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What is the Difference between Term Loan and Working Capital Loan?

Cost control is vital for successful business operations. However, occasional financial crunches can disrupt capital flow and handicap business development. Faced with such capital shortfalls, companies can meet the cash crunch with specialised finance options.

Term loans and working capital loans are two of the most popular financial aids available to enterprises in India. To secure a favourable finance option, companies can choose a suitable loan term based on cash flow and liquidity needs, in addition to their financial health.

Here is a closer look at the primary difference between term loan and working capital loan.

Term loans

Also known as a business term loan, a term loan is typically a business loan with a repayment tenure between one to ten years. A popular finance choice amongst Indian enterprises, term loans are usually taken to fund capital expenses; including business expansion, acquisitions, new asset purchase, expensive machinery, and more.

Furthermore, a business term loanis a secured loan, which is available for diverse terms such as short-term, long-term, and medium-term.

Key features of the loan include:

  • Repayment tenures are usually longer
  • Higher loan amount
  • Interest rates are lower
  • Multiple EMIs
  • Collateral is mandatory
  • Loan disbursement takes time
  • Involves complex paperwork

Additional Read: Top Benefits of a Term Loan in India

Working capital loans

A working capital loan is typically a short-term loan with a repayment tenure anywhere between three months to fourteen months. This type of loan is mainly taken to meet the costs of running a business – be it routine operational expenses or insufficient working capital. Companies can take a working capital loanto pay staff salaries, monthly rent, and other day-to-day expenses.

Furthermore, since the criterion for the loan is timely repayment, businesses can secure working capital loans as many times as needed. Based on specific cash flow needs, companies can avail of an appropriate loan amount.

Key features of the loan include:

  • Repayment tenures are shorter
  • Smaller loan amount
  • Interest rates are higher
  • Limited EMIs
  • Collateral may or may not be mandatory
  • Loan disbursement is quicker
  • The loan process is simpler

Additional Read: Documents Required to Get a Working Capital Finance

Which finance option is better?

Both types of loans offer lucrative features and terms essential to keep the business operations optimal. Of the two finance options, business term loans are usually better choices for investment heavy ventures. But if the company only requires small amounts to meet the operational expense, working capital loans are ideal.

Moreover, timely repayment on term loans can improve the business credit significantly, since the loan amount is typically higher. But working capital loans do not offer such credit score improvements. In any case, the choice of finance will depend primarily on the nature of the capital need.

Are you thinking of buying a crucial asset? Let Tata Capital finance your next capital venture. Get a lucrative business loan customised to the unique needs of your business and enjoy favourable repayment tenures. Besides, our documentation process is quick and easy for faster loan disbursal. For further information, contact us today.

Is Supply Chain Financing Part of Growth Plan in India?

Growth is essential for the survival of any business in the long run. It fuels asset acquisition, enables easier funding for investments, and attracts new talent to your enterprise. Growth is also the primary force which drives performance and profit. Sustained business growth entails a sustained growth of the economy, and thereby of the entire country.

For the businesses to speed up their growth rate, a steady influx of capital is necessary. One of the ways to ensure a secure stream of working capital is to opt for supply chain financingSupply chain finance is a premiere financing tool which optimizes and accelerates cash flows by extending short-term finance to dealers and suppliers, which are integral components of the supply chain of large-scale companies.

Where is supply chain financing useful?

Let’s illustrate the use cases of supply chain financing with the help of an example. Let’s consider a distributor that is a part of a large-scale company’s supply chain. Now, buying the company’s product in bulk can provide the distributor with huge discounts on their purchase, which itself can govern the profit margins. But where to get the exorbitant amount of money to purchase in the first place. That’s where supply chain or working capital finance comes into the picture.

Alternatively, suppose the large-scale company changes its payment terms from 20 days to 60 days. In such cases, the change of terms can directly affect the distributor’s cash flow in the supply chain, since slower payments could render them incapable of making subsequent purchases. In such circumstances, the large company could opt for a reverse factoring plan, which is a subset of supply chain financing, to provide the distributors with enough capital to make frequent purchases.

To acquire capital from supply chain financing, the buyer needs to approve their supplier’s invoices by a lender.

Additional Read: Planning to avail a working capital loan? It just may be the best thing for your business

Advantages of supply chain financing

To provide funds to the supply chain, a considerable sum of cash is necessary, which is usually shelled out using loans. But loans require upfront collateral and may charge higher interests rate, constricting your cash flows even further. But such is not the case with supply chain financing. Here are some advantages of working capital financing.

  • Supply chain financing involves smaller sums, which can be repaid relatively quickly.
  • No need to put up collateral on the borrower’s end.
  • The cash lent can be spent however you want.

Supply chain financing in India

The availability of supply chain financing bores well for the MSME sector of India, which constitute a 45% share in total industrial production, and 40% of India’s total import and export. Small scale business firms have been active beneficiaries of supply chain finance in India. This has allowed tremendous growth for small scale businesses, as they can obtain easy credit within 2-3 days, which enables them to make more purchases, and which, in turn, accelerates growth.

Additional Read: Which type of companies are eligible to get a Working Capital Loan

Working capital loans have become relatively easy to come by, with many banks and NBFCs providing affordable loan products. We, at Tata Capital, strive to provide you with customized working capital loans to help you grow and improve your business. Apply for a loan today at Tata Capital and enjoy a world of benefits.

How to choose an equipment finance company in India?

Investing in new equipment and machinery is essential for every enterprise. Your requirements may differ based on your organization’s short-term and long-term needs, but upgrading machinery is a continuous effort to maintain productivity and efficiency. However, there might be times where you might need to upgrade machinery without sufficient upfront capital to invest. In such times, equipment financing can come to your rescue. 

Why should you go for equipment financing and leasing?

Depending on your individual company’s needs, you may choose a loan, finance lease, or operating lease as a solution. But before diving into how you can select the best equipment finance company for your needs, let’s have a look at why you should go for equipment financing 

  • If you need to upgrade your technology but need to preserve liquidity for other purposes, you can go for equipment financing solutions
  • If you need technical equipment for a short period that you may not need later, you can opt for equipment leasing options. 
  • If you are not sure what returns to expect from your investment, you can lease the machinery for a short tenure before deciding to make the purchase. 
  • If you do not have additional collaterals to offer to your existing bank, you can take an equipment loan wherein the equipment purchased would be considered the collateral. 
  • If you want to boost your working capital, you may avail refinance or top up on your existing loan. 

Equipment financing can boost your business and revenue growth as you would only need to make smaller instalments while the equipment would continue to generate higher revenue for you.

Additional Read: Top Trends in Construction Equipment Finance Market

Factors to Consider When Choosing an Equipment Financing Company

What should you look for in an equipment financing company?

1. Expertise

Providing an equipment finance solution needs a detailed understanding of machinery, business industry, equipment usage, and cash flow cycles. Some equipment is also imported and requires a combination of Loan/Lease, Letter of Credit (L/Cs), and Buyer’s credit to finance.

Choose your equipment financing partner carefully as these loans are not just transactional but also advisory as you may need the financier’s expert advice to recommend the best solution. 

2. Reliability 

Assets financed under equipment financing are critical for the very survival of your business. And you can customise such loans to suit the nature of your business and equipment type. You need to ensure that you take such advances from reliable lenders, who will be around for the entirety of the loan’s tenure. 

Since they are critical to your day-to-day operations, it is better to take such finances from reliable, trustworthy, and credible partners like Tata Capital.  As a part of the marquee Tata Group, we at Tata Capital, with over a decade of experience, are committed to doing right for our customers.

3. Convenience

Equipment finance loans are long-term in nature and require back and forth interactions and regular transactions with your financier. You must access such loans from partners that provide you with the latest technology and convenience to viewing your transactions, download statements, make timeline payments, and settle loans virtually. 

The pandemic has only reinforced the importance of digitization in the financial services space. At Tata Capital, we are committed to providing our customers with the best digital experience to seamlessly control their finances regardless of their location. 

4. One-Stop Financier 

Unlike standard term loans, equipment finance loans require a certain depth of industry understanding, machinery knowledge, and expertise to structure the right kind of offering. You would also require companies that offer you the width and depth of offerings to finance all equipment needed to run your business. 

Going for a company that has diversity in offerings and specialization in equipment financing is prudent. For instance, a construction company may also require computer hardware and office furniture for their daily operations. Choosing a company that can meet all of your needs under a single roof will save you many hassles in the future.

Additional Read: What Vital Role does Equipment Financing Play in Reviving Business in Post Pandemic Period?

5. Transparency 

It is essential to access any financing at the best terms possible. The best terms are the lowest interest rates and transparency in other charges, like processing fees, prepayment charges, penal rates, etc. 

Given that these loans are long-term loans, choose an equipment finance partner that offers competitive rates and is transparent about its future pricing approach to avoid unpleasant surprises later. At Tata Capital, we partner in our customer’s growth and ensure complete transparency and fairness in our communications and transactions.

6. Partnership 

OEMs play an indispensable role in providing the equipment and various maintenance solutions to business. All significant OEMs associate with strategic financing partners, including Tata Capital, to provide their customers with integrated solutions. Choosing such financing partners with OEM tie-ups is beneficial in managing the equipment better during its lifespan.

Amidst multiple equipment finance companies in the market today, finding the right fit for you might seem like a daunting task. Get in touch with our experts to guide you through this process.

Medical Equipment Leasing: Should You Lease or Buy for Your Practice?

As the world makes consistent strides in medical technology, your practice needs to keep up with developments. Working continually with outmoded equipment can hamper productivity and lead to mistakes that may affect your practice’s reputation. Since advancements in medical equipment and technology is in a continual state of flux, investing in new equipment every quarter is imprudent.

If you’re not comfortable with unreservedly purchasing new apparatus, medical equipment loans, and medical equipment leasing might help you ease the budget restrictions. Let’s weigh the positives and negatives of buying and leasing medical equipment to understand which option is best-suited to your needs.

Pros and cons of medical equipment leasing

Leasing is synonymous to a renting, albeit with a longer tenure. Equipment leasing involves making monthly payments to a financing company in exchange for utilizing medical equipment, for instance, an x-ray machine, or MRI. At the end of the lease period, you could return the equipment or buy it.

There are many benefits associated with medical equipment leasing, first and foremost of which is a low down payment cost, which essentially allows your practice to rent high-end equipment without the fear of emptying your funds. Moreover, equipment leasing brings with it the possibility of frequently upgrading medical equipment to their latest rendition, which enables you to keep pace with the technological developments.

However, equipment leasing can set you back for more in the long term, even though the initial payment is low. Also, the leased equipment doesn’t increase the value of your practice, as it’s owned by the financing company, not you.

Additional Read: Equiment Financing VS Equipment Leasing – Which One is More Suitable for Your Business?

Pros and cons of buying medical equipment

Buying equipment usually involves paying the entire cost of medical equipment or opting for a medical equipment loan. Such equipment loans are usually self-secured, meaning you won’t have to put up any collateral from your personal or business assets.

Most importantly, buying medical equipment can significantly reduce long-term costs, since the equipment loans come with an end date. Also, the medical equipment is yours to sell, as you’re its rightful owner. Buying medical equipment also allows you to make repairs and modifications as you see fit, as a third party company doesn’t own it.

But there are certain drawbacks attached to buying equipment. For starters, the upfront cost is higher when compared to leasing, making a sizable dent in your capital. Also, buying equipment doesn’t allow frequent upgrades, since selling the equipment at the end of the loan is a cumbersome process.

Additional Read: What Vital Role does Equipment Financing Play in Reviving Business in Post Pandemic Period?

Leasing vs buying: the final verdict

Choosing between equipment financing methods boils down to your needs. If your practice requires frequent equipment upgrades, medical equipment leasing might make more sense. On the other hand, if your practice knows its long-term requirements, buying might be a better investment decision.

Thankfully, equipment finance has become much accessible. For, speedy and competitive equipment loans, get in touch with Tata Capital today and enjoy highly customized loans and flexible tenures.

How much Working Capital does a Small Business Need?

All businesses need cash to grow and thrive. Working capital for small business is one of the fundamental requirements for sustaining and succeeding in the long run. 

Working capital is nothing but the amount of money required for the day to day operations of the company. You can calculate how much working capital your business has by subtracting the current liabilities from the current assets. You can group anything that converts into cash within a year under current assets and classify anything due within a year as current liabilities. 

While we all know that shortage of working capital is bad for business, excess working capital is also not recommended as companies end up sitting on idle cash that can generate better returns elsewhere. Due to this caveat, businesses often struggle between balancing too little and too much cash when it comes to working capital.

Additional Read: Planning to avail a working capital loan? It just may be the best thing for your business

The question then arises, how much working capital does your business require?

How much working capital you need to run your business depends on the business type, the operating cycle, and the business’s future aspirations. 

Here are a few factors to consider while assessing Working capital for small business

1. Business cycle:

Is there a time difference between the revenues coming in and the expenses that must be met? The larger the time difference, the more would be the requirement for working capital. 

Working Capital Cycle

For example, let us assume the company pays for inventory 30 days after receiving it. It sells the product 15 days later, and the receivables from the customer come in a month later. The working capital gap then is 45 days. The company needs to estimate the expenses required to meet in this period (salaries, rent, office expenses, marketing expenses, and utilities.) It must also account for a certain percentage of unplanned expenditure. These funds need to be made available as working capital. 

2. Business model:

Does the business require higher working capital finance due to its heavy inventory nature or requires higher processing time to convert to finished goods? If the company is inventory heavy and needs longer processing times, it would need higher working capital. In contrast, a service-oriented business that requires little or no inventory needs working capital only to the extent of expenses it costs to run the company’s operations. 

Apart from the business model, if your offerings are impacted by seasonality, your working capital requirements might fluctuate during peak periods and off-seasons. For instance, an air conditioning business might require higher inventory before summers but not otherwise. If seasonality affects your business, your working capital needs fluctuate during the year, and it might be advisable to arrange for a working capital loan to fund peak seasons. 

3. Growth plans and stage:

Working capital for small businesses could differ depending on the maturity of the company. Companies just starting up or those in their growth or expansion periods require higher funds than mature, stable companies with defined income streams. Business owners could analyze the business stage and the plans for growth and development and assess their current working capital positions. Gaps, if any, at this stage of assessment could be plugged with flexible working capital financing solutions from companies like Tata Capital that partner in its customers’ growth. 

4. Additional factors:

Sometimes, unprecedented events such as the global pandemic, to quote a recent example, could lead to further demands. These demands could be to survive periods of insufficient revenue or additional funds to meet investment in safety equipment or for expansion opportunities that changing times present. 

Since it is not always possible to assess how much working capital you need to tide through such times, small businesses must account for these unplanned requirements through an additional line of credit. Working capital financing can ensure you do not miss out on these growth opportunities. 

Managing working capital financing

Optimal working capital is essential for the business to grow and run smoothly. Suppose you continuously face a shortage of working capital or keep excessive cash buffers to meet unplanned operational expenses. It may be time to have a thorough look at your cash flows and access working capital financing to plug the deficits and invest surplus cash at higher returns. 

Additional Read: How Can Tata capital working capital loan Help you manage your business expenses?

Working capital loan

A working capital loan provides businesses with a line of credit to access as and when needed to navigate a cash crunch. This access to capital allows businesses to operate continuously without interruptions in the short run. In the long run, optimizing working capital can help small enterprises stabilize financially, grow, and expand to their fullest potential. 

The needs of every business are unique, and the working capital requirements vary across multiple business contexts. Reach out to your financial expert at Tata Capital to recommend the best working capital financing solution for your business. 

Five ways working capital can work for your business

Whether you want to expand your existing business or begin a brand-new venture, you would need working capital financing for sure. Working Capital has been the go-to indicator to measure a company’s financial health and well-being since time immemorial.  

Working capital for business = Current assets – Current liabilities

Here, current assets include liquid assets like cash and accounts receivables. And current liabilities include debts and obligations due in a year.

Conventionally, financially sound companies demonstrate current assets greater than current liabilities. Adequate working capital helps companies balance liquidity and profitability while aiming for continuous and consistent growth.

There are multiple ways to unlock working capital, including inventory management, optimizing supplier payments, accelerating customer collections, and working capital financing. Effectively managing working capital is crucial for businesses to run day-to-day operations smoothly, survive, and scale in the long run. 

Additional Read: Planning to avail a working capital loan? It just may be the best thing for your business

Here are five ways working capital can work for your business:

1. Improving cash flow

Business comes with its share of highs and lows for both start-ups and established enterprises. However, for businesses to thrive in either environment optimising working capital is a must. Maintaining a steady stream of liquidity ensures enterprises are sustainable and meet basic needs such as hold necessary inventory, pay salaries, rent, utilities, and mortgage payments on time. It also allows for surplus cash to be reinvested in scaling up the business. 

Working capital financing facilitates entrepreneurs with perpetual access to capital and helps optimize cash flows while investing in the company’s growth. 

2. Capitalising seasonal swings

Several businesses are cyclical wherein the business doubles or triples in certain months like festive periods or summers. While businesses are keen on capitalising these seasonal upswings, they are always worried about the severe working capital crunch, holding them back from taking up larger orders. 

Working capital financing can help bridge this gap and equip businesses to leverage the increase in demand without adding stress to financials. Tata Capital offers peak limit activation for its working capital borrowers to accommodate seasonal fluctuations in the business without any additional documentation.  

3. Improving creditworthiness

Financiers and prospective customers look at robust working capital balance as one of the critical indicators of financial health or creditworthiness in any company. Maintaining good creditworthiness can also open up access to higher amounts of business financing and better interest rates. If used prudently, working capital financing can reflect how well an organization manages its operations. 

4. Navigating Crisis

Every business comes with its risk, and no better time than the pandemic to reinstate how uncertain and susceptible companies are to economic fluctuations. Working capital financing can help navigate an unprecedented crisis by providing enough cushion to manage essential expenditures to keep the business afloat. If you are currently facing a financial crunch with the pandemic, don’t hesitate to reach out to Tata Capital for additional support. 

Additional Read: Know more about Tata capital working capital loan for managing business expenses

Factors Affecting Working Capital

5. Facilitate Growth 

One of the biggest challenges small businesses face is the lack of access to working capital at competitive rates to facilitate their growth. Access to working capital enables scaling up the business to its true potential while providing room for a margin of error. Companies with additional working capital have the freedom to take on larger orders from their customers without impacting their current fulfilling capabilities. It also ensures accurate financial forecasting that helps entrepreneurs make well-informed choices and accelerate growth.  

Maintaining a healthy reserve of working capital will help you run day-to-day operations smoothly. Additionally, access to sufficient working capital also provides avenues to grow and scale business to its fullest potential. Have more questions on how working capital can work for your business? Visit our website to know more.

Commercial Finance from NBFCs: A Guide

From infrastructure development, employment generation to wealth creation and capital formation, Non-Banking Finance Companies (NBFC) play a formidable role in the financial sector of India. Often the standard-bearer for commercial finance, NBFCs provide financial assistance to various Micro, Small, and Medium Enterprises (MSMEs) at highly convenient terms.

Different enterprises can access a wide variety of commercial finance to maximise cash flow and maintain operational expenditure. These include:

  • Business term loans
  • MSME loans
  • SME loans
  • Machinery loans
  • Working capital loans
  • Overdraft loans

Moreover, commercial finance in India is available to self-employed professionals, private limited companies, sole proprietorship firms, public limited companies, and partnership firms.

Additional Read: Top Benefits of a Term Loan in India

Here is a comprehensive overview of commercial finance from NBFCs:

Application process

There are five primary steps to obtain a commercial loan from NBFCs:

Step 1: Choose a suitable NBFC and apply for a business loan online or offline.

Step 2: Once you receive your eligibility criteria, furnish the requested documents.

Step 3: Next, the NBFC will verify your loan application and furnished documents, usually involving a personal interview.

Step 4: Once the required documents are verified, NBFC approves the loan and starts the loan sanction process.

Step 5: Finally, the NBFC disburses the required loan amount in the bank account of the borrower.

In addition to the application form, borrowers may need to submit a loan processing fee. Also, the applicant may have to pay variable charges, including stamp duty, pre-payment charges, amortisation fee, cheque swapping fee, and more.

Additional Read: Planning to avail a working capital loan? It just may be the best thing for your Business

Eligibility criteria

Eligibility criteria are usually different for different NBFCs. Nonetheless, specific requirements remain the same across NBFCs, such as:

  • Applicant should meet the minimum annual income requirement as a company
  • Company in need of the loan should be business for a considerable amount of time
  • Applicant should be able to meet the age criterion, usually between 21-65 years
  • The business should have an upward turnover trend
  • The company should show only incur profit for the last three consecutive FY
  • The business should be able to deliver a balance sheet audited by a registered CA

Besides, companies should prepare the required documents well in advance and improve the chances of loan approval. An NBFC usually demands the following documents:

  • Filled loan application form
  • GST returns
  • Income Tax Returns
  • All the KYC documents of the company
  • KYC documents of the business owner/owners
  • Company bank statements
  • Balance sheet
  • Board resolution
  • Business continuation proof (Trade license, ITRs)

Once the requested documents are verified, and the loan application is approved, NBFCs start the loan sanction process. Besides, loan disbursement is quicker in case of unsecured commercial loans as compared to secured ones.

At Tata Capital, you can secure tailor-made finance solutions to offset expenses when the profit is slow. Get quick and easy business loans at competitive terms, custom-built to meet your unique business requirements. Enjoy flexible repayment terms and structured EMIs for a convenient, hassle-free loan tenure.

Get in touch for further details.

All You Need to Know About IPO Financing

An Initial Public Offering or IPO offers privately-held companies a leeway to sell shares to the public and raise funds. The company loses its private status after selling the first share and becomes a listed company whose shares are up for a trade on a stock exchange.

Any company, whether new or old, can become public by issuing an IPO. The company can add new shares on the market after selling the old shares to raise fresh capital. The shares are mainly exchanged in an open market and accessible to the general public, who can sell them further to make a profit in a short time. As a result, IPOs offer highly lucrative opportunities for investors in India.

However, in cases of oversubscription – when the company has more buyers than issued shares – share allotment is typically in favour of buyers with more shares. For better ROIs, investors require additional funds. In such cases, IPO financing or funding can help maximise profit from IPOs.

Additional Read: Financial mistakes to avoid in panic situations

Primarily reserved for HNIs and institutional investors, IPO financing has acquired traction in recent years as the IPO market witnessed a steady boom. IPO financing allows investors to harness a considerable amount to invest in the primary market for enhanced share allotment and earn substantial returns in a short time.

Here is all you need to know about IPO financing:

How does IPO financing work?

IPO financing is a type of short-term commercial loan borrowed to buy shares in a primary stock market, mainly by HNIs. Initially, the investor needs to pay a small margin upfront to avail the loan amount, which is usually estimated on a case-to-case basis; while the lender covers the rest of the funds for IPOs.

Moreover, the loan tenure will depend on the market trends and the nature of the purchased shares. The loan tenures for IPO financing typically last from seven days to three months. Interest rates on the loans usually differ from lender to lender, but the customarily charged rates remain between 8 to 12%.

Most importantly, the upfront margin and loan amount remain locked in the bank account. In case the investors earn a profit from the shares, they need to apply to the lender for funds procurement. But in case of losses, lenders recover the money from the margin paid.

Additional Read: Safe investments to ride out market volatility

Investors who fund IPOs enjoy a host of benefits, including:

  • Gain faster profits, usually in 6-10 days.
  • Investors can buy more than one share for improved share allotment.
  • The lender primarily handles the end-to-end process.
  • The investor only pays a portion of the IPO marginal funds, the lender supplies rest.
  • Even securities or cash is applicable for marginal funding in IPO.

As a mean for wealth creation, IPO financing is undoubtedly a convenient yet lucrative choice. You can obtain quick and competitive commercial loans to meet your financial needs. We offer favourable loan terms and a hassle-free documentation process to help you procure necessary funds in no time. Benefit from our bespoke financial solutions today!

This Diwali Give Your Home a Festive Makeover

With Diwali just around the corner, the festive mood is setting in. Most people have started shopping for clothes and gifts due to several festive offers online. But what about your house? Are you just going to make do with some cleaning and old decorations? Or, do you want to give your home an awe-inspiring festive makeover?

How? By playing around with elements of home furnishing and decoration. While it may seem like a tedious task, it will do wonders for your interiors. And, believe it or not, there are many simple ways to make your house ready for the year-end celebrations and set the mood for the festivities.

Home Makeover Ideas for Diwali

Before going ahead with home décor or renovations, make sure your primary finances are in order. If not, it is ideal to get a home extension loan as money should not thwart your plans this Diwali.

Got your finances in order already? If so, then check out our list of top home improvement ideas this festive season.

Don’t shy away from colour

While white walls are elegant and sophisticated, they tend to look dull after a few years. Therefore, add a little colour to your walls to spice-up your digs. Consider painting them in a contrasting colour like aqua or bright yellow and watch the space transform.

Consider getting new curtains

A new set of curtains add vibrancy and are a cheaper alternative to wall painting for your home makeover. Pick soothing and budget-friendly curtains to change the vibe of the interiors. There are numerous prints and shades you can choose from. Go for pastel shades if you are looking to off-set that vibrantly coloured wall in say, your living room or bedroom.

Pay attention to details

You don’t always need to throw a tonne of money on home makeovers. Doing inexpensive things like changing your cushion covers or adding a few vintage decorative pieces will go a long way when it comes to festive decorations. Choose an old school lamp and painting for your living room or add a handcrafted ceramic pot and you’re good to go. These small items can significantly add to the visual appeal of your home. You can also order these home décor pieces online as there are festive offers on all shopping sites.

Play with Lighting

The best way to give your home a festive makeover is to add fancy lights to the interiors as well as exteriors of your house. Tea lights and fairy lights are perfect for bedrooms while you can opt for lanterns and lamps for balconies. You can save a lot of energy by switching to LED lights. So, let there be an abundance of light inside your abode and celebrate the true spirit of the festival of lights!

Additional Read: Planning to Buy New House this Festive Season? Top things you must know

Need Some Help with Your Home Makeover?

Tata Capital offers a home extension loan at attractive interest rates to assist you in expanding and renovating your house into your dream abode.

Do you live on rent and don’t feel like giving that space a makeover? How about hitting a milestone this Diwali and buying a brand-new house altogether? We understand if you don’t have enough finances for the same. Don’t fret! Buy a place you can call home with the help of Tata Capital home loans.

Additional Read: Why is Diwali the Best time to buy a property

So, what are you waiting for? Reach out to us and learn all about our housing finance options today!

What Is the Expected Impact of Festive Season on Consumer Durable Loans?

India is the land of festivals, which we celebrate with the utmost value and joy. With the ultimate festive season making its way through our lives yet again, our happiness knows no bounds. Starting from Dussehra, a long procession of occasions and festivals follow to extend this joyous journey that ends after Diwali.

To keep up with the festive spirits, we do not shy away from signing a few big cheques to mark the occasion with gifts. From buying jewellery to mark the auspicious occasions, to upgrading the utility items in our households, we look forward to the festive season sale every year.

Additional Read: Check Out The Best Products to Buy and Shop Wisely This Festive Season

The Annual Rise in Purchase of Consumer Goods

Did you know that the festive season records a total of 25% of the annual sales as the consumers make their biggest purchases of the year? Last year, a total of 9-12% hike was observed by the retail chains and consumer brands in India during the festive season. This expenditure in festive season impacts on loans as well.

Also, with the lockdown commencing at the beginning of 2020, people have started to appreciate the productivity and efficiency of various products, including smart home appliances. The year has demanded people to work-from-home without any domestic help. Therefore, a set of big purchase on appliances like washing machine, vacuum cleaners, laptops, air purifiers and other cooking appliances are highly expected this festive season.

Additional Read: Improve Your Lifestyle Experience With New Home Appliances this Festive Season

Shopping During the Festive Season

Shopping during the festive season has been a tradition that never fails to benefit customers. Buying gifts for your family and friends and upgrading home appliances and gadgets are some of the essential parts of celebratory shopping. Why? Because of incredible festive season discounts of course.

Additionally, industries are witnessing encouraging signs of revival, especially, the consumer goods sector. The earlier part of the year saw a significant dip in the high-end premium purchases, but customers are buying away given the excellent deals by multiple e-commerce websites during Diwali.

Furthermore, lending institutions are aiding consumers to leverage consumer durable loan schemes that help them enjoy the festive season without a cash crunch. With extremely flexible consumer durable loan EMI solutions and affordable interest rates, customers can quickly avail consumer durable loans to ensure a smooth spend this festive season.

Overall Impact of Festivals on Loans

With all the unprecedented events that occurred this year, many of us want to make the most out of the festive season. Also, being in the constant comfort of our homes encourages us to upgrade its ambience to suit a better sense of comfort, which requires a few big-ticket purchases.

The Bottom Line

With a wide range of consumer durable loans available by top lending institutions like Tata Capital, consumers have an ocean of smart opportunities to avail financial assistance. We offer quick online and offline finance options with minimal paperwork and attractive interest rates.

So, what are you waiting for? Apply for finance at Tata Capital and make the most of this festive season.