Old vs New Income Tax Slabs Simplified: Which is the Right Choice for You?

As we end this Financial year on a rather unusual note, with health and financial crises all around, we’d still want to be prudent about our taxes. Before Finance Minister Nirmala Sitharaman announced the new income tax slab under the Union Budget 2020-21, there was already significant anticipation around it. While the tax rates have, on the surface, been reduced, and the tax structure simplified, this is not the entire story. Under the old taxation system, taxpayers were eligible to claim a slew of exemptions and deductions, several of which they would have to forego under the new regime. 

income tax slabs

source: Economic Times

Tax payable and savings under new regime if no deductions are claimed

**No tax up to Rs. 500,000 taxable income, as Rebate under section 87A, is available
Note: Surcharge rates for incomes above ₹ 50 lakh are unchanged.
Around 70 tax exemptions and deductions would not be applicable under the new system, including all under Chapter VI-A, which would then include:

  • House rent allowance (HRA), 
  • Investments under 80C, 
  • NPS contribution, 
  • medical insurance premium
  • and more. 

This adds up to a large amount. In fact, according to Economic Times, individual taxpayers claimed a deduction for more than ₹ 4.45 lakh crore in their returns for 2017-18. However, about 50 tax exemptions are still around, including standard deduction on rent, agricultural income, income from life insurance, etc. 

  • Of course, major upside to the new income tax slab is the simplification of tax compliance, though avid planners who maximized their deductions would end up paying more in this case. 
  • Another upside is the open choice offered to taxpayers, between the two taxation systems. 
  • Further, individual taxpayers can switch between the two systems every year, depending on which gives them more benefits.

One major issue with the new income tax slab is that rather than reducing confusion, the additional slabs under the new regime and the fact that people can choose between the old and the new have only served to fan the flames. Now, in addition to trying to figure out how much to pay, taxpayers now also have to calculate which system is beneficial for them. Fortunately, several websites have come out with calculators to help out, including the Income Tax Department itself. According to Economic Times, it is not as complex as all that. Anyone claiming tax exemptions of ₹ 2.5 lakh or more (for income above ₹ 15 lakh), and ₹ 2.2 lakh or more (for lower-income brackets), would end up paying more under the new regime. 

income tax slabs

Of course, it’s a bit more complex than that, as it would depend on several factors including the particular deductions being claimed and the actual income tax slabs, as shown in the tables below:
Tax saving/additional payable if only standard deduction and those under sections 80C and 80D

income tax slabs

source: EY India

Tax saving/additional payable if tax breaks under HRA in addition to the standard deduction, 80C, and 80D
source: EY India

As seen from the first table: 

  • Among those claiming only the most common exemptions and deductions, only the high-income earners would benefit from the new regime. 
  • The rest, if they claim the entire benefits of ₹ 50,000, ₹ 1.5 lakh and ₹ 25,000 under the respective headings of the standard deduction, 80C, and 80D, would lose a considerable amount. 
  • However, if they claim HRA (varied as per income level), everyone, from the low brackets to the highest ones, stands to lose in monetary terms.

There are, of course, several additional considerations: 

  • First among those is the fact that compliance under the new income tax slab would become a lot less of a headache. Hence, higher-income earners might prefer the new system, considering the extra amount paid worth the effort saved.
  • Additionally, the calculations above have been made considering maximum investment and tax exemption claims under the old system (for example, the entire ₹ 1.5 lakh being claimed under section 80C). If deductions are less than the maximum, the calculations would vary considerably, and depending on the amount, the new regime may be beneficial.
  • Further, families can adjust their claims and the income tax slab they choose to avail maximum benefit. This is due to the fact that several deductions and exemptions can only be claimed by a single person in a family. Hence, if one person claims deductions, they may be able to save more in the old regime, while other family members could attain the maximum benefits by shifting to the new regime, thus optimizing the benefits for the family as a whole. 

Thus, it is entirely dependent on taxpayers. Their earnings, the amount of tax exemptions they claim under the old regime and the amount of effort they wish to take in compliance all need to be kept in mind while choosing the income tax slab to adhere to. Besides, for individual taxpayers, there is a lot of leeway in terms of choice. They can choose one regime, and if they find that it is not working for them, they can always go to the other. Regardless, you may want to check out our tax planning tips to maximise savings.

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Beginner’s Guide to Borrowing and Credit

A cash crunch is not uncommon, and it’s nothing to be ashamed of. Thanks to loans and credit, there are several ways to acquire money to tide things over. If you need a large amount of money for a specific, definable reason like buying a home or your child’s marriage, several banks can offer you a loan tailored to the purpose, as long as you’re eligible. On the other hand, if you just need money to make things work, personal loans and instant loans are the best options to consider. Personal loans don’t require a specific purpose, but the paperwork and documentation required are not very different from that of home loans or car loans. On the other hand, instant loans are quick to obtain, perfect for emergencies and urgent cash needs. Here’s a guide on all you need to know about borrowing personal loans, instant loans, quick loans, or the many other names by which we refer to varieties of credit.

Qualifying for loans

Applying for an instant personal loan doesn’t automatically get you one. Lenders are giving you money on the assurance that you would pay them back, so while granting you a loan, they would need to ensure that you’re capable of repaying the money. This capability is tested with the help of the following:

Income 

Your income is one of the most important criteria for a loan. Lenders need to ensure that you have the capacity to repay the loan they give you, which is more likely if you have a steady income. Depending on the amount you wish to borrow, the amount you earn would also matter. 

Age

Your age isn’t typically much of a problem, as long as you’re above 18. However, lenders are more likely to give you a loan if you have a long working life ahead of you rather than if you’re close to retirement. However, freshers are less likely to get loans than people with at least 2-3 years of work experience.

Credit score

One of the most important factors that help decide your eligibility for a loan is your credit score. This depends on your credit history, a record of your previous borrowings (if any) and your repayment record. It helps lenders gauge whether you would repay loans on time, based on your track record. A high credit score makes it easier to get loans approved, and a credit score of 750 and above is considered great.

Employment

Lenders are usually concerned with your employment status as it relates to your ability to repay loans. A steady source of income is preferred, which relates to a steady job. If you’re self-employed, that’s okay as long as your income is steady. 

Elements of a loan

Interest rate

Money doesn’t come for free, of course. Loans, when returned, have an extra charge attached to them, called an interest. This is usually a proportion of the amount borrowed, and in case of personal loans, it remains fixed over time. For home loans and other such long-term loans, the interest rate may change or fluctuate. Since personal loans are usually unsecured, they typically have a higher interest rate compared to secured loans like home loans. The rates, at present, range from about 10-15% for personal loans taken from banks, while for personal loans online, the rates are a little higher.

APR

APR, or Annual Percentage Rate, is a term used to denote the actual cost of a loan. Typically, this APR includes the interest rate and any other fees to be paid while taking the loan. Such fees include the fees used to set up the loan, processing charges and service charges. Rather than comparing personal loan interest rates or EMIs, it is often useful to compare APRs while choosing where to borrow from.

Borrowing minimum/maximum

Lenders often have a lower and/or upper limit on how much they would lend, especially in a personal loan. Typically, banks ensure that the loan amount (principal) is such that the EMI is not more than 40-50% of your monthly income. Any loans you may already be repaying are also considered while calculating the maximum amount. If you’re self-employed, banks calculate your loan amount based on your most recent profit earned, taking into account any liabilities you may have. Further, most banks have a minimum loan amount of around Rs. 30,000. Online instant loan portals, like banks, may also have a minimum and maximum, although the minimum is usually lower. For example, EarlySalary gives loans of amounts anywhere between Rs. 8000 to Rs. 2 lakhs. 

EMI

EMI stands for Equated Monthly Instalment, which is a fixed amount to be paid monthly to the lender. It is calculated according to the principal, interest rate and the duration for which the loan is taken. The calculations are not the simplest to undertake, so there are several personal loan EMI calculators available online to make it easier.

Loan Term

Loans are usually given for a specific period in which the amount is to be repaid with interest. The term varies based on the amount, lender and the EMI you would be comfortable with. Low EMIs are often associated with longer loan terms or low-interest rates. It is advisable to ensure that if it’s the former, you’re not paying higher interest in the long run. 

Deciding your lender

There are several banks, credit unions, private lenders and now, online portals that provide loans to borrowers. With the huge variety to choose from, it can become difficult to decide where to borrow from. There are online platforms available to help you compare different lenders and make your decision. There are several factors to consider for this. Of course, the interest rate and loan amount are two of the most important of these factors. 

However, other factors that need to be considered are the tenure of repayment, type of interest (fixed or floating, although personal loans interest rates are usually fixed), extra fees like processing fees or service charges, prepayment penalty, etc. Additionally, you also need to consider your own credit score and eligibility and the urgency of the loan requirement – if it’s not very urgent, banks and credit unions are good options; if it is urgent, getting an instant loan online is the most dependable option with chances of getting approved quickly.

Application process

Documents typically required for a bank loan
source: cleartax.in

When you apply for a loan, you need to first ensure that you’re eligible for it. Of course, just meeting the eligibility criteria doesn’t guarantee approval, although it strengthens the likelihood of getting the loan. You need to show the lender that you can afford to repay the loan without straining your budget too much. Such proofs are demanded and verified through an application process. The length and difficulty of the process depend on the lender, with banks and credit unions requiring more detail and online loan portals causing less hassle by prioritizing speed. Following are the documents you’ll need to keep in hand:

  1. Income proof: A salary slip for salaried employees and a recent acknowledged Income Tax Return (ITR) for self-employed people are usually required.
  2. Address proof: Documents like Aadhar Card, Passport, most recent Electricity bill, Ration card, etc. work as Address proof.
  3. Identity proof: Documents like Aadhar Card, PAN Card, Driver’s Licence, Passport, etc. are usually considered valid identity proofs.
  4. Certified copies of degree/license are required in the case of self-employed professionals.

Disbursement

The time taken for the disbursement of loans depends entirely on the type of lender. The approval and disbursal of a loan can thus take anywhere between a few minutes to several weeks. While online instant loan apps like EarlySalary have a track record of approving and disbursing quick loans in a matter of minutes, banks and credit unions can take a week or more for the process. Once the loan is approved, you may receive an account payee cheque/draft equal to the loan amount. The loan amount would be transferred automatically to your savings account in the case of lenders like EarlySalary.

Fees to watch out for

The principal and interest on the loan are often not the only charges that need to be paid to the lenders. There may be several extra fees charged, and these are usually in the fine print. So it’s essential to read the fine print before signing on the dotted line. These extra charges include:

Origination fees

They are charged by the lender at the beginning of a loan as a processing fee to set up the loan. The fee is presented either as a flat rate or a percentage of the principal, and it’s typically withdrawn from the loan amount before it is disbursed. The fees usually range from 1-6% of the principal and is considered in the APR. It is advisable to factor in this fee while deciding the loan amount. 

Prepayment penalty

If you decide to pay your loan off before the loan term is complete, you may get charged an additional fee called a prepayment penalty. For banks, the penalty usually ranges from 2-5% of the loan amount remaining to be paid. In addition, there may also be a minimum number of EMIs to be paid before you can prepay the loan. Many instant loan apps in India, however, boast 0 prepayment charges, meaning that you can pay off a loan at any time.

Other fees

In addition to the interest rate and origination fees, lenders can also charge a variety of fees such as service charges, processing fees or administrative charges. These are often not explicitly mentioned while applying for a loan, and only later come up as surprise or hidden charges. So, make sure to read the fine print before applying for any loan.

Repayment

Repayment of loans is usually done on a monthly basis, for a fixed number of years. For personal loans, the period usually varies between 1 to 5 years and can be done in 12, 24, 36, 48 or 60-month cycles. Instant loans, on the other hand, are offered for even shorter periods, often for less than a year. Longer repayment periods often guarantee lower monthly payments, but it could result in higher interest than if the period was shorter. In case your loan is of a longer period and you wish to shorten it, there is usually the option of prepayment. However, most banks charge prepayment penalties of as much as 2-5% of the outstanding principal, which could increase your costs.

Additionally, repayment must be regular and timely in order to avoid late payment charges. Delayed payments would also negatively affect your credit score. Hence, it is always wise to plan the repayment well in advance, to avoid the headache of organizing your finances last-minute. Such planning can be done by creating a dedicated account for loan repayment, keeping track of deadlines through mobile reminders and the like, and choosing your tenure and hence, the EMI to be paid according to your capacity to pay.

How Instant Loan Apps come handy during a Financial Emergency

Cash crunches can happen to anyone. Financial emergencies, by definition, mean that there is an immediate expense that you cannot afford to make, but you cannot afford to skip either. They may be health expenses, unexpected repairs, or god forbid a temporary stoppage of work (say due to a pandemic, very much like a recent situation). In such scenarios, people often turn to local moneylenders (who charge exorbitant interest rates), or sell their assets for short term needs. Goes without saying, obviously, but these common practices are definitely not recommended for two reasons:

  • One – in the long run selling off assets, or paying outrageous interest is definitely not in your best interests (no pun intended). 
  • Two – there are better options available, like instant loan apps.

Why Instant Loan Apps?

Financial emergencies usually require immediate attention and the longer they take to resolve, the bigger the consequences they may cause. The consequences need not only be monetary but the mental stress they cause may also sometimes be more harmful. This is one of the major disadvantages of the “mainstream” methods of acquiring loans (banks and other financial institutions). The documentation, the queues, the hours of work missed and other hassles normally associated with applying for a loan is a major inconvenience in an already dire situation. On top of all these, bank loans usually require some form of collateral or guarantee, creating additional hassles. This is exactly where instant loan apps, like EarlySalary, offer timely assistance to people as and when required.

EarlySalary Advantage

At EarlySalary, take immense pride in announcing that we have disbursed over a million loans for people across the country. Instant cash loans on salary, with interest rates with as low as INR 9 a day can work as an ideal option for people in times of crisis. Minimal documentation, no visits to any physical branch, no collateral or guarantee requirements, are just some of the many advantages, lending EarlySalary the status of arguably the best instant loan app in India. The entire loan disbursal will happen remotely with just a few taps of your fingers. The flexible repayment schedule along with our zero prepayment policy is implemented with the convenience of borrowers in mind. EarlySalary is the best way to obtain hassle-free loans online. You don’t have to take our word for it.

How to Make Use of EarlySalary?

It’s possible to apply for an instant loan online without documents. Here’s the gist:

  • Download the EarlySalary App
  • Upload the few documents required
  • Get Loans approved within 8 to 24 hours
  • Receive money directly in the bank account.

This is certainly the easiest way anyone can get instant loans online. Download the EarlySalary app here, and be a part of the #OneInAMillion experience.

Prevention, Better Than Cure

The most effective way to tackle a financial emergency will be to follow some basic financial discipline and build a buffer. Prevention is definitely better than cure, and that is exactly the reason we had suggested the basic 50-30-20 mantra and the way to build buffer money in our post on International Happiness Day. Needless to say, we will always be happy to help in times of need, but that should not deter anyone from planning their finances properly, and reduce the risk of unnecessary headaches arising from cash crunches and financial emergencies. 

Check out our instant loan FAQs if you have any queries, and if you don’t see your query answered here, feel free to contact us, we are more than happy to help!
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What Will The Talent Market Look Like Post COVID-19?

Since the outbreak of the COVID-19, it is not just the hospitals that have been gripped by the pandemic. Millions of jobs have been staggered due to the nationwide lockdown. The overall job market is set to undergo changes post normalization and find new ways to attract, hire and retain new talent. Traditional human resources management is already showing signs of trouble as the economy slows, businesses struggle to survive, let alone scale and brave the needs of the new post-COVID-19 world. 

While organizations like EarlySalary took preemptive measures to combat COVID-19 before the lockdown, we’re now well past that stage and seem to be planning for a return to normalcy. How will organizations manage their talent once this is behind us? How will the talent market look?
To close the gaps between new business needs and talent management, new virtual recruiting and AI-based talent management platforms would be pivotal for their organization architectures. Read on to find how everything from talent acquisition to management would change to battle strategic challenges for the road ahead. 

  • Virtual Talent Acquisition Processes

New talent acquisition processes may become the norm. Every process, from uploading, resumes to using artificial intelligence for profile and job matches in real-time may be conducted online. Machine learning algorithms could be optimized to immediately see the highest quality match, evaluate performance, minimize bias and save recruiters’ time put in the drudgery. 
Organizations may soon develop a specific talent community to provide tools for seeking the best-qualified candidates for open positions. Dashboard based recruitment launch, tracking to measure candidates’ experiences and assess what’s going well and the aspects that need to improve may be used. Your employees will now define your corporate and employer brand after the pandemic is over. If you’ve prioritized employee experience today, you should be able to attract candidates when it’s time to hire en masse again. 

  • Workforce Planning

Most organizations find it challenging to find agile individuals from their talent pool to accommodate new profiles. The talent market post-COVID-19 would now have to use resources to improve themselves and the quality of staff to move up the line management ladder. Those who have been with the same organization may need a cross job rotation. The ‘push resources’ strategy may be replaced by the pull talent and knowledge to remove inefficiencies amidst the uncertainty.
The talent demand is set to fall. However, the saving grace is the potential demand for multitaskers. It is critical for all employees to stay updated in the rapidly changing situation. Be proactive, reach out to your leaders and know their expectations. Effective communication is the key to embrace the “trend” of flexibility. 

  • Establishing Fresh Team Guidelines

With the unpreceded lockdown, remote work may have changed employees’ working style. And when teams are back, the need to empower them to adapt to their conflicting time demands will be high. Organizations could adapt to these needs by empowering employees with new tech, and cross-training employees to indicate that remote working is here to stay. 
Change is the only constant. However, potentially, people may not be willing to change their location because of the social chaos right now. You need to get the pulse of the business and put it before your team. 

Final Thoughts

The real winners in the talent market would be those who can remotely distribute work and excel at it. A new talent intelligence platform is needed to improve end-to-end visibility and personalization at scale. The future of the talent market would be focussed on internal talent mobilization. There would be projects that pertain to specific skills and abilities jobs that would be designed around the dynamic business needs to align people skills and extensive knowledge with the task at hand. Corporates too would have to initiate value-creating profiles to be on a war footing and survive in the long run and to develop talent.

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What Does The New RBI Moratorium Mean For Borrowers?

With the global breakout of the COVID-19 pandemic, the Reserve Bank of India has taken an important decision with the objective to reduce the financial burden of debt servicing. As per the RBI order, all lending institutions have been permitted to give a moratorium or an EMI holiday to their borrowers for loan repayments and credit card dues. The moratorium is for installments and card dues in the period between March 1, 2020, and May 31, 2020. It has been given to mitigating income/ business loss to individuals or businesses. In this post, we’ll try to provide clarity on the barrage of questions that borrowers have regarding the three-month moratorium on loans and credit card dues. 

Am I eligible for the benefits under the moratorium period?

If you have taken a term loan or have a cash credit or overdraft, then you are eligible. This includes: 

  • Agricultural Term loans, 
  • Retail loans, 
  • Crop loans and 
  • Koans under Pool Purchases. 

All accounts which are defined as Standard Assets as on 1st March 2020 are eligible. There is no need to do any special paperwork to avail of this facility. Your term loan installments’ repayment including the interest due will be extended by 90 days. For example, if your loan is repayable in 60 installments and is scheduled for maturity on 1st March 2022, then the new maturity date will be 1st June 2022. 

Can I reschedule payments for all term loans? Will it affect my credit score?

Yes, you may reschedule payments irrespective of the loan segment and the tenor of your term loans. However, remember that moratorium is not a waiver. No, your credit score will not be affected if you opt-in.

What is rescheduled, the principal or the interest too?

You can reschedule your principal repayment due in the period 1st March to 1st June 2020. Let’s say that you had an installment due on 3rd March 2020. The payment will now be due on 3rd June 2020. If you have taken an EMI based term loan, then the repayment tenor will be extended by 3 months. For other term loans, the repayment period will be extended for installment and the interest due in the moratorium period, irrespective of the repayment tenor i.e. Monthly, Quarterly, Bullet Payment, Half Yearly, Annually, etc. If the repayment of your term loan has not commenced yet, then the interest portion for three months will also be reckoned. Please do note – interest due in 3 EMIs will still accrue. It’s only the payment that will be delayed.

Can the term loan go beyond the maximum period stipulated for a Product?

Yes, as per the new guidelines, a term loan can be extended beyond the period stipulated for the product and that given as per the loan policy. The interest in the Working Capital facilities will be treated as a deferred payment. 

Are there any costs of availing of the benefits of the moratorium?

Yes, opting for a moratorium has a cost. If you have 36 outstanding terms, then 1 extra EMI has to be paid; for 60 outstanding terms 2 more EMIs; for 120 outstanding terms, 5 extra EMIs, for 180 outstanding, 8 extra EMIs and for 240 outstanding terms, 15 extra EMIs have to be paid. The interest payment is deferred and not waived off. It is only postponed to 3 months and would continue to accrue on your account. 

Should I avail of the moratorium benefit?

If you can honor your obligations, then you may want to skip this moratorium. It is beneficial primarily for those who are bearing the brunt of the economic slowdown and are facing a serious money crunch. After all, paying dues is the best practice and opting-in should be a last-ditch decision. More so, not all banks may fulfill RBI’s suggestion. These are ultimately only guidelines.

Will my credit card dues be deferred?

RBI has given relief for credit card payments also. Your overdue will not be reported to the credit bureaus for a period of three months. No penal interest rate will be charged if the card issuer gives you an option for the moratorium. However, the card issuer will charge interest on the unpaid amount. Do check the interest payable with your Card provider before opting in, since those can be fairly high and is one of the reasons you shouldn’t get too friendly with credit cards.

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What Does The Coronavirus Mean For Your Finances?

The Coronavirus scare has caused widespread panic among investors, causing the financial markets to drop by historical levels over the last few days. Ever since WHO announced the novel Coronavirus outbreak as a pandemic, markets have plummeted, with indices like Sensex dropping nearly 3000 points on multiple days. Though the stocks have somewhat recovered (emphasis on somewhat), we’re still staring at historical lows, with pundits even beginning to speculate a fear-induced recession, as discussed in our previous post

As an investor – should you cut your losses and sell your holdings now? Here are some facts to help you make the decision.

Historical Trends

This is definitely not the first pandemic that has caused widespread panic leading to temporary turmoil in the global markets. Previous outbreaks like SARS, EBOLA, had also caused severe market reactions (though not to this extent, as the spread of the virus, was not nearly as contagious). However, the market has always bounced back and “corrected” its course in a 12 month period after the initial crash. There have also been indications of the Indian market correcting itself recently, the short term implications do not seem to be great for the investors. In the short term, experts are predicting a further 8 to 10 percent drop in the prices.

The Coronavirus impact on the stock market is comparable with the 2008 burst of the dotcom bubble in terms of the magnitude (an ex-Obama advisor has actually gone on to call it worse than 2008), but it’s not the worst recession of all time. Historically, the markets have always corrected itself, getting back to bullish markets within a year or two.

Coronavirus

Source: Financial Times

Long Term Implications

The silver lining of this outbreak is the fact that those who want to enter the market, to buy and hold for the long run, will get the cheapest prices to buy shares or index funds. Though prices may be likely to dip more as countries like India still seem to be in the early stage of the spread, they will certainly not recover till the outbreak shows signs of containment. That being said, the loss of money on paper should not scare you from investing right now, provided you want to hold for the long term (atleast 5 to 6 years). Exit strategies should be based on the state of the market then, but choosing the right set of stocks (risky, but the higher rate of return), or going for a broad index fund (safer, but with a marginally lower rate of return), is very likely to earn you money on the long run.

Coronavirus

Source: Dow Jones Market Data

Current Trends And Short Term Implications

In the current market conditions, for the next few weeks, a bear market may be prevalent. Though there was a short span of reversal of trends on the 13th of March, due to the widespread disruption of the economy because of Coronavirus, and panic among the investors, the price has continued to dip. 

If you are someone looking to invest in the short run for some quick profits, you may find better luck in holding off on investing in the stock market and going for safer investments with low leverage. On top of the spread of COVID-19, the untimely crude oil wars, and the world’s businesses being brought to a standstill, short term losses are inevitable. History tends to repeat itself, and the market will eventually correct its course in a few months, with the IMF and governments across the world trying to guide the economies through a rough period, financially and socially.

Amidst the crude oil price crash, the increase in the value of Indian rupee, people usually find gold to be the investment to rely upon during the time of crisis. However even Gold rates have been going down recently, but some argue that they remain a good bet to diversify your portfolio and hedge your risks. It is better to invest your money on fixed-interest bonds or deposits if you are looking to exit in the short run. 

Coronavirus

Source: tradingview.com

The market, as it is right now, is pretty volatile. It is in the best interests of everyone to not panic, and get jilted by the temporary loss of money on paper temporarily, and to hold the investments and wait for the market to get back to normal.

If you were looking to cash out of your investments during this period but are not constrained by the losses, EarlySalary is here to help – with instant cash loans at interest rates as low as Rs 9/day.

Quarantine during the Covid-19 Crisis? Here’s how to engage yourself

With the outbreak of the coronavirus pandemic, governments across the world have been forced to direct their citizens to quarantine themselves in their homes. This move of self-isolation is a necessary step in order to curb the rampant spread of the virus among the public. Confined to our own houses, many of us are missing the thrills of our social lifestyle. With nothing much to do apart from the tasks assigned under work from home, boredom is definitely engulfing us all. But there is nothing to worry about, the Earlysalary team is here to guide you on how you can turn the present situation to an exciting period with the following activities:

Yoga and body-weight exercises

Quarantine

Health has been one of those aspects of our life that have been neglected for a while. Today, with time on our hands, we can take good care of our bodies by indulging in physical activities such as yoga and other exercises. These will not only provide much-needed agility, but studies have proven them effective in keeping stress hormones under control, essential in surviving such straining times.

Since the onset of coronavirus, the body’s resilience to the disease or immunity has been a crucial point of discussion. Robust examinations of various health reports have shown the debility of viruses in front of bodies with impeccable immunity. Therefore, the task to undertake a physical health routine has become necessary. 

Meditation

Quarantine

As panic tends to increase around the world, it becomes crucial to calm your inner world. Meditation empowers one to subdue a tensed mind and soothe the nerves. Since ancient times, sages have been voicing the importance of having a meditational ritual in day-to-day life. Whether you want to use this time to connect or grow spiritually or seek tranquillity, a thoughtful-meditation practice is all you need. 

Learn Something New or Take an Online Course  

Quarantine

We all have some passion or desire to learn something which, unfortunately, due to scarcity of time we haven’t been able to explore or pursue. With the availability of online courses and millions of videos on platforms like YouTube, the current lockdown provides an opportunity to undertake those desired activities. The time can also be utilized for upgrading one’s skillset by pursuing courses that relate to their profession. This will not only provide professionals with an edge over their peers but also prove vital during appraisals or provide them with better opportunities.

Connect with friends and relatives

Quarantine

Social distancing does not imply getting yourself completely detached from your social life. We are living in an age where we can connect with anyone virtually. Talk to your friends and relatives and catch up with them on phones. In such hard times, assuring words from friends and family can do wonders for one’s mental health.

Read and write 

Reading has always been one of the sought-after activities to productively utilize time. Reading a book transports one to the fantasy land of the author’s imagination. There are numerous online sites and apps like Kindle and Kobo available to download and read books of vivid genres. 

Learned men and successful individuals have always emphasized the need to share one’s knowledge with their fellow beings. And what a better way to do that, than writing. We all possess pearls of wisdom that the world needs to know. Whether you have some tips on money management or handling relationships, this free time can be used to share those with other netizens on platforms like Medium or Quora.

Cultivate your hobbies

Quarantine

While fulfilling the demands of daily life, our hobbies can get sacrificed in the long run. The current time period can be used to revisit those long lost hobbies or to cultivate the current ones. If it’s gardening that enthralls you, then you now have time to pick up your tools and tend to your garden. Or if it is cooking that gets you going then it’s time to hit the stove and cook that dish you wanted to try for a long time.

Spend time with your family

Quarantine

The quarantine can be seen as a blessing in disguise for family life. In an age where families are turning dysfunctional at an alarming rate, coming and living together can be fruitful for many. It is time for the younger members of the families to connect with the older ones. Families have an opportunity to come together and bond with each other. The present times are testing and nobody knows exactly what the future holds.  It is up to us now to turn the circumstances in our favor and celebrate the essence of life. 

So instead of getting glued in front of a television set and getting frightened by the blaring of media houses, one can turn the present situation to their own advantage. Optimizing your physical and mental health should be part of your major commitment right now. Taking the necessary precautions and following public advice issued by WHO is essential to keep one safe from the invisible havoc. On the other hand, Earlysalary will safeguard your financial health with our instant personal loans, whenever you need us!

Stay Home, Stay safe!
We all are in this together 🙂 

A Beginner’s Guide On Getting Instant Loans Without Documents

Facing a cash crunch? An instant cash loan can help. An instant loan is essentially a personal loan which disburses loan with a short approval process. Loan apps such as the EarlySalary app provide personal loans that can fulfill your short term monetary needs. These are unsecured forms of credit that can be availed with minimal documentation at competitive rates and convenient repayment terms. 

The quickest option is to apply for an instant loan on the instant cash loan app. It has become much easier to avail a loan with just one click and that too at the comfort of your home or at the office with a smartphone and a working internet connection. The application and approval process is completely online. There are three basic eligibility criteria that you must check before applying:

  1. You must be above 21 years and below 55 years of age.
  2. Salaried individuals with a minimum salary of ₹18,000 (Metro Cities) and ₹15,000 (Non-metros).
  3. Must be an Indian citizen

If you need instant cash and fulfill the above criteria, read on to find 3 easy steps to avail an instant loan online without documents.

Step 1

EarlySalary, a loan app, asks for minimum documentation like proof of identity, proof of residence (leave and license agreement or electricity bill, latest three months bank statement (where salary/income is credited), salary slips for the last 3 months or the 3 months bank statement and one passport size photograph. All these original documents must be uploaded in PDF format.

Step 2

The next step is to download the loan app from the Google Play Store and register on it. Upload your documents on the app itself and fill in the necessary details. EarlySalary provides instant loans starting from INR 5,000 to INR 2 lakh. You can choose the borrowing amount on the basis of your repayment capacity and the EMIs. The duration of the loan can range from 3 months to 12 months. The entire documentation and transaction process is carried digitally – so no physical visits or verification is required throughout the process. 

Step 3

Once you submit a request on the loan app, it is reviewed and processed within 8 to 24 hours of your application. The approved loan amount is directly credited to your bank account. This is the easiest way to get an instant personal loan online.

Data Security 

If you are worried about the security and confidentiality of your personal details then Earlysalary processes maintain all precautions to protect your personal loan details. The app provides a Secure Socket Layer (SSL) Encryption. You are provided a secured login through https:// protocol. The 2-Factor or Multi-factor authentication lets you securely login using security questions or by the use of a security code sent to your registered mobile number. 

An additional feature of EarlySalary is that the firewalls filter the unauthorized and unsecured data coming and going out of EarlySalary’s servers. You do not have to provide any additional information while logging on EarlySalary as we do not use cookies. All your details and credentials are secured and kept confidential.

With the current global epidemic of Covid-19, self-quarantine and social distancing are the easiest precautions that one can take. Hence, getting an instant loan without the need for physically traveling with documents at interest rates as low as Rs 9/day is certainly the safest option for credit.

Still, wondering how to get an instant loan? Check out the EarlySalary loan app, read the FAQs and the process of how the online loans work. This will help you arrive at a decision.

This Gudi Padwa, give your finances a fresh start

In India, there is a prominent connection between the auspiciousness of a festival and managing one’s finances. March end witnesses the closing of balances and accounts in firms and institutions all across India. In comes April, and we ready ourselves to begin anew our financial planning standing at the threshold of the New year as per the Samvat calendar. Gudi Parva marks the beginning of a fresh year and new harvest season in Maharashtra, while North India busies itself to celebrate Chaitra Navratras. The time is considered auspicious to purchase assets like gold, start a new venture or invest money in new portfolios. Before we start with our financial planning, why not consider a few pointers to give ourselves informed perspectives and optimum knowledge? 

Here are a few key areas to look upon before we begin the new financial year 2020-21 and end it financially stronger. 

Financial Health Check-up

New beginnings also call in for a revision of the old. Planning is both forward and backward-looking, isn’t it? Moreover, we are amidst a lockdown due to the current epidemic, stock markets are at an all-time low, businesses are either shut down temporarily or ambling through, barely coping up with the abnormal state of the market. This makes it all the more essential to review our current state of affairs. 

  • Reviewing the investment as a portfolio is essential to gauge the overall returns and cost-benefit ratio. Assess the mix of investment in bonds, stocks, deposits and other liquid assets keeping in view the long term goals and risk-taking capacity. 
  • If the markets are showing a negative trend it is better to disinvest and go in for safer options such as bonds and deposits to reduce risk. 
  • Taxes play a major role in determining the quantum of our investments. Align the investments with the new tax schedule and invest in tax saving schemes like municipal bonds and ETFs. 
  • While reviewing our current investments, we should always keep our long term goals, such as retirement plan, child education, and marriage, updated and in sync with our short term priorities as well. 

Formulating a Financial Budget

Once we have got the hang of our last year’s investment schedule and return graphs, we can decide our budget for the new year in a more informed way. 

  • The simplest way is to write down the ex-ante income expected to be received and the expenditure to be taken care of. We should allocate our expenses well against the given income. 
  • Secondly, this is the best time to cut off unnecessary expenses and find alternate channels to reduce expenditure. 
  • Try and have separate budgets for healthcare, education, vacations, rent, insurance and other utilities that would occur all through the year. 
  • Budgeting also includes setting goals, like saving funds or acquiring assets or non-financial goals such as going on a vacation or buying a fancy car, and setting aside funds for that. 

Tax and Insurance Knockout 

Tax planning and insurance go hand in hand. The Income Tax Act of 1961 has ample deductions when it comes to insurance.

  • Health insurance for our family is the basic needs nowadays with the humongous amount of medical bills that accrue in a single hospital visit.
  • Besides that, life insurance and pension schemes, ELSS mutual funds and PPF schemes offer various tax benefits to the taxpayers.
  • Instead of waiting for the year-end to pay off our taxes, we must make it a point to plan our finances so as to save taxes and ensure better returns on our investments. 
  • We must also take care that our current insurance coverage matches our current lifestyle. For instance, a new parent should lay aside funds for his child’s education. A new employee must increase his cover to include his dependent parents. Payment of premiums should be planned as well to enjoy unhindered claims and cover. 
  • If required, consult a tax advisor or a chartered accountant for formulating a customized tax saving plan. 

To Save or Invest?

The onset of the new year also calls for finalizing our savings and investment goals. Saving and investment aren’t a yearly ritual but monthly exercises that scale as per our monthly income or salary. 

  • Risk takers can go in for higher return avenues such as equity while risk-averse people can find sound investment options in term deposits with banks, PPF, NSC or even mutual funds. 
  • Mutual Funds require a long term view, many would say about 7 years, to grant us favourable return and growth. Hence, MFs should be a long term goal. 
  • Wealth creation goals also come into fore while planning our finances. If we aim to buy a property in the near future, we should plan accordingly and save more. 
  • We need to provide for unforeseen expenses and keep our emergency fund stocked with enough savings. 

Managing Debt

The last and the most important aspect of planning our finances is debt management. Oftentimes, we go overboard with our expenses splurging unnecessarily. Or at times, we opt for a secured or unsecured loan to pay off the instalments of our house or vehicle, or else paying tuition fees at times. While starting afresh, all previous loans and their interest must be considered. 

  • Credit cards are another source of short term credit, the annualized rate of which may go up to 50-60%! A home loan may eat into your pockets at 9-11% depending on the prevailing rates of interest posited by the banks. Prioritize to repay credit card debt first.  
  • Next, make it a priority to pay off the debt with the highest rate of interest. Online lending portals, like EarlySalary, offer salary advances and loans at interest rates as low as INR 9 per day. Use a low-interest debt to pay a high-interest debt. 
  • At regular intervals, channelize the savings to the loan account. By doing this we can pay off the debt early and even save on a few interest installments. 
  • Use debt judiciously. Monthly crunch can be met by advances such as those provided by EarlySalary. These loans are flexible and inexpensive. We must try and explore newer sources of debt as well.

Another noteworthy thing is to protect ourselves from frauds and scams. This can easily be done by protecting the financial documents from being misused. Avoid using your Aadhar card or PAN card as identity proofs in all places. This makes us vulnerable as our financial information is easily available to dupes for misuse.

Planning can only be fruitful with optimal implementation. Sticking to our schedule and keeping ourselves flexible to the changes, we can surely boost our financial immunity and help us to kickstart a new financial year without any friction. 

Happy & Safe Gudi Parwa, happy financial planning! 

How EarlySalary has combated the Coronavirus

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.

The Coronavirus pandemic has caused most businesses to hit a slump, pushed finances down, created widespread panic, but most importantly – has infected around 2,20,000 people around the world as of now, killing almost 9000 of them. In dark times like this, it is of utmost importance to be safe and spread awareness so others can stay safe too. We at EarlySalary understand how significant of a problem COVID-19 is, and have taken several measures to combat this problem head-on, making sure that we do our best to not have this situation impact any of our services, while making sure that our employees remain safe, away from the pangs of the deadly Coronavirus. The safety of our employees and their families is our absolute priority. 

How EarlySalary has combated the Coronavirus

Here are some of the steps taken by us at EarlySalary in order to achieve our goal of providing as much service as possible in the times of distress, while keeping our employees safe.

  • We have enabled the staff of EarlySalary to work from multiple EarlySalary offices to prevent crowding and the potential risk of the spread of the virus
  • We have provided the employees with the option to work from home, and have taken various efforts to enable them to perform their work effectively from their residences
  • We’re relying heavily on tools like Zoom and Google Hangouts to remain connected and in collaboration. Not everyone is used to such extended work-from-home periods though, so we’ve been proactive with organizing learning sessions on staying motivated, remaining productive, and more. This is in addition to weekly team meetings to remain in the loop, of course!
  • We have imposed a travel restriction, to help ensure that they don’t get affected while traveling
  • Efforts have been made to ensure that all personnel are educated on the various safety measures and guidelines, like maintenance of personal hygiene, reduction in physical contacts, etc.
How EarlySalary has combated the Coronavirus

Despite the Coronavirus scare, we at EarlySalary remain committed to ensuring that our service to our customers isn’t affected. We’ve carried out business continuity exercises to ensure that our operations carry on unhindered. While ensuring an atmosphere of safety for our personnel, EarlySalary continues to put the customers first and assigns the highest priorities to ensure that our business stays up and running, 24*7. 

How EarlySalary has combated the Coronavirus

I, personally, am proud of the way our teams have adapted to working in this situation with all required measures and ensuring business continuity. Since we are an app-based service, all our services continue to be available throughout the day, seven days a week. I would like to ensure our clients, present and prospective, that despite all of the challenges presently faced, we at EarlySalary are firing from all cylinders. Infact, we understand that, at times like this, when the virus is running rampant and affecting the economies of people throughout the world, the need for us to carry out our jobs, and assist our clients in times of financial distress is absolutely necessary. With the current disruption in the economy, we understand that the need for instant loans on salary, with low-interest rates, like the ones provided by EarlySalary, will be necessary, now more than ever. We are fully equipped to handle our clients’ needs in need, 24*7. All our accounts managers are available for calls/video calls to assist you with any queries that you may have.

I also urge the readers to ensure that you take all the necessary precautions and stay safe. Wash your hands regularly with soaps and sanitizers regularly, avoid travel as much as possible and make sure to visit a doctor and get yourself checked at the first sign of any of the symptoms. As the old saying goes precaution is better than cure, as highlighted by this short poem that my colleague, Suneta Bhoslay, Deputy Manager (HRD), EarlySalary has composed:

Hopping, skipping and having fun
No one knew the fear of one (Virus)
Shaking hands and hugging each other
Never before was a threat to one another
They said it is spreading far and wide
We never saw it’s might and the plight
Some lost the battle and others seek how to tackle
Never was hygiene taken so seriously
It’s the question of our loved ones now dangerously
Let’s keep ourselves well hydrated, hands are clean and faces masked
Better late than never
Let’s win this battle forever

Stay HOME, Stay SAFE.