Funding Options to Raise Capital for Your Business

Funding Options to Raise Capital for Your Business

Money is the fuel that keeps a business running. Business owners should be aware of the modes of financing available to them. It is also important to choose the right mode of finance that matches with the business objectives and its resources

Gone are the days when banks were the only source for procuring funds. Today, due to the emergence of various online lenders like Bajaj Finserv, business owners have a wide range of financing options available to them.

Determining the right time and source of funding requires expertise, research, and financial prudence. Here are some funding options available for business owners in India.

· Online Lending

Online lending is convenient and reaches out to under-banked businesses across geographies. This has made them popular among small business owners. These lenders enjoy speed and accessibility, meeting the needs of quick financing. In a competitive business landscape, quick disbursal of funds is one of the keys to success.

· Angel Investors

Angel investors have scripted success for many small businesses with innovative ideas in India. They invest surplus cash in businesses in exchange for a certain return on their investment. Operating individually or in groups, angel investors have a higher risk appetite.

· Venture Capitalists

Procuring funds from venture capitalists needs an intriguing business idea. They usually invest in businesses against equity. Seeking funds from venture capitalists has a dual advantage. Along with funds, venture capitalists can provide guidance and act as mentors. Their experience can be useful for small businesses.

Though venture capitalists invest on a large scale, they seek returns within a short time (3-5 years). Hence, business owners should target generating high returns within a considerably short time period, if they want funding from venture capitalists.

· Non-Banking Financial Companies (NBFCs)

NBFCs have changed the lending landscape post the 2008 financial crisis. While the lending norms of NBFCs are not as rigid as banks, the innovative service offerings by companies like Bajaj Finserv are a value addition for the borrowers. Generally, the loans are collateral-free, which is a big bonus for small businesses.

· Business Incubators and Accelerators

These are ideal for the early stages of business. Various innovative ideas originating from academic institutions like business schools and engineering colleges can get a large degree of nurturing and guidance from business incubators and accelerators. IIMA’s CIIE is a case in point. It helps entrepreneurs turn ideas into viable businesses.

Companies like Dropbox and Airbnb are products of incubator and accelerator support.

· Government Programs

The Indian Government is doing its best to make the economic climate more hospitable for businesses. Under the Pradhan Mantri Mudra Loan Yojna, loans are available in the following three categories:

  • Sishu (Max Rs. 50,000)
  • Kishor (Max Rs. 5 lakh)
  • Tarun (Max Rs. 10 lakh)

Under the program, businesses can avail funds according to their needs. The corpus of the program has grown manifold since its launch in 2015.

With so many financing options, businesses are spoilt for choice. Choosing the right option is crucial for business owners to maintain the stability of their venture. It also helps to them to tap existing opportunities and take their venture to the next level.

We, at Bajaj Finserv, offer a business loan up to Rs. 30 lakh without any collateral.  Get in touch with us now to know about our Business Loan interest rate and much more.

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When is the Best Time to Get a Business Loan

When is the Best Time to Get a Business Loan

One of the basic mantras of success in business is the steady infusion of finance. For businesses, judging the right timing for funding is crucial to the success of a venture.

With the recent boom in the MSME sector in India, small business loans have emerged as the financing mode of choice for many business owners Read on to know when is the best time to get a business loan.

· When Expansion is Imminent

It is important to note that in the changing economic scenario of India, small business have ample opportunity to expand. For this, a business owner should have adequate financial resources at his disposal. Companies like Bajaj Finserv are offering small business loans with a line of credit facility to address a wide spectrum of requirements, including expansion of business operations.

· Economic Opportunity

Cashing in on the right opportunity presented by economic situations reflects business prudence. For instance, the demonetisation drive undertaken last year saw a surge in digital payments. As expected, several firms took the opportunity and invested in upgrading their financial transactions to digital mode, offering discounts and coupons for orders placed and paid for digitally. As this led to an increase in business for many of these firms, they required a corresponding increase in their working capital so that they could keep up with the market’s demands.

· Infusion of Talent

In his book, Good to Great: Why Some Companies Make the Leap… and Others Don’t, Jim Collins has said, “Great vision without great people is irrelevant.”

The success of a business depends on its workforce. Time and again, business owners need to infuse new talent in their existing pool of resources to remain competitive.

Successful businesses invest consistently in acquiring talents and up skilling the existing workforce. With growing relevance of new technologies like Big Data, Analytics etc. It is important that business owners recruit personnel expert in these fields to stay competitive in the market.

· Buying Fresh Stock

Sustaining a business in the present digital eco-system requires the maintenance of an optimum level of inventory. While being overstocked is not recommended, business owners should have enough funds at their disposal to invest in fresh inventory, when the market conditions are right.

With our collateral-free small business loans, business owners can buy new inventory ahead of a busy season. This will help them adequately stock up to meet customer needs.

  • Technological Upgrade

A modern business thrives on technology. So, business owners need to be on a continuous lookout for new equipment and systems to stay technologically competitive. For example, currently we are witnessing a shift towards automation of business processes.

But these upgrades are a costly affair. Often, businesses need to avail loans to fulfill their needs for upgrades. Our small business loans give business owners the funds to fulfill their technological needs.

Research & Development

Product and service space of the modern economy is very dynamic. New products and services are replacing the old ones at an ever-increasing pace. So, to cater to the changing customer needs and preferences, a modern business needs to invest significantly on research to develop innovative product and service offerings. A small business loan may help to a large extent in funding such research projects for businesses.

As a business owner, a small business loan availed by you should take the financial worries of future off your shoulder and not add more to it. At Bajaj Finserv, we offer small business loans of as high as up to Rs. 30 lakhs. They are collateral free to avoid the small businesses from pledging their crucial assets. Moreover, the facility of online account allows you a hassle free and seamless access to all the loan related information, as and when required. Talk to our loan experts today!

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6 Investment Plans Post Retirement

Your expenses post retirement can be compulsory, obligatory or indulgent – whether it is financing your children’s education, tackling emergency health-care expenses or traveling the world.
All these expenses can be tackled easily, with cautious planning. You need to be aware of various investment options and schemes available, which will enable you to put your savings to good use and earn high returns.

Here are Top Investment Plans for you to Consider Post-retirement:

1. Senior Citizen Saving Schemes:

This is a scheme customized for senior citizens allowing a maximum investment of Rs.15 Lakh. The major eligibility criteria for this scheme is that the applicant should be above 60. Currently, it offers an interest rate of up to 8.6% per annum, which is reset every quarter.
However, the rate at which you invest is locked for the tenor of 5 years, which may be extended further up to 3 years. This scheme also offers tax savings under section 80C. It offers you interest every quarter and also provides the option to make premature withdrawals.

2. Company FDs:

These schemes are offered by various financial institutions and are ideal for senior citizens, paying more than bank FDs. Though everyone can start an FD, senior citizens are offered a higher interest of about 8.10%. The tenor for this scheme ranges from lender to lender; however, you can renew it according to your convenience.
You can take the first step towards securing your future after retirement by investing your PF money in the high-yielding Bajaj Finance FD. Here you can gain from attractive interest rates, flexible tenor, high stability ratings, online account management, doorstep service and more.
You can also choose between cumulative and non-cumulative FDs, with the latter offering you periodic interest payouts to fund your daily living expenses after retirement. This scheme promises stability, and is a healthy option in which to invest your Provident Fund money. You can even get loans against your FD during times of need. You can use FD Calculator to calculate maturity amount.

3. Tax-free Bonds:

These are securities that are issued by the government to raise finances for various projects. These are usually long-term investments ranging over 15 years or the period over which the project will be completed. The interest over this scheme is completely tax-free. The returns for these options range from 6.4% to 8.3%. This option is ideal for senior citizens because of its high yield and longer tenor.

4. Mutual Funds:

This option is known to provide the highest adjusted returns as it invests your money in the securities market. The right mutual fund investment may yield an interest that goes up to 20%, however this depends on financial markets.
So, while mutual funds are susceptible to risk, over time, they offer high returns, and also allow liquidity, based on the type of funds you choose. It is important for you to be aware of high-performing mutual funds and choose a financial company that you trust while investing.

5. Post Office Monthly Income Scheme:

This is a stable and safe scheme created by the India Post. You can invest a sum of money in multiples of Rs.1500 up to the maximum limit of Rs.4.5 Lakh for individual accounts and Rs.9 Lakh in joint accounts. Currently, the interest offered is 7.5% and is payable monthly. This scheme has a fixed maturity period of up to 5 years, however it allows you to make premature withdrawals. This scheme is ideal for retired investors since it offers a high yield and stable returns.

6. Real Estate:

Real estate can be a great option for investment for senior citizens as it not only means you own an asset, but also gives you monthly rental income. Select the right property by getting it valued and then either sell it or rent it out as the value appreciates.
Real estate can offer high returns, with the conventional increase being about 10% on the original investment. This option is however highly dependent on the market.
Diversifying your investments is ideal, so that you can reap the best benefits of all these investment options. When choosing from among these options, invest in a healthy mix and gain from both high-risk and low-risk options.

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Why Fixed Deposits Make For Sensible Investment Instruments

Why Fixed Deposits Make For Sensible Investment Instruments?

New investment entrants have slowly made their way into the Indian market. These include options such as equities, mutual funds and real estate, which have become popular with the younger generation due to the higher appreciation of capital.

Despite this, fixed deposits still hold sway over investors, especially those who seek capital preservation. Here’s why you should consider a fixed deposit investment as a useful and sensible investment option.

  • You Get Assured Returns:
    Fixed deposits are financial instruments that give you an assured interest on your principal amount, which is locked in for a fixed duration. Your interest earnings are not dependent on market fluctuations, and this makes FDs (Fixed Deposit) an investment you can count on.The interest rates on FDs are higher than those of savings accounts because your funds are invested for a fixed tenor. The high returns thus compensate for the lack of liquidity.
  • You can choose your pay-out frequency:
    FDs allow you to compound your earnings or access them periodically. When you choose a cumulative fixed deposit, your interest is calculated annually, and is added to your principal and reinvested for the next year.You get these earnings at maturity. For example, if you have invested Rs.1,00,000 for 2 years at a rate of 7.80%, you will earn an interest of Rs.16,208.

    Conversely, you can choose to get your payout at regular intervals to manage your lifestyle expenses via non-cumulative deposits. For example, say you have invested Rs.1,00,000 for 2 years at a rate of 7.53% and have chosen to receive monthly earnings. You will get Rs.627.50 every month and a total payout of Rs.15,060. Use Bajaj Finance FD Calculator to calculate your maturity amount.

  • You Can Cope With Emergencies:
    Sometimes, due to a contingency, you may need cash urgently. At such times, you can make a premature withdrawal of your FD and pay a small penalty. Further, if the need arises and you face a liability crunch, you can even take a loan against your fixed deposit. Financial companies offer you between 75% to 60% of your total FD investment as a loan both quickly and easily. So, you can tackle your emergencies conveniently.
  • You can multiply your savings:
    Putting your money in a fixed deposit is not just a sensible thing to do because you get guaranteed returns. It is a practical and useful option because it inculcates financial discipline. Since an FD locks in your funds for a fixed duration, and tells you exactly what you stand to gain at maturity, you can develop your saving habit more easily.This also helps young investors learn that before you start spending your money, you must first save it. This is beautifully echoed in the words of the investing guru Warren Buffet who said, “Don’t save what is left after spending. Spend what is left after saving.” Investing in fixed deposits helps you to learn and imbibe this valuable lesson.
    Your FD allows you to get tax benefits for interest earnings up to Rs.5000 or Rs.10,000 depending on the type of deposit you choose. After that limit, you will be charged 10% interest depending on your tax slab. Senior citizens, however, can get their entire FD earnings exempted if their total annual income is less than the minimum income exempted.

Now that you know why FDs are one of the most popular investment tools, invest in a high-earning FD today. Choose the Bajaj Finance Fixed Deposit, which not only offers high returns on your investment, but also promises stability and security with high safety ratings. With deposits starting at as low at Rs.25,000, start now to reap the benefits!

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When Is The Right Time To Invest In Fixed Deposits

When Is The Right Time To Invest In Fixed Deposits?

Even though your FD (Fixed Deposit) comes with a safety guarantee, you may be thinking if it is the right option for you today. Factors such as inflation are sure to be playing on your mind. For starts, it may result in the appreciation or deterioration of your capital interest. It could also lead to a rise or fall in future interest rates. So you may be wondering, when is the right time to invest in an FD?

Knowing about these four factors will help you think about your fixed deposit investment more clearly.

  1. Falling interest rates scenario: Fixed deposits as a financial instrument have been a hit all through the years due to the high interest rates that banks and NBFCs offer on them. However, from 2012 onwards, the Reserve Bank of India has cut the repo rate and the cash reserve ratio many times.

The repo rate is the rate at which the RBI lends money to banks which come under it. So if the repo rate is hiked it means in all likelihood that the interest rate on your FD will also increase.

Also Read : 3 Factors That Affect Fixed Deposit Interest Rate

If the repo rate is slashed, expect to earn less on your FDs. When it looks like the interest rates are gradually going downhill, it is better to immediately invest in FDs, and keep them locked for a certain number of years. A good practice is to keep the FDs locked for a longer period if the interest rates offered beat the inflation figure.

  1. Benefits of laddering: Interest rates keep fluctuating over time. There is always the danger that your FD could remain stuck at a lower interest rate for a long period of time when the prevailing interest rates have improved. Laddering is what helps to avoid such a scenario.
    Instead of putting all your fixed deposit in one lump sum, you can stagger it in FDs of various tenors. You could even start FDs in different financial institutions. This gives you a better opportunity to reinvest them at the prevailing market rates, thus ensuring that you gain both appreciation as well as liquidity.
    Doing this over the long term gives you a higher average return. This strategy is similar to the systematic investment plan used in mutual fund investments where investing at different net asset values helps to increase your return on investment.
  1. Power of compounding: It is prudent not only to go for FDs of various tenors, and across different financial companies, but also fixed deposits where the interest is compounded on shorter period. You can opt for two kinds of FDs. The first one is called traditional or non-cumulative plans and the other one is called reinvestment or cumulative plans.
    Under the non-cumulative FDs, the principal is invested according to the tenor chosen by you, and the interest is credited either monthly, quarterly or annually. In cumulative FD, the interest is compounded on a quarterly basis and reinvested along with the principal. This works out to give you a higher pay-out. Use FD Calculator to calculate maturity amount.

Also Read : A Complete Guide to Income Tax on Fixed Deposits

  1. Taking taxation into account: : Both bank and company FDs are tax adjusted—they are not tax-free. Whatever income you make from FDs, you have to pay tax on them depending on which income bracket you fall under. There may be scenarios where fixed deposits do not always give inflation-beating returns. So, it may be a better idea for you to choose short-term FDs. The longest tenor on a short-term FD is five years, and if you invest in this FD, you are entitled to a tax deduction under Section 80C.
    Follow these essential guidelines, and choose fixed deposits of trustworthy financial institutions. Bajaj Finance Fixed Deposits have high stability rating from two top-most credit rating agencies—ICRA and CRISIL.

Get the best deals on more than 30 financial products, including personal loans, business loans, insurance, home loans, and more with Bajaj Finserv.

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3 Factors That Affect Fixed Deposit Interest Rate

3 Factors That Affect Fixed Deposit Interest Rate

FDs have always managed to appeal to investors, and it is their intrinsic nature that gives them their charm. A fixed deposit gives you a guaranteed sum at a fixed rate of interest for a fixed duration, which makes them a must-have in your investment portfolio.

7 awesome reasons to invest in Fixed Deposits-1

Though interest rates on fixed deposits appear to be largely static, not only do they vary from one financial institution to the other, but they also change in the course of time. The interest rates that were applicable in the 1980’s are not the ones offered today.

Calculate your returns with Bajaj Finance Fixed Deposit Calculator

What are the factors accounting for this difference in interest rates? Let’s examine the three important ones.

  1. Current state of the country’s economy

One way of measuring a country’s economic performance is to look at its GDP or gross domestic product performance. It is the value of the total goods and services produced in a country during a given period, usually in a year. If the GDP figure increases, it means the economy is prospering.

An increase in GDP raises the demand for more money as consumers make purchases at the new value levels. Thus, an increase in real GDP or economic growth will cause an increase in average interest rates in the economy. Conversely when the GDP value decreases, so do the interest rates.

  1. Reserve Bank of India monetary policy

To know how monetary policy can affect interest rates you need to know a little of what the Reserve Bank of India is and what it does. The RBI is India’s central banking entity and frames the country’s monetary policies. Besides taking care of important functions, such as taking care of foreign exchange reserves, it also regulates the banks and financial institutions that come under its umbrella.

All banks in India borrow their money from the RBI. The rate at which this money is lent to them is called the repo rate. So an increase in repo rates by RBI will mean that banks will increase their interest rates, both on their FDs as well as their loans. This repo rate, also known as the benchmark interest rate, is decided by a six-member monetary policy panel. It is the compass by which banks decide at what rate they will lend and how much they will pay on their FDs.

Also Read : Advantages of a Fixed Deposit Account

  1. Impact of inflation and recession

Inflation is the rate at which prices for goods and services rise. To control high inflation, the usual trend followed is to increase the interest rates so people tend to save more. When inflation decreases interest rates are lowered so people can borrow and spend more.

Like other central banks across the world, the RBI uses interest rates as a tool to control inflation. Last year for instance, it reduced the repo rate from 6.50% to 6.25% due to low inflation. Thus, inflation impacts whether your FD interest rates are headed north or south.

During recession, which is the time when the economy contracts, interest rates fall accordingly. This is done mainly to encourage borrowing as in a bad economy people are averse to parting with their money. Thus, a recession means your FD will get you lower yields.



Now that you know the factors affecting your FD interest rates, it’s time to make the most of high interest FDs. Opt for a Bajaj Finance FD which gives you high interests of up to 8.10% apart from online access and easy application with doorstep service.

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Prioritise Your Investments By Following These 4 Principles

Prioritise Your Investments By Following These 4 Principles

‘Every penny saved is a penny earned’

The popular adage above may not quite be true when it comes to financial planning! After all, the value of your pennies decreases due to the passage of time and the effects of inflation. Thus, it is not enough to save, but to invest in the right channels.

Start small and make it a habit to invest in smart schemes. Balance out the risk associated with an investment along with the potential to earn to do your savings justice. Here are some principles to follow to help you do just that.

Bump up your savings with these habits

Do not wait for tomorrow

Why wait to set out on your path towards savings and investment, when you can do it now? Thinking that your income is too low for savings is a wrong way of looking at the situation in hand. Save at least 10% to 20% of your income every month and be consistent. Once you save, be proactive about investing.

Also Read : Why FDs are Sensible Investment Instruments?

Letting your savings lie idle will cost you money. For example, you may think that you will start an FD of Rs.50,000 next year, but why wait? Delaying this task will cost you an annual interest of around Rs.3800. Act now to get the full value of your savings. If you find yourself wanting a larger corpus for investment, at least start an FD. Bajaj Finance FD requires a deposit as low as Rs.25,000 and offers high returns.



Do set up a savings fund

Apart from a FD, you can also invest in an equity savings fund, which divides your money equally into three parts: debt, arbitrage and pure equity. This type of mutual funds investment is less risky than balanced equity, and can give you returns in just one year. An investment like this can help you tackle financial needs in the future, while ensuring that you are not tempted to use the excess cash.

Do not overbalance your portfolio

Rather than choosing to be a risk-averse investor, try taking a little healthy risk to see your money grow. On the other hand, choosing only equity investments exposes you to too much risk. So ensure that your savings are divided as per your risk appetite. Use a healthy mix of debt equity, arbitrage funds and pure equity as well as low-risk options like PPF and FD.

Choose a combination based on your tax-saving needs. Also divide your investments by calculating the lock-in period of various investments, allowing yourself to be able to access cash every year rather than choosing only long-term options. To further ensure that save each month, sign up for SIPs.

Also Read : How Fixed Deposits help you save tax?

Do budget for your goals

A goal always helps you invest smarter. Be it your daughter’s marriage, down payment for a home, buying a watch or even planning for an international holiday, make room for all your objectives and invest accordingly. Rather than being casual about your decisions, sit down with a financial planner to chalk out your goals and match your investments to them. This will help you boost your savings habit and set you on the right track.

Work out the budget for your responsibilities and aspirations and then do the math to know exactly how much you can spare every month. Once you do this calculation you will understand that for every penny you save and invest, you stand to earn a little more.

Now that you have these four guiding principles at hand, save a part of what you earn and invest a part of what you save. Prioritize your investments to benefit from better and bigger interest rates and achieve a diverse financial portfolio. Use Easy FD Calculator to calculate maturity amount.

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7 Reasons Why The Bajaj Finance Fd Is Your Best Savings Vehicle

7 Reasons Why The Bajaj Finance FD Is Your Best Savings Vehicle

Even though the market is filled with new savings schemes and policies, the conventional savings method of pooling money into fixed deposits still rules the roost. As a safe alternative for your savings, fixed deposits promise high returns.

Also Read : Why you need a FD Strategy?

Known to offer one of the highest interest rates on FDs, Bajaj Finance FD proves to be a cut above the rest.

5 advantages FDs offer investors

Here’s why their FDs have garnered one of the highest approval ratings in the market:

  1. Your Investment Fetches High Returns

Saving through an FD assures safety for your savings as its returns are not based on market fluctuations. With Bajaj Finance, this safety is also paired with high returns. Bajaj Finance offers interest rates of up to 8.20%, which is one of the highest interest rates in the country. You can hence get a good return on your investment, at the end of the FD tenure. The interests offered start at 7.85% for new customers.

  1. You Can Start Low With Bajaj Finance

Your profile and income shouldn’t be the deciding factors of your intent to save. Bajaj Finance respects your money and allows you to start a fixed deposit with a minimum of Rs.25,000. Senior citizens get an edge on their savings too, as they are offered an additional 0.25% interest value on their savings.

  1. You Are Assured Stability With Its Secure Ratings

Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, Bajaj Finance offers an FD that is reliable and trustworthy. There is little to no market volatility attached to your FD so you can invest freely without worrying about the risk.

  1. You Have The Freedom Choose Your Maturity Date

Bajaj Finance brings you flexible tenor, where you can choose your FD’s maturity between 12 and 60 months to suit your financial needs. You can also close your existing FD and start a new account for a different tenor at any point of time. This enables you to safely handle your money with flexible time frames, based on when you need your money in hand. In addition, you can use FD Calculator to check your maturity amount.



  1. You Can Choose To Receive Regular Income Earnings

Interest on your fixed deposit can be earned in two ways. One, by the conventional way of fetching interest at the end of the tenor. The other, by choosing to receive a payout at different stages of your FD. The non-cumulative fixed deposit will fetch you interests at monthly, quarterly, semi-annual or annual intervals. This guarantees an income on your investment without having to wait till the maturity.

  1. You Can Apply For It With Minimal Paperwork And Monitor It Online

Bajaj Finance processes allow you to create an FD account with minimal documentation. All you need is your latest photo and certified copies of your identity proof, address proof and proof of signature. Once you have sent the cheque and your FD account is created, you can access it online, which gives you the freedom to track your fixed deposit over time.

Also Read : How to invest in Bajaj Finance Fixed Deposit?

  1. You Have Better Access

Are you worried that you will have to wade through a queue to open a FD? You can erase this thought, as Bajaj Finance sends their representatives home to you for collecting the needed documents. This doorstep service ensures utmost convenience for you. But, in case you want to visit them in person, Bajaj Finance also has a presence in over 200 cities in India, so its representatives can attend to your needs quickly.

So, start your investment with a Fixed Deposit from Bajaj Finance today!

With Bajaj Finserv, you can avail more than 30 financial products that include personal loans, business loans, professional loans as well as various payment avenues like credit cards, digital wallets, and the EMI Network Card.

No matter what your financial need, Think it. Done with Bajaj Finserv.

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