NRI Banking: Key aspects of the account and the benefits you can gain from it

The NRI banking accounts are one aspect of the Indian banking system that is useful for NRI’s and OCI’s living or travelling all over the world. For those who are looking to invest back in their home country and yet remain flexible with their foreign funds, the NRI accounts can be a handy vehicle.

Given below are some of the key aspects of the NRI accounts and the benefits you can get from it:

Status when opening the account: When it comes to opening the NRI accounts, there is one major prerequisite for the application. An NRI or OCI status is required to be qualified to open this account. To be applicable for either status, you need to satisfy certain criteria as per the government’s requirements. You can always check the government’s website to know more about this pre – requisites.

Bank selection: There are plenty of banks that cater to the NRI needs while providing global services. As an NRI, you can always opt for an NRI banking account or service based on your personal or geographical preferences. If you need to compare the different options, rates or even offerings, you can always check their online website or call their representative to know more. However, ensure that the bank you have opted for is authorized by the Reserve Bank of India for NRI accounts.

Account type: One of the many benefits of the NRI banking is the different account types offered to NRIs. These different accounts cater to different needs while offering different features and rates. Most of the major banks provide plenty of information pertaining to the account and how it will match your financial requirements, along with the country you are residing in. You can always check out the different schemes available to the NRI’s on the official RBI website.

Account application:Traditionally, you would be required to approach the bank and fill out a form in order to open an account. However, keeping in mind the requirements of applicants who have settled or travelling abroad, major banks are now offering online applications. You can easily get the complete list of documentation requirements on the website apart from the account rates and banking rules. At times, there is an online account calculator that will help you calculate the ideal outcome you would want with adjustable rates.

The benefits of NRI banking account includes:

• Convenience: Your NRI account would provide access to the banking system, depending upon your local or foreign needs. This means that you can make a quick transfer of funds or exchange of currencies when required.

• Time saving: You can easily access your funds online. Now you don’t need to run to the bank before closing hours or even before the weekend.

• Interest: Most major NRI bank accounts allows the functionality to compare interest rates and potential earnings between home and abroad.

FCNR (B): All you need to know

While the financial market is known for its volatile trends and conditions, one of the upcoming trends that have captivated investors is the FCNR (B) schemes.  The FCNR (B) was a three-year foreign currency deposit scheme, which was held by Indian banks, sourced from NRIs in 2013. It was set to mature between back then and December 2016. While the RBI has taken the necessary precautions and steps to prevent a volatile outcome, there is a concern that the outflow could lead to an increase in demand for dollars. This, in turn, may lead to rupee unpredictability.

What is the FCNR (B) scheme?

During the financial year of 2013, the value of INR had dropped down to an all – time low of 68.85 Rs. against the USD. To bring about stability in theshaky, exchange rate, the RBI initiated a ‘swap programme’, which encouraged banks to attract sizeable dollar inflows in the form of the Foreign Currency Non-Resident (Bank) deposits.As a part of this programme, banks were encouraged to convince their NRI clients to deposit surplus USD at a fixed interest. At the same time, the RBI promised to shield banks from the exchange rate risk. On receiving the USD deposit in 2013, banks were allowed to switch these funds with RBI for a period of three years. At the same time, they would be required to pay a fixed cost of 3.5 % per annum. An amount of $26 billion was raised from the FCNR deposits to the RBI, in order to receive the rupee equivalent under this scheme.

What happened in the process?

Assuming that Rs. 60 per dollar was the exchange rate that was fixed for the swap agreement, an amount of Rs. 1, 56,000 crore would be given to the banks by the RBI. However, this would only happen after receiving the $26 billion from them under the swap agreement. After the three year period was fulfilled, banks have an obligation to swap back the sum that has tobe raised with the RBI. In turn, the central bank will provide the dollars needed for banks to repay their NRI depositors.

Why is it important for you as an investor?

In reality, the redemption amount of $26 billion, would be an enormous outflow of foreign currency. At the same time, the RBI has a build an immense reserve of approximately $367 billion, while bringing forward contracts on the USD to repay the banks. However, if the parties who have already sold these forward dollars to the RBI are unable to afford the payments, they will be required to step into the open market to purchase dollars. This in turn may spark an unpredictable volatility in the currency markets sooner or later. At the same time, the sudden outflow of capital from India could also restrict the domestic market liquidity during a short period.

Conclusion: If you were an NRI lucky enough to invest in the FCNR (B) deposits, you would have earned a comfortable ROI, especially with the strengthening of the dollar against the rupee. However, if you have had any foreign obligations, in the later part of the year, you might face a slightly weaker rupee value.

5 mistakes to avoid when making an international money transfer

For many individuals, making a money transfer has become a necessity, if not a part of their daily habits. Such individuals send money from one location to another for various purposes such as sending money back home, making a purchase or a donation amongst many others. While there are several vehicles that facilitate this transfer, one of the most popular options is the telegraphic transfer. While this may be one of the most effective, quick and cheap ways to send funds, any mistake you make will cost your time and money.

Given below are a few mistakes to avoid when you want to make an international money transfer through this vehicle:

Getting the account details wrong: As a part of the telegraphic transfer process, you will need both the sender and the receiver’s bank account and routeing numbers. However, at times, these details aren’t always straightforward. These factors, which together identify the bank accounts on either end of the transfer, had different formats that vary by country. A simple transposition of the account or routeing number can lead to wrong account details being provided.

Not converting dollars to the local foreign currency: When making an international transfer, you normally will start with your local currency while expecting the right currency to arrive at the receiver’s bank account. However, you must take into consideration the current conditions when the currency conversion occurs. If you skip converting the currency at your end, the transfer can be rejected. Alternatively, the receiver’s bank may convert the funds at a higher exchange rate or for a higher fee. This can not only lead to a delivery delay but also a reduction in the amount that is being said.

Looking only at straight fees: There are only two costings when it comes to international money transfers. One of the main costings is the service fee providers that is charged for sending fund. The second costing is the amount you normally pay for conversion charges. These costing will depend on the lending institute you are sending the funds too, and the foreign exchange rate between the two currencies. If you can, do check the approximate transfer rates before you make the transfer.

Failure to compare different transfer providers: There are plenty of transfer provider services in the market that offer different yet competitive rates. In other words, you will have plenty of choices in terms of different exchange rates and fees. While it may seem like a waste of time to shop around, it will give you an idea of how much you are spending on your transfers and how much you can save if you switch to a cheaper service.

Failure to check the estimated time of delivery:Not all transfers possess the same speed overseas. NBFC’s often provide several choices of payment methods with different delivery options that can affect the speed of the transfer. For example, you can pay with a banking card to speed up the delivery, and yet face an expensive cost for that. Being aware of the available options in terms of providers, cost and delivery will help you send funds the best way that suits you.

What are the common costings you should be aware of when remitting to India?

Plenty of individuals uses money transfer services to send funds from one country or one location to another. While the reason for these transfers may vary, some of them include financing one’s education, facilitating the maintenance of retired family members amongst many others.

However, when it comes to choosing the option to remit to India, there are several factors you need to take into consideration. These factors will play an important decisive factor when it comes to selecting the vehicle to make your transfer. Amongst the factors that will influence your decision, is the costing.

Ask any individual who regularly sends funds, and they will tell how tricky it is to calculate funds. Depending on your option to send funds, the fees, charges, and margins are not completely obvious. This can leave you with an immense bill at the end of the transfer, or the excessive funding will be required to be taken on by the receiver.

In order to be aware of the amount of funds you will be spending on a money transfer, there are certain common charges you should be aware of. They include:

• Transfer fee: This is one of the most basic fees for all money transfer services. This is also known as the TT or telegraphic transfer, wire or remittance fee. Normally, this fee is fixed but differs based on the lending institute.

• Exchange rate margin: It is understandable that most money transfer services aim to make some profit in order to run their services. This is normally due when your local currency in converted into the intended foreign currency, with an added amount known as the margin rate. This is basically the difference between the wholesale exchange rate and the rate in the market.

• Corresponded bank fees:This is the fee that the sender’s bank will charge, for sending funds to the right bank or NBFC account. Normally, this is deducted from the amount that is deposited in the receiver’s account. While it may be impossible to estimate or reverse, you can always approach the sender’s institute to get more details about it.

• Receiving bank fees: If you are planning to deposit foreign currency into an account, then the receiving bank will charge you for it. For example, if you are sending INR to a Dubai bank, the Dubai bank will charge you a fee to convert it.

Using this information, you can now easily remit to India with ease.It is crucial that you are aware of the different costing factors that occurs when you want to remit to India. Not only does it allow you to calculate the funds you will need to transfer, but it will also help you reduce and avoid any unwanted expenditures.

Send money to India: What are the best options?

Whether you are a long-term NRI residing abroad, or even a professional person residing abroad for a short duration, at some point in your life, you will be required to send funds back home. You may be sending funds for various reasons, ranging from home expenditures, family maintenance or purchase of monthly items amongst many other reasons.

But while the reasons may vary from individual to individual, there also comes a choice when it comes to considering the best option to make a money transfer to India. Listed are the different options you can consider, as an NRI to send money to India:

Money transfer companies: There are plenty of money transfer companies that offer a variety of money transfer services, which is also inclusive of options to transfer money back home. Most of the services focus on a secure, fast and inexpensive mean to send money to India. It also comes with several other benefits, such as beneficial exchange rates, lower transfer fees and an excellent customer service.

Wire Transfer: Wire transfers are very common, especially for international money transfers and US banks. With a wire transfer, you can directly transfer funds from any foreign bank account, which normally takes a take a few days. Wire transfer services can vary from bank to bank, so you will need to compare the different bank offers before selecting the one that suits your financial needs.

NRI accounts: Over the last few years, NRI accounts have slowly become one option to make a money transfer to India. But to make a money transfer, you will first need to open the NRE account. Through this account, you can deposit your foreign funds and transfer it back home through an authorised recipient back in India. This authorised individual can then withdraw funds in Indian rupees. Normally, this transaction will take around a few days to a week, and is normally non – taxable.

Personal checks: You can make a personal check to the recipient who can then deposit it in the bank account back home. However, you will need first to check if your bank accepts foreign checks. Additionally, you will need to check if there is a verification process to clear the deposit. The recipient may may also have to pay a few funds to cash the check.

Bank Draft in Indian Rupees: Selected Indian banks provide a facility where bank drafts can be made in Indian currency. This can be cashed instantly in India. Some of the bank drafts are also free if they surpass a certain amount, for example, Rs. 50,000, whereas any lower amount will attract a small charge.

Becoming an NRI: Converting your resident account into an NRO account

Plenty of Indian residents is now grabbing opportunities to travel, study or work abroad. Surely, this would be a big step to take, with several changes taking place during this transition. From the several changes that take place, one of the many changes you will need to undertake is your banking account. For one, you need to change your account from a resident account to a Non-Resident (Ordinary)account.

This account can be opened with funds that are remitted from abroad, or that is generated in India. Additionally, there are certain restrictions on the repatriation of the foreign proceeds. For example, only an amount of 1 million USD can be remitted in a single financial year. The income that is also earned in this account is taxable and is subjected to income, wealth and gift taxation. However, this account can be held jointly with another Indian resident or another NRI providing a more flexible usage of the account.

So far, the NRO account has been a popular choice for those who are looking to convert their resident account into NRI account. Here is how you can convert your existing account into this NRI account:

Form: Most of the major banks provide a specific form for the conversion of an existing savings account to the NRO account. This form can be easily obtained from the closest bank branch or even from the bank website. All the holders of the account will be required to sign the form. Most banks allow one filled form to be used to convert all the savings account held by the same customer.

Documents: Along with the conversion request form, a new account opening form will also need to be furnished. In this form, you will need to provide proof of your overseas address. You will also need to provide a copy of your passport, valid visa or work permit. If you have your PIO card, you may need to submit a copy of it.

Funding: All the NRI accounts must have a minimum amount of Rs. 75,000 on a monthly average. If the account in question possesses a zero balance before being converted, it will be needed to be funded until it meets the minimum balance.

Submission: The documents will be required to be submitted to the bank branch you would want to open the account in. In the event the customer is already outside the country, the form and the relevant documents needs to be attested by the Indian embassy and sent to the required bank branch.

Re-designation: Once the relevant form and documents have been received and verified by the bank, the account is then re – designated as an NRO account. While this may not change the bank account number, it will be flagged as NRO account in all banks records.

After the form and documents have been received and verified by the bank, the savings account is re-designated as an NRO account. Re-designation may not change the account number, but it may be flagged off as NRO account in bank records.

NRI accounts and taxations: Taxation rules that you should be aware of

As an NRI who is planning to invest in an NRI account, there are plenty of options available. However, at the same time, there are plenty of factors you need to keep in mind, one of which includes the taxation.
Here are a few rules you will need to keep in mind when it comes to the NRI accounts and taxations:

• If you have an NRI account that accrues income, you will need to pay an income tax on it. Therefore, if you have an NRO account that is used for income earned in India such as salary, rental income, interest income from FDs or capital gains on assets sold in India, it will be taxed. However, if the income of an NRI is more than the basic exemption limit for the year, then you can file your returns in India. You can also claim tax refunds or carry forward your losses by filing these returns.

• If you are an NRI who is returning to India permanently after spending considerable years abroad, the foreign income you earn will not come taxable in India immediately. In this case, if you have been a non – resident for a period of nine consecutive years, you will remain a resident but not an ordinarily resident (RNOR). This is a transitional status which not only defines your status to a fully fledged resident but also for tax purposes. Until you become a resident, which normally takes around two years, the foreign income that is earned will not be taxed, unless it is from a business or profession based in India.

• If you have fixed deposit NRI account, you are liable to pay TDS. However, TDF will not be deducted at a higher rate if you can provide alternative documents without your PAN 

• In you return to India and get the status of an Ordinary Resident Indian for a particular year, then you will be accountable to disclose all your foreign assets and foreign income in your tax returns. If you fail to do so, there are stringent penalties you will be liable to pay, as per the Undisclosed Foreign Income and Assets Bill of 2015, for not doing so. Therefore, such an income will not be taxed under the normal IT Act but rather under the provision of this new legislation on accounted funds.

• As an NRI, you cannot open a public provident fund account. However, if you already have a PPF account before becoming an NRI, you can continue to use and operate the account, until it reaches the period of maturity. Once this period is met, you will have the option to remit the proceeds of the funds in the country of your residence, without extending the tenure of the account. In the event that you are unable to attend the account, it will be considered as "extended without contribution".

Quickremit: Making money transfers easier and faster

Money transfer is now become a necessity for the urban society. Plenty of individuals sends funds from one place or location to another for reasons such as payment of education, maintenance of retired parents or elderly folks amongst many others. And with several money transfer vehicles available in the market, one will be spoilt for choice.

But while the choices may be many, there remains the factor that you will spend a considerable amount of funds in your transfer. Can you risk that amount of funds, where you may end up paying double the amount just to get it transferred? Would you want to pay extra funds to transfer it fast in the occasion there is a financial emergency? What about convenience in the money transfer?

This is where quickremit service will prove to be beneficial. Here is how this service will give you the best value for your money:

• Good exchange rate: One of the main features that you must take into consideration when it comes to any money transfer is the exchange rate. While different companies may offer you different exchange rates, you must look out for that one that offers you the best deal, in correspondence to the amount you’re sending. Quickremit not only ensures that you get the best exchange rates but also ensures that you are aware of the current exchange rate values before you make the money transfer.

• Fees: While many money transfer services do claim a’ free charge’ service, they will charge you a small amount for your transfer. With these fees, you will be charged a service charge, transfer fee and exchange fee as the basic charges. Additional fees may be charged, depending on the discretion of the lending institute. However, you should be aware of these charges before you make the money transfer option, which is what quickremit does.

• Pick up methods: One of the main problems faced during a money transfer service is the drop and pick up method. This is often a cause for the problem, in remote places, where there is not bank or NBFC branch located. However, quickremit offers a doorstep delivery service which means, you can get the funds delivered directly to the recipient with ease. This works as an ideal alternative to being deposited directly into the account.

• Transfer times: Plenty of money transfer services offer different transfer times for a different price. Depending on how quickly you will need the funds delivered, you may have to choose between the services. However, with quickremit, you can get the funds delivered within 4 working days. You can even track the funds when it gets transferred.

• Customer service: No doubt, at some point in your transfer, you may need an update on your transfer or need someone to answer your queries. This is where the customer service will assist you. Quickremit’s reliable customer service department will ensure that all your doubts and queries are answered without causing you.

How to get the most of your investment in the NRE account

As an NRI, earning in foreign currencies offers plenty of financial benefits. However, these individuals also face a situation of maintaining a rupee account back home. This is normally the issue, when it comes to repatriating funds earned overseas or investing India based earnings in the country itself. In this case, there is an option of opening a NRI account, between the NRO and NRE account.

There are similarities between both accounts. For one, both accounts can be opened as savings as well as current account. Additionally, both can be held in Indian rupee accounts. At the same time, a minimum amount of Rs.. 75,000 must be maintained on a monthly average in both the accounts.

But while both accounts come under the same category, there are considerable differences between both accounts. For one, the NRE account tends to be more flexible as compared to the NRO account. Given below are the different features of the account of NRE and how you can make the most from investing in it:

Freely repatriable: As compared to the other NRI accounts, the NRE account is freely repatriable. This is applicable to both the principal amount as well as the interest that is earned in the account. Therefore, if you need to make any payments in your local country, you can always withdraw funds from the account for NRE.

Tax free treatment: One of the main drawbacks of investing in most investment options is the taxation. Depending on the investment vehicle and the amount that one would need to invest, the respective taxation amount will be calculated. In the long run, one would spend immense amount of funds just on taxation as opposed to saving. But one benefit offered by the NRE account is that it is taxation free. In other words, there is income tax, wealth tax or even gift tax applicable to the NRE account, which is applicable to the NRO account. Therefore, you can benefit from investing in this account, especially long term.

Deposit of rupee funds generated in India: The NRE account can only be used to invest funds that have been earned abroad. Therefore, any income, pension or even proceeds of any sale from abroad can be invested in this account. However, no income that is earned in India such as salary, dividends, or rent can be deposited in this account, but only in the NRO account. However, the funds from the NRO account can be transferred in the account for NRE.

Joint Holding: When it comes to joint holdings, the NRE account can be held jointly with another NRI. However, it cannot be held with another resident Indian.

From the above mentioned factors, you can see why the NRE account makes for the best investment option for any NRI.  This is especially beneficial for individuals who want to park their overseas earning remitted to India, especially if you want the funds to be converted into the Indian rupees. This is also beneficial for those who want to keep the funds liquid, especially if it wants to be freely repatriable.

The ideal NRI guide to purchasing a property in India

To a non – resident Indian, purchasing a property back home may seem like a perplexing step. The ever changing rules and methodology of making an investment will make any potential investor feel apprehensive about the outcome from such investments. Additionally, there are the different financial options to consider along with the taxation on the property as well as the financial option to consider. Given below are a few steps an NRI can refer to pertaining to property dealing within India:

Status of the individual: While the status of NRI may seem like a generic reference to individuals who are Indians who are not residing in India, it is classified only to a particular sector of non-residents. NRI’s are normally individuals who hold an Indian passport and are currently residing or have resided in another country for a consecutive of 180 days or more. In addition to this, there is anoverseas citizen of India (OCI’s). Depending on the status of the individual, the consecutive property options and financial options will differ.

Restrictions on the purchasable property: Not all types of properties are available for such individuals. Properties that are not agricultural, plantation or farmland property, are purchasable by such individuals.

Funding the purchase: NRI’s who hold an NRE, NRO or FCNR options are eligible to purchase the property. These individuals can also use NRI home loans to finance the purchase, by using these NRI accounts to repay back the borrowed funds. At the same time, an NRI can take advantage of the loan availability and tax benefits to save funds in the long run. Plenty of multinational banks has different schemes in place to provide home loans, which are subjected to the restrictions related to the country bound property purchase.

Power of Attorney (POA): NRI’s who do not have the capability or functionality to travel to India to facilitate the purchase of the property, can opt to issue a POA. A POA can be a close relative residing in India, who can purchase the property contract on his behalf while registering the same in his or her name. This mustbe done in the presence of a notary or consulate officer in the country of residence. The POA must further adjudicate the purchase within months from the date of assigning the power.

Repatriation of funds and tax implications: When the sale of the property takes place, the repatriation of funds takes place. This can be done through the NRI home loans through the NRI account. As per the Indian tax laws, any NRI that holds property in India is not liable to pay tax unless there is rental income that is accrued from it. However, if the property is sold, then the capital gains tax, depending on the short or long term. 

How to get the best credit card as your travel companion

Everyone has a dream to take a few weeks or months off to travel the world. No doubt, it would require plenty of expenditures and a lot of saving. Additionally, you will also have plenty of financial vehicles to choose from to assist you during your journey. Amongst the different options, the credit card is one such option.

All you need is the right card in your wallet with your travel plan. Given below are the step approach to make your travel dreams come true:

Start planning now: Whether you are planning your trip in the next month or the next 6 months, an advance plan will make a considerable difference to your overall expenditure. Begin by first planning your destination and the places you wish to visit. Next research about airline alliances that offer multi – leg bookings, along with lengthy layovers. Booking your flights through this process will be considerably less expensive and easy on your pockets. If you need to change your booking mid trip, you can do it for a small fee. 

Start saving now:You will face plenty of costs when you travel. You will also be giving up the income from whatever job you won’t be working during that time. Therefore, saving now is imperative. There are numerous ways you can reduce your costs every month ad yet save a substantial amount every month. If you have a budget, set it accordingly. If you don’t have one in plan right now, now is the perfect time to start.

Check Your Credit: This is also the perfect time to evaluate your credit. If it needs to be worked upon, now is the perfect time to improve it. A good credit, makes it easier to get a rewards credit card, which is the best credit card in India you can afford for your trip. Check for a free review of your credit score and update it every 14 days. Make a personalized plan to improve your credit scores if required.

Evaluate Your Credit Cards: Does your current credit cards earn you sufficient miles, cash back or other similar rewards? If it does not, it is a good idea to consider alternate options that will help you achieve your dream trip. Look for the best credit card in India that offers good travel rewards, redeemable miles or even new credit cards that offer sign up bonuses. You can also opt for offers that offer cash back on restaurants, gas station or other purchases.  Importantly, it will help you improve your credit if you manage it properly, allowing you to qualify for other credit cards with better rewards.

Evaluate Your Card As a Travel Companion: Once you have got a good reward credit card, along with sufficient savings, you are almost ready to go. Now you only need to ensure that your credit card is internationally supported. Confirm whether your card is well insured or that you are not required to pay international transactions fees anytime you use it. You can even check if the reward points collected on your card can be redeemed in an entry to airport lounges which can benefit you during delays.

What are the credit card offers you need to take advantage of with a bad credit score?

Not many are aware that the credit score plays an important role when it comes influencing your financial profile. For one, it affects your ability to borrow funds. Additionally, it also helps improve your credit score with the right usage. This is no different when applying and using a credit card.

But if you are planning to opt for a credit card when you already have bad credit, there are certain factors you need to keep in mind. For one, your low credit score will make a difference on whether your application is accepted or rejected. Additionally, it also determines the rates of your credit card. But with the right usage of the credit card, you can easily correct your credit score to an acceptable rate.

So what are the credit cards offers you need to take advantage of to improve your score? Given below are a few suggestions:

Secured credit cards: This is one of the most beneficial cards you can use when you have a low credit score. Although credit cards come under the category of unsecured options, secured credits cards can be obtained, if you only provide an equivalent collateral. However, in this case, the credit card rates will be considerably low, as compared to the other ordinary credit cards. You will also have a lower credit card expenditure limit, which may restrict your expenditures. However, with the right implementations and usage, you can easily limit excessive expenditures and improve your credit score at the same time.

Credit tracking apps: While there are plenty of means that your credit score can be affected, one of the main cause for it is over expenditure. Although a credit card can be very convenient to use, very often card holders get carried away with the expenditures and end up overusing it. This leads to high debts as compared to the income, which in turn affect one’s credit score. Credit tracking apps are one way you can keep track of the expenditures you are making. You can easily download the app when you apply for the credit card, which will be synced to your account. Once you make an expenditure, it will automatically track it thus providing you with insight on your expenditures.

Upgrade to co – branded cards: While your secured credit card will offer you a safety precaution against over expenditure while improving your credit score, it is only a short term solution. During the duration of the usage of the card, you will need to provide collateral. However, you can always upgrade to a co – branded card that will work towards your benefit. For example, if you frequently travel between cities, you can opt for a travel credit card that allows you to collect points. Similarly, this can work for the purchase of retails products or even movie tickets. Such credit card offers will go a long way to improving your credit score while allowing you to save on your expenditures.

Best car loan: Benefits of pre – qualifying for a car loan

Shopping for a used or a new car may be an impending adventure waiting to happen. However, when it comes to financing the purchase, it can be a tedious job, especially when it comes to arranging the auto loan. So how do you keep a minimum time in your lender's presence? The easiest way to do so is through the pre – qualification of the car loan.

Given below are some of the benefits of the pre – qualifying for a car loan which makes it the best car loan you should take advantage of:

Get better interest rates: While dealer financing is convenient, you will always be a risk for car loan rates that have been marked up. This means, that you are more liable to pay 1to 2% more than the current market rate. While this may seem like a small figure, in the long run, you may end up paying more than usual. By getting a pre – approved loan, you know you will get the best of the loan rates you can qualify for. Additionally, you will also be able to judge whether the dealer is offering you a good deal or not.

Set a realistic budget: One of the main drawbacks of a car purchase is the budget. When it comes to purchasing a car, you may have a fixed value in mind. But many a time, your dealer may convince you to opt for additional features, such as add - on or insurance, which can increase your overall loan amount. One getting a pre – approved loan amount, you get not only a fixed interest rate but also a realistic budget. You can even take into consideration other loan factors such as the add-ons, insurance, down payment, trade-in amounts amongst other expenditures to know what your budget will be like.

Simplify your dealership experience: A dealership experience can be a pleasant, exhausting or discouraging one. But a simple factor, such as a pre – qualified loan will make a considerable difference in your dealership experience. In other words, a pre – approved loan will be the best car loan you can use to finance your car purchase. For one, it makes your dealership experience simple and convenient. This is because, a dealer will see you as a buyer with cash in hand, and someone who can easily walk away from negotiations at any time. In other words, they do not have fixed rates that can be turned in their favour and against yours.

Negotiate more effectually: When you bring a pre – approved car loan, you can always ask the dealer to beat your interest rate. Very often, dealers have access to cheaper financing through captive lenders. These are banks that are set up by car dealership companies just so that they can produce auto loans. It will work in your favour if you fill out a loan application at the dealership to see what special deals and incentive you are viable for, especially if you have a strong credit.

What are the factors you need to consider before opting for auto loans?

Auto loans, just like its mechanical namesake, comprises of plenty of complications and multiple parts. However, as compared to the loan, there are plenty of individuals who have a better understanding over maintaining a car than a loan.

While there are considerable differences between both aspects, several factors that are common between them one of them includes the perception that both the car and loan are indispensable to their lifestyle. While a large population do own cars, when it comes to financing the purchase, auto loans in India have become the most viable option. But in order to avoid any possible complications or financial drawbacks after applying for the loan. Here are a few factors you can consider when it comes to applying for this loan:

How much to put down?

‘No down payment’ is one factor that you may have come across when applying for a loan. But is it in your best interest? While this may seem like an attractive offer, a down payment will go a long way to saving funds, especially in a loan application. That is because higher the down payment, the lesser of interest you will need to pay. Additionally, since the value of new cars depreciate as soon as you operate them, you will end up owning more than the car’s worth for the time being. In other words, if your car gets stolen or gets into an accident, your insurance may not be able to pay off the complete loan amount.

How much of a term length to opt for?

Loan terms differ based on the type of loan. Auto loans can last anywhere between 10 to 15 years. However, lower the monthly payments, the more you will need to pay, especially regarding interest expenditure. However, since vehicles do have a depreciative value, you may end up with a longer loan that a car, which normally has a shorter useful life. If you do not want the loan to outlive the car, opt for a loan duration that will suit your needs.
How to get the best rate of interest for the auto loans in India?

Loan interest rates vary on different factors and conditions. The best way to get the best interest rates is to compare lenders before settling on a loan offer. You must be aware that loan rates are typically higher on longer loan. Therefore this is another incentive for choosing a loan tenure that is shorter.
Opt for a direct or indirect lender?

There are two ways you can finance the purchase of your vehicle. One way to do so is by getting the loan directly from a financial institution. The other option you can consider is through the car dealer. While it may be convenient to opt for financing from a dealer, you may be on the receiving end of high markups on loan rates. Don’t forget to compare them to loan rates offered by a financial institute before making a decision.

Are you aware of these services provided by your ATM card?

When it comes to accessing your funds directly, there are certain means wherein which you can access it. The ATM card is one such means where you can access your funds at the ATM terminal.

However, recent progress in banking facilities has allows bank card holders to use this card as means of other services, such as given below:

Open or access a fixed deposit: Fixed deposits are a great way to store your ideal funds, and a popular means to invest funds for a fixed time, with a good return. Through this card, you can now easily open or withdraw funds from your account. All you need to do is access your ATM card near your closes terminal. Select the ‘open fixed deposit’ account menu, and then select the duration. Don’t forget to select the amount you would want to invest in. At the same time, confirm the other necessary details you would want.

Recharge your mobile: There are plenty of occasions where you will find yourself in a situation where you lack balance on your pre-paid mobile phone to make any call or access the internet. Using you’re the ATM card like a debit card facility, you can recharge your phone. At the same time, you can even recharge the phone of your friends and family member in the same manner. All you need to do is access your card at the terminal and enter your mobile number and confirm your recharge amount.

Deposit cash: While you can withdraw funds from a terminal with your ATM card, you can also deposit cash in the ATM kiosks, just like a debit card facility. The amount that one can deposit will differ from the banking institute you are depositing. Some banks allow an amount of Rs. 49,000 with certain denominations of Rs. 100, Rs. 500 and Rs. 1000.

Pay insurance premium: Certain banks have now extended their facilities and tied up with insurers to facilitate premium payments through ATMs. All you need to do is keep your policy number at hand. Once you access your card at the terminal, you can pay a bill, through the selected insurer. You will need to enter your policy number and date of birth, along with mobile number. You will need to enter the premium amount and confirm the details.

Personal loan application:

When applying for a loan, you will need to approach the appropriate banking facility to get the funds. However, if you want to avail a small personal loan, you need not approach your bank. Selected bank sectors offer pre – approved personal loans for customers where ATM terminals are used as a point of disbursal. However, advanced analytics will be used to take into account the customer’s transaction details, account balance, salary credits and other banking card repayments. 

Are you aware of these factors before applying for a business loan?

Plenty of individuals have pursued their dreams of opening their own business by financing it through a business loan. Established ventures have also used this loan to finance their working, or certain specific functions of their business. Lenders have also different packages of loan for business in order to satisfy a particular function of the business.

But like specific loan application, a lender will review specific factors before approving your application. Therefore, to ensure that you have a high chance of an approval on your loan, here are a few steps you can take:

Prepare yourself properly: In today’s time, lenders will look at all the aspects of your business before approving the loan. This review will be considerably stringent as compared to the previous processes. While most applicants will aim for a lender that provides the highest security possible, this security will only be provided if the applicant provides all the relevant details. Therefore, it is necessary that you prepare yourself properly to face all the queries of the lenders because their priority will be to select worthy candidates.

Lenders look for a strong credit history: A strong credit score is another factor that lenders will review before approving your business loan application. Your credit score will always provide you with one step ahead of others. Therefore, it is crucial that you build a strong credit history before exploring your options for a loan for business. A good credit history will indicate your ability to deal with any debt or credit issues in a timely manner. While providing your credit history, do ensure that you also include your equity in your proposal.

Consultation with an accountant:For those who are preparing for a new business loan, you may not be aware of all the important facts regarding the loan. The best way to ensure that are completely aware of all the factors surrounding the loan is to consult an expert accountant. The accountant will suggest how much you need to apply for and how much your business requires to function. The accountant will also help you design your business plan.

Income statements:While you apply for a loan, you must also ensure that you have the means to pay off the loan. Lenders will check the ability of the candidate before sanctioning the business loan. This means that, lenders will want to see whether the applicant will be able to pay off the loan in time or not. This can only be addressed with your income statements. By your income statements, your monthly income will decide whether you have the ability to afford the loan or not.

Calculate your net worth: Before you approach the lender for the loan, it is necessary that you calculate your net worth you actually own. This is one way to ensure that you are aware of your liabilities. A weak financial base with unknown previous liabilities will create problems in the duration of your loan repayment, making the loan a liability itself.

How to get the best deal on your card when planning a foreign trip?

With the holiday season coming around the corner, you may be bombarded with a multitude of different discounts and offers regarding investment opportunities, travel packages as well as bank card offers. No doubt, this would also be the perfect time to plan a quick escapade with your loved ones or your family for a much-deserved vacation. And what better holiday vacation you can take than by travelling to a foreign destination?

Undoubtedly, with any choice of destination you make, it will come with a hefty price. Additionally, you will also need to take into consideration the expenditures you will need to undertake when at the destination itself. But instead of losing out an opportunity to collect souvenirs or sample an exquisite yet local dish, there are ways and means where you can actually indulge in guilt free expenditures. This canbe done with the right banking card. Amongst all the different available choices, the multi-currency card is one of the most popular choices.

With this card, you only need to invest a few your funds in the local currency, which in your case, would be the rupee. Once you travel abroad, you only need to swipe the card whenever required, and the funds will be deducted from the account in the local currency value. But this card is only as beneficially saving, as the deals, you will get on it.  Here are a few tips you can keep in mind when it comes to getting the best deal on your multi-currency card:

Look out for changing financial trends: Financial trends often change with certain factors, one of which includes the international festive and holiday seasons. Depending on this factor, currency values may either increases or decrease. While the trend itself may be unpredictable, you can always look out for predictions pertaining to these change. This will not only give you an idea what to expect, but also allows you to take that split second decision to invest in a currency right now, or wait for a longer period of time. Since the currency value will be fixed when loaded on the card, you can make most of the change in currency value, especially if it works in your favour.

Avoid unnecessary fees: One of the major advantages of using the multi-currency card abroad is the avoidance of unnecessary fees. When using a normal banking card abroad, you will normally have to pay fees such as conversion fees, service charges amongst many others. Overall, this can add a financial burden to your expenditures when travelling abroad. However, when opting for the multi-currency card, the value of the currency will be fixed. Additionally, as a part of the application for the card, you can review the terms and conditions, which also specifies the charges you will have to pay along with your expenditures, giving you the required transparency to avoid any potential setbacks.

Get the best of businesses privileges with the current account

One of the crucial requirements of owning a business is incorporating a convenient and flexible financial channel. This financial medium should benefit not only your business, but also your clients.

But amongst all the available financial products available, one of the most convenient options is the current account.  Plenty of business, both startups as well as established ones, has opted for this account, to handle their daily transactions or any other clientele transactions. Here is how you and your business can benefit from this account:

Payments and collections through NEFT: The current account uses the National Electronic Funds Transfer (NEFT), which is a nationwide payment system that facilitates a one to one fund transfer. Through this channel, individuals, firms and corporate can electronically transfer funds from any bank branch to an individual, firm or corporate bank account in any branch in the country. This makes it easier to manage business transactions between businesses, especially on a monthly basis.

RTGS collection: The real time gross settlement system also known as the RTGS system facilitates an online transfer of funds between bank customers and different banks. Not only can this system be used for transfer high-value funds, but it is also done on a real time basis.

Multiple transactions: One of the main factors of a business is the transaction to be made in with another client or business or even your own employees. Any restrictions on these transactions will affect the business development or any current business relations. This is where the current account will prove to be beneficial. It is through this account that you will be able to make multiple transactions that will ensure a smooth functioning and disruption free channel.

Multiple location transfers: For businesses who have branches in different locations will have restrictions in terms of dealing with multiple clients that have been scattered around the country. This is where the multiple location transfer feature of the current account will work for your business. Along with this feature and combined with NEFT and RTGS, you can now easily make business transactions from any bank branch to facilitate a smoother and faster transaction.

Overdraft benefits:  As a business that thrives on each financial transaction is makes, it is crucial that it has the required flexibility to make transaction even if there are insufficient funds in the account. This is where the overdraft facility will benefit businesses, allowing them to over withdraw funds in the event it is required, in order to facilitate a smooth financial transaction.

Apart from these factors, there are plenty more that can benefit you and your business. As it is crucial that you opt for a financial product and channel that will assist your business and let it flourish, this account will go a long way to help you achieve your dream.

What are the vital products you need to have before investing?

When it comes to investing, you will require stringent discipline to match your goals, and also have a strong intent to match your requirements. You will find plenty of recommendations from the RBI, several banks, investment and service providers.

However, the eligibility to invest in the first place and the efficiency which the investments are made and managed will depend on the following factors:

Bank account: Most investment products will require payments and receipts that will need to be routed through a banking system. In most cases, cash as a form of payment is often regulated. However, the cash amounts are often accepted to certain limits. Other products such as mutual funds do not accept checks that are issued from outside accounts. In other words, any capital market transactions made are only routed through the investor’s bank account.  Any dividend, interest, maturity redemption checks are made out to the investor’s name, wherein which a bank account will be required to process it. Additionally, the direct transfer of funds or even modes such as the NEFT and RTGS systems allow a transfer of funds from the account of the remitter to a recipient only.

Permanent account number: This alphanumeric identity needs to be furnished and produced at the time of commencing any financial transaction. Whether it is opening a bank account or a demat account, making or redeeming any investments or deposits and many more activities, you will be required to furnish the PAN number. However, you may not have to provide this number, if your transactions are below a prescribed value for certain products. In the event a PAN is not available, you will need to make a declaration in Form No.60 under the Income Tax Rules 1962, wherein which particulars of the transactions and proof of your identity and address will be required.

KYC norms: Under the PML Act 2002, you would be required to provide your identity details in order to make financial transactions. This is done under the Know Your Customer (KYC) norms. With this, banks, depository, participants and other similar institutes and financial intermediaries will conduct this compliance process, the first time an investor makes a transaction. If the KYC procedure has already complied with any capital market intermediary, the acknowledgement can be used to invest in others.

Demat account: Any securities that have been purchased or going to be sold will be held in a dematerialized or electronic form, known as the demat form. Certain investments such as shares, debentures and government securities will mandatorily require you to open a demat account. Other investment products such as mutual funds and small saving schemes can also be held in this account. Investors can open a demat account with any depository participant that is associated with the NSDL or the Central Depository Services Ltd (CDSL).

Safe internet banking: Factors to keep in mind

Today’s progress in economy and technology has made banking easy. Through internet banking, you can now access the basic functions anytime and anywhere you would want. They are even accessible through your fingertips via your mobile phone.

While there are several benefits to this form of internet and mobile banking, the flip side of this coin also shows up. There are certain risks involved with this form of banking, which has remained a huge concern for users. In order to ensure that you enjoy secure and safe banking transaction, here a few factors you can follow:

Always use genuine anti – virus software: Very often it is your system that gets compromised through phishing, malware and virus software. This is also applicable for mobile banking.In order to protect your computer or mobile from such factors, you need to use a genuine anti – virus software. While you do get trail versions online, a completely anti – virus software will help detect and remove spyware that can allow outsiders to access sensitive information.

Avoid using any public Wi – Fi: One of the biggest threat of internet banking with a  public wi – fi network is that the hacker can sit between the end user and the hotspot and trace all the data with ease. With this easy access, the hacker can easily introduce malware or viruses into your device. So if you must use the Wi – Fi for any internet usage, avoid using it to access your bank details or make any payments. As a precaution, you can set up a VPN software on your computer to create a secure a tunnel between the computer and the internet.

Check for the latest update on your operating system: Whether you are using a computer, laptop or any mobile based device, you should ensure that your operating system is well updated with the latest security patches and updates. As far as possible, avoid using cracked OS’s or jail breaking or rooting your phone. You should also look to limit or restrict access from programs or apps that are being installed, to only what they really require.

Change your password regularly/keep a strong one:While this may sound clichéd and avoidable, it is important that you keep your account safe while maintaining confidentiality. The facts goes without saying you must not share these details with anyone. No bank will ask for your confidential information. Additionally, when you are changing your passwords, choose strong or long passwords. If you must, create different passwords for log – in and your transactions.

Subscribe for mobile notifications: It may seem like a nuisance to get constant alerts, but it will actually work to your benefit, especially if you get an instant notification if any suspicious transaction occurs. Whether the transaction exceeds the specific limit or within it, you will be aware of how much funds is remaining in your account. Additionally, you will also get alerts if there are any unsuccessful login attempts to your net-banking account.

What are the types of insurance available in India?

In your life, you will face unexpected risks, which can affect not only your, but also your loved ones. So how can you face these risks and yet stay protected? This is where an insurance policy will help keep and your loved ones protected. But with so many types of insurance policies available, how does one opt for the right one to get the optimum protection?

Given below are the different types of policies currently available that you can opt for:

General Insurance

• Personal Insurance: This is one of the most popular and generic types of insurance policies available. It covers several requirements such as health and coverage against death or injury by accident. Under this category, you can also cover your family members in an individual policy such as medical insurance, accidental insurance, property insurance as well as vehicle insurance.

• Rural Insurance: Rural insurance is an insurance policy that is designed to meet the requirements and needs have rurally based individuals or businesses. Normally, it focuses on coverage’s for life and health and even protection against natural disasters that can have a negative effect on businesses.

• Industrial Insurance: Businesses can opt for financial protection for any of their important projects, construction, contracts and equipment from situations such as fire, theft, damage or loss.

• Commercial Insurance: This insurance is designed to provide financial protection against theft, liability and property damage. This also focuses on injuries suffered by employees or even interruptions in the business.

Life Insurance

• Whole life insurance: Whole life insurance policies normally cover the entire duration of an insured’s life. A yearly premium will be required to be paid so long as the policy lasts.

• Endowment plans: This policy provides a lump sum amount once the policy holder dies or when the policy matures. In this case, there are certain types of policies that provide payment in case of critical illnesses.

• Money back plans The money back plans are used as a form of investment. It is used to produce ideal financial returns in the future for several purposes.
 
• Term life insurance: The term life insurance plans or term assurance plans are available to the insured, for a fixed period of time. Once the period of time comes to an end, the policy owner can opt to withdraw the policy or extend it.

• ULIP’s: United Linked Insurance Plans are policies where the financial worth of a policy reflects on the net asset value of the core investment assets that are related to it. They offer a unique feature, to policyholders, which is both flexible as well as protective.

Other Forms of Insurance

• Home insurance: Home insurance, also known as homeowner’s insurance of hazard insurance is taken to cover private homes against losses and liabilities.

• Travel insurance: Travel insurance policies can be availed to cover both long and short trips. It can also be used within or countries abroad.

How to tell if you are ready to purchase a car with a car loan?

Purchasing a car may seem like an easy feat as driving one, but on the contrary, there is a lot more to be done. Not only will you be required to provide paperwork, but you will also need to be on top of it to secure the high-ticket purchase. So how do you know when to wait, or go for the big purchase?

A car loan is one way you can go about purchasing your car. However, your lender will ensure that you do not cross 45% of your monthly income as payment. This would also include the other monthly liabilities. While this may seem like a small amount, in reality, it is quite big. As compared to other savings such as your monthly obligations, excluding childcare, college savings, and other savings in general, this is a large expenditure to take care of.

So if you find you’re unable to make those ends meet, chances are you may not be ready to buy a car. Given below are some means to keep your loan payments as manageable as possible:

Pay off previous debts: The first step you need to take is to pay off previous debts. You need to check if you have a workable down payment. If you have any debt payments that push your debt over the 45% mark, try to pay them off. Focus on the debts that have the greatest balance. In doing so, not only will it allow you to apply for car loan that is large, but most importantly it will allow you to afford a new mortgage payment.

Keep your monthly debts in check:Whatever current monthly debts you have, it will limit your purchasing power especially if you want to apply for car loan. Therefore, it is crucial that you reduce these debts on a monthly basis. You can make a repayment plan that focuses on repaying each debt within the given tenure. Alternatively, you can focus on repaying each debt one at a time. Once your overall debt to income ratio has increased, you can apply for the loan to purchase a car.

Avoid focusing on high-interest debts:It is not what you owe, but rather what you pay that counts. Lenders look at certain factors when it comes to your application for a car loan. Most lenders focus on the minimum payment that you’re obligated to make on credit payments of whatever interest rate you have. In other words, your 0% home loan can adversely affect your ability to borrow, especially if that payment is a few thousand rupees a month.

All you need to remember is that only you will be making the payment for the loan. So purchase a car if it only makes financial sense for you. While low rates are an attractive reason to purchase a car, you need to exercise financial prudence.

Debunking the top myths associated with personal loan

When it comes to investments, you would always look for options that are risk free, with a promise of high returns while also beating the demands of inflation. However, when it comes to investing a loan such as a personal loan, there will always be a fear that the loan will overwhelm you and your financial requirements, leaving you with an ever bigger debt.

But not to worry, we are here to debunk some of the common misconceptions about the personal loan and how to get the best deal:

Myth #1 – Increase in the interest rate would mean inflated EMI’s

It may seem like a simple math. Whenever a bank revises the base rate, it would only mean an increase in the personal loan interest rates. Of course, it would change your overall monthly budget, especially with your EMI’s. However, this is the biggest myth. In line with the changes of the interest rate, the tenure will normally change. In fact, most banks tend to adjust the tenure with a change in the interest rate, while keeping the EMI value the same. If you want to pinpoint the exact changes in your tenure, you can always use the personal loan calculator to assist you.

Myth #2 – All interest rates offered are the best deal

While the cheapest rate for a product score you a good deal, the same cannot be said for personal loan rates. You will need to dig deeper to ensure that you are getting the best deal that will suit your needs. You will need to check out the valuation charges, processing fee and other additional rates apart from the personal loan interest rates.  The initial glance over the rates may look tempting, but it may not be flexible for your requirements. The best way to avoid such a situation, is to review the personal loan features that will suit your finances and objectives before you zero in on a lender. Don’t forget to compare options before you apply for one.

Myth #3 – Borrowers should always opt for a shorter tenure

Most borrowers are under the assumption that a short loan tenure is the best route to avid any repercussions from an increase in any repo rates by the RBI. However, on the contrary, shorter the tenures would also mean higher EMI’s, which puts you in a position to face liquidity issues if you don’t manage your money carefully. Instead, try to save some funds side by side and invest in options that give you a good return at the same time. A diversified investment portfolio will help you pay off your personal loan as opposed to increasing your EMI, by reducing your tenure.

How to prevent your education loan from taking over your life

Over the last few decades, education has become a priority for most of the upcoming youth. Many of these individuals are aiming for education levels that go beyond the standard college degree. Some individuals have even contemplated pursuing degrees and higher educational levels abroad.

However, such educational degrees come at a price, especially if the said degree is an international one. But rather than losing out on such an opportunity, many individuals finance their education through the means of an education loan. However, lack of well-paying jobs, recession and demand for local workforce has often affected loan owners, who are looking for means to repay back the borrowed funds. After all, lack of income leads to lack of repayment. So how can you avoid a potential debt in your life while ensuring that you get an opportunity for the highest education? Here are a few steps you can follow:

Before you borrow

While the best way to avoid a potential debt is to avoid borrowing in the first place. This can be an impossible situation if you are seeking a high international educational degree with the help of education loan in India. So instead, you can ensure that you follow certain steps before you apply for the loan. They include:

Get a complete picture of your education goal: The reason why colleges and higher education might seem expensive, is the fact that half of the students graduate at the end of theterm. Most of these individuals either drop out, flunk out, or even switch their majors. Some even drop out midway because they get a job opportunity, only get stuck on the corporate ladder due to lack of a higher educational degree. To avoid this potential situation, you will need to focus on your education goal. This will help you understand what the potential financial expenditures are, in order to attain the position you want in your targeted industry

Take a year off:  Taking a year between your college and earning your masters or PHD will go a long way to assist you in planning your future. This year can be used to explore alternate career options or earn a down payment for your education loan.

After you borrow

Once you have borrowed funds through the education loan in India,  here are a few factors you can follow:

• Create a post-college budget
If you are going to borrow, you need to be aware of what you owe, how much you owe, and the time it will take to repay the funds. Calculate the monthly cost of your loan payment while you are still studying, so that you are aware of how much of a budget you will need to follow when you start earning to pay off the loan.
• Prioritise your repayment
As you start earning, it is important that you focus on prioritising your repayment. Ensure that you have sufficient funds to save, for your monthly requirements while paying off your loan at the same time. As far as possible, avoid taking on additional debts till you have paid off your loan considerably.

Factors that determine your eligibility for a home loan

When it comes to purchasing a home, there are plenty of options you can consider to finance this purchase. Amongst the several options, the home loan is one of the most popular choices. Not only are there several lenders who offer home loan in India, but they also offer it at different competitive rates.

However, each lender will have different criteria for evaluating a loan application. These criteria determines your eligibility for a loan application. Here are a few factors that almost all lenders will consider:

Disposable income: One of the most important factors that a lender will consider is your disposable income. It is derived by deducting your statutory deductions, regular expenses and existing EMI’s from your overall gross income. Overall, you home loan EMI should be within 40% of your monthly disposable income. If you individual income is low, you can always apply with a co – applicant to increase the overall gross income in order to get the loan amount you require.

Credit history: Your credit score determines your creditworthiness. Lenders consider your credit score as the means to judge your creditworthiness. A low credit score will indicate that you are a risky investment. It also indicates that you may have a current debt value that you need to pay off before applying for another debt, such as the home loan. The appropriate credit score of 750 and above is considered as a good score. However, other lenders may have different scoring patterns and a fixed yardstick for their own version of their acceptable good credit score.

Compliance with legal norms: When it comes to opting for any of the home loan in India, lenders will first verify details of the property which you are taking the loan. They provide loans to facilitate the purchase of properties that have been legally cleared by the local authorities, especially if they possess a clear and valid title. Some lenders even offer special loan packages or rates on properties that have been listed in their approved database of properties.

Occupation stability and continuity: A stable job or income source ensures a continuous and steady income. This income in turn, ensures that the borrowed funds are repaid in a timely fashion. Lenders for certain signs and factors that indicate a stable job or income source. They also consider how long you have been working with your present employer to calculate how steady you are in your employment. Switching too many jobs during your career will create a negative impression. Additionally, lenders give more preference to government employees over professional individuals in private sector companies.

Apart from the above mentioned factors, there are plenty more, that a lender will review. Keeping these factors in mind will go a long way to ensure that not only do you get the ideal loan rates in the market, but also allows you to negotiate for the best rates in the market.

Tools and tricks to pay off your loan debts faster

Amongst the different options you can consider to satisfy your financial requirements, loans have always been favourable options. Not only do you get to borrow a lot of funds, but you also get a convenient time to repay back the borrowed funds along with a small sum that conforms as the interest.

But overtime, without proper management and planning, your loan repayment will turn into a never ending loan debt. This is especially the case in long-term loans, such as home loans and business loans. Additionally, there’s a risk in the case of secured loans, where the collateral provided will be reclaimed if the borrowed funds are not paid on time.

The only way to avoid such a situation is to pay off your loan debts fast. Given below are a few tricks and tools such as the loan calculator in India you can use to aid you in this process:

Refinance your loan: High-interest rates and long tenures often make it difficult for a loan owner to repay the loan on time. However, refinancing the loan will help reduce the time spent to repay the loan as well as the original loan rates to a more favourable one. Plenty of lenders does offer to refinance loans at affordable rates. However, this is applicable only to certain loans. You will need to conduct appropriate research before you apply for a loan refinance. Additionally, you will also need to know how much of refinancing will suit your needs. Using the appropriate loan calculator you can easily calculate the appropriate amount.

Use any windfalls to pay off your loans: During some time in the year, you will come into extra funds through your body, holiday, annual bonus or even festive bonuses. At such a stage, you may get the urge to spend it on something exciting for you or your family. At such a stage, it is important that you resist the urge. Instead take the profit and convert it into a payment to pay off your loan debt. This will provide you with relief in your repayment. Additionally, you will be able to save more to pay off the loan faster.

Use the loan calculator to make a repayment plan
A strong repayment plan is one of the most important steps when it comes to repaying any loan debt. You must first plan a flexible baseline to your payments to know how much you will be able to pay per month within a given repayment tenure. You can do this by using the loan calculator.  You can use the different loan calculator in India for the appropriate loan you have applied for. You can even use a general loan calculator to calculate multiple loans.

Personal Loan: How to ensure an easy personal loan management

Financial requirements will come and go in your life. However, at times, it will exceed the amount you earn. At such a time, you can always turn to a personal loan to get the required funds you would want.

But like other loans, this loan must be carefully considered, as well as planned. An unplanned loan will lead to high loan rates, late repayments and eventually a high debt that you may not manage. The best way to manage your loan is to prearrange it. Here are a few factors you can consider when it comes to ensure an easy loan management.

Assess yourself: The first step you will need to take is self – assessment. A true assessment of your assets, liabilities and current financial responsibilities will provide you with the awareness that reflects your true affordability. Use the personal loan EMI calculator to get an idea of how much you can afford. If your current requirements exceed over 45% of your income after deductions, then you must rethink your loan application.

Have a thorough research on lenders:  By now you have come across various advertisements that indicate how easy it is to get a personal loan. However, in this case, it is more easier to get influenced that by getting a good personal loan. To avoid such a potential situation, you must compare the different lenders on various aggregator websites before you narrow down your choices. Use all possible mediums to compare their offerings before making your choice.

Check your CIBIL score: This is a step that most loan applicants tend to skip before the application process. Your CIBIL score is an important factor as lenders use it as a means to decide your credit worthiness. If your score is below 750, your application will either get rejected, or you may not get the loan rates that you want. It is ideal to check your score at least 6 months before your loan application so that you can get an idea whether to you need to improve your score or continue with your application.

Awareness and negotiation: By this stage, you would have adequately prepared for your application, while zeroing on your lender. Now is the time to approach your lender for the funds. You will be presented with the loan offer and terms and conditions. However, make sure that you are thoroughly ware of the important components such as the interest rates, payment options, various charges and penalties. If you must ask questions during the final negotiations, go ahead and do so. In case you have a high CIBIL score, you can even sweeten the deal by negotiating for better rates. You can even use the personal loan EMI calculator to get an idea of what loan rates you can afford and negotiate for.

Credit card: Benefits that will help save you cash

Many individuals are only aware of using the credit card, to borrow funds from the lender and repay it later. At the same time, you would be required to repay back the borrowed funds, along with an added interest rate.

However, while these credit cards can only be used to withdraw funds for any financial purpose, they can also be used to save cash in the long run. Given below are a few factors you can take into consideration to save your funds, if you are applying for any of credit cards in India:

Life insurance: When you apply for certain credit cards for certain usages say travelling, you are liable to get free insurance. Some of these cards also provide you with special coverage, such as hijacking. This form of life insurance works as a benefit on your credit card, providing you protection in case an unfortunate event occurs when you are travelling by air.

Protection against fraud: Online frauds have become one of the biggest and rising concerns of individuals who want to use credit cards in India. However, to compensate this risk, plenty of the credit card lenders are now providing protection against online frauds. These cards have different policies to safeguard your online transaction as long as you comply to their terms and conditions. Some cards will protect your from any fraudulent transactions even before you are aware of their occurrence or report the loss of a the card. However, you will be still required to take the necessary steps to report the loss or misuse of the card.

Low foreign transaction charges: Individuals have always assumed that using a credit card on an international trip is an expensive affair. However, certain credit cards do offer the best forex rate, if you only get a card with low foreign transaction charges. With the right rates, you can get a credit card charge of 3.5 % transaction, with premier credit card charges of 2% on foreign transactions. You can even use these premier cards to purchase other products from foreign websites to save funds in the long run.

Free access to lounges across selected airports: The airport lounges may seem like an expensive affair, when adding its charges to your credit card. With almost Rs. 1200 as a basic rate, you definitely would not want to add this charge on your card. But with the right credit card, you can easily get a free access to airport lounges, with an annual cost. As compared to daily expenditures, this will go a long way to reduce your expenditures.

Loan on credit card: Most of the credit card lenders are providing a loan against credit cards. However, the loan rates will depend on your credit worthiness based on your credit limit and your card usage. If you maintain a clean credit history with an excellent repayment history, you can easily get a loan rate that suits your need.

Are personal loans your choice for financial assistance?

When it comes to fulfilling any financial requirement, you can always opt for a loan. But in this case, it is crucial that you opt for the right choice of loan. For example, when opting for financial assistance for one’s business, the business loan will be the ideal choice. Similarly, you can also opt for a car loan to purchase a car or a bike loan for a bike.

But for other miscellaneous requirements, the personal loan is one choice, with the alternative being the loan against property. This personal loan in India has become one of the most popular choices for many individuals. But like any other loan, in order to get the best personal loan you will need to understand that risks that come with the loan. They include:

High interest rates: While the personal loans do have a lower interest rate as compared to banking cards, they still comprise of the highest interest rates amongst the loans. This is due to the fact that the loan comes under the category of unsecured loans. While those with an excellent credit score can get a loan with the lowest possible rate, those with an average score would still a rate over 11%. It would compound quickly and significantly add to the amount that would pay back.

Higher debt: Some individuals use this personal loan in India for purposes under good intentions, such as paying off a higher debt like a high interest credit card. However, in such instances, you rarely get to pay down the debt, and end up with a higher credit card balance, alongside a loan. You must opt for a loan, if you have a fixed concrete repayment plan where you can safely and comfortably make payments out of your debt.

Access your assets: Since personal loans come under the category of unsecured loans, many applicants believe that they can get away from repaying the loan. However, contrary to that belief, if there is a delay in repayment or even, your lender will look for other means to repay back your loan. This will include the income you have or the assets your have under your name. Unsecured loans may not be connected to your home, but you still need to guarantee that you will repay the debt personally.

Personal loans may provide a convenient and quick option for people anytime they need cash to handle any unexpected payments or emergencies. Without the need to pay any collateral, many borrowed would easily get the amount they require in a matter of hours or weeks. However, while it can be expedient for applicants who would want to use the money wisely, it can quickly turn into a dangerous option of high debt balances and crushing interest rates. Therefore, if you want best personal loan you need to be take out the absolute amount that will minimize your risk of falling into a debt trap.

Are you aware of these factors that can affect your loan application?

At a time when you have an urgent and large financial requirement, the loan will prove to be the ideal option to satisfy this requirement. No doubt, when you are applying for the loan, you will consider factors such as the principal amount, interest rate and the repayment tenure. There are other factors that you need to consider, such as the down payment, collateral, EMIs and even the eligibility criteria.

All these factors in total, will have an important role to play when determining the ideal loan that will suit your financial requirement. Given below are a few important factors you need to consider when applying for your loan:

Eligibility criteria:
While there are plenty of different types of loans available in the market, each of these loans come with different features, add – ons and risk levels. When applying for any of these loans, as a borrower, as a rule you will be required to repay the borrowed funds and interest, within the given period. But from a lender’s point of view, there will always be a risk of the borrower defaulting. In order to combat this risk and reduce the chances of defaulting occurring, lenders often include an eligibility criteria when applying for a loan. If you satisfy the eligibility criteria, you will be automatically eligible to get the best loan rates.

EMI calculator
When you apply for a loan, you focus on your financial requirement. However, in the end, you will still be required to repay back the borrowed funds along with the interest rate, within the given tenure, through EMI’s. But planning the right EMI is a crucial step, as it allows you to have sufficient funds for other daily expenditures or emergency financial requirements. By using the EMI calculator, you will be required to calculate the EMI that will help repay back the funds as well provide you with sufficient financial corpus for other requirements. 

Collateral
Unlike other loans, a borrower will need to provide a collateral when opting for a secured loan. Depending on the value of the collateral, other influential factors such as the interest rate and the principal amount will be determined. Normally, when you apply for a loan to purchase a particular entity, such as a home or a car, these objects themselves are used as collateral. However, you can add additional collateral to get a loan amount that will suit your financial needs.

Down payment
As a part of the secured loan application process, you will need to provide a small amount of the value of collateral being purchased. This amount can be anywhere between 20 to 30% of the loan amount. The higher the down payment, the more favorable will be the loan rates. You can even use the EMI calculator to calculate the EMI and the down payment you can afford.

While there are plenty of other factors that can affect your loan, these are the important ones you need to consider. You can always approach your lender to know more.

ATM card fraud:How to look out for warning signs and avoid getting scammed?

Almost every individual has some form of ATM card with them in this day and age. Whether it is a normal card or even a debit card, you can use this card to withdraw funds at the ATM terminal. But while this card offers flexible financial means to access funds, it also offers fraudsters the opportunity to earn a quick buck at the expense of you.

So how can you avoid being in a position where your bank account and the funds within in are vulnerable to others? The first step is to understand where the possible places and locations are your ATM card will be compromised. It is mostly in places where you would swipe your card. Here are few warning signs you can keep a look out in these places:

• A bulky card slot suggests that the ATM is compromised. A skimmer device may be in place, causing the added bulkiness. These devices are often indistinguishable from other real card readers as they are often placed above genuine readers. To confirm this, check for a gap between the reader and the pin pad.

• Loose or blocked card slots may indicate a system known as the ‘Lebanese Loop’. In this case, the strip of metal or plastic is inserted into the bank card slot, which traps the card within the card slot. Once the customer walks away to call for help or wait for assistance, the thieves return and retrieve jammed cards. To look out for such a scam, look out for a card reader slot that sticks out further than other parts of the machine.

• A loose or spongy pin pad can indicate a fake pin pad. Counterfeit pin pads allow thieves to retrieve your PIN number, as soon as you input it. Check and see if the pin pad is loose or thicker than normal.

While you are looking out for warning signs is one steps, you can always take certain measures to avoid being scammed. Here are a few steps you can take into consideration when you think your ATM card or the machine may have been tampered with:

• Instead of slipping your ATM card straight in, give it a bit of wiggle when sliding in. This is one way to deflect a skimmer device from reading your card properly. If a skimmer card has been placed on the genuine reader, the wiggle can dislodge it, and move it out of its place. Additionally, the wiggle movement will prevent the fraudulent card reader from completely reading your card.

• Covering your keypad as you enter your PIN number can also limit your chances of your card from being compromised. This is because most thieves also require the PIN code as well as your card details to access your funds. A simple step such as this one will prevent them from accessing your account.

RFC Account: All that a returning NRI needs to know

The financial market has always been a volatile one. While plenty of marketers and investors have spent considerable time and resources, researching about the market, they are still unable to completely predict the market trends. This can go a long way to affecting any investments, especially if the rates are being locked in for a long time.

Under these circumstances, any NRI who is returning to India, may think twice before converting their foreign currency into the local INR. Additionally, they would want to hold out on their foreign funds and investments, in order to anticipate for better conversion rates in the future. However, in order to meet the needs of such NRI’s, the government has offered the resident foreign currency account, especially for NRI’s who are returning home. Here is all that you need to know about the RFC account:

What is the RFC account?
Any NRI that is returning to India can open the RFC account. It can be maintained in foreign currency. Before opening the account, the NRI must satisfy certain criteria. For one, the applicant must maintain a minimum period of at least a year or return permanently to India. Additionally, the applicant should have returned to India on or after April 18, 1992, as per the RBI regulation.

What are the different options under the RFC account?
Under the RFC account, an applicant can opt for a RFC saving account or termed deposits. Under the saving account, the individual can invest in any of the three foreign currencies, namely the dollar, euro or the British pound. However, some banks also offer foreign investments in Japanese yet, as well as other selected currencies. Some banks even allow the applicant to open this account with the provision that will be converted into the above currencies.

What funds can be deposited or transferred from this account?
RFC accounts accept direct deposits of funds from bank account held outside India. Additionally, funds that are raised from selling foreign currency shares and foreign assets or balances from NRI or FCNR accounts can be used. Money can also be transferred externally from this account in the form of foreign currency. But if you are going to use the funds within India, then withdrawal from this account is permitted only in Indian rupees.

How can you open a RFC account?
When opening your account, you need to submit a photocopy of your passport, copy of your visa and immigration stamp that indicates that you have stayed outside the country continuously for a minimum of a year. Additionally, you will also need to submit the required amount of photographs to open the account.

Do you know these tricks to getting the best of your online mobile recharge?

Owning a smartphone is imperative today, if not a requirement for your daily habits. You can perform plenty of functions from your smartphone, right from its primary function such as making calls, to purchasing stocks on the stock market.

But in order to perform these activities, especially for a prepaid connection, you need to have a required balance. While you can always log online and get the required online mobile recharge, there are certain tips you can take into consideration to make the most of this recharge. They are given below:

Opt for the same connection operator in the family:
It is been noted that, at most 50% of all the calls that are being made, are made by one family member to the other. While the charges for these calls will be at a standard rate, you can actually save a lot of you recharge if you opt for a network connection that is used by all members in the family. Plenty of mobile networks are offering family covers and plans, which are designed to offer maximum communication, at the best price possible. In this way, you can get an online mobile recharge, which you and your family can make the most out of.

Get the best plan:
When you first apply for a network connection, you will apply for a connection plan that will last until you change it. However, since not many individuals are aware of the plan, they often rely on the operators to provide them with the best plans. In this case, this leads to a high expenditures which the user is not aware of. Therefore, you must look out for updated and the latest  plans available on the service provider website, where an individual can select the best plans according to their requirement and usage.

Take advantage of full talk time:
Plenty of network connections offer full talk times for prepaid connections. This is one of the highest value recharges, as it offers you the full recharge you pay for. In other words, if you pay Rs. 250 for a full talk time, you will get a recharge of 250. In most cases, the recharges that you make will not offer you the full amount as talk time, as you will need to pay service tax, amongst many other deductions.

Recharge discount:
Another benefit that comes from a full talk time, is the discount coupons for shopping and in their mobile wallets. The next time a user would want to recharge the phone, they can utilize the funds. The advantage of a discount is that, a user can choose any site for their recharge as their own mobile recharge wallet for paying the bill. Individuals can also search for discount coupons available on different sites.