What is gold loan? 5 points that explain how it works

Gold loans have become one of the most popular types of loans. Getting a gold loan is simple and flexible as well in terms of repayment tenure, gold loan interest rate, interest rate calculation, principal repayment etc. Some lenders also disburse funds immediately after the gold is pledged with them.
Here are 5 points that explain how a gold loan works:

1. Secured loan:
A gold loan in India is a secured loan. This means that the gold has to be deposited with the lender. The lender has to keep this gold safe and secure under lock and key. The gold is returned to the borrower once the loan is fully repaid.

2. Amount of loan and rate of interest:
The amount of gold loan depends on the value of the gold that the borrower brings. Most lenders independently test the gold to find out the purity of the gold i.e 18 karat, 22 karat, 24 karat. Some lenders may only lend for gold of a particular purity level while others accept all types of gold. The loan amount is usually a percentage of the value of the gold. This percentage can range between 60% to 75%.

The gold loan interest rate depends on the lender but ranges between 10% to 20%.

3. Short tenure:
Gold loans typically are given for short tenures that may last up to 12 months. It is advisable to take gold loans only if you can repay the loan on time. In case the loan can’t be repaid, the lender will auction the gold to recover the loan amount. 

4. Prepayment:
Most lenders allow the borrower to prepay gold loans without any extra charges. Unlike other loans like personal loans which come with prepayment charges, gold loans can be repaid at any time after they have been disbursed. Once the loan is paid off in full, the secured gold is released.

However, not every lender will have the same repayment terms. It is important to go through the repayment terms. Some lenders may allow principal repayment at the end of the tenure while others may allow EMI type structured payments

5. Documentation:
Gold loans do not require many documents. Since it is a secured loan, the only documents required by lenders are PAN card copy, address proof, identity proof of the borrower.

Before you apply for a gold loan, you can use a gold loan calculator to find out the amount of loan that you will get when you put up gold of a particular purity.  Gold loans are convenient to opt for where funds can be disbursed on the same day.

Want to send money instantly? These are its 3 advantages

Sending money to a person is no longer the time consuming process that it was earlier. With the revolution in digital banking, using cheques to transfer money has become obsolete. There are many different ways to transfer money online these days with some modes transferring funds instantly from one account to the other. These are the different ways how to transfer money online:

• National Electronic Fund Transfer (NEFT):
Under NEFT, transfers are executed electronically within a couple of hours. For NEFT, the beneficiary has to be added to the bank’s authorized third party transfer list. NEFT transactions are settled by banks at intervals of time which means if the transaction is authorized by the customer, it is in queue till the next settlement period.

• Real Time Gross Settlement (RTGS):
RTGS transactions are settled by the RBI. These transactions are settled immediately and on one to one basis. A minimum amount of Rs. 2,00,000 per transaction is required for RTGS.

• Unified Payments Interface (UPI):
Under UPI, payment is made using the UPI ID of the person as compared to the bank details. UPI is processed using the IMPS network which means this transfer can be done 24*7.

• Immediate Payment Service (IMPS):
IMPS uses the mobile number of the customer to make a payment using the mobile number and a special ID. IMPS can be done 24*7.

These modes of fund transfer allow a customer to send money online instantly. Here are the advantages of this type of fund transfer:

1. Convenience and guarantee of payment:
One of the best advantages of sending money online is the convenience that it offers. The administrative work involved with paying via cash or cheque is completely eliminated because of online payments. Instant online payments also almost always get credited to the recipient’s bank account immediately, thus providing a guarantee of payment.

2. Secure:
Online payments are a secure way of making payments. Modes like RTGS are backed by the RBI. Most fund transfers are initiated after double checks from the customer, thus ensuring that the transaction can be cancelled. However, transactions like RTGS, UPI and IMPS instantly debit the bank account which is why the user should exercise caution about the accounts the funds are transferred to.

3. Economical:
One of the reasons to send money online instantly is the low costs. At the moment, UPI transactions are free of cost. NEFT and RTGS transactions depend on the value of the transaction but range between Rs. 5 and Rs. 50 per transaction. IMPS charges range between Rs. 2.5 to Rs. 15 per transaction. These charges are nominal as compared to the convenience offered of instant fund transfer.

6 Important Tips Before Travelling Abroad

At a certain point of life, we save money to ensure that we take that vacation outside India. That experience is something most of us cherish until the end of our lives. However, there are some things you need to consider before travelling abroad. We list six tips you should consider before travelling abroad and how travel guide apps can help with that:

1. Registration and Documents
 Register with your embassy and Share your tour plan with them. They can contact you in case of emergency do need full. You should also leave one copy of the passport at home; they will come in handy in case you lose your original passport. You can also make an electronic copy and save it in your mailbox. There are several apps for travel which allows you to store a digital copy of the passport. It will help you to prove your citizenship in case of emergency.

2. Vital Gadgets
Keep chargers and adapters of every gadget that you are taking abroad. Ensure that you are aware of the various plug points available in the country you plan on visiting. Also, ensure that you have international roaming so you can make uninterrupted calls. Or use the hotel WiFi to make calls on social media apps such as WhatsApp or Skype

3. Monetary Conversion and Credit Cards
Study the money conversion rates and make sure that you compare your currency to the place you are visiting. Then plan your budget accordingly. Check if your credit card is acceptable at the place you visit. Always carry local currency of the place you are visiting because everybody will not accept credit card for payment.

4. Research on Location
Check the weather conditions of the place you are visiting and pack your clothes accordingly. Also, do some basic research on sites you are visiting and make a rough budget of your spending. You can take help of various travel guide apps to plan your trip.

5. Accessible Luggage
You will find an extra layer of security at international airports. You should know what to carry on board your flight and pack your luggage accordingly. Light baggage will make your trip hassle-free. You can also refer to travel guide apps for details. 

6. Health and Medication
Before your foreign journey, make sure that you have consulted your doctor and taken vaccinations, if required. It is advisable to go through a complete body check-up. Furthermore, if you are on a specific medication, ensure that you have enough on you, as getting medicines abroad may require a prescription from a local doctor. Also carry antibiotics and digestion pills.

Planning to take an education loan? Consider these 5 tips

An education loan is a type of loan given by lenders to meet the cost of education. This may be for school education or for college education i.e both for undergraduate and postgraduate studies. Loans can be availed for studies to be done both in India and abroad. Education loans are given by most of the banks and NBFCs. This loan is directly paid by the lender to the educational institution.
If you’re planning to take an education loan for yourself or your children, consider these 5 tips:

1. Education loan eligibility:
Education loans can be availed by the student. This loan is usually taken jointly by the child along with the parents. The most important precondition for education loans is that the student should be enrolled in the course of his choice, whether it is in an Indian college or a college abroad, or a school. The loan applicant should also be an Indian citizen. The amount of the education loan depends on the course fees and the income of the co-applicants.

2. Tax deduction:
It is possible to get a deduction on the interest paid on an education loan under Section 80E of the Income Tax Act. This deduction has no specified limit which means the actual amount paid as interest can be claimed as a deduction. This deduction can be claimed for eight years.

3. Education loan interest rate:
The rate of interest on the education loan depends on the lender and also on the loan amount. The education loan interest rate also changes depending on whether the loan is for education in India or education abroad. Some banks may give concessional rates of interest for women. There are different Central Government interest concession schemes that can help a student to reduce the rate of interest.

4. Education loan repayment:
Most education loans have a moratorium, which means the repayments do not begin until a specified period after the course commences. This is to reduce the repayment burden on the borrower student. Once the moratorium period ends, the repayment of the loan begins through periodic EMIs.

5. Education loan procedure:
Applying for an education loan is very simple. One needs to collect the form for an education loan and fill it up and submit it to the bank with the relevant documents. Some of the documents required for an education loan are:

• Proof of admission in educational institution
• Estimate of costs. Some lenders may only cover tuition costs while others cover stay and other expenses as well
• Identity proof documents (PAN, Aadhar Card, Passport, Driving Licence, VoterID)
• Address proof (Aadhar Card, Passport, Driving Licence, Voter ID)
• Income proof (Income tax returns, bank statements)

You can also read on how to get an educational loan on the different bank websites online.

Planning to shop online? Here are 5 benefits of doing so:

With the advent of e-commerce, smart phones, and digital transactions, shopping online has become easier than ever. There is now no need to physically visit a store, try and check the products and then purchase them; all of it can be done in a matter of a few clicks.

But, several people restrict themselves from shopping online. Some people may not know how to shop or may doubt the genuineness of the products. However, online shopping is an excellent way of getting the products you want at your fingertips and pay for it using an easy money transfer app. If you’ve been on the fence about shopping online, here are some benefits and reasons for you to make a leap and order from different e-commerce stores.

Here are 5 benefits of shopping online:

1. Convenience:
In our busy lives, online shopping provides unparallelled convenience. It is possible to get a whole range of products at the tip of your fingertips. While some e-commerce sites are specialized, others are broad marketplaces that provide a wide range of products. These products once ordered are delivered to the address the user provides, making it convenient to even order for other people.

2. Price comparisons:
A traditional shopping experience is to visit different stores, take a stock of the price of different items and buy the one which provides the highest quality at the best rate. However, all of this can easily be done via online shopping, especially when it comes to consumer durable products. Online shopping marketplaces provide unbiased price comparisons for different brands.

3. Take advantage of low prices:
Online marketplaces provide deep discounts to their customers. Sometimes, special discounts are provided to regular users. Sometimes the prices offered online are lesser than the prices in offline stores, which provides a lot of savings.

4. Avail cashback or card points:
Many international money transfer apps, credit cards and debit cards have tie ups with online shopping sites to provide cashback or card points. Some credit cards earn card points or airline miles depending on the amount spent. By spending for online shopping, it is possible to take advantage of these offers which can benefit in another area in the future.

5. Ease of payments:
Online shopping doesn’t necessarily mean card payments. There are different modes such as credit or debit card payment, wallet payments, internet banking, UPI, EMI payment for high value items, and offline cash on delivery system. It is possible to choose your mode of payment separately for each order.

Top 10 Helpful Apps while Travelling Alone

Solo trips are fun provided, you plan well and ensure you are well-versed with the dos and don’ts of travelling alone. One constant companion on these trips is your smartphone, which you use to take pictures that are shared on social media platform. Also, most travel apps are built keeping smartphone technology in mind.

We list six travel apps to consider in 2019 that will add to the memories you will bring back with you on these holidays:

1. Google Trips
The most significant advantage of this travel app is that you can access saved information offline. Google Trips organises your travel information at one place and synchronise Gmail to keep you updated with online tickets and last-minute changes in the schedule of flights and trains among others

2. TripAdvisor
This travel app allows you to search places based on your interest and budget. You have the option of reading visitor reviews that give you an unbiased opinion of a place you may want to book. 

3. MakeMyTrip
MakeMyTrip is a one-stop shop for booking flight tickets, buses or train tickets, as well as hotel rooms. The interface is user-friendly, and it is one of the most popular trip-planning apps in India.   

4. Oyo Rooms
This app is perfect for travelers who are looking for low-cost accommodation. This app is operational across more than 500 cities across the world. They provide essential amenities at affordable rates.

5. Cleartrip
Cleartrip is a tour-planning app where you can browse for weekend hangout places near your location. The app also facilitates ticket bookings for flight, trains and buses. You can select hotels in sync with your reservations and make the payments as well.

6. Google Maps
If you are using an Android OS on your handset, the google map is available in all phones. For iOS and Windows-enabled phones, you need to install this app. Google Maps are one of the best travel apps for navigation across the world as it reduces the dependency on printed sheets. 

Want to apply for car loan? Here are 5 ways to increase the eligibility

A car loan is one of the most popular loans that lenders give out. It is very easy to get a car loan to buy the car of your choice. However, each lender has their own eligibility criteria to give out a car loan. Before applying for a car loan, it is best to check out the lender’s eligibility criteria and select such a loan that will fulfil all your requirements.

Some of the common car loan eligibility criteria that a lender looks at for every car loan application are:

• Age of the loan applicant
• Monthly income
• Existing loans or EMI obligations
• Credit score
• Minimum tenure of employment/self-employment
• Minimum period of stay in a particular city

Even if a person meets the minimum age or the minimum income requirements, a loan may get rejected or a lower amount may be sanctioned. Here are 5 ways to increase eligibility of a car loan.

1. Reduce existing debt:
Most lenders consider the existing debt that the loan applicant has to service before approving a loan application. One of the ways to strengthen your loan application is to reduce your debt especially all types of unsecured debt. Unsecured debt such as personal loans or credit card debt are a big  red flag for lenders. Reducing or paying off this debt will give additional comfort to the lender.

2. Improve credit score:
A credit score is an indication of the person’s repayment history and capability. A credit score above 700 is considered to be good by lenders. Repaying debt, not making too many loan applications will help to improve your credit score. The car loan interest rate depends on the credit score.

3. Joint loan application:
Jointly applying for the loan with a co-applicant who has higher income or a better credit score can improve your chances of getting a car loan.

4. Consider pre-approved loans:
Lenders may pre-approve loans for customers that have a long banking relationship with them. By opting for pre-approved loans, you can improve your car loan eligibility.

5. Suitable loan tenure:
By choosing a loan tenure that does not inflate your EMI, you can improve your loan eligibility. If the EMI does not eat up too much of your income, it can get approved faster. You can decide a suitable loan tenure by using a car loan EMI calculator which will tell you the EMI for different tenures. Using a car EMI calculator is very simple and it returns results immediately based on the principal amount, the rate of interest and the loan tenure.