The Difference Between A Cumulative and Non cumulative Fixed Deposit

The Difference Between A Cumulative and Non cumulative Fixed Deposit

Cumulative fixed deposits can be described as FDs where the interest pay-out is available only on maturity of the FD. In these fixed deposits, there is no periodical interest return given to the investor on a monthly, quarterly or even annual basis. The interest you earn on cumulative FDs is compounded annually. This interest accumulates over the tenor and can be withdrawn at the end of the tenor, along with your original principal investment. Hence, a cumulative FD is perfect for investors who do not seek immediate returns and wish to acquire a lump sum amount at the end of the tenor.

A non-cumulative FD works on the opposite principle. In these fixed deposits, the interest payments are made to the investor in a periodical, steady, and timely fashion. This makes it the most sought-after investment option by retired investors, or those who seek frequent returns. Investors in this option usually get interest payments on a monthly, quarterly, or annual basis. In this scheme, investors are allowed to decide when they wish to receive their interest payments.

The Wins of Cumulative FDs

Now that you have understood what a cumulative fixed deposit is, here are some of its benefits:

The Highest Possible Returns: Since the interest rates in the cumulative fixed deposits are compounded and accumulated, you receive a matured amount that is high. The final amount comprises of the interest earned along with the principal. This is usually a significant amount and can be used for any purpose of your choice.

Cons of Cumulative FDs

  • Absence of Periodic Returns: If you are an investor in cumulative deposits, you are not eligible for periodical returns that could be acquired on a monthly or quarterly basis and can otherwise be useful for paying bills or EMIs.


Also Read: Documents Required and Eligibility Criteria For Starting a Fixed Deposit


The Wins From Non cumulative FDs

  • Offer Regular Interest Payments: This investment option offers you frequent interest payments on a regular basis. Here, investors can receive their interest payments conveniently on a monthly, three-monthly, quarterly or even yearly basis.

Cons of Non-cumulative Fixed Deposits

  • Do Not Offer Growth to Interest: Unlike cumulative deposits, these deposits offer interest payments. Hence, in this case the interest does not get compounded and accumulated. The final sum you receive would be lesser as compared to cumulative deposits.


On the whole, both types of fixed deposits come with their share of unique features and drawbacks. You can choose the one that suits your investment needs the most. For example, if you seek lump sum returns without frequent interest pay-outs, go for cumulative fixed deposits. If you seek frequent or periodic interest returns on your investment, go for non-cumulative FDs.

Bajaj Finance offers high interest Fixed Deposits with interest rates that go up to 8.10%. With easy online or offline application and high safety ratings, these FDs provide risk-free growth of your hard-earned savings.

Calculate FD Maturity Amount

Invest in Fixed Deposit

BL July-18_June 10_All you need to know about SME loans in India

All You Need To Know About SME Loans In India

SMEs play an important role in economic and social growth of markets, particularly in developing countries. In India, lenders are offering new and innovative products under the umbrella of SME finance to help small businesses find their footing and reach new phases of growth.

Moving with the times, most businesses, especially SMEs (small and medium-sized enterprises), need to be more dynamic when it comes to evolving and adapting in order to cater to market requirements. Lenders of SME loans in India too are understanding the changing demands of these small and medium businesses, and are offering SME loans to meet their financial requirements, be it for infrastructure funding, working capital requirements, inventory purchases, equipment financing, expenses for expanding operations, and more.

No Need To Pledge Any Collateral As Security

The catch phrase in the lending market today is ‘easy funding’ to meet the growing need of SMEs. Further easing the process of taking a loan for an SME is the lack of collateral requirements, allowing you, the owner, to be able to use all the assets of the business to their full potential. This also helps to reduce the time of loan approval as no collateral needs to be appraised in the process. The strength of the repayment then comes from the income being generated by the SME rather than the collateral provided.

The Addition Of Innovative Financing Facilities Like Line Of Credit

Innovative funding products that benefit small and medium companies have also been introduced by lenders, and the ‘Line of Credit’ facility offered by Bajaj Finserv is one of the most significant. A Line of Credit or a Flexi Line allows the SME to get approved for a certain level of credit. The SME can use any part or all of the credit any time during the tenure of the loan and pay only the interest component on the portion of the credit used every month. The principal used needs to be repaid only at the end of the tenure of the loan. Flexibility and customisation form the cornerstone of this method of funding, allowing SMEs the freedom to use as much financing as they need without having to pay interest on the unused loan.

High Loan Amounts With Quick Approvals

Whether it is short term, medium term or long term loans, small and mid-sized companies can get loans up to Rs.30 lakh to fund their growth. With no restriction on the use of the loan, you can use the finance for working capital, expansion of your business, buying new machinery, acquiring or setting up infrastructure, hiring talented staff or anything else you need to grow your business. The quick online application process is an added advantage too, allowing business owners to focus on work rather than worrying about applying for financing.

It Is Easy To Qualify For SME Finance

The eligibility criteria for an SME loan are fairly broad, and include the following professionals and business entities:

  • Professional practices run by self-employed professionals such as allopathic doctors, chartered accountants, company secretaries, architects, etc.
  • Self-employed professionals such as service providers, retailers, traders, manufacturers etc.
  • Private limited and closely held limited companies are covered for SME loans, as are partnerships and limited liability partnerships. Other SME profiles may also be eligible based on their business and the lender’s criteria.

The documentation for SME lending is simple and generally revolves around the following:

  • KYC documents, which are similar to the ones needed when you open a bank account.
  • A certificate of proof of business.
  • Financial documents, which will help the lender establish the amount of loan that can be extended based on income generated.
  • Bank statements for three to six months to prove repayment ability.
  • A passport sized photograph of the owner of the business.

Other documents may be called for depending on the lender as well as to support the aforementioned documents.

Also Read : How Impactful Digital Technology Is On SME

An Overview Of SME Finance

SME lending in India has changed drastically over the years. Once upon a time, SMEs were seen as a burden on the lender and every lending institution preferred to extend loans only to large corporate entities. With the changing business landscape, where once-small online retailers are joining the billion-dollar club and investments are pouring into SMEs which show promise, lenders too are supporting SMEs to spread their wings.

In India, where lenders are fighting to offer their best financing for SMEs, consider taking a Business Loan from Bajaj Finserv, which offers innovative and low-cost funding for small and mid-sized companies. Bajaj Finserv offers competitive interest rates with no collateral requirements, minimal documentation, flexible repayment options, an online application process, and the transfer of money within 48 hours of approval.

Apply for Business Loan Calculate Your Monthly EMI

BL July- 10_5 ways in which a small business loan helps take your company to the next level_ed

5 Ways In Which A Small Business Loan Helps Take Your Company To The Next Level

A small business loan is the ideal way to boost the growth and profitability of your organization.

Every business feels the eventual need to scale up, and this requires a considerable amount of easily accessible funds. Whether you’re a start-up looking to make your mark in the business world, an SME planning to attract new clients, or an established player dealing with the volatile nature of seasonal cash flow, a small business loan can help stabilize your company financials in the most effective manner.

Why You Should Opt For A Small Business Loan

As a small business owner, the most important factor when acquiring funds is fast and comfortable access. You can never be sure when you might experience the immediate need for funds. For example, what if you have two machines in your company, and one of them shuts down unexpectedly due to some technical errors? In this case, the potential damage to the company’s output is much more significant for an SME when compared to a large organization, because the latter might have hundreds of machines, which can make up for the production losses of a single broken machine. For the SME, however, it becomes imperative to immediately restore the machine to working condition, or face serious loss in output and business.

A small business loan is customized to address such specific requirements of small business enterprise owners. Since fast access to funds in case of emergencies is a necessity for them, Bajaj Finserv small business loans come with a 24-hour approval feature. In this way, the business owners can resume smooth operations with minimum losses.

This is just one way of utilizing your small business loan effectively. There are many other ways in which a small business loan can help you and your business prosper.

Also Read : Requirements For Getting A Small Business Loan

Making The Most Of Your Small Business Loan

As a small business owner, you are constantly in need for funds in order to ensure the smooth functioning of your business. Here’s a few ways you can make your business loan work wonders for you:

  1. Buying Equipment or Inventory

One of the most popular reasons for taking a small business loan is buying equipment for the company. Small business owners may not require bulk purchases of equipment or the requisite office inventory, but they do need to own a few sets to facilitate production and administration. Whether you are looking for an additional piece of heavy equipment or a dozen computers for your workforce, a small business loan can be the solution for you.

  1. Hiring Qualified Staff

The only way a small business can prosper is through an effective and passionate team. Unless each member of your staff is competent at his or her job, you cannot ensure the smooth running of your business. This requires employing an experienced and highly-qualified staff, who will only work for you if you offer the right salary. With a small business loan, you gain the freedom to recruit bright and dedicated professionals.

  1. Creating Your Website

In today’s day and age, maintaining an attractive online presence is an indispensable need. This need can only be fulfilled by hiring experienced website development professionals, who will demand a significant fee for their expert services. A small business loan can come in handy for this requirement.

  1. Marketing Your Brand

Although your very own website will boost your company presence in the market, you will still require a competent marketing strategy if you wish to separate yourself from the host of competitors offering similar products and services. Making use of your small business loan will enable you to execute effective marketing strategies that guarantee results.

  1. Expanding Your Operations

When you are a small business owner, it is understandable to have one eye on the horizon and make solid expansion plans. The only way you can facilitate these plans is with the availability of funds whenever required, which is where a small business loan can help immensely. Whether it is to rent a larger working space, get more skilled workforce, buy more machinery, own more inventory or upgrade your everyday technology, you can use a business loan to scale up and grow.

Also Read : Planning To Get A Small Business Loan? Take Care Of The Three Cs

With a Small Business Loan from Bajaj Finserv, you gain the ability to acquire funds quickly and at low interest rates.

Apply for Business Loan Calculate Your Monthly EMI

How Personal Loan can Provide you Tax Benefits?

Personal Loans are unsecured loans, ideal for situations when you need funds but don’t have a property or security to pledge for the amount. Generally, Personal Loan is not taxable and you can claim the income tax benefits on Personal Loan, if you have used it to acquire, construct, repair, or reconstruct a property. As you are not providing an asset as security, Personal Loan interest rates might be higher than the interest charged for secured loans. However, it is easy to apply and get approved for Personal Loans if you are salaried. Self-employed individuals can also avail of Personal Loans if they can provide proof of income from their business. If you’d need funds for a trip or business expansion, take a look at the Personal Loan with online account access being offered by Bajaj Finserv.

Loans are not considered a part of your income, so the Personal Loan loan will not be considered as a taxable fund when you are filing IT returns. This means that you won’t be paying taxes on Personal Loans. However, the loan has to be from a valid source like a bank or other financial institution as loans from unknown sources may be considered as income while computing your taxes.

Also Read : Get Tax Benefits with A Personal Loan for Education

You can actually claim tax benefits on Personal Loans in some cases. Regardless of the loan’s source, if you can prove that you have used the loan for a valid expense, you can actually use your Personal Loan for tax saving and claim tax deductions on the interest paid on the loan.

Financiers like Bajaj Finserv offer Personal Loans that are quick and easy to apply for and have an instant approval policy.

Your House and Your Personal Loan

Employing the Personal Loan for your house can do wonders if you are aiming to avail of tax deductions. Section 24(b) of the Income Tax Act provides relief to home buyers, giving them tax deductions on loans taken to buy a residential property or to renovate it. If you use the Personal Loan towards the down payment for the purchase of a house, then you can claim tax exemption. If you use the loan amount to pay for home repairs, renovation, or for reconstruction, all these are also considered valid expenses for tax deduction.

You cannot claim deduction on the principal amount of the loan, but the interest paid on the loan can be utilized for tax deduction. If you are living in the house on which you spend the money taken as loan, you can claim tax deduction for interest amount up to Rs.1,50,000. For a house that has been rented, there is no limit on the interest amount that can be claimed.

If you have purchased a house that is under construction, you cannot claim the deduction until after the construction is completed. Also, the house should be ready to occupy within three years of taking the loan.

Also Read : How can You claim Tax Exemptions on a Personal Loan?

Preserve all the documents needed to provide proof that you have used the loan amount on a house. If you have used the amount to carry out repairs or renovations, preserve the bills for materials and labour. These are needed to claim your tax deductions.

Personal Loans are great options to handle urgent requirements for funds. They can also be used as tax saving instruments, if used properly.

Understand how you can get a Personal Loan for Home Improvement, while claiming tax benefits. Bajaj Finserv offers a great Personal Loan with a great set of benefits, such as:

Instant approval: With Bajaj Finserv, you can get loan approval in as little as five minutes and money in your bank as early as within 72 hours.

Loans of up to Rs.25 lakh: Get a loan of up to Rs.72 lakh and repay it at your convenience by opting for tenures ranging from 24 months to 60 months.

If you earn a monthly salary of Rs.30,000 or more and meet our eligibility criteria, click here to apply for a personal loan now.

Apply for Personal Loan Online Check your Personal Loan Eligibility

Everything You Need to Know About Fixed Deposit Schemes

Everything You Need To Know About Fixed Deposit Schemes

A fixed deposit (FD) is an account where an investor deposits a sum of money for interest earnings. The savings in the account mature over a chosen tenor and provide the investor with fixed interest gains.

fd apply

Here Are Some Important Terms That You Need To Know Concerning FDs:

  1. Interest Rates: These are the primary reason an investor seeks to invest in fixed deposit schemes. Fixed deposit interest rates can be a steady source of income for an investor or cumulative earnings depending on the FD scheme selected.
  2. Tenor: This is the duration over which your invested amount grows. This can range from 12 to 60 months or more, depending on your scheme. At the end of this period you have the option to either liquidate your FD, or renew it.
  3. Maturity: This term refers to the date on which the principal investment is returned to an investor. An FD matures over your chosen tenor and at maturity leads to interest earnings.

Now that you know these important terms, you can explore the two types of fixed deposits, namely cumulative FDs and non-cumulative FDs.

Types of FDs

  1. Cumulative Fixed Deposits: In simple terms, cumulative FDs can be defined as those deposits that do not have an interest pay-out over a periodical basis—like monthly, quarterly, or annually. In this option, the interest earned on your deposit is compounded annually, accumulated, and then paid at maturity, along with the principal amount. This type of investment is perfect for investors who do not need regular income. There is one major benefit from such deposits:

The compounded interest offers you the highest possible return on your investment as compared to non-cumulative FDs.

  1. Non-cumulative Fixed Deposit: This type of deposit is the exact opposite of cumulative FDs. Here, the interest payments are made on a periodical basis—like monthly, quarterly or annually as per the choice and convenience of the investor. These FDs thus offer frequent earnings which may be used for daily living expenses, especially by retired investors or senior citizens. However, the interest rate on such fixed deposits is lower. Here is the primary benefit of non-cumulative fixed deposits:
  • They provide the investor with frequent interest payouts, and you will receive your principal investment at maturity.

Also Read: Difference Between A Cumulative and Non-cumulative Fixed Deposit

What Do You Gain From Investing in FDs?

FD are regarded as a safe and convenient form of investment. Investing in fixed deposits can help you gain from the following benefits:

  1. Attractive Interest Rates: This is the primary gain that is most sought after by investors. The interest rates offered on FDs vary amongst lenders; however, the interest rates on an average are around 8%. Banks FDs usually offer more safety and lower interest rates while company FDs may be a little less safe but offer higher interests.
  1. Growth of Savings: Over the tenor, your fixed deposit grows and matures into a much larger amount. Investors are naturally attracted by this as it helps their savings multiply in value over a period of time. The matured amount can be used for a range of purposes, be it purchasing a vehicle or an asset, paying down payment for a new home, going for a family vacation, saving for education expenses, etc.
  1. Liquidity: In terms of liquidity, FDs can be quite flexible. In cases of emergency, FDs are can be broken any time by paying a penalty. Alternatively, you can take a loan on your FD at attractive rates of interest and use the financing to fuel you need.
  1. Risk-free Investment: There are numerous investment options for you to choose from, but investing in fixed deposits involves the lowest amount of risk. Fixed deposit investments are free from market fluctuations volatility and the risks associated with it. Hence you can be assured that the money you invest in FDs is safe and will not be lost in any way.
  1. Steady Source of Income: Non-cumulative FDs offer frequent and periodical interest returns that can work as income. You can use these interest returns for various purposes like daily expenses and purchases, paying off bills, etc. This income from interest is steady and constant, which is why FDs are one of India’s most popular investment scheme.

How Can FDs Be Forecast and Calculated Before Investment?

If you are an investor you must have certainly thought of estimating your returns from the fixed deposit to evaluate the final decision of whether to invest or not. To tackle this concern, Bajaj Finance offers you the FD calculator.

An FD calculator can be described as an online tool that is used to estimate the matured amount and interest rates of your FD, based on the amount you are planning on investing. This tool can help you decide and finalize on the amount to be invested. It can also let you judge and evaluate whether you are receiving the kind of returns you desire.

Also Read: Know More About Fixed Deposit Calculator

Bajaj Finance’s fixed deposit schemes offer high rates of interest, greater flexibility, and attractive pre- and post-application offers.

Calculate FD Maturity Amount

Invest in Fixed Deposit

BL July- 32_4 key trends of business loan in India every business owner should know_ed

4 Key Trends Of Business Loans In India Every Business Owner Should Know

The business loan scenario in India is undergoing a significant change. Here are the 4 major factors driving the current market.

The business industry in India has adapted well to global and national occurrences in recent times, be it the Indian PM’s demonetization move or USA President Donald Trump’s election. Regardless of the socio-economic changes, entrepreneurs remain as keen as ever on setting up or stabilizing their business ventures with financial aid from lenders. Thanks to the considerable demand for business loans in both organized and unorganized sectors, the number of lenders offering monetary support for business operations has also registered a notable increase. With the arrival of Non-Banking Financing Companies (NBFCs) on the scene, business owners are getting access to highly competitive interest rates accompanied by advanced facilities.

With such key factors already influencing the ways in which Indian SMEs seek financial support, what are the lending trends that will shape the future of the business industry?

Also Read : Everything You Need To Know About Online Business Loans

The Major Trends To Watch Out For In 2017

  1. Greater Demand For Business Loans

The Indian Prime Minister’s move to demonetize Rs.500 and Rs.1000 currency notes led to business owners running to financial institutions for small and medium business loans. The move especially impacted the small and mid-size manufacturers and traders who are more likely to carry out financial transactions with cash. Since demonetization is set to have a long-lasting impact, these businesses will continue to depend on financial aid from finance companies. Additionally, any new enterprises entering this sector will likely follow the same route. Added to this, the availability of business loans online is providing a boost to the SME sector, and will continue to do that in the years to come. With easy online loan application and quick approvals, businesses now have access to funds sooner than before.

  1. Introduction Of Social, Mobile, Analytics, And Cloud (smac) Technology

With the advent of digital technology, businesses are experiencing a sea change in all aspects related to their fields. To stay ahead of the game and gain an edge over the ever-increasing competition, most firms are taking the help of digital technology. Not to be left behind, the business industry has also embraced SMAC technology to further growth and increase revenue. They are likely to experience a phenomenal increase in efficiency and output with this move.

  1. Mutually-Beneficial Partnerships

The introduction of a Unified Payments Interface (UPI) and Bharat Bill Payments System is set to remarkably further the payment ecosystem of India. NBFCs will be able to partner with both bill payment providers and financial institutions like asset management companies to register easier long-term growth. For their customers, this will ensure better service offerings and improved facilities as compared to traditional lending sources like banks.

  1. E-Commerce Is Paving The Way For Efficiency

Having made a noticeable impact in the last few years, e-commerce is only expanding its presence in the Indian market. Not only are most new businesses going digital, but many existing Indian firms are also engaging with e-commerce to fulfil their requirements and accrue savings. E-commerce has not only given new companies an edge over competition, but also made ‘glocal’ business possible, changing the way business is conducted in the country.

All businesses, small or large, feel the need for external sources of money for the smooth functioning and growth of their enterprise. A business loan offers the quickest and most comprehensive way of facilitating this need. A Business Loan from Bajaj Finserv combines the lowest interest rates, highest loan amounts, and the best add-on facilities.

Apply for Business Loan Calculate Your Monthly EMI

HL-07-July-04-How do you know when it is the right time to refinance your home loan

How Do You Know When It Is The Right Time To Refinance Your Home Loan?

A housing loan refinance is when you take a home loan from certain lender, but over the course of the tenor shift to a new lender. This move is made because of many reasons; however, the main cause of doing this is to tackle the unfavourable loan terms persisting with your current lender. These unfavourable conditions could be high interest rates, bad customer service or even binding terms and conditions that do not allow you to make a prepayment on the loan without penalties. These are a few circumstances that compel borrowers to refinance house loan, also known as doing a home loan balance transfer.

However, shifting to the new lender may not turn out to be so advantageous if your new lender doesn’t offer you substantially better terms or if you are too late to make the move. Hence, it is important to identify the perfect timing that is ideal for refinancing your home loan to get you the most out of it.

The Perfect Timing to Consider for a Home Loan Refinance

If you do not refinance at the correct moment, you could suffer from high refinance interest rates, higher EMIs and ineffective terms and conditions. Here are a few circumstances when you could opt for a home loan balance transfer:

  1. In Cases Where Your Lender Forbids Foreclosure: Foreclosure can be defined as repaying the full principal before the end of the tenor. Foreclosure has a lot of terms and conditions and high penalties by numerous lenders as this move makes them lose out on interest payments. Hence, they introduce fines and penalties to protect their interests. If you have the money to foreclose your home loan, seek a refinance and move to a lender that allows foreclosure with the minimum hassle.
  2. When Interest Rates Are Too High: Depending on when and from whom you have taken your home loan, you could be paying high interest rates. If your loan is based on floating interest rates, it is likely that your interest is soaring up faster than your ability to repay. When you find it hard to make timely EMI payments, you should look for a lender who offers low refinance rates. This can help you save a significant sum of your income and help make EMIs more affordable.
  3. When The Customer Service Quality Is On A Decline: Certain lenders have inadequate customer service, which fails to support you in times you need help or support. If you notice this with your current lender, do not put up with it. After performing good amount of research seek a refinance to access the service and facilities you deserve.
  4. When All Negotiations Have Taken Place and Failed: When borrowers face issues with their existing lenders it is important to have a dialogue with its representatives before making any drastic moves. This dialogue may consist of negotiations over high interest rates, or even to arrive at a mutually beneficial solution for foreclosure. However, sometimes lenders have rigid rules and in such cases these negotiations are likely to fail. When all negotiations which you have tried have not worked in your favour, go for a home loan balance transfer and enjoy the benefits of low interest or better facilities.
  5. In Event of other Lenders Offering Incentives Like a Top Up Loan for a Transfer: Numerous times competing lenders provide attractive offers and incentives to borrowers for a balance transfer. These incentives go beyond discounted interest rates such as a large amount of a top up loan with a low interest that is offered over and above your home loan. You may use a top up loan to renovate your house, refurbish the furnishings or add a new wing as per your choice. In such a case you can do a balance transfer and chose the lender with the best incentives.

Most importantly, the timing of your home loan refinance depends on how much time has passed since you have taken your existing home loan. Transferring early, in the beginning of your tenor, helps you save money while transferring later may not save you much at all. So consider the timing carefully before proceeding. Seek a beneficial home loan refinance now with Bajaj Finserv, which offers nominal interest rates and added conveniences like a top up loan.

Transfer your Home Loan Online Home Loan Balance Transfer Calculator

BL July- 13_Is a Line of Credit or a Term Loan Better for a Small Business_ed

Why A Business Line Of Credit May Be Better For You Than A Business Term Loan

A business line of credit makes it much easier for you to manage your cash flow. Find out why it’s better than an average term loan.

A business loan is your best option when it comes to enhancing the output of your business venture. It comes with low interest rates so that you can manage your finances much more efficiently, without the constant worry of having to repay the loan amount too fast or at an exorbitant rate of interest. You can choose from a variety of flexible repayment options and select the one that meets your current financial requirements most efficiently. A business loan does not require you to set up any asset as collateral, and neither does it ask for a co-signor to act as a guarantor when you apply for it. Additionally, it comes with a range of add-ons that are provided to enhance your overall customer experience, like online account access and an easy-to-use Business Loan EMI Calculator.

However, the best attribute of a business loan is the unique Line of Credit facility that not only offers all the benefits of a business term loan, but also comes with a slew of additional facilities that make it ideal for a business owner.

Why You Should Select A Business Line Of Credit Over A Term Loan

If you choose to acquire a Business Loan from Bajaj Finserv, you get the unique opportunity to avail a Line of Credit facility, which is also known as a Flexi Lone. The financing company offers this facility to all its business loan applicants, through which you qualify for a fixed loan limit for a pre-determined duration.

When you select the Line of Credit option, your monthly instalment will only include the interest amount to be paid, without the principal component, which comes attached with all payments in the case of term loans. Through the Line of Credit, you only have to repay the principal amount of your loan at the end of your tenor. This makes it infinitely more convenient for you to handle your cash flow. Without the need to repay the principal component at the end of each month, you can dedicate the same amount to improving your business and consequently to boost your profits.

Also Read : What Do You Choose To Grow Your Business? A Small Business Credit Card Or A Business Line Of Credit?

The Impressive Features Of A Business Line Of Credit

Here’s a list of reasons why a Line of Credit should be your go-to option when considering an additional loan:

  1. Unlike any other term loan, your monthly instalment through the Line of Credit facility equals only the interest amount charged for that month.
  2. It is possible for you to access all of your loan-related information online, and also carry out any transactions through the exclusive customer portal.
  3. If you wish to part-prepay your loan amount, you can choose to do so anytime you want, throughout the year, without incurring any additional charges whatsoever.
  4. If you wish to drawdown or make withdrawals, you are entitled to do so without being subject to any extra charges.
  5. At the end of the year, you can opt for the bullet repayment option if you wish to pay off your loan faster.
  6. In case you already have a term loan but wish to convert to a Line of Credit, you can do so at any time of your choosing.
  7. You can also determine the exact interest you are required to pay at the end of each month with the Line of Credit Calculator.

Find out more about the benefits of the Line of Credit facility, and apply online.

Apply for Business Loan Calculate Your Monthly EMI

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