India’s healthcare sector has been experiencing significant growth in recent years, driven by factors such as a growing and ageing population, increasing disposable incomes, and a greater emphasis on preventive and curative care. This presents an attractive opportunity for investors looking to capitalise on the sector’s potential. One way for investors to gain exposure to the healthcare industry is through Exchange-Traded Funds (ETFs).

Healthcare ETFs offer a diversified and cost-effective way to invest in a basket of healthcare-related stocks, rather than trying to pick individual winners. This article explores some of the best healthcare ETFs available to investors.

ICICI Prudential Nifty Healthcare ETF

The ICICI Prudential Nifty Healthcare ETF is a passively managed ETF that tracks the Nifty Healthcare Index. It provides investors with exposure to a diverse range of healthcare companies, from pharmaceutical giants to hospital operators. The fund has a relatively low expense ratio of 0.15%. Some of the top holdings in the fund include Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, and Apollo Hospitals Enterprise.

Nippon India Nifty Pharma ETF

The Nippon India Nifty Pharma ETF is one of the largest and most well-established healthcare ETFs in India. It tracks the Nifty Pharma Index, which includes a diversified mix of companies across the healthcare value chain, including pharmaceuticals, hospitals, and diagnostic services.

Motilal Oswal BSE Healthcare ETF

The Motilal Oswal BSE Healthcare ETF is another popular healthcare-focused ETF in India. It tracks the BSE Healthcare Total Return Index and has an expense ratio of 0.22%. It provides investors with exposure to a diverse range of healthcare companies, with some of the top holdings in the fund being Sun Pharmaceutical Industries, Cipla, and Dr. Reddy’s Laboratories.

Mirae Asset Healthcare Fund

The Mirae Asset Healthcare Fund is a newer addition to the Indian healthcare ETF market. It tracks the BSE Healthcare Index, providing investors with exposure to the broader healthcare sector. It holds stocks across sectors like hospitals, speciality chemicals, medical equipment, and diagnostics.

Factors to consider when choosing a healthcare ETF in India

Diversification: Look for ETFs that provide exposure to a wide range of healthcare companies, across different sub-sectors and market capitalisations.

Expense ratio: Choose ETFs with low expense ratios, as this can have a significant impact on your long-term returns.

Performance: Consider the historical performance of the ETF, as well as its risk-adjusted returns.

Sector exposure: Depending on your investment goals, you may want to focus on specific healthcare sub-sectors, such as pharmaceuticals, medical devices, or hospital services.

Fund size and liquidity: Look for ETFs with a large asset base and high trading volume, as this can help ensure that you can buy and sell units easily.

Conclusion

The healthcare sector in India presents an attractive investment opportunity for investors looking to capitalise on the industry’s growth potential. Healthcare ETFs offer a convenient and diversified way to gain exposure to this sector.

When choosing a healthcare ETF, it’s important to consider factors such as diversification, expense ratio, performance, sector exposure, fund size, and liquidity. By doing your research and selecting the right ETF, you can potentially benefit from the growth of the Indian healthcare industry.

UPI has revolutionised digital payments in India. The simple, secure, and instant transactions enabled by UPI have made it the preferred payment method for millions of Indians. The convenience of UPI apps, which allow you to pay directly from your bank account, has led to rapid adoption.

However, not all UPI apps are made equal. You must check some key features before deciding which one to use for your daily transactions. Choosing the right UPI payment app ensures seamless payments while keeping your money safe. Here are the top 5 features you must check in a UPI payment app:

Security and Privacy Measures

Security should be the foremost priority when choosing a digital payment app that stores sensitive financial information. Check what safety and privacy features the UPI app provides:

• End-to-end encryption for securing transaction data
• PIN protection for app access
• Secure bank-grade networks certified by PCI DSS standards
• Measures to prevent identity theft and fraud

You should also consider additional factors like transaction value limits, verification steps for sensitive actions like changing bank details, and session timeouts to log users out after idle time automatically.

Lastly, check the UPI provider’s data security policies regarding collecting user information. Your financial data deserves strict confidentiality, so look for data privacy assurance.

User-Friendly Interface

The best things are often the simplest ones. The easier a UPI app is to understand and operate, the better it is. Certain factors lead to a user-friendly interface:

• Clean, minimalist UI design
• Intuitive navigation and commands
• Step-by-step guidance for first-time users
• Quickly accessible menus and pages
• Ability to personalise settings

A good UPI payment app avoids complex menus and options hidden under layers of taps. Everything you commonly need should be accessible with the least number of clicks. Understanding transactions, money transfers, and settings modification should feel effortless.

Wide Range of Bank and Merchant Partnerships

The worth of a payment network grows with the number of people who use it. When choosing a UPI app, check how many major banks have enabled their services on it. Most apps today partner with multiple banks to allow users to add various bank accounts.

Besides banking partners, your UPI app should be widely accepted at merchant outlets for making payments via QR scans or linked virtual IDs. This is now easier to achieve as UPI builds further into offline retail. But do cross-check that your preferred app has rolled out merchant acceptance to cover daily use cases.

Lastly, inspect supported features like the ability to set reminders, share/request money and pay utility/credit card bills. UPI’s versatility can make your financial life much smoother through a single app.

Rewards, Cashback and Offers

Who doesn’t love some extra savings on online shopping or payments? Many UPI apps provide promotional rewards, cashback or discounts to delight customers and incentivise usage.

Paytm leads here with its generous cashback offers across diverse spending categories – online marketplaces, food delivery, movie tickets, etc. Other apps also run limited-time promotions on using preferred payment methods.

Customer Support and Dispute Resolution

Technology may transform banking, but it certainly raises unfamiliar issues for many customers. Your UPI app should offer robust customer assistance via channels like call support, chatbots, emails, social media handles, and FAQs/tutorials.

Check opinions on dealing with customer service for grievance redressal or a better understanding of the app’s functioning. The UPI provider should have personnel well-trained in handling common user problems during signup, transactions etc.

Your bank may primarily handle resolution for transaction disputes, but the UPI app should facilitate the process. See that they provide easy ways to raise disputes and dedicated teams to coordinate closure with requisite parties.

Conclusion

UPI has sizable long-term growth runaway in digital payments thanks to India Stack foundations like Aadhaar and bank account penetration. While multiple excellent UPI apps exist, small checks on core aspects like security, design, partnerships, and assistance will help pick the right fit. Keep assessing these parameters as UPI apps continually evolve on their customer experience.

The world of finance has undergone a significant transformation with the advent of digital banking apps. These technological marvels are convenient and incredibly efficient, saving users valuable time. In this article, we will explore five remarkable time-saving features offered by digital banking apps, each of which has revolutionized the way we manage our finances.

1. Mobile Check Deposits

Traditional banking often involved a trip to the bank to deposit paper checks, a time-consuming task. Digital banking apps have streamlined this process, allowing users to deposit checks via their smartphones. The app securely processes the transaction by simply capturing an image of the check with your phone’s camera. This eliminates the need for physical visits to a bank and empowers you to manage your finances effortlessly, no matter where you are.

2. Bill Payments and Transfers

Digital banking apps offer a seamless experience for bill payments and fund transfers. You can settle bills and transfer money between accounts without writing checks or visiting an ATM. The app frequently stores payee information, making future transactions swift and efficient. Moreover, recurring payment options allow you to set up automatic bill payments, reducing the time spent on financial chores.

3. Instant Account Balance Check

Digital banking apps have bid farewell to the era of waiting for monthly paper bank statements to check your account balance. Instead, these apps provide real-time balance information at your fingertips. You can monitor transactions, track spending, and ensure you always have a clear view of your financial situation without visiting a physical bank or ATM. This not only saves time but also minimizes the risk of overdrafts.

4. E-Statements

Digital banking apps offer electronic versions of account statements known as e-statements. These documents are easily accessible through the app, downloadable, or even sent via email. E-statements not only save paper but also save you time. You no longer need to await paper statements in the mail, and you can quickly search for specific transactions or statements, simplifying reconciling your finances.

5. Cardless ATM Withdrawals

Many digital banking apps now support cardless ATM withdrawals, a feature that enhances convenience and security. With this functionality, you can initiate a cash withdrawal at an ATM using your smartphone, eliminating the need for a physical debit card. Whether you’ve left your card at home or prefer not to carry it, this feature allows you to access your funds conveniently and securely.

Conclusion

Digital banking apps are not just about convenience; they epitomize efficiency and time-saving. They have democratized banking, making it accessible and manageable for individuals. With the time-saving features of mobile check deposits, instant balance checks, e-statements, cardless ATM withdrawals, and effortless bill payments and transfers, these apps empower users to take charge of their financial lives. You can now bank whenever and wherever you choose with IDFC FIRST Bank, leaving you with more time for the things that truly matter.

Financial goals can be an invaluable way to stay on the path toward your financial objectives, like creating an emergency fund and paying down debt.

Many 50-year-olds are at their peak earning period and have plenty of time to save for retirement or pursue other long-term goals, such as purchasing a home, paying tuition fees, or contributing to charitable organizations. A goals account can help but the following are also very important.

1. Build an Emergency Fund

An emergency fund can help you weather life’s storms without incurring debt, according to experts. They advise saving an equivalent of three to six months’ expenses in your rainy day savings account. Start by reviewing your budget, which should include regular costs such as insurance, utility bills, and groceries as well as discretionary spending such as streaming services, dining out, impulsive Amazon purchases, or vacations which could be reduced each month so more money goes toward your savings goal.

If you’re having difficulty saving for emergencies, set small goals and work your way towards them. Achieving these mini-goals can give you the motivation to continue and eventually hit that larger savings goal. Other ways of saving may include buying generic brands, meal planning ahead of time, and downgrading cell phone plans as well as working overtime or having no-spend months or working overtime hours. Finally, set an automatic transfer from each paycheck directly into savings so it doesn’t get spent elsewhere accidentally.

2. Earn a Higher Salary

Setting financial goals can be an excellent way to change your mindset, habits, and ultimately your life. But it’s essential to set SMART financial goals that meet both current conditions and prioritize needs.

An abstract goal like “raise credit score” might not provide sufficient incentive to work toward it; by contrast, setting specific and measurable targets like “increase credit score from 680 to 760 in 12 months” would make your goal more measurable and obtainable.

Earning a higher salary can help your finances and expand the amount of money available for spending, helping pay off debt or save for future goals. A steady source of income such as an increase in salary also can assist with budget-busting expenses like aging care costs.

3. Buy Your Own Home

Before making the leap to homeownership, it’s essential that you carefully assess your portfolio and consult a trusted financial advisor. SmartAsset’s free tool connects you with financial advisors in your area who can help determine if now is an opportune time to purchase a home and achieve other financial goals, like saving for retirement. Purchasing a home should only make financial sense when planning the right budget is established and followed. Doing this ensures you don’t spend too much of your income on housing alone and risk becoming house-poor; rather, this will allow enough left over for other expenses like utilities and maintenance without draining away all your savings.

4. Save for Retirement

Calculating how much to save for retirement and your goals account can be a complex and time-consuming undertaking, though some general guidelines exist such as saving two times your annual salary by age 35, or using the 25x rule, which estimates future expenses and multiplies them by 25 in order to calculate what amount needs to be set aside in order to live comfortably during retirement.

Singletary suggests that putting long-term goals as your top priority may make achieving them simpler. This includes creating an emergency savings account, building up an investment portfolio, and paying off debt before setting new savings targets.

Attain your savings goals faster by working additional years to increase your income and savings for retirement. Once you’ve done this, cut down spending and save more quickly to reach long-term goals more quickly – living off less than what you earn will free up more of your funds for investing and paying down debt.

Money is a critical aspect of daily living as it helps in the payment or purchase of things we need daily. The lack of cash makes life difficult since meeting daily needs becomes a struggle. In extreme cases, being unable to meet everyday needs makes it even more stressful, especially if you are the breadwinner in the family. Sometimes, you need more than the money you make in a month to cater to your monthly needs for one reason or another, making it necessary to acquire extra cash to fill in the gap. Different ways to get extra money include bank loans, online applications, borrowing, and cash advances.

Loans require several credit checks to ensure you are eligible for the loan and can make payments with no records of defaulting. The checks delay the process and limit your chances of successfully getting the loan, and this works to your disadvantage since you need the cash urgently. Dave provides a cash advance service with multiple benefits, making it a suitable option for your money needs. The different benefits of the cash advance provided include the following:

Quick cash

In most instances, when you decide to take out a loan, it means that you have an emergency expense that you can’t meet at the moment and need to meet urgently. The urgency of the situation is the one that pushes you to take a loan since it’s not possible to wait until you get the next paycheque to have it sorted. If there are any delays in the loan acquisition process, then this causes you further stress. Cash advance has a turnaround time of five minutes or less and the capability of getting up to $500. The fast loan acquisition process works perfectly to help you meet your urgent money needs without struggling.

Easy application process

The loan application process tends to be stressful, given the amount of documentation that must be filled out to get the applicant’s information. Additionally, the scrutiny process takes time to ascertain your creditworthiness. Dave’s cash advance has an easy application process that takes less than five minutes to get approved. The process includes downloading the application, linking your bank securely, and sending money to the Dave spending account. The quick and easy process makes it possible to get extra cash to solve your needs.

No credit checks

Credit checks help determine how credible you are to access a loan, which is time-consuming and minimizes the possibility of qualifying. You must have a good credit record to get the loan, and any credit issues automatically make your loan application denied. Dave’s cash advance provides you with extra cash with no credit checks, making it easy to get the loan quickly and without much struggle. Additionally, the process is simplified since there’s no need to fill out credit check documentation, further simplifying the application process.

No late fees

One of the things you consider when taking a loan is the charges involved, like the processing fee, interest rates, and late fee charges. The various charges enable you to plan well and decide whether to proceed or not with the loan. Lateness in paying a loan could sometimes be more intentional, but due to unforeseen circumstances, sometimes this leads to hefty fines in the form of late fees. Dave’s cash advance has no late fees, which further makes them suitable for your quick cash needs and makes it easy to clear the loan without any additional amounts.

Different uses of cash advance

Different individuals take cash advances for varied reasons, depending on their individualized needs. The need determines the amount one requires and applies for, and its quick and easy access makes it easy for one to meet their needs and live stress-free. Some of the different uses of the Dave cash advance include the following:

Food and groceries

Basic needs within the household are vital for the healthy living of everyone and must always be met. Eating healthy and well helps prevent various health issues that require more money for medical bills. An analysis of Dave’s cash advance members shows that 56% of the applicants use the money for food and groceries, which is the majority. This further highlights the importance of having enough food within the household to take care of yourself and your household.

Gas

Mobility is critical in helping you move around from one place to another for work or running personal errands. To be mobile, you need gas for your vehicle, which gives you the ability to run your errands. Lack of money for gas hinders your movements, and that’s where cash advances come in to fill in your money shortages and ensure that you have enough cash to buy gas.

Car payments and insurance

Your car helps you to get from point A to point B, and the payments need to be up to date to avoid it being repossessed or having issues with the law. You need to meet the car payment deadlines consistently, and if you can’t make the payments when they are due, Dave’s quick cash advance comes as a solution, enabling you to avoid missing your expenses, which would further affect your credit score.

Rent and utilities

Having a roof over your head is vital, giving you a place to lay your head after a long day at work or running errands. Meeting your rent and utility bills gives you the desired comfort within the home and minimizes the possibility of foreclosure. Dave’s cash advance provides you with the extra cash to meet your rent and utility bills if you run out of money.

Conclusion

A cash advance gives you the extra cash to cater to emergencies or needs. The cash advance has different benefits, which provide you with the financial capacity to take care of your different needs like food and utilities, gas, rent, and utilities. The quick access to the cash advance and high limits make it a suitable option for anyone with a cash advance need.

Entering the world of real estate investment, particularly multi-family housing, is a path paved with potentially lucrative opportunities. These properties offer a steady income stream, benefit from economies of scale, and can provide a robust return on investment. However, one critical aspect to consider when venturing into this real estate segment is financing. Without a strategic financial plan, your investment journey might face unnecessary challenges. In this article, we’ll outline the starting points you need to consider when financing a multi-family property investment.

• Understanding Multi-Family Financing

In essence, multi-family properties are residential buildings designed to house multiple separate families in distinct units. They range from duplexes, triplexes, and fourplexes to larger complexes with hundreds of apartments. As with any real estate investment, buying multiplex housing typically requires a significant capital outlay. That’s where financing comes into play.

When planning your financing, start by understanding that lenders typically view multi-family properties as less risky than single-family homes. Why? Because even if one tenant leaves, the property still generates income from the remaining units. That means, while financing a multi-family property might seem daunting due to the larger loan amount, the perceived lower risk can result in more favorable loan terms.

• The Search for the Right Lender

Selecting the right lender is a crucial starting point in financing your multi-family property investment. Traditional banks, private lenders, and government-backed entities all offer different types of multi-family loans. Your choice of lender will largely depend on your specific needs and circumstances, so thorough research is key.

Before you approach a lender, prepare a comprehensive financial profile, including your credit score, down payment, income, and a detailed business plan outlining your investment strategy. Having this information ready will not only streamline the loan application process but also improve your chances of securing the best possible loan terms.

• Types of Loans

Financing options for multi-family properties are diverse. Conventional mortgages, government-backed loans, and commercial loans are all viable options, each with their own pros and cons.

Conventional mortgages are a good fit if you’re buying a smaller multi-family property (up to four units) and plan to live in one of the units. However, if you’re investing in larger properties or won’t be an owner-occupant, commercial loans or government-backed loans may be a better fit.

Government-backed loans offer competitive rates, longer terms, and higher loan-to-value ratios. They can be especially beneficial for first-time investors or those with less-than-perfect credit.

1. Navigating the Down Payment

Down payments for multi-family properties are usually higher than for single-family homes, typically ranging from 20% to 25% of the property’s price. However, if you plan to live in one of the units, you might qualify for lower down payment options through an CMHC loan or other owner-occupied loan programs.

To save for your down payment, consider strategies such as setting aside a certain amount of your income each month, leveraging a home equity line of credit on your current residence, or pooling resources with a partner. It’s important to prepare yourself for a proper down payment when investing in such property.

Conclusion

Financing a multi-family property investment is a significant undertaking, but with the right strategies and resources, it can be a fruitful venture. Start by understanding the nuances of multi-family financing, select the right lender, explore various loan options, and strategically navigate the down payment process.

The journey may seem complex, but the reward—a steady income stream, increased diversification, and the potential for significant ROI—can make it well worth the effort. With due diligence, sound financial planning, and perhaps some professional advice, you can unlock the potential of multi-family housing and set yourself on a path to real estate investment success.

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• Acheter des propriétés multilogement à vendre

• Préparez-vous à un acompte approprié

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There are two investment modes for a mutual fund investment. The two modes are the lumpsum investment mode and the SIP (systematic investment plan) mode. By opting for the SIP mode, you can invest in your mutual fund regularly every month. On the other hand, you invest in your mutual fund in full in the lumpsum mode. Whether a lump sumor SIP investment, have a clear idea of the investment amount. Use a SIP calculator if you want to determine your required investment amount.

What is a SIP calculator?

A SIP calculator is an online mutual fund calculator that gives you an idea of the returns your portfolio could enjoy when you invest in SIP. They are a popular investment mode among young professionals as SIP investments do not require full-time payment like the lumpsum mode. However, they do not provide the exit load and expense ratio. The calculator will calculate the estimated returns by using the following formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i).

In the formula above:

• M =The amount you could receive on maturity
• P = The amount invested
• N = Payments made
• I = Rate of interest

How do SIP calculators work?

The Systematic Investment Plan Calculator helps you find different investment-worthy products within your affordable range. It does so by using data inputs of your details.

What are their benefits?

Here are the six advantages associated with SIP calculators:

• Instant calculation:

Systematic investment plan calculators are easy to use. Just fill in some details and get the required investment amount instantly.

• Personal schemes:

SIP calculators provide personalised results. A SIP calculator shows different plans when you input personal details. A personalised scheme will cater to your investment capabilities and risk appetite.

• Accommodates small amounts:

You can also invest in lower amounts if you do not have enough money. These calculators can also help you find products in a lower price range. Just set a lower limit on the calculator. You can later opt for expensive investments from the returns of small investments.

• Up-to-date investment options:

Systematic Investment Plan Calculators consider real-time stock values for SIPs. So, you can see the present condition of the market. These calculators also provide the projected growth of each mutual fund scheme based on its past performance.

• Systematic approach:

These calculators have a systematic approach to systematic investment plans as they provide insight into how to invest in SIP. You also get an idea of ways to diversify your investments, investment amount, and duration by using SIP calculators.

• Free-of-cost:

SIP calculators are free to use, and they are easily accessible online. You can use these calculators regardless of your location, and there are no restrictions on the number of times you can use them.

Conclusion:

Systematic investment plan calculators will help you choose the best SIP that can help you increase your wealth. You can learn the different investment possibilities for your SIP requirements. These calculators help you create the perfect SIP mutual fund portfolio.

Why Do Online Auto Insurance Comparisons?

While purchasing auto insurance, you should look for a policy with a high benefit level at a reasonable price. As a result, you should evaluate various policies to compare their features, costs, and suitability. Insurance comparison tools are available online and offline. To locate the coverage that satisfies your needs, you can compare car insurance policies online quickly, easily, and conveniently.

Here are a few advantages of online car insurance policy comparisons.

• Worth the money

You can determine if car insurance coverage suits your budget by comparing policies based on how much they cost. When compared to a Comprehensive plan, a third-party policy is less expensive. Yet it also provides less protection than a Comprehensive policy.

• Insurance choices

You can better comprehend the characteristics of a policy that might provide the best suitable coverage by comparing them. When compared to a Comprehensive policy with the Zero Depreciation add-on, a Third-party auto insurance policy provides the least level of coverage. You will have a comprehensive understanding of the coverage provided by each type of auto insurance policy, thanks to the comparison.

• Superior services

You may learn more about the services included in each policy by comparing different auto insurance plans. It is crucial to take into account the post-purchase services offered by various insurance companies.

Various Forms Of Auto Insurance Policies

• Vehicle Insurance for third parties

Comparatively speaking, a Third-party policy provides less coverage than a Comprehensive policy. It only protects you in the event that you cause injury to someone or damage to their property or vehicle while operating your covered vehicle. You cannot, however, file a claim for harm done to your car. The Motor Vehicles Act of 1988 makes purchasing third-party automobile insurance a requirement.

• Comprehensive auto insurance

In contrast to a third-party policy, comprehensive coverage will cover both own damages and third-party damages. This means that Comprehensive coverage will pay for damages to your car in the event of a collision, fire, natural disaster, man-made disaster, or theft.

essential criteria for comparing auto insurance policies

Understanding the criteria to compare various policies is necessary before you start doing so:

• Price: The cost of replacing or repairing a car might be high. Do not skimp on the policy’s features, even when the price is the main consideration. Browse around to compare pricing provided by various insurers. But don’t forget to consider the covers you require. Choose car insurance that fits your needs and your budget.

• Coverage: Look for add-ons like Zero Depreciation, Return To Invoice, Roadside Assistance, etc., in addition to the essential coverage. Before purchasing insurance coverage, you must be completely aware of your driving practices.

• Customer reviews: You do not want to spend money on vehicle insurance just to find yourself unprotected in trying circumstances. It is crucial to read customer evaluations and educate yourself on the claim settlement ratio. Also, spending some time researching the post-sale services offered by the business may be helpful.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

A current account is a bank account commonly used by businesses to manage their day-to-day financial transactions. Businesses need to open a current account when they are looking to manage their finances effectively and efficiently. However, opening a current account is not always necessary, and it’s important to understand when it’s appropriate.

What is a current account?

A current account is designed for businesses with a high transaction volume and to manage their finances more efficiently. A current account offers features such as overdraft facilities, cheque books, debit cards, and internet banking facilities, making it easier for firms to manage their cash flows.

When should a business open a current account?

Here are a few reasons when a company should consider opening a current account:

• High volume of transactions

A current account is an ideal option if your business has a high volume of transactions. Current accounts provide unlimited transactions, meaning you can deposit and withdraw money as often as you need. This makes it easier for businesses to manage their finances and cash flows.

• Need for an overdraft facility

An overdraft facility is a feature offered by current accounts that allow businesses to borrow money from the bank up to a certain limit. This can be useful for businesses that experience occasional cash flow problems. It is also helpful for businesses that have seasonal fluctuations in their sales, as they can use the overdraft facility to bridge the gap between payments received and payments due.

• Multiple payment methods

A current account allows businesses to make and receive payments in multiple ways, such as cheques, debit cards, and online banking. This flexibility makes it easier for firms to manage their finances and provide payment options to their customers.

• Business growth

As a business grows, it needs to manage its finances more effectively. A business current account provides features such as online banking, which allows businesses to track their transactions and manage their finances more efficiently. It also allows automated payments, making it easier for businesses to pay their bills and manage their cash flows.

• Business structure

If you have a registered business, it is advisable to have a current account in the business’s name. This will help you keep your personal and business finances separate and make managing your taxes and other legal obligations easier.

Legal obligations

There are certain legal obligations that businesses need to comply with, such as filing taxes and maintaining proper accounting records. A current account can help businesses fulfill these obligations by providing a record of all transactions and making it easier to manage finances.

Benefits of having a current account

Easy management of finances: A current account makes it easier for companies to manage their finances as it provides a single platform to manage all their financial transactions. Businesses can easily track their expenses, make payments, and receive funds, making it easier to track their cash flow.

Access to credit: A current account can also give businesses access to credit, which can be essential in times of financial stress. Banks and financial institutions are more likely to offer credit facilities to businesses with a current account, as it gives them a better understanding of the business’s financial health.

Ease of international transactions: If a business deals with international transactions, having a current account can be particularly useful. It provides businesses with access to services such as currency conversions and international wire transfers, which can be expensive and time-consuming to do through other means.

Conclusion

A current account is essential for any business to manage its finances effectively. Choosing the right current account for startups or business can make a significant difference in managing cash flow and ensuring that all financial obligations are met on time. If you are a business owner, it is advisable to research the various options available for current accounts and choose the one that best suits your business’s needs.

Loan apps and credit cards have made financing easier than ever. Today, you can easily avail instant cash through a loan app or make new purchases using a credit card. But to conduct these borrowing and lending in a safe environment, lenders rely on the credit bureaus to give a detailed insight on your credit behaviour. These credit bureaus maintain a detailed record of your borrowing history, a record of your repayment behaviour, missed instalments, closure of old loans, details of your credit card usage and more. Based on all these details, the credit bureaus assign you a credit score ranging from 300 to 900. This score plays a very important role when you apply for unsecured loans like an instant loan.

There are four major credit bureaus in India – CIBIL, Equifax, Experian, and CRIF High Mark. The score assigned by Experian is called as Experian Credit score and the score assigned by the CIBIL is called a CIBIL score.

About Experian and CIBIL

A popular CIC in India, Experian is a Securities and Exchange Board of India approved credit bureau. It is the first company to receive its CIC license under the Credit Information Companies Regulation Act (CICRA) 2005. The CIC assigns credit score to both individuals as well as organisations based on their credit history records that it collects from across institutions.

Now, while Experian received its first CIC status under the mentioned Act of 2005, CIBIL is the first credit bureau in India. It is one of the most widely used credit bureaus for the purpose of accessing credit score of individuals as well as businesses. With credit records collected and maintained for over a 1,000 million customers, including businesses and individuals, TarnsUnion CIBIL is also the most recognised one in India.

The Experian and CIBIL Credit Score – A Common Ground

Before moving into the differences between the two bureaus, you must know the common points. The most important aspect is that the credit score issued by both the CICs span between the same range of 300 and 900. Also, the suitable credit score range for borrowing remains between 700 and 900 for both.

When availing a loan through a loan app a minimum score is not mandatory, but a high score from either bureau works in your favour. For borrower understanding, it is crucial to know that most popular loan apps rely on CIBIL for this score, especially for individual borrowings, as it is the widely accepted bureau.

Know How Experian Credit Score Differs from a CIBIL Score

1. Object of credit score issue

The CIBIL score is issued with the objective of determining the repayment capacity of the borrower. Alternatively, Experian issues the score for financial position determination of the entity. This objective also impacts their overall acceptability in the Indian context of lending and borrowing. For instance, you may thus find lending platforms like loan apps that rely on CIBIL score for determining your repayment capacity.

2. Calculating parameters

Even though the score ranges issued by the two bureaus are the same, the parameters they use for score calculation differ. Experian relies on the likes of loan record, current credit information transactions, account balances, etc., to determine the score. For CIBIL, these parameters vary across debt to income ration, credit utilisation ratio, credit mix availed, repayment history, and past repayment defaults to compute the score.

3. Acceptability

Given that CIBIL has its origin in India even though backed by the American company TransUnion, it is widely accepted as a CIC here. It was also the first CIC of India and has most financial institutions as its members. Contrarily, the exposure of Experian at this scale is missing, thus restricting its acceptability.

4. RBI approval

Credit score from CIBIL has also received the RBI approval for the purpose of assessing borrowing profiles. The Experian score has not received any such approval.

Conclusion

CIBIL score as well as Experian score are both credit scores assigned by these credit bureaus that help lenders assess the risk associated with your loan application. Though most of the parameters that both bureaus rely on to calculate the credit score are same, there are a few striking differences.

CIBIL uses the Empirical method to calculate your credit score, while Experian uses the FIFO technique to calculate the credit score. National institutes rely on the CIBIL score to take lending decisions, while, many global financial institutes rely on the Experian score.

Despite the differences, both CIBIL score and Experian score have distinct roles to offer for lenders as well as borrowers. Many lenders consider both the scores, or take an average of both the scores to analyse the risk associated with your credit profile.