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Breaking Stereotypes: The Future Of Finance And Tech Is (And Will Be) Women

Work culture in organizations is gradually moving towards diversification and inclusion. The current times are witnessing gender stereotypes bring identified and shattered in the wake of gender sensitization and diversity. Organizations across the globe are making concerted efforts towards the goal of equality of opportunity. Still, equality at workplaces is a far fetched dream. Take for instance the case of the US, where: 

Yet they earn lower salaries and fill up fewer seats in male-dominated professions like technology and finance. Fortunately, these stereotypes – those of women typically avoiding math, science and often all things logic – are on the verge of shattering.

A study conducted by the global research organization Catalyst stated that among Fortune 500 companies, the companies which had the highest number of women directors on board have shown better financial results and those having at least three women on their board have stronger-than-average results.

Gender Stereotyping deeply impacts the psyche and confidence of the female workforce. As per research, by the age of 6 years stereotypes regarding intellectual ability take root in girls. Girls identify themselves less with STEM subjects (Science, Technology, Engineering, and Mathematics). At the workplace, women find a less conducive environment to hold leadership and skill-based jobs, share their ideas in discussions concerning these subjects. 

Indian Scenario: Tech

The current Indian scene has begun a positive, and hopefully soon – pretty picture: 

  • Women representation in corporate jobs has increased from 21% to 30% in a span of five years, as posted in  Zinnov-Intel Gender Diversity Study 2019
  • Females are represented higher in non-technical roles at 31%, while in technical roles their share is 26%. 
  • Only 11% of the C-suite positions are held by the women, they were represented at  20% in mid-roles and 38% in junior roles. 
Women's Day

If these stats are compared with the global figures, Indians are surely taking strides in leaps and bounds to cut across cultural misfits and gender Stereotyping issues. As per a NASSCOM study of IT professionals and middle management from companies of Europe and India, 35% of the people with specialist technology roles are women in India as compared to a mere 17% female representation in Europe. 

Several organizations like Oxfam India through its campaign Bano Nayi Soch are all in for progressive ideas that subvert the norms of patriarchy.   

In 2016, Facebook initiated recruitment practices focused on bringing in black and female workers into their workforce – in who now make up 36% of its workforce. Sheryl Sandberg, COO of Facebook and the only woman on their board posits the concept of ‘leaning in’ in her recent book as the idea of being ambitious in any pursuit.  

Kiran Mazumdar Shaw, the CEO of Biocon and the first woman billionaire entrepreneur, reiterates that there is no dearth of talent in meritorious women and even though a small minority, they are well respected and worthy of inclusion. 

Indian scene: Finance

Women are considered excellent investors, but female representation in the finance sector remains meager. A CFA Institute Gender in Investment Management study shows a mere 11% representation of women investment professionals in the industry.  Research across the globe has proved how a culturally rich and diverse workforce delivers optimum results and lower risks for investors. Experts cite several pros of getting the women included in the workforce. 

  • Firstly, female inclusion will tend to bring in newer perspectives into the industry that can usher in a new revolution in the industry. Quality of output and decisions will definitely see improvements. 
  • Gender diversity can lead to innovations and rethinking of the old investment strategies that are sure to impact investment outcomes. 

Several initiatives have been taken to improve the involvement of the females at all levels. For instance, Young Women in Investment, India’s first initiative seeks to create female awareness and interest in the investment management industry. The initiative focuses on presenting investment as a long term viable career option to the women. The success and support of this initiative have definitely paved the way for the inclusion of females in the future of finance. 

Initiatives to Break Stereotypes

While we’re doing well, there can be several initiatives that can make the future of tech and finance into a substantial female-centric arena: 

  • Tech can be leveraged to advance gender parity and women empowerment in a number of ways. The development of the gig economy is offering a contingent workforce that is sure to lessen such gaps in the future. 
  • Unlearning the biases in our mindset and doing away with gender stereotypes will be a daunting task that would demand our attention towards sustainable and all-inclusive economic growth. 
  • A survey conducted by Unilever showed that 77% of men and 55% of women felt that men are best suited for high-stake projects. Such views deeply impact gender parity issues. Marketers and media need to stop the sexist portrayal of women. 
  • Social, political and cultural fronts should take it upon themselves to curb these formative practices of stereotyping and expose both the genders to all kinds of non-traditional fields like tech or finance to let them make their decisions rationally. 
  • There is a dire need to bridge the skill gap among women by taking advantage of digitization and tech innovations. The global “talent shortage” is currently at 38%, with the top ten hardest jobs to fill in STEM professions. The focus has to shift to building competencies and skillsets among women. 
  • Another key area of concern is the online representation of women. There are 250 million fewer females present online as compared to males. Connecting and bringing greater access to regions with no internet can bring about unforeseen opportunities and can even act as catalysts synthesizing women’s inclusion in tech and finance. 

The instilling of the right temperament among the youth holds prime importance as the majority of them make their career choices by the age of 26 as per a survey. Women do not lack in tech or finance skills and knowledge, what they lack is the proper nurturing environment enabling them to fulfill their dreams sans any bias or stereotyping. Once the institutions of today get in sync with gender equality and diversity themes, the potential and opportunities awaiting women in tech and finance can be attained.
And we can surely hope for a feminine era in finance and technology awaiting us in the near future. 

“You are fierce, bold and daring! Also, the best when it comes to caring.”
Happy Women’s Day!

Featured

Spouse In The Same Office: A Closer Look At The Implications for HR

Compiled By: Sandeep Raghunath
About Sandeep: He is the Head of Human Resources at EarlySalary, with 10+ years of international experience in HR across industries.

It is perfectly natural for a professional to fall for another if they’re working in the same office, or are spending a significant amount of time together. Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction. While they may be frowned upon, relationships within an office setting are far from uncommon. Some partners even often end up getting married. 

In this context, however, the HR function isn’t expected to remain out of the loop. Organizational policies, cultural sensitivities, etc – there are many factors influencing the HR functions’ role in managing professionals with a spouse in the same office. How can they approach this? Let’s look at some important aspects.

Disclosure of relationship

It is vital to maintain an environment where it is known that keeping a relationship or marriage secret is not in the interest of the company and can have larger implications. According to Sarah Churchman, head of diversity and inclusion and employee well being at PwC, the only way to manage relationships is for the couple to be totally out in the open. “If they don’t inform us, someone else in the department will. Not because they are necessarily behaving in an inappropriate manner, but simply because they may fear a problem with favoritism.”

Some enterprises have a policy in place allowing for managers to be demoted, transferred or even dismissed in the case of the manager being in a relationship with their direct report without disclosing the same. It is, therefore, essential that an office couple is made to sign out a disclosure form with the HR Department. This allows for a line of communication between the office and the parties involved and also serves as a formal notice of their relationship. It also prevents misinformation and rumor-mongering in the workspace which hampers productivity. 

Different organizations have varying HR policies on how they deal with a spouse at the same office. If a company is strictly against work relationships, one of the spouses can be dismissed, though it would not be a popular move and discourage transparency. “You can’t legislate against office romances or indeed falling in love, and an outright ban would be totally unworkable,” says Churchman.

It is imperative for a company to have a policy on office relationships and furthermore ensure that all employees, especially spouses, get familiar with these and abide by them at all times during work hours. This includes coffee breaks, lunch breaks, business trips, etc.

Personal life and Professional life

The need to maintain a professional relationship between spouses in the same office space is vital. Often, the hardest battle in managing office relationships is inculcating the need to strike a balance between personal life and professional life. According to a research “on flirting at work” conducted by Amy Nicole Baker, an associate professor of psychology in University of New Haven, and an author on workplace romance papers, it was found that people who frequently witness other colleagues flirting often feel less valued by the company and have a decline in job satisfaction. This feeling of discomfort can also lead to many quitting their jobs. In order to prevent others from being uncomfortable and thus putting oneself under the radar. 

Spouse In The Same Office: A Closer Look At The Implications for HR
“Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction”

Public displays of affection and flirtatious conversations can disrupt the working of the office and reek of unprofessionalism. It is essential to treat your spouse like a regular colleague within office hours and even in work parties, off-sites and other such events which are an extension to the office workspace.

Senior-Junior Relationship

In the case of a senior and subordinate getting married, the need for professionalism is critical in order to prevent conflict of interest. According to most office guidelines – it is necessary for the senior spouse not to be involved in the appraisal or evaluation of their partner. The two must not work together in the same department in order to curb the space for favoritism and nepotism within the workspace. There is also a potential threat to the security of confidential client information and the risk of information leaks.

To avoid the occurrence of favoritism, one spouse should be transferred to another department, and ideally, no couples should work together in the same department.

Divorce

The unfortunate scenario of a married couple splitting up can have deep repercussions on their work ethic, their behavior in the office as well as the office environment itself. The disclosure form should specify what would happen to both the parties in case of this occurrence. The way two ex-partners are treated in the office also deserves attention. They might act in a more isolated nature and may be unable to maintain good performance. This situation is a nursing ground for potential blame-game and office politics. This difficult period of the employees’ life should be battled with care and acceptance. They might not need advice and might need someone to listen to them in order to clear their mind and concentrate during work hours. In case of poor performance, they should be nudged towards the direction of working better and given gentle reminders instead of indifferent statements like “Your divorce is not our problem.”
Perhaps an Employee Assistance Program to help deal with such traumatic instances is worthy of consideration from employers.

Featured

Can Millennial Stress be Resolved by Financial Wellness?

Stress is an issue bigger than ever for millennials, who are rushing ahead with their worklife, finding little time to enjoy the intricacies of life. They are not only toiling themselves with projects, preparing reports and meeting targets, but also when off the work they busy themselves worrying about their debt, savings and expenditure.  India has been, off late, a very volatile economy with companies shutting down production and filtering out chunks of employees. As such millennials are forcing themselves to work in return for poorly paid salaries and unsatisfactory job environments. In most of the cases, they are not able to manage their day-to-day expenses and have to revert to debt; while in other cases are confused about their financial course.

A whopping 76% of Millennials say they are experiencing financial stress, up 23 percentage points from 2018, according to the PwC 2019 Employee Financial Wellness Survey.

Financial stress is the top contributor in affecting employee health and morale followed by their jobs and relationships. Matching your salary with your expenses is only the tip of the iceberg, when cash flow and debt issues add to the worries. Employees are worried that they are not able to save enough and will face or are facing a financial crunch. Let’s look at the major issues hounding today’s millennials in terms of finance:

Past concerns  

With higher education becoming more expensive each year, an increasing number of new employees enter the corporate sector already laden with the burden of huge debt in the form of education loans or personal loans. As per Workplace benefits report 2017, 40% of millennials say that they left high school and college unprepared for the real world. As such they look upon their employers for the necessary guidance and help related to a majority of topics around financial wellness. 18% of millennials want more help with their student loans.

In some cases, these debts may be gifted down from one generation to another. A son may have to pay off a home loan or some other debt incurred by his father. These circumstances dilute the finances and millennials find it difficult to lay away the stress.

Present concerns

According to the 2017 Workplace Benefits Report, a significant number of Millennials say they feel unprepared to manage their finances and need help with topics across the financial wellness spectrum, including saving for retirement (43 percent), general savings help (40 percent), paying down or managing debt (34 percent), saving for major expenses (36 percent) and budgeting (31 percent). 

Peer pressure, maintaining the status quo and lavish lifestyles often lead millennials to the brink of a financial crisis if they do not plan their finances well in advance. Many are highly ignorant about how to proceed with investments; banks or mutual funds, long term or short term, commodity or shares, and a lot more. About 43% feel that they require more help with investing, 40% wanting more information on how to save taxes and 21% feel that they want to save more. It’s an additional issue when they require funds in a lump sum for unforeseen expenditure or a major purchase. They either trap themselves in instalments or else fall in a debt trap. 63% of Millennials consistently carry balances on their credit cards and two out of five have trouble making minimum monthly credit card payments.

Future Concerns

Besides provident fund schemes, gratuity and a few other benefits, employees aren’t assured adequately about their future. They remain concerned about their retirement and pension, their children’s education, medical expenses and a lot more. Pension schemes are offered by insurance firms, but which one is best suited remains a matter of concern. Career opportunities and growth also impact future and present decision making. Not surprising then that employees, especially millennials, find themselves to be dependent on their employers.

Why should employers take up financial wellness programmes?

Financial stress not only impacts an employee on a personal level, but his working capabilities and mental faculties get impacted too. Stress can be behind severe health concerns that may lead to employee absenteeism, employee turnover, and dissatisfaction. The issue of financial health becomes of utmost importance to keep the solubility of the firm intact on one hand and to achieve common organisational goals on the other. As per a survey, an employee spends 12 hours on an average each month stressing about their finances. 

Bank of America Merrill Lynch report says that the lack of confidence in financial matters affects Millennials’ workplace behavior. On average, employees spend 3 work hours each week (12 hours per month) dealing with financial stressors.

A well thought of and structured wellness programme may act as a tonic for the employees’ financial health:

#1 Making an in depth study of employee concerns before finalising on the mode the financial programme is critical. Not everyone shares the same crisis, and not everyone will desire third party approvals or advice before taking decisions. A financial assessment is essential before you initiate the program and want it to succeed. This can be an eyeopener for those employees who may have been unaware of the causes of their financial stress and will make them ready to adopt the new financial course.

#2 Educating employees about financial health and other resources should be taken care of as well. This can be one through seminars, online courses, or even lectures and classes conducted by an expert or professional.

#3 The employees must be educated on healthcare costs as well. It doesn’t hurt to take this opportunity to promote healthier lifestyles as well. This can save them a lot in the long run. Group insurance schemes and health insurance schemes should be encouraged as a norm in the organisation.

#4 Financial debt management, especially the management of student loans, is another area of focus. Employers, if possible, could even consider taking it upon themselves to sort out the education loan or debt of the employees as a gesture of goodwill. This can be offered as an employee benefit as well. Executed right, the company can go a long way in earning the reputation of being the best in class when it comes to their employees’ welfare.

#5 Then comes the basic question of managing the current expenses such as installments, deductibles, premiums and other expenses. There are several paradigms involved in financial planning and it can be overwhelming for a millennial who has just been placed on his job.

Encouraging employees to take part in these programmes and letting them get involved through participation, and one on one discussion will assist them in reducing their financial stress. The overall focus of the employee can shift to organisational task boosting his productivity and overall efficiency. At the individual level, it will boost their confidence to manage their current expenses and plan for their future expenses in advance. Financial wellness programmes can, therefore, help in improving employee health and quality of life. A healthy and financially sound human resource can be an unending source of profitability and efficiency for any enterprise.

Continued Role Of HR In Health And Wellbeing

Highlight: Learn how HR executives and companies may improve employee mental health and well-being, as well as why these issues have become significant priorities since the pandemic began.

We’ve known for over a year that this pandemic has had an impact on mental health and well-being. It’s all over the news, and many papers have been written to investigate it. 

According to research, pandemic-related mental health difficulties have impacted people differently, with pandemic stress disproportionately affecting various racial and ethnic groups. It is natural for people to be concerned about their jobs from time to time. Perhaps they were looking for a raise, or perhaps there were rumors of layoffs. Things like this could act as a catalyst, causing a cascade of circumstances that lead to mental illness.

HR and mental well being

Mental Health can be a very complicated and personal subject in the workplace, and HR employees must grasp it completely in order to not only recognize when someone is struggling but also to know how to manage the situation delicately and effectively. We spend billions on ‘health and safety,’ but we seem to overlook the ‘health’ aspect and focus solely on physical security. Even if the mental health of a workforce isn’t prioritised enough, a company should at least recognize that our supply chains can only function if people are able to wake up and go to work every day.

Mental Wellbeing in a workplace doesn’t mean diagnosis and treatment

A widespread misunderstanding about promoting positive mental health and wellbeing in the workplace is that doing so entails diagnosing, treating, and psychoanalysing your employees. To help your employees’ or colleagues’ mental health and welfare, you don’t need to diagnose them; all you need to do is be aware of their typical behaviours and be alert to any changes. You don’t have to figure out what’s wrong if something doesn’t feel right, but you should definitely address it.

And this is the part that many employers appear to be afraid of: dealing with the problem. There appears to be a notion that discussing mental health can exacerbate the situation.

So, if you want to make a modest impact on your employees’ mental health and well-being, what should you do? Start by removing those Sigmund Freud images and simply attempting to learn how your staff is performing on a daily basis. From there, you can expand it. 

Roll out programs to understand your employees

Of course, it’s unrealistic to expect to be able to ask every single employee how they’re doing each day if you run a company with thousands of people. It’s also unrealistic to expect you to get to know each employee on a personal basis. That isn’t to say you can’t do something to assist your employees. However, there’s one common issue that seems to be plaguing all workers alike since the pandemic started and it is employee burnout, especially for the remote workforce. Here’s how you can recognize and manage employee burnout at your company.

Moreover, Leena Nair, Unilever’s Chief Human Resources Officer, began her efforts to improve mental health and wellbeing throughout her company by implementing a programme to assist employees to better understand one another. Unilever sent 3,000 employees through their mental health championships programme to assist the company’s efforts, but not before they’d assisted the majority of their employees in starting a conversation with one another. This not only helps the employees understand their colleagues better, but it also brings about productive discourse related to several sensitive issues in the workplace.

HR in Health: Some Important points to remember

  1. One size doesn’t fit all – There is no such thing as a one-size-fits-all solution, at least when it comes to mental health and wellbeing programmes. A single programme cannot simply be taken out of a box and expected to function across the board. While you may want to direct the broad ideas, you’ll need to let local leaders adapt them to the people they’re responsible for.
  2. Upper management needs to be involved – You can’t do this as a side project and expect the needle to move; you need real personnel and real resources, which means bringing in the top table.
  3. The evaluation of results is important – If you want to keep having an impact, you need to track the results you’re getting. Whether it’s measuring employee engagement through your Employee Assistance Program, documenting employee feedback during your yearly survey, or simply monitoring general productivity and engagement across the company. Results measurement will help you gain more buy-in and will become an important aspect of your HR strategy.

When it comes to combating mental health in the workplace, how crucial are HR and its functions? In a nutshell, it’s absolutely fundamental. Employers today have a legal as well as a moral obligation to care for their employees, whose well-being is inextricably tied to a company’s success.

HR professionals will directly contribute to a decrease in the number of working days lost each year due to mental ill-health by having the correct level of understanding during recruitment, monitoring, and absence of employees. They will also save employers money, and most importantly, will result in a content workforce.

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Need 1 Lakh Rupees Emergency Loan Urgently? Apply Here

Highlight: Get an emergency loan within minutes of application and approval with minimal documentation, liberal eligibility criteria, flexible repayment options.

On a day-to-day basis, we face many unpredictable situations. At times we stumble upon unfortunate situations we don’t see coming at all. And there are times when these unpredictable situations need resources, most importantly money. Not everyone is ready for an uncertain situation and has a safety net to rely on. Sometimes people have a particular emergency amount saved up. At other times, they run out of these resources in no time. Here is when emergency loans can be considered as a course. 

Emergency loans help such people who need instant cash during various unpredictable situations like medical emergency, car repair, or any other personal emergency with genuine concern. Banks and Non-Banking Financial Companies can provide you instant money after a set of documentation is completed and verified during this period of time. Irrespective of the purpose of the loan, applying for an emergency is always efficient and hassle-free due to the nature of the situation.  

When should you consider an emergency loan?

Emergency loans are exclusively designed to help you financially during emergencies. However, these emergencies can be subjective to different customers and situations. These collective situations are categorised for a better understanding of the customers.

  • Home expense/ repair/ maintenance – running a house can be expensive and requires a lot of damage control, maintenance, and even fixations from time to time. Home expenses can turn up anytime without any indications and can require a lot of money, for example, water leakage, repairing of appliances, severe damage due to weather conditions, Etc. To address this problem quickly without delaying it due to a shortage of money, turning towards an emergency loan can be logical. 
  • Medical emergencies: medical emergencies are inevitable and require a lot of money when the emergency comes to the point of surgery, extensive treatment, or rare medical care. These situations also require quick money; this is when emergency loans can help you deal with the situation efficiently.
  • Uncertain miscellaneous situations – we deal with many unexpected situations that we are not ready for financially, such as funerals, unexpected travel, Business needs, Etc. Such situations can be dealt with using emergency loans. 

Advantages of an emergency cash loan

  • Quick processing: This loan is called an emergency loan for a reason. When dealing with such situations, people expect instant money without any bare minimum processing time. This type of loan requires the least amount of time to process and verify, making it easy for the customers to access the money they applied for.  
  • No minimum credit score: Your credit score can always be a barrier when applying for a loan in every other financial institute or bank. The most significant perk of an emergency loan is that it can help you raise your credit score if repaid in time. The no minimum credit score policy will make it easier for an applicant with a low credit score and not be a barrier when applying for an emergency loan at EarlySalary. However, it has to be noted that your credit score will be referred to when deciding the applicant’s interest rates. 
  •  Easy application: Applying for a loan can be a lengthy and tedious process. Here at EarlySalary, the application process is kept to a minimum for quick processing and can be completed online within minutes

Eligibility for applying an emergency loan at EarlySalary 

While applying, the applicant must fit in the liberal eligibility criteria set by EarlySalary. 

  • Should be a resident of India.
  • The applicant must be in the age range of 21 to 55 years. 
  • The applicant must have an income of 18000 INR (metro cities) and of 15000 INR (Non-metro cities)

Document requirements:

  •  Identity proof: PAN Card/Aadhar card
  • Permanent address proof: Voter card / Utility bill / Driving license/ Passport.
  • Last three months’ statement with salary credits.

5 reasons why you should apply for an emergency loan with EarlySalary

  1. Get an instant loan right from 5000 INR up to 500,000 INR, which is easier for any cash transactions within 10 minutes of an approved loan. 
  2. After downloading and registering on the EarlySalary app, apply for a loan and get the money transferred to your bank account in minutes. 
  3. Get EarlySalary perks of coupons and easy EMI’s at 0% interest while shopping from applications like Amazon and Flipkart.
  4. Liberal eligibility and easy online application with no repayment charges. 

EarlySalary provides you the same services fit for an emergency that can get you the money you need instantly with flexible repayment options. 

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How To Get Personal Loan With Low Salary

Highlight: Even if you have a low income, you can apply for a personal loan. Learn how to get a personal loan with a low income.

A financial emergency can occur at any time. But even without those occurring, you may need to take out a personal loan to achieve several of your life goals. This type of loan can be used for anything from a wedding to paying for a child’s education, purchasing a gadget, or even a medical emergency. It is entirely up to you to decide what you want to do with it. That’s why it’s called a personal loan, after all.

Banks do not require any collateral when you apply for a loan, as you may be aware. As a result, it’s classified as an unsecured credit service. It requires the same minimal documentation as a credit card loan. On loans, banks charge a fixed interest rate.

What is a personal loan?

When you apply for a personal loan, you are asking a lending institution, such as a bank or credit union, to lend you a specific amount of money. A personal loan can be used for a variety of purposes, unlike a mortgage, which must be used to pay for a home, and an auto loan, which must be used to finance a car purchase. You could use it to pay for college or medical expenses, a major household item like a new furnace or appliance, or to consolidate debt.

Personal loan repayment is not the same as credit card debt repayment. A personal loan requires you to pay fixed-amount installments over a set period of time until the debt is completely repaid.

Before you apply for a personal loan, you should be aware of the following terms:

  • Principal: The amount you borrow is referred to as the principal. For example, if you apply for a $10,000 personal loan, the principal is $10,000. The lender uses the principal you owe to calculate the interest you’ll pay. The principal amount of a personal loan decreases as you repay it.
  • Interest: When you take out a personal loan, you agree to repay it with interest, which is the lender’s “fee” for allowing you to borrow money and repay it over time. In addition to the portion of your payment that goes toward paying down the principal, you’ll have to pay a monthly interest charge. In most cases, interest is expressed as a percentage rate.
  • APR: “Annual percentage rate” is what APR stands for. When you take out any type of loan, the lender will typically charge you fees in addition to the interest. The APR takes into account both your interest rate and any lender fees to give you a more accurate picture of your loan’s true cost. APRs are an excellent way to compare the affordability and value of various personal loans.
  • Term: The term refers to the number of months you have to repay the loan. When a lender approves your personal loan application, they’ll let you know what interest rate and term they’re going to give you.
  • Monthly payment: You’ll have to pay the lender a monthly payment every month during the term. This payment will include a portion of the total interest you’ll owe over the life of the loan, as well as money toward paying down the principal of the amount you owe.
  • Unsecured loans: Personal loans are frequently unsecured loans, which means you don’t have to put up any collateral. The real estate you’re buying serves as collateral to the lender when you take out a home or auto loan. It is usually only secured by the borrower’s or cosigner’s good credit. Some lenders, on the other hand, offer secured personal loans, which require collateral and may offer better rates than unsecured loans.

What is the maximum amount of a personal loan that a salaried individual can obtain?

The maximum loan amount is entirely at the discretion of the bank. Some banks provide personal loans up to Rs. 50 lakhs, while others limit them to Rs. 25 lakhs. If you are a salaried employee, you can apply for a personal loan based on your annual earnings. The bank has complete discretion in determining the loan amount.

Suppose your monthly income is between Rs.20,000 and Rs.25,000, for instance. Banks calculate your EMI to be approximately 45-50 percent of your monthly income when it comes to monthly repayments. As a result, your personal loan’s average EMI will be around Rs. 12,5000.

Is it possible to get a personal loan with a monthly salary of less than Rs. 15,000?

Yes, you can get a personal loan with a low salary. Individuals with low incomes are frequently faced with a cash crunch due to a plethora of financial responsibilities. Low wages can be a barrier when applying for a personal loan; however, some banks or platforms like EarlySalary have come to your rescue to alleviate your concerns.

Even if your monthly income is less than Rs. 15,000, you can easily qualify for the loan.

Conclusion

Before you apply for a personal loan with a low income, review the eligibility criteria, monthly EMIs, loan processing fees, and your credit score, among other things. 

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Mistakes To Avoid While Buying/Purchasing Second Hand Car

Highlight: Buying your first car is a big step, especially if you’re looking for a second-hand car. Here are some common mistakes to avoid when purchasing a used car.

The second-hand car market is huge and growing in popularity all the time. This is because first-time car buyers and second-time car buyers now have more options, ranging from basic to luxury models, at much more affordable prices. Cars depreciate quickly, so many car owners who have high-quality, well-performing vehicles sell them for a low price in order to purchase something newer or better in the market. This means that a near-new car can be purchased for a much lower price, which is why used or pre-owned cars are so appealing to buyers.

Purchasing a used car, on the other hand, can be far more difficult than purchasing a new car from a showroom. As a result, prospective buyers of a used vehicle must be much more cautious and aware when making a purchase, or they can risk purchasing a major headache.

Making a mistake when purchasing a used car can be very frustrating and troublesome, as it can cause a slew of issues while you own the vehicle and cost you a lot of money in repairs and maintenance. If you are not careful, you will end up with unnecessary hassles and a bad ownership experience in general if you do not avoid the common mistakes that used car buyers make when purchasing a vehicle. 

As a result, if you’re looking for a second-hand car, it’s critical to avoid making these costly mistakes.

The following is a list of the five most common mistakes that buyers make when purchasing second-hand cars:

Ignoring the vehicle history report

Most used car buyers are aware that checking the vehicle history report is essential to know exactly what you’re getting and whether it’s worth the asking price. However, there may be some careless individuals who have no idea what a vehicle history report is. This is a must-do because you want to know everything the car has been through, such as accidents, being submerged in floodwater, massive repairs, whether it was a single hand-operated car or was used as a rental car by multiple drivers, the exact kilometers it has driven, and so on. As a result, the vehicle history report is critical for accurate information. 

Not taking into account fuel efficiency

Pre-owned car buyers frequently make the mistake of overlooking the vehicle’s fuel consumption. Some buyers start their search for a good used car that provides good fuel efficiency but then forget about it and end up with a fuel-guzzling vehicle, like a tough but low-mileage-return SUV.

When fuel is so expensive, don’t ignore a vehicle’s mileage rating in today’s time. Because older vehicles will always have more problems than brand new ones, it’s best to opt for fuel-efficient vehicle models so that you can enjoy an overall cost-effective car ownership experience.

Ignoring the vehicle inspection report

Another must is to have a pre-owned vehicle thoroughly inspected. If the car has been inspected, you can simply look at the inspection report, which should be available at any car dealer. If the dealer does not have it, you should either walk away or have the car checked by a professional mechanic at your expense.

When purchasing a used car from a private seller, you should either take it to your own mechanic or have it checked out at a professional workshop while taking it for a test drive, which is also on the must-do list. While this will take some of your time and money, it will save you a lot of trouble and money once you have purchased the car.

Choosing not to buy certified pre-owned vehicles

Many buyers prefer to deal with private sellers, such as friends or acquaintances. However, certified used cars are the best option. Regardless of the make and model or the number of kilometers covered, these used vehicles are subjected to a thorough mechanical inspection. All certified used cars come with full disclosure of the vehicle’s condition. Before being put up for sale, they are also fully repaired where necessary and come with an authentic vehicle history report. 

These fully certified pre-owned vehicles also include an extended manufacturer warranty and a slew of other features that no private seller can match. Yes, certified used cars are more expensive than those sold by private sellers or dealers, but you’ll have peace of mind knowing that the car you’re buying is actually worth the money you’re paying and that there are no hidden issues.

Not comparing

Why would you buy something without comparing it in this day and age when the internet rules everything? There are several used car websites that one can visit before deciding on a specific used car model. Comparing the prices of different cars based on their age and make will give you a good idea of how much a used car should cost you, and whether a seller is asking a reasonable price for a specific used car. There are also a number of online comparison tools that provide excellent comparisons.

Buying second-hand cars: what to keep in mind

While certified second-hand cars are the most expensive, other dealer prices are slightly lower, and private sellers have the lowest asking price. However, when purchasing a used car, the price tag is not the most important factor; real knowledge about the vehicle and a higher value are. While dealers always provide more value to buyers than private sellers, fully certified used car showrooms provide the safest and best-cared-for vehicles by reducing the risks of purchasing a used car to the absolute minimum.

If you’re thinking about buying a two-wheeler, here are some tips on how to get a two-wheeler loan in minutes.

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Submitting Bank Statements – Can it Lead to Cyber Fraud?

Highlight: Cyber frauds are steadily increasing thanks to a majority of people shifting to online banking. But the question is, can submitting personal banking statements lead to cyber fraud? 

There’s plenty of instances in life where you might encounter a situation that requires you to submit your bank statements. For instance, you have to submit bank statements to a company for an instant loan. The question is, how do you know whether submitting bank statements is safe and not prone to cyber fraud? Most of us are hesitant before submitting our banking details due to the steep rise in cyberbanking scams over the last few years. 

Online banking is great, but it has also contributed to an increase in the number of cyber frauds such as credit card frauds, e-money laundering, spamming, spoofing, phishing, identity theft, etc. 

This increase in cyber fraud has created a strong sense of fear among individuals, even if it’s legitimate loaning companies such as EarlySalary. The queries around online Instant loan apps are often all related to safety concerns about submitting bank statements. 

If you are applying for loans, then the most crucial document you need to submit is your bank statement, typically for the past 6 months. With the help of your bank statements, the lending institution determines whether you are eligible for an Instant Loan. However, there are few things that you need to be careful about before you submit your bank statements on any website. 

Who would ask you for your bank statement?

It is crucial to understand that you should only submit the bank statements to apply for loans, rental services, etc. Therefore, only rental companies, banks, or lending institutions will ask for your bank statements. For instance, Instant loan apps such as EarlySalary will ask for your bank statement for the following reasons.

  • The primary purpose of your bank statement is to determine your loan eligibility, as EarlySalary will check your total income and other transaction activity on your account. 
  • Your banking statement will also give an insight into your saving and spending habits, which will play an important role in deciding whether you will be able to repay your loan amount and the interest rate. 
  • Another thing that the lending company will look for in your bank statement is whether there are any existing monthly payments for any other ongoing existing loan in your bank statement. Any existing ongoing loan will reduce your chances or will make you ineligible for an instant loan.

Hence, these are the reasons why any lending institution will ask for your bank statement. However, with the frequent instances of cyber frauds out there,  you should always keep in mind the safety of your banking details while filling forms online.

How to ensure the safety of your bank statements?

This question is always there when it comes to sharing bank statements online. Prevailing cases of cyber fraud often make us skeptical about sharing our banking information with websites easily, and rightly so. Here are a few ways to ensure your submission does not fall into the wrong hands!

  1. Check whether the loan institute is legitimate: The first thing that you should check is to confirm whether the loaning body providing the Instant loan or any other type of loan is legitimate or not. One way to check the legitimacy of any organization by asking around or checking for online reviews of their service. Another is to ensure they use the latest security measures to protect your data. EarlySalary, for example, encrypts all customer data and operates on the HTTPS protocol.
  2. Only share bank statements for loan purposes, rental services, or legal cases– If any illegal or unknown organization asks you to submit bank statements, then you must immediately count it as a red flag.  
  3. Ask questions and go through the FAQs on the official website of Instant loan apps- When a loaning institution asks you to submit bank statements, you have every right to ask them questions regarding the safety measures taken by them to address any concerns regarding the safety of your information. For instance, EarlySalary has a separate FAQ page, where you can go through your doubts by reading the answers to similar concerns by other customers. 

Stay Safe!

There are always chances of cyber fraud and scams when submitting your banking details online. However, it is in your hands to keep your banking data secure by making sure the lending institution is legit and has good reviews over the internet. 

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Work Culture Boosts Productivity And Health. Here’s How

Highlight: A productive work culture is essential. Discover how investing in a positive and productive work culture increases productivity and health.

The work culture of a company is essentially its overall personality. It’s a collection of intangible elements that come together to create an environment where people can work to the best of their abilities and creative abilities.

Some of the most important elements that come together to create a positive, productive ambience where employees can make a mark on their performance are ethics, expectations, value, goals, task management, collaboration, workflow, feedback, and time management.

Work culture, in a nutshell, reflects the organization’s ideology, leadership, and employee satisfaction rate.

What exactly is positive workplace culture?

Employees who are constantly encouraged to work as a team, to have each other’s backs, and to bring the best results in every project are said to have a good work culture.

Respect, trust, accountability, adaptability, result orientation, teamwork, seamless communication, learning opportunities, and other characteristics distinguish an ordinary work environment from an exceptional one. When a company has a positive work culture, the advantages mentioned above are almost certain to follow.

As an employer or HR, investing in a positive and productive work culture reaps benefits beyond a better work-life balance and a sense of purpose for employees. It also boosts the company’s productivity and, as a result, profitability.

Here’s how you can help your team develop a productive work culture:

Establish the culture and principles of the organization

To give employees a sense of belonging, it’s critical to have a set of defined corporate core values that are properly communicated and debated. It is a commitment made by an organization or a company to certain policies and initiatives, such as “to go green” or “cultural reform.” It’s critical to take demonstrable actions on a regular basis so that employees feel personally accountable for these values. Employees will be able to assess and enjoy their own attitudes toward these positive core principles as a result of this. Positive attitudes and activities aid productive work culture.

Be a mentor

It is the responsibility of company leaders to act as mentors to employees and project team members and empower those employees to mentor others. An open-door policy that encourages and welcomes employees to share new ideas and make suggestions reduces employees’ fear of being ignored or criticized, fostering the climate of mutual trust that is critical to an organization’s success. Loyalty, efficiency, and productivity are more likely to be rewarded for leaders who invest in their employees’ creativity and self-improvement.

Implement corporate wellness 

Take steps to improve your employees’ physical and mental health. In our digitally-driven society, addressing office work problems – hours of sitting, typing, and staring at screens – is critical. A company that genuinely cares about its employees’ physical and mental health should assist them in becoming the best versions of themselves. As a leader, you must consider the health of your employees when developing or improving the work environments in which they work. Uncomfortable working conditions, such as poor lighting, low-quality furniture, and outdated equipment, can exacerbate employees’ already high levels of stress, eventually leading to a major problem.

Encourage cooperation and communication

In order to create a healthy workplace environment, a leadership or management style that promotes cooperation, as well as open and honest communication, is required. Regularly checking or evaluating how individuals interact with one another, how criticism is accepted or taken into account, and how opportunities for social connection are enabled is what open and honest communication entail. This enables team members to form and maintain relationships with their entire team or coworkers.

Be flexible

Organizations can give employees more freedom and flexibility by avoiding rigid job descriptions and permanent office space. Allowing employees/team members to combine their skill sets in order to achieve shared goals maximizes everyone’s strengths. Another way to provide flexibility to team members is through flexible work hours and remote work, which has become increasingly important during the COVID-19 epidemic.

Be supportive

Planning for the inevitable is the most effective way to ensure your employees’ long-term productivity. Employees may be unable to perform tasks effectively due to the fear of illness, loss, or other unforeseen events. Show that you care as an HR or a leader. This can alleviate your employees’ concerns, resulting in increased productivity and overall performance.

Employees should be appreciated and rewarded

It is the responsibility of leaders and managers to instill a sense of worth in their employees. For their success, organizations should recognize, encourage, promote, and reward team members or employees. Another important component of productive work culture is self-improvement and learning. Activities and benefits that aid employees’ continuous enlightenment and progress are the ultimate reflections of how much a company values and supports everyone’s continued growth.

Be open to feedback

Excellent communication is something that all top teams have in common. If your team encounters a problem, they must be confident that they can express it without having their competence called into question. As a result, incorporating a continuous feedback loop into your corporate culture aids project managers and department heads in eliminating any obstacles to job efficiency, such as excessive workload.

Your company’s culture, which is comprised of your company’s values, vision, and goals, is at its core. When people work remotely, it’s much more difficult to create a company culture that reaches everyone in all of their locations. The leadership of your company must foster a culture of productivity and belonging that brings the entire team together, even if they are spread out across the globe.

Conclusion

A positive, productive, and effective workplace culture is required to develop a sense of pride and ownership among employees/team members. People who are proud of their companies invest their future in them and work hard to create opportunities for them.

The Covid 19 pandemic has also had an impact on workplace culture. Learn about the role of human resources in the post-Covid workspace.

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Personal Loan Application Rejected? What Next?

Highlight: People can be confused about what to do after their personal loan application is rejected. Read on to know what one can do once this happens.

When you realize that the personal loan application has been rejected, you might be left confused. As a borrower seeking capital, you need a clear path to understand what should be done after this has happened. What you must do, is correct the errors that might have caused your rejection to occur. 

There could be several reasons for a loan application rejection. It could be due to a low credit score, filling up of incorrect or incomplete information, lack of correct documentation, or some other factors like employability checks, age, income regularity, or sometimes even educational qualifications. 

You should always make sure that you are well versed with all the criteria given by the lender so as to avoid this kind of possibility of your rejection of a personal loan application.

Where to get a loan if your application is rejected

Although there are multiple lenders available in the market, both online and offline, one of them that stands out is EarlySalary. EarlySalary is one of the forerunners by being India’s earliest consumer lending platform. They have helped in getting short tenure loans to people in form of salary advances and have passed a million loan disbursals. EarlySalary has got you covered with all kinds of financial trouble with help of its various facilities. Be it for paying bills, or planning an impromptu trip, EarlySalary is your one-stop solution for all kinds of instant cash needs.

When your personal loan application gets rejected, EarlySalary can save you with its instant cash loan. How instant you ask? Get the cash loan in under 10 minutes to suit all your needs. The registration procedure is absolutely simple. All you got to do is download the Early application from the Google Play Store or the iOS App Store or you could log on to the  EarlySalary website. Once logged in, all it takes is minimal documentation, an easier application for your loan, and quick approval at last. 

Eligibility Criteria for Personal Loans From EarlySalary

The eligibility criteria for loan approval are simple too. The only criteria you have to follow to avail of a loan from here are:

  • You have to be a salaried Indian citizen
  • Existence of a Facebook/Google account to sign-in on the EarlySalary Instant Loan App
  •  You should be aged at least 18 years or above
  • You must have a minimum salary of Rs 15,000 if you are a resident in a non-metro city or Rs 18,000 if you are a resident in a metro city.

The basic documentation including PAN Card, Address Proof, bank statement, Aadhar card, and a single selfie will ease your way into getting the desired loan for your needs. You can find EarlySalary all over India. 

EarlySalary’s personal loans are made for all of your needs. Once you get approved via EarlySalary’s eligibility criteria and get your credit limit, the loan disbursal process takes just a few minutes for the money to reach your bank accounts. The loan amounts are flexible, you can avail Rs. 5,000 to Rs. 5,00,000 to fulfill your requirements. It is quick, secure, and given in online format where there are no hassles of carrying paperwork, available 24*7. 

The advantages of getting a loan from EarlySalary? No collateral, flexible repayment schedules, zero prepayment charges, no pre-closure charges, no restrictions on usage of the loan amount, and always availability of attractive and lower rates of interest. 

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Get Education Loan For Your Kid’s Higher Studies

Highlight: Education cost is on the rise, in such an environment education loans become the best choice to offer the best of education to your child without compromising on other aspects of life. 

Quality education is of critical importance to every individual. It is, in fact, one of the precursors of a successful life. Now you might throw the counterargument of how Bill Gates never made it out of college, but let us remind you that was an exception and not the norm. Most of us need that IIT and MIT degree to land us a well-paying job. Add to that the competition that children face these days in the industry. 

A good college can provide them with a strong foundation to withstand the challenges that life throws their way. However, the cost of education has been on the rise lately. 

In such an environment, education loans seem to be the best option to acquire quality education without burning a hole in your pocket and compromising on other necessities of life. 

What Are Education Loans?

Education loans are loans that students apply for to fulfill the financial requirements needed for a course of their choice. They are also known as study loans. Education loans are intended to cover the cost of tuition, books and supplies, and living expenditures while the borrower is in the process of pursuing a degree. Expenses are often deferred while students are in college and, depending on who the lender is, sometimes they are postponed for an additional six-month period after earning a degree. This period is referred to as the “grace period.” 

Most of the student loans available to individuals in India are granted at a somewhat low interest rate and as an added convenience interest payments need not be made instantly. Students are usually granted a repayment period from the moment they take the loan to the time they start making repayments. Suppose you wish to avail of an education loan but are unemployed or still studying, in that case, a co-signer may be required to provide a guarantee on education loans, like an eligible adult such as a friend, parent, or relative. The repayment of the loan can be made once the student has completed their education. While the loans can be availed by either the student or by their parent/guardian. The repayment responsibility generally lies with the student. Given the flexible terms and conditions associated with paying education loans, availing one is fairly easy.

Different Types Of Educational Loans

Institutions offer several different education loans all of which are proposed for different types of education programs. Based on the type of education that one wants to go after, there are student loans that specialise in diploma and certificate courses, student loans for skill-based courses, student loans for studying in foreign countries, etc. 

#1 On Basis Of Location

There are two main categories of Educational Loans. 

Domestic Education Loan

These are for educational courses that are within the geographical limits of the country. These are the loans you take if your child wants to go to the neighboring city for better educational prospects. Naturally, such shifts will take a lot of financial toll on you. These loans help you to cope with that. 

Foreign Education Loan

Or, as you may call it, study abroad loans. These are for educational courses outside the geographical boundaries of the nation. Based on the type of course, multiple options are available under the study abroad education loans. Apart from paying for your college free, these loans can also help you pay the cost of daily expenditures like food, housing, travel etc. 

In extension to these, the education loans can be further divided based on a few other categories. These comprise the following.

#2 Based On Course

  • Higher Education Loan
  • Diploma Studies Loan
  • Loans for Professional Courses

#3 based on Security Of Collateral

  •  Secured Loans
  • Unsecured Loans

Education Loans Available In India

#1 Undergraduate Student Loans 

These are availed by individuals who have already undertaken secondary education and wish to undertake a three or four-year course to strengthen their job opportunities. 

#2 Professional/ Graduate Student Loans

 These loans are tailored for professionals/graduates who wish to pursue advanced degrees or higher education at colleges across the country. A student must complete an undergraduate course for a graduate student loan. However, there is no specification on this course, and they can be from any field. 

#3 Loans For Parents 

Parents of students can benefit from these loans. These are unsecured loans that handle expenses related to their child’s education, such as tuition fees, living expenses, books, uniforms, and other expenses such as transportation costs. The loan can be availed by parents and other guardians who wish to enroll their children in secondary schools, military elementary schools, religious, private, or non-public schools across the country.

Conclusion

Educational loans offer you an opportunity to enroll yourself or your child in the college of your or your child’s dream. EarlySalary offers some great deals with justifiable interest rates on education loans so that you can get a quality education without having to compromise on other luxuries of your life. 

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No Paperwork: Get Upto 5 Lacs In Your Account In Few Minutes

Highlight: Getting an Instant Loan is truly instant in 2021. With EarlySalary, opt for an effortless application and get instant cash at your fingertips within minutes.

EarlySalary is a friend in need, especially when it comes to unprecedented financial emergencies.  We can come across some unexpected personal expenses like a medical emergency, a family wedding, while renovating a dream condo, or paying off urgent bills – and sometimes, we may not have enough funds. 

No matter what the nature of your emergency is, the EarlySalary instant loan app is one of the best options to fall back on in such situations. It is hassle-free, 100% online, and most importantly, comes with quick processing. 

But why pick EarlySalary over other options?

EarlySalary offers you an entirely digital experience. There are no long forms to fill, no paperwork- just minimal details to get cash promptly. The process is designed to be super quick and secure and with PCI DSS app-based trips, getting money quickly is hassle-free. It offers you a versatile loan amount starting from INR5000 to INR5,00,000 at prices as little as Rs 9/day, without any concealed expenses and no prepayment costs. With simple EMIs, a no-questions-asked plan, you can get the EarlySalary instant cash loan any time you need it!

Getting credit through Early Salary is quick since the entire process is online with no physical paperwork. Follow these steps for either a personal loan or an instant loan with EarlySalary:

  • Create an account with EarlySalary to get credit, if you don’t already have one. Once you download the app or access the website, you will be required to give some permissions and basic personal information.
  • Based on the basic information provided by you, the app will show your personal loan eligibility, with eligible interest rates and tenure.
  • After successfully meeting the eligibility criteria, you will need to fill in all the necessary details related to existing loans, occupation, and employment details. This is a part of the credit approval procedure.
  • You need to submit your bank account details for the disbursement of credit to your account. Once the process is complete, EarlySalary will directly transfer the amount of credit to your bank accounts.

What Documents Would You Require?

With a requirement of minimum documents and disbursement of fast loans, EarlySalary is the best choice as compared to other conventional loan providers. The documents that you would need to submit are:

  • Photo Identity proof: PAN Card/Aadhar card
  • Permanent address proof: Voter card / Utility bill / Driving license or Passport
  • Last three months’ statement with salary credits

EarlySalary uses its proprietary method – the Social Worth (SW) score, which determines an applicant’s creditworthiness. It’s what enables quick disbursal of a loan in emergencies. Anyone with a monthly salary of more than INR 15,000 can avail of a loan up to rupees INR5 lakhs from EarlySalary (INR 18,000 in metro cities: INR 15,000 in non-metro cities). You can get the amount credited into your bank account in less than 10 minutes, subject to the availability of proper documents.

EarlySalary has got you covered with instant loans available for unexpected financial emergencies, be it utility bills, rent, or medical expenses. 

Watch the video to understand better.

Features and benefits of EarlySalary app to get Instant Loan

  1. Get an EarlySalary instant loan or advance salary up to INR 5,00,000 under 10 minutes only at only INR6/ day.
  2. Apply for a loan in simple steps on the app and get it transferred to your bank account in minutes.
  3. You can use the EarlySalary limit to shop on Amazon, BigBasket, Flipkart and pay through easy EMIs at a 0% interest rate.
  4. You can also use the Early Salary limit to plan your vacation and pay later in easy installments at a 0% interest rate for 3 EMIs and an affordable rate for 6 EMIs.

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How To Save Income Tax On My Salary

Highlight: Learn what income tax is, how it works, and how to save money on income tax in India.

What is the income tax on my paycheck?

Income tax is a percentage of an individual’s or business’s earnings that is paid to the government in order for it to run the country smoothly, fund infrastructure development, pay salaries to state and central governments, and so on. All of these taxes are imposed as a result of legislation. The law governing the provisions of our income tax is known as income tax.

Individuals, corporations, businesses, and all other establishments that generate income must pay income tax. The Income Tax Act of 1961 governs India’s collection, recovery, and administration of income tax. Despite the fact that income tax is paid monthly from monthly earnings, it is calculated annually.

The amount of income tax a person must pay is determined by a number of factors.

How to save income tax in India?

You must pay close attention to India’s available tax-saving financial products if you want to save a significant portion of your income. If you work as a salaried professional in India, you can save money on taxes by using sections 80C, 80CCC, and 80CCD.

If you believe you have been paying a significant portion of your income in taxes, it is highly likely that you have not properly planned your taxes. You can save taxes in a number of ways that are legal. The Income Tax Act of India allows citizens to save money on taxes by deducting certain expenses. The deductions are available to claim when filing a tax return.

Here are some tax saving options for salaried individuals:

Section 80C, Section 80CCC, and Section 80CCD deductions

These three sections allow Indian citizens to save money on income taxes. People can claim certain deductions if they invest in the instruments listed in Sections 80C, 80CCC, and 80CCD. PPF Accounts, Pension Plans, Life Insurance Policies, NSC (National Savings Certificate), 5 Year Tax Saving Fixed Deposits, and so on are some of the popular instruments that people invest in. 

Citizens can claim a maximum deduction of Rs.1,50,000 under any one of the three sections or all three sections combined. Section 80CCD allows people who invest in the National Pension Scheme to claim an additional deduction of Rs.50,000.

Medical Expenses

Taxpayers can deduct the cost of medical treatment from their taxable income. People’s medical expenses become tax-free if they provide their medical bills. Medical Allowance is also provided to all employees by their employers. In a given year, people can claim a maximum of Rs.15,000 in medical bills. 

Section 80D, Section 80DD, and Section 80DDB of the Internal Revenue Code allow taxpayers to deduct income spent on health insurance for themselves or a family member. The amount of the deduction varies by section and is determined by the type of insurance policy purchased by the taxpayer.

Home Loan

Most people are advised to save money on taxes by taking out a home loan because deductions can be claimed under three different sections, resulting in significant savings. People who take out a home loan can deduct the principal loan amount from their taxes under Section 80C of the Internal Revenue Code. People can deduct the interest they’ve paid on their home loans under Section 24. 

In some cases, a maximum deduction of Rs.2,00,000 is allowed, while in others, there is no limit to the deduction that can be claimed on the amount spent on home loan interest.

Shares and Mutual Funds

Investing in stocks and mutual funds can help people save money on taxes. Citizens earning less than Rs.12 lakhs annually are eligible for an additional deduction under Section 80CCG of the Income Tax Act if they invest in shares of certain companies and certain mutual funds. The deductions are available to first-time investors under the Rajiv Gandhi Equity Savings Scheme.

Donations

Citizens of India can save money on taxes by claiming deductions on the amount they spent on donations for social or charitable purposes or contributing to the National Relief Fund. Section 80G of the Income Tax Act allows them to claim such deductions. The Ministry of Finance lists the organizations to which taxpayers can donate, and whether or not deductions are allowed depends on the purpose for which the money was donated. Donations that are made in kind are not eligible for tax deductions. Taxpayers can deduct up to Rs.10,000 in cash donations, but they must donate more than Rs.10,000 to be eligible for a deduction.

Leave Travel Allowance (LTA)

Taxpayers who receive LTA from their employers are entitled to tax-free LTA. It can be claimed twice in a four-year period. They must travel anywhere in India during their leave period to claim it.

Saving Income Tax: What to Remember

These are a few of the most common methods for people to save money on their taxes. Taxpayers who carefully plan their income, investments, expenses, and taxes may be able to save a significant amount of money. It is strongly advised against using illegal methods to save money on taxes. 

For instance, if people try to save income tax by not paying it at all, the money they save will be considered unaccounted money or black money, which can cause a slew of problems if discovered.

Learn about your in-hand salary and CTC before diving into saving income taxes!

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