Thursday, August 25, 2011

Raising the Funds for Start Ups

Raising the funds is an essential aspect to start a business. Any great idea and well written business plan would not work without start up capital. For most entrepreneurs, funding is the key when starting a small business. In reality; it is not easy to get funding. You must need to prove yourself first before anyone can be able to lend you that kind of money.

Businesses would often require an initial startup capital for pre operational expenses like marketing expenses, incorporation expense, business registration etc. Adequate funding would be required to start working on any plan. Inadequate funding is part of the list why business fail. Sometimes it is a matter of doing simple cash flow. Some companies failed because they stop exploring .Always remember there are various options available for funding, but before start exploring, there are several things that you need to remember-

    Are your needs short-term or long-term? How quickly will you be able to pay back the loan or provide return on their investment?
    Is the money for operating expenses or for capital expenditures that will become assets, such as equipment or real estate?
    Do you need all the money now or in smaller pieces over several months?
    Are you willing to assume all the risk if your company doesn't succeed, or do you want someone to share the risk?

 The answers to these questions will help you prioritise the many funding options available. Business funding is of two kinds-

Debt funding which allows you to borrow money and pay it back in a time frame or interest rate. You owe money whether or not your business succeeds or not. Bank loans are the common example of debt funding.

Equity funding where you will sell part of your company in exchange for cash. As an investor, you assume all the risk because if the business fails, you will lose all the money. The good thing is the fact that if it succeeds, the return of investment is pretty high.

 The fact is investors take a higher risk than lending firms because they are involved in your company. They most likely give advice. There are cases when investors only stay for few years until they get their return of investment. It is better not to give too much control of your company. If you are start up company, there are quite a number of funding options that are available. There are various funding options available, let’s talk about the few sources of startup funding-

Friends and Family

A lot of startups get their first funding from friends and family. If your friends or family happen to be rich, the line blurs between them and angel investors. The advantage of raising money from friends and family is that they're easy to find. You already know them.

There are three main disadvantages:

    you mix together your business and personal life;
    They will probably not be as well connected as angels or venture firms
    They may not be accredited investors, which could complicate your life later

Credit Cards

To have a good cash flow process for the business credit cards works as good tool. The cheapest introduction rate makes it more effective. Take note that if managed poorly, it can be expensive.

Bank Loan

Bank loans are another source of bank funds. This is much easier to obtain especially if you it is backed by assets or guarantor. There are loans where you can actually get a line of credit.

Government of India is attaching great importance to this sector and taking various policy measures to enhance the flow of credit to MSME sector.  RBI had constituted a working group under the chairmanship of Dr.K.C.Chakrabarty to suggest measures for Rehabilitation of sick MSME units and for improving the flow of credit to MSME sector.  The working Group has given various recommendations and suggested measures to be adopted by banks, Government and other Agencies.  RBI has advised all Banks to formulate a loan policy governing the extension of credit to MSE sector in the light of recommendations of the working group and BCSBI‘s code of commitment to Micro and Small Enterprises. Highlights of New Loan Policy for SME’s are as follows-

 Internal Scoring Model to be used for credit limits has increased to Rs.2 Crores and Risk Assessment Model for limits of Rs.2 crores and above vis-à-vis earlier it was Rs. 1 Crores.

 Minimum 15% margin for loans above Rs.50000/- and upto Rs.5 lacs whereas there was no margin specifically stipulated earlier. In exceptional cases, margins lesser than indicated in the policy can be prescribed with the approval of the appropriate authority as per powers delegated in bank’s concession policy.

 Extent of collateral securities has reduced to 60% (from 75%) to sanction secured credit facilities to MSE units.

 All Branch Managers can sanction collateral free loans to MSE sector with CGTMSE cover, upto their per borrower limits.

 Setting up of MSE Loan Processing Centers at key locations

 If term loan is sanctioned, working capital limit should also be sanctioned, if the same is not tied up with any other institution.

 The interest payable up to six months after commercial production will be included as part of the project cost for assessment of credit requirements.  Sufficient moratorium period say, up to six months, after commencement of commercial production, will be allowed for repayment of principal amount wherever required, to enable the unit establish itself in the market.

 When the sanctioning authority decides to reject a MSE credit application, the same will be conveyed to the applicant only after obtaining approval from the next higher authority.

Angel Investors

An angel investor is an affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity. A small but increasing number of angel investors organise themselves into angel groups or angel networks to share research and pool their investment capital. Angel Investors are becoming popular nowadays. It is better if you have a financial advisor who can structure the whole deal.

Private Lenders

Private lenders are another option when the banks say no. They specialised in industry and more willing to take risk. Private lenders are looking for the same information and will conduct similar due diligence as the banks do.

There many channels available to raise the funds for start up. First step to approach any of them is to pen down all your plans and proposals and start exploring, you will get the required funds……………..Best of Luck!

Residential rentals moved up by 11% in Q2-11 over Q2-10 in the Delhi and NCR region

The entire Delhi-NCR region have witnessed a hike in rental rates in Q2-11 over Q2-10
Improved residential facilities and booming IT and ITES sectors has resulted in increased rentals in the Gurgaon, Noida and Ghaziabad region.

New Delhi, 24th August 2011: A study by, India’s no 1 real estate portal showed that rentals for the Delhi and NCR region have seen an appreciation if we compare rents of a 3BHK residential apartment in Q2-11(Apr-May-Jun 2011) over Q2-10(Apr-May-June 2010). Though the rate of appreciation differs according to localities, there are enough localities which have witnessed double digit growths.
Commenting on the same Vineet Singh, Business Head, said “As far as rental trends for Delhi are concerned, the market will continue to see an upward movement. Although the Indian economy is still growing at a healthy pace, the jittery global markets may see some slowdown effect on the Indian market as well. Coupled with the already slow new project market and delayed construction of ongoing projects means that rentals will continue to escalate.”
A look at the rental prices of a 3BHK house in key localities of South Delhi and Dwarka shows that the residential areas of Kalkaji and Sector 6 Dwarka witnessed maximum appreciation. Both these areas have respectively witnessed 13% rise in rentals in Q2-11 over Q2-10. Other important localities of South Delhi like Greater Kailash, Saket and Malviya Nagar saw rentals appreciate by 9%, 7% and 6% respectively. The rentals in the Dwarka region have appreciated by 9% over a period of one year with Sector 12, 18 and 4 witnessing a 10% rise in rentals in Q2-11 over Q2-10.
Other important residential localities of Delhi like Rohini in the North and Mayur Vihar in the East also saw escalations in rentals by 26% and 13% respectively in Q2-11 over Q2-10. IP extension in East Delhi saw steady rentals while Janakpuri saw 4% appreciation in rentals in Q2-11 over Q2-10.
Most of the localities of the Noida and Ghaziabad region have seen double digit appreciation in rentals. Key areas of Noida like Sector 62, Sector 61, Sector 93, and Sector 82 have seen rentals escalating within the range of 14% to 26% over a period of one year. In Ghaziabad area, Vaishali saw maximum appreciation with 19% rise in rentals in Q2-11 over Q2-10.
All important localities of Gurgaon saw double digit rental growth. Important residential localities like Sector 56, Nirvana Country and Sohna Road saw 19%, 15% and 13% rise in their rentals in Q2-11 as compared to Q2-10. Both Sector 52 and Sushant Lok witnessed 14% rise in rentals over the same time period.
Therefore, while Delhi has witnessed a substantial appreciation in rentals, the NCR region (Gurgaon and Noida) has seen far higher growth. On a national level, when we look at rentals across the other important cities of the country, then residential rentals in Mumbai moved up by 9%, Delhi by 11 %, and Pune saw flat residential rental rates.

Posted: 24 Aug 2011 04:52 AM PDT

Tuesday, August 23, 2011

New banks may need Rs 1,000 crore

The Reserve Bank of India (RBI) is set to release the draft licencing norms for new private banks in the next few days, with wide-ranging conditions that would include a minimum net worth of Rs 1,000 crore for companies to be eligible to set up banks in India. The central bank, however, is unlikely to push through with issuing final licences to new banks until such time as the Parliament approves the Banking Laws (Amendment) Bill 2011.

A parliamentary standing committee is examining the bill which was introduced in Lok Sabha in March.

Sources, who did not wish to be identified, said the Bill may come up in parliament only in the winter session.

IFCI Ltd, Srei Infrastructure Finance Ltd, Religare Enterprises Ltd, Shriram Transport Finance Co Ltd, L&T Finance Ltd, Bajaj Finserv Ltd, Indiabulls Financial Services Ltd, and Reliance Capital Ltd are among those who are keen to set up banks.

The bill, when legislated, will empower RBI to dismiss a bank’s board and force its reconstruction to protect the interests of depositors, shareholders and employees. It will allow RBI to seek details of associate enterprises of banking companies.

“Passing the bill is necessary before guidelines for new bank licences are finalised,” said a finance ministry official, who did not wish to be identified.

HT Correspondent, Hindustan Times
New Delhi, August 22, 2011

Anna needs your support - Kindly Read...

Request - Kindly Read & Forward to as much as contacts you can.

लाख करोड़ का सवाल है ...
भारतीय गरीब है लेकिन भारत देश कभी गरीब नहीं रहा
"* ये कहना है स्विस बैंक के डाइरेक्टर का. स्विस बैंक के डाइरेक्टर ने यह भी कहा है कि भारत का लगभग 280 लाख करोड़ रुपये उनके स्विस बैंक में जमा है. ये रकम इतनी है कि भारत का आने वाले 30 सालों का बजट बिना टैक्स के बनाया जा सकता है.
या यूँ कहें कि
60 करोड़ रोजगार के अवसर दिए जा सकते है. या यूँ भी कह सकते है कि भारत के किसी भी गाँव से दिल्ली तक 4 लेन रोड बनाया जा सकता है.

ऐसा भी कह सकते है कि
500 से ज्यादा सामाजिक प्रोजेक्ट पूर्ण किये जा सकते है. ये रकम इतनी ज्यादा है कि अगर हर भारतीय को 2000 रुपये हर महीने भी दिए जाये तो 60 साल तक ख़त्म ना हो. यानी भारत को किसी वर्ल्ड बैंक से लोन लेने कि कोई जरुरत नहीं है. जरा सोचिये ... हमारे भ्रष्ट राजनेताओं और नोकरशाहों ने कैसे देश को लूटा है और ये लूट का सिलसिला अभी तक 2011 तक जारी है.
इस सिलसिले को अब रोकना बहुत ज्यादा जरूरी हो गया है
. अंग्रेजो ने हमारे भारत पर करीब 200 सालो तक राज करके करीब 1 लाख करोड़ रुपये लूटा.
मगर आजादी के केवल
64 सालों में हमारे Hkz’Vkpkfj;ksa
 ने 280 लाख करोड़ लूटा है. एक तरफ 200 साल में 1 लाख करोड़ है और दूसरी तरफ केवल 64 सालों में 280 लाख करोड़ है. यानि हर साल लगभग 4.37 लाख करोड़, या हर महीने करीब 36 हजार करोड़ भारतीय मुद्रा स्विस बैंक में इन भ्रष्ट लोगों द्वारा जमा करवाई गई है.

भारत को किसी वर्ल्ड बैंक के लोन की कोई दरकार नहीं है
. सोचो की कितना पैसा हमारे भ्रष्ट राजनेताओं और उच्च अधिकारीयों ने ब्लाक करके रखा हुआ है.

हमे भ्रस्ट राजनेताओं और भ्रष्ट अधिकारीयों के खिलाफ जाने का पूर्ण अधिकार है.हाल ही में हुवे घोटालों का आप सभी को पता ही है
- CWG घोटाला, २ जी स्पेक्ट्रुम घोटाला , आदर्श होउसिंग घोटाला ... और ना जाने कौन कौन से घोटाले अभी उजागर होने वाले है ........

Summary of All scams of India : Rs. 910603234300000/-


See how Lokpal Bill can curb the politicians, Circulate it to create awareness

      Existing System

System Proposed by civil society

No politician or senior officer ever goes to jail despite huge evidence because Anti Corruption Branch (ACB) and CBI directly come under the government. Before starting investigation or prosecution in any case, they have to take permission from the same bosses, against whom the case has to be investigated.
Lokpal at centre and Lokayukta at state level will be independent bodies. ACB and CBI will be merged into these bodies. They will have power to initiate investigations and prosecution against any officer or politician without needing anyone’s permission. Investigation should be completed within 1 year and trial to get over in next 1 year. Within two years, the corrupt should go to jail.
No corrupt officer is dismissed from the job because Central Vigilance Commission, which is supposed to dismiss corrupt officers, is only an advisory body. Whenever it advises government to dismiss any senior corrupt officer, its advice is never implemented.
Lokpal and Lokayukta will have complete powers to order dismissal of a corrupt officer. CVC and all departmental vigilance will be merged into Lokpal and state vigilance will be merged into Lokayukta.
No action is taken against corrupt judges because permission is required from the Chief Justice of India to even register an FIR against corrupt judges.
Lokpal & Lokayukta shall have powers to investigate and prosecute any judge without needing anyone’s permission.
Nowhere to go - People expose corruption but no action is taken on their complaints.
Lokpal & Lokayukta will have to enquire into and hear every complaint.
There is so much corruption within CBI and vigilance departments. Their functioning is so secret that it encourages corruption within these agencies.  
All investigations in Lokpal & Lokayukta shall be transparent. After completion of investigation, all case records shall be open to public.  Complaint against any staff of Lokpal & Lokayukta shall be enquired and punishment announced within two months.
Weak and corrupt people are appointed as heads of anti-corruption agencies.
Politicians will have absolutely no say in selections of Chairperson and members of Lokpal & Lokayukta. Selections will take place through a transparent and public participatory process.
Citizens face harassment in government offices. Sometimes they are forced to pay bribes. One can only complaint to senior officers. No action is taken on complaints because senior officers also get their cut.
Lokpal & Lokayukta will get public grievances resolved in time bound manner, impose a penalty of Rs 250 per day of delay to be deducted from the salary of guilty officer and award that amount as compensation to the aggrieved citizen.
Nothing in law to recover ill gotten wealth. A corrupt person can come out of jail and enjoy that money.
Loss caused to the government due to corruption will be recovered from all accused.
Small punishment for corruption- Punishment for corruption is minimum 6 months and maximum 7 years.
Enhanced punishment - The punishment would be minimum 5 years and maximum of life imprisonment.

Dear All,
Please go through the details carefully & try to be part of this mission against corruption.
Things to know about Anna Hazare and Lok pal Bill-:
  1.Who is Anna Hazare?                                                                            
  An ex-army man(Unmarried). Fought 1965 Indo-Pak War.                                                      
  2.What's so special about him?                                                                    
  He built a village Ralegaon Siddhi in Ahamad Nagar district, Maharashtra                          
  3.This village is a self-sustained model village. Energy is produced in the village itself from  
  solar power, biofuel and wind mills. In 1975, it used to be a poverty clad village. Now it is one
  of the richest village in India. It has become a model for self-sustained, eco-friendly &        
  harmonic village.                                                                                
  4.This guy, Anna Hazare was awarded Padma Bhushan and is a known figure for his social            
  5.He is supporting a cause, the amendment of a law to curb corruption in India.                  
  6. How that can be possible?                                                                      
  He is advocating for a Bill, The Lok Pal Bill (The Citizen Ombudsman Bill), that will form an    
  autonomous authority who will make politicians (ministers), bureaucrats (IAS/IPS) accountable for
  their deeds.                                                                                      
 7. It's an entirely new thing right..?                                                            
  In 1972, the bill was proposed by then Law minister Mr. Shanti Bhushan. Since then it has been    
  neglected by the politicians and some are trying to change the bill to suit their theft          
8. Oh.. He is going on a hunger strike for that whole thing of passing a Bill ! How can that be  
  possible in such a short span of time?                                                            
  The first thing he is asking for is: the govt should come forward and announce that the bill is  
  going to be passed.                                                                              
  Next, they make a joint committee to DRAFT the LOK PAL BILL. 50% government participation and 50%
  public participation. Bcoz u can't trust the govt entirely for making such a bill which does not    
  suit them.                                                                                        
9.What will happen when this bill is passed?                                                      
  A LokPal will be appointed at the centre. He will have an autonomous charge, say like the Election
  Commission of India. In each and every state, Lokayukta will be appointed. The job is to bring all  
  alleged party to trial in case of corruptions within 1 year. Within 2 years, the guilty will be  
Pass this on n show ur support..                                                                  
Spread it like   fire;
Our Nation needs us... Please Contribute...
This is not just a forward, it’s the future of our Nation.
आप लोग जोक्स फॉरवर्ड करते ही हो.
इसे भी इतना फॉरवर्ड करो की पूरा भारत इसे पढ़े
... और एक आन्दोलन बन जाये






Anna Letter .pdf Download this file

Wednesday, August 17, 2011

The ABCs of Applying Business Loans

The first thing that will come to anyone’s mind when  planning to start a new business or thinking of expanding the  current business, is applying for a business loan to meet the initial capital. Unlike the previous decade, a number of banks are welcoming open handedly the SME’s with attractive schemes and door step services.

Many banks have expanded their credit options by regularly updating their product lines and services and had even opened special counters for SME’s.

How to approach a bank

Leveraging on credit is one of the best tools for expanding business.. So the question now is, how do you know if you’re eligible to apply for a business loan? In the world of banks and Financial Institutions, there are some components that they usually use to evaluate credit worthiness and trust worthiness of the clients approaching them. Your capacity to re-pay the loan and your reliability is considered as most important and critical to your credit worthiness.

Banks will analyze the financial statements and records of your business to see how the business is doing. In general, owners of businesses that have been operating with consistent and high profits for the past 3 years or more are easily approved by financiers.

The capital money you have personally invested into the business can be seen from your financial records. This is important from the bank’s perspective because it shows the level of confidence you have for your own business.

For novices in business, it will be a bit tough to convince the bank that you are a trust worthy client. The bank will look into your income status, personal credit history, current assets and liabilities, educational background and business experience or background to evaluate your eligibility.

Create a more accurate, polished and professional business profile with the help of a professional to present to the banks. Banks might even ask and talk to your references. They will look into your credit history and check if you have mishandled accounts, delinquent credit cards and whether you have past due loans from others. Finally, they’ll also check if there’s any legal cases filed against you, your partners or your business.A clearly prepared and well-researched business plan shows how much dedication and passion you have for your business.

If the banks assess you in terms of your assets, this method often calls for a collateral security and the loans sanctioned so are called a secured loan. A secured loan will usually have lower interest rates. So, you should seriously consider if you can offer a collateral for your business loan. Your collateral can be a property, business premise, machinery, or any other business assets.

If you have no collateral to present, then you’ll most likely get a higher interest rate in comparison or be approved only with a small amount for your business loan. All these depend on how much you need and the purpose for which you need it.

The banks may consider your purpose of applying for a business loan, and also the local economic conditions, i.e. the financial climate in your industry; if it is bad, you’re less likely to be approved for a loan.

Having an insurance to your property / equipments is a cushion for credit managers to sanction the loan easily. Some banks even insist on having insurance.

Credit worthiness calculations in general

Business loans are provided under two major categories: Term Loans (both secured and unsecured) and Over Drafts. Loans can be applied for a variety of business requirements such as starting new business ventures, expansions / new purchases, working capital requirement, vendor and dealer financing, bill discounting etc. There are different types of term loans today like short term loans, long term loans and intermediate loans.

Credit worthiness is calculated on the basis of your annual turn over as per account statements. For account statements banks usually rely as per Income Tax Returns (ITRs). It is a practice to show business as a loss in ITR’s to save tax. But such practices would affect the credit worthiness of the client.

The most common documents banks would ask for loan approvals are : KYC documents ( ID and Address proofs ), ITR’s ( last 2-3 years ) which should be clubbed along with Balance Sheets, P & L Accounts of the respective years ( audited and certified ). Statements of all bank accounts and loan accounts and a business profile along with an ownership proof of the business premise also would be asked. These are the basic documents asked and it may vary for start ups.

Old generation banks and cooperative banks, to a certain extend rely upon existing customer relationship, or the previous / existing experience with the client as an evaluation of this trust worthiness.

But new generation banks strictly follow their set calculation patterns. A common calculation pattern of banks and Financial Institutions’ is sanctioning a loan amount which could be a set multiple of the monthly income.

Some other banks calculate on the basis of Fixed Obligations to Income Ratio (FOIR). Most banks restrict FOIR to a maximum 50% of the monthly income. That means, taking into consideration that he needs 50% of his income for his other expenses, all the repayments of fixed obligations including the new application would be restricted to 50% of the gross monthly income. The calculation will be like this:

Loan Eligibility = Gross monthly income * 50% - all other obligations / per lakh EMI ( EMI calculated on the basis of tenure and rate of interest.

For collaterals usually the loan eligibility is calculated on the basis of LTV ( Loan to Value ) of the pledged property, restricting the loan amount up to 70-85% of the property value based on the current market value evaluated by the bank’s evaluator.

For new entrepreneurs, banks are even working out schemes of sanctioning loans on the basis of the good track record of their existing or extinguished loans. But at the same time, taking too much loans would restrict your credit worthiness.

A consumer loan repayment history is maintained by every bank in their respective branches. Every time when there is default in credit history of borrower it is reported by individual banks from which he has taken loan to the CIBIL (Credit Information Bureau of India Limited). On the basis of the reports sent by its member banks, CIBIL maintains its CIR. It is circulated by CIBIL in its original form on demand of lending institutions when an individual approaches a bank seeking new loan. If a person who has taken loans from different banks and has defaulted on them, its default report can be generated by any banks through CIBIL with accuracy that how many loan A/Cs does the individual maintains & on which loan A/Cs his EMIs are overdue.

You can access your CIBIL score (CIR) directly from CIBIL by clicking the following link and follow the instruction mentioned in the link

Banks and FI’s today have many scientific methods to check and access your credit scores and the process of credit appraisal is getting more scientific, especially with the adherence to CIBIL reports.

So, keep in mind, a good and steady repayment of loans and related transactions can get you out of a debt trap and also it will restore and enhance your credit worthiness in future

Written by Nisary Mahesh   
Monday, 07 June 2010 05:30
Sorce:-Small  Enterprise

Indian entrepreneurs, get your act right

They are actors, their students are top Indian corporates and they can sure teach a thing or two about posturing, interjection and voice modulation that could make or break a mega business deal. It could be a tip on increasing the decibel level or simply explaining what to do with that awkwardly dangling left hand while making a presentation - but, as many Indian corporates are discovering, the 'acting' lessons - or training in soft skills - can be invaluable.

Acanthus Associates, one such Britain-based firm, was recently in India to conduct a training programme with a global audit and advisory services firm. Launched in 2009 by Nicky Thompson, the core group of the company comprises six members, all coming in with some kind of acting background.

"The combination of acting and business is unusual. All of us have a pretty broad background in business. A couple of us have worked in business... one is an accountant. Besides, we have all done additional training," Thompson told IANS.

For the two-day training, Thompson started with role-playing exercises where her team members acted like clients, CEOs and colleagues while interacting with the real life corporate participants.

Partha Guha, one such participant, said: "In one meeting, one person was talking about how he's moving on to a new role in the company. So I was told that at that point, I should have got up and said 'congratulations', which would have helped in building a personal rapport."

Guha says he found the training personally very beneficial as "in industries where interaction with clients is a critical thing, it's important to know what are the things we need to say or how we should address a particular issue or how we should read other people.

"What these guys do is they develop a very interesting and engaging way of addressing some of these needs for soft skills," he added.

The trainers encourage you to speak, gauge your shyness level and point out when the confidence on your face is not reflected through your voice.

Thompson says she usually designs their training modules according to the client company's requirement. But broadly "we try to tell an individual how to make an impact with his presence, coming across in a way which is authentic, effective, how to flex style and use it in influencing and negotiating during meetings".

While internationally there are groups like Impact Factory and Theatre of Leadership that have made a name in this business, back home Theatre Nisha runs similar programmes with firms like Cognizant, Lanson Toyota, Infosys and Tata Consultancy Services.

Chennai-based V. Balakrishnan, a product of the National School of Drama (NSD), Delhi, conducts these sessions along with his team whose strength varies from six to 10.

"We design the module according to the company's need. It may range from basic introduction to icebreaker sessions to business motivation sessions. It may be about lifting morale or creating an atmosphere of trust," Balakrishnan, who has 18 years of experience in theatre, told IANS.

While Theatre Nisha conducts training sessions only in a group as it believes "for the proper communion to be evoked, the entire team must participate", Acanthus designs programmes for individuals as well.

Describing the modus operandi, Thompson says the first step is to have an interaction with an individual and analysing "if he is sounding confident but not making eye contact. After that, we have a series of practical exercises that can go into months".

Ask her how different is her current job from acting and she says: "Not every actor can do this. You play a character, but you have to focus on others' need more than your own performance!"

And what if she encounters an exceptionally reserved participant? "Some people are very uncomfortable with change, we encourage them to do one thing differently every day. It cuts the pathways in the brain, and makes them more receptive."

Balakrishnan, however, starts with physical exercises for the shy ones so that they get to relax and make a start on their own.

Rashmi Rajput, an HR manager at Cognizant in Chennai, who regularly calls Balakrishnan to take one-day training sessions during the induction of new joinees, said: "We don't want our induction to be boring, we want it to be fun, an interactive we call him."

Mohita Nagpal | 16 Aug, 2011
Source:- SME Times

Tuesday, August 9, 2011

Crusade against Corruption

Anna Hazare’s crusade against corruption has rattled the government at centre. The result is that a weak draft of Lokpal bill is cleared, but is not acceptable to the civil society activist Anna Hazare. He said that the corrupt would not be afraid of Lokpal and the poor would never get justice. The corruption is affecting the common man most in his daily life. It is know to all that corruption is crippling the society fabric and the number of harrassed persons are increasing. Modus operandi of the various government and municipal departments, is to harrass a person to the hilt, so that he coughs up kickbacks. At rationing offices the masses suffer untold hardships. The plight of persons living in slums is worst. The middle class and economically weaker sections of the society need food and other provisions at lowest rates. They need ration card to get them but to get a ration card from rationing office without bribing is impossible. In Mumbai there are more then 20,000 co-operative housing societies and much more in Maharashtra. Every person living in them knows the whoopingly corrupt staff and tauts rule these offices. The modus operandi is the same-harrass the person to the hilt. Without greasing the palms of the clearks and officers, their just matter will not be looked in. Building proposal and taxation department of BMC and all other civic bodies have become hot beds for corruption. The revenue department’s offices like that of Talati, Tehsildar and district lavel officers are nightmeres to deal with.
The story is same everywhere and the newspapers are full of them that to get your legitimate work done you need bags of money to part to them. Hazare’s crusade has opened the the pandora’s box of worms. He must be supported by the public to bring extensive reforms in all the government departments specifically dealing with the masses directly or indirectly. Corruption can be takled by removing unnecessary hardships. Reform process must start with the simplification of the tedious and outdated rules and procedures. Often the rules and procedures of one department is diagonally opposite to that of other department and hence there is hardly any co-ordination between them. If the procedures are simplified in context of the changing circumstances, the government and the authorities will be doing the great service to the society. Anna Hazare’s crusade must work as the clarion call to us all to fight corruption at all levels.

Posted: 08 Aug 2011 02:05 AM PDT

By Murari Chaturvedi

Monday, August 8, 2011

LIC Housing Finance hikes lending rates by up to 50 bps

MUMBAI: Mortgage lender LIC Hosuing Finance today raised its lending rate by up to 50 basis points, in line with peers.

Under the new rate slabs, a loan under Rs 30 lakh will be charged an interest of 10.65 per cent per annum while those over Rs 30 lakh but under Rs 75 lakh will be charged 11 per cent, a statement issued here said.

A loan above Rs 75 lakh will be charged 11.50 per cent, it added.

Mortgage major HDFC had come out with a similar announcement last week, following the Reserve Bank's July 26 announcement of hiking its key rates by a higher than expected 50 basis points.

The RBI has hiked its key rates a record 11 times over since March 2010 in order to tame the uncomfortable inflation number, which stood at 9.44 per cent for June.

Source:-Economics Times

New RBI rules about ATM usage

Over the past couple of years, there has been a vast change in the way you conduct your banking transactions, be it online payments, swiping cards at shopping outlets or withdrawing cash from ATMs. The RBI regulations aimed at strengthening the safety infrastructure and banks encouraging the use of alternative channels like ATMs has meant that the routine transactions have become more userfriendly and secure.

Banks too are keen that ATMs are seen as more than just cash dispensing machines, resulting in their increased usage. "After the changes in the regulation on ATM usage, we have seen a four-fold increase in non-Standard Chartered customers accessing our ATMs," says Rajashree Nambiar, general manager, distribution, Standard Chartered Bank. Concurs Shalini Mehta, executive vicepresident, Kotak Mahindra Bank: "ATM usage has certainly gone up. The total transactions have increased by 106% since April 2009. Customers have adapted to ATMs as one of the most preferred channels for basic banking transactions."

To make the most of this conducive environment, you need to be wellacquainted with the regulations governing ATM transactions that have been introduced in the past few months. Here are some you should know about.

Limited free transactions The most recent stricture from the banking regulator concerns third-party ATM transactions. Beginning 1 July, the five free transactions allowed at third-party ATMs include non-financial transactions as well. So, while earlier there was no limit on nonfinancial transactions like balance enquiry and taking a mini-statement, now these will be charged.


The HDFC Bank, for instance, charges Rs 20 per transaction for cash withdrawal and Rs 8.50 for non-financial transactions from account holders who exceed the free usage limit at third-party ATMs. Says Sumant Kathpalia, head, consumer banking, IndusInd Bank: "For savings account holders who maintain an average balance of Rs 10,000 or more, all third-party ATM transactions are free. For others, we charge Rs 20 per incremental cash withdrawal and Rs10 for non-financial transactions after they have used their five free services per month. But for certain types of accounts, such as the premium account, the charges are waived." Not all banks have a differential charge structure and could levy the same charges for all kinds of transactions.

Alerts for all transactions Another customer-friendly measure that has been introduced from 1 July is one that could minimise the damage caused by misuse of lost or stolen cards. Banks have been asked to send SMS alerts to their customers for all card transactions, be it online, at merchant establishments or ATMs. Prior to this, banks sent alerts only if the value of transactions exceeded a certain limit, usually Rs 5,000. With this facility being extended to all transactions, you will be in a better position to take immediate remedial measures, such as blocking the lost or stolen card in case a fraudulent transaction is conducted without your knowledge or consent. Compensation structure

There have been several complaints, wherein an ATM fails to dispense cash but the amount is debited from the card holder's account. Besides, banks have been known to drag their feet over rectifying such errors. The RBI has now directed the banks to resolve such issues within seven working days of a complaint being made, failing which the banks will have to pay a compensation of Rs 100 for each day of delay. Before 1 July, the banks were given 12 days to rectify the errors involving faulty debits by ATMs. However, to be eligible for the compensation, you need to have made the complaint within 30 days of the failed transaction.

Source:-Economics Times

Saturday, August 6, 2011

Don't let real estate developers spoil your home dream

Satish Menon, 68, and his wife Vijaya, 64, have been waiting for nearly 12 years to move into their new home. In 1999, they had booked a 2-BHK house in Navi Mumbai, measuring about 800 sq feet. Even though the building is almost ready, they haven't got possession of the house due to some legal issues.

"The property cost was about Rs 7 lakh then. Since we had some savings, we paid most of the money to the developer," says Menon. "Since the builder had not taken the requisite permission from the authorities, the building did not get any electricity or water connection. Then someone filed a claim suit and now, even though the structure is ready, the matter is in court and the developer has not yet given us possession to the property."

According to his wife, Vijaya, the developer has been assuring them that they would get the possession soon. He is, however, not willing to refund their money. "We won't be able to afford a 2-BHK at the prevailing rate. Some others who had booked a flat in the building are contemplating a legal case against the builder, but another case will only delay the possession," she says.

Do your homework

The story of the Menons is not an isolated case. Very often, home buyers are staring at a bleak future, with no light at the end of tunnel: legal issues, monetary problems... the reasons may vary. But many buyers, especially in upcoming projects, are often taken for a ride by developers, and only a lengthy legal battle ensures a refund of their money.

Home-buyers should first do some homework before signing a contract with a property developer, says Ravi Goenka, an advocate with Mumbai-based Goenka Law Associates. "It will be very difficult to get back your money once paid, as a lot will depend on the conditions mentioned in the agreement between you and the builder," he says.

A customer, after zeroing in on a property, has to pay a booking amount to block the property, and also sign an 'agreement for sale' with the builder, points out Goenka.

"Customers are liable for refunds on the cancellation of allotment, but many builders include a specific clause pertaining to refunds in the agreement, which may or may not favour a full refund. The percentage of amount deducted could vary from 5-10% to 20-25%, depending on the developer and prevailing market conditions," he says.

Clause and effect

Generally, big, reputed builders don't delay a refund as they have a reputation to protect, says Goenka. Buyers are entitled to withhold payment if the construction does not proceed satisfactorily or as per schedule.

Property buyers should check that all regulatory approvals pertaining to commencement and completion of the project are in place, says Sanjay Dutt, chief executive officer - business at Jones Lang LaSalle India. They should pay particular attention to provisions in the agreement that talk about compensating buyers for delays, he says.

"This clause strengthens the buyer's position and, in case of a premature exit from the project, any deductions can be negotiated more effectively. It is very advisable to check for any ambiguity in clauses specific to refunds at the time of booking, and, more importantly, prior to the allotment letter," Dutt says.

Payment through cheque

Customers should try and make all payments through cheques and avoid making cash payments. This way, they will have proof of payment in case the developer refuses to issue a receipt. While making the initial payments, the customer should also find out from the developer how much amount will be deducted in case the booking is to be cancelled. If there is a delay on the developer's part, then the customer is entitled to a complete refund with an interest component as well.

It is the developer's responsibility to ensure that the possession is given on or before the date mentioned in the contract agreement, says Atul Modak, Head - Kohinoor City.

"In case there is a delay from developer's side and this delay is not due to any circumstances beyond the developer's control, then, if the customer decides to cancel the agreement, the developer is liable to refund the entire amount received from the customer with a simple interest at 9% per annum," he says.

Delays ranging from four to six months are fairly common, so a customer should factor in such delays and not stretch his finances too much. A check on the developer's credentials is a must before investing money. Projects pre-approved by reputed banks are a good bet as banks would have conducted a fairly thorough due diligence of the property before endorsing it.

At times, a developer could go beyond the contract to help the buyer if the case is genuine, says Vicky Oswal, chairman and managing director of Oswal Realty. "The developer and the customer sign a contract, which stipulates that in case a customer delays payment, the developer can deduct some amount of money. If the case is genuine, say, for instance, some one has fallen ill in the family or has lost job, the developer may actually refund the whole sum," he says.

Get loan sanctioned before property hunt

A property deal may also get cancelled due to lack of funds when banks, based on a customer's eligibility, refuse to sanction a housing loan.

"Banks generally calculate the loan eligibility by taking into account the applicant's take-home salary," a senior official of Union Bank of India says. "A bank official may tell a customer that a loan has been approved in principle, but if documents submitted with a loan application show that the applicant does not meet the eligibility criteria, then the bank can refuse the loan," the official said not wanting to be named.

In such cases, the customer may be forced to cancel the deal, sometimes after registering the property by paying the stamp duty and the registration charges.

To avoid such a situation, a home-buyer should get the loan sanctioned before registering a property, says Goenka. "No refunds are possible of the stamp duty paid.

The developer, to free his property, will have to get a deed of cancellation of sale registered, to ensure that the earlier agreement is cancelled.

The developer may have to pay some nominal charge as stamp duty for this," he says. Once the cancellation deed is registered, the developer or seller can put the property back in the market for sale.

At times, the developer could also try to accommodate the buyer in some other project of his in the vicinity. "Also legal recourses in India are a long and lengthy process which may take years to be resolved. It is always better to resolve the case amicably," he says.

Source:-Economics Times

IndiaFirst launches Money Back Health Insurance Plan

New Delhi: IndiaFirst Life Insurance, a joint venture between Bank of Baroda and Andhra Bank along with UK's Legal & General, has announced its foray into the health insurance market with the launch of IndiaFirst Money Back Health Insurance Plan. The announcement was made by Dr. P. Nandagopal, managing director & CEO, IndiaFirst Life Insurance, at a press conference here on Wednesday.

"The unique proposition of this plan is that it offers a comprehensive health cover for the entire family along with the investment flexibility to grow wealth by investing in different funds under a single plan," said Dr. Nandagopal.

A substantial part of the premium you pay is actually credited into your policy account and this money is invested in various funds as per your choice to get you optimum returns. This money accumulates in your account and comes back to you at the end of the policy. What's more, you can also use this amount anytime if you need to cover hospital expenses that are beyond the insurance limits or not payable under this policy.

Modern day stress, eating habits, sedate life style and family conditions all cause serious damage to our health. Most of us ignore health insurance because we just don't want to incur premium costs when we get nothing in return except when there is a serious health problem.

"Customers are better off saving for health, long-term health plans are better than short term ones and customers want better service delivery - these are the three key insights on which we have built the IndiaFirst Money Back health Insurance Plan," said Dr. Nandagopal.

Speaking on the key differentiator of the product, he added, "Our Money Back Health Insurance Plan is the most convenient one to use in case of claims. Not only is it cashless in over 4956 network hospitals, you just need to swipe your Health Card like you do for your credit card and our call center will instantly authorize the payment after checking the eligibility. This is the first of its kind facility offered in India and will be most convenient for customers in case of medical emergencies."

The plan is a long term plan for 5 or 10 years and offers dual tax benefit of Section 80C and 80D, under the current tax laws. It offers the convenience of cashless treatment, cover for 195 day care procedures, re-imbursement of medical expenses for 30 days pre and 60 days post hospitalization, cover for the entire family (spouse, two children and two dependent parents) under one plan.

Source:- Economics Times

Friday, August 5, 2011

Property market facing downturn in Noida, NCR

NEW DELHI: According to the fresh real estate market reports property demand is falling by 20percent in the Noida Extension area NCR (National Capital Region), and this is happening due to the court order according to which was acquired for residential development has to be returned to the original owners. According to the several developers in the aftermath of court order Noida Extension real estate market is severely affected and demand for housing reducing day to day. Allahbad High Court has passed the order following to which the entire land shall be return to the land owners.
Certainly court’s order is affecting to the Noida property market, however home buyers are nervous and also waiting to clarity in the entire matter. As per the several sector watchers yet there is no decline in property rates so far on the other hand housing finance rates are also the reason for slowing down the property market, and due to this housing demand has fallen by 20%.

Posted: 04 Aug 2011 04:43 AM PDT

Wednesday, August 3, 2011

Wildlife Travel Portal Plans To Raise $5 Mn PE Funding

Hyderabad-based (India) Limited, which runs wildlife travel portal, is planning to raise $5 Mn private equity funding.

It intends to use the funds for further development of its website, to add new revenue models, such as e-shop, and for acquisitions.

Transaction Reference: Business Standard

Founded in August 2010, Planetwildlife started commercial operation in January this year. It offers wildlife tours to various destinations across the world.

The portal also features information on species and destinations.

It currently has offices in India, Sweden, Australia and UK and plans to open more offices in other countries. In India, it plans to open branches in Mumbai, Delhi and Bangalore by 2013. 

Globally, the market size for the wildlife tourism is $22 billion, which is growing at 7% YoY, according to the 'Tourism Highlights – 2010 edition' published by UNWTO (World Tourism Organisation), an agency of the United Nations and a global forum for tourism policy related issues.

Transaction Reference: Business Standard
Topics        : Private Equity
Industries  : Technology
Category  : Planned

Home buyers setback as RBI hikes its rates by 50 basis point

Due to the Reserve Bank of India hike in reference rate by 50 basis points pushed back to the home loan takers and leaves worried too. RBI hike will severely affect to the several areas such as this force to Banks to recalculate their base rate and also affect to the borrower who have taken the home loan on floating interest rates. As the hike will made it costlier to the banks and bank will move on this burden to the customers.
After the increased rate by RBI from onwards borrowers will have to keep up their budget to meet the benchmark on account of EMI.
This new hikes applies for the home buyers those who have taken possession of property. And the situation goes worst for the buyers who have booked into projects under-process.
Now several builders depend on forthcoming bookings to fund their undergoing projects, the common anticipation will cause new bookings to decrease. The developer will find it difficult to carry on construction on projects where work was in full swing.

Posted: 02 Aug 2011 04:38 AM PDT