Finance

There has been a sudden spike in the demand for gold loans in the country, especially in cities like Hyderabad, Bengaluru, Chennai, Pune, Delhi, Rajkot and Surat. In the year 2009, the gold finance industry’s turnover was Rs 200 crores and now it has reached Rs 20,000 crore. More so the demand has increased in past 6-8 months due to the ongoing pandemic, people who are facing cashflow problems are looking to leverage their gold to meet these issues. The other reason which has resulted in a sudden spike is the increase in the price of gold. The price of the gold was historic high in the pandemic times, the price reached Rs 53,250 per 10 gram in the month of July. Interestingly, 40% of the gold loan market is dominated by the non-banking financial company like Muthoot Finance, Manappuram Finance and Muthoot Fincorp. As per the report from Motilal Oswal, gold financiers have created such a boom because of easy accessibility, flexible tenure and faster turnaround time. However, gold financier charges a higher rate of interest but the other benefits overpower over the interest rate charges. To make things easy for people during the pandemic time, RBI also increased the loan-to-value (LTV) for gold loans given by banks from 70-80% to 90%.

The flexibility of gold loan

Gold loan is flexible in nature, a borrower can pick a tenure according to their need, whenever they feel comfortable that they can repay the loan. Gold loan is considered as a short term loan because the tenure starts from a few weeks to 5 years. The repayment schemes which is offered by banks in the gold loan is different from the other types of loan. Generally, gold loan offers three types of loan repayment option like, a borrower can pay the regular EMIs, a borrower can only pay the interest during loan tenure and pay the principal amount at the end of the tenure and pay interest and principal amount at the end of the tenure. 

Gold is safe

When a borrower opts for gold loan, he/she has to keep their gold ornament as collateral, however, they don’t need to worry about their ornament as it is kept safe in bank lockers or the lockers of NBFCs. A borrower does not need to pay any charges for keeping their jewellery in the lockers. Most of the banks also offer insurance coverage up to a certain amount on the gold loan schemes.

No paperwork is required

When a borrower is in need of money urgently, there might be a possibility that he/she cannot arrange the papers on time, like bank statements, ITR documents may take up to 1-2 days as they are procured from the banks. However, when applying for gold loans a borrower only needs to submit their identity proof, address proof and KYC documents, no bank asks for income proofs. 

Faster processing

The disbursal time in the gold loan is quicker when compared to other types of loans. The loan is the procedure of gold loan is hassle-free, lenders do not check credit score and require minimal documents which makes the procedure faster. The loan amount is disbursed in the account of a borrower within a few hours. 

Bottom line: During a pandemic, the gold loan market saw a growth of 15-18% in the fiscal, growth was flat at the beginning of the year but to meet the financial requirement more and more people had to leverage their gold ornaments. A gold loan can be taken for any purpose like meet the wedding expenses, medical emergency, education and many more reasons. Due to coronavirus many people faced loss in their business, many lost their jobs, others were getting salary cuts and people also had a medical emergency because of this reason many people took the gold loans because the borrower does not need to have a good credit score, do not need any major paperwork and the amount is disbursed within no time. 

Binary options trading is something that many advanced traders are trying out these days. It provides traders easy access to the foreign exchange and commodities market.

Now, it’s also not without flaws. If a trader isn’t careful enough, he or she can experience huge losses that can put a dent on his investment goals. Here are some of its pros and cons.

Pros

Simple

Right off the bat, traders can see that binary options trading require them to follow only a few basic steps.

The first one is to find a broker and find someone who can assist you in trading. Come up with an analysis of the price movement and make a trade.

After you have set up the trade, the only thing you need to do is monitor and track it.

You can bet small

You don’t necessarily have to bet huge amounts at the beginning. You can bet small amounts of trade and take your time to get comfortable.

And if you still like doing the small bets, you may stick to it. As long as the returns are sufficient to keep you trading, you can continue betting small.

Minimal Risks

The risks are minimal because you’re only betting small. You are the one to decide how much you want to risk, and therefore you have control of the risks you take.

In other words, you know how to make your trade go in your favor.

High and Fast Returns

The amount per trade of binary options is efficient and only varies a small amount from the standard trading.

If you can do it properly, you can expect to get as much as 90% returns in 15 minutes.

Market Conditions

Depending on the strategies you use, the changes in the market conditions can be in your favor. As long as you are aware of the possible changes and market moves, you can put your trade in a position where it could benefit you either way.

Cons

Scamming Risks

This risk is ever-present. Binary option trading in many countries is prone to fraudulent platforms. You can find reports where traders who made a good fortune were not paid by the broker.

Always do your due diligence and check whether the broker is trustworthy. Check its track record and find reviews of it online.

No Demo Accounts

When your trading binary options, you don’t get the chance to use a demo account. And because you can’t use a demo account, you don’t get to get a feel of how the actual process works.  You don’t get to check how the platform works and how you can use it to minimize the risk of losing money.

Market Regulation

Perhaps the biggest hiccup in this otherwise lucrative trading vehicle is that there are very few regulated binary options brokers.

There is no directing authority to control and monitor the system. Governments and other authorities cannot track your money invested and profits. And that’s not good, since many traders prefer markets and brokers that are regulated.

Most Americans must file state and local tax returns by April 15th every year. Some returns are fairly simple to file, but many people need assistance to complete their returns correctly. 

Hire a Professional

If your return is complex or you want to ensure that you maximize your refund or minimize the amount of tax you owe, you may want to have a professional assist you with preparing your return. Accountants, professional tax law services Sarasota, money managers and other finance professionals can provide you with tax advice or complete your return for you. However, you will still need to provide them with documentation to support the income and deductions on your return, so make sure you collect and organize your receipts and other documentation throughout the year. 

Use Tax Software

Tax software can guide you through the process of completing your return. Because the tax rules are programmed into the software, you can complete your return by answering a series of questions, rather than having to look up all the rules and figure out how to fill out the forms. However, if you make a mistake inputting your information into the program, you could end up with errors on your return. 

Get Free Assistance

If your income is below a certain threshold, you are elderly, disabled or a veteran, you may be eligible to receive free tax assistance. The Volunteer Income Tax Assitance program provides free tax assistance to people who make less than $56,000, have disabilities or have language barriers. The Tax Counseling for the Elderly program helps people with questions about pensions and retirement. Additionally, the MilTax program provides free tax preparation to veterans and their families.

To avoid potential penalties or missing out on the refund you are entitled to, it is important to correctly file your taxes. For many taxpayers, it is wise to seek assistance with tax preparation. 

Finances, whether they are personal or professional, are often complicated. As a business owner, subtracting expenses from revenue is only the tip of the iceberg when it comes to financial management. Fortunately, there are professionals who can help you understand your finances and manage them with you. Before connecting with a professional, it is helpful to understand what this process looks like and to learn about some of the questions that your financial planner may ask you.

1. Painting a Clear Picture of Your Finances Today

Beginning the financial planning process Hoover AL without first understanding your current financial standing is like starting a puzzle without all the pieces. Your financial planner will first want to get a detailed picture of what your finances look like. This includes your assets, liabilities, income, expenses and any other pieces that make up your financial puzzle.

2. Determining and Setting Your Goals

The purpose of financial planning is to use the power of finances to create the future you want for your business or family. It is important to think about what matters to you and to share your vision of your future with your financial planner.

3. Creating a Plan

Your financial planner will help you create a financial plan in a systematic and comprehensive manner. One of the greatest benefits of working with a financial planner is having access to all your options without feeling overwhelmed.

4. Sticking to the Plan

Just like your financial plan, your relationship with your financial planner is long-term. He or she is there to both ensure you stick to your plan and to help you modify it if your personal or professional circumstances change. Frequent and open communication leads to a flexible plan that changes and grows with you, allowing you to stay financially prepared for various situations.

There are professionals who can help you unpack your finances and help you create a positive relationship with money that aligns with who you are and what you wish to achieve in life. The first step — which you now have accomplished — is to get an idea of what financial planning looks like and how you can get started.