Category: Personal Finance

What Is Loan-to-Value (LTV) Ratio in Margin Trading?

Have you ever wondered how much borrowing is safe if you trade by pledging your holdings? This question becomes the most important in margin trading. In this trading, investors borrow money from the broker by pledging their stocks and take bigger positions with the same money. But how much should this borrowing be? This is where the Loan-to-Value (LTV) Ratio comes in which determines how much you can borrow against your pledged assets. In this blog, we will understand in detail what the loan to value ratio is, how it works, and why it is very important for a trader to understand it.

What is the Loan-to-Value (LTV) Ratio

Loan-to-Value Ratio, or LTV for short, is a financial indicator that shows how much of your loan you have taken compared to the total value of a property. This ratio measures how much of your loan amount is the value of your pledged assets (such as a house, stocks or bonds). It is usually expressed as a percentage (%).

LTV is most commonly used in home loans, gold loans, and especially in investment options like margin trading. When you take a loan from a broker by pledging your securities (such as shares), the LTV ratio determines the extent of the loan you will get.

For example, if you pledged shares worth ₹1,00,000 and got a loan of ₹70,000 on it, then your LTV ratio will be 70%. That is, you have borrowed up to 70% of the total value of your property.

What is the formula for LTV?

Loan to Value Ratio Formula:

LTV Ratio = (Amount borrowed ÷ Current value of security pledged) × 100

Example : Suppose you have pledged shares worth ₹1,00,000 and you are given a margin loan of ₹70,000 by the broker Then

LTV = (70,000 ÷ 1,00,000) × 100 = 70%

What is the role of LTV in margin trading?

LTV i.e. Loan-to-Value Ratio plays a very important role in margin trading. When a trader pledges shares or mutual fund units in his demat account with a broker, the broker lends him a certain amount based on the value of these assets; this is called margin loan.

But the question is how much money will be received against the value of that collateral? The answer to this is LTV.

How does the broker decide LTV?

The percentage of LTV depends on which securities you are pledging and how stable and reliable their market value is.

If you have pledged stocks of blue-chip companies (like TCS, Infosys, HDFC Bank), then these companies are considered less volatile. In such a situation, the broker can give you LTV ranging from 70% to 80%.
On the other hand, if you pledge penny stocks, mid-cap or stocks of more volatile companies, then the LTV reduces to 50% to 60%, because the risk of decline is higher in such stocks.

SEBI rules and effect of haircut : According to SEBI, every broker is required to apply a haircut on pledged securities. This haircut is a safety cut in the value of the asset which reduces the risk of the broker in case of a sudden market crash or decline.

For example : If you have pledged shares worth ₹1,00,000 and SEBI has fixed a 20% haircut on it, then the broker will consider the effective value of that collateral as ₹80,000. Now if LTV of 75% is applied on it, then you will get a usable margin of about ₹60,000.

Why is Loan-to-Value Ratio so important in trading?

Loan-to-Value Ratio (LTV) is one of the most important metrics in margin trading, as it directly reflects the safety of your position and your creditworthiness to the broker. A high LTV indicates that you have taken a lot more loan than the value of your assets, which means more risk.

1. Increasing LTV poses a risk of margin call

In margin trading, when the value of your portfolio decreases and it affects the LTV, the broker can trigger a margin call on your account. This means that you will have to immediately deposit additional margin to support your position or reduce the loan by selling parts. If you do not respond in time, the broker can automatically sell your holdings, thereby ensuring a loss.

2. It also affects interest rates

LTV is not only an indicator of risk, but it also affects the interest rate at which you will get a loan from the broker. A lower LTV usually results in a lower interest rate. But as the LTV increases, the broker’s risk also increases and the interest rate can be higher accordingly. This is why trading on a higher LTV can prove to be expensive.

3. Higher LTV means more leverage and more risk

When you pledge your stocks and trade with a loan from the broker, you are using leverage. LTV indicates the level of that leverage. For example, if your LTV is 75%, it means you have traded with only 25% of your capital and the remaining 75% is borrowed. This strategy can certainly increase profits, but the losses can also be huge if there is a slight fall in the market.

4. Understanding LTV is essential for successful trading

Often new investors focus only on how much credit they can get from the broker, and end up using the entire limit. But experienced and professional traders know that it is not only wise to reach the LTV limit, but it is also important to keep that ratio stable and safe. A controlled and prudent LTV is the key to success and longevity in trading.

Factors That Influence LTV in Margin Accounts

There are many important factors behind deciding LTV (Loan-to-Value) in Margin Trading. All these factors together decide how much margin an investor will get on pledged shares.

Volatility of the stock : If a stock is more volatile, that is, its prices fluctuate rapidly, then the LTV available on it may be less. Brokers do not want to take much risk in this situation.
SEBI Classification (Group 1 vs Group 2) : SEBI has divided the shares into Group 1 and Group 2. The shares coming in Group 1 (such as blue-chip stocks) are considered more secure and there is a possibility of getting higher LTV (60–75%) on them. On the other hand, more haircuts are given on the shares included in Group 2.
Liquidity of the stock : Highly liquid stocks, that is, those which can be bought and sold easily, get better LTV. The broker usually gives less LTV on pledging shares with low liquidity.
Market conditions and broker’s risk policy : If there is a sharp decline or uncertainty in the market, the broker may reduce the LTV as per its internal risk norms. Sometimes brokers apply stricter margins as per their risk appetite.
Regulatory Updates and Circuit Breakers : If SEBI implements new rules or circuit breakers are imposed on a stock, then the LTV may also change. The broker can immediately increase the haircut or remove the MTF eligibility.

Read Also: What is Margin Money?

Common Mistakes Investors Make Around LTV

Using excessive leverage : Many investors use all the funds they can get through LTV without thinking that the market may crash. High leverage can turn a small loss into a big one.
Ignoring margin calls : If the value of pledged shares falls, the broker sends a margin call. Ignoring this can lead to your account being frozen or shares being confiscated.
Pledging high-risk stocks : Stocks that have a lot of volatility (such as penny or speculative stocks) have higher haircuts and lower margins. This can lead to frequent margin shortfalls.
Underestimating interest cost : Funds received through LTV attract interest. If this cost is not understood, the profit that is shown may actually turn out to be a loss.
Not having a Risk Management Plan : While doing margin trading, it is important to have a proper stop-loss, diversification and capital allocation strategy. Trades done without planning can be harmful.

How to Manage and Control Your LTV Ratio

Monitor the portfolio regularly : Keep a constant eye on your pledged shares and their market value. If the price of any stock falls, it will directly affect your LTV. Check portfolio health at least once a week.
Diversification is important : Pledging only one type of stock or one sector can increase the risk. Pledging shares of different sectors and fundamentally strong companies reduces the haircut and keeps the LTV stable.
Keep an emergency margin buffer : Never use your entire eligible margin. Keep a buffer of at least 10–15% so that you do not have to face margin shortfall in a sudden market fall.
Use calculators and tools : Nowadays many platforms provide advanced LTV calculators and portfolio analytics tools. These tools can tell you in real-time what your current LTV is and how much margin is left.
Use alerts and automation : Most brokers now offer tools that send you alerts via SMS or app notifications when your LTV is approaching the limit. Also, some platforms have an auto-margin top-up facility so that the system automatically maintains the buffer.

Read Also: What is Pledging of Shares?

Conclusion

If you do margin trading, understanding the Loan-to-Value (LTV) ratio is as important as trading. This ratio determines how much funds you can borrow against your pledged securities and how far your risk is spread. If you trade without understanding it, you may face a margin call or forced sell-off in a sudden market fall. Therefore, a smart trader is one who keeps the LTV in balance, tracks it from time to time and takes action when needed. After all, proper planning and control are the companions of good trading.

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5	What is Operating Profit Margin?
6	Top 10 Highest Leverage Brokers in India – Maximize Profits with Margin Trading
7	What is Margin Funding?
8	What is Pay Later (MTF) & Steps to Avail Pay Later?
9	Top Tips for Successful Margin Trading in India
10	Value Investing Vs Intraday Trading: Which Is More Profitable?

Frequently Asked Questions (FAQs)

What is the full form of LTV in margin trading?
LTV means “Loan-to-Value”, which tells how much loan or margin you can take against the value of pledged shares.
What happens if my LTV ratio increases too much?
If the LTV becomes high, the broker may send a margin call or sell your shares.
Is a lower LTV always better?
Yes, lower LTV is safer as it carries less risk if the market falls.
How can I reduce my LTV ratio?
You can reduce your LTV by adding cash or more shares, or by closing some positions.
Does every broker offer the same LTV limit?
No, different brokers follow different haircuts and LTV limits, depending on the category of stock.

November 10, 2025

Top 20 Basic Stock Market Terminology for Beginners

Whenever your friends were discussing the stock market using various jargon such as IPO, Bid Price, etc., now you don’t need to feel left out.

In today’s blog post, we will explain to you the top 20 basic stock market terminologies which can help you get started on your investment journey with confidence.,

Basic Stock Market Terminology

The following are 20 fundamental stock market terms every beginner should know before starting to trade.

A stock or share represents ownership in a company’s equity. The value of shares purchased by you became the part-owner of that company. Companies issue shares to raise capital and grow their business, and by owning them, you become a part of their future growth.

2. Bid and Ask Price

Bid and ask are the two most important prices that an investor must know. The bid price refers to the highest price which an investor is willing to pay to purchase a stock. Whereas the ask price which a seller is willing to sell the stock. And the difference between bid-ask prices is known as the spread.

3. Broker

The broker is an entity which acts as a middleman between you and the exchange and provides you with a platform to execute trades on the stock exchange. For their services, they charge a brokerage fee from you.Whenever your friends were discussing the stock market using various jargon such as IPO, Bid Price, etc., now you don’t need to feel left out.

In today’s blog post, we will explain to you the top 20 basic stock market terminologies which can help you get started on your investment journey with confidence.

4. Trading Volume

The trading volume refers to the total number of shares traded or bought, or sold during a particular time period. It acts as a key indicator for traders in identifying the trend of a stock. An increasing stock price, along with the higher trading volume, indicates a bullish momentum, and vice versa.

5. Liquidity

It refers to the availability of buyers and sellers at the time of executing traders. Higher liquidity in any stock allows you to easily buy or sell it. Stocks with higher liquidity allow you to execute the shares at a fair price.

6. Volatility

Volatility in the stock market refers to how quickly the price of a stock or market index is moving up and down. Prices of stocks with higher liquidity fluctuate very rapidly compared to illiquid stocks. Higher volatility also comes with an opportunity to earn profit from quick movement in prices.

7. Market Capitalisation

Companies listed in India are categorised based on their valuation, and the method used to calculate this valuation is market capitalisation. It is calculated by multiplying the total number of outstanding shares by the current market price of a share. Based on the market capitalisation, companies are categorised into large-cap,

8. Initial Public Offering (IPO)

When a company seeks to raise capital from the public, it can do so by launching an IPO. It is the first step taken by a company to get itself listed on the stock market. This process is known as an Initial Public Offering. Once the shares are listed on a stock exchange, they can be traded freely in the market.

9. Stock Split

This is a corporate action in which a company divides its existing shares by reducing the price per share and increasing the outstanding shares. Shares were split by the company to make it more affordable and accessible to a wide range of investors. However, the share split only increases the number of outstanding shares but does not increase the company’s overall market value.

10. Blue-chip Stock

Blue-chip stock is shares of large-cap companies. They are generally shares of large, established, and financially strong companies. Investment in blue-chip stocks carries relatively lower risk, but they have the potential of providing stable and consistent returns.

11. Market and Limit Orders

These are types of orders which one can place while executing their trades. In a Market order, the shares are executed at the best available market price. Whereas, in a limit order, the shares are executed at the price defined by the trader or at a specific price. Limit orders are not executed immediately.

12. Bull and Bear Market

These are the two common phases of the market. A bull market is a phase when the stock prices are rising or investors have an optimistic view of the market. However, in the bear phase of the market when the stock price generally falls more than 20%.

13. Dividend

When a company earns profit, it distributes a certain portion of its profit to its existing shareholders in the form of a dividend. Investment in dividend yield companies is suitable for conservative investors or for investors seeking regular income. However, not every company pays dividends; some use their profit for expansion.

14. Index

An index represents a group of stocks which reflects the performance of a particular sector. The performance of the index can be used to measure the performance of the portfolio. Examples of popular indices are Nifty 50, Nifty Mid Cap, Bank Nifty, Nifty IT, etc.

15. Stoploss

A stoploss is a tool used by traders as a risk management strategy to limit their potential loss. It is an automated order placed by the trader to buy or sell a security when the share price reaches a certain level. The primary objective of this order is to protect investors from loss without consistently monitoring the market.

16. ETF

ETF or Exchange Traded Fund is a type of investment tool offered by asset management companies. This is traded on the stock exchange like any other stock. An investor is required to have a demat and trading account if they wish to invest in it. It invests the money pooled from investors in a basket of assets such as bonds, indices, etc.

17. Demat and Trading Account

To invest in the stock market, it is essential to have a trading and demat account. A trading account allows you to execute your trades in the securities market. Whereas, in your demat account, you can hold securities or shares. Both accounts are interconnected and need to be opened with a broker.

18. Market Capitalisation

Market capitalisation is often used to calculate the market value of a company. It is calculated by multiplying the total number of outstanding shares by the current market price of the share. Based on the value calculated, the companies are divided into three different categories such as large-cap, mid-cap, and small-cap.

19. Portfolio

A portfolio is a combination of different asset classes or investments held by an individual or an institution. The wide range of financial instruments held by an investor may include equity, debt, commodities, etc.

20. Capital Gain

Whenever you earn profit from investment in the equity market, you will have to pay Capital Gain Tax on it. The applicable capital gain tax depends on the duration of investment, such as investments sold before one year are subject to tax as per the applicable tax rate of short-term capital gain, which is 20%. However, if the investment is sold after one year of investment, it will be taxed at a rate of 12.5%, after including the exemption of 125000.

Conclusion

On a concluding note, having an understanding of the stock market’s basic terminology is essential for a beginner to start investing in stocks. Initially, various terms might confuse you, but over time, you will get to understand them, and it can help you navigate the market easily. To get more clarity about any terms related to the stock market, you can read blogs, articles, and consult your investment advisor.

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Frequently Asked Questions (FAQs)

What is the difference between a demat and a trading account?
A trading account is used by a trader to execute trades on the exchange. Whereas,a demat account is required to hold the securities purchased in electronic form.
Do I need to pay taxes on the profit earned from the stock market?
Yes, the profits earned from the stock market are subject to tax as per the applicable capital gain tax. If the shares are sold within the period of one year, short-term tax liability will be generated, and if the holdings are sold after one year, long-term capital gain tax is payable.
What is the formula to calculate market capitalisation?
The formula to calculate market capitalisation is as follows:Market Capitalisation = Total Number of Outstanding Shares * Current Market Price.
When does the bear market phase start?
A bear market is a phase when the stock or the index value falls by 20% or more.
What is the meaning of IPO?
An IPO is also known as an Initial Public Offering. When a company wishes to raise capital from the public, it can do so by launching its IPO.

November 9, 2025

Surat Prop Trading Scam ₹150 Cr Fraud Unfolds

The “Prop Trading Scam” that originated in Surat has now become a nationwide topic of discussion. Traders have lost over ₹150 crore by being lured with promises of funded accounts and high leverage. This scam highlights the dangers of unregulated platforms and agents. Police and the Economic Offences Wing (EOW) are investigating, while investors are struggling to recover their money. This blog will explain how the scam unfolded, who was affected, and what lessons traders should learn from it.

Background: How the Surat Prop Trading Scam Started

A “prop trading scam” is a scheme where you’re told you can invest a small amount of capital to gain a large trading limit, make profits, and share in a funded account. However, in reality, this model often operates through unregulated agents and unregistered platforms, where there are no rules or oversight. For example, some “prop firms” claim that the investment will be made with their capital, not yours but investigations reveal that the entire system is based on simulated trading, exorbitant fees, or inconsistent leverage models.

How the Scam Operated: Inside the Prop Funding Trap

Initially, Green Wall Enterprises (also known as Greenvol Enterprises) introduced this model in Surat, Gujarat, presenting themselves as agents of a reputable broking house. However, this agency arrangement was found to be invalid.
Money from investors was typically collected not directly through the exchange, but via UPI, digital transfers, and personal accounts.
Initial complaints registered fraud amounting to approximately ₹4.84 crore, with over 50 brokers and traders filing complaints.
However, as this network was uncovered, the case was not limited to Surat—it spread to other parts of the country (NCR, Jaipur, Ranchi, Kolhapur), and the estimated total loss could exceed ₹150 crore.
As complaints increased, it emerged that the firm had presented itself as an agent of a registered broking house, a claim that the broking house itself denied.
The model was risky because the control of the investment was not entirely in the hands of the trader; the profit withdrawal process was unclear, and when it came time to withdraw money, many traders did not receive their payments.
According to experts, such structures are particularly risky because they lack regulatory oversight and the safeguards understood by the investor are absent.

The Timeline : Surat Prop Trading Scam

Year/Date	Title of the event	Description
August 2025	Initiation of complaints	Traders working within the legal system have filed a complaint against Green Wall Enterprises in Gujarat, alleging that their accounts have been blocked and that funded-trading promises have not been fulfilled.
August 2025 (August 14)	Disappearance of the main accused	Nimit Shah and Hiren Jadav, the alleged heads of Green Wall Enterprises, suddenly disappeared, causing fear and confusion among traders.
September 2025	The brokerage firm denied it.	Jainam Broking Ltd clarified that Green Wall Enterprises is not their agent and there was no transactional relationship between them.
2025-November	Loss estimates exceed ₹150 crore	Based on claims from affected traders in various states across the country, the total estimated loss is now reported to be over ₹150 crore.
2025-November	Police investigation and enforcement action	The Gujarat Police and Economic Offences Wing (EOW) are actively investigating this case. The review of irregular agent-model, client-payment channels, and promised funded-trading schemes is ongoing.

The role of the main accused and the companies

Main Firm: Green Wall Enterprise (also known as “Greenvol Enterprises”) :

This firm operated from Surat, Gujarat, and allegedly promised traders “funded accounts” and high-leverage facilities. The defendants include two key individuals from this firm: Hiren Jadav (previously arrested) and Nimit Shah (still absconding in the case).

Broking Firm Name: Jainam Broking Ltd :

The Green Wall firm claimed to be operating on behalf of Jainam Broking Ltd. However, Jainam Broking has denied this claim. The extent of the legitimacy of this link-up is still under investigation.

Agent/Sub-broker Network and Investors :

The firm recruited investors through a network of agents: for example, one agent collected approximately ₹2.53 crore from 25 clients, while another 29 investors deposited approximately ₹2.11 crore.

Investigation and Regulatory Action

FIR and Initial Action : The Economic Offences Wing (EOW) of Surat Police has registered a case against Green Wall Enterprises under sections of fraud, criminal breach of trust, and conspiracy. The main accused, Hiren Jadav, has been arrested, while Nimit Shah is currently absconding.
Regulatory Bodies : Jainam Broking Ltd. has clarified that it had no agency or transactional relationship with Green Wall. This is significant because regulators such as the Securities and Exchange Board of India (SEBI) and exchange-related entities are monitoring the agent/AP model, where unregistered intermediaries pose a problem.
Direction of Ongoing Investigation : Major proceedings involve scrutinizing bank accounts, digital transfer chains, and off-book transactions. The agent network and the movement of deposits (cash/UPI) are also being tracked. This investigation aims to determine where the funds went, who all were involved, and how to prevent such incidents in the future.
What to Expect Next : A series of arrests may follow, and charge sheets will be filed. Stricter guidelines on unauthorized agent networks may be issued by SEBI/broker-member entities. Recovery for affected investors is an uphill battle; the legal and civil recovery process can be lengthy.

Impacted Traders and Industry Reactions

Traders’ Situation : Following the Surat Prop Trading Scam, several investors claimed that their trading accounts were closed without prior notice. In many cases, traders neither received their profits nor their initial investment back. The Economic Offences Wing (EOW) has received hundreds of complaints from investors alleging that they were misled and given false promises by agents.
Industry Reaction : The broking industry has called this incident a “wake-up call” for investor awareness. Leading brokerage houses have clarified that their authorized agents are only SEBI-registered and are not part of any “funded account” schemes. According to experts, this case demonstrates that unregulated prop trading models can pose a serious threat to investors.
Key Takeaways : This incident serves as a lesson for the entire trading community that it is essential to verify the legal status, registration, and funding process of any platform before investing in it. Financial experts believe that this case could be a significant step towards strengthening investor protection and transparency regulations in India.

Why Such Scams Keep Happening in India

Rapid Growth in Retail Trading : The number of retail traders in India has increased rapidly in recent years. New investors often fall for offers like “funded accounts” and “high returns” without sufficient information. This haste paves the way for such scams.
Social Media Promotion and Influencer Influence : Many fraudulent platforms gain trust through social media and YouTube. Influencer marketing and false promises are used to attract investors, leading to the rapid expansion of cases like the “Surat Prop Trading Scam.”
Regulatory Loopholes and Lack of Awareness : Proprietary trading models are not yet directly under SEBI regulation, which allows fraudsters to exploit this loophole. Additionally, a lack of financial awareness among investors and a failure to rely on proper documentation makes these scams even easier to perpetrate.

Conclusion

The Surat Prop Trading Scam has once again proven that unregulated trading platforms can pose significant risks to investors. Losses exceeding ₹150 crore in just a few months have raised serious questions about market transparency. This incident serves as a warning to investors to thoroughly verify the legitimacy and SEBI registration of any “funded account” or “prop trading” offer before investing. Awareness is the strongest defense against such financial fraud.

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Frequently Answered Questions (FAQs)

What is the Surat Prop Trading Scam?
This is a trading fraud in which investors were defrauded of crores of rupees under the guise of funded accounts.
Which company is involved in this scam?
Surat-based Green Wall Enterprises is primarily accused in this scam.
How much loss has been reported?
A loss of approximately ₹150 crore has been reported so far.
What action is taken by the police?
The EOW has registered a case, arrested one accused, and the investigation is ongoing.
How can traders stay safe?
Always check the platform’s SEBI registration and payment channels before investing.
Is prop trading regulated in India?
No, prop trading is not currently directly regulated by SEBI.

November 8, 2025

Freedom 251 Scam Explained: The Truth Behind India’s Cheapest Smartphone Fraud

There have been hundreds of scams happening in the world, but there are only a few which grabbed the attention of all. Of these, one of the most infamous scams is the one linked to the mobile phones, which was known as Freedom 251.

This is where a scheme allowed people to book a mobile phone for just ₹251. It was indeed one of the most infamous scams and also a scam where the world’s best technology was available for the lowest price. But what was this scam all about?

Well, if you are also looking for an answer to the same, read this guide and know everything you need for the Freedom 251 phone scam.

What is Freedom 251 Scam?

The Freedom 251 scam refers to the controversy around a smartphone. It was launched in 2016 by a company called Ringing Bells. It involved high scale advertising of a phone named Freedom 251. It was advertised as the world’s cheapest smartphone at just ₹251. It promised features like a touchscreen, dual cameras, and Android OS. These are all the specs that normally cost thousands of rupees.

However, soon after the launch, people faced so many doubts. There was confusion about its feasibility. Reports suggested that the actual cost of manufacturing was much higher. Then people found that deliveries were delayed. And the worst part, many buyers never received the phone. Investigations revealed alleged financial irregularities, making the Freedom 251 phone one of India’s biggest tech frauds.

The key features of the Freedom Phone as advertised by the company, are as follows:

RAM: 1 GB
Storage: 8 GB internal memory (expandable up to 32 GB via microSD card)
Processor: 1.3 GHz Quad-Core
Battery: 1450 mAh
Camera: 3.2 MP rear camera and 0.3 MP front camera
SIM Support: Dual SIM
Warranty: 1-year manufacturer warranty
Network: 3G GSM connectivity
Service Centers: Claimed availability of more than 600+ service centers across India

All these features in the year 2016 were no less than the features of a high-end model. In fact, it was believed at that time that this phone held the capability to change, or rather say revolutionize the Indian telecom industry. Think about it, this was a big claim, and this was one of the main reasons why people rushed to book this smartphone.

How the Freedom Mobile 251 Was Marketed

The launch of the Freedom 251 phone was not presented as just another smartphone release. Rather, it was marketed as a national movement. Ringing Bells positioned the device as a symbol of “Digital India.”

It promised that this device would act as a bridge. It will reduce, or rather fill the gap between technology and affordability. The company claimed that by pricing it at just ₹251. At that time, it seemed that the dream of every Indian household to have a smartphone was near accomplishment.

To strengthen credibility, the phone was launched at a grand event attended by political figures, further giving people the impression of government backing. Advertisements highlighted features that people were actually looking for. In fact, these were the features that people usually saw in phones of ₹3,000–₹5,000. And yes, this was a price that many households could not really afford for a phone.

The company promised that this was a large-scale project and would fulfill the needs of every single person in the country. They also got heavy media coverage. Hence, the Freedom phone 251 quickly became a sensation and attracted millions of pre-orders within days.

Controversies and Scam Allegations

The buzz around the Freedom 251 phone was short-lived. It soon turned to a series of doubtful questions. As soon as it was launched, journalists and industry experts began questioning. The most crucial query was how a smartphone with such features could be sold at just ₹251. The reason was that they knew that the manufacturing cost itself was estimated at around ₹2,500.

The device that was handed to the media during the event raised eyebrows. It was not the promised Freedom 251 model but an existing phone from another brand with its logo covered. This discovery made many people suspicious about the company’s intentions.

When bookings opened, lakhs of people rushed to order the phone. But there was only an advance payment option available. This was a red flag for sure. No option for the delivery based payment was there.

Government agencies and consumer groups stepped in, questioning the legitimacy of the scheme. Investigations revealed inconsistencies in the company’s financial claims, lack of proper infrastructure, and false promises about large-scale manufacturing units and service centers. What started as a dream of a budget smartphone for every Indian quickly turned into what is now remembered as the Freedom 251 scam.

Aftermath of the Freedom 251 Bookings

The announcement of the Freedom 251 phone created a storm across India. Within hours of opening bookings, the company received lakhs of orders, so many that the website had to stop taking further requests. Reports suggest that in the very first phase of bookings alone, Ringing Bells collected nearly ₹145 crore from customers eager to own the so-called “world’s cheapest smartphone.”

But soon after the money came in, the reality was far from the promises. The company had assured buyers that deliveries would begin by 30th June 2016, but that date came and went with no handsets reaching consumers. The timeline was pushed to December 2016, and then quietly delayed again. Months passed, yet most customers never saw the product they had paid for.

Red Flags Before the Launch

Even before deliveries began, industry experts had raised doubts. Telecom officials highlighted that the minimum production cost of such a phone was around ₹2,300, making it impossible to sell at ₹251 without huge subsidies. Many declared the offer a scam from day one.

When questioned, the company brushed these concerns aside. They argued that they were using “innovative marketing techniques” and in-built apps to cut costs, a claim that was met with skepticism since established smartphone makers had never managed to achieve such drastic reductions.

Legal Troubles and Investigations

As complaints about non-delivery piled up, some buyers demanded action. While many chose to remain quiet, considering it was “just ₹251” while a few took their grievances forward. Under pressure, the company shifted blame, claiming it needed ₹50,000 crore in government funding to make the project a reality, though this was never mentioned at launch.

Ringing Bells also claimed to have outsourced production to firms like “V Technology” and “Eminence Technology,” but both companies publicly denied having any such orders. Meanwhile, promises of refunds through payment gateways never materialized, leaving customers frustrated.

The bigger blow came when distributors revealed they had been duped into depositing far larger sums than ordinary buyers, with no phones or returns in sight. These complaints added to the mounting pressure.

Arrest of the CEO and Closure

In 2017, the story reached its breaking point when the company’s CEO, Mohit Goyal, was arrested. Investigations showed not only were customers deceived, but distributors and even service providers were cheated. One such victim was “Sai Future,” a call center contracted to handle customer queries, which never received payment for its services.

Although Mohit Goyal was later granted bail, he was arrested again. This was in separate cases. But one thing was common, and that was that all these cases were about fraud, blackmail, and corruption. Eventually, Ringing Bells collapsed.

At the end of all, it left the people with the infamous Freedom 251 scam. This was indeed a cautionary tale in India’s tech and startup landscape.

Lessons Learned from the Freedom 251 Scam

The Freedom 251 scam left behind some important lessons for all of us to consider. These are:

If it sounds too good to be true, it probably is.
Advance payments can be risky.
Government association should be verified.
Transparency matters in business.
Regulatory bodies must act early.

In the end, the Freedom 251 case showed that dreams of digital inclusion cannot be built on false promises. It stands as a warning to stay vigilant in a world where scams often disguise themselves as “too-good-to-miss opportunities.”

Conclusion

The Freedom 251 phone was launched as a bold promise. It gave us the idea that one can bring affordable technology to every Indian. But it ended up as one of the country’s most infamous scams. From undelivered orders to false claims about manufacturing units and service centers, the story exposed how easily excitement can be turned into exploitation.

For consumers, this is a reminder to buy things with caution. Jumping onto everything that seems so good can, at times, end up in a sham. Also, you must be very cautious when you invest your money.

It highlights the importance of credibility and transparency. The Freedom 251 scam may have faded with time, but its lessons remain vital for both buyers and entrepreneurs in India’s fast-growing digital market.

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Frequently Asked Questions (FAQs)

What was the Freedom 251 phone?
It was a smartphone advertised in 2016 for just ₹251, claiming to be the world’s cheapest phone.
Why did people call it a scam?
Because most buyers never got the phone, promises were not fulfilled, and many things about the company seemed suspicious.
Did the company really deliver the phones?
Only a few phones were reportedly delivered. Most people who booked it never received anything.
Was anyone punished for this?
Yes. The company’s CEO, Mohit Goel, was arrested in fraud-related cases.
What’s the main lesson from the Freedom 251 incident?
If an offer sounds too good to be true, we should double-check before paying money.

November 4, 2025

10 Essential Tips for Retirement Saving

Have you ever thought about retirement savings for your future? With such a fast moving life paying bills, managing daily expenses, and trying to have a life can be interesting but saving for a future that seems so far away can feel like the last thing on your mind. It is very easy to say, “I’ll start saving later.”

But building your retirement fund can be an easy step as compared to complicated charts and big numbers, it is more about creating a future where you have freedom and peace of mind. It’s about ensuring that tomorrow you can live comfortably, without financial worries.

In this blog we will learn about future saving tips, how to increase retirement savings and even retirement savings strategies to show you how to maximize retirement savings without needing to be a financial expert.

The 10 Essential Tips for Your Retirement Journey

Tip 1: Power of Compounding

Compounding is like making your money work for you and your money starts to earn its own money, this is the most powerful force for growing your money. The returns you earn start earning returns themselves, and over time, this creates a snowball effect that can dramatically grow your savings.

The most important thing is that you need time for compounding to work for you, due to this you need to start putting money in the early stages. This can easily be started by putting aside a small amount each month, starting in your 20s or 30s and giving your money decades to grow on its own. It’s the simplest way to build wealth without putting yourself under huge pressure to save massive amounts later in life.

Tip 2: Know Your Goal

Saving without a goal is like driving without a destination. Instead of aiming for vague targets or huge numbers, a good starting point is the “Rule of 25.”

Your Target Retirement Fund = Your Current Annual Expenses x 25

This isn’t about hoarding cash; it’s about building a fund that can pay you an income forever. The idea is that you can live off the earnings your fund generates each year, without ever touching the main amount.

Also, remember that the price of things goes up over time also termed as inflation, for example the cost of a cup of chai or a movie ticket is much higher today than it was ten years ago. Your savings need to grow faster than this rise in prices, just to afford the same lifestyle you have today.

Tip 3: Pay Yourself First

Most of us try to save whatever is left at the end of the month, which generally comes to nothing. Now let’s use a different rule where you “Pay Yourself First” at the start of the month itself, this sets aside your savings at the starting itself.

Consider your future self as your most important bill, the day your salary comes in, before you pay for anything else, transfer a set amount (even 10-15% is a great start) to your savings or investment account.

The best way to do this is to set up an automatic transfer for the first of every month, by this way, your future is taken care of without you needing willpower or discipline and you’ll naturally adjust to living on the rest.

Tip 4: Employee Provident Fund (EPF)

If you’re a salaried employee, you have a powerful savings partner with you which is your employer. Through the Employees’ Provident Fund (EPF), a portion of your salary is saved automatically, and your employer contributes to it as well. Your employer’s contribution is added to the small amount that is deducted from your part, collectively both you and your employer contribute to this future savings type.

But here’s a suggestion, don’t assume your EPF will be enough on its own for your future. Think of it as a fantastic head start, a solid foundation for your retirement. Your job is to build on top of it to create a truly secure future.

Tip 5: A Balanced Investment

You might have heard of this “don’t put all your eggs in one basket.” In investing, this is called diversification, where you diversify your investments in such a way that if one of them turns negative then at least the other saves you.

A Stable Investment: These are your safe investments like EPF, Public Provident Fund (PPF), and Fixed Deposits. They provide stability and predictable returns.
The Growth Engine: This is your equity, like stocks and mutual funds. They can be a bit up-and-down in the short term, but over many years, they have the best potential to grow your money and beat inflation.

Tip 6: Government Initiatives

The government of India has special initiatives for long term tax free savings, these initiatives help you to save for your future with good returns. The two most popular are the Public Provident Fund (PPF) and the National Pension System (NPS).

Public Provident Fund (PPF)

It is a savings account that is very safe as it is backed by the government. It is best suitable for people who don’t want to take any risk. The feature of PPF are as follows:

Guaranteed Return: It offers the investors a guaranteed return (currently 7.1%).
Tax-Free Earnings: The best part of this investment is that the interest you earn, and the final amount you get are all completely tax-free.

National Pension System (NPS)

NPS is a special retirement account that invests your money in the market, so it has the potential to earn higher returns with time.

Higher Growth Potential: Though the returns are not guaranteed in this but mapping the future tells us that it has positive results. You can choose a mix of safe and growth-oriented investments.
Extra Tax Savings: NPS gives you a special extra tax deduction of Rs.50,000, which is a bonus you don’t get with most other options.

Tip 7: Systematic Investment Plan (SIP)

SIP is one of the simplest ways to invest for your future, in this you don’t need a financial expert to guide you throughout. SIP works as an automatic payment plan for your investment where you can fix a small amount that can be deducted on a monthly basis and gets directly invested from your bank account to the financial market.

You can set up a fixed amount at once, this amount directly gets out of your bank account on a set date and gets invested for the future. This autopilot approach helps investors in building discipline and investing consistently, which turns out to be helpful for the future expenses. SIP can turn out to be the smartest way to build wealth over a long run keeping your future secure and stable.

Tip 8: Systematic Increases

While we talk about the future we should also consider that today we need to invest so that tomorrow we can get. So a simple trick is to increase your savings with increased income. Let’s say if there is any salary hike you should also consider increasing your investments. Here’s a simple trick that can have a massive impact on your final retirement fund. Every time you get a salary hike, give your investments a small hike too.

If you have a monthly SIP of Rs.10,000, maybe you can consider increasing it to Rs11,000 next year once you get a raise. It’s a small change you probably won’t even feel in your monthly budget. But over 20 or 30 years, these small annual increases can add lakhs, or even crores, to your final amount. It’s a simple way to make sure you’re saving more as you earn more.

Tip 9: Safeguarding via Insurance

Insurance will not turn out to be an investment for you but it will protect your savings, as your future comes with multiple risks, one of the risks is a health emergency. This is what insurance is for. Insurance keeps your healthcare expenses and many other expenses under control resulting in minimal effects on your savings. Like this there are many types of insurance but the two main types that shall be considered are:

Health Insurance: A single hospital visit can wipe out years of savings. Health insurance is there to pay those big bills so your retirement fund stays safe.
Term Life Insurance: This insurance plays a protective role for your family as if something were to happen to you, this insurance pays out a large sum of money to your loved ones so they can be financially stable. A good amount to aim for is a cover of at least 10-15 times your yearly income.

Tip 10: Emergency Fund

These days life is unpredictable for all of us, a sudden job loss, a family emergency, or an urgent car repair can happen to anyone. So you should also have an emergency fund as a safety cushion for such moments as you grow in life.

This is a separate budgeted money, generally 4 to 6 months of your monthly essential living expenses that can only be touched in harsh emergency situations.

It is suggested that you should keep this money safe and separately to a place that can only be opted out during sudden emergencies. It is advised to have a separate savings account or a fixed deposit that can be easily liquidated.

Conclusion

Planning for retirement isn’t as hard as we think, it is just about making a plan and climbing the stairs step by step with consistency. You cannot suddenly start saving for your future, rather it is a time taking step that needs to be started as soon as you realise the real need.

Your future planning does not require a financial expert to create a plan. It is as simple as saving from your monthly budget but you need to start early, be disciplined by automating your savings, and protecting your future.

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Frequently Asked Questions (FAQs)

When should I start saving for my retirement?
The best time has already started, every passing day is giving you less savings. The earlier you start, the more time your money has to grow through compounding.
How much money shall I save from my salary to save for my retirement?
One should at least make an aim to save 15% to 20% of their salary or income, at the beginning you can also start with saving just 10% of it.
Will my EPF cover the requirements of my future?
EPF can be a great foundation for your retirement but with rising costs and inflation you should also invest in mutual funds SIPs, PPF or NPS to build a stable fund for hassle free retirement.
Difference between PPF and NPS?
PPF is a guaranteed return investment that comes with great savings, also it is tax free on the other hand NPS is linked to the market, so it has the potential for higher returns but also comes with more risk.
Should I keep my Emergency fund separately?
A separate savings account or a Fixed Deposit (FD) are excellent choices for keeping your emergency funds. The main goal of an emergency fund is to have quick access to your savings for any crisis and not to earn high returns on it.

October 23, 2025

Best Annuity Plans in India

Retirement planning plays a key role in the journey towards a financially secure future. Various companies are offering different “Annuity plans” which can help you in maintaining your pre-retirement lifestyle even after your retirement.

In today’s blog post, we will give you an overview of the best “Annuity Plan” in India 2025.

What are Annuity Plans?

Annuity plans are an investment tool that generally offer regular income for an individual after a certain period of time, typically after retirement, in return for a lump-sum payment. The regular stream of payment can either be started immediately or can be started at a later stage. These plans are generally opted for by individuals who are nearing retirement or have retired.

Best Annuity Plans in India 2025

The following are the best Annuity Plans in India 2025:

Aditya Birla Sun Life Immediate Annuity Plan
Aviva Annuity Plus
Canara HSBC Pension for Life Plan
Exide Life New Immediate Annuity Plan
Future Generali Immediate Annuity Plan
HDFC Life Pension Guarantee Plan
ICICI Prudential Immediate Annuity Plan
IDBI Federal Guaranteed Lifetime Income Plan
PNB Metfile Immediate Annuity Plan
Bajaj Allianz Guaranteed Pension Goal

Overview of Best Annuity Plans in India 2025

A brief overview of the best Annuity Plans in India 2025 is as follows:

1. Aditya Birla Sun Life Immediate Annuity Plan

Aditya Birla Sun Life’s Guaranteed Annuity Plus (Immediate Annuity variant) is a non-linked, non-participating annuity plan that gives retirees regular and guaranteed income immediately after they purchase it. With this plan, you pay a single premium (lump sum) and then get regular payments for the rest of your life. These payments can be monthly, quarterly, half-yearly, or yearly.

2. Aviva Annuity Plus

The Aviva Annuity Plus Plan is a single premium immediate annuity plan which is not linked and non-participating. It is a popular retirement option because you can make a single investment and start getting a guaranteed, lifelong income immediately. The plan offers flexibility and has seven different annuity options to meet different needs. These include a simple Life Annuity, options that guarantee the annuity for a set period of time (5, 10, or 15 years) even after the annuitant dies, and an increasing annuity at a 3% simple rate to protect against inflation.

3. Canara HSBC Pension for Life Plan

The Canara HSBC Pension 4Life Plan has several annuity options, such as immediate and deferred annuities, so people can choose the one that best suits their retirement needs. This plan’s goal is to give people peace of mind and financial security during their retirement years. It also offers options for joint-life coverage, return of the purchase price, and increasing annuity benefits to keep in line with inflation.

4. Exide Life New Immediate Annuity Plan

This annuity plan also offers you guaranteed lifetime income based on a single lump sum investment. The plan provides flexibility according to individual and family needs by offering a range of annuity options, such as single-life and joint-life variants, with or without the return of purchase price.

5. Future Generali Immediate Annuity Plan:

A retirement income option called the Future Generali Immediate Annuity Plan aims to offer lifetime financial stability through a guaranteed income stream, which begins immediately as a one-time lump sum investment is made. It helps people who want to immediately turn their savings into a reliable income after retirement.

6. HDFC Life Pension Guarantee Plan

HDFC Life Pension Plan offers a consistent and guaranteed income for a retiree in the form of a monthly pension to maintain their lifestyle. The key features of this plan include different types of annuity payout plans, including various payout frequencies. You can also protect your spouse’s financial future by purchasing joint-life insurance.

7. ICICI Prudential Immediate Annuity Plan

In return for a one-time lump sum investment, the ICICI Prudential Immediate Annuity Plan guarantees lifetime income, ensuring post-retirement financial stability. To meet specific needs, it offers a variety of annuity options, including single-life, joint-life, and return of purchase price options. Policyholders have the option of deferring income start for higher returns and selecting a payout frequency of monthly, quarterly, half-yearly, or annual.

8. IDBI Federal Guaranteed Lifetime Income Plan

During their retirement years, retirees can maintain their financial independence and peace of mind with the help of IDBI Federal Life Insurance. Key features include a variety of annuity options, including return of purchase price, joint-life, and single-life, which provide flexibility and protection for families; a lifetime income guarantee that is not impacted by market movements; and the option of monthly, quarterly, half-yearly, or annual payout frequencies.

9. PNB Metfile Immediate Annuity Plan

A traditional, non-linked annuity product, the PNB MetLife Immediate Annuity Plan provides to convert your accumulated corpus—such as retirement funds or NPS proceeds—into a consistent lifetime income. A one-time payment (purchase price) followed by guaranteed payouts, a choice of payout frequency (monthly, quarterly, half-yearly, or annual), joint-life options to support your spouse, and choices to transfer the purchase price or remaining amount to your nominee in the event of your death are some of the key features of this annuity plan.

10. Bajaj Allianz Guaranteed Pension Goal

The non-linked, non-participating Bajaj Allianz Guaranteed Pension Goal annuity plan converts a lump sum (or premium payments in deferred modes) into regular payments either immediately or after a deferment period, guaranteeing retirees a lifetime income. The ability to customize the return of purchase price (ROP) upon death or survival, joint life insurance with a 50% or 100% annuity to the spouse, survival benefits, and top-up premiums are additional features.

Factors to Consider Before Investing in Annuity Plans

The factors to consider before investing in Annuity Plans are as follows:

Type of Plan: There are two types of annuity plans: immediate or deferred annuity. If you wish to get the regular payouts immediately after your retirement, you can opt for an immediate annuity, whereas if you want it to begin after a few years, you can choose the deferred annuity option.
Inflation: The annuity plan which you are opting for must have an inflation protection feature. As it can help you maintain the purchasing power against inflation.
Partial Withdrawal: One should check for a plan which offers partial withdrawals, as it can be required in case of an emergency.
Duration: Life expectancy helps you in choosing the payout feature of the annuity plan. Whether you want it for a fixed duration or for a lifetime.
Payout Option: One should evaluate different payout modes, such as joint life, return of purchase premium, etc., before choosing the annuity plan.
Claim Settlement Ratio: It is advisable to choose a company with a higher claim settlement ratio and a strong financial background.

Conclusion

On a concluding note, investing in an annuity plan is an important part of your retirement planning. These plans help you to get a steady income even after your retirement to meet your financial needs. Various types of annuity options are available in the market, but you should choose which one is suitable for your goal. However, it is advisable to compare the features of different annuity plans offered by companies before choosing one for your retirement, and consult your investment advisor for the same.

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Frequently Asked Questions (FAQs)

What are the two main types of annuity plans?
The two major types of annuity plans are immediate annuity and deferred annuity.
Are payouts from annuity plans taxable in India?
Yes, annuity plans are taxable and are taxed according to your income tax slab.
Can I partially withdraw the corpus accumulated in the annuity plan?
Partial withdrawal is not allowed by almost all annuity plans. Annuity plans that allow for early and partial withdrawal are still very few.
Is there any alternative option available for annuity plans?
Yes, there are various alternative options for annuity plans, such as Mutual Fund SWP, etc.
What is the minimum investment amount for annuity plans?
Different annuity providers have different minimum investment amounts. But generally, it starts at one lakh INR.

October 20, 2025

Best Private Banks in India

In 2025, the role of private banks in the Indian banking sector has become stronger than ever. People are now liking them due to digital banking, better customer service and attractive products. If you want to know which is the best private bank in India or which banks have got a place in the top 10 private banks in India 2025, then this article is for you. Here we will explain in detail which private bank can prove to be the best according to your needs.

What is a Private Bank?

When we talk about private banks, it means banks that are owned by private companies or investors rather than the government. The specialty of these banks is that they focus on providing quick and modern facilities to the customers. Whether opening a new account, taking a loan or transferring money through a digital app their processes are generally considered to be fast and easy.

These banks are more competitive than government banks and are ahead in adopting new technology. For this reason, the popularity of private banks has increased in recent years and people have started preferring them for their everyday banking needs.

Top 10 Private Banks in India 2025

S.no	Bank Name	Market Cap (₹ Cr, 2025 est)	Current Market Price	Founded	Headquarters
1	HDFC Bank Ltd	₹ 14,53,319	₹ 946	1994	Mumbai
2	ICICI Bank Ltd	₹ 9,85,625	₹ 1,380	1994	Mumbai
3	Kotak Mahindra Bank Ltd	₹ 4,05,056	₹ 2,037	2003	Mumbai
4	Axis Bank Ltd	₹ 3,60,438	₹ 1,162	1993	Mumbai
5	Yes Bank Ltd	₹ 66,914	₹ 21.3	2003	Mumbai
6	IndusInd Bank Ltd	₹ 58,290	₹ 748	1994	Mumbai
7	AU Small Finance Bank Ltd	₹ 55,219	₹ 740	1996	Jaipur
8	IDFC First Bank Ltd	₹ 51,613	₹ 70.3	2015	Mumbai
9	Federal Bank Ltd	₹ 47,806	₹ 194	1931	Aluva, Kerala
10	Bandhan Bank Ltd	₹ 25,832	₹ 160	2015	Kolkata

(Data as of 24 Sep 2025)

Read Also: Best Bank Penny Stocks List

A brief overview of the Top 10 Private Banks in India is given below:

1. HDFC Bank Ltd

HDFC Bank is one of the largest private banks in India. It focuses on customer-first services: from easy bank account opening, digital banking apps, online transactions, home loans to wealth management. The bank has strengthened its mortgage portfolio, retail network and digital touch-points after the merger of HDFC Limited. The branch and ATM network is very large in terms of customer service, and the bank plans to open new branches frequently to reach out to small towns and rural areas. The current CEO and MD is Sashidhar Jagdishan, who is focusing the bank’s strategy on technology, digital experience and customer satisfaction.

Description	Information
Number of branches	Around 9,499 branches
Services provided	Retail & commercial banking, loans, credit cards, wealth management, home & auto loans, digital banking, NRI Services , Forex.
Number of customers	Over 120 million customers , After Merger
CEO	Sashidhar Jagdishan

Read more Information: HDFC Bank Case Study

2. ICICI Bank Ltd

ICICI Bank is a name that is well known in big cities as well as small towns. The bank does both retail + corporate banking well. They have made great strides in digital services – mobile app upgrades, net banking, UPI transactions, customer-friendly products. Their service network is large in both branches & ATM and they have also built an international presence. The bank focuses on customer experience, as styled by their CEO MD Sandeep Bakhshi – simple, reliable and technology-oriented.

Description	Information
Number of branches	Around 7,066 branches
Services provided	Retail & corporate banking, credit cards, insurance, investment banking, wealth & asset management, NRI services
Number of customers	More than 30 million
CEO	Sandeep Bakhshi

Read more Information: ICICI Bank Case Study

3. Kotak Mahindra Bank

Kotak Mahindra Bank has distinguished itself from larger banks by its strong focus on innovation and customer service. The company was initially founded in 1985 as Kotak Capital Management Finance Limited in 2003, it received a banking licence from the RBI making it the first non- banking financial companyin India. The bank is not limited to savings accounts and personal loans, but also operates in areas such as wealth management, investment banking, insurance, and premium banking. Kotak is significantly ahead in digital services such as mobile banking, faster account opening, and UPI integration for online transactions. Recently, the RBI imposed restrictions on certain digital customer acquisition activities, but Kotak has tried to get back on track after addressing these weaknesses.

Description	Information
Number of branches	Around 1,869 branches
Services provided	Retail & corporate & Commercial banking, credit cards, wealth & investment management, insurance, digital banking , NRI & Forex Services.
Number of customers	More than 54 million
CEO	Ashok Vaswani

Read more Information: Kotak Mahindra Bank

4. Axis Bank

Axis Bank is a bank that has expanded its branches from major cities to smaller towns. Its mission is not just to provide financial services, but to offer customers a comprehensive banking experience through robust digital tools, easy loan options, and features like international trade and forex services. The number of branches is constantly expanding, and new products are being rapidly implemented on digital platforms.

Description	Information
Number of branches	Approximately 4,910 branches and extension counters
Services provided	Retail banking, corporate banking, investment banking, mortgages, credit cards, wealth management, NRI services, SME & Agri Banking.
Number of customers	More than 22.6 million
CEO	Amitabh Chaudhry

Read more Information: Axis Bank Case Study

5. YES Bank

YES Bank was started in 2003 and has established its presence in all three sectors – retail, MSME and corporate banking. The last few years have been challenging for the bank, but now it is slowly on the path of recovery. Recently, the bank has further expanded its branch network and is focusing more on digital banking services. YES Bank is continuously introducing new products in credit cards, SME loans and digital payment solutions. The special identity of the bank is that it tries to provide tailor-made solutions to both mid-size businesses and individual customers. Its current MD & CEO is Prashant Kumar, whose tenure has been extended till October 2025 so that the bank can work further towards stability.

Description	Information
Number of branches	1,234 branches across India
Services provided	Retail & corporate banking, SME & MSME loans, credit cards, digital payments, wealth management, GST payment solutions
Number of customers	More than 2 million
CEO	Prashant Kumar

Read more Information: Yes Bank Case Study

6. IndusInd Bank

IndusInd Bank was founded in 1994 and has since established itself in the banking sector. It primarily serves both retail and corporate customers. Its specialty is its tailored services for affluent and HNI (High Net Worth Individuals) customers, such as investment advisory, wealth management, and priority banking. It also has a strong presence in rural banking and vehicle finance. IndusInd Bank is also continuously investing in digital banking solutions to provide a seamless customer experience.

Description	Information
Number of branches	Approximately 3,110 branches and extension counters
Services provided	Retail & corporate banking, wealth management, vehicle finance, microfinance, NRI banking, digital banking
Number of customers	More than 41 million
CEO	Rajiv Anand

Read more Information: IndusInd Bank Case Study

7. AU Small Finance Bank Ltd

AU Small Finance Bank was founded in Jaipur and received its Small Finance Bank license in 2017. Initially, its focus was on small businesses and rural customers, but gradually, the bank has established its presence across the country. AU Bank’s biggest differentiator is its customer-centric approach whether it’s video banking, WhatsApp banking, or the “AU 0101” mobile app, it has significantly expanded its digital footprint. In 2025, the RBI granted it in-principle approval for universal bank status, allowing it to offer services on a broader scale. Its branches are no longer limited to major cities, but are rapidly expanding into smaller towns and semi-urban areas.

Description	Information
Number of branches	2,500+ banking touchpoints across 21 states
Services provided	Savings & current accounts, personal & business loans, credit cards, microfinance, insurance, investment products, digital banking (AU 0101 app, video & WhatsApp banking)
Number of customers	More than 1.16 crore customers
CEO	Sanjay Agarwal

Read more Information: AU Small Finance Bank Case Study

8. IDFC First Bank Ltd

IDFC First Bank was launched in 2018 after the merger of Capital First and IDFC Bank. Within a short time, the bank has gained a strong reputation for its “customer-first” model. It offers attractive interest rates on savings accounts, digital banking features, and customer-friendly products. The bank’s focus is on serving retail customers, MSMEs, and small businesses. With products such as credit cards (especially co-branded ones), personal loans, and digital UPI payments, IDFC First has rapidly gained the trust of youth and middle-class customers.

Description	Information
Number of branches	1,016+ banking touchpoints across 21 states
Services provided	Savings & current accounts, personal & business loans, credit cards, MSME lending, microfinance, digital banking (UPI, doorstep banking, GST payments)
Number of customers	More than 35 million customers
CEO	V. Vaidyanathan

9. Federal Bank

Federal Bank, founded in 1931 and headquartered in Aluva, Kerala, is one of India’s oldest and most trusted private banks. It is particularly known for its NRI banking services, with a large number of Indians working in Gulf countries choosing Federal Bank. It also has a strong presence in retail and SME banking and continues to innovate with digital banking services. Its mobile app and UPI-based services are very popular with customers.

Description	Information
Number of branches	1,588+ branches across India
Services provided	Retail & corporate banking, NRI services, SME finance, digital banking, investment & insurance products
Number of customers	More than 18.2 million
CEO	Manian KVS

10. Bandhan Bank

Bandhan Bank was launched in 2015, but its roots are rooted in microfinance. The bank’s primary focus is to bring banking to areas often underserved by traditional large banks. Bandhan Bank’s strong network in rural and semi-urban areas has created a distinct identity for itself. It offers more than just savings accounts and loans, but now also offers credit cards, insurance, and investment products. The bank is continuously working towards financial inclusion and recently expanded its reach by opening branches in new states.

Description	Information
Number of branches	6,350 banking outlets across India
Services provided	Savings & current accounts, fixed deposits, personal & home loans, credit cards, insurance, mutual funds, microfinance
Number of customers	More than 3.44 crore
CEO	Partha Pratim Sengupta

Read more Information: Bandhan Bank Case Study

Key Performance Indicators (KPIs)

The key performance metrics of stocks of 10 private banks in India

Bank Name	Operating Margin (%)	Net Profit Margin (%)	ROE (%)	ROCE (%)	P/E
HDFC Bank Ltd	25.58	21.83	13.56	2.62	9.85
ICICI Bank Ltd	26.47	29.20	16.45	3.13	18.62
Kotak Mahindra Bank Ltd	27.91	33.41	14.04	3.93	19.51
Axis Bank Ltd	33.11	22.07	14.98	2.84	12.15
Yes Bank Ltd	16.22	7.91	5.11	1.06	21.37
IndusInd Bank Ltd	9.63	5.29	3.99	2.01	19.65
AU Small Finance Bank Ltd	19.98	13.10	12.26	2.99	18.88
IDFC First Bank Ltd	5.67	4.08	3.90	2.24	26.94
Federal Bank Ltd	29.17	14.94	12.04	1.85	11.35
Bandhan Bank Ltd	18.98	12.50	11.15	3.95	8.58

(Data as of 24 Sep 2025)

How to Choose the Right Private Bank: A Customer vs. Investor Perspective

A. For Customers Seeking Banking Services:

1. Identifying Needs : Consider what you need from a bank just a savings account or a credit card, personal loan, and wealth services as well. Your priorities determine the right bank.

2. Interest Rates and Fees : Every bank charges different interest rates and charges. Whether it’s savings or loan EMIs, pay attention to hidden charges. These small differences can make a big difference in the long run.

3. Branches and Digital Facilities : Check if a branch and ATM are available in your city or town. Also, if the mobile app and net banking are running smoothly.

4. Customer Experience : Check app ratings, online reviews, and customer care responses. A good bank is one that resolves your issues quickly and promptly.

5. Trustworthiness : Pay attention to RBI compliance, track record, and market reputation. A safe bank is the right place for your money in the long run.

B. For investors investing in the banking sector

1. Financial Strength : Look at market cap, capital adequacy ratio, and loan book growth. These indicate how stable a bank is operating.

2. Profitability : Look at Net Interest Margin (NIM), Return on Assets (RoA), and cost-to-income ratio. These metrics indicate long-term profitability.

3. Asset Quality : Analyze NPA levels and provisioning policy. Low NPAs indicate strong risk management.

4. Growth Strategy : Consider which new areas the bank is expanding into (digital banking, SME finance, NRI services). Growth strategy determines future returns.

5. Management and Governance : It is important to trust the credibility and governance culture of the CEO and top management. Good leadership increases investor confidence.

Read Also: Best Banking Stocks in India

Conclusion

Private banking in India is constantly changing, and each bank has its own unique identity. Digital banking and customer service are important to some, while interest rates and product variety are important to others. For investors, this sector is also considered a reliable option in the long run. The right choice always depends on your needs and priorities.

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Frequently Asked Questions (FAQs)

Which is the best private bank in India in 2025?
Depending on your needs, big names like HDFC and ICICI are trustworthy.
Are private banks safe for deposits?
Yes, all are regulated by the RBI, so they are safe.
Which private bank is best for digital banking?
HDFC, ICICI, and Axis are ahead in digital services.
Can I switch my salary account to another private bank?
Yes, you can do it easily by informing your employer.
Which private bank is good for rural areas?
Bandhan and Federal are strong in rural and semi-urban areas.

October 10, 2025

Scam 2003: Who was Abdul Karim Telgi, and what was the Stamp Paper Scam?

India has witnessed many scams over the years, but the 2003 Stamp Paper Scam remains one of the most infamous. At its centre was Abdul Karim Telgi, who rose from selling peanuts on trains to building a vast counterfeit empire. His story is not just one of fraud, but also a reflection of how sharp ingenuity combined with systemic corruption enabled one of the country’s largest financial scandals.

In this blog, we will trace the rise of Telgi, walk through the chronology of the stamp paper scam, examine its massive impact, and highlight the key lessons it left behind for India’s financial system.

About Abdul Karim Telgi

Abdul Karim Telgi was born in 1961 in Khanapur, Karnataka. After his father, a railway employee, passed away, the family struggled. As a boy, Telgi sold peanuts and fruit on trains to survive. He went to Saudi Arabia seeking better opportunities. There, he picked up odd jobs and also learned the tricks of shady businesses.

When he returned to India, he started a company, namely ‘Arabian Metro Travels’ and began forging passports to help people travel illegally.

Stamp Paper Scam – An Overview

The Telgi Scam, also known as the Stamp Paper Scam, is one of those true stories that sounds like it was taken from a crime thriller. In the early 2000s, Abdul Karim Telgi pulled off a scam so big that it shook India’s economy and showed that there was corruption at almost every level.

It was all about stamp papers, which one needed for loans, property deals, insurance, and legal work. Telgi realized that since there was such a high demand for them, making counterfeits could be quite lucrative. And he was right. He began to flood the market with fake stamp papers after getting access to printing presses and support from corrupt officials.

His fake papers became so popular that banks, insurance companies, and even government offices started using them. The scam was worth more than ₹30,000 crore by the time the truth was found. It wasn’t just about the money either; countless legal documents suddenly became questionable, creating chaos everywhere.

Telgi was finally caught and sentenced to a 30-year prison term, but the destruction was already done. The only good thing that happened because of the scandal was that it prompted the system change, and now e-stamping is used to ensure that this never happens again.

Chronology of the Stamp Paper Scam

The chronology of the stamp paper scam is given below:

1. Learning about stamp papers

The government gives stamp papers for legal and financial transactions, such as selling property, making loan agreements, getting insurance, and going to court. They are only supposed to be printed and sold by the government through authorised vendors because they have legal value.

This meant that there was a lot of demand, but not enough supply. This was a perfect situation for Telgi to take advantage of.

2. Getting to Printing Presses

Telgi did not just make bad counterfeits. Instead, he paid people to let him into government security presses, places that printed real stamp papers. He was able to get printing machines, special ink, and security paper with the help of corrupt officials. That is why his fake stamp papers looked so real that banks couldn’t tell the difference.

3. Setting up a distribution network

Once he had the supply, Telgi needed reach. He created a network of agents, middlemen, and vendors that could ship things all over the country. These were not just random petty criminals; a lot of them were licensed stamp paper sellers. They mixed fake stamp papers with real ones to get his stock across the country without anyone noticing.

4. Paying people to be quiet

No scam of this magnitude could last without strong protections. Telgi paid police officers, politicians, and bureaucrats to make sure things ran smoothly. In many instances, the people who were supposed to look into him ended up working for him. This network of corruption kept the scam going for years.

5. Getting into every area

The fake stamp papers were not simply floating around in local stores. They made it to:

Banks (used in loan and mortgage papers)
Insurance companies (policies written on fake papers)
Government offices (contracts and legal papers)
Courts (filing cases and making deals)

This meant that the scam wasn’t just about money; when it was revealed, it caused legal and administrative chaos.

6. Scale of the Scam

Telgi’s business was worth more than ₹30,000 crore. To put that into perspective, his fake papers were so common that they were used for multiple financial transactions by big companies. It was not just a scam; it was a system that worked beside the real one.

7. The Beginning of the End

The scam fell apart when whistleblowers and journalists started looking into it more closely. Eventually, the police had to pay attention to it. When he was caught, Telgi admitted how big his operation was.

How was he caught?

Catching Abdul Karim Telgi wasn’t easy. Fake stamp papers had surfaced as early as 1991 and 1995, but weak investigations allowed him to escape.

Unlike most fraudsters, Telgi did not hide in the shadows; instead, he lived lavishly, which helped him build powerful connections.

The turning point came when R. Sri Kumar, head of the Stamp Paper Investigation Team, arrested Telgi’s colleague Soni. Around the same time in 2002, a tip to Pune Police uncovered a racket that eventually traced back to Telgi.

With rising public anger, the Maharashtra government formed a Special Investigation Team (SIT). Karnataka followed with its own SIT, STAMPIT, which exposed how deeply Telgi’s network had spread, from government staff to police officers and even politicians.

By 2004, the scam had grown too large for state agencies, and the CBI stepped in. That August, it filed a detailed chargesheet. Telgi shocked many by pleading guilty, openly admitting his crimes

End

Telgi’s story ended sadly, even though he was smart. He was diagnosed with AIDS while he was in jail. His health worsened over the years, and in 2017, he died in a Mumbai hospital from multiple organ failure.

This is the end of the story of a man who went from selling peanuts on trains to being involved in one of the biggest financial scams in India’s history.

Impact of the Scam

The Telgi Stamp Paper Scam was not just about fake papers; it shook up the entire system.

1. Huge Financial Loss – A lot of money was lost by the government, money that could have been used for public welfare and development.

2. Trust was broken – People started to doubt the validity of their insurance policies, loans, and property papers.

3. Banking and Legal Mess – Courts, banks, and insurance companies were stuck with papers that may or may not be valid, which led to arguments and delays.

4. Changes Made – The scam led to e-stamping in 2005, which made the system more open and safe from fraud.

Conclusion

The Telgi scam exposed how corruption thrives when those in power look the other way. Though Telgi died in 2017, the damage he caused left a lasting mark on India’s economy and politics. At the same time, it pushed the government to introduce much-needed reforms like e-stamping, making the system more secure. His story is not just about one man’s crime, but a reminder that scams succeed only when the system allows them to.\

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6	Explainer on UPI Scams
7	Financial Scams in India

Frequently Asked Questions (FAQs)

How did Telgi manage to fool everyone?
He used actual government printing presses and sold fake stamp papers as originals.
Was this scam only in Maharashtra?
No, it spread across more than 12 states from Karnataka to Delhi, like a spiderweb.
How did it affect common people?
Imagine buying a house or taking a loan, only to find later that all the paperwork was worthless. This is how it affected common people.
How did Telgi’s story end?
He spent his final years behind the bar, fighting with illness and eventually passed away because of multiple organ failure in 2017.
What changed after the scam?
The government introduced e-stamping to make the process digital and safe.

September 19, 2025

Open Interest: Meaning, Functionality & Importance

In the stock market, price and volume tell you what is happening around. Where price tells you how a company is performing, the volume suggests how many people are interested in the company. But there is one more term that holds an equal importance and should be known to you. This is called open interest.

It tells you who’s still in the game. If you trade in futures or options, open interest is a key metric you can’t afford to ignore. It tracks how many contracts are still active. This allows you to explore the actual situation or picture of the market.

But there is more to it. So, let us explore the concept of open interest in the guide over here and see how it helps.

What is Open Interest?

Open Interest is the total number of outstanding derivative contracts, such as futures or options, that are currently active in the market. These contracts have not been closed, settled, or expired. It represents the number of ongoing positions that traders are holding.

When a new buyer and seller enter a contract, open interest increases. If either party exits by closing their position, open interest decreases. By checking this number, traders can understand the value of participation in the specific contract.

Where traders’ volume only focuses on the number of transactions in a day, the open interest goes a step ahead. It shows you the number of the contracts that are actually open at the end of the day. This does not change with every trade. But when you create a new contract or close an existing one, there will be a change.

To understand this, here is a simple example to follow.

Say, the open interest is rising, and prices are also rising. This means that the traders are entering long positions. This now supports the trend. Now, if the prices rise but the open interest falls, then traders are closing some of the older positions. They are not creating new ones here, which means the trend is now weak.

Features of Open Interest

Reflects active market positions: Open interest shows how many contracts are still live and held by traders.
Changes only with creation or closure: It increases with new contracts and decreases when positions are closed.
Used to confirm trends: A rising open interest alongside price movement indicates strength in the trend.
Helps track market participation: Higher open interest suggests more engagement from traders and investors.
Applies to derivatives only: This metric is relevant to futures and options contracts. This is not regular stock trading.

How Does Open Interest Work?

To understand the working of the open interest, here is a simple working mechanism. It is clear that the open interest changes only when some new positions are added and old ones are closed.

To break this down, here is a clear and simple situation.

Say, there are two trades Mr. X and Mr. Y.

Now, Mr. X is willing to buy one Nifty futures contract. Mr. Y is willing to sell the same. Now, one contract option is open. The open interest is now 1.

Further, Mr. X sells this contract to Mr. Z. Still, the open interest stays at 1. Why? Well, this is because one trader is moving out of the trade and a new one is entering. So, the number of active people in trade is still the same.

However, if Mr. X and Mr. Y both close their positions completely and there is no third person in trade, then the open interest will fall to 0.

This shows that open interest reflects the number of existing contracts, not the number of trades.

The value is updated at the end of each trading day. You can see this data on the exchange website or your trading platform. For options, open interest at specific strike prices can also hint at support and resistance zones based on where the most contracts are active.

How to Interpret Open Interest in Trading

Open interest allows the traders to understand market sentiment, confirm trends, and detect possible reversals. Here are some of the key interpretations that you can get from the same.

1. Rising Open Interest with Rising Prices

This is typically viewed as a strong bullish signal. It shows that there is an inflow of money and people are looking for long positions. This is a good time, and price and open interest will both rise. This shows that there is an upward trend, which is great.

2. Rising Open Interest with Falling Prices

This combination is often interpreted as bearish sentiment. Traders are opening new short positions, betting that prices will continue to decline. The increase in open interest shows fresh participation supporting the downtrend.

3. Falling Open Interest with Rising Prices

Here, the rise in price is not supported by new positions. This can indicate short covering, where traders who had short positions are now exiting. While prices are going up, the falling open interest warns that the trend may lack sustainability.

4. Falling Open Interest with Falling Prices

This setup usually means traders are closing existing short positions. This is most likely a sign of a down trend in the market. It may point to market exhaustion. Here, the sellers are stepping aside, and a bottom could be near.

An important point to note here is that these are not fixed. These are just indications, and so solely acting based on them is not right.

Strategies Using Open Interest for Trading

Open interest can enhance decision-making across different trading styles. It helps to understand the market and risk position better. Some strategies that can help in the process are as follows:

1. Swing Trading

Swing traders look to earn from short-term price movements. So, when the open interest is rising, it means that the current trend is working out. This supports the decision to ride the trend for a few days or weeks.

Tip: Always confirm with volume. High volume and rising open interest make the trend more reliable.

2. Position Trading

Position traders hold trades for longer durations. If there is a steady increase in the open interest for a long time, then this means that the positions are developing. This is a sign of mainly institutional investors entering the trade. This adds strength to the trend and helps position traders commit confidently.

Tip: Combine with moving averages or trend indicators. This will help you time your entry during pullbacks.

3. Scalping

Scalpers look for quick trades with small price movements. Their target is to earn quickly and exit. So, if there is a high open interest, then there is more liquidity. This means the bid-ask spreads are very tight. This allows scalpers to enter and exit positions quickly without significant price impact.

Tip: Monitor intraday open interest changes in liquid contracts only.

4. Hedging

Investors use open interest data to hedge large positions using derivatives. In case of a high open interest in the future and options, you will find more liquidity. This makes it easier to set up effective hedging strategies. All this will assist with minimal slippage.

Tip: For hedging, try to prioritize instruments with the highest open interest to reduce risk.

Common Misconceptions About Open Interest

Open interest is used quite prominently. But still, there are a few misconceptions that are around it. Clearing them is very important to make the right calls. So, here are the common misconceptions to know:

1. Open Interest and Volume Are the Same

This is incorrect. Volume shows how many contracts changed hands during a trading day, regardless of whether they were new or existing. Open interest reflects the number of contracts that are still active. A contract can have high volume but unchanged open interest if traders are simply exchanging existing contracts.

2. Rising Open Interest Always Signals Bullishness

Not necessarily. Rising open interest indicates fresh participation, but the sentiment depends on price movement. If prices are rising along with open interest, it is bullish. If prices are falling, it suggests bearishness due to new short positions.

3. Declining Open Interest Means the Trend Is Reversing

Not always. A fall in open interest simply shows that traders are exiting positions. It can be a sign of the trend losing its strength. But it is not a sure sign of reversal. Prices can still continue in the same direction. This is possible even with reduced momentum.

4. Open Interest Is a Leading Indicator

Open interest is best used as a confirming indicator. This is not a predictive one. It works most effectively when combined with other signs. These include the price action, volume, and technical analysis. All these help to validate trends or spot potential exhaustion.

Open Interest vs Volume: Key Differences

Understanding the distinction between open interest and volume is essential. The key differences that you must understand are as follows:

Feature	Open Interest	Volume
Definition	Total number of contracts still active	Total number of contracts traded during the day
Change Criteria	Increases or decreases when contracts are opened or closed	Increases with every buy-sell transaction
Reset Frequency	Carried forward until position is closed	Resets to zero at the beginning of each trading day
Indicates	Market participation and existing commitments	Daily trading activity and interest
Used For	Assessing trend strength and liquidity	Gauging intraday interest and momentum
Dependency on New Trades	Reflects net additions or closures of positions	Counts all trades, regardless of position change

Benefits and Limitations of Open Interest

Open interest is a valuable metric and helps gauge the strength of a trend. However, like any market indicator, it has its strengths and weaknesses. The pros and cons to know are as follows.

Benefits of Open Interest

Confirms the strength of a price trend when used with volume and price data
Indicates active participation and rising liquidity in the contract
Helps traders identify potential reversals or continuation of trends
Useful in options trading to spot support and resistance zones
Assists in risk management and planning hedge positions

Limitations of Open Interest

Cannot be used in isolation, as will give incomplete results
Offers limited insights during sideways or low-volatility markets
The real-time effectiveness is reduced
Not applicable to cash equity markets; only used for futures and options
Does not clearly show bullish or bearish positions without context

Conclusion

Open interest offers valuable clues. These are linked to the market sentiment, trend strength, and trader activity. But these should be used with price and volume. Then it becomes a powerful tool for smarter trading decisions.

Using this can help you build better strategies, irrespective of your position. This will offer profitable outcomes and will help limit the losses.

So, are you ready to put your market knowledge to work? Start trading with confidence on Pocketful, a platform built for smart, informed investors like you.

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Frequently Asked Questions (FAQs)

Can open interest help identify market manipulation?
Yes, unusual spikes in open interest without major price movement can sometimes indicate speculative activity or attempts to trap retail traders. Always confirm with volume and broader market trends.
How does open interest affect option premiums?
High open interest can increase liquidity. This often results in tighter bid-ask spreads and fairer premiums. However, premiums are more directly affected by implied volatility and time to expiry.
Is open interest relevant for intraday traders?
While open interest updates at the end of the day, some platforms provide live estimates. For intraday traders, it’s more useful to track trends over a few days than for real-time entries.
What does negative change in open interest mean?
A negative change means contracts are being closed. This could be due to profit booking, reduced interest, or traders waiting for a clearer direction. It is neither bullish nor bearish on its own.
Should retail traders follow open interest data of FIIs and DIIs?
Yes, tracking how institutional investors are building or reducing positions using open interest can offer useful clues. Their activity often sets the tone for broader market movements.

September 17, 2025

Best Education Loan in India

In today’s world, education plays an important role in shaping the country’s future. Higher education plays an important role in creating a skilled workforce for the economy. However, with the rising cost of such education, it becomes difficult for a student to opt for higher studies. Therefore, to cater for this problem, banks and NBFCs offer “Education Loan” to them so that they can pursue their higher education without worry.

In today’s blog post, we will give you an overview of the best education loan, along with the documents required to apply for the same.

Meaning of Education Loan

An Education Loan, also known as a student loan, is generally taken out for students who wish to pursue higher education in India or another country. It covers all charges paid during the tenure of education, such as tuition fees, accommodation, travel, etc. Once the student completes his/her education and gets employed, he/she can start repaying the loans.

Features of an Education Loan

The salient features of education loans are as follows:

Lower Interest Rate: The interest rate on education loans is typically lower when compared to other loans such as personal loans.
Tax Deduction: One can claim the benefit of tax under section 80E of the Income Tax regarding the payment of interest on a loan.
Financial Help: Parents who cannot afford to give their child higher education can opt for monetary support in the form of an education loan.
Repayment Duration: The education loan can be repaid over time, so it does not significantly impact cash flow.

Best Education Loan in India 2025

The best education loans in India for 2025 are as follows:

Bank	Loan Amount	Interest Rate (p.a.)	Collateral Required	Courses Covered	Key Features
SBI – Global Ed-Vantage	Up to ₹1.5 Cr	From 9.15%	Above ₹7.5 lakh	India & Abroad	No processing fee (India), girl student concession, long tenure
Bank of Baroda Scholar	Up to ₹1.5 Cr (abroad)	From 9.20%	Above ₹20 lakh	India & Abroad	100% expense coverage, interest subsidy
PNB – Udaan / Saraswati	Up to ₹1 Cr	From 9.25%	Above ₹7.5 lakh	India & Abroad	Multiple schemes, no margin up to ₹7.5 lakh
ICICI Bank iSMART	Up to ₹3 Cr	From 10.25%	Required above ₹50 lakhs	India & Abroad	Pre-visa disbursal, fast-track approval
HDFC Credila	No fixed upper limit (with collateral)	From 9.95%	Mandatory (profile-based)	India & Abroad	Custom loans, pre-visa disbursal, flexible repayment

Overview of Best Education Loan in India 2025

The overview of the best education loans in India 2025 is as follows:

1. SBI

SBI is India’s largest public sector bank in India. It offers Global Ed-Vantage as an education loan to the public through which one can cover the cost of domestic and mainly for overseas studies. It offers a low interest rate, with no processing fees for studies in India.

2. Bank of Baroda

This is a public sector bank offering “Baroda Scholar” which gives an education loan at no processing fees. It offers a competitive interest rate for higher education.

3. PNB

PNB is one of the oldest public sector banks in India, and offers “PNB Udaan” to Indian students, allowing them to take a loan to complete their higher education. The loans are available for various courses such as graduation, post-graduation and professional courses.

4. ICICI Bank

This is one of the leading private sector banks. ICICI Bank offers online processing of education loans, with flexible duration for both domestic and international students. It also offers pre-visa disbursal of loan.

5. HDFC Bank

HDFC Bank is the largest private sector bank in India. It operates a dedicated education loan NBFC under its name, “HDFC Credila”. It offers a zero collateral loan facility to top students.

Eligibility Criteria for an Education Loan

The eligibility criteria for an education loan are as follows:

Nationality: The applicant for the education loan must be an Indian. However, in some cases, it can either be a non-resident individual or a person of Indian origin.
Age: The applicant’s age generally can vary from 16 to 40 years. But there are a few government schemes in which there is no age bar.
Co-Applicant: Generally, in case of a full-time course co-applicant or a joint holder is mandatory.
Collateral: There are certain asset such as residential and commercial properties, fixed deposits, etc., which needs to be kept with the loan companies.
Admission: The applicant must have a secured admission to a recognized institute or university in India or abroad.

Expenses Covered Under Education Loans in India

The list of expenses covered under the education loans is as follows:

Tuition Fees: The tuition fees charged by the educational institute are covered under the educational loan.
Accommodation: The hostel fees or rent paid by the student for off-campus accommodation are covered under the educational loan.
Examination Fees: The fees payable to the college regarding the exam are covered under the educational loan.
Travelling: In case of foreign studies, the amount payable toward the cost of travel from a foreign country is covered under the education loan.
Project Work / Thesis Expenses: The cost related to completing the project is covered under the education loan.
Library and Lab Fees: Certain colleges levy fees to use the library and laboratory, which are covered under the education loan.
Other reasonable expenses: Some banks cover student life insurance, if opted. Other expenses like Fund Expenses, Stationery, equipment expenses are also borne by banks.

You can even use Education Loan EMI Calculator

Documents Required for Education Loan

The documents which are required to take an education loan are as follows:

An admission letter was received from the educational institute where one is looking to take admission.
Marksheets of previous classes. Generally, higher secondary and senior higher secondary marksheets are preferred.
Address Proof
Identity Proof
Age Proof in case of a minor child.
Salary slip of the applicant or co-applicant to verify the income sources.
Bank statements to verify the salary.
Income tax returns of previous years, so that the income can be verified.
Loan Application form.
Visa and Passport if applied for foreign education.
Passport-size photos.
Additional documents for studying abroad.

Advantages of an Education Loan

The significant advantages of education loans are as follows:

Access to higher education: It enables a student to get higher education from various reputed colleges in India and abroad for under-graduation , post-graduation, vocational studies, skill development courses
Tax Benefit: The interest paid of education loans is eligible for tax deduction under section 80E of Income Tax upto 8 years.
Repayment: The repayment of loans can be started after 6-12 months once the course is completed or after getting a job, whichever is earlier. Loan tenure ranges from 5-15 years.
No Financial Burden: Taking an education loan generally does not create any financial burden on the family for the higher education of a child.

Conclusion

On a concluding note, opting for an education loan for higher education is a crucial step towards building your future. There are various banks and NBFCs offering such loans, but one should do a deep comparison before opting for an education loan. Taking education loans comes with a tax benefit on the amount of interest paid under section 80E of the Income Tax. However, it is advisable to consult your investment advisor before opting for an education loan.

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Frequently Asked Questions (FAQs)

What is the moratorium period for an education loan?
A moratorium period, the waiting period is a duration of 6 to 12 months after completing the course or till the child gets a job; during this period, no EMI is required to be paid; however, the interest may accrue on it.
Is there any tax benefit on an education loan?
Yes, interest paid on an education loan is eligible for deduction under section 80E of the Income Tax Act, and it can be carried forward up to 8 years.
What types of expenses are covered under an education loan?
Almost all kinds of educational expenses are covered under an education loan, suc
Is having a co-applicant mandatory for an education loan?
Yes, a co-applicant is mandatory while taking an education loan; generally it can be a parent, guardian, or spouse.

September 17, 2025

Category: Personal Finance

What Is Loan-to-Value (LTV) Ratio in Margin Trading?

What is the Loan-to-Value (LTV) Ratio

What is the formula for LTV?

What is the role of LTV in margin trading?

How does the broker decide LTV?

Why is Loan-to-Value Ratio so important in trading?

1. Increasing LTV poses a risk of margin call

2. It also affects interest rates

3. Higher LTV means more leverage and more risk

4. Understanding LTV is essential for successful trading

Factors That Influence LTV in Margin Accounts

Common Mistakes Investors Make Around LTV

How to Manage and Control Your LTV Ratio

Conclusion

Frequently Asked Questions (FAQs)

What is the full form of LTV in margin trading?

What happens if my LTV ratio increases too much?

Is a lower LTV always better?

How can I reduce my LTV ratio?

Does every broker offer the same LTV limit?

Top 20 Basic Stock Market Terminology for Beginners

Basic Stock Market Terminology

1. Share or Stock

2. Bid and Ask Price

3. Broker

4. Trading Volume

5. Liquidity

6. Volatility

7. Market Capitalisation

8. Initial Public Offering (IPO)

9. Stock Split

10. Blue-chip Stock

11. Market and Limit Orders

12. Bull and Bear Market

13. Dividend

14. Index

15. Stoploss

16. ETF

17. Demat and Trading Account

18. Market Capitalisation

19. Portfolio

20. Capital Gain

Conclusion

Frequently Asked Questions (FAQs)

What is the difference between a demat and a trading account?

Do I need to pay taxes on the profit earned from the stock market?

What is the formula to calculate market capitalisation?

When does the bear market phase start?

What is the meaning of IPO?

Surat Prop Trading Scam ₹150 Cr Fraud Unfolds

Background: How the Surat Prop Trading Scam Started

How the Scam Operated: Inside the Prop Funding Trap

The Timeline : Surat Prop Trading Scam

The role of the main accused and the companies

Main Firm: Green Wall Enterprise (also known as “Greenvol Enterprises”) :

Broking Firm Name: Jainam Broking Ltd :

Agent/Sub-broker Network and Investors :

Investigation and Regulatory Action

Impacted Traders and Industry Reactions

Why Such Scams Keep Happening in India

Conclusion

Frequently Answered Questions (FAQs)

What is the Surat Prop Trading Scam?

Which company is involved in this scam?

How much loss has been reported?

What action is taken by the police?

How can traders stay safe?

Is prop trading regulated in India?

Freedom 251 Scam Explained: The Truth Behind India’s Cheapest Smartphone Fraud

What is Freedom 251 Scam?

How the Freedom Mobile 251 Was Marketed

Controversies and Scam Allegations

Aftermath of the Freedom 251 Bookings

Red Flags Before the Launch

Legal Troubles and Investigations

Arrest of the CEO and Closure

Lessons Learned from the Freedom 251 Scam

Conclusion

Frequently Asked Questions (FAQs)