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Deficit financing is adopted when the expenditure is higher than the revenue in a budgetary situation. This expenditure revenue gap is financed by either printing currency or borrowing money to bridge the gap. Governments having deficit budgets often get their finances by borrowing. The indicator of deficit financing is the fiscal deficit. A fiscal deficit is a shortfall found in a government's income which is compared with its spending.

Tags:Finance

Finance rate which is also known as interest rate is the amount you would have to pay in addition to the principal amount that you borrow from a bank or any other financial institution. The interest rate amount will be the percentage of the loan you take, which you would have to pay back to the lender. The finance rate will be calculated on a yearly basis.

Tags:Finance

Many central and state plan schemes have been introduced to improve the socio economic status of fishermen and also to increase marine fish production. There are also public bank sectors like SBI bank and Canara bank that provide funds for fishing activities. Canara bank provides loans for purchase or construction of mechanized boats and non-mechanized boats too. Depending on the fishermans needs, they can get loans as per their requirements and eligibility. They can get loans up to Rs. 1 lakh without pledging collateral. But loans above Rs. 1 lakh would require collateral.

Tags:Finance

The finance industry offers a range of career options. Before choosing a finance course or a particular job in the finance sector it is better if you assess the field and make sure it is something you would want to do. Before taking up a job, it’s better to assess the requirements of the job. There are many career options to choose from when it comes to finance: Investment Banking, accounting, corporate finance, financial planning, risk management, etc.

Tags:Finance

Finance companies help individuals get credit either for their personal purposes or for their businesses. Credit is extended to both small and large companies as well. A finance company can be a bank, a non banking financial companies, credit unions or other financial institutions. Whether you need a business loan or a personal loan, make sure you check which financial institution is providing you with the best offer before applying for credit. 

Tags:Finance

Alpha is a term used in investing to describe a strategy used by a trader or portfolio manager to beat the market returns for a period of time. It is considered an active return on investment, where the performance of an investment against the market index or benchmark is considered to represent the market’s movement on the whole. Hence the excess return of an investment relative to the return of a benchmark index is the investments alpha. The value may be positive or negative and is the result of the investment made.

Tags:Finance

When you are purchasing a bond you are lending money to the government or a company. You will lend money to the issuer or the borrower. The bond issuer agrees to pay interest on a regular basis to whoever holds the bond. The borrower would have to return the principal on the loan when the bond matures. Bonds can be useful to people who are looking for a way to invest their money. While opting to invest in stocks, you are not exactly sure of the future cash flows of respective companies. But with bonds, you know exactly what you are going to get.

Tags:Finance

A financial derivative refers to any financial security whose value is derived from or determined by the value of another asset. The asset from which a derivative gets its value is known as the underlying asset. Common underlying assets for derivatives are stocks, bonds, interest rates, commodities, currencies and market indexes. The values of these underlying assets change according to the market conditions.

Tags:Finance

Securities are financial instruments which are tradable or can be sold or bought. Shares and bonds are considered to be securities and can be transferred to a person. While long term deposits like fixed deposits cannot be transferred to another person and therefore cannot be called securities. Securities have financial worth that can be traded in the public market. There are different types of securities like debt securities and equity securities.

Tags:Finance

The Annual Percentage Rate(APR) will be the total cost of borrowing, while normal interest rates are what your monthly loan payments are calculated on. The APR takes into consideration the interest you are going to pay over the entire life of the loan in addition to any extra charges or fees that you will be associated with obtaining that loan. Extra charges like processing fees, foreclosure amount, etc.

Tags:Finance

Seller financing is a loan provided by the seller of a property to a potential buyer. The buyer will make a down payment to the seller and then pay the rest of the money, including the interest rates, in the form of Equated Monthly Installments (EMI). This is typically a transaction where the seller provides a loan to the buyer rather than approaching a bank. To the seller, this will be an investment in which the return will be guaranteed only by the buyers ability to pay back also known as their creditworthiness.

Tags:EMI

SBI had stated that the option of wanting to take the EMI moratorium or to continue making payments is upto the borrower. If you have enough cash flow then it is not necessary to take up the EMI holiday. So if you have given instructions to deduct payments as per schedule to SBI, it will continue to happen until you intimate your bank about wanting to opt for the EMI holiday. So to opt for the moratorium, you would have to mail the bank instructing the same.

Once you apply a MUDRA loan, this will be updated in your credit report. And if you apply for another MUDRA loan under another lender, they would know that you had already applied for a MUDRA loan elsewhere. So that lender will most likely not approve your MUDRA loan application. And it is not advised to take two loans at a time because it would become hard to pay interest and EMIs.

No, opting for the moratorium/repayment holiday will not impact your credit score and if you don’t make payments during that time it won’t be reported to the credit bureau. However, if you fail to make payments after the moratorium gets over, your credit score will take a hit.

Tags:UPI

Carrying out banking transactions through mobile phones gets easier through mobile banking. As mobiles are easily accessible and used by everyone, making transactions will become faster. To activate mobile banking, you would have to follow the below steps:

Financial institutions are allowed to permit 3 month repayment holiday on interest with respect to working capital facilities that fall due between March 1,2020 and May 31,2020. The accumulated interest will have to be paid immediately after the repayment holiday/moratorium gets over.

Tags:EMI

The process of opting for the moratorium might differ from bank to bank. Ever since RBI had announced the repayment holiday, banks have followed suit on announcing details of the loan EMI holiday on their respective websites. Most commonly followed way for letting customers opt for the repayment holiday is by sharing links through SMSs or emails. Some financial institutes are also sharing their contact numbers on which borrowers can call them and confirm about their decisions.

Tags:EMI

Due to the hardships being faced by people because of the Coronavirus situation, the Reserve Bank of India has allowed banks and other financial institutions to provide a 3-month EMI holiday, starting from March 1, 2020 till May 31, 2020. However, you should remember that EMI holiday accrues simple interest on outstanding amounts which needs to be paid additionally. Term loans include all kinds of retail loans such as personal loans, home loans, vehicle loans, education loans, agricultural term loans as well as crop loans.

Tags:EMI

EMI Holiday does not mean waiver of repayment, but it is deferment of payment.The interest will continue to accrue on your EMIs during this 3 month period and will get added to your outstanding amount. This will also increase your financial burden when you start paying your EMIs from June. If you are getting your salary on time or have enough cash in hand, it’s better to pay your EMIs regularly.

Tags:EMI

Due to the Coronavirus pandemic, the 21-day lockdown has affected a lot of people financially. Many daily wage workers and salaried individuals have had pay cuts or have been laid off during these difficult times.

The EMI holiday is applicable for both the principal of the loan amount and the interest. The moratorium will not provide a waiver and the interest will continue to accrue on your EMIs during this 3 month period (from March 1,2020 to May 31,2020) and it will also get added to your outstanding amount. If you have already made payments for the month of March, the EMI holiday will only benefit you for the months of April and May.

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