Month: January 2021

Categories
Business

Types of insurances when hiring a removal business in the UK

Types insurances removal business

Types of insurances when hiring a removal business in the UK. You get exhilarated when about to move your house. No doubt it is an exciting moment but at the same time, you get worried about moving tragedies. Unfortunately, if your belongings are damaged or scratched or lost then who will be responsible for this and how can you get payback for this. 

When you are hiring a removal business you must know about its insurance policies.

Types of insurances you can get:

Most of the removal businesses are offering the following types of insurance:

  • Public liability insurance

While working as a removal business, their employees may interact with the public in different ways. During their work they may unintentionally and unfortunately cause damages or accidents. Public risk insurance or public liability insurance deals with bodily injury, property damage, or death in such situations covering minor and major accidents that may occur.

  • Personal injury

Within Public liability insurance the personal injury insurance specifically covers bodily injury, if somebody gets injured, the company will bear the expenses of treatment. It will help financially for buying medicines, the cost of visiting doctors and hiring equipment, etc. 

Property is one of the most common things which can be damaged during a move. It is important to protect the properties on an individual level or business level.  While moving if property damage occurs to the public it is covered as part of the public liability insurance. However if it happens to the client when they hire a moving company it may also be covered under the Transport of Goods insurance

  • Transport of goods insurance 

During the transportation of goods from one point to another if any damage occurs it should be covered under the transport of goods insurance, this is one of the most important insurances that a home move company should have as it will cover any property damage during the transit of goods.

  • Furniture insurance

On the insurance market there is a form of insurance called furniture insurance which will cover the life time usage wear and tear of your furniture you should make sure that moving your furniture will not breach your insurance terms.

  • Cargo insurance

Cargo insurance is a type of transport insurance including the process of loading the products which rely on the value, route, and expiry time of the products. It provides insurance coverage for all sorts of materials used in transportation; this type of insurance should be considered when you are moving items abroad outside of the UK.

  • Land insurance

This type of insurance provides protection for liability against accidents which may happen on your land, it can include things such as slips and falls within the boundary of the land.

  • Marine insurance

Although not typical insurance you may encounter, marine insurance is a must for ship owners, it will cover the vessel against damage to items onboard a vessel and liabilities where cargo goods are lost or damage. This type of insurance is usually mandatory for ship owners; however it is good to know how you will be covered if a leg of your journey requires a ship.

Categories
Finance

All You Need To Know About CIBIL Score For Getting a Bike Loan

CIBIL Score For Getting a Bike Loan

If you’re looking to get yourself a two wheeler loan to buy yourself a bike, there are certain key things that you should take into consideration. Two wheeler loan interest rates and two wheeler loan eligibility criteria are two of them. In addition to these two, there’s also another one – your CIBIL score. 

As a matter of fact, your CIBIL score also plays a major role when it comes to availing a two wheeler loan. Now, if you’re wondering what this score is, here’s everything that you need to know.

What is the CIBIL score?  

The CIBIL score is essentially a three-digit numerical number that gives lenders like banks and financial institutions a preview of your credit worthiness. This is primarily why the CIBIL score is also referred to by many as the credit score. The higher the CIBIL score, the better your chances of getting a loan approved are. The score starts at 300, which is the lowest, and goes all the way up to 900, which is the highest.

What is the CIBIL score used for? 

As you’ve already seen above, the three-digit CIBIL score is used by financial institutions to determine your two wheeler loan eligibility. If your rating is found to be low, lenders might not approve your loan application. On the other hand, a high rating is more favorable since lenders would be far more willing to grant you a loan. 

What is the ideal CIBIL score for getting a bike loan?

The ideal CIBIL score for getting a bike loan tends to vary with the lender. While many lenders don’t offer loans to individuals whose score is below 750, others might be willing to offer individuals whose score is in the low 600s. But, if you wish to maximize your chances of getting a loan, it is always a good idea to have a credit score of 750 or above. 

Is it possible to improve your CIBIL score?

Of course. There are plenty of different ways to improve your score. Here’s a quick look at some of them. 

  1. Pay all of your loan obligations like your loan EMIs and your credit card bills on time before the due date. 
  2. Don’t just stick to paying the minimum amount due on your credit card, pay the entire statement amount.
  3. Keep your loan enquiries and applications to a minimum. A high number of hard inquiries into your credit score can lower it. 
  4. Refrain from utilizing your credit cards to their absolute maximum limit. 

Conclusion 

Now that you know how important the CIBIL score is when it comes to getting a two wheeler loan, always ensure that you keep it well above the 750 mark. This way, your chances of getting your loan application approved increases multifold.  

Categories
Business Finance

Are There Any Tax Benefits on Business Loans in India?

Tax Benefits on Business Loans

Are There Any Tax Benefits on Business Loans in India. A business loan in India comes with various tax exemptions and benefits under the Income Tax Act, 1961. Entrepreneurs who have secured any form of business credit can enjoy tax benefits and reduce the overall tax burden favourably. 

When a business services a loan, they repay the loan amount in monthly instalments or EMIs, which comprise of two main components. And are usually decided by the lender based on the creditworthiness of the borrower. 

EMI amount = Principal component + Interest component

Under the ITA, however, only the interest component of the EMI amount will be deducted as tax, not the principal bit. 

Moreover, to avail the business loan tax benefits, the total business income or revenue should not include any expenditure on –

  • Employee bonus
  • Office space rent
  • Office supply
  • Maintenance cost
  • Staff salary
  • Business advertisements

Taxable income

Any sum of money used to service the business debt does not comprise the total revenue, income, or profit for the company. And consequently, not included in the total taxable income of a business.

Gross or the total income of a business, typically constitutes the amount used to pay the interest on a loan. Because the company pays the interest amount over and above the borrowed amount; the expenditure is included in the total taxable income.

Further, borrowers only need to pay tax on the net business income earned in a financial year. As a result, the principal component, which does not comprise the total revenue earned by the business, is usually excluded from the total taxable income. 

Tax calculation

Any business entity can calculate the taxable income with the formula below:

Taxable income = Gross revenue/income – tax-deductible business expenses

Borrowers can write off any payment made towards the interest cost as a business expense and avail the tax exemptions. Mainly because the interest amount on the EMI is essentially the extra money you spend to avail the credit facility from a lender. So, the amount is taxable. 

Company owners can, therefore, use a business loan EMI calculator to compute the tax liability on the availed loan, for both fixed and variable interest rates. They need to subtract the fixed principal component from the total EMI amount to calculate the interest component, which will constitute the total taxable income. 

Businesses should also maintain updated, accurate records of the loan to ensure they can furnish essential documents and claim the tax benefits conveniently. 

Key takeaways 

  • All forms of business loans are tax-deductible under the Income Tax Act, 1961
  • Tax exemption only available on the interest component of the EMI amount 
  • Tax benefits on business loans can lower the overall tax burden
  • Tax exemptions are not available on the entire EMI amount
  • The principal component of the EMI amount is excluded from the taxable income
Categories
Entertainment

Must have accessories while Going on a Trek to Snowy Mountains

Must have accessories while Going on a Trek to Snowy Mountains

There’s one amazing way to escape from the monotony of life. A vacation, of course. With travel loan or personal loans easy to avail, it’s not much of a challenge to fund your vacation. And if you’re looking for ideas, a trek to the snowy mountainside may be something to consider.

If you like this idea, keep in mind that it’s necessary to take certain essential accessories along with you. Here’s a brief list of things that you must have on you before starting your trek.

1. Thermal wear

Thermal wear is typically worn as a base layer underneath your clothing. It is a tight-fitting piece of clothing that clings to the body and helps keep your body warm and insulated from the cold. Since it is the base layer, you are also required to wear a set of regular winter clothes on top of the thermal wear.

2. Waterproof jacket, pants, and gloves

Regular winter clothing is generally not waterproof. And so, it is essential to wear a waterproof and insulated jacket and pants as the outermost layer. This will help prevent the seepage of water into your clothing and keep you warm and dry. Also, a strong pair of insulated and waterproof gloves are also mandatory to prevent frostbite.

3. Insulated hiking boots

A good grippy pair of hiking boots that’s insulated and also waterproof is another very important accessory that you should carry. Considering the fact that you would be trekking up slippery and icy mountains, it is essential to take a pair of studded boots that offer good grip on both land and snow.

4. Portable water purifier

In addition to carrying water bottles, you should also take a portable water purifier along with you when going on a trek. They’re handy, very cost effective, and allow you to drink water from rivers and streams without the fear of contracting infections and diseases.

5. A head lamp

Navigating the mountains in the dark is near impossible without a source of light. And so, carry a strong but light head lamp along with you. Since it is mounted on your head, you can keep your hands free at all times.

6. Sunscreen lotion

The rays of the sun tend to be much more damaging when you’re at high altitudes. And so, a sunscreen lotion with a high enough SPF rating is crucial to protect your skin from the effect of harmful UV rays.

7. A multi-purpose swiss knife

A swiss knife is a handy pocket-sized tool that can help you in more ways than one. Featuring multiple tools, it can be used to cut fruits, wires, ropes, wood, and even open cans.

Conclusion

If you feel that these must-have accessories might cause a dent in your pocket, you could always avail a personal loan to fund these purchases. That said, as always, ensure that you check the personal loan interest rates and the personal loan eligibility criteria before applying for one.