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Personal Loan Balance Transfer – How it works?

personal loan balance transfer

Personal Loan Balance Transfer – You can use a personal loan balance transfer to save money on interest rates. Suppose you have taken a personal loan from one bank and you are getting better loan deal from other bank or financial institution. In this case, you can make use of a Personal Loan Balance Transfer. This option helps you to reduce the EMI burden or overall cost of the loan.

Under Personal Loan Balance Transfer bank transfer the outstanding loan amount to another bank providing loan at a lower rate of interest. The process of transfer is very simple. Customer needs to fill up a form and submit documents. You have to be careful in evaluating bank for a balance transfer. Complete information about Personal Loan Balance Transfer is given below.

What is a Personal Loan Balance Transfer?

Personal Loan Balance Transfer is a process of transferring an existing loan balance from one bank to another bank or NBFC. It is also known as personal loan switching.

This process of balance transfer does not require any security or collateral to be provided by the borrower. A borrower needs to pay foreclosure charges to the existing bank and processing fees to the new bank. Sometimes the borrower is required to pay stamp duty on a loan agreement.

Also Read – 5 Best Banks for Personal Loan in India

Why you should opt for Personal Loan Balance Transfer?

Personal Loan Balance Transfer offers multiple benefits. Few of them are given below.

#1 Lower Interest Rates

The main benefit of transferring loan is a lower interest rate. Although you have done a lot of research before availing a loan, you may end up making mistake in opting for higher interest rate loans. You can correct this mistake by transferring the outstanding loan amount to another bank or NBFC offering loan at lower interest rates. You will be able to reduce your total outgo of the loan.

#2 Larger Tenure of Loan

Personal loans are offered generally with the tenure of 5 years. However, few banks may offer personal loan with longer tenure. If you have difficulty in paying higher EMI you can opt for longer duration loan to reduce your EMI amount. In this case, your EMI will be less but as your loan tenure is high you will end up paying a higher amount.

#3 Additional Loan Features

Another benefit you can get by transferring your personal loan is additional features offered by the new bank. The benefit could be relaxation in prepayment of the loan, EMI waiver, zero foreclosure charges, additional top-up loan, personal accidental coverage, etc.

#4 Top Up Loan

Suppose you are in need of an additional loan you can make use of balance transfer option to avail a top-up loan. Few banks offer a top-up loan facility. Make sure to compare all top-up options before opting for a balance transfer.

Under top-up loan option old balance transfer will be done to a new bank and additional loan will be credited to your account by the new bank. The interest rate and conditions vary from bank to bank.

 #5 Better Customer Support

If you are not satisfied with the customer support and services offered by the current loan provider, you can opt for a balance transfer to avail better customer support services.

How to do Personal Loan Balance Transfer?

Step by step process to follow in case of a personal loan balance transfer are given below.

#1 Find out best alternative option for the loan. Make a comparison table with features and cost-benefit analysis. Select the best option for loan transfer.

#2 Get NOC and foreclosure letter from current lender.

#3 Apply for a new loan at bank or NBFC and submit the required document along with the statement of the personal loan account.

#4 Get sanction letter from a new bank. On disbursal of loan deposit cheque or DD in your account and close existing personal loan.

#5 Don’t forget to take No due certificate from the bank.

Eligibility Conditions for Balance Transfer

As a borrower, you need to meet certain eligibility conditions for the balance transfer.

  • Bank will always check for your creditworthiness. Your credit score should be good in order to get approval for the loan.
  • Your EMI payment should be regular without delay or default.
  • You need to produce income records either salary certificate or profit and loss statement for getting loan approval.
  • Current loan outstanding should be greater than Rs.50000 to initiate loan transfer.
  • Your current lender should allow loan transfer.
  • If you are an existing customer of bank either credit card or loan it will help you to get faster loan approval.

Documents Required

You need to submit following documents to avail personal loan balance transfer.

For Salaried Individuals

  • Duly filled balance transfer form and passport sized photograph.
  • Aadhaaar Card
  • Valid ID Proof
  • Age Proof
  • PAN Card Copy
  • Address Proof
  • Bank Statement for the last 6 months
  • Salary Slip for the last 3 months
  • Statement of the current Personal Loan account

For Self-Employed Individuals

  • Duly filled Personal Loan transfer form with a passport sized photos
  • Aadhaar Card
  • Valid ID proof
  • Age Proof
  • Address Proof
  • GST Number
  • Balance Sheet for the last 3 years
  • Profit and Loss Statement for the business
  • Last 6 months bank statements of the individual as well as the business.
  • Statement of the existing Personal Loan account.

Conclusion 

In conclusion, it can be said that personal loan balance transfer will surely help the borrower to reduce total outgo by reduction in interest rates. However, you need to be cautious in selecting a new offer. You can make use of web aggregators for getting information about a loan offer.

Section 80EEA – Income Tax Deduction on Home Loan Interest

section 80eea

In budget 2019-20, new tax deduction benefits up to 1.5 Lakh is announced by the government. This new tax deduction benefit is applicable under new section 80EEA for the home loan interest rate payments. The main objective behind giving this relaxation is housing for all or affordable housing by 2022. The new tax deduction benefit will help a taxpayer in saving a lot of money at the longer run.

Key features, eligibility condition and benefit of this new income tax deduction are given below.

Section 80EEA – Income Tax Deduction on Home Loan Interest

Features of Section 80EEA deduction

  • Additional tax deduction up to 1.5 Lakh for interest paid on loans taken up to 31st March 2020.
  • This benefit is extended under new section 80EEA. It is an additional benefit on the top of 2 Lakh benefit extended by section 24.
  • The maximum tax deduction on interest amount paid for home loan will be 3.5 Lakhs. 2 Lakh under section 24 and 1.5 Lakh under section 80EEA.
  • The deduction will be available on loans taken up to 31st March 2020.
  • The benefit will be given only on the interest component of the home loan.
  • The tax deduction is applicable on entire home loan tenure.

Also Read – 10 Best Bank for Home Loan in India 2019

Eligibility conditions for claiming a deduction

  • This benefit will be extended only to the first time homeowners. You should not be owner of any other house at the time of sanction to avail this benefit.
  • The stamp duty value of a home should be 45 Lakhs or less.
  • The deduction under this scheme is available only to the individuals. HUF, company or any other kind of taxpayer cannot claim benefit under this section.
  • In order to claim this benefit the property should be self-occupied and affordable.
  • To claim this benefit, the individual must have taken the loan from the financial institution or bank. The loan sanction should be between 1st April,2019 to 31st March,2020.
  • This tax deduction can be claimed for by individual as well as joint home loan borrower. The joint home loan borrower can individually claim this benefit.
  • The above benefit is not applicable for the commercial properties.
  • You need to submit home loan interest certificate in order to claim this benefit.

Section 80EEA and Section 24

Section 24 of the income tax act allows homeowners to claim a deduction up to 2 Lakh on their home loan interest payment. The owner or his family should reside on this property to avail this benefit. The same treatment is applicable if the house is vacant. If it is let out you can claim entire home loan interest as a deduction.

Section 80EEA is a new section introduced for the first time home buyer. If you are able to meet eligibility conditions mentioned in the eligibility section above you can claim an additional 1.5 Lakh tax deduction benefit on home loan interest payment.

Maximum Tax Deduction benefit on Home Loan Interest = 2 Lakh (Section 24) + 1.5 Lakh (Section 80EEA)

Example

Rakesh works in pune in IT company. He lives in pune in a rented house. He purchased property in Surat. His father and family members live in a newly purchased house. He is buying a home for the first time, so he can take benefit of section 80EEA. The cost of a home is 45 Lakh and. He purchased this home by taking a home loan of 40 Lakh in May 2019.

The monthly EMI of this property is Rs.37000. The total of EMI for FY2019-20 will be 4.07 Lakh. This includes principal payment of 0.3 Lakh and 3.77 Lakh of interest component.

As it is self occupied house and fulfilling condition of section 80EEA, Rakesh can claim 3.5 Lakh as tax deduction while filing Income tax return. He will need a home loan interest certificate from bank to avail these benefits.

How to make money on Instagram? – Complete Guide

How to make money on Instagram? It is one of the most popular questions asked by many people. So, today let’s try to get an answer to this question.

Instagram is one of the most popular social networking platforms. Millions of people all over the world use Instagram for socializing and sharing photos. In addition to socializing, Instagram is used by many people to make money online. If you are planning to make money on Instagram here is a complete guide including the best strategies and ideas to monetize your Instagram account.

make money Instagram

Also Read – How to Make Money via YouTube? – Complete Guide

How to make money on Instagram?

Follow the steps given below to make money from Instagram.

Create Instagram Account

The first step towards making money via Instagram is creating your Instagram account. If you have already created your account, you can skip this step. Creating an account is not enough you need to set basic all rights for your account.

Please fill out the complete information including contact information and the topic on which you are likely to post content. Add relevant keywords and hashtags to your profile so that it will be easy to find your profile by your followers.

Grow your followers and become an influencer

The next step is to grow your followers and become an influencer. In order to grow your followers start posting regularly on your account. Make sure to post several unique images per day. Focus more on the quality of the post.

The images posted by you should be unique and high quality. If you can spend some money go for a high-quality DSLR camera. Include hashtags while posting images. It will help you to get your post viral.

Network with your followers by various methods. You can use commenting and liking images. Establish a friendly relationship with your followers. Your followers should become your friends.

Make at least 1000 followers. Once you are done with the above start making money on Instagram.

Make Money on Instagram

#1 Affiliate Marketing

Affiliate marketing means promoting products & services of other companies and getting a commission for every sale. Affiliate marketing is one of the most promising businesses online for making money. Thousands of bloggers are making money online using this method.

For affiliate marketing, first, you need to associate yourself with various companies or affiliate aggregators. You can register at ShareAsale or Ebates to become an affiliate.

Once you register you will able to see a product and applicable commission on the sale. Select the product as per your niche and post a unique photo along with affiliate URL. An affiliate URL is provided by the company for tracking a sale. If someone clicks on an affiliate URL and purchases the product or services you will get commission income.

#2 Promote your own products & services

As an influencer, you can use Instagram to sell your own products and services. A simple method is to post a photograph of your product and services along with a price tag.

To make it creative you can create an infographic along with the exclusive offer and post it on your timeline. Another good idea is to post the photographs and testimonials of your satisfied customers. It will help you a lot to make more money from Instagram.

#3 Sell photos and Videos

If you are a creative person and good at taking photographs or making a video you can use Insta to sell your creativity. It will be slightly difficult to sell photos and videos. You have to be creative and use high-quality camera.

It is a good idea to go through a basic course in photography. Later stage you can create your own website or blog to become a popular photographer.

#4 Create Sponsored Post

Creating a sponsored post is one of the very good ideas for making money using Instagram. Here you have to create an exclusive post for the brand as per their requirement. Your success here will depend on your creativity and hard work. You can make use of a website such as Influenz to receive various offers about a sponsored post.

#5 Sell your Instagram Account

If you have done enough with your account and if you want to move on you can sell your Instagram account for making one-time money. Websites such as viral accounts and Fame swap help you to sell your Insta Accounts.

Takeaway

Instagram is a very good tool for making money online, provided you show your creativity and spend enough time.

I hope I have given my best to explain Instagram marketing for making money online. If you still need more information about any of the methods given above feel free to contact me.

20 Small Agriculture Business Ideas

Agricultural business means producing and marketing agricultural commodities such as livestock and crops. It is the fastest-growing evergreen field. The business of agriculture can be started with low investment. It has a bright future. The government also encourages agriculture businesses by providing subsidies and tax benefits. If you are interested in agriculture and looking for small agriculture business ideas, this article will surely help you in deciding the right business option. Here are 20 Small Agriculture Business Ideas.

agriculture business ideas

For better understanding, I have divided these business ideas into three different categories.

  • Agribusiness related to productivity – Feeds, Fertilizer, Equipment
  • Agriculture commodities Business- Food, Fiber, Process commodities
  • Processing businesses – Food Processing, Packaging, Transportation

Also read – 20 Small Business Ideas for Students

20 Small Agriculture Business Ideas

Agribusiness related to productivity

  1. Agriculture Farm

The first agriculture business idea is starting an agriculture farm. An agricultural farm is a place where farming and cultivation take place. You will require appropriate agricultural land for starting this business. You can produce rice, wheat, sugar cane, vegetables, or any other food product on the farm. You require knowledge of seeds, farming, fertilizer, and agri equipment to start this business.

For agriculture farms, you can adopt modern technology like greenhouse control software. It facilitates farmers to monitor and regulate temperature, humidity, and lighting for optimal crop growth. This technology enhances productivity and ensures consistent, high-quality yields by automating environmental conditions within the greenhouse.

  1. Flower Farming

Flowers are used widely for decoration and worship. If you have big land you can think of starting a flower farming business. It is a highly lucrative business idea. In this business, you need to grow various flowers such as roses, sunflowers, jasmine, etc. You need to hire manpower for farming and cropping.

  1. Vertical Farming

Vertical Farming means growing vegetation on walls vertically. The concept of vertical farming is getting popularity in metro cities. In this business, you need to take a service contract for doing vertical farming. Most of the small and medium organizations opt for this concept. You require expert manpower to start vertical farming.

  1. Organic Farming

Organic Farming means producing vegetable and foods in an organic manner without fertilizer and pesticides. The demand for organic products is increasing day by day. Thus, starting organic farming is a very good business option. You require enough place and knowledge to start organic farming.

  1. Organic Fertilizer

Organic Fertilizer production is next on the list of agriculture business ideas. Organic fertilizer is made by decomposing vegetables, earthworms, and waste processing. The process of producing fertilizer is known as vermicompost. This type of fertilizer is very good for farming. The business of organic fertilizer can be started with low investment.

  1. Farming equipment’s

Farming equipment selling is next on the list. The equipment related to farming such as seed drill, cultivators, sprinkler systems, sprayers, and tractors usually remains in demand. You can sell farming equipment in rural places and earn money. Make sure to gather enough knowledge about farming equipment before starting this business.

  1. Poultry Farming

Poultry farming means the process of producing and raising birds such as chickens, duck, goose. The purpose of farming is meat production or egg. It is a capital-intensive and profitable business option. You require a suitable place with proper confinement for the growth of poultry. You also need to maintain temperature and ambiance for the proper growth of poultry.

  1. Fish Farming

Fish farming is the next agriculture business idea. In this business, you need to raise fish in a tank or enclosure as a fish pound. You can select the type of fish based on the market condition. You require a good source of water to start this business. Fish farming is a medium investment highly profitable commercial business in India.

  1. Pesticide Production

Pesticide production is another lucrative business option. For any farming activity, you will need pesticides to protect the crop. Pesticides are made of specialized chemicals. You can also produce pesticide organically. It is known as a biopesticide. It is recommended to go for a special course study before producing a pesticide.

  1. Agriculture equipment on rental

The big equipment used in agriculture such as tractors, harvesters, an excavators can be given on rent to generate income. Many farmers or newcomers in the farming business opt for agriculture equipment on rent. If you have capital and expertise you can start this business.

Agriculture commodities Business

  1. Agriculture Commodity Trading

Agriculture commodity trading is next in the list. It is a simple business where you will be acting as a wholesaler. You need to purchase food products, grains from the farmer and sell it to the grocer at a higher price. Looking at the first instance it seems to be an easy business. However, it requires a lot of expertise and understanding of the market and products.

  1. Fruit and Vegetable Export

Fruit and Vegetables produced in a farm can be exported to outside for earning money. You need to take IEC export code for starting this business. You must be careful in selecting a target country for export and rules applicable. Find out a good distributor and dealer before starting this business.

  1. Grocery Trading

Grocery trading is one of the very good business options. In this business, you will be acting as a retailer for selling household items such as rice, wheat, sugar, oil, etc. This business can be started with low investment.

  1. Tea Coffee Business

Tea and Coffee are widely used all over the world. You can think of starting a business of producing or selling tea and coffee under a separate brand name. It is a lucrative business.

  1. Rubber and Wool Business

Rubber and wool are used for making various clothes and related items. Rubber and wool always remain in demand. You can start a rubber and wool trading business. You need to tie up with rubber and wool producer for starting this business.

Processing Businesses

  1. Dairy Farming

Dairy farming means processing and selling milk and milk related products such as ghee, paneer etc. The demand for milk and related products will never end. Thus, starting dairy farming is a lucrative business option. This business can be started with low investment.

  1. Frozen chicken

Frozen chicken is next in the list of processing agriculture business ideas. In this business, chicken is frozen and sold with suitable packing. Many people prefer frozen chicken when it comes to eating non-veg. You need to do a moderate investment to start a frozen chicken business.

  1. Flour Mill

A flour mill means equipment or machinery for grinding grain in to the flour. A flour mill business can be started at a lower scale at a shop or at a larger scale for specific brands/products. It is an evergreen business option.

  1. Fruit Juice Processing

Fruit Juice processing is one of the best agriculture processing businesses. In this business, you need to process fruit via machinery to prepare juice. You need to add preservatives and prepare suitable packing. It is a medium investment business and demands skills.

  1. Spice Processing

Spice powder is essential for cooking. Good spice helps to bring good taste to the food. Commonly used spices are chili powder, cumin, turmeric powder, etc. Spice has a very good domestic market. You require a grinding machine as well as a mixer and packaging machine to start this business. It is a low-investment business with very good market potential.

Over to You –

I have tried to shortlist some of the best small agriculture business ideas for you.

You should select the idea based on your expertise and market demand. Make a proper business plan and list down the resources and capital required before starting the business. You should also gain knowledge of farming and products in which you will be dealing.

For any query related to farming business please write back to us.