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Pros And Cons Of Using A Credit Card To Fund Your Small Business

Small businesses need constant requirements of funds and a steady cash flow for their day-to-day business activities.

1 year agoRead More
Is The Pandemic Negatively Affecting Credit Scores?

Covid-19 has resulted in unprecedented economic hardships to millions of people around the world. Many of them have lost their jobs and are struggling to make their loan repayments or pay their credit card bills on time.

1 year agoRead More
Tips And Strategies To Build A Stellar Credit History

Whether you already have loans, or just a beginner looking for the best credit cards in the market, you are probably aware of the importance of your credit score by now.

1 year agoRead More
Digital Credit Cards: What Is It & How To Use Them?

It is the age of convenience in all aspects and what better example than online shopping to reflect increasing consumer convenience.

1 year agoRead More
Caught In An Endless Payday Loan Debt Cycle? Here’s How To Escape The Dreaded Loan Trap

Payday loans are both easy and deceptive. Without a doubt, you will procure immediate cash in the event of an emergency.

1 year agoRead More
How is the surrender value calculated for my life insurance policy?

Everyone knows that a life insurance policy is a must, but not many are sure which is the right plan to purchase.

1 year agoRead More
A Cash Emergency? Top 4 Secured Loan Options To Meet Immediate Financial Needs

Secured loans give borrowers the option to get funds without worrying about selling their assets or changing their key financial plans and goals.

1 year agoRead More
Best Credit Cards of May 2021: Top Offers & Rewards

For credit card users, it can sometimes be difficult to pick the right credit card since there are multiple options available in the market today.

1 year agoRead More
Are You Sure Your Loan Will Not Turn into A Debt Trap?

Millennials constantly endeavour to achieve financial freedom. While achieving this may not be easy, many people fall for shortcuts and ways to become entirely free of debt. Becoming debt-free may not always be a smart move.

1 year agoRead More
30 Things That Mess Up Your Credit Score

A credit score is an important parameter to get the best loans and credit cards. It is imperative that you take all necessary steps to maintain a healthy credit score

1 year agoRead More
5 Best Business Loans In India for Women Entrepreneurs

The data provided by the Ministry of Statistics and Programme Implementation compiled in the Sixth Economic Census, states that 14% of entrepreneurs in India are women entrepreneurs, which is equivalent to a whopping 8.05 million women entrepreneurs.

1 year agoRead More
What Are The Pros And Cons Of Payday Loans?

A payday loan is an ultra-short, flexible amount, high-interest loan that is offered based on your salary. They are also called ‘Instant Loans’ owing to their quick disbursal and completely online application process.

1 year agoRead More
Home Structure Insurance Vs. Home Content Insurance - Which is the Best

Our homes are our most precious asset. So, it makes sense to protect our home from any calamities. This is where home insurance comes into play. While home insurance is a broad term, there are several subcategories under it.

1 year agoRead More
Smart Ways For Home Loan Borrowers To Protect Themselves Against Interest Rate Hikes

A home loan is the only option for many of us to fund our dream home. Shopping for the best home loan in the market is a meticulous process. The current home loan market is very competitive and most banks offer similar interest rates.

1 year agoRead More
Smart Tips To Lower Your Car Loan EMI

Buying our dream car is an important milestone in everyone’s lives. A vast majority of us allocate a part of our monthly savings towards this goal. Car down payments do form a considerable part of the ‘Dream Car’ project and the higher the down payment, the better the car loan terms you can avail.

1 year agoRead More
How To Build Your Credit Score From Scratch?

If you want a credit card or loan, the lender wants your credit score; which is not possible to build if you don’t have credit. Then how does a starter build credit? How can he achieve the ideal score of 750 to get the best loans in the market?

1 year agoRead More
Complete Guide To Business Loan Repayments

Many entrepreneurs get jitters when we talk about loan repayment. They consider it to be highly complicated and need meticulous planning to repay the business loan. It is rather a matter of disciplined debt management and financial planning that are required to pay off your business loan without a hitch

1 year agoRead More
RBI's New Rule on Recurring Card Payments from April: Find All That You Need To Know

Many credit card users give standing instructions to their bank or credit card provider to make recurring payments to various service providers like Netflix, Electricity Board, or Mobile service provider, etc. This could be easily done up until March 31. From April 1 onwards, credit card users were required to make payment directly to a service provider.

1 year agoRead More
Is Credit Score The Only Determinant Of Creditworthiness?

Creditworthiness is how “worthy” one is of using credit. If a lender believes that the borrower will respect all debt obligations promptly, the borrower is considered being creditworthy. For a borrower to evaluate his/her creditworthiness, it could be challenging and may result in a conflict of interest with the lender.

1 year agoRead More
Beginner-Friendly Guide to White-label Payment Gateways

A right payment gateway partner can be the key to a company or brand’s success in today’s fast-paced and competitive market. Many businesses are often tempted by the idea of payments integration into their software or app

1 year agoRead More
Should You Invest in Gold or Fixed Deposits in 2021?

In India, gold is not only an investment form, it is considered a status symbol in some cultures and even believed to bring good fortune by many. This is why many Indians prefer investing in physical gold such as jewellery, coins or gIn India, gold is not only an investment form, it is considered a status symbol in some cultures and even believed to bring good fortune by many. This is why many Indians prefer investing in physical gold such as jewellery, coins or gold bars instead of choosing other modes of investments like futures and exchange-traded funds. Many families prefer to accumulate gold and pass it on to future generations as part of their legacy. Some of the other investment options that are preferred by Indian investors include real estate and fixed deposits since these are believed to yield better returns in the future. Real estate requires big investment whereas fixed deposits can be used for small investments. Here, we will explore the distinct characteristics and benefits of gold as well as FD investments. Investors can look through some of the comparative points before making a selection between the two. Why Should You Invest in Gold? In India, certain auspicious days of the year such as, Akshaya Tritiya, Dhanteras, Diwali, etc, see an influx of people who invest in gold. This is because of the belief that buying gold these days can prove beneficial. Apart from the cultural factor, gold is also considered a good diversification to an investment portfolio as it helps in reducing the overall risk. Many experts recommend about 10-15% of gold investment in a portfolio. This can be bought in the form of gold bonds, ETFs, or fund of funds (FoFs). The biggest advantage of gold investment is liquidity. Investors like to invest additional funds in these if they can enjoy the flexibility to withdraw whenever a cash need arises. Hence, liquidity is an important feature offered by gold investment. People can buy or sell physical gold at any establishment that deals in this precious metal. Many banks offer low-interest loans against physical gold as collateral. Why Invest in Fixed Deposits? A fixed deposit (FD) is a hassle-free investment tool offered at all banks. It guarantees a fixed interest, which is told during account opening. You can open it at any private or government bank or NBFC. When compared with regular savings accounts, FDs offer higher interests. Easy opening, safe and fixed returns make them a popular investment choice among Indians. If you’re just getting started with investing, then FDs are a great option. You can choose a tenure ranging from 10 days to 10 years. For years, regular Indian investors have relied on FDs to park their funds safely and to build the habit of saving for a rainy day. Gold vs FD: What are the Differences? Risk Exposure - Both gold and fixed deposits are considered as low-risk-free investment alternatives. While the price of gold tends to be volatile in the short term, it has generated positive returns in the long term. It acts as a hedge against inflation and also currency fluctuations. When it comes to FDs, these offer guaranteed returns as per the prevailing interest rate and are not influenced by external factors. However, the returns generated from an FD depend upon the tenure chosen. The longer the FD tenure, the more returns can be generated. Rate of Return - Gold investments can generate a substantial rate of return in the long term. This form of investment is worthwhile since it provides inflation-beating results as per historical data. Fixed deposits, on the other hand, offer fixed returns which are pre-decided by the bank at the time of opening of the account. FD returns are guaranteed, no matter the amount deposited. Senior citizens can enjoy higher interest rates (0.50% – 0.75%) in FDs as compared to general citizens. Liquidity - Gold investment is a preferred choice among investors who are looking for easy liquidity solutions. Gold investment can be made in various forms like digital gold, Gold ETFs, sovereign gold bonds, Gold mutual funds, etc. These investment forms come without the hassles of storage and making costs generally seen in gold jewellery. While gold investment is liquid, returns on gold largely depend on market factors. Thus, investors must be well-versed with market conditions before trading in gold. Fixed deposit plans can be liquid depending on the financial institution that these are opened with and its policies. While fixed deposits can be liquidated before the maturity date, many institutions charge a penalty on such withdrawals. In case an investor requires cash before the FD maturity, it is best to choose banks that offer a penalty-free liquidation of FD. Loan Against Investment – Many banks and financial institutions offer a loan of approximately 80% value against gold and FDs. Investors can avail of a loan against fixed deposits and gold from banks, NBFCs (Non-banking financial company) and other financial institutions. These are offered at very competitive interest rates and are usually lower than the rates of unsecured loans such as personal loans. Since 2020 saw a surge in the value of gold, RBI announced an increase in the LTV or loan to value ratio to 90%. Thus, a gold deposit of Rs. 1 lakh that would have fetched a loan of Rs 60,000-75,000, can now attract a loan of Rs. 90,000. This can greatly benefit investors. Income Generation - Gold investments are ideally not meant to generate income. Gold can be looked at as an asset and can help in generating wealth in the long run. In the case of FDs, investors who opt for periodic pay-outs with monthly frequency can get monthly returns. This can help in short-term income generation as compared to blocked funds in the case of gold investments. Taxation - Returns from gold are categorized as ‘Capital Gains’ and investors can benefit due to indexation. However, interest earned on FDs is taxable as per the prevailing income tax rates. Conclusion Investors who are looking for long term investments in gold can fetch higher returns and also save tax but are dependent on market volatility. FDs can fetch comparatively lower but guaranteed returns and are generally not affected by market fluctuations. Before making an investment choice, investors must conduct due diligence and weigh their risk appetite against the chosen investment. FAQs Is it better to invest in gold or FD? Gold and FDs offer different rates of return and across different periods. Gold investments are preferred for liquidity and long-term returns. FDs are preferred for guaranteed returns and hassle-free investment. Is it the right time to invest in gold? Gold is one of the most preferred forms of investment among Indian investors. Since inflation is likely to spike shortly, it makes sense to use gold investment as a hedge. Are gold bonds worth buying? Gold bonds fall under the low-risk investment category and are therefore ideal for investors who have a low-risk appetite. Compared to physical gold, purchasing and selling SGBs is cheaper. Hence, for investors who are considering a long-term investment avenue that can generate good returns, a gold bond can be an ideal choice. Can you lose money in a fixed deposit? Any FD investment with a bank is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme. This covers deposits up to Rs. 1 lakh for principal component and also interest. Thus, in case the bank goes insolvent, the FD investment remains safe. Is it good to invest money in a fixed deposit? FDs are a safe investment option. For investors who are looking to diversify their portfolio and minimise the risk element, FDs can make for a good investment alternative since these offer guaranteed returns.old bars instead of choosing other modes of investments like futures and exchange-traded funds.

1 year agoRead More
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