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10 Best Small Trading Business Ideas

Business Ideas

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June 8, 2019

Trading Business is one of the most profitable business options. If you are planning to start a trading business and looking for trading business ideas here is a list of 10 Best Small Investment Trading Business Ideas. These business ideas can be started with small or slightly moderate investment.

trading business ideas

Trading means buying and selling items or goods to earn higher profits. The goods can be standard goods or customized items. The companies dealing in the trading business are known as trading companies. Trading companies do not manufacture goods directly they buy them from multiple manufacturers or wholesalers and sell them to end customers or retailers. Trading companies either maintain their own stock in a shop or warehouse or order items based on customer orders. Follow the steps given below to start your own trading business.

Also Read – 20 Retail Business Ideas with Low Investment

How to Start Trading Business?

The first step toward starting a trading business is deciding your market segment. You can decide to do business in the domestic market, international market (export) or online market.
Once you decide market segment look for a trading business idea with a suitable product. Make sure to compare your product & price with similar products available in the market. You may find product information and price details online as well as offline.
The next step is making a list of probable suppliers and competitors. If possible, go for rate contract option. After this groundwork, you need to estimate capital requirements and place for storing inventory. Estimate the manpower required for your business and start recruiting.
Now you need to do paperwork with respect to GST Number and other local licenses required for starting a business such as a shop establishment license etc.

10 Small Investment Trading Business Ideas

#1 Garments Trading

The first trading business idea is garment trading. The garment is one of the basic requirements of a human being. Thus, it is a good idea to start a garment trading business. You can start this business at a lower scale or even from your home. You need to find out good wholesaler dealing in readymade garments. In order to establish yourself in this business, you need to work hard on marketing.

#2 IT Hardware Trading

IT Hardware such as desktops, laptops, servers, and computer peripherals are widely used everywhere. Any small or medium business including individuals makes use of IT devices. It is an evergreen business as the demand for IT devices will continue due to the new requirements as well as obsolescence. In this business, you need to invest money at the initial stage. You also need a small shop to start this business.

#3 FMCG Trading

FMCG Trading is another very good business opportunity. The FMCG market is growing exponentially and there is still a huge scope of market expansion. If you have knowledge and experience about FMCG products you can start this business. It is a good idea to select popular brands such as Hindustan Unilever, ITC, Patanjali etc.

#4 Customized Jewllery

The market of customized jewllery in India is growing significantly in recent times. Due to repaid urbanization and increase in buying power people can afford jewllery purchase. If you have enough capital, you can start a customized jewllery business. This business can be started even from home.

#5 Chemical & Pesticide Trading

Chemical and Pesticides market is very large and segmented. Before entering this business, you need to understand the basic dynamics and usage of chemical at various parts including suppliers. Make sure to work on the order basis. Do not invest or store chemical as inventory during the starting phase. This business requires a lot of documentation and license procedure at an initial stage.

#6 Spice or Masala Trading

The Indian spice such as cumin, black pepper, turmeric, chili is famous all over the world. This product has a very good market in India as well as abroad. In this business, you need to take a franchise of spice or masala company. You can work on a commission basis. You require a suitable place to start this business. You can start this business as a retail segment or in the export segment.

#7 Automobile Accessories Trading

The sell of car and vehicle is on the rise in the country. The main reason could be the buying power of people has increased. As the usage of the automobile has increased the requirement of automobile accessories is likely to remain high. In addition to accessories, there are many items such as tyres, tubes, gears, gear parts which shows an increase in demand. If you have knowledge of automobile sector you can start this business. You require moderate investment to start this business.

#8 Stock Market Trading

A stock market trading is evergreen business option. This business can be started individually at home. In this business, you need to buy and sell stock at a shorter duration to make profit. It is a risky business. Make sure to understand the basic of stock market trading before starting this business. Another option, in this case, would be starting stockbroking. If you are knowledgeable in the stock market you can start stockbroking.

#9 Grocery Trader

Grocery trading is another lucrative business option. As a grocery trader, you can start a small retail shop or start a wholesale business of grocery. The profit margin associated with this business is very low. However, if you involved in bulk trading you can earn a lot of profit.

#10 Hardware & Sanitary Trading

Hardware & Sanitary trading is next in the list. It is an evergreen business. Hardware and sanitaryware is good business where you can earn a lot of profit. Make sure to select a business location where a lot of real estate development is in progress. Investment required for this is moderate.

Top 5 Virtual Credit Cards Debit Cards in India

Credit Cards

Shitanshu Kapadia

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June 8, 2019

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Virtual Credit Cards are not real cards. It is an online version of a credit card. A virtual credit card is also known as prepaid credit card or Virtual debit card. These types of cards are specifically designed for online transactions. The entire details of the virtual credit card including card number, validity, expiry date, and CVV number remain online only. A Virtual Credit card is an add-on credit card issued on top of a primary credit card. The primary objective of a virtual credit card (VCC) is to protect against hacking attempts or fraud.

Virtual credit cards are the safest and best option for online purchases. It is very easy to generate these types of cards. You just need to log in to an app or online banking portal and generate a credit card for a required credit limit. It is safe to use this type of card as it can be used only once. The limit of this card is fixed hence the chance of fraud and losses can be prevented up to a great extent. It is highly recommended to use virtual credit cards while doing online shopping. If you are planning to use Virtual Credit cards for online purchases, here are the Top 5 Virtual Credit cards and debit cards in India.

virtual credit cards india

Also Read – What is Virtual Credit Card? How it works?

Top 5 Virtual Credit Cards Debit Cards in India

Virtual Cards Provided by Banks

HDFC NetSafe Virtual Credit Card

HDFC NetSafe is a best virtual credit card. It is a unique online solution from HDFC Bank. You can generate a unique virtual card using a physical visa or master credit/debit card. HDFC NetSafe is free for all HDFC bank visa and master debit and credit card holders.

Key Features of HDFC NetSafe Virtual Credit Card –

The lifetime of the card is 48 hours.
The limit of this card depends on your primary credit or debit card.
It is a single transaction card.
It is a free virtual credit card.

SBI Virtual Credit Card

SBI offers online virtual cards. This card can be created online using a net banking facility. Once you log in to the SBI net banking site, click on the e-card. Here you will find generate virtual card link from which you can generate a VCC card. The maximum limit of this card is Rs.50000.

Key Features of SBI Virtual Credit Card –

This card can be used for transactions made only in the country.
No separate registration is required. It can be generated by a net banking account.
There is no limit on number of virtual cards created by the customer per day.

Kotak NetCard

Kotak NetCard is a virtual card provided by Kotak Mahindra Bank. It is a one-time use virtual card that can be created from a bank account via net banking. Once you log in to net banking portal you need to click on the “netc@rd” tab. You need to select a bank account for drawing funds and click OK to generate a card.

The key features of this card are similar to another card, except this card does not support secondary verification and 3D secure code.

App Wallet-based Virtual Cards

Pockets Card by ICICI

Pockets Card by ICICI is among one of the best virtual credit cards. Anyone can sign up and use Pocket. It is not mandatory to become an ICICI customer by using a Pocket app. This app is freely available at Google Play. It is the first app in India that provides you with UPI, NFC, and Bharat QR Code payment options. You can even request for a physical prepaid card using this app.

Apart from Top 5 Virtual Credit Cards mentioned above few other famous virtual credit card options are Yes Pay Wallet by YES Bank, Zeta RBL Bank, Udio Wallet, Oxygen Wallet, PayZapp Visa Card by HDFC Bank, etc.

Advantages of using Virtual Credit Cards

It is one of the most secure payment options. This card can be used only once which means the chance of misuse is nearly nil.
The limit of usage is fixed and cloning of card information is not possible.
Like a normal credit card, you will need OTP via SMS for authentication.
You can make VCC of any amount as per your requirement.
It is a free card and the bank does not charge anything for this card.
You can cancel this card anytime with a click of a button.

Drawbacks of Virtual Credit Cards

This card cannot be used at a store or at a shopping mall.
VCC cannot be used to withdraw cash.
A primary card is mandatory in the majority of cases to avail of this card.

I have just shared various online Free VCC options and ways to create them.

How to Increase Home Loan Eligibility – Tips & Tricks

Home Loan

Shitanshu Kapadia

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June 4, 2019

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Home Loan Eligibility

Home Loan Eligibility plays an important role while availing a home loan. It helps you to make yourself aware of how much finance you can get from the bank. It also helps you to understand your standing compared to the lender. If your position is better you can negotiate terms and conditions as well as the interest rate for a home loan. There are multiple factors that affect your home loan eligibility. If you are planning to go for a home loan you should know about your Home Loan Eligibility and ways to improve your eligibility. In this post, I will share Top Bank Home Loan Eligibility Criteria. I will also help you in increasing your eligibility with tips and tricks.

What is Home Loan Eligibility?

Eligibility of Home Loan means how much home loan you can get from the bank? There are multiple factors that decide your eligibility. Some of them are your financial situation, monthly income, your profession, employer, your age, credit rating, location property etc.

The monthly income is one of the most important factors in deciding your eligibility for loan. If you are earning good, you might be able to get a higher loan amount. The maximum loan amount is in the range of 75% to 90% of the property value.

Top Bank Home Loan Eligibility Criteria

SBI Home Loan Criteria

Eligibility Criteria	Salaried	Self-employed
Age	18- 70 Years	21- 70 Years
Income	₹1,20,000 p.a.	₹2,00,000 p.a.
Loan Amount Offered	Customized	Customized
Tenure	30 Years	30 Years
Current Experience	2 Years	3 Years

HDFC Home Loan Criteria

Eligibility Criteria	Salaried		Self-employed
Age	21-60 Years		21-65 Years
Income	₹1,80,000 p.a.		₹1,80,000 p.a.
Work Experience	1 Years		5 Years
Loan Amount Offered	₹ 15 Lakh to ₹ 10 Cr
Tenure	30 Years	30 Years

ICICI Home Loan Criteria

Eligibility Criteria	Salaried		Self-employed
Age	21-60 Years		21-60 Years
Income	₹3,00,000 p.a.		₹3,00,000 p.a.
Work Experience	2 Years		5 Years
Loan Amount Offered	₹ 15 Lakh to ₹ 10 Cr
Tenure	30 Years	30 Years

How to Increase Home Loan Eligibility? – Tips & Tricks

Following factors will help you in enhancing your eligibility of home loan –

Good Repayment History
Good Credit Score 750 and above
Regular Income
No loans for credit card dues
Working Spouse as Co-applicant

Few tips and tricks to enhance your eligibility for home loan are given below.

Clear your existing loans – If you are already repaying your older loan it is recommended to clear your existing dues before applying for the loan. The lender assesses your eligibility for a loan based on your debt to income ratio. The debt to income ratio means the percentage of your total monthly income that goes in paying your monthly debts.

Improve your Credit Score – Credit score plays a crucial role in deciding your loan approval and loan amount. Every time you apply for the loan bank or financial organization checks for your credit score. If your credit history is good you are likely to get a higher loan amount. Good credit score also leads to low home loan interest rates offered. There are multiple ways to improve your credit score. You can boost your credit score via 7 different ways.

Go for Joint Loans – Another option to increase your eligibility for a home loan is to apply with a joint name. If working spouse or spouse with good credit score is added as a co-applicant EMI affordability increases. This leads to higher loan amount sanction or lowers interest rate loans.

Opt for Longer Tenure – One of the most common ways to increase your eligibility for home loan is opting for longer duration loan. As and when you increase your loan tenure it indicates that you have a longer time to repay the loan. Lender see this thing positively as it increases possibility of timely payment and reduction in the risk.

Additional Source of Income – You can show additional source of income and increase your eligibility for home loan. The additional income could be rental income, part-time business income, rent from equipment or other sources. You need to show valid proof such as bank statement or records for this. As it directly improves your financial health you are likely to get loan of higher amount.

Consider Step up Loans – Step up loans is better option for people with lower salary. In this loan you will pay lower EMI in the initial year. The EMI amount increases gradually and step up at the later stage. In the step up loans your eligibility of getting higher loan amount is more.

Over to you –

Buying a home is one of the important financial decision. So, don’t be in a hurry to apply for a home loan. Do your own research before applying for the home loan. Check for your CIBIL score, compare all available home loan options and check your eligibility before applying for a home loan. You can use tips and tricks given above to increase your loan eligibility.

Offshore Funds – Should you invest in Offshore Funds?

Mutual Funds

Shitanshu Kapadia

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June 1, 2019

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Offshore Funds for Investment

Offshore funds are types of mutual funds that invest in the international market. Offshore funds are popular as overseas funds or International Funds. These types of funds invest in the equity and debt markets of a specific country or region. These types of funds invest their money directly or via funds of fund. If you have surplus money and you are looking for diversification you can take a look at the Offshore Fund.

offshore funds

Offshore funds allow investors to select funds based on geographies such as USA, UK, Europe, Japan, Brazil etc. It also allows theme-specific investments such as agriculture, power, real estate, mining etc. Few funds restrict the investment to some geography, while others are global funds which invest money globally.

Indian Investor can invest in these types of funds. Investment should be done with rupee denomination. The method of investing in this fund is the same. You need to submit the application form along with a cheque. Alternatively, you can also make an investment online.

There are many reasons to invest in the offshore fund. Few compelling reasons are given below.

Investors who are looking for diversification of portfolio and ready to invest in the international market.
Investors who want to take advantage of the exchange rate difference.
The domestic market is not performing well and the global market is expected to perform well.

Also Read – Best Stocks for Long Term Investment in India 2019

Benefits of Investing in Offshore Funds

There are multiple benefits of investing in offshore fund. Few of them are mentioned below.

You can get exposure to invest in global market different geographies and different investment instruments.
You need not to bother about selection of stock because mutual fund manage your investment in the international market.
You can benefit of investing in global stocks such as Apple, Amazon, Google etc.
If global economy is performing well compared to domestic economy you can get higher returns.
You can get advantage of exchange rate benefit between the two economies. This means if you have invested in fund that is based at USA. You will get benefit if dollar appreciate and rupee becomes weak.

Risk for Investing in Offshore Funds

Currency Risk

International investment is prone to currency risk. Fluctuation in the currency conversation rate affects your investment. For example, If you have invested in US-centric fund and if the dollar becomes weaker your return will be affected negatively.

Country Specific Market Risk

These types of fund are prone to country specific market risk. Any change in the economic policy, tax laws and polices affects your investment. You need to be vigilant for the offshore economic conditions.

Should you invest in Offshore Funds?

You should go for offshore funds only if you have surplus money and you are looking for diversification.

Looking at the current economic condition and political stability the Indian market is in much better condition. It does not make sense to invest in other economies such as USA or Europe. India is a growing economy and developing country you should consider investing your money in India.

If you want to allocate a small portion of your money in offshore fund make sure to consider your financial goal, risk appetite and investment horizon before investing. In addition to that consider following things before investing in offshore fund.

Carry out research on economic and political conditions of the country where you are planning to invest your money.
Only allocate small portion of your money in these funds.
Don’t go for country specific fund. Always select a fund with exposure to global opportunities.
Make sure to consider currency risk while investing these type of funds.
Invest only in the fund of emerging market and developed market.
Make sure to check fund reputation, historical returns and financial background of fund house before investing.

Do you invest your money in Offshore Funds?

Do share your experience in the comment section given below.