a savings or investment fund to the tune of crores of Rupees. However, your term plan money can be upwards of Rs 1 crore. Hence, term insurance will hold your family in better stead.

Follow These Steps to Start Your Own Enterprise

“Entrepreneurship is living a few years of your life like most people won’t so that you can spend the rest of your life like most people can’t.”

Being an entrepreneur might not be a walk in the park but it can be one of the most fulfilling experiences. If you have been toying with the idea of setting up your own venture, and you have zeroed in on the product/service you wish to offer, the only thing that could hold you back is the capital required to get going.

Unfortunately, the need for consistent cash flow will never go away. There are times when liquidity isn’t a problem but if you are thinking of growing your business, either by adding to your offerings or expanding to a new region, once again, the need for investment will arise. This is where an SME loan can help you. Here’s a look at some of the other things an entrepreneur should keep in mind.

5 Steps to Fulfilling Your Dreams

1.      Create a Business Plan: The idea here is to put down the core concept of your business. This means that you should be able to specify your offerings, your plan of action over the next couple of years, where and how revenue will be generation and what your marketing strategy will be.

2.      Fix the Budget: It is recommended to keep the initial costs as low as possible. However, if you do find yourself low on capital, check out the options for business loans in India. Set up the business with the aim of at least breaking even in the first year of operations.

3.      Proper Paperwork: A business in India needs to be registered with the appropriate regulatory body. So, decide on the business structure and ensure that all your paperwork is in order and compliant with the laws.

4.      Don’t Overspend: Whatever the business entity is, keep its funds separate you’re your personal accounts to avoid confusion. Set up an account for your business and transact only through that for all business needs.

5.      Register Your Online Presence: Being online is key to the success of any business in this tech savvy world. So, apart from setting up a website, also make sure you establish a presence on the popular social platform to gain visibility.

And if you find yourself running low on cash, either for your daily operations or for a specific business need, check out SME loans. These are specifically designed to meet the needs of small and medium sized businesses.

Is India Ready For Another Gujarat 2001?

On November 13, 2016, while most Indians were busy exchanging their old notes at the banks, in another part of the world, New Zealand was rocked by an earthquake of magnitude of about 7.5 on Richter scale. About 232 aftershocks of the event were recorded in the country by GeoNet, leaving thousands of people stranded near the epicenter.

It brought back haunting memories of what happened in Gujarat back in 2001 and once again raised the question: Are we ready for such disasters?

What Happened in Gujarat?

While the whole nation prepared to celebrate its 52^nd Republic Day, Gujarat was shaken awake to one of the worst disasters in the history of India. On the morning of January 26, 2001, an earthquake of magnitude of around 7.9 hit this western state at 8:46 am.

It was a result of the Indian plate pushing towards the Eurasian plate in the North. Although the quake lasted for only two minutes, it claimed over 18,000 lives and 167,000 people were left injured.

The Destruction Caused

• Out of the 25 districts of the state, 21 were completely destroyed.
• Kutch was the most affected area and reported around 17,000 deaths.
• 7,065 children and 9,110 women were reported dead.
• Around 348 orphans and 826 widows were registered. While some were protected with life or term insurance, many were left financially crippled.
• The collective economic loss was around Rs. 99 billion.
• Out of those who were injured, a vast majority was left handicapped.
• Around 8,000 villages were affected and more than 3,000 health facilities were destroyed.
• Over 12 million houses were damaged, leaving thousands of people homeless.
  

The Response

It took years for Gujarat to recover from the disaster. The Gujarat Model of Development was formed to help the health, educational and industrial sectors reach new heights. About 300 international and 150 local NGOs were involved in providing assistance. Financially too, millions of dollars were used to make things normal again. Immediate relief of Rs. 500 crores was announced by the NCCF.

What transpired in New Zealand has once again underlined the importance of better future planning. Today, Gujarat stands strong but policies like term insurance and life insurance are the need of the hour to protect the financial future of your family.

To get these services is easier than it was ever before. Many banks these days also provide instant loans that can be used in times of crisis as well.

Liquidity Crunch? The Solution Lies Here

When Prime Minister Modi gave a 40-minute speech on November 9, 2016, announcing the demonetization of Rs. 500 and Rs. 1000 banknotes, the 1.3 billion people of India were taken totally unawares!

There was panic and chaos among the people, since almost 80 percent of the monetary base was wiped out in one fell swoop. What could once guarantee the most upscale clothes and lavish meals, was merely a useless piece of paper now.

While the positive effects can take time to materialize, in the short term, most people are having to bear the brunt of this drastic move. This is especially true for small and medium sized businesses that function largely on liquid cash.

If your business is also suffering due to a liquidity crunch, it is time to consider solutions like bill discounting. Here is what you should know about this solution.

Why is Liquidity So Important?

Now let's talk about the importance of liquidity. Businesses thrive on capital. Without adequate financial support, they are unable to meet their everyday requirements for smooth functioning and revenue generation.

For instance, in order to ensure uninterrupted business functions, business owners need to pay their employees salaries on time, electricity and telephone bills need to be paid, loans need to be cleared, raw materials need to be procured, office stationery needs to be replenished, and so on. While bills and salaries can be transferred directly from the bank, paying vendors and suppliers might be an issue at the present moment.

So, what is the Solution?

Imagine this scenario – you have rendered services to one of your clients and received bills of exchange worth Rs.50, 00,000. But the payment is pending for nearly 3 months, and you require funds right now for your day to day business requirements. You know that it is useless chasing a client for bill payment at a time when they too are facing the same liquidity crunch as you. So what will be your immediate step to tackle this issue be?

One option is to apply for a loan. However, this means that you not only have to fulfill all the eligibility criteria, you also have to find a way to repay the loan amount along with the interest rate. Why burden your business with more liabilities? It is time to reduce liabilities with options like bill discounting.

This facility enables you to trade your receivable in exchange for cash. Also known as invoice discounting, the financial institution takes over your pending invoices, pays you what is due minus the fee, and thereafter the headache of getting money out of the client lies with the NBFC or bank.

The same holds true if you need to pay pending bills. In this case, you could apply for trade finance and tackle your liquidity crunch with ease. 

10 hatchbacks that you should look up if you like small cars

With pollution levels and fuel prices hitting unprecedented heights in India, it is little wonder that car drivers have been clamouring for low fuel guzzling engines without compromising on overall driving quality and performance. Since they asked, car manufacturers delivered: The following are the top 10 fuel efficient cars in India, in no particular order:

1. Maruti Ciaz SHVS diesel hybrid 28.09 kpl: This one’s a mild hybrid variant of the diesel Ciaz, and it is powered by gentler technology to improve on the car’s fuel efficiency. But this is not a little performer: it pushes speeds up to 26.2kpl.
   
   
2. Honda Jazz diesel 27.3kpl: It will remind you of the Celerio in terms of fuel efficiency, and though it powers to a high speed with its 1.5 litre diesel engine, it results in low fuel bills. Plus, it is roomy enough for you and your passengers and stylishly designed.
   
   
3. Tata Tiago diesel 27.28kpl: It is one of the most efficient cars in the country, as regards mileage, fuel and speed delivery. It also helps that this car has a large cabin and boot space, notwithstanding its high price.
   
   
4. Ford Figo Aspire diesel 25.83kpl: This compact sedan packs in quite a punch with its looks, output and most importantly, its fuel efficiency. The Figo range has added a boot to this car, so there’s more storage space as well.
   
   
5. Honda Amaze diesel 25.8kpl: Despite its recent facelift and minor innovations under the hood, this car is still not as good looking as others in its class. Still, it offers good interior design and fuel specs.
   
   
6. Maruti Baleno diesel 27.39kpl: This is one of Maruti’s new premium hatchbacks, offering great good looks, a comely attitude on the roads and excellent fuel efficiency. What’s not to like?
   
   
7. Honda City diesel 26kpl: India’s most popular sedan is still one of its low fuel guzzlers. With low fuel bills, you will love to take this car out for a spin often.
   
   
8. Maruti Swift Dzire diesel 26.59kpl: Car connoisseurs swear by this car’s fuel output, terming it the most fuel efficient car in its class. And this, despite its impressive size.
   
   
9. Ford Figo diesel 25.83kpl: The 1.5 litre diesel engine powers your drive to low fuel consumption and efficient pickup. Plus, it is one of the safest and most well designed hatchbacks in the country.
   
   
10. Maruti Celerio diesel 27.6kpl: Its small 800cc engine packs in quite a punch when you drive it, combined with its lighter kerb weight (about 900kg) makes this car an extremely low fuel guzzler.

Best Cashback Offers for the Best Products

Who doesn’t like freebies, right? This is exactly the sentiment that a lot of services are trying to capture with their various deals and discounts. And when it come people in India, the first thing that we check before buying any product is the type of discounts available on that particular product.

A thorough market study is done by the consumer before buying anything. They will check multiple brands online and offline to see which will be the most beneficial one, giving us our money's worth. The real reason why we love discounts or cashback offers or any type of benefit for that matter is the satisfaction it gives us that we are getting the maximum value out of the money we are spending. The better the scheme, the more the customer traffic.

DBS’ digibank, along with being your banking partner, also offers a lot of discounts and offers on anything that you can think of. Let's take a look at few of the benefits that digibank offers its customers.

Eatables

Who doesn't like a free soft drink or a free cupcake with their pizza? What more could you ask for if you are getting a share of the money back from the bills you have paid for the delicious food you are eating? Cashback offers from digibank offer up to 10% off on all the leading food joints, including Dominos, McDonalds, Pizza Hut and more. Apart from these, you also get discounts on ordering anything from Zomato, Food Panda, etc.

It's not just packed or processed food, you can also purchase fresh groceries from Big Basket, Grofers, and Reliance Fresh Direct to avail the same benefits.

Movies

After food, it is films that we Indians are most fond of. Digibank respects this love for the motion pictures and offers discounts while booking tickets online. You get up to 30% off on the ticket booking portal, BookMyShow, whenever you buy at least 2 tickets. Considering the fact that you get faster tickets and preferred seats online, on top of getting the best discount, it sounds like a pretty good deal.

Flight Tickets

Want to travel around the world? Why not do it at a lesser price? Traveling can be expensive, considering the cost of flight tickets, hotel charges, etc. But what if you get up to Rs 3,800 back?  This can all happen with the digibank app, which also allows you to make bookings instantly thanks to the mobile app.

There are a lot more offers and discounts to be explored. Why not explore it yourself and be among those who actually get the most out of their money! 

Leading Companies Providing Financial Services In India

Finance corporations in India are playing an important role in taking care of the financing needs of both businesses and individuals alike. These companies are giving a solid boost to our economy too. They deal with a variety of needs, including the best investment options, credit, savings and priority lending. Here is a list of companies providing the best financial services in India.

Top Financial Companies in India

1.      Housing Development Finance Corporation: This is one of the leading providers of home loans in India. Their services include loans taken for home improvement, construction, extension, rural finance, etc. They have a huge presence in India, apart from branches in Saudi Arabia, Kuwait, Singapore and Qatar. Their customer base includes both residents and non-residents of India.

·         Market capitalization: Rs 193,994.85 cr

·         Share value at BSE: Rs 1227.5

·         Share value at NSE: Rs 1228.25 (as of May 26, 2016)

·         Net Profit: Rs 5990.14 cr (as of March 2015)

2.      Bajaj Finserve: This company focuses on maintaining the most diverse investment portfolio. Bajaj Finserv aims to help its customers to smartly invest money to improve their lifestyle, meet everyday expenses and be financially secure. They offer curated loans and financing options for salaried professionals and self-employed people.

·         Market Capitalization: Rs 28,484.53 cr

·         Share value at BSE: Rs 1790.0

·         Share value at NSE: Rs 1792.15 (as of May 26, 2016)

·         Net Profit: Rs 125.93 cr (as of March 2015)

3.      LIC Housing Finance: The aim of this financial company is to provide long term finance to people for their housing needs. They have a good network in India and also cater to NRIs in the Gulf countries. Financial solutions include loans against securities, along with project and property loans.

·         Market Capitalization: Rs 23,114 cr

·         Share value at BSE: Rs 457.95

·         Share value at NSE: Rs 457.40 (as of May 26, 2016)

·         Net Profit: Rs 1386.19 cr

4.      Larsen and Turbo Finance Holding: This organisation offers financial solutions for the infrastructure, corporate and retail sectors. With a strong presence in a majority of the states in the country, their clients include multinational companies, SMEs and individuals.

·         Market Capitalization: Rs 12,934.20 cr

·         Share Value at BSE: Rs 73.75

·         Share Value at NSE: Rs 73.75 (as of May 26, 2016)

·         Net Profit: Rs 261.63 cr

5.      Aditya Birla Nuvo: This giant business conglomerate provides among the best financial services in India. The organisation is divided into various services, including finance, which comprises several categories like asset management, insurance, capital market, etc. They have a strong foothold in India and aim to provide the best investment options to customers.

·         Market Capitalization: Rs. 13,543.18 cr

·         Share value at BSE: Rs 1040

·         Share value at NSE: Rs 1035.90 (as of May 26, 2016)

·         Net Profit: Rs 527.69 cr (as of March 2015)