In the Budget 2021, Nirmala Sitharaman in order to curb the centre’s outgo as tax-free interest on EPF has announced a new tax rule for EPF. Accordingly, for high income earners or those contributing a higher sum of over Rs. 2.5 lakh in a financial year will be taxed on the interest earnings. So, for high income earners, this interest on EPF announced annually and at 8.5% currently shall no longer be tax-free.
2 Better Investment Options To EPF As It Is No Longer Tax-Free
Note such a tax implication shall arise in case the employee’s contribution exceeds the stated threshold.
Rationale given for this new ruling on EPF tax
The rationale for introducing the measure is to curtail the practice of parking large sums in the PF account to seek dual benefit of tax exemption and high interest rate,” said S Ravi, Former Chairman of Bombay Stock Exchange, Founder & Managing Partner a of Ravi Rajan & Co.
Impact of the new move
To reduce their tax outgo, wealthy individuals who until now parked an extra sum in their EPF kitty or also for that matter made an extra contribution to VPF or voluntary provident fund, they will now look for other investment options to rake in a higher earning that does not attracts a similar tax structure.
1. NPS:
This is also a retirement savings scheme that provides pension amount and in the case of maturity, the commutation part offers tax-free income. At the maturity, investor has to decide the commutation percentage which is capped at 60%. Also, it is a known fact that NPS funds have yielded a higher return in comparison to EPF. As per the Cleartax website, the NPS scheme return from central government schemes have been over 12 percent for SBI, UTI Retirement Solution and LIC Pension Fund, respectively.
2. ELSS:
ELSS is also tax free up to Rs. 1.5 lakh in a year as per Section 80C of the Income-tax Act. Also, LTCG from the instrument are tax exempt up to Rs. 1 lakh. As these funds come with a lock-in of 3 years, you also get a disciplined approach to investing. For some of the funds as in IDFC Tax Advantage one year return have been 12 percent. ELSS – that offers dual advantage of capital appreciation as well as tax saving – has lower lock-in period (3 years) than PF & NPS,” said Ravi.
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Minimum deposit amount required for SBI Annuity Scheme
For the SBI annuity deposit, the minimum deposit amount with no upper limit is based on a minimum monthly annuity of Rs 1,000 for the applicable duration. And it is, the minimum deposit amount will be Rs. 36,000 for three years. For a fixed time, the interest starts on the balance deposited by the customer.
Required deposit amount and tenure of different SBI FD Schemes
Under SBI fixed deposit schemes, the following plans are available for the customers:
SBI Term Deposit: Investors can easily select a maturity period that ranges from 7 days to 10 years. Rs. 1,000 is the minimum required contribution. Loans against FD and options for early withdrawal are open.
SBI Tax Saving FD: Here, the deposit tenure is set for 5 years. Rs. 1.5 Lakh is the highest investment amount. Loans against FD and premature withdrawal facilities, however, are not open.
SBI Fixed Deposit Reinvestment Plan: The maturity duration is between 6 months and 10 years for this scheme. With a deposit of only Rs. 1,000, investors can invest in this scheme.
SBI Multi Option Deposit: It is a mix of an FD and a savings account. Investors can partially withdraw the amount, while interest continues to be received on the remaining balance. With a minimum contribution threshold of Rs. 10,000, the tenure varies from 1 and 5 years under this scheme.
SBI Annuity Deposit: 36, 60, 84 and 120 months are tenure options. Rs. 25,000 is the minimum contribution permitted under this scheme. Premature withdrawal is possible only after the account holder’s demise.
SBI Annuity Deposit vs SBI RD: Know the key difference
The customer performs installment payments and receives the maturity amount in the Recurring Deposit Account at the maturity. A one-time deposit and that balance plus interest on the declining principal are returned to the customer in installments under the SBI annuity deposit over the tenor preferred by the customer.
SBI Annuity Deposit Scheme vs SBI FD: Know the key difference
In the case of STDR, the customer makes a one-time payment and receives the maturity balance at the maturity date, which includes principal and interest, and principal only in the case of TDR, as interest is paid annually on the SBI FD account. The SBI annuity deposit allows a one-time deposit and the balance is returned in EMIs to the customer over the tenor chosen by him/her, along with interest.
Interest rates comparison
At present, SBI offers an interest rate of 2.9 per cent to 5.40 per cent on deposits maturing in 7 days to 10 years. The interest rates applied to the SBI annuity scheme is similar to that of the SBI FD which are in effect from January 8, 2021.
It is not possible to obtain a loan of 100% against the worth of gold. Gold loans given can be as little as 60% of the value of gold and can be up to a limit of 85-90% depending on the lending institution.
The price of gold is also fluctuating. There are two ways in which the cost of gold is calculated. Some measure the prices of gold for the past two weeks and then use the average price to decide the rate per gram of gold. While some people take the daily rate to value the gold. Consider the option that better matches you, and the plan that gives the gold a higher worth.
Credibility
Before you approach the lender, do a background search to know about the security steps taken by the lender to protect your properties. At the end of the day, the gold you pledge should be in safe possession. So select a trustworthy organization that guarantees protection. The odds of fraud with jewellers and lesser established NBFCs are the highest. So be careful when you choose your lender.
However, you have no assurance from the lender that poses the issue of the protection of gold. As there is no documentation or documents obtained from a local vendor. Gold loans are fast that you will get a lot faster than most other loans.
Interest Rate
Gold loan interest rates vary from lender to lender. However, the calculation of the Gold Loan is based on two forms as below:
Fixed-rate of interests: The interest rate paid on the loan amount remains unchanged over the length of the loan. As a result, the EMI Gold Loan remains the same during the repayment schedule.
Floating rate of interest: Interest rates thus continue to adjust under market conditions. Also, because the rate is not set, the EMI Gold loan can increase or decrease suddenly.
Gold Loan Tenure
Gold Loans are short-term loans. Most institutions offer a gold loan for a duration of one year, and some can extend it for up to 24 months. So, before you get a gold loan, you must be sure to repay it for the agreed period. Gold loans are a good way of receiving immediate cash to fulfill the needs in case of emergencies.
Non- Payment
Lenders have the right to sell your gold if you are unable to repay the loan on time. The lender would like to retain the loan-to-value ratio all the time; that is, greater than the money they have disbursed should be the value of the gold they possess.
Repayment Structure
The repayment option is another important factor, and there are a few options you could consider.
Bullet payment: The repayment amount of the loan is calculated on a monthly basis, but you pay the full amount, including interest, at the maturity of your loan period.
Upfront Interest: You can pay interest at the beginning of tenure and principal at the end.
Standard EMI: You have the option of paying back the loan along with interest on a month-on-month basis.
Things to note
The majority of banks charge a minimum transaction fee of Rs 1,000 to 2%.
If you wish to partly repay your debt ahead of time, it is considered part prepayment.
It is called foreclosure in the event that you plan to settle the whole debt balance before time.
In such cases, banks usually levy prepayment or foreclosure costs, and these can vary from zero to even up to 1%.
Documents for Gold Loan
The documents required for availing of the gold loan are:-
Two passport size photographs
Identity proof such as PAN card, passport/, Aadhaar card, voter id card
Address proof (Electricity bill/ telephone bill/ bank statement
How much you will receive on your gold?
You will be given the highest prices for specially minted gold coins from banks of up to 50 grams or 22-carat gold ornaments.
If you sell hallmarked jewelry, a lower payment fee will be charged and the loan rate will also be lower.
Your lesser gold loan sum will be granted to lower purity gold ornaments of 18 and 20 carats.
Diamond, pearl, ruby, etc. Ornaments do not get you a decent loan amount as banks subtract the weight of these gems to measure the total gold weight.
For just about every reason, like debt consolidation, unexpected expenses bill, a holiday, and so on, a personal loan can be your only perfect partner. Usually, for two or five years, with payments in annual installments a personal loan can be reimbursed. Personal loans are also widely called unsecured ones as they are not backed by collateral. To apply for a personal loan, there are several points to follow, but choosing the perfect one that suits your needs with a low-interest rate is the smart strategy here. And taking the same into account, public sector banks tend to drive the way by attempting to offer cheaper interest rates on loans across segments relative to the leading private sector banks of India. Here we have taken the cheapest interest rates on personal loans of Rs 5 lakhs that are currently being provided by leading banks of India.
Tips to get a personal loan at the lowest interest rates
Below are the few considerations that you can follow to get the lowest interest rates on a personal loan while applying for it:
Strong credit history plays an important role while applying for a personal loan. Banks and financial institutions support borrowers who have a good credit score with the lowest personal loan interest rates. Therefore, before applying for a personal loan, you must review your credit score. You should look at options to boost your credit score if it is less than 750. If your credit score is above 750, there are more possibilities for you to have a personal loan at the cheapest rate.
Your credit score can be negatively impacted if you miss a loan or credit card reimbursement. Typically, lenders take the debt history into consideration before agreeing on the interest rates for a personal loan. A lower interest is usually applied to those who have paid their previous EMIs and credit card payments on or before the deadline.
During festive times, banks and financial institutions typically give attractive interest rates for a short period. So it is considered to apply for a personal loan during a festive season to get the lowest rates.
There is a need to compare the personal loan interest rates provided by different NBFCs and banks before applying to a specific bank for a personal loan. It will enable you to take advantage of a personal loan at a reasonable interest rate.
You can receive the lowest interest rate if you are a current customer of a bank or have a positive relationship with the lender.
Factors that influence personal loan interest rates
When determining the interest rate, loan providers consider the income stream of the individual first. Individuals with a high salary can get a personal loan at the lowest possible rate.
Lending institutions can give borrowers different interest rates depending on whether they are self-employed or salaried individuals.
The individual’s age may also have an effect on the interest rate provided by the lender. A higher interest rate can be charged to individuals who are entering the retirement age.
At the time of applying for a personal loan, current customers of a bank/financial institution may be given a lower interest rate, provided they have a strong relationship with the issuer of the loan.
Facts to consider while applying for a personal loan
There are a few other considerations to keep in mind while choosing a personal loan with a low-interest rate and they are:
A one-time charge known as the processing fee is charged by loan providers and just because a low interest is paid to you, the transaction fee charged by multiple lenders must be reviewed and compared.
If you repay the unpaid loan balance before the expiration of the loan repayment period, some banks may bill you a pre-closure fee. Thus, whether a pre-closure fee is charged by the bank/financial institution you are applying to is must be checked.
You must review the customer service networks that are open before submitting your loan application and how responsive the provider is to support you when requested.
Although personal loans at low-interest rates may be offered by a bank or financial institution, you should make an effort to verify whether you follow the eligibility rules stated by the lender. You must confirm that you verify whether your salary meets the defined cap and whether you follow the stated age criteria for this reason.
If you are applying for a personal loan because of an emergency, it is necessary to consider the duration of the disbursement of the loan.
Although the lender can bill you a marginally higher interest rate, the processing fee, default charges, prepayment fee, Loan Cancellation Fee, Stamp Duty Fee, Duplicate statement fee and so on are the charges that you must check.
Personal Loan Interest Rates
The cheapest personal loan is provided by Union Bank of India at a rate of 8.9% per annum, followed by Punjab National Bank at 8.95%. The Federal Bank and HDFC Bank, the higher on the below table cost 10.49 per cent and 10.5 per cent respectively across private sector banks. The interest rate obtained from the websites of the respective banks as of February 4, 2021. Banks are classified on the grounds of interest rate in increasing order, i.e., banks providing the cheapest interest rate are put at the top and the highest at the edge. Based on the terms and conditions of these banks, the interest rates listed below can differ. As an applicant, if your credit history is poor you may be paid a much higher rate based on certain aspects, such as your salary, profession and age.
Sr No.
Banks
ROI in % p.a.
1
Union Bank of India
8.90
2
Punjab National Bank
8.95
3
Central Bank of India
8.95
4
Indian Bank
9.05
5
Bank of Maharashtra
9.55
6
SBI
9.60
7
UCO Bank
10.05
8
Bank of Baroda
10.10
9
Federal Bank
10.49
10
HDFC Bank
10.50
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A detailed framework for the ARC is in the works, financial services secretary Debasish Panda said earlier this month, adding that the government will not be putting in any money.
As the process to set up a new national asset reconstruction company (ARC) gathers steam, Punjab National Bank (PNB) has begun the process to exit Asset Reconstruction Company (India), also known as Arcil. The bank’s investment arm on Monday sought expressions of interest from potential buyers in a public notice.
“PNB has initiated a sale process to offer its holding of 3,25,06,486 equity shares i.e. 10.01% of the paid-up equity share capital of ARCIL (“proposed transaction”). PNB Investment Services Limited is the advisor to PNB (referred to as “PNBISL”/ “advisor”) for the proposed transaction,” PNBISL said in the notice.
Arcil’s other sponsors are: Avenue India Resurgence, State Bank of India, IDBI Bank and ICICI Bank. Arcil is an associate member of the Indian Bankers’ Association. In November 2018, US-based Avenue Capital bought a 27% stake in the company for an unspecified amount as investors IDFC Bank, Ashmore Capital, FirstRand Bank, Barclays, Singapore’s GIC and Karur Vysya Bank exited it.
There has been little clarity so far on how the new ARC, proposed in the Budget, will be funded. While some government officials have said that it will be up to banks to put in seed money, it is not yet clear which banks will actually invest. A detailed framework for the ARC is in the works, financial services secretary Debasish Panda said earlier this month, adding that the government will not be putting in any money.
FE had reported in January that bankers plan to seek two exemptions for the new ARC. First, relaxation of the September 1, 2016 circular which effectively requires banks to provide for an asset assigned to ARCs as if it were still on the bank’s books. The other would be to exempt the new ARC from making future provisions for assets it buys.
In a recent report, SBI’s economic research wing said public sector banks (PSBs) now have a provision coverage ratio of around 86% (up from 62% in FY18). “This implies that the PSBs would have provided for most of the bad assets and a wholesale transfer of the bad assets to the bad bank is just a technical issue and the process of recovery and resolution could be carried out much better,” the report said.
By Mr. Ravi Singhal, Vice-chairman, Gcl Securities Limited
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All of us want to save money as much as we can, provided it is legally correct. How to save Income Tax is probably one of the most searched phrases when it comes to saving money for taxpayers. All of us should always pay our income tax as it goes in nation-building and strengthening the economy. But, intelligent, planned and strategic investments can help us save some money to pave the way for a financially secure future. Here are some of the top options every taxpayer must explore in order to save some income tax:-
Avail maximum benefit of 80C:
If you are planning to save income tax, then you must avail the maximum benefit under 80C (Rs 1.5 lakhs per annum, as of now). One can freely choose saving instruments of their choice, like people not willing to take financial risk may go for 5-year Tax saver FD, Life insurance policies or other investment products offering fixed returns. Those who don’t shy from taking risks can invest in Mutual funds under ELSS categories. There is no difference in the performance of ELSS and a normal mutual fund, except for the fact that there is a lock-in period of 3 years in ELSS category funds.
Never ever ignore 80CCD:
One should also consider utilising maximum limit under 80CCD (Rs 50k as of now) to save Rs 15k by investing in NPS (National pension System) scheme or APY (Atal Pension Yojna). There is a myth that NPS gives very low returns as compared to other available products, which is absolutely wrong. You can compare the performance of all funds under this category and can choose the fund of your choice. 50% of your funds are deployed in these market-linked products and 50% in debt instruments like government bonds. This ratio is changed by fund manager every year and 100% of your funds parked in debt market till retirement. As assessee already saving 15,000 in tax so whatever you are earning is actually earning on 35,000, so your actual returns are much higher if you save under this category. However, the products under 80CCD are pension funds only, so there are some restrictions on withdrawal of funds, you must consider it before investing.
Triple benefit of home loan:
Owning a home offers the triple benefit of house rent saving, property appreciation in the long term and tax benefits. If you are staying on rental property, then your rental expense is going to increase every year, whereas your EMIs is almost fixed (if interest rates do not change) Finance minister Nirmala Sitaraman in her Budget 2021 has extended timeline for availing additional tax benefit of Rs 1.5 lakhs under section 80EEA. Under ‘Housing for All’, the government is giving tax deduction benefits of up to Rs 3.5 lakhs (Rs 2 lakhs under section 24), which cannot be ignored.
Moreover, you can save tax under multiple sections as per following schedule if you buy residential property:-
Section
Maximum Tax Benefits
Tax saving component
Conditions
Section 24
Rs 2,00,000
Home Loan Interest
Assessee or any family member should be living in that house, full interest can be claimed if house is on rent.
80EEA
Rs 1,50,000
Home Loan Interest
“-Stamp duty value of property should be up to Rs 45 lakhsLoan Section date between 01st Apr 2021 to 31st Mar 2022
– Assessee own no residential property till section of loan.
– Not claiming any amount under income tax section 80EE.
– Loan from Financial Institution only.
80C
Rs 1,50,000
Home Loan Principal
– Property should not be sold within 5 years of possession.
So If you claim all tax in all above components, you will be able to claim a maximum income tax deduction of Rs. 5 Lakhs
Moreover, let’s take a look at summary of other options to save income tax:-
Section
Description
Annual Deduction Limits (In Rs)
80C
Following are the instruments comes under it
150000
80CCD
Investment in National Pension System (NPS), Atal Pension Yojana (APY).
50000
80D”
Premium paid for medical insurance for self, spouse and children.
25,000(50k if age is above 60)
Premium paid for medical insurance for parents.
25,000(50k if age is above 60)
80E
Interest paid on education loan for self, spouse or children. Interest paid for a period of 8 years only.
No Limits
80EE
Interest for the first time home owner. Home value should be <=50Lac and Loan value <=35 Lac.
50000
80G
Donations to various govt. approved charities, social and govt. organizations. (50% amount can be claimed for some organization)
Max 10% of gross annual income.
80GG
House rent paid, where individual not getting HRA and not owning any property.
Rent paid minus 10% of total income, 25% of total income or 5000 /month whichever is lesser.
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Leading banks of India namely State Bank of India (SBI), HDFC Bank, ICICI Bank, IDFC First Bank and small finance banks such as Jana Small Finance Bank, Utkarsh Small Finance Bank and Suryoday Small Finance Bank are currently providing higher interest rates on fixed deposits. Bank like fixed deposits called Post Office Time Deposit is also an alternative for long term investors who want to reap guaranteed returns against their deposits. The interest rates on these deposits are kept unchanged for the quarter of March 31, 2021. But when it comes to fixed deposit investment for both the general public and senior citizens which can be a good bet here. Let’s find out.
SBI FD Rates
SBI FD tenures range from 7 days to 10 years. For the general public SBI FD interest rates range from 2.9 percent and 5.4 percent w.e.f. January 8 2021.
IDFC First Bank FD Rates
The new FD interest rates of IDFC First Bank are valid as of September 15, 2020. IDFC First Bank provides short-term FDs of between seven days and one year and long-term FDs of between one and ten years. IDFC First Bank has a spread of 2.75% p.a. 5.75 percent p.a. For deposits with a period of between 7 days and 10 years. For the same tenure senior citizens will be provided an additional rate of 0.50 percent over and above the standard rates.
HDFC FD Rates
The current HDFC FD Rates are in effect from 13 Nov 2020. For the general public the deposit rates are capped between 2.5% to 5.5% for a tenure of 7 days to 10 years.
ICICI Bank FD Rates
ICICI Bank FD Rates for the general public and senior citizens are capped at 2.5% to 5.5% and 3% to 6.30%. The current rates with effect from Oct 21, 2020 are as follows:
5 Best Corporate FDs
Company fixed deposits, also at a slightly higher risk, are popular, but this may be a concern for investors who wish to achieve higher returns than bank fixed deposits. However, just like FDs, interest on corporate FDs is fully taxable according to the tax slab rate of the investor. Typically, we still say that it is possible to accept AA or AAA-rated FDs, which means that the standard of security in terms of maturity is strong.
Small Finance Bank FDs
Fixed deposits are a major stream of investments to get guaranteed returns. In general, interest rates on FDs vary depending on the capital deposited, maturity of the deposit, type of depositor and etc. As compared to commercial banks, small finance banks usually offer higher interest rates on fixed deposits. At present, some banks have interest rates on FDs ranging from 2.5 to 7.5 percent.
Jana Small Finance Bank FD
Jana Small Finance Bank supports an interest rate of between 2.5 percent and 7.50 percent on FDs ranging from 7 days to 10 years. An additional interest of 0.50 per cent is provided by the bank to senior citizens. This bank is now offering senior citizens an interest rate of 4 percent to 8 percent, respectively. The best interest rate on deposits maturing in two to three years is provided by Jana Small Finance Bank. The bank gives the general public and senior citizens an interest rate of 7.25 percent and 7.75 percent, respectively, for these deposits. The bank’s FD interest rates given below are valid as of Dec 22, 2020 and are valid for a deposit sum of Rs 2 Cr.
Utkarsh Small Finance Bank FD Rates
Utkarsh Small Finance Bank provides interest rates ranging from 3 percent to 7 percent to the general public and 3.50 percent to 7.50 percent to senior citizens on FDs maturing in 7 days to 10 years. The bank pays the best interest rate on deposits with a maturity period of 700 days. The bank pays a 7.0 per cent interest rate on these deposits. Senior citizens get an additional 50 basis points for these deposits. The interest rates listed below on Utkarsh Small Finance Bank’s FDs are effective from Oct-19.
Suryoday Small Finance Bank FD Rates
Suryoday Bank FD rate ranges from 4 per cent to 7.50 per cent for the general public. The bank pays the highest interest rate, i.e. 7.5 percent, on deposits maturing in 5 years. Suryoday Bank’s existing FD interest rates are valid as of September-19.
Post Office Time Deposit
Just like a standard fixed deposit scheme of a bank post office time deposits come with a tenure of 5 years. Across the tenure of the post office term deposit depositors earn guaranteed returns. For a one-year deposit to three years, the post office term deposit pays an interest rate of 5.5 percent. For a five-year time deposit account, the Post Office pays an interest rate of 6.7 per cent.
Our take
Fixed Deposits (FDs) are part of your personal finance space, and thus it is very important to consider guaranteed returns and deposit tenure first instead of higher interest rates. So it’s a smart strategy to invest in the post office time deposit scheme instead of the bank fixed deposit when it comes to deciding between bank deposits and post office deposit because the post office small savings schemes are 100% backed by the government. Whereas insurance cover for bank deposits is offered by DICGC, a subsidiary of the Reserve Bank of India. For both the principal and interest amount, each depositor in a bank is insured to a limit of Rs 5 lakh. From the above contrast, it is obvious that with Post Office FDs, you will have a high degree of safety if you wish to invest an amount of Rs 5 lakhs or above.
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In the Union Budget 2021 announced by the Finance Minister, there has been put new tax limitation. And for any contribution to PF over Rs. 2.5 lakh in a year, interest accrued on it will now draw tax implication.
EPF Rule Change From April 1, 2021: All You Should Know
EPF or employee provident fund has been started off a social benefit scheme towards which both the employee and employer contribute proportionately i.e. 12 percent of basic pay and dearness allowance. So, broadly what remains is contribution of up to Rs. 2.5 lakh towards the EPF kitty remains tax-exempt.
Why tax on EPF contribution over Rs. 2.5 lakh?
The government is already facing revenue deficit and it has a bigger role to play to uplift the overall economy and amid it as iterated by Archit Gupta, founder and chief executive officer, ClearTax, ” paying tax free interest on provident fund becomes more and more unsustainable, the government wants to curb high income earners from self contributing more to their PF accounts,” said.
How will we be impacted from the move?
Typically high income earners making an annual income of Rs. 20.83 per year shall be hit largely. Here what is to be noted that for the said tax implication only employee’s contribution is taken into account and not the employer’s component.
EPF Tax rules as in the current regime
Interest on EPF as of now is currently exempt from tax implication. So, as per the new ruling salaried class either earning a good salary or making a higher contribution to the fund shall draw tax implication on the interest component (in case the employee contribution is higher than Rs. 2.5 lakh in a year).
What would change for EPF from April 1,2021?
So, primarily those making a larger contribution to the VPF account shall also be hit.
“The big-ticket money which comes into the fund and gets tax benefit as well as assured about 8% returns that would come under the tax ambit,” finance minister said.
The move thus puts its focus on large tax free interest accrual which was not taxed on withdrawal either.
GoodReturns.in
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Paytm Money charges a fee for opening a Demat and for digital KYC.
To open a trading and Demat account with Paytm follow these easy steps:
1. Log in with your Paytm Credentials- (Paytm registered mobile number or email ID)
2. Enter your PAN & check KYC status.
3. Get a confirmation link via SMS.
Invest in Stocks
Investors can create and configure several watch lists to track real-time price changes for up to 50 stocks. By scheduling buying orders on a weekly/monthly basis, consumers can also automate stock investments. With the built-in trading calculator, the investor can find the exchange costs and know the exact breakeven price to profitably sell stocks. To make the stock trading process more enjoyable, sophisticated charts and other options such as cover order & bracket order have been included. There is an option to get in-depth financial & historical price data for every listed company. Paytm Money follows a clear brokerage model where it charges a flat Rs 10 or 0.05 percent (whichever is lower) per order executed. The nominal fee for brokers per order is Rs 10.
Apply for IPO
There are a lot of startups that are raising funds and are coming up with IPOs this year. Using the Paytm money app you can invest in IPOs easily. When you log in to your Paytm Money app, you will be able to see a list of past and upcoming IPOs where you can register for IPOs that are available for applications. You can add details for bidding such as quantity, amount, and so on. Note that a maximum of 3 bids is allowed. Enter UPI id so that the funds of your highest bid are blocked. You will get the same mandate on your UPI app. When the allotment happens, you will be informed of your assignment status.
Invest ETFs
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Buy Gold
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Buy Mutual Funds
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Buy ELSS
Save your tax using Paytm Money. Equity Linked Savings Scheme Schemes are diversified equity funds that have the dual purpose of saving taxes and building capital over the long term. Paytm Money provides direct tax benefits of more than 35 AMCs. These funds have a mandatory lock-in period, you should be prepared to remain committed for that time and to arrange your financial arrangements accordingly. You can choose to invest only in commission-free direct plans and download tax statements instantly to submit as tax-proof.
Invest in NPS
Paytm Money is one of the first online platforms in the country to offer the National Pension System (NPS) on its app. It also received approval from the Pension Fund Regulatory and Development Authority (PFRDA). Investing in NPS can be a major step towards a stable post-retirement life in a tax-efficient and cost-effective way. And investing in NPS by Paytm Money is as smooth and easy as ever.
Kinara Capital has secured $10 million (Rs 74 crore) from IndusInd Bank with a 100% guaranty from the U.S. International Development Finance Corporation (DFC). This investment to be utilised towards the expansion of MSMEfinancial inclusion across manufacturing, trading, and services sectors in India.
“Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India. MSMEs galvanise India’s economy with income generation and job creation and there is an ever increasing demand for financing for businesses to rebuild and grow this year. This investment from IndusInd Bank and DFC will accelerate financial inclusion of small businesses, thereby invigorating local economies,” said Hardika Shah, Founder & CEO, Kinara Capital.
The total amount of $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division. This three-way partnership between Kinara Capital, IndusInd Bank and DFC unites the organisations’ shared goals to promote entrepreneurship, financial inclusion and job creation.
“We are glad to have associated with DFC to support a strong impact creating entity, Kinara Capital, in their growth trajectory. The guaranty from DFC eliminates foreign exchange rate fluctuation risk from the balance sheet of Kinara and it has become an important tool to mobilise debt funding for impact space companies,” said Roopa Satish, Head, Corporate & Investment Banking, CSR & Sustainable Banking, IndusInd Bank.
“Commitment towards financial inclusion from Kinara Capital has made it possible for us to collaboratively help India’s small business entrepreneurs. We are motivated by the high potential and the high prospects of the diverse MSME sector in India and proud to partner with both IndusInd and Kinara Capital,” said Loren Rodwin, Managing Director, Social Enterprise Finance Team, Office of Development Credit at U.S. International Development Finance Corporation (DFC).
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