August 2021


Pros and Cons That You Should Understand About Asset-based Lending

When you explore financing options, you may come across asset-based lending. These institutions rely on business assets to provide deposits. Every loan is unique, and most of them are business line credit. However, there are two types of lending, i.e., traditional business loans and business lines of credit. Likewise, the lender will look at the market value of your secured assets and offer a capital advance.

Besides, a business may borrow between 75% to 85% of the account receivables value. The business asset will be used to secure the financing, and the lender will be able to seize or sell them in the event of default.

Types of Asset Used

There are numerous types of assets you may use if you move forward with an asset-based lending institution. Here we mention a few of them.

Account receivables

If you invoice your client, you may use the receivables due within 30-90 days as collateral. The more you invoice, the more you’re eligible to borrow.


Inventory may serve as collateral. This is the best option for those who are in the retail or wholesale business. A lender appraises the resale value of the inventory to secure the loan.


Your business may utilize high-value equipment or machinery; however, your business should own it.

Real Estate

Real estate also qualifies for collateral.


Some of the noteworthy benefits include

Quick application and funding

You have the option to apply for an asset-based loan quickly. As long as you meet the criteria, you may get approved and receive the funds.

Financial Stability

During tough times, these loans are a real lifesaver. You may use it to enhance your cash flow to restore your business stability.

Competitive Interest rate

Compared to other term loans, asset-based loans come with a lower interest rate.


The greatest drawbacks include

Asset risk

If you fail to repay the loan, your business assets will be at risk. The lender may take the equipment, inventory, assets and sell them.


Along with interest, there’s a chance that you’ll have to pay other fees as per the loan.

Borrowing limit

The amount you may borrow totally depends upon the value of the asset. Besides, you may not receive as much funding as you need.

Rates and terms

When it comes to asset-based loan rates, they vary depending upon the valuation. In most cases, rates range from 7% to 30%. Likewise, you need to keep that in mind that loan terms are inconsistent. The type of asset you possess has a significant role to play.


If you are a business owner with a growing business, the loan may be invaluable. Before you partner with a lender and move forward with a loan, you should always research and compare all other options available to you. Analysis, review, and recommendations are essential when securing a loan.

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5 Top Mistakes Every Home Loan Applicant Must Avoid

A home loan is an affordable way to buy your dream house. Getting a home loan is a simple process. Compared to other types of loans, a home loan has longer-term and includes a larger amount. That’s why you should research the loan terms and conditions before settling the deal. Then, you must use the online home loan calculator to find the best deals on housing loans.

In the meantime, let’s check out the common mistakes homebuyers should avoid when applying for a home loan.

1.   Not Comparing Offers

Banks have different offers on home loans. Every bank has varied:

  • Interest rates
  • Repayment term
  • Eligibility criteria
  • Processing fees

Just because you are in a hurry doesn’t mean you should get a home loan from any random lender. Instead, research well and get a loan from a bank that offers the best interest and a flexible repayment plan. Use a home loan interest calculator to compare interest rates. You can also call the banks to ask about the processing fees and tenure.

2.   Not Checking the EMI (Equated Monthly Instalments)

EMI is the monthly instalments paid to the bank. The EMI varies depending on the term of your home loan. If the loan has a longer term, you will pay a smaller EMI. Short-term loans (the ones that are to be paid within 5-10 years) have a large EMI. You should check the EMI and compare it with your repayment capacity. Get a loan only if you can afford the monthly loan payments.

3.   Not Checking Your Credit Score

It is a 3-digit numerical value that shows your creditworthiness. Banks check your credit or CIBIL score to understand your credibility. It is calculated based on your past debt repayment records. The score can be anywhere between 300 and 900. You need a good credit score for a quick home loan application approval.

Always check your credit score before applying for a housing loan. It is available for free at

4.   Not Having Enough Money for the Down Payment

Bank asks you to pay a down payment – 10% to 20% of the total cost of the property. After that, banks pay up to 90% of the cost of your property while you pay the rest. Your home loan application is accepted only when you have enough funds for the down payment. So, check if you can arrange the down payment before applying for a home loan.

You only repay the amount you borrowed from the bank. For example, the 10% of the amount you paid from your pocket as the down payment is not included in the loan balance. You only repay the 90% borrowed amount.

5.   Getting Home Loan at Higher Interest

Always use a housing loan interest calculator when applying for home loans. Banks offer home loans with fixed-rate and floating-rate interest. The fixed-rate interest is a good option for borrowers who want a stable interest rate throughout the term. The interest does not remain the same in the fluctuating-interest loans.

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Top Reasons to add savings account in your financial portfolio

When it comes to money, being cautious means saving it for occasions when you might need it the most. It could mean getting repairs done in your home or covering sudden medical expenses. With these goals in mind, you always try to save more money than you did last year.

Regardless of how you save and how much you save, it is crucial to decide where you are going to put this money. Many often think about putting it into investment options. But that is a risky option if you simply wish to have more money on your hands. In such a situation, your best option is to have a savings bank account. Here are few reasons that make savings account the best option to store your money:

Safe option to store money

Savings accounts give you a great deal of safety when it comes to storing your money. The biggest sign of safety is that you can deposit or withdraw money from your savings account with ease. This way, you do not have to find a place to store cash. Moreover, you don’t have to carry cash with you all the time.

Digital banking services

The government has been making a lot of efforts to promote digital payment options. With newer payment options and more opportunities to make digital payments, these efforts made by the government only need to be complemented by people willing to adopt a new way of making transactions. For people with a savings account, making the transition to digital payments is much easier. This is because online savings accounts offer digital banking facilities like net banking, NEFT, RTGS, IMPS, UPI, etc. This way, you do not need to go to your bank branch to make any transactions.

Government scheme benefits

The government has taken a lot of initiatives to improve personal finance practices in the country. One of those efforts is to promote savings accounts for everybody. To do so, they have paired a lot of their schemes to saving accounts. For example, the benefits and subsidies that you may receive from various government schemes will be deposited into your savings account. In such a case, not having a savings account could cause trouble in receiving those benefits. Moreover, having a savings account also helps you in getting these benefits directly. There are no middlemen to be concerned about and much less processing.

Income through interest

The main reason you save money is to spend it on something later. But until that time comes, leaving it lying around does not do you any good either. Hence, you need to make sure that your money works for you. You can use your savings account for this as well.

When you take a loan, you pay a certain percentage of the principal amount borrowed as interest. It serves as the fees for taking the loan in some way. This mechanism is reversed in the case of a savings account. When you open a savings account, you give your money to the bank for safekeeping. Hence, the bank pays you interest for holding that money. This means that you earn more money by simply putting your money into a savings account. Moreover, the interest you get paid is decided by the interest rate. This means that the more money you put into the savings account, the more interest you earn.

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How to redecorate your Home for the Festive Season 2021

As the festive season approaches, it is time to set things in motion and kickstart the celebratory season. What better way to celebrate than by doing so in your own home? The festive season brings with it a number of attractive discounts and offers that can entice you into wanting to make purchases. However, not all of these commodities are affordable and some might only be able to pay them with the aid of equated monthly installments (or EMIs). Home décor and furnishings for instance are expensive. Read on to understand how to redecorate your home for the festive season this year.

Décor 101 – Need vs Price

Redecorating your home during the festive season is strongly encouraged as the new furnishings and wares bring with them new, positive vibes that are much needed during this time. Moreover, they add a fresh look to your home and as we are now spending a lot more time indoors it is important to be comfortable in the space in which we reside.

Now, despite the fact that redecorating your home during the festive season is encouraged, it isn’t always affordable. The price of home furnishings has been on the rise and not everyone can spare the money when they have other expenses to account for each month.

The ability to pay for furniture with EMIs is, therefore, a blessing. The Bajaj EMI card entitles you to the same such that you can shop stress-free!

Furniture Bought via EMIs

The Bajaj EMI Network Card lets you shop for furniture by converting each of your transactions into EMIs. These purchases can be made at its online partner stores of which there are several.

Buying furniture on EMI is easy and you have the option to choose from a wide range of furnishings including but not limited to sofas, storage cabinets, beds, shoe racks, and beds.

The Bajaj Finserv Partners online marketplace has a number of stores under its belt and boasts partnerships with stores like Hometown, Pepperfry, and Nilkamal among others.

As a buyer, all you are required to do is visit the partner stores’ websites or peruse their products on Finserv MARKETS and select the products most viable for your home. Use your EMI card in order to make your payment at checkout such that you can successfully buy furniture online.

No Cost EMIs

No cost EMIs imply you are not required to pay any additional interest on the principal. In layman’s terms, this means that you aren’t charged with any EMI in addition to the cost of the product itself.

You can buy a wide range of furnishings with no-cost EMIs applicable on the same. This means you can buy home decor online with Bajaj EMI card or a sofa, study table, or recliner. The options are endless – all you’ve got to do is explore the offerings and select what you think serves your needs best. 

Benefits of Buying Furniture Online

For those of whom are uncertain about buying furniture online, it brings with it a number of benefits that aren’t available when visiting physical stores. These benefits include the following.

  • Hours of operation – When shopping online for furniture you have the freedom to peruse the product offerings at a time that works best for you. You are no longer dependent on or have to follow store timings.
  • Location – As opposed to having to make a trek to a furniture store, online shopping for furniture can be done in the comfort of your own home or anywhere of your choice for that matter.
  • No pressure – When you shop for furniture online you aren’t pressurized by a sales assistant to make a purchase. Instead, you have the freedom to come back to a product as often as you’d like before making a decision.


Shopping for furniture online has never been easier and ought to be taken advantage of this festive season. Visit the Fiserv MARKETS online to discover more offers today!


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Everything you need to know about Kisan Credit Cards

The Kisan Credit Card Scheme (KCC) was introduced in 1998 by the Ministry of Finance, Government of India, to help the farmers/cultivators with the farming and agriculture-allied activities investments. The loan issued under the KCC scheme has a minimal interest rate of 2% to 4% and is available to cover a host of activities, including post-harvest costs.

What is the scheme?

The eligible beneficiaries can apply for the Kisan Credit Card both online and offline, depending on their access and ease of usage of the platforms. Under the scheme, the eligible beneficiaries (list at the bottom of the blog), can apply and get a loan of up to Rs.3 lakh. They can get loans for the marketing of the product. Other benefits of the scheme include:

  • KCC scheme beneficiaries get an insurance cover of Rs.50,000 in the case of permanent disability or death and a cover of Rs. 25,000 considering other associated risks
  • Beneficiaries will get a savings account with a substantial interest rate. They will also receive a smart card and a debit card, along with the Kisan Credit Card
  • The eligible farmers will be granted repayment options for up to 3 years and once the harvest season is complete.
  • Eligible farmers will receive constant help in the purchase of fertilizers, seeds, etc. They will also get help in bargaining and availing monetary discounts from merchants and/or dealers.
  • No collateral is needed for loans up to Rs.1.60 lakh.

How to apply for a KCC loan?

One can apply for a KCC loan by either visiting their bank branch or applying for the KCC card online. For online, the application must go to the website of the bank branch one would want to seek a loan from. For offline, visiting the branch and furnishing all the relevant documents is required.

Following are the Kisan credit cards documents required while application, both online and offline

  • Filled application form
  • Copy of any identity proof documents. It could be Aadhar Card, PAN card, driving license, ration card etc.
  • Documents of land owned
  • Copy of document validating the applicants’ permanent place of residence
  • Passport-size photograph of the applicant
  • Any other document subject to request by the issuing bank as a form of security


As per the Reserve Bank of India circular, the following are the categories of people who would be eligible for loans under the KCC scheme

  • Farmers, this includes both individual and joint borrowers who are own the land and cultivate
  • Tenant farmers, oral lessees & sharecroppers
  • Self Help Groups (SHGs) or Joint Liability Groups (JLGs)

To sum it up:

The Kisan Credit Card Scheme is a great tool for farmers who need investment before the harvesting season begins. The information on how to avail of the facility should be disbursed across, so every potential beneficiary would know where to go for help.


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Importance of Factoring for Staffing

Those people who run staffing agencies know the significance of cash flow. Waiting for clients to pay for their invoices will always create huge gaps in the cash flow. One of the best solutions for this common problem is invoice factoring for staffing agencies. This is a form of invoicing that allows you to get paid for the invoices immediately instead of waiting for the customers to pay.

Advantages of invoice factoring for staffing companies

Helps you grow the business

Invoice factoring for staffing companies is more than the means to help your business survive. It can help your business grow and thrive. When you are struggling with working capital problems, you will need to get the best way out. Invoice factoring offers you the steady influx of cash you require to expand and improve your staffing company.

Helps you have consistent cash flow

Lack of enough cash flow can harm your business. Steady cash flow is important for running your business on a daily basis. As with the kind of business, staffing companies have their challenges. Yet, even when the business is not doing well, you will have to meet all the financial duties like paying workers and keeping the office operational. Invoice factoring assists you in getting over these rough patches by offering consistent cash flow.

Simple and fast type of financing

Applying for a small business loan is a complex and drawn-out procedure. It will take weeks, even months, to get accepted and get the finances you require. On the other hand, invoice factoring is simple and fast. When your request is approved and submitted the invoice you want to factor, you get the money deposited into your business account immediately. Financing institutions and banks tend to limit the amount you want to get depending on the criteria like your credit score and the duration you have been in business. With factoring for staffing, you can get unlimited funds depending on your invoices.

Favorable terms than conventional financing

The majority of small businesses have experienced difficulties in getting bank loans. You find that these companies are eligible for factoring. Furthermore, you will realize that the terms and conditions are beneficial to your long-term financial health. One of the best things about factoring for staffing is that it doesn’t force you to take more debt. Literally, you are not taking a loan but leveraging your account receivables. That means you don’t need to provide security like an asset or real estate. Most businesses find that invoice factoring is the less stressful and more favorable option of financing compared to loans.

Factoring for staffing agencies offer back-office support

Besides financing, a factoring agency will help you save a lot of time and run your business smoothly. They provide professional assistance in fields like collection, client relationship management, and account receivable reporting. When you work with a reliable factoring agency, you get valuable assistance running your back office duties. This allows you to devote more time to important things.

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