SBI Xpress Credit Personal Loan for Low Income (Rs.5000/month) Earner

Personal loan is the biggest profit making business for a financial institution. This is mainly because of the high interest rate charged in addition to various other fees such as late payment, foreclosure, etc.

And when it comes to borrower, individuals from low income group are mostly in need of personal loan either for medical emergency, short term money need, etc. However this category of individuals are not the main the target audience of the bank despite of the fact that bank need more new customers in order to garner more profit. The biggest reason for this is the high risk associated with poor earners as repayment capacity is considered not to be good, which is practically correct. Failure to make repayment results in rise of non-performing assets which is a loss for any lender.

This is the reason, low salaried individuals in need of personal loan have a belief that financial institutions offer loans only to high income/salaried only. And because of this belief, they approach private money lenders or others giving loan to low income earners in return of high interest and pledging the security. However this is not true.

There are many financial lenders offering personal loan to low salaried individuals and one such lender is State Bank of India, India’s largest public sector bank. And one of their loan product is SBI Xpress Credit Personal Loan is targeted towards low salaried individuals only.

Here is the table showing the important information:

Minimum Net Monthly RequiredRs. 5,000
Minimum Term Loan AvailableRs. 25,000
Maximum Term Loan Available24 times net monthly income or maximum Rs. 15,00,000 (15 Lacs)
Repayment Period5 Years
Interest Rate:
For IT employee with credit bureau score (750 & above)13.15%
For IT employee with credit bureau score (550 - 749)14.15%
For IT employee with credit bureau score (Less than 550 / No Score)15.15%
Government/Central govt. employees12.65% - 14.75%
Co-operatives or unrated companies13.40% - 15.00%
SBI salaried employees with credit bureau score (800 & above)10.75%
SBI salaried employees with credit bureau score (700 - 799)11.25%
SBI salaried employees with credit bureau score (600 - 699)12.25%
SBI salaried employees with credit bureau score (Less than 600)No loan provided
Non-SBI salaried employees with credit bureau score (800 & above)11.00%
Non-SBI salaried employees with credit bureau score (700 - 799)11.50%
Non-SBI salaried employees with credit bureau score (600 - 699)12.50%
Non-SBI salaried employees with credit bureau score (Less than 600)No loan provided

So as you can see, if your net monthly salary is Rs. 5,000 (Rs. 60,000) then you have a good chance to get loan provided you meet other eligibility criteria.

Other benefits of this product

  • Compared to its other loan products, interest rate charged is very low depending on the category of the applicant, as shown in the above table. The reason for high interest rate is the risk associated in personal loan.
  • It is a unsecured loan. Meaning, there is no requirement of providing any type of security.
  • Many of loan products available in the market has high processing fee
  • Upon successful repayment of the loan, borrowers can apply for second loan as well. However the eligibility criteria is overall EMI/NMI ratio of 50%.
  • If there is any overdue amount, then additional interest of 2% per annum will be charged.

Additional reading – list of other banks offering loan to poor income earners.

Eligibility

In addition to the net monthly income, the applicants must be working in following institutions:

  • Central and state government
  • Central PSU
  • Educational institutions
  • Selected companies having business relations with SBI

Things low income earners should keep in mind

1) Never approach multiple banks when applying for the loan as it affects your credit score negatively

2) Always try to complete the loan repayment before the standard loan tenure without foreclosure or any other charges.

Check out tips on how to earn extra income

3) Take successful loan closure letter from the bank once all the money is fully paid-off. This helps for any future dispute with the bank.

4) After closing the loan, check with the bank whether they have updated CIBIL record or not. If not, ask them to do this on priority. This is highly important because you may not get any type of credit in the future if record in CIBIL database is not updated. So when you apply for any loan in the future, the bank will check CIBIL record. And if they found that your previous loan is still active, they may reject your loan application. And at the same time, this rejection will be updated in CIBIL record.

5) In addition to interest rate, personal loan comes with many other charges which are mentioned in the documents. However individuals tend to ignore reading these charges and only when they are levied such charges, they realize such charges exist.

6) Always negotiate with the bank on lowering the interest rate without any hesitation. Especially when your credit score is good, banks may reduce the charges. Negotiating is an extremely good strategy when it comes to any financing.

7) Always compare rates of multiple lenders. The main objective of low salaried individuals seeking personal loan should be to save money wherever possible.

Visit this SBI link for more details about Xpress Credit Personal Loan.

 

 

Get Personal Loan in USA from Peer to Peer Lenders & Banks

Getting personal loan in USA is easy and fast provided you meet all the eligibility criteria especially income and credit score. And borrower doesn’t mandate to provide collateral. Purpose doesn’t matter when seeking a personal loan. Whether you want to buy a new car, renovate your home, refinance your credit card, consolidate your debt; getting access to loan is easy and convenient. This is because the interest rate is usually much lower compared to credit cards.

You can get personal loan in USA from:

  1. Banks
  2. Peer to Peer Lending Companies

Peer to Peer Lending Companies

These are nothing but online marketplaces for loans which connect borrowers with investors (i.e. lenders) with no banking institution in between.

Here is the list of P2PL in USA:

Prosper

Is a peer to peer lending platform and offers unsecured loan for meeting any purpose such as financing medical care, to consolidate existing debt, and others.

You can get unsecured personal loan from Prosper for amount ranging from $2,000 to $35,000. But in order to get the approval, the applicant should have good credit history with a minimum score of 640. And based on the score, interest rate will be calculated.

Lending Club

Offers finance upto $40,000 at a rate starting from 7.99%. If you qualify for the loan and it is approved, you can get money within 24 hours. You only need to fill out the online application or contact them over phone any day of the year. Their representatives are available to assist you 365 days a year. There is no fee for loan application and early closure of the loan.

Upstart

Is another P2PL in USA, offering loans ranging from $1,000 to $50,000 for credit card debt refinancing and debt consolidation at a rate of 7.8% – 29.99%.

Banks offering Personal Loan in USA

Lending money from bank is another option when you need personal loan in the United States. You need to simply contact them to request a quote and compare offers from several banks. Banks have advantage of lending money as they earn profit in return.

Here’s the list:

Wells Fargo

It offers you the possibility to get a loan of between $3,000 to $10,000 without prepayment or origination fee. And the interest rate charged is between 6% to 8%.

You can apply for the loan online and get it on the same day if you have a good credit score. For example, if you need to refinance your car, you can be charged a rate of 1.99%.

U.S. Bancorp

Offers line of credit and personal loans for amount ranging from $3,000 and $25,000 at an interest rate of 8.99%. But this rate can be even lower depending on the purpose of the loan. For example, if you need the money for making your home energy efficient then the rate will be lower, with an application or origination fee of about $50 with requires no collateral or annual fees.

However, online application for a personal loan at US Bancorp is applicable only to their customers who are over 120 days old. But if you are a new customer requiring finance, then you will have to personally visit one of its branch and become an account holder and then as a customer apply for the loan online.

TD Bank

It offers unsecured loans from $2,000 to $50,000 dollars at an interest rate of 10%.

Citizens Bank

This retail bank offers various financial products for consumers such as traditional savings accounts, checking accounts, personal loans and student loans and others.

For getting personal loan from Citizens Bank, you can either visit their branch offices located across the country or on their website. But applying for a personal loan on their website is most convenient, as it is time saving. You can get loan amount between $5,000 and $50,000 at fixed rates of 5.99%. You can also choose from 3 to 7 year payment plans with no prepayment or application fees.

You can apply for loan to meet any objective such as special occasions like marriage, birthday, paying off your vacation or consolidating any existing debt, especially credit card debt.

However the minimum income required to get the loan approved is $24,000. And in addition to the income, the applicant needs to have a very solid credit history.

PNC Financial Service Group

It offers you loans from $1,000 to $100,000 with an interest rate of 7.74% depending on the amount of money borrowed.

Other companies offering personal loan in USA

America First Credit Union

Offers fast approval personal loans for a special purchase, vacation, education or any emergency as long as you have a solid credit score and a low interest rate if you secure the loan with a shared savings account or a certificate account.

However you should note that, the interest rate of the credit card is higher than the interest rate of the bank loan regardless of which bank it is.

FreedomPlus

This consumer lending company, offers you the possibility of accessing a loan between $10,000 and $35,000 dollars with a repayment term of 2 to 5 years and an interest rate of 4.99%.

In addition, depending on the state you live, the rate may be vary between 0% to 5%. Loan approval is based on the evaluation of your credit score, if you have a co-signer, your income. If your retirement assets reach a minimum of $40,000 you can get a discount on the interest rate, which can be 2% or 4%. And even if half of the loan is used to pay an existing debt, you can get a discounted interest rate.

Low Salaried, Looking for Personal Loan? 7 Ways to Save Money

Getting any type of credit (especially personal loan) is like falling into the debt trap which is created by the lender. Because initially when you get loan amount credited into your bank account, the things start looking greener as your wish of taking loan for whatever purpose comes into reality. But irrespective of taking a personal loan, home loan, car loan, etc. the amount you end up paying by the end of the term sky rockets and is not evaluated often by many. This increase is because of high interest rate and various other charges such as processing fee, pre-payment penalty, cheque bounce, etc. that comes along with the loan.

So how to save money when deciding to take personal finance?

7 ways, individuals looking for personal loan can save money

Do you really need a personal loan? 

Even before you start looking for personal loan, ask yourself – do I really need a personal loan? Many people, take personal finance for going on a foreign trip, buying expensive jewelry, consumer items such as high end gadgets, etc. But do you really need to borrow money for such things? And by not having these things, will your life change, will you make losses in the absence of such things? Definitely not, right?

So the first tip is to take a loan only when it is utmost important e.g. medical emergency. You would be surprised to know the amount of money you will save by not taking a personal loan.

Arrange money from your own savings/investments: If you have decided that borrowing money is the only option then the first solution should be utilizing your own savings. Check out all your bank accounts, investments made, any money lent to friend/relative, and others. For e.g. if you have invested in fixed deposit and the term is nearing to its end, then you can make premature withdrawal. Although there would be a penalty but this amount would be negligible compared to the interest and other charges you will end up pay after taking loan. Especially individuals with low monthly salary or self employed with low income should always remember – taking personal loan from a bank should be the last option. And if you are still short of money, then try the following next option.

Borrow money from your friends/relatives: This should be your second preferred option. If your own saving is not sufficient to meet the objective then borrow money from your acquaintances. There is absolutely no harm or hesitation in asking for money. Either they will agree or disagree. But there is always a 50% chance of your friend saying YES. To further increase your chance, in return, you can pay them interest, lower than what banks or other lenders are charging. This way both of you will be on a winning side i.e. lending person (your friend/relative) will get higher amount of money in return and your purpose will be solved. But make sure to make timely repayment as promised, because trust once lost, takes time to develop. However everyone has their own financial objectives in life. So this alternative solution may not always work. If it doesn’t, try the next option.

Loan against Securities: If your friends/relatives or other known person are not able to help much, then your third option should be to take personal loan against securities. Not many people are aware of getting loan against securities is possible. Such type of loan falls under the category of secured loan. Many financial institutions offer such loan against fixed deposit, physical gold, shares, mutual funds, LIC policy, etc. While it may not be possible for individuals from low income group to have assets such as gold, shares, mutual fund, FD, etc. But if you have any of these, then take loan against these. There are many advantages of availing such loan – low interest, no credit history check, interest is charged on the amount utilized and not on the entire loan amount, and so on.

Opt for Cash Loan: If secured loan is also not possible then apply for cash loan. This is offered by financial services companies and not banks. Cash loan is actually a personal loan but offered for short term and small amount and low interest and processed very fast. In India, you can get such quick loan from NBFCs such as – mobile wallet companies, peer to peer lending companies, or credit finance companies. Read details about getting cash loan.

Approach Co-operative Bank: Before approaching commercial bank, apply for loan at co-operative bank. There are many benefits of availing personal loan from co-operative bank such as low interest, not very stringent terms and conditions, zero prepayment and processing charges, and many others. This article on personal loan from co-operative bank provides detailed information. The table below shows few of the commercial banks and their income eligibility criteria:

Name of Co-operative BankMonthly Income Required
The West Bengal State Co-operative Bank Ltd.Rs. 2,000
The Andaman and Nicobar State Co-operative Bank Ltd.Rs. 5,000
The National Co-operative Bank Ltd.Rs. 5,000
Abhyudaya Co-operative BankRs. 8,000
The Greater Bombay Co-operative Bank Ltd.Rs. 10,000

Loan from Commercial Banks: Finally, if none of the above listed options work, apply for loan from commercial bank. But make sure you bargain on lowering the EMI and ask for flexi repayment option but without extending the term and with no increase in the interest rate. If you have good relationship with the bank and your case is strong, things will be in your favor. Although this would be loss making for the banks but saving money as much as possible should be your ultimate objective.

So bottom line is – If you want a better financial life, try to avoid taking personal loan or any type of loan as much as possible. And if you do so, try to move out of debt as early as possible. And especially for poor income borrowers, personal loan is more expensive and it really affects your finances badly. So for such individuals, saving money should be the prime objective.

5 Ways to Get Personal Loan for Salary Under Rs.15,000/12,000/10,000

Personal loan is the most profit making business for any lender (financial institutions such as commercial banks, co-operative banks) or NBFC’s such as, peer to peer lending companies or financial service providers or private money lenders and others). This is because of the high interest rate charged typically 18% and above and additional fees charged due to cheque bounce, late payment, etc.). But on the other hand, it carries risk as well, because of borrower defaults.

And risk is the reason why financial institutions set minimum income criteria before approving personal loan especially when the required loan amount is high (typically greater than Rs. 15,000 or even more)? Based on the income they evaluate the credit worthy applicant and prevent themselves from giving loan to someone with no/poor repayment capacity thereby reduce the non-performing assets. NPA’s are highly loss making for any lender since it is a unsecured loan. Meaning, in return of credit, lender does not ask for any security. For e.g. home loan – where borrower has to mortgage his/her home till the loan is fully paid.

Let’s understand ‘RISK’ with an example: Suppose you lend Rs. 1,00,000 to your very near friend/relative earning a low salary. And he/she assures you payback the money after 3 months but doesn’t pay. And instead he pays the money back after 1 year. Isn’t this a loss for you? Had you received your money fully and on time, you would have put that money in some safe investment product (e.g. fixed deposit) and earned interest money. And so, would you ever risk of lending money to the same person in the future or other? This is the same logic on which banks work on. In order to check the eligibility of the borrower they first want to know their income in addition to verifying the CIBIL record, documentation, etc.

However not every lender sets high income eligibility for personal loan. Because if they do so, they won’t get new customers especially from the low income group, who are actually in need of money than high income earning person.

But where to apply for loan when you have low monthly salary of Rs. 15,000 or less?

There are following five options to get personal loan when your salary is less than Rs. 15,000 or Rs. 12,000/Rs.10,000 or even less.

  1. Commercial Banks
  2. Co-operative Banks
  3. Cash Loan
  4. Loan against Securities
  5. Private Money Lenders

Commercial Banks

Banks such as City Union Bank, State Bank of India, ICICI Bank, Canara Bank, Axis Bank, Dena Bank, Punjab National Bank. Listed in the below table is the income criteria of the these commercial banks:

Name of Commercial BankIncome Required
City Union BankRs. 6,500
Canara BankRs. 10,000
State Bank of India (Xpress Credit Personal Loan)Rs. 7,500. For state and government, PSUs, selected companies
State Bank of IndiaRs. 10,000 (rural/semi-urban)
HDFC BankRs. 12,000
ICICI BankRs. 15,000 (for individuals from Bangalore, Chennai, Hyderabad, Pune, Kolkata)
Axis BankRs. 15,000
Dena BankRs. 15,000
Punjab National BankRs. 15,000

Co-operative Banks

Commercial banks such as State Bank of India, ICICI Bank, HDFC Bank and others are ready to provide more money in the form of loan but in return they charge high interest rate and in addition to various other fees. So other bank alternatives to get cost effective personal loan are the co-operative banks.

Here is the table showing list of co-operative banks offering personal loan and salary required (less than Rs. 15,000 net).

Name of Co-operative BankMonthly Income Required
The West Bengal State Co-operative Bank Ltd.Rs. 2,000
The Andaman and Nicobar State Co-operative Bank Ltd.Rs. 5,000
The National Co-operative Bank Ltd.Rs. 5,000
Abhyudaya Co-operative BankRs. 8,000
The Greater Bombay Co-operative Bank Ltd.Rs. 10,000

So even if your salary is less than Rs. 12,000/Rs. 10,000 then also you can apply for finance at above listed co-operative banks.

The advantage of borrowing money from co-operative bank is – less interest (15% or less with most of the banks). But in return these banks want the borrower to become their member, buy shares, and keep security and add guarantors. They are money saving due to multiple other reasons as well, such as – no processing or prepayment fee, and flexible terms and conditions.

There are many other co-operative banks from where you can get personal loan even if your net salary is Rs. 15,000 or less. Many of these banks offer loan ‘N’ times of gross monthly salary. You should check with these banks for the loan. Definitely the income criteria with such banks is not high compared to commercial banks.

Cash Loan

It is nothing but a personal loan but loan amount and tenure is short. So if you need instant credit and your salary is poor, then cash loan is a very good solution. You can apply for cash loan at:

Peer to Peer Lending Companies: These are online marketplaces for loan where lenders are individuals. You can decide which lender to take loan from and decide on the interest rate as well. Check out this article for more detail. With P2PL, you can apply for higher loan amount as well.

Mobile Wallets: If you have smartphone and use digital payments app such as MobiKwik, Paytm, PayU then you can get personal loan from these apps companies. However such companies offer small amount loan but with low interest and not very high income eligibility criteria. And this is what low income earner wants – save money. So if money required is small, then you can opt for cash loan from such apps. Typically based on the transactions with the app, the loan is pre-offered. But you can still apply exclusively. Important thing to note is – these app companies themselves do not provide loan and instead they partner with financial lenders (NBFCs) and provide loan.

Credit Finance Companies: These are again non-banking financial companies (NBFC) offering instant cash anytime, anywhere. Read more in detail here.

Taking personal loan from these instant loan providers is best, since there is no banking institution in between and the loan process is extremely fast. And most importantly there is no risk involved. Therefore they are considered as emergency cash partners.

Loan Against Securities

Another option to get loan and at the same time save money on EMI is against securities. This is nothing but a secured loan. So if you are a genuine borrower then keep your assets/belonging as a collateral with the bank such as fixed deposit, shares, mutual funds, LIC policy, gold and get a loan against it. Such loans carry low interest and hence are money savers. But remember that, in case of of default, banks have right to get their money from the assets kept with them as a collateral. Most importantly there is no salary criteria. So even if your salary is Rs. 12,000 or Rs. 10,000 or less you can apply and get loan easily.

Private Money Lenders

Never ever approach such lenders for your finance needs. They charge a very high interest rate which is even more than commercial bank and the risks involved. In case of default they use unethical ways to recover money. Although there are genuine lenders as well, but you should stay away from them because of high interest rate.

So as you can see, there are multiple options to get personal loan when your salary is under Rs. 15,000 per month.

Canada: Bank Account, Debit, Credit Card for Students

Canada is becoming a favorable destination for students seeking education. But for international students, some basic information on banking system in Canada is very important.

This article discusses this information in a very basic manner.

When moving to Canada, there are three financial products everyone should have in his/her name:

  1. Bank account
  2. Debit card
  3. Credit card

Opening a bank account

Opening a bank account is first step towards entering into financial system of Canada and is essential for everyday transactions. To open it, simply go to the bank of your choice, preferably near your home or college. You will be asked to identify yourself using your social insurance number and/or passport. It is important to choose your financial institution carefully because the rates for transactions, cheques and other services vary from one institution to another.

Some banks allow remote account opening from your home country.

Several banks offer specific services to international students and this includes:

  • Scotiabank Student Banking Advantage Plan
  • CIBC Advantage for Students Account
  • Royal Bank of Canada (RBC) Student Banking Account
  • The Toronto Dominion Bank (TD Bank) Student Checking Account

Debit Card

In Canada, when you open a bank account, you will be typically offered a debit card for free which is directly linked to your bank account. You have to understand that there is a difference between a debit card and a credit card. Each one has its own functioning and features which is not always easy for the newcomer to grasp especially the students.

A debit card is mainly used to pay for purchases in stores (grocery, stationary, and others). And the amount spent is debited from your checking account the same day. You can also use your debit card to withdraw cash at ATMs (with a fee if you withdraw at a different financial institution). However, you will not be able to use it to make online purchases on the Internet. In this case, you will need a credit card. In many countries like India, you can make online purchase even using a debit card but this is not the case with most of the banks in Canada.

Credit Card

This is the most important financial product everyone moving to Canada should have as it helps in building the credit score which is a gateway to future financial needs in the country. Note that, just by having a bank account and debit card does not help in building a credit history.

Credit cards are widely used in Canada and also in many other countries. However they are not always linked to your bank account (like a debit card) but with a credit account from another organization. You will receive a monthly statement of the card account and the payment due date. You have no obligation to pay the full amount, but a minimum amount must be paid each month. The amount due is accompanied by fairly high monthly interest rates (between 9.9% and 19.9%) until the amount is fully repaid.

Major retail chains and some oil companies offer their own credit cards. Since the application for a credit card often involves historical credit analysis in Canada, it can be difficult for newcomers, for whom a “credit rating” does not exist.

Some financial institutions are more accommodating than others in this regard and some also offer secure deposit-guaranteed credit cards for new immigrants. Depending on the credit card choice, interest rates, authorization limits, payment terms and annual fees may vary from one institution to another.

Some of the secured credit cards in Canada are:

  • Capital One® Secured Card
  • Refresh Financial Secured Visa
  • Scotiabank Value® VISA Card
  • Home Trust Secured Visa Card
  • DCU Visa® Platinum Secured Credit Card
  • Peoples Trust Secured MasterCard

So these are the very basic financial products anyone moving to Canada should own. Getting a credit card in Canada should be the most important objective especially when you are planning to stay longer.

10 Small Investment Businesses for Low Income Earners

Typically when a person with low income, thinks of starting a business, the next question that comes into the mind is “do I even have the enough money to start a business?”. But remember that, not every business requires huge investment capital and there are low-cost businesses you can start today. That’s what this article is all about i.e. businesses requiring low investment especially for low income earning individuals, although anyone implement the businesses mentioned here.

Once you get to know the businesses requiring small investment, you’ll be convinced that, beyond just needing capital to get started, what you really need is a hard work, willingness to take risks, and start with whatever you have.

Businesses with little investment to start today

Here are 10 business ideas with little capital to start with. Some of these businesses will allow you to earn online from the comfort of your home whereas others offering your services and knowledge to people interested in what you know, among others.

1. Work as a freelancer

Are you artistic in nature and good at designing advertising creatives such as banners, logos, etc? Are you an expert in web designing and development? Is it easy for you to write on any topic?

One of the low investment businesses you can undertake, using your skills in your spare time to earn extra money, is freelancing.

The costs are minimal, since all you need is a good computer, internet connection and relevant tools required for that particular task. So you need to invest your time to create a portfolio of services and start looking for your first customers.

There are many online platforms for freelancers such as Freelancers, Fiverr, Upwork, Workana and Nubelo.

2. Personalized classes for college and university students

Teaching is a noble profession. And if you have acquired experience in a specific field after years of working, then why not use this knowledge to teach one-to-one classes to students. You can teach economics, design, programming, math or whatever subjects you’ve mastered in.

You can charge hourly and define the hours of study, something that helps you to undertake while you are working. For this type of business with little investment, it is important that you manage your travelling cost, food and time well.

For this, you can learn to create a personal budget and be very disciplined with your time.

3. Offer professional photography services

If you’re the type of person who likes to take pictures and share them on social networks, you could create a profitable business from these snaps.

For this low investment business, all you need is a good camera that allows you to take good pictures. This doesn’t have to cost thousands of dollars, but it can’t be your cell phone either as you need good quality images.

You can start offering your services for family or friends at their events, usually done in your spare time. Another alternative would be to sell your photos to image sites.

4. Weekend childcare

Do you like children and find it easy to take care of them? Then why not turn your taste into a business?

You can do it at night or on weekends, usually parents look to go out at night or have events where their children can’t attend. Start offering this service in your neighborhood, it doesn’t require investments beyond promoting your business.

In fact, once people know your skills they will begin to recommend you. Remember that businesses with little investment can become big companies if you start from the simplest, identify what the real added value is and do things well.

Once you identify what value you can exploit, you can start hiring other people, even in the future, if you develop a structure and a business model, you can start thinking up a cheap franchise model.

5. Being a dog walker

All you need are good shoes, dog leashes and fitness that you can develop in the first few weeks.

If you like dogs, you can turn this hobby into one of the low investment businesses you can enjoy while walking your neighbors’ pets.

You can charge by the day or by the week at a convenient time for both. It’s also a good way to exercise, as these walks will not only help dogs and you can take advantage of all the benefits of walking.

6. Offer house cleaning services

If you feel that your income is not enough, and you are looking for new alternatives to earn money quickly, you can propose to your friends that you clean their apartment or house.

You can start by doing it yourself and then create a whole cleaning system. That’s where the magic of creating business with little investment lies, initially you must do it yourself, but later you can delegate and focus on managing it.

When you develop a cleaning technique that is replicable and scalable, you can hire other people to do the cleaning and you can focus on winning new contracts.

In the future you will be able to expand your business to gardening, office cleaning, and restaurant services.

Remember that the largest empire began with the smallest idea.

7. Selling your knowledge: Consultancy or advice

Do you understand how digital marketing works, direct sales, how to optimize a process within your company? Do you have a knowledge and method that can be monetized?

You can provide consulting services to other companies or entrepreneurs that have a common problem and for which you have an alternative or solution.

This can be the first step in starting your own business or independent life; you don’t need to quit your job today to do it, you can use your free time to do it.

8. Be a virtual assistant

In this business with little investment, you need to have free time as you will have to assist several people at the same time.

You don’t have to be in an office to provide this service. In fact, this is one of the ways to make money from home, with your personal computer and an internet connection.

Maybe the company you are attending is in another city, or even another country, all you need to do is provide administrative support that allows the other person to focus on what adds value and makes a difference, and you provide the administrative service.

For this, the only investment you need is time to get to know yourself and present yourself to potential entrepreneurs or executives who require your service.

9. Create digital content

One of the businesses with little investment that most people don’t believe possible is to have a blog that generates income to live on.

So the first thing to do is to make it clear that you can create a blog and make a living from it, since digital content is a trend today and we all want to be informed, something that a blog can offer.

Creating a digital publication that doesn’t just require money, but also time. To start you need to define the topic you are going to talk about, choose a domain and buy a hosting plan.

10. Write an ebook or create digital products

Finally you can write a digital book or ebook and sell it on platforms like Amazon, where you can sell it for a commission.

Writing books is the kind of low-investment business that needs your hard work while you’re creating it, but once you get it ready, all you have to do is promote it.

Once you have the book ready, you can promote it and sell it on Amazon. Normally the commission is 30%, which is somewhat expensive, but you will have access to millions of buyers around the world.

These low-investment businesses are not just limited to books, as you can also create online courses and other digital products that you can promote on the web through affiliate marketing.

In the case of books, all you need is inspiration, knowledge and a lot of consistency to write a quality content. This can be the beginning of a successful career as a writer.

In conclusion, like any business, it requires an investment of time, resources and money to turn small business to a large business and most importantly it requires hard work to succeed in business or any area of life.

Cash Loan for Low Income Earners: Instant, Short Term, Secured

The need for money typically arises when the month end nears or in the mid of the month. But imagine unexpected crisis arise all of a sudden (e.g. a medical emergency, money gets stolen before marriage, etc.) requiring good amount of money to meet the demand. And at that time you don’t have enough money in your bank account to meet the purpose.

Ideally in such cases, you will approach your friends or relatives for money, which is the best recommended option because it saves time and is extremely cost effective but works on trust. If they are able to help you at the time of need, then nothing better than that. But what if every option fails including your personal savings not able to fulfil your money requirement and you need money only for a very short term. This is typically a scenario when you have small amount of money in your bank or wallet.

Cash Loan – Your Emergency Cash Partner

In such scenario, cash loan is the solution to your problem which acts as a rescuer and act as your emergency cash partners. For certain category of individuals, e.g. low income earners, cash loan is the perfect solution.

Cash loan is nothing but a personal loan or advance loan but typically offered for a very short tenure and small amount. Unlike personal loan, where the tenure is long and fixed and loan amount is high, cash loan repayment can be done anytime and loan account can be closed before the tenure and extended as well, on need basis.

Who offers cash loan in India?

There are few lending companies in India offering such type of financing. Most importantly financial institutions do not offer cash loans in India. But there are lenders who offer loan for a short period (minimum 3 months – 24 months) with amount ranging from Rs. 5,000 to Rs. 5 Lacs.

These are broadly categorized as:

  1. Peer to Peer Lending Companies
  2. Mobile Phone Based Payment Apps
  3. Credit finance companies

Let’s get into details of these companies.

Peer to Peer Lending (P2PL) – Online Lending Marketplaces

Peer to peer lenders are basically non-banking financial corporations but under control by Reserve Bank of India. Since there is no involvement of bank, the loan processing is fast. Few of the prominent P2PL in India are – Faircent, i2ifunding, lendbox.in, and others.

In case of peer to peer lenders, the company themselves do not offer loan. Instead, money is lent by pool of investors (i.e. individuals). P2PL basically create a platform to connect borrowers with lenders. And in return, such companies make money through various fees associated such as joining fee, etc.

Mobile Wallets or Digital Financial Services Platforms

These are the new age fintech companies who make use of latest technologies to make the complete process digital. However financing is one of the service provided by these wallets. Their main business/service is digital payment. Advantages of taking loan from mobile wallets are – Very minimal paperwork, speedy processing, quick disbursement, and so on.

Few of the prominent mobile wallet players in India offering quick credit are:

Paytm: If you are a Paytm user (website or mobile app) then you are likely to get pre-approved loan depending on the transaction history with them.

MobiKwik: Another mobile wallet in India which offers instant loan of upto Rs. 60,000

PayU: In partnership with Reliance Money, PayU offers the smallest loan amount of Rs. 100 extending upto Rs. 1 Lac with a smallest tenure of just 15 days to 2 years. This is an excellent opportunity of getting personal loan for low income earners.

Like P2PL, mobile wallet companies themselves do not offer quick cash loan. Rather they have a tie-up with third party creditors, who actually lend money. Wallets are basically middlemen. For e.g. Paytm has partnership with Home Credit India Finance Private Limited (HCIN) which offers loan instantly.

Credit Finance Companies

These are again non-banking financial organisations offering instant cash anytime, anywhere. The process is 100% online and paperless. Few of these companies are:

Home Credit India Finance Private Limited (HCIN): Offering quick loan of upto Rs. 50,000. So you can even apply when the money required is Rs. 10,000.

OptaCredit Fintech Private Limited: This NBFC also makes use of highly advanced technologies and offers short term loan ranging from Rs. 20,000 to Rs. 5,00,000.

Payme India: Another company offering short term loan starting from minimum Rs. 5000.

However one very important eligibility factor taken into consideration by all the above listed digital loan providers is the credit worthiness of the applicant. So even if you are a high income earner, there is a chance of loan application getting rejected because of poor credit score. However for a first time credit applicant, getting instant money through these lenders is highly recommended.

If you are a poor income earners and wish to take personal loan from bank, then here is the list of banks and minimum income required.

Documents Required

For getting quick credit, low income earners (or anyone) should furnish correct & valid documents for faster processing and quick approvals. Typically the documents required by salaried individuals are:

  • Last 3 months salary slip
  • ID proof
  • Current and permanent residential address proof
  • If the applicant is staying on rent, then he/she needs to produce utility bill in the name of the landlord in addition to home rent agreement, voter ID, driving license, etc. as asked by the lending institution

For self-employed or businessmen, the documents will vary.

Either the applicant has to upload documents on the website/app of the lender or executives from these companies will visit you for collecting the documents. This varies for each company.

How is the money paid by the cash loan providers?

Although the word “cash” sounds confusing but the money is never offered in cash. Once approved, the borrower gets money in his/her bank account via National Electronic Fund Transfer (NEFT) or any other payment transfer method.

How to apply for instant cash loan?

There are three ways to apply for fast credit when going through above listed lenders:

  • On website of the lender
  • On mobile app of the lender
  • Personally visit their branches. However with advanced technology, most of digital finance lenders do not even requires the applicant to visit their office for loan application or any other related work.

Digital fintech companies have made the complete lending process – loan application, verification, approval, disbursement, repayment, closure – speedy and hassle free. This saves money and time of both the parties i.e. loaner and loanee. And most importantly money can be used for online purchases, wedding, medical emergency, vacation, and others.

10 Reasons for Financial Problems in United States

If you have financial problems you are definitely doing something wrong with your personal finances either knowingly or unknowingly.

If you have certain income that allows you to lead a good quality of life, but you are still in debt and full of economic problems then you probably haven’t learned how to manage your money.

Economic problems are the result of bad financial decisions, ranging from not saving a portion of your income, believing that there is the perfect time to invest, making lifestyle too expensive and others.

Before knowing the causes of your financial problems, it is important that you recognize that the problem is with you; it is not the fault of the government, your parents, the business cycle or your boss.

It is your decision and action that has led you into this situation. So if you want to learn how to get out of debt and improve your economic life, you must recognize that the only person who can reverse this situation is the one reading this article.

The main reasons for financial problems

10. Not having an emergency fund

An emergency fund is your first line of defense against unexpected economic problems. And usually, these occur frequently.

Whether your car broke down, something in your apartment needs to be fixed, or a medical emergency for which you need medication.

What happens when an emergency occurs and you don’t have a way to cover it? Usually you have to take out personal loans.

If you want to start solving your financial problems, create an emergency fund with an amount equal to six months of your income.

Additionally, keep it in a place where you can dispose of it when you need it; it’s not about generating income with it, or investing your money from this disposable income in risky assets.

It’s all about having it available when you need it, so don’t think about its profitability.

9. Not having clarity about what will happen if you are not there

If you have a family, it is important to make it clear what will happen to your estate if you are not there.

A will, for example, can avoid many financial problems in your family, as they will know what they are entitled to, when and to what extent.

The worst diligence is the one you don’t do, and in the event of a lack of it, the government is in charge of making the distribution. Not an attractive idea at all.

8. Not having the right insurance

How many financial problems would you avoid if you had insurance? For many people, insurance is an unnecessary expense that impoverishes them.

Why not see it as an extension to your emergency fund?

Insurance is a kind of saving that helps and protects you from replacing and covering your most important material assets such as your house, car and even investments, to your life in the event of death or disability.

Insurance that can help you avoid financial problems includes insurance for your – car, home, life in the event of injury or death, and health.

Finally, don’t be “overprotected”. Many times, seeking good coverage ends up paying excessive amounts that are not worthwhile.

7. Marrying the wrong person

What economic problems are related to marriage? The first is to marry someone who wastes his/her money, and the second is to get divorced.

Choosing your partner is a crucial step in building wealth. And when your partner knows and applies the advice of good personal finance, it makes it much easier to reach your goals.

According to the Journal of Sociology, a divorce is a serious blow to any couple’s finances, as people who divorced saw their wealth decrease by 77%.

In short, as Napoleon Hill puts it in his book – Think and Get Rich, choosing your partner influences the level of wealth you achieve.

6. Not saving a portion of your income

To avoid economic problems, and to achieve financial prosperity you must do two things:

The first is to spend much less of the income you generate, and the second is to maintain this habit in the long run. I mean, doing it for a long time.

Why are you getting rich? Because you’re saving and investing this money. One of the keys is to start saving as soon as possible in your life, so that compound interest can improve on your finances.

How much should you save? At least 10% of your total income must be saved and over time increase this percentage.

You can invest this money in property, secure investments, a business you plan to start, or any other project that generates future income.

5. Buying a home that is too expensive

Many people dream of buying their own homes. As Thomas J. Stanley puts it, in his book Stop acting rich and start living like a real millionaire:

“If you’re not rich yet, but you want to become rich, never buy a house that requires a mortgage that’s twice your family’s annual income.”

In other words, never buy a home, with credit that will cause you to postpone the rest of your financial goals.

Many people get into debt beyond their ability to buy the home of their dreams. The problem with this is that you will end up living in debts giving you a nightmare full of financial worries.

4. Waiting for the perfect time to invest your money

Like many things in life, time ends up playing a fundamental role in the world of investments.

What are the determining factors in the return on your investments, or the money you have saved?

First is the amount invested. Second, the rate of return on your investments, that is, the profitability. And finally, the time during which they are invested.

Although the media and “experts” investors try to sell you the idea of getting rich overnight, the real factor that influences the construction of your wealth, and therefore the end of your economic problems, is the timing of your investments.

That’s why the longer you wait to find the right time to invest, the harder it will be to get the results you expect.

And the longer you wait to save and invest, the more you’re costing yourself.

3. Being over-indebted

It has been stated that “over a lifetime, the average American will pay over $600,000 in interest”

There is no other clearer way to show what debt can do to your quality of life and the financial problems it can cause you.

However, remember that there are good debts, those that allow you to generate other income and cover interest.

2. Not working to maximize your career

There are professional careers that will make you a millionaire faster than others.

It is said that the average American can earn two million dollars in his or her lifetime.

Now, if that same person works hard and increases his or her income by 8% per year, he or she could earn more than 3 million more than this figure.

While the figure may not apply to certain countries in Latin America, it does apply to finding ways to increase your income and avoid future economic problems.

So invest in your professional training, never stop learning and surround yourself with people better than you.

If you want to change jobs, never quit without another safe opportunity, and secondly, take care of your physical and mental health, as your ability to earn money depends on both.

1. Finally, spending more than you earn

It’s quite simple, financial problems occur when your spending exceeds your income.

The first step to being a millionaire and having wealth is to stop pretending to be one. Spending less than you earn is vital to financial progress.

Ask yourself what you spend your money on:

On the one hand, they can be small expenses: dining out, restaurants, clothes, cafés and other expenses that get bigger over time.

The other explanation is large expenses, such as an expensive house, cars, travel and poorly advised investments.

Most economic problems are due to how poorly they invest their money, not so much the amount they generate annually.

Simply when there are too many unnecessary expenses, there is no room to save and have financial projections.

India Post Payments Bank (IPPB): Features, Benefits, Services, FAQs

After the super successful, Pradhan Mantri Jan Dhan Yojana whose main objective was to provide one bank to every household in India, government of India is launching India Post Payments Bank (IPPB) targeting again the rural areas with more deeper penetration and range of financial services.

Objective of IPPB – Aapka Bank Aapke Dwaar

Provide banking and financial services especially to the unbanked and underbanked individuals from rural areas.

IPPB is nothing but a payments bank whose main objective is to provide financial services to the underserved individuals such as laborers, low income earning individuals, small and very small businesses and others.

For more details visit: https://www.ippbonline.com/

Features of IPPB

Launch Date: 21st August 2018

Type of Bank: Public Sector

Location: Services will be provided through 1.55 lakh post offices which would be acting as access points

Which employees will provide services: 3.0 lakh postal employees in every district, town and village

Government Share: 100%

Security: Transactions done through IPPB will happen on a secured technology driven environment.

Types of accounts individual can open: Four types of accounts can be opened broadly categorized as:

Savings Account:

  • Regular Account – Safal: Minimum deposit is Rs. 100
  • Basic Savings Bank Deposit Account (BSBDA) – Sugam: There is no minimum balance required.
  • BSBDA Small – Saral: There is no minimum balance required.

Current Account:

  • Current Account

Number of branches to be opened: 650. Two branches are already functioning.

Where are IPPB branches currently in operation: India Post Payments Bank (IPPB) branches are present in Ranchi and Raipur. And another 648 branches would be opened

Number of access points: 3,250. These access points will be located at post offices.

What services can be availed: It would be a digital bank and offer services similar to a normal bank such as:

  • Remittances (money transfer and receiving) within the same bank or other. Funds transfer can be done via IMPS, NEFT, AEPS, UPI and *99#.
  • Doorstep banking
  • Mobile banking
  • Phone banking
  • SMS banking
  • Missed call banking
  • ATM cum debit card
  • Mobile alerts
  • Branch banking

Maximum balance that can be kept: Rs. 1 Lakh in Safal and Sugam account. Rs 50,000 in Saral account.

Is it mandatory to have post office account for IPPB: No.

Other Benefits of India Post Payment Bank:

  • Government will give MGNREGA wages, benefits transfer such as gas and other subsidies, pension to retired government employees, doorstep banking etc.
  • Direct benefits transfer would be Aadhaar based
  • Money transfer would be simple & secure, instant and available 24×7
  • Individuals can use the IPPB app for making utility bill payments (telephone, electricity, etc.), mobile sim recharges.
  • Postal savings account will be linked to IPPB
  • Insurance, mutual fund, credit products, pension and other financial services can be availed through India Post Payments Bank.
  • Nominee can be added
  • 10,000+ doorstep service providers
  • 24×7 multilingual customer support
  • Joint account cannot be opened
  • There is no minimum balance required

How to contact IPPB

You can reach Indian Post Payment Bank through call and E-mail or visiting their branches

Call: 155299 (Existing Ranchi & Raipur Customers)
Call: 18001807980 (All New Customers)
Email: [email protected]

Gross Income Less than Rs.10,000 – Personal Loan from SBI, Canara & others

If you search your E-mail inbox or SMS inbox or think of how many call communications have happened for personal loan then it won’t be surprising that the count would be high. Definitely each one of us must have done numerous such communications either from lender or agencies who work on behalf of such lenders, forcing you to get personal loan at a lower interest rate and guaranteeing you with 100% approvals or pre-approved loan offers.

However what they don’t disclose is the eligibility criteria during the initial interaction. It is after submitting the application, you come to know that personal loan application is rejected.

One of the biggest factor for personal loan approval is the income (gross or net monthly) of the applicant in addition to documentation, employer, city, etc. In addition to this, there is one factor checked by the lender in the background without your consent is the credit score check done through credit rating agencies such as CIBIL, Experian, ICRA and few others which are prominent in India. However amongst all these factors, gross salary (or net salary) is the most important. This is because, repayment capacity of the applicant is judged on the basis of his/her income.

Here’s the table showing the gross or net monthly income required (less than Rs. 15,000 per month) for personal loan by various lenders in India, mainly the banks.

Name of Bank and Perosnal Loan ProductMonthly Income Required
State Bank of India (Xpress Credit)Rs. 5,000
Canara Bank (Consumer Loan)Rs. 6,000
Abhyudaya Co-operativeRs. 8,000 (after EMI payment)
Canara Bank (Canara Budget)Rs. 10,000
Canara Bank (Teachers Loan)Rs. 10,000
State Bank of IndiaRs. 10,000 (rural/semi-urban)
HDFC BankRs. 15,000
ICICI BankRs. 15,000
Axis BankRs. 15,000
Fullertoan loanRs. 15,000
Punjab National BankRs. 15,000
Dena Bank (Suvidha)Rs. 15,000

As you can see, State Bank of India offers personal loan for low income earning individuals with monthly net income of just Rs. 5,000. So gross income requirement in this case should be around Rs. 6,000.

Benefits of Personal Loan

  • Is the best solution for meeting emergency money requirement
  • It is easy and quick to get. Especially for working professionals it becomes easier due to regular monthly income, which lenders check while evaluating credit worthiness.
  • Tenure can be reduced.
  • It can be prepaid but with extra charges, in some cases.
  • Money can be used for any purpose.
  • These are unsecured meaning applicant does not have to keep any collateral with the lender. Although there are ways to get personal loan against securities.

How can low income earners stop themselves from falling into the personal loan trap:

Bank is at the profit: Remember that, personal loan is the most profitable business for the lender. This is because of the high interest rate charged in addition to the other charges. Although it carries highest risk for the lending financial institutions but that risk is balanced through high interest rate. And also banks have rights to recover money from the borrower through various means.

Should be the last option: Personal loan should be the last option for your money requirement because the EMI can hurt your budget badly. Before seeking the loan, try to ask for money from your friends/relatives and in return pay them interest which is small compared to the high rates charged by the banks over the money granted. This way both the parties at the advantage.

Never agree on paying less EMI in return of long tenure: This looks enticing initially but is very costly when you calculate the total money you have to shell out of your pocket at the end of the tenure. It is always recommended to end any credit line in a short time frame. Longer the tenure, higher the money you will end up paying.

Be aware of extra charges which are hidden in the loan documents: In addition to the EMI, there are many other fees charged by the banks. Although these fees are not hidden but are actually never disclosed at the time of application or are not paid attention by the applicant. Such fees further increases the cost of the loan. The charges include – processing fees, late payment, pre-payment, cheque bounce, etc.

Try other alternatives for personal loan: Apart from commercial bank, poor income earner can also approach co-operative banks for personal loan. Interest rate and income eligibility criteria is low compared to large banks. Peer to peer lenders is another solution for the loan.

Finally signing on dotted line means you are caught in the trap: Because after signing, it becomes extremely difficult to go and win the legal battle against big financial institutions. Chances of winning the legal case are actually very low. And in addition, you will have to pay money to the lawyer, etc.