The housing finance companies provide home loan to the customers. As you are aware that the cost of real estate is skyrocketing, and it is difficult to purchase a house without a home loan. If you are planning to purchase a house, you have options you can avail home loan from leading banks as well as housing finance companies. In this post, we will discuss advantages and disadvantages of taking a home loan from the housing finance companies. In the end, I will also share Top 5 Housing Finance Companies in India.
Should you opt Home loan from Bank or Housing Finance Companies?
At the time of availing a home loan, you have two different options. You can borrow money from the bank, or you can approach NBFC (non-banking housing finance company). The selection between NBFC and bank depends on key factors such as loan repayment period, processing fees, interest rate, etc.
Although home loan offered by bank and housing finance companies look similar in terms of features, but there are differences in fund sources and regulatory environment.
Advantage of taking Home Loan from Housing Finance Company
Easy Loan approval and relaxation on credit score
Housing finance companies provide loan easily. They are less stringent about credit score and their cost of funds. If you have the lower credit score you can still get a home loan from HFC but, at a higher interest rate. HFC generally use own credit scoring system instead of using a score from credit information agencies.
Higher Loan Amount
Bank does not finance registration charges and stamp duty under a home loan. Bank only allows loan on the property cost. However, the housing finance company includes stamp duty and registration cost while providing a home loan. It helps in increasing the home loan amount.
Faster Loan Processing
HFC offers quick home loan processing. Documentation is very simple in the case of HFC. HFC offers home loan with variable periods, processing fees and competitive interest rates. Overall HFC is more flexible compared to banks while approving a home loan.
Disadvantages of taking Home Loan from Housing Finance Company
Interest rate
The home loan offered by the housing finance company is costlier compared to a normal bank. The main reason is interest rate charges are higher for the bank compared to the interest rate offered by the bank.
Regulation
Housing finance companies are not regulated by RBI. Banks have the mandate to follow MCLR (Marginal cost of fund-based lending). This means banks pass on interest rate changes faster to the borrower. It is not the case in HFC. Housing finance companies follow benchmark prime lending. It is not transparent in nature and you may not get the advantage of best market rates.
Overdraft facility
Banks generally offer overdraft facility. This means if you want to borrow or withdraw additional money you can do that in case of a home loan by the bank. It is called an overdraft facility. However, housing finance companies do not offer any overdraft facility to the customer.
Key difference between Banks and HFCs
Top 5 Housing Finance Companies in India
HDFC
HDFC is leading and one of the most popular housing finance companies in India. HDFC offers home loans at attractive interest rates. They also provide legal and technical counselling while buying a property. Key features of HDFC home loan are given below.
Home loan up to 90% of the property cost.
Faster loan processing.
Internet services for loan repayment.
Excellent customer care services.
Home loan starting from 8.6% to 9.45%.
Larger branch network to avail services.
India Bulls Housing Finance
India Bulls Housing Finance is next in the list of best housing finance companies. It is regulated by National housing bank. The key features associated with India Bulls Housing Finance are given below.
Instant Approval of Home loan.
Approval for the higher loan amount up to 80% of property cost.
Zero pre-closure charges.
Attractive interest rates.
No Hidden charges.
Application to disbursal online.
Flexible repayment options.
LIC Housing Finance
LIC Housing Finance is one of the largest housing finance company backed by LIC. LIC housing finance offers deals for resident, non-resident as well as pensioners. The benefits offered by LIC housing finance are given below.
Zero Processing Fees.
Zero Pre-closure Charges.
Zero Prepayment charges.
Quick Loan Processing.
Multiple Loan schemes.
Competitive interest rates.
PCHFL
Piramal Capital & Housing Finance Limited (PCHFL) is one of the top housing finance companies in India. PCHFL provides home loan, loan against property and business loans. Key features associated with PCHFL are given below.
Loan amount up to 90% of the cost of property.
Home loan interest starting from 10.50%.
Loan term up to maximum 25 years.
Easy repayment options.
Digital Application
L&T Housing Finance
L&T Housing Finance is next in the list of top housing finance companies in India. In addition to home loan L&T Housing finance also offers loan for home improvement, house extension and loan against property. Key features of L&T housing finance home loan are given below.
Quick Loan Processing.
Home loan up to 90% of property value.
Instant Online Approval.
Zero Prepayment Charges.
High Loan Amounts of up to Rs. 10 crores.
Flexible repayment options.
Conclusion – Housing finance companies is one of the best ways to avail home loan. However, you should opt for HFC only in the case where you are not getting home loan from the bank. Whenever you opt for home loan make sure to compare all features, interest rates and applicable fees.
40 Best Service Business Ideas with low investment – Service with a smile. If you love to serve your customers, you can start your own service business. The service industry is growing at a faster rate and there are multiple business opportunities in the service sector.
It is easy to start a service business and Investment required for the service business is very low. The risk associated with a service business is NIL as you are not selling any tangible products. You are selling services. Looking at the benefits it is highly recommended to start a service business. Here is a list of 40 Best Service Business Ideas that can be started with low investments.
40 Best Service Business Ideas
#1 Accounting
Accounting or account keeping is one of the best service business ideas. In this business, you need to upkeep accounts and financial statements for small and medium-sized businesses. In addition to that, you need to prepare a balance sheet at the end of the financial year. You should have a deep understanding of accounting for starting this business. You can charge fixed money or an hour.
#2 Advertisement Agency
Opening an advertisement agency is one of the best service business ideas. You need to be creative in order to start an advertising agency. Your job is to help businesses in creating a new advertisement campaign. Initially, you need to work hard to establish your name. Once your advertising agency becomes popular you can earn a lot of money.
#3 Battery Recharge Services
Almost every vehicle two-wheeler and four-wheelers contain batteries. These batteries require charging or repair from time to time. Thus starting a battery recharging point is a very good business option. You may need to make a capital investment to start this business.
#4 Car Repair Services
Starting car repair services is next on the list. To start this business, you need to learn basic car repairs. Alternatively, you can employ a person aware of car repair. The investment required for this business is moderate.
#5 Car Wash Services
Car wash services in the metro area are gaining popularity. Many people prefer car washing services for the car. This makes car washing a popular business option. You require small space, manpower, and a car washing kit to start this business.
#6 Cartridge Refilling
Printer cartridge refilling is next in the list of service business ideas. The consumption of printers is increasing day by day. Every printer requires cartridges for printing thus starting cartridge refilling is a very good business option. You need to invest money to purchase machinery for cartridge refilling and ink making.
#7 Catering Services
Catering services is an evergreen service business idea. In this business, you need to provide food services for functions and events. You can either make food at the location or hire people to transport food. You require managerial skills as well as contacts to start this business.
#8 Cleaning Services
Home cleaning services or office cleaning services is next on the list. In this business, you need to offer cleaning services at regular intervals either daily or weekly. You require manpower to start this business.
#9 Courier Services
Courier services are becoming a popular option for sending documents and small items to various cities. You require a small space and manpower to start this business. It is advisable to take a franchise of famous courier companies to start this business.
# 10 Day Care Services for Elders
Elders and disabled people are always looking for help. Thus starting a day care service for the elderly is among very good service business ideas. Here you need to provide a caretaker at the elder’s place for a specific period. The charges could be on a monthly or daily basis.
#11 Electrician Services
An electrician is a skilled trade. If you are aware of this trade you can offer your services as an electrician at residential or commercial properties. The investment required for this business is NIL.
#12 Financial Planning
Financial planning services is next on the list. You can provide financial services from home or from the office. You need to clear an examination and become a certified financial planner or SEBI registered advisor before starting this service.
#13 Fitness Trainer
If you are a health and fitness enthusiast, you can think of starting a business as a fitness trainer. As a fitness trainer, you can provide personal coaching or you can open your own fitness center. It is advisable to do a fitness course before entering this field.
#14 Foreign Language Classes
Starting a foreign language class is next on the list of service business ideas. If you are an expert in a foreign language such as English, French, or Spanish you can start this business. You need to make a small investment in terms of creating basic infrastructure for this business.
#15 Garden Landscaping
Gardening and landscaping is another lucrative service business idea. In this business, you are responsible for landscaping and gardening. Many small and medium-sized companies, as well as homeowners, opt for gardening and commercial landscaping services.
#16 Home Appliance Repair Services
Home appliance repair service is next on the list. Here you need to keep competent manpower who can provide home repair services by visiting homes. You can accept requests via mobile or an online portal.
#17 Home Painting Services
If you are a professional home painter or you can hire a painter for home painting this business is for you. In this business, you need to help homeowners to transform the interior and exterior with good-quality paints.
#18 HVAC services
Demand for HVAC services increases in the summer season. If you are an HVAC specialist or if you have done a specialized course in HVAC you can start this business. You can provide services at home as well as office segment.
#19 Interior Designer
The task of an interior designer is to apply creativity and beautify a home. If you did a course of an interior designer or if you are an architect by profession you can start an interior designer business. It is a lucrative business option where you can earn a lot of money.
#20 IT services
IT is the buzzword today. Nothing works without IT services. If you are an expert in the IT field or if you have done an IT course you can start an IT services business. Here you are responsible for IT device installation or for IT hardware AMC. It is an evergreen business with a lucrative profit margin.
#21 Laundry Services
A laundry service or dry cleaning business is next on the list. You do not require any specific skill to start this business. It is a low-investment business where the associated profit margin is also low.
#22 Maid on Demand Services
Housekeepers and maids for cleaning a house are in great demand, especially in the city area. In this business, you need to provide a maid on demand. You can earn a very good commission in this business.
#23 Matrimonial Services
Matrimonial services mean providing matchmaking services for the bride and groom. It is a very good home-based business for women. Here you need to help prospective brides and grooms to meet face to face and decide the way ahead.
#24 Mobile Repairing Services
The usage of smartphones is increasing day by day. This gives birth to a new profession called mobile repairing services. Before starting mobile repairing you should go for a mobile repairing course.
#25 Music Classes
Starting a music class is next on the list of service business ideas. If you are a music expert and teach music including musical instruments you can start your own music class. The investment required for a music class is moderate.
#26 Packing and Moving Services
Packing and moving services help people to relocate their homes, offices, etc. This type of agency keeps competent manpower involved in the packing of items and moving. If this field attracts you, you can start this business.
#27 Pest Control Services
The pest control operator provides services of cleaning homes and offices from white ants, mice, and other pests. There are few restrictions on starting this business like location, permission, etc. Make sure to do research and study before starting a pest control business.
#28 Plumbing Services
The plumbing service is required at old as well as new buildings. If you have the proper training and equipment, start a plumbing business where you provide maintenance, repair, and installation services.
#29 Real Estate Agent
The task of a real estate agent is to help customers buy, sell, or rent a property. A real estate agent earns a commission for every transaction. If you have good contact and if you are outspoken you can start this business.
#30 Recruitment and Staffing
A recruitment and staffing agency is a firm that is instrumental in getting a job for the individual. In this business, you just need data on candidates looking for Jobs. You need to refer a candidate to the company and get a commission out of it.
If you are in the healthcare industry you can make use of hospital staffing software that streamlines recruitment and staffing processes, ensuring efficient management of healthcare personnel.
#31 Security Services
Every small or big company including homeowners opt for security services. Thus starting your own security agency is a very good business option. Here you need to provide security manpower to the customer.
#32 SEO Services
The demand for SEO services is increasing every day. If you are an expert in SEO or if you have done a course in SEO you can start your own online website providing SEO services. You need to work hard to establish your business.
#33 Spy Services
A spy is a detective who works on an assignment. Apart from that spies also work for many other assignments such as background verification checks, corporate shadowing, corporate investigations, etc. It is no investment business but risky in nature.
#34 Tailoring
Starting tailoring is the simplest yet very popular business option. In this business, you need to provide various tailoring services such as alteration, new cloth making, etc.
#35 Tax Planner
A tax planner is a person who helps an individual or company in order to do tax planning. They also help in the return preparation and filing. If you are an expert in GST and Income tax you can become a professional tax planner.
#36 Tiffin Services
If you are good at making food or if you have a chef who can prepare good food you can start tiffin services. This service can be started from home or from a separate location. Apart from daily tiffin orders, you can also plan to take a party or special occasion orders.
#37 Travel Agency
A travel agent helps in organizing travel including ticket booking, stay arrangement, sightseeing, travel insurance, and currency exchange. If you are good at making travel arrangements you can start a travel agency.
#38 Tuition Class
One of the evergreen service business ideas is tuition classes. You can start tuition classes at home or even from a small shop. You have to be very good at teaching various subjects to start this business. You can earn a lot of money from a tuition class.
#39 Videography
Professional videography and photography is a special field. If you are good at taking photographs or videos you can start a videography or photography business. A requirement of videographer is required at almost every event including weddings, parties, and popular events. You have to be very good at using a camera as well as photo and video editing.
#40 Wedding Planning
Wedding planning is the profession of assisting a client with the design, planning, and management of a wedding. The idea is to manage the event and make it memorable for the client. A wedding planner charges a lot of money for planning and management.
Conclusion
In conclusion, starting a service business with low investment offers aspiring entrepreneurs a pathway to financial independence and professional fulfillment. From consulting and digital marketing to tutoring and event planning, there’s a wide array of service business ideas to explore. By leveraging your skills, passion, and creativity, you can carve out a niche for yourself in the competitive landscape of service-based ventures. With determination, perseverance, and a willingness to learn, you can turn your entrepreneurial dreams into reality without breaking the bank.
FAQs
Do I need prior experience to start a service business with low investment?While prior experience can be beneficial, it’s not always necessary. Many successful entrepreneurs have started service businesses with little to no prior experience and have learned along the way.
How can I attract clients to my service business without a large marketing budget?Utilize social media, networking events, and word-of-mouth referrals to spread the word about your services. Offering promotions or discounts for first-time clients can also help attract new business.
What are some common challenges faced by service business owners?Common challenges include managing cash flow, dealing with competition, and balancing client expectations with available resources. However, with proper planning and perseverance, these challenges can be overcome.
Is it possible to scale a service business with a low initial investment?Yes, it is possible to scale a service business with low initial investment by focusing on efficiency, leveraging technology, and continuously improving service delivery processes.
How can I differentiate my service business from competitors in the market?Focus on providing exceptional customer service, delivering high-quality work, and finding a unique selling proposition that sets your business apart from competitors.
Contactless card means a card that allows payment without a PIN or swiping. You just need to wave the card in front of the POS machine to make payment using a contactless card. These types of cards can speed up the shopping experience as well as provide security against card cloning.
Before few days, I went to shopping in D-mart to buy some household items. At the payment time, I have handed over my ICICI Corel credit card. I was waiting for the counter boy to provide POS for entering a PIN. However, the counter boy has just tapped the card on the machine and payment was done. He provided an invoice for the good purchase. The payment was done here using contactless technology. I was wondering if payment can be made without entering the PIN if a card is lost it can be misused and payment can be done just by waving the card. I decided to check with the bank. Bank responded with an answer that it is contactless card and you can perform up to Rs.2000 transaction using the contactless method without entering a PIN. This is as per RBI guideline. If you want to perform transaction above Rs.2000 you need to enter the PIN after swiping the card. In this post, we will explore the contactless card along with advantage and disadvantages.
Contactless card means a card that allows you to make a payment just by waving a card nearby POS machine. This card can be identified by the wave symbol . If you find this symbol on your credit card or debit card it supports contactless payment. These cards are based on NFC (near field communication) and RFID (radio frequency identification).
Contactless cards are very useful for making faster payment at crowded places like a petrol pump, shopping malls, movie theatre and fast food parlor where the payment amount is less. This card is also useful for old age people where they are not required to remember the PIN for making payment. Contactless payment offers a similar level of security as chip and PIN payment.
These types of card are generally offered by VISA and MasterCard. VISA calls this technology as payWave and Mastercard calls it PayPass.
How contactless card works?
The use of a contactless card is very easy. This card contains a chip and an antenna when you place this card near proximity of POS, the antenna inside card get electrically activated and start communication with POS. Steps to use the contactless card while making payment are given below.
Look for the wave symbol (wifi logo) at the Point of Sell (POS) machine while making a payment at merchant’s place.
Enter your purchase amount into POS terminal or ask counter boy to do the same. The amount should be less than Rs.2000.
Tap the card near contactless reader or at the POS. It will work only if it is closer than 4 cm.
Once the transaction is complete you will see green light along with beep sound. Few machines also display text “Transaction Approved” on the POS machine
If the amount is greater than Rs.2000 you need to enter a PIN in order to complete the transaction.
Contactless Cards in India
The contactless card technology is not new in India. It was introduced four years back in India. However, most of the people are not using this method in India. This may be due to unavailability of NFC enabled POS at merchant end or lack of knowledge about this technology. Whatever be the case one thing is sure that as the government is pushing digital payments, the usage of these types of card will grow in the future. Most of the banks have started issuing or replacing debit card and credit card with contactless technology. Few popular contactless credit cards in India are –
ICICI Bank Coral Credit Card
SBI Simply Click
HDFC Regalia Credit Card
Standard Charted Platinum Card
FAQ on Contactless Cards
Contactless Cards are safe and secure?
As per experts, these types of card are as secure as chip-based cards. These types of cards carry multiple layers of security and it ensures that consumer is safe against the fraudulent transaction. The contactless payment terminal can process only one transaction at a time so, the chance of cross payment or duplicate payment is NIL.
What are the advantages of using contactless payment?
It is very easy and convenient to use contactless payment method. You just need to tap your card. It does not require entering PIN or signature. Thus payment processing is faster. The chance of misusing your card through cloning would be minimized using this technology.
What are drawbacks of using contactless card?
One of the biggest drawback of this card is if card is lost or stolen, someone will be able to use it for contactless purchase up to Rs.2000. If this card is placed near proximity of any authorized machine or POS without your information fraudulent transaction can take place.
Can I use contactless card for shopping if bill amount is more than Rs.2000?
Yes, you can make use of your contactless card for the shopping for the bill amount more than Rs.2000. You need to input your PIN in order to authorize the transaction.
10 Methods to Pay Credit Card Bill Online & Offline – A credit card has become an integral part of our life. We cannot imagine our life without a credit card. Credit cards are used widely for daily transactions such as paying utility bills, paying mobile bills, buying groceries, fuel payment, online shopping, etc. For every transaction bank offer credit card with multiple rewards and benefits. It is more likely that people use multiple credit cards to get rewards and other benefits.
It is very easy to remember and make payment for a single credit card as you need to remember a single due date. However, it becomes difficult to remember and make payment of multiple credit cards. Any default in clearing credit card dues will invite penalty and interest payment. The bad repayment history also affects your credit score. If you forgot to pay credit card dues for a few months, it will lead to an accumulation of debt.
If you are worried and looking for the solution to the above problem here are 10 different methods to pay your credit card bills. These methods are broadly classified in online and offline method. Few methods also come with a reminder system.
10 Methods to Pay Credit Card Bill Online & Offline
Online Methods to Pay Credit Card Bill
#1 Through Online Bill Payment Services
The first method to pay credit card bill online is via third-party online bill payment services. These types of bill payment services provide you single console for all bill payment. You will also get reminder emails and SMS for the payment dues. BillDesk, Bharat Bill Pay are examples of third party bill payment services. You can make most of the recurring bill payment including credit card payment using this service.
#2 Through Internet Banking
One of the simplest ways to pay your credit card bill is via online Internet banking. If you are holding credit card of the company where you have a saving bank account, you can make an online payment via Internet Banking. You need to register your credit card in your existing bank account. Even if you don’t have a saving bank account with a bank you can still make payment via any other internet banking account.
#3 NEFT/RTGS Fund Transfer
NEFT (National Electronic Fund Transfer) and RTGS (Real Time Gross Settlement System) is another very good option for making a credit card payment. In this method, you need to add your credit card company as a biller. You will require IFSC Code, bank name, branch address, etc. It usually takes 30 minutes to 24 hours to add biller for payment transfer. Please note that fund transfer using NEFT and RTGS is free.
#4 Mobile Wallets
It is very easy to make payment of credit card dues via mobile wallets. Mobile wallets such as Paytm, Mobikwik, Google Pay (Tez), Phonepe, BHIM/UPI offers the facility to make a credit card payment on the move. You need not to do registration for this payment. You just need to download the app and provide credit card information for making payment. Few mobile wallets also offer additional benefits for making payment using a mobile wallet.
#5 Visa or Master Card Money Transfer
Visa and Master card offer visa money transfer and Mastercard send facility. You can use this facility for any domestic fund transfer and credit card payment. You need to enter your credit card number in order to make payment. It usually takes day or two to process payment made using this method.
#6 Auto Debit Facility
One of the most recommended method to pay credit card bill is via Auto Debit Facility or standing instruction. Most of the credit card issuers allows auto debit facility. In this method, you need to setup auto debit using internet banking facility. You need to provide credit card number and bank account number from which payment to be made. You can also select between minimum amount and total amount payment. You can change auto debit instruction anytime.
Offline Methods to Pay Credit Card Bill
#7 By visiting Bank ATM
One of the simplest way to pay credit card bill is via visiting bank ATM centre. It is an offline method for bill payment. Most of the bank ATM provides bill payment facility for credit card dues. You need to visit nearest ATM centre of your credit card issuer. Insert your debit card into ATM kiosk and select Bill Pay option. Follow the instruction in order to make payment.
#8 Cheque Payment
Another method to pay credit card bill is via cheque. You need to draw a cheque in favour of the credit card account and drop it at any bank branch or ATM drop box. You need to write your credit card number, your name and phone number at the backside of cheque. It usually takes 4-7 working days to process the cheque and clear your dues. Make sure to write cheque in advance so that it will reflect on or before due date.
#9 Cash Payment at Bank
One of the rare method to make credit card payment is via cash. In this method, you need to physically visit bank. You need to fill up deposit slip mentioning credit card number and amount. You can make cash payment at the cash counter. This method will work if amount due is low. You need to pay additional service charge for using this method.
#10 By Calling Customer Care Facility
Some credit card companies allow you to pay your credit card bill by calling their customer care facility. In order to use this facility you need to have saving or current account with card issuer bank. In most of the case this facility is IVR based and work without human intervention. It is an instant method to pay your credit card dues. However, you need to think about the security of information shared at customer care.
Over to you –
Which method do you prefer for making credit card bill payment?
Do share your views and experience in the comment section given below.
