Steps to take when converting a resident account to an NRO account

As an NRI, you will not be able to hold any residential bank accounts or have the authority to use the functions of them. At the same time, these accounts will be converted into an NRI account, which will provide you with the financial assistance and function you require when settled abroad. This account will either be converted into the NRE or NRO account.

The NRO account can be opened with funds which are either remitted from abroad or even generated in India. Like the local savings account, these accounts will have certain restrictions on repatriations of the proceeds to the country you are residing in. Here are the steps you will need to take when converting your account to the NRO account.

Step 1: Submission of form

Plenty of banks provide a specific form when there is a requirement to convert an existing saving account to an NRO account. These forms can be requested from the bank. Alternatively, you can also apply for the conversion process online and download the form from the bank website. A single form can normally be used to convert all your saving accounts opened in a single bank, against the same customer ID.

Step 2: Provision of documents

While converting a regular account to an NRO account, in a way, you are opening a new account. Therefore, you will also need to provide a filled form for a new account opening, in order to support this conversion request. In addition to this, the address proof of the overseas address must also be provided. You will need to submit copies of your passport, valid visa or even your work permit. You also need to submit your OCI/PIO card.

Step 3: Providing the right funding
The requirement for the resident saving account and the NRO account is different. For one, the account in question must have a minimum balance of 7500 Rs. Before being converted to the NRO account. If there is the insufficient amount, the necessary steps must be taken.

Step 4: Submission of documents
The documents must be submitted to the required bank branch. In the event you have already traveled outside, the form and the documents must be attested by the Indian embassy. It must be then sent to the branch.

Step 5: Change of account status

Once the required forms and documents have been received by the bank and verified, the status of the account will change. It will be re – designated from a residential savings account to the required NRO account. This re – designation may not change the account number, but it may be flagged off as an NRO account amongst the bank records.

How to open a NRI account from abroad

As a NRI whose settled abroad, has the opportunity to invest in various options back home. However, before investing in any of these options, the NRI must first open a NRI account. In this case, either the NRE account or the NRO account must be opened. Here is how you can open either account even though you are settled abroad.

Step 1 – Contact the bank

The first step you need to take is to contact the bank. You can either contact them through mail or call their helpline. Several of the major banking institutes also have a digital enquiry form which you can fill up, wherein which, a representative from the respective bank will call you back. Ensure that you talk to a representative from the bank and get the required details about the NRI account you would want to open.

Step 2 –Book an appointment to fill the account opening form

Once the necessary contact has been made with the bank representative and the information required, you will need to fill up the account opening form then. Normally the bank will provide you with the required paperwork through attachments or emails. Normally, it would take 20 minutes or less to fill up. However, it is best to book an appointment with the bank to get the required assistance to fill up the paperwork required. If you are unaware or unsure of any details within the form, you can leave it blank, until you get the required clarification.

Step 3 – Get your documents assembled in order
As the part of the loan application process, you will need to submit a certain set of documents. However, when filling up the form, you would not want to distract yourself, running around to get the required documents pertaining to the application form. To assist you in this step, you need,
• a copy of the first and last page of your passport
• a copy of the visa page on your passport
• proof of residence through documents such as your driver’s license, phone or utility bills
• passport photographs

As per the bank you are applying at, you may need to notarize or self-attest these documents. Once these documents are verified, your bank will proceed to contact you with the next step.

Step 4: Write a check in your currency or the currency of your resident country

Once your documents are verified, you will need to provide the finance in order to open the NRI account. You can either make the payment in the local currency or in the currency of your residency. You can make it in the form of a check or demand draft.

Step 5 –Deliver it to the bank

Once the required documents are filed, application form is filled and the finance provided, you will need to send these requirements to the bank through a mail. You may need to send it to the PO box or to the Indian address.

NRE account: All you need to know about crediting and debiting through this account

Plenty of individuals who have settled abroad, look for opportunities to invest back home. There are plenty of options available in the market, with the NRI accounts being one of the most popular options.

Additionally, within the NRI account, the non – resident external account has been one of the most favorable ones. This NRE account can be used as savings, current, recurring, or fixed deposit accounts, and depending on your financial needs. It also permits the account holder to invest and hold foreign currency. To make the most of this account here is what you need to be aware of:

What are the permitted credits to the account?

The following factors are permitted as credits to the account:

• The proceed of remittance in any currency is permitted to India.
• If the account holder is one a temporary visit to India, the proceed of personal cheques drawn on his foreign currency accounts, bank drafts or travelers cheques may be credited.
• The traveler’s cheques must be issued outside India. Alternatively, the bank drafts should be standing or endorsed in the name of the account holder.
• The proceed of the foreign currencies or bank noted tendered by the account holder should be supported by a currency declaration form whenever applicable.
• Any transfer from another NRE or FCNR account is permitted
• Any interest that is accrued on the funds within the account can be credited in the account.
• The interest accrued on government securities or dividends can be credited to the account. However, it must be proven that the securities or units that were purchased by debit, and deposited in the account holders NRE or FCNR account. Alternatively, it must also be proven that it was an out of inward remittance through normal banking channels.
• The maturity proceeds of government securities can be deposited in the NRE account. However, they must be proven that they were originally purchased by debit, to the account holder’s NRE or FCNR account. Alternatively, it must also be proven that it was an out of inward remittance received in a free foreign exchange from outside India.

What are the permitted debits to this account?

The following factors are permitted as debits from the account:
• Local disbursements can be permitted as debits
• Remittances from outside India can be permitted as debits
• The transfer of funds to NRE or FCNR accounts of the account holder, or any other person that holds the power of attorney to the account.
• Investments in the form of shares, securities, or commercial paper of an Indian company can be debited. Funds can also be debited from this account for the purchase of immovable property within India, provided that the purchase is made in accordance with the regulations granted by the Reserve Bank of India.

Tips to save on online money transfer

Over the last few days, sending money through the method of an online transfer has become a popular option. Whether it is sending the funds internationally or domestically, certain factors are required to be kept in mind in order to save funds during this online money transfer. In order to plan better savings during these transfers, here are a few factors you can consider:

Locked in rate

Exchange rates play an important role when it comes to calculating the overall amount. At times, you may notice a considerable difference in the amount before you make the transfer and after the transfer has been processed. This is due to the ‘bait and switch’ approach, where a lower amount is displaced before the transfer is made with a higher amount after it has been made. To avoid such an increase in the exchange amount, opt for a service that provides you a lock in the rate.

Narrow your research

While there are plenty of options available in the market, it is often tough to consider all of them without assistance. The internet search engine will provide you with plenty of options. However, to get the best option out of the available options, you need to narrow down your research to specifics. For example, searching for a money transfer service will provide you with a general search. However, if you search for money transfer service with deals will provide you with a more specific search. Through such a search, you will have a better chance of finding the best deal and discounts that will help save funds during an online transfer.

Payment option
When you are setting up a money transfer, you will notice that there are plenty of payment methods you can opt for to make a transfer. Some of the common options include a credit card, debit card, and ACH, which the automated clearing house option. Each of these options has different rates. Therefore you must compare them before making a choice.

Choosing the best time
The time you opt for transfer will also play an important role. Special promotions often come up during holidays or special international holidays. You can time your online money transfer during these periods. Apart from this factor, if you are planning to make an online transfer on a monthly basis, opt for midweek days such as a Tuesday or a Wednesday as this is when there is a low transfer period. It is during this time; you will get the best deals as there is low traffic which plenty of money transfer services try to reduce by offering great deals.

Using these tips, you will surely save a significant amount on your money transfers. At the same time, it is important that you read all the fine print on the terms and conditions before you apply for it.

What are the options for the best way to send money to India?

Plenty of individuals who have settled abroad, look for ways and means to send funds back home. While traditional options such as wire transfer have been a popular option for several individuals, online money transfers are slowly taking over. However, bank drafts may still seem the best way to send money to India, especially on a regular basis. But with so many options and each factor to consider, how do you to for the best option? Given below are the various options available in the market and how they can benefit your requirements.

ACH transfer:

Automated Clearing House, also known as ACH, is an electronic fund transfer system, which is used in the US. It is governed by the National Automated Clearing House Association’s operating rules, which also regulates clearances of electronic payments and transactions within participating financial institutions. Through this mode of transfer, the recipient can pick the transferred amount within four working days. This is the ideal option for those who want to save time and funds.

Online transfer:

Online transfer is slowly becoming one of the best ways to send money to India. All that is required is an internet connection along with the use of the local banking services to transfer money to any account within India. In addition to this, you will also need access to information that includes the name and address of the account holder, or recipient. You will also require information about the financial institution the money is being transferred to. Additionally, you may also need the IBAN or SWIFT Code of the recipient bank. If you make regular transfers, this is best option to consider.

Wire transfer:

As previously mentioned, the wire transfer option has been one of the most popular choices of fund transferring, especially for international transfers. The sender will be required to go through a financial institution in order to send funds to the receiver. The wire transfer collects information about the recipient and the recipient’s bank or facility.  Once the required information has been acquired, the sender’s financial institution will proceed with the wire transfer.

PayPal

PayPal is one of the many services that allows individuals to transfer money electronically, from one account to another. Normally, it is free for the sender; a fee is charged to the recipient. Additionally, the exchange rate of transfer is different for local transfers as compared to international transfers.

Bank Drafts and Cashier’s Checks

Bank drafts and cashier checks are accessible at any bank or financial institute. However, there is a fee associated with these services. Additionally, it will take time for the checks to be cashed in India. You will also need to pay more for the purchase of bank drafts as compared to money orders. One advantage of this money transfer is that it can be traced in the event it does not reach its destination.

Factors to consider when sending money to India from the USA

Plenty of Indians have settled in the USA for better career options as well as a better lifestyle. At the same time, these individuals send funds back home, for various reasons ranging from families to repaying a property purchase back home.

However, with so many options available in the market, how can an individual choose one that will suit his needs? Given below are a few features you can consider when opting for an option to send money to India from the USA.

Exchange rates:
This is one of the most important and first feature you will need to consider when comparing options to send money back home. While this exchange rate will not be fixed on a daily basis, the variations offered between the rates is often similar. However, you must keep in mind, while the exchange rates may be beneficial, you may need to pay higher transfer fees.

Transfer fee:

Each transfer company will offer their transfer fees. Therefore, it is crucial that you review the fees before you apply for the transfer or even proceed with the transaction. Look for companies that offer you transfer fees that match your requirements. At times, some companies also waive the fees if you transfer more than the minimum amount.

Transfer method:

There are plenty of companies that offer traditional means of transfer, such as a demand draft, wire transfer or even through cheques. Alternatively, some companies also offer digital transfers through emails. Some companies also allow you to make the transfer through the means of a single phone call or a message. You will also need to compare payment options available, such as bank deposit, debit or credit card.

Transfer time:

Each company will offer you different time durations when making a transfer. This is a crucial factor to consider, especially when you want to send an emergency fund to your destination company. Additionally, to reduce the duration of the time taken for the transfer, you may need to pay a premium. Alternatively, some companies only specialize in quick services.

Pick up methods:
As a sender, you will need to consider options that will provide you the means to send money to India. However, at the same time, you will need to consider how the receiver will have access to the funds. Will the funds be transferred directly to the recipient’s account or can does the receiver need to pick up the funds from a fixed location?

Transfer options:

At the time, you will want to make a flexible transfer. This includes the ability to lodge contracts forward, place orders in the financial market or even schedule payments in advance. You can look for options that offer you this flexibility.

What are the best investment options available for NRI’s today?

Plenty of individuals have traveled abroad for various purposes such as earning in a foreign currency, change in job location or even migration purposes. Some individuals also travel abroad to study and end up applying for a job with the same country.

No matter the reason, plenty of these individuals still wish to invest in opportunities, back in their home country of India. Supporting this decision is the government regulations that provide the legal framework along with the value of the falling rupee. Along with this, there are plenty of options to consider when it comes to investing. Here are a few options for NRI investment in India you can consider:

Bank Fixed Deposit:This is one of the most popular choices amongst NRI who wish to invest. Not only does plenty of banks offer this opportunity to NRI’s, but you will also have the option to invest in the local currency or the foreign currency. Normally, banks provide attractively, and high rates on NRI fixed deposits, making in the best option for high returns. With this option, you can opt for NRE deposit, NRO deposit or even the FCNR account.

Mutual funds: Mutual funds is another option that can be taken into consideration for anNRI investment in India. This is extremely beneficial to those who already hold any of the three NRI bank accounts, namely the NRE, NRO or FCNR account.  However, the investment in this option must be made in foreign currency. Additionally, the investment amount can be directly debited from the NRE or NRO account.

Direct Equity: Under the portfolio investment scheme of RBI, NRI’s can invest directly in the stock market. Under this regulation, the maximum investment that cannot go beyond 10% of the paid-up capital of the company. In this case, in addition to the NRI account, a demat account, and brokerage must also be opened. All transactions must be made through the stock broker only. Additionally, NRI’s do not have the permission to trade during the day or short sell within India.

Real estate sector: If NRI fixed deposits have been a popular option for NRI’s, the real estate sector has been a traditional option. Plenty of Indians may leave home and settle abroad, but a property back home will always consider as a prized possession. This NRI investment in India also has an added advantage, as property prices often appreciate, providing the ideal form of emotional security. All in all, the real estate sector is considered as one of the most lucrative investment options for NRI’s.

Apart from these options, there are plenty more to consider. However, you must first check the regulations and conditions of your resident country when it comes to investing these options in your home country.

What happens to the financial accounts of an NRI on return home?

Plenty of individuals travel and settle abroad while investing in financial assets in the home country. These financial assets can include property, selected equities and even hold an NRI bank account. Amongst the several options, the bank account has been the most favorable, due to its flexibility and convenience, amongst many other advantages.

However, an NRI can hold any of these NRI accounts, on the condition of their NRI status. In the event, the account holder returns home, the status and the functionality of the account will change. Here is how the NRI accounts are affected on return to India:

Change of NRI accounts status when returning to India: There are different types of NRI bank accounts available to an NRI. They include the NRO account, NRE account, and the FCNR account. Each of these accounts hasa different functionality, in addition to holding different forms of currency. They also have different restrictions and conditioning. When the account holder returns to India, the bank must be informed about the change in status, which in turn, will change each of the account’s functions and conditions. In the case of the NRO account, it will be converted back into the resident saving account. The NRE and FCNR account will get converted into the Resident Foreign Currency account.


Change of the NRI termed deposit when returning to India: On returning to the home country, the NRI’s termed deposits such as FCNR can be held until it matures. After maturity, the FCNR fixed deposit must be converted to the RFC account. However, the interest that is taxed on this account will depend on the status of the account holder, especially if he has stayed abroad for 9 years, in the previous 10 years, making him a resident, but not ordinarily resident status. If the account holder qualifies for this status, then the interest that is earned on the RFC account will be tax-free for the next 3 years.

Change of NRI bank accounts which holds foreign currency: NRI’s who hold foreign exchange on their return home, and wish to hold it without converting can opt for the Resident Foreign Currency account in India. Such an individual can open the account on condition that he or she must reside abroad for a continuous period of 1 year, before opening the RFC account. The RFC account can hold foreign currencies of the US dollar, Euro, Great Britain Pound and the Japanese Yen. This RFC account can be opened either in the form of savings account or a fixed deposit. The interest is taxed on this account unless the account holder qualifies for the RNOR status.

Debit Card: Be aware before you swipe your card here

Amongst all the different banking cards available, the debit card has always been a popular choice for many card holders. Not only can you use this card to make a transaction at the point of purchase, but you can also use it to withdraw funds from any ATM. Additionally, certain debit cards also allow you to collect reward points if you make purchases at certain outlets.

However, your card will be as useful to you, as it is safe. In other words, the funds within the account attached to your card will be safe, as long you are aware of the usage of the card. With plenty of fraudsters and scammers looking for an opportunity to make a quick buck, at the expense of others, debit cards have become a slow favorite for these individuals. Here are a few places you must be wary of before you swipe your debit card to avoid becoming the next unsuspecting victim for these individuals.

When making a purchase online

One of the popular usages of the debit card is online shopping. You only need to select the product, place it in the virtual shopping bag and enter your card details to make the purchase valid. However, if the payment gateway is not secure, the details of your card will be made public, allowing fraudsters to access it with ease. Additionally, if the purchased merchandise is not delivered or damaged in the process, you may not get your money back.

At the supermarket self – check out counter

Plenty of supermarkets are slowly becoming financial savvy while focusing on the overall productivity of the market service. The self-checkout counter is one such example, wherein, you only need to scan your products, and make the payment through the self-check banking card reader. However, when making a payment through these lanes, skimmers on the card reader slot collects information about the card being used and stores the data on an embedded chip. The data then can be used to access your account, or even change the details on it, thus restricting your use of the card.

When booking any advance travel

It is not uncommon for individuals to book an advance travel transport, just because they see a good deal. However, while you may think that you’re saving on this deal, in the long run, you may lose the funds on the payment, when the travel business can go bust, in an economic downturn. As debit cards do not offer the charge back features, you may end up losing your funds on this deal. To be on the safe side, use your debit card, only if you are confident of the travel company.

At a restaurant

Restaurants have a high turnover, especially if you are one of the regular individual's visit on a regular basis to your favorite joint. While on each visit you use your card, there is always a risk that a fraudster posing as an employee can access your card details, on any of your trips to the restaurant.

What are the popular NRI loans in India?

Plenty of individuals from India have settled abroad for various reasons ranging from settling abroad, better work environment or even for studying purposes. Although these individuals have settled abroad, they would still like to maintain some form of attachment or tie, back to their families or home countries. This may include investing in a property near the family home, renovating a property belonging to them, or even investing in a vehicle.

The financial market of India has recognized this need and requirements while focusing on means to tap the NRI market. Therefore, they have created liberal criteria to evaluate the request for the various loan categories that includes age, tenure, and income amongst many others. With the NRI loans, the minimum age of the applicant must be 21 years with the maximum at 60 years. In addition to this, the tenure of the loan is often less as compared to the local loans offered to Indian residents. Additionally, the annual income of the applicant must be over 40,000 USD. However, it can vary as per the policy of the individual’s bank.

Here are some of the popular NRI loans, and how you can benefit from it:

Home Loans

This is one of the most popular NRI loans. As in plenty of cases for most expatriates, most NRI’s would like to maintain some connection with their homeland. What better way to do so, than by investing in a property, in India? Plenty of banks and financial institutes have recognized this desire and have created a variety and diverse schemes, suited to the needs of NRI’s. Therefore, such a home loan makes sense for any NRI to utilize to their advantage.

Home improvement or renovation loan
At some point in life, every property will need to undergo renovation or repair work. For certain individuals, it can be an expensive affair, which can go well beyond their means or affordability. Additionally, opting for a local home renovation loan may not be sufficient, especially regarding repayment. In this case, any individual within the family who is working or settled abroad can opt for NRI loan specialized in home improvement or renovation. Before applying for this loan, however, the applicant must check the criteria for it, as it can differ from one institute to another.

Vehicle loans

In the case of vehicle loans for NRI, the criteria can differ from bank to financial institute. While some institutes will provide NRI loans to the NRI themselves, they may still request for a resident Indian to stand as a guarantor. Alternatively, some institute will allow NRI’s to become a guarantor while availing the loan under the name of an Indian resident. In this case, although the NRI’s status on the loan application is as a guarantor, the individual may be required to pay the EMIs.

Are you aware of these factors before opting for a money transfer service?

There are plenty of factors you will need to consider when it comes to making a money transfer. Some of the factors that are taken into consideration include the amount that needs to be transferred, the current conversion rate and the speed of transfer amongst many others. However, the one factor that needs to be taken into consideration before all others, is the money transfer service itself. Here are some of the factors you need to be aware of when it comes to selecting a money transfer service:

Exchange rate

Amongst all the money transfer services available, this is one of the most important factors to consider. The foreign market, in reality, is never still. Wild fluctuations in the exchange rates can occur within a short duration. To those who are making a transfer, it is imperative that the best exchange rate is selected in order to secure the best value. A favourable exchange rate, especially with a large sum of funds will save you a significant sum of funds.

Fees and charges
This is one of the imperative factors you will need to consider when it comes to the money transfer services.In addition, the exchange rate, additional fees, and charges are important when considering the overall cost factor of the money transfer. You will need to keep in mind the transfer charges and overseas bank receiving fees. While the value of these fees can differ within each institute, you will need to keep track of it, when making any urgent or non – urgent payments as they can impact the overall amount of the transfer.

Reputation of transfer provider
Several money transfer services have become a popular option for traditional banking services when it comes to making any overseas payments. Before making any currency transactions, it is paramount to ensure that the transfer money institute you are opting for, is authorized by the appropriate regulatory body to carry out the money transfer. These authorized institutes usually afford a higher protection, as they have to safeguard their client’s funds from other funds. The best way to check the reputation of a money transfer provider is by checking the balance sheet and the trading history of the company’s reliability.

Check for online services
Plenty of financial institutes offer the physical means to transfer funds from one location to another. That means you will need to approach the physical institute to make any transfer. However, most companies are now switching to online platforms, making these money transfer services viable and feasible for all individuals. You will only need to create an online account in order to make this transfer possible. Advantages of this online account includes, tracking of payment history and storage or subsequent transfers.

Remit to India: How to lessen your financial burden with these tips

Plenty of individuals who have settled or stayed abroad need to remit to India now and then. However, with plenty of options available in the market and each possessing different nuances, how do you choose the option that will suit you the best? Here are some tips that can help assist you:

Look for options that help share fixed fees during remittance

When you remit to India, certain banks or financial institutes offer you the option to choose who pays for the fixed fee cost of the remittance. In this case, either the sender or the receiver can pay for the cost, or share it. With each transfer of funds you make, different fees or costings will be involved. Depending on who’s opting to pay, the sender or the receiver will be responsible for their bank and the intermediate bank’s fees, in addition to the transfer amount and exchange rate.

Get the best rates between Mondays to Fridays

While the financial market may be unpredictable, certain trends can be easily perceived. For example, you will get the best of live exchange rates, if you opt to remit to India, between Monday and Friday. During this time, the international markets are open. On the weekends and public holidays, international markets are less functional, if not closed. At this time, the exchange rates that are quoted are either not live or a close estimate. Thus, there is a high chance that the remittance will be higher than usual.

Opt for the same bank or financial institute that has a branch abroad

When transferring funds from any bank around the world to India, three banks will be involved, namely, your bank, the intermediate bank and the receiver’s bank. Depending on your requirements and the requirements of the receiver, your remittance will become faster, easier and cheaper, if you transfer funds internationally and locally, within the same bank or financial institute. In this way, you also remove the necessity of an intermediate bank and the fees involved. 

Transfer on Mondays or Tuesdays for a quick turnaround time
Plenty of international countries have different conditioning when it comes to remitting to any other destination, such as India. For example, UAE banks are closed on Fridays, whereas most other banks are closed on Saturday’s and Sunday’s. Keeping these conditions in mind, it is best to transfer funds on a Monday or Tuesday from your bank or financial account.  As the funds will reach within the week itself, any issue or problem can be clarified within that week itself.

Best time to transfer funds is before 10 am

During the week, most of the international currencies transfer have a cut of time between 10 am and 12 pm GST. In this case, a two-hour margin is advised for transfer processing. This is to certify that there is no missing information required or inconsistencies to be fixed before the transfer takes place. Therefore, if you make your remittance before this time, there is a better chance that it will be processed on the same day.

How to send money to India in 3 easy steps

The number of individuals who have traveled abroad and settled for reasons such as better extended studying, earnings or migration purposes is increasing every year. However, while these individuals may travel abroad, they still keep in touch and provide for their families at home. Most individuals take this step, by sending money back home, in order to reduce any possibility of financial burden or as security sake.

However, sending finances from one country to another takes considerable planning. As the sender will need to consider several factors when making a decision to send money to India, very often, each decision taken is a calculated one. If you are looking to transfer any funds to India, here are certain steps you can take:

Step 1: Look at all your viable options
 
Each individual will have different financial requirements as well as habits. Based on these factors, you can opt for a sending option that will suit your needs and requirements. Most of the sending options include:
• Bank or financial institutes
• high street transfer firms such as the Western Union
• Forex brokers
As a general rule, banks and financial institutes are the safest options, especially if you are considering regular payments. Alternatively, money transfer firms are often quick, especially if you need to send funds in an emergency. Forex brokers are the best choice for those who want to send large amount of funds, as they provide the best protection against fluctuating foreign conversion rates.

Step 2: Ensure that you are aware of the costing

When you send money to India, the overall amount you will spend will not only include the amount you need to send. You will also need to include additional costings, which include:
• What is being charged by the firm when transferring the money
• The charges the recipient may incur when converting the funds into the local or another foreign currency
• The current foreign exchange rates
How much will it cost, when transferring funds from abroad is obviously a key consideration. You will need to find out the total amount of foreign currency you will by after all the costs have been done.

Step 3: Confirm all details before making the transfer

Once you have settled on the best option, you will need to consider the transfer. At the same time, ensure that they will be able to manage the amount you need to transfer, within the time limit you want. The best way to ensure this, is by getting a written proof through the means of an acknowledgement receipt or email. Ensue that you keep all the paperwork and receipts as evidence in the event something goes wrong or you need to provide proof.

Online shopping: Be aware of online money transfers when you shop online

Online shopping has become one of the greatest conveniences in modern day e – commerce. All you need to do is log online, check out the available wares you require and make the purchase you want through your banking card or COD option. Then you only need to sit back and relax as the product is shipped to the destination you want.

However, not all shopping expenditures come as easy as the process mentioned above. At times, you may not get the product you have ordered. Other times, you may get a damaged product. At times, you may also make the purchase you want, but the online money transfer is intercepted by an outside source, who diverts the funds to non – genuine source. All in all, you might not get your money’s worth, unless you are aware of the possibilities of money transfer frauds.

Given below are few possibilities that can affect your online money transfer orders when you shop online:

Online payment portals:
This is one of the common stages where your online money transfer will be affected. Most online shopping portals require an additional payment portal, to ensure that your money transfer is approved. During this transfer, hackers or any outsider can intercept the payment portal, if it is not secure enough. While they may not get the funds in the money transfer, they can still steal your bank details and use it to their convenience. You must ensure that the website, seller, and payment modes are secure before making any payments.

Modus Operandi:

This has been a common occurrence over the last few years. When you purchase a product and complete your online money transfer, along with receiving an acknowledgment, you may not get the product you want. Alternatively, you may get a product that is damaged or counterfeited. In this case, if you are not protected against fraud purchases, you may lose some percent of your funds, if not all. In this case, the fraud can happen at any time during the sale and delivery process. To avoid such a problem, look for products or marketers who sell and deliver their products. Alternatively, special services, wherein product quality, and delivery are guaranteed, for a premium.

Fake website:

Fraudsters are now upgrading their methods to fleece unsuspecting shoppers, of their funds. These individuals have now set up websites that resemble genuine one’s, along with similar logos and domain names. Alternatively, these individuals also set up a dummy site that possesses a product line that is only available online.

Genuine site with a fake seller :

There is a possibility that when you don’t receive the product, or if it damaged or fake, it is the possibility that the scam could be from the end of the seller or the courier company, by using the details of your online money transfer. In this case, ensure that the website is well alerted about the possibility of such scammers.

What are the benefits of a demat account and why should you be aware of it?

A demat account functions in the same way as a bank account would function. While a bank account is used to store funds, it can also be used to withdraw and deposit funds. Similarly, the demat account is also used to store and deposit securities in its electronic form. These securities are stored in the form of shares, bonds or debentures. As per the Depository Act of 1996, demat accounts are now being made mandatory, if you have more than 500 units in securities,

But while this account is used for this purpose, it also has plenty of benefits. By using these benefits to your advantage, you can make the most of your investment. Here are some of the benefit of this account which you should be aware of.

• One of the main benefits of the demat account is that it is a convenient mode to hold your securities. When you purchase or sell any security, you need not worry about storing it any option, as the demat account is designed to hold these securities in a secure manner.
• Your broker can always hold your securities anytime you purchase or sell them. However, it comes at a price. But the demat account, you need not worry about high brokerage fees, as they have their service fees which are considerably cheaper.

• Before securities were dematerialized, they were preserved and stored physically. However, this increased the risk of misplacement, especially if kept with the broker. Additionally, there was always a risk of thefts and fake securities. Apart from this, there was a high chance of delays in the turnaround period of selling or purchasing. However, with this account, securities are now stored in a dematerialized format which can be electronically accessed. This eliminated all the risks involved with the previous form of storage.

• Apart from the risks of materialized securities, stamp duty was also involved in the transferring. However, with the electronic conversion, there is no stamp duty involved. This reduced the overall expenses when it comes to trading stock.

• The depositary participants are enlisted by the National Securities Depository Limited or Central Securities Depository Limited. These two entities are core linked. Therefore, if there is any change made with a DP, it is updated with the depository as well as the other DP’s.

• As a demat account holder, you can make multiple transactions. You can sell or purchase a single share, anytime you want. As compared to the previous form of storing, it was difficult to purchase or sell physical securities as they used to be stacked together. Dematerialized securities are easily divisible electronically, making it easier to share any amount of shares at any time.

5 fact guide to understanding your fixed deposit

Ask any individual about their most preferred choice of investment option and everyone will indicate the fixed deposit. While there are plenty of reasons as to why this is a preferable option for investments, as compared to others, this is the least risky.

Additionally, you only need to put in a lump sum amount for a fixed time and earn interest during that tenure. In order to make the most out of your investment in this option, you will need to understand the factors behind it. Given below are a few important factors you can consider with this termed deposit:

Fixed returns: When investing in this termed deposit, your funds are parked in a particular bank deposit for a fixed period. The bank or financial institute where you are investing your funds in, will provide you with a fixed interest in exchange for holding your funds. This is the reason why the deposit is termed as a safe option. You will earn profit from this investment, through the form of interest. Depending on your profile or age, you can earn a higher interest. 

Tenure of your choice: With this term deposit, there is a variety of tenure which is available as per your choice. This term can last between 6 months to 10 years depending on your will. The longer you keep your tenure, the more interest you will earn.

Interest payout: The deposit of the interest earned can also be decided on your desire. This can be done when the deposit matures or even at regular intervals. Normally a bank or financial institute will offer a deposit of interest at quarterly, half-yearly or annual intervals.

Loan against your fixed deposit: When you are in immediate need for funds, there is no need to break your fixed deposit. In this case, you can always take a loan against the termed deposit and use it to satisfy your needs. However, the amount of funds that you withdraw is limited. It also depends on your financial profile and your relationship with the bank. Additionally, you may also need to pay interest on the funds that is borrowed.

Tax savings: Plenty of banks and financial institutes provide tax saving schemes along with fixed deposit services. In this case, the total taxable income that you earn is reduced by the amount you save in this deposit. The depositor must ensure that the tenure of the deposit is in between 5 years to 10 years. The maximum amount you are allowed to invest in such deposit for tax purposes is also fixed at 10 lakhs. However, the interest that you earn in this case will be taxable.

Steps to follow for an easy foreign currency exchange

When you travel abroad, there is always a concern how one can send money from abroad back home or even make any international business payments. For most of the time, this step if not a tedious one can also be a taxing one. Not only would you need to search for different banks, exchange providers or even walk the streets of unknown cities for the best conversion rates. Even a small miscalculated decision can increase your costing. In order to have an easy foreign exchange process, here are a few steps you will need to follow:

Step 1: Plan ahead

The first step you need to take is to check for the current mid – market exchange rate. There are plenty of tools that can assist you, which you can find online or even at the service providers. You will need to compare these rates and the fees offered by these banks or currency exchange services or online providers. Once you find the best deal, you can now take the next step to exchange your funds.

Step 2: Understand the foreign exchange costs

Different centers will offer different rates. At the same time, some foreign exchange costings will be transparent, while others are hidden. Therefore, it is important that you are aware of what you will be paying before you make the transaction. While these centers will take steps to ensure that they stay in business by earning profits, there are different options how they do it. One way they do so is through the means of commission, flat fees, handling fees, or even minimum charges. They also may include a spread in exchange rates by purchasing currencies and selling it at a marginal rate. Some centers may also charge based on transfer fees for wire transfers and other forms of delivery.

Step 3: Amalgamate your transactions.
Every currency exchange transaction is associated with costs. Few transactions can result in lower costing. Additionally, depending on the type of transaction you are opting for, you may save plenty of you funds by consolidating multiple fund transfers in one large transaction. In addition to this, some foreign exchange providers may even provide beneficial rates or offer lower commission fees for the currency exchange over a certain amount.

Step 4: Plan for banking overseas especially for extended stays

The above steps are beneficial for those who want to travel abroad for a short duration. However, if you are traveling abroad for a longer or permanent duration, you can consider banking overseas. Opening a bank account in the local bank will help ensure that you funds is not only secure but also provides you with a secure means to transfer funds on a regular basis.

What are the reasons that make forex cards a popular option today?

Over the last few years, plastic cash is becoming a popular option over physical cash. This also holds true when you are going on a foreign trip. In this case, you can always opt for a forex card. But what is a forex card? A foreign exchange card, popularly known as forex card allows you to make transactions in forex currency with the protection against currency conversion. Plenty of financial experts are recommending travelers to opt for this banking card when it comes to dealing with foreign currency as it offers plenty of benefits and helps you save more in the long run. Here are a few reasons as to why you should opt for this card today:

Widely accepted:

Forex cards have been widely associated only with luxury outlets such as high-class restaurants or shopping malls. However, of late, it is slowly being accepted even for small transactions such as travel and grocery purchases. Additionally, it also depends on the destination you are traveling to. If you are visiting a single country, it is best if you invest in a forex card with a single destination currency. With multiple currencies, you can opt for forex cards that offer you multiple currencies with additional perks.

Safer to carry:

From a security point of view, any banking card mitigates the risk of financial loss. This can occur in the form of theft or even the loss of your wallet. In this case, just like any other banking card, you will need to get your card hot listed. This ensures that your amount remains safe. At the same time, you can opt for a secondary backup card to use for such occasions. This secondary card can be activated when you contact the lender.


Hedge against currency fluctuation:

One of the main drawbacks of using your ordinary banking card for foreign expenditures is the currency fluctuations. As the currency conversion often takes place in real time, it is done with the currency conversion value of that time. Based on the volatile conditions of the market, there is a high chance you may face a loss. With a forex card, you have the added advantage of hedging against these fluctuations. This isdue to the fact that, the value of the forex amount loaded is determined based on the exchange rate of the day. This value remains fixed throughout the tenure of the card being used. Therefore, a customer can fix the forex value on the card, when the rates are most favorable.

Cheaper than buying currency

As compared to getting physical cash, opting for a forex card is cheaper. This is due to the fact that there is a considerable difference in the cost dynamics and logistics involved in both options.

Now that you are aware of what is a forex card, you can contact your local financial institute or bank to get this card for your next travel trip abroad.

What are the travel card benefits you should look out for?

Banking cards are omnipresent in today’s modern day society. Every individual uses them to make expenditures, right from cars to grocery purchases. But with so many choices of cards to opt from, it is tough to choose amongst the different options available. However, when it comes to choosing a card for travel purposes, the travel card is the ideal option for you. Here are some of the benefits you can look out for when it comes to this banking card.

Sign up bonuses

Center lenders provide a big sign up bonus, especially if you meet the minimum spending requirements. This is a great way to jump start your mileage account, especially if you are looking to redeem free flights later on. Therefore, look for the terms and conditions of sign up bonuses and see if you are eligible for them.

Spending bonus category

Certain credit cards can also be used as travel cards. In this case, when you use this card, you will get a point for a fixed amount of rupee you pay. However, certain credit cards will give you extra points, if you shop at specific retailers. This also works if it is a branded credit card if used at the same brand outlet. This will not only help you earn points fast, but also in multiple points. In this way, you can get to earn more points and thus redeem them for better travel perks.

Low minimum spending cards
Just as you need to satisfy a maximum amount in order to be eligible for certain perks, you may also need to satisfy a minimum spending requirement. The best way to achieve this target is to use normal day to day spending. Opt for cards that offer you to make a single purchase in order to unlock the bonus. As a first-time travel card user, it is best to opt for such a card. This will help you adjust your expenditures while managing your funds, as compared to high minimum spending cards. As you once you apply for these cards, you cannot reply for the same card. Therefore, you must take advantages of these benefits in order to make the most of it to your favor. Start small and learn to build up your ability to manage multiple cards shortly. Otherwise, you may end up spending more than you require just to earn the points which will not be free

Have special perks:

All travel cards offer great perks. While some travel cards provide you with special elite royalty statuses, other will offer unique perks. These perks can include foreign transaction fees, free checked baggage, and free nights amongst many others.

Why opting for a two wheeler loan will benefit you today

At a time where loans can be easily availed, the two wheeler loan is slowly catching up. And with the popularity of two-wheeler rising in the last few years, opting for this loan will now make your two-wheeler purchase a complete ease. With this loan, you need not shell out a one – time lump sum amount anymore. Additionally, you can opt for a well-suited repayment scheme which will be easy in your pockets.

The first step to getting this loan is to approach the right place for it. While there are plenty of banks that will offer you a two wheeler loan, there are other financial institutes that will offer you the same loan along with the same benefits. These offering can be made to suit your needs and budget. Each of these options will offer competitive interest rates and processing fees. However, you will need to make a comparison between two or more financial institutes to know which one will benefit you in the long run.

The other benefits you can get from these options include assessment of loan eligibility, convenient EMI calculations, quick approval, flexible options for repayment and transparency. You can even access special schemes which include low-interest rates, especially during festive or auspicious seasons.

When it comes to opting a two wheeler loan you have an option between a secured or an unsecured loan. Each of these loan options offers different benefits. While the secured loan, you will be required to submit a certain collateral such as property, gold or any other asset of equal value. However, the interest rate for this loan is often low. With an unsecured loan, you need to submit any collateral. However, with this type of loan, the interest rate will be high. At the same time, if your credit score is decent, you may get a good interest rate in your favor. Therefore, if you don’t want to offer a collateral, you must ensure that you have a strong CIBIL score.

As a part of the application process for the two wheeler loan, you will need to submit certain documents. The standard documents include formal or legal proof of age, income, and address. Identity documents in the form of voter’s ID, passport, driving license, ration card and such must also be provided. The lender you will be applying to will review these documents before moving forward with the application process. At the same time, salaried individuals will need to provide salary slips whereas business people or self-employed individuals must submit income tax returns. It is also important to be aware that documentation requirements, charges, and eligibility criteria may differ from one lender to another.

How can you benefit from a loan against property?

When it comes to applying for a loan, there are several factors you will need to consider. For one, you may need to review the requirement for the loan. Do you need the finance to pay off a previous debt or do you need it to purchase a car? While there is a financial requirement for both, the situation for each one is different. Opting for the right loan for the right situation is important. But in the occasion, you need the finances to satisfy multiple requirements; the loan against property is your best option. Here is how you can benefit from this loan:

Low loan rates

When it comes to acquiring funds to satisfy your financial requirement, you will also need the means to repay it. While there are several loans in the market, they may or may not satisfy your financial requirements completely. Amongst the different loans, the personal loan and the loan against property are the only loans that will provide you with the flexibility to use the finances for any type of financial requirement. However, the personal loans come with high rates, especially when it comes to the interest rates. In this case, the best alternative to such a situation is the loan against property. You only need to submit your property as collateral wherein which, you will receive a loan amount that will reflect your property value.

Multi – purpose loan

Plenty of loans are available in the market. However, each of these loans has specific function and are required to be used for specific needs. For example, a business loan can only be used for a business related financial requirement. In the same way, gold loans, home loans, and car loans function in the same manner. They can only be used for the purpose they have been provided for. However, in the event that you need funds for multiple purposes, the personal loan and the loan against property will be viable options for you. In this case, the loan against property will prove to be the viable option owning to its beneficial and low rates.

Best with short tenures

As a part of the loan requirements and features, certain loans come with certain tenure range. For example, home loan tenures can last between 10 years to 30 years. Similarly, other loan tenures last for lengthy periods of time. No doubt, a long tenure will provide the applicant with the convenient means to repay the loan. However, with long tenures comes high interest rate. But with low loan rates, the loan against property will provide you with the required loan amount and the means to repay back the loan in convenience.

All you need to know about multiple demat and trading accounts in India

There are plenty of online brokers that come with different plans. While some are offer only standard benefits, others offer different features and services. Keeping this in mind, plenty of individuals are opting for a demat and trading account to make the most of these benefits. However, experienced investors have started to opt for multiple accounts to get better benefits. Here is all you need to know about opting for multiple account when trading today.

Requirements of opening multiple trading and demat accounts in India

With the stock market becoming more favorable for investment, more and more investors are opting to open multiple demat and trading accounts. But when it comes to opening these multiple accounts, certain criteria must be satisfied. For one, it should be open with different brokers and DP services. You cannot open multiple accounts with the same broker and in the same DP service. Additionally, if the two separate brokers have accounts with the same DP service provider, they will not provide an account to the same person. In such case you need to link both your trading accounts with one DP account. In this case, each broker company is now opening their own DP services, therefore the chances of this occurrence is very low.

What are the advantages and disadvantages of multiple accounts?

When opening multiple demat and trading accounts, you can use specific features of brokers. You can also take advantage of free trading platforms, especially if you make regular transactions on a daily basis. You can take advantage of the margin money with different brokers based on different segments. Additionally, in the occasion that you face a technical failure from the broker’s end on one particular account, you can always switch to the other account and easily hedge the trade. However, while there are plenty of benefits to opening multiple accounts, you will also need to take into account the annual maintenance charges for multiple trading and DP accounts. You will also need to keep track of the different demat and trade account along with the log in details and the tax documents for them.

Mapping multiple trading account with one DP and bank account

You can use one DP account to map multiple trading account. However, when it comes to selling stock in your account, you can only use a POA trading account. At the same time, when it comes to withdrawing or deposit your funds, you can use one bank account to be linked to multiple trading accounts.

As you can see, there are plenty of benefits and disadvantages to this account. You only need to decide the account as per your preferences and affordability expenses. Therefore, the solution here is to open up additional accounts, if only you have a requirement for it. Additionally, you must ensure that these accounts are kept separately.

Are you aware of these bank loans in India?

At some point in life, every individual will have a financial requirement which is well beyond their income. This can include a purchase for a particular item, or even sponsoring an education term or a purchase of a house. In each situation, the financial requirements will be different. This is where bank loans will play an important role. Plenty of banks and banking institutes have recognized this need and provided a variety of loans that will suit all these requirements. Here is all you need to know about the bank loans in India:

Secured loans

Secures loans take up one of the largest sector in loan provision by a bank. Through this loan, the loan amount is provided on the basis of the security that is pledged. This pledge must be an asset of equal value. This step is taken by banks to reduce the risk factor associated with defaulting on a loan. In the event that the borrower does not repay back the borrowed funds, along with the required added interest, the asset that is pledged will be forfeited. However, while the borrower may be required to provide a security, this is one of the best loans for large amounts. The loans in India also offer lower rates, higher borrowing limits and longer repayment terms as compared to unsecured loans. Some of the examples of this loan includes gold loans, car loans and even home loans.

Commercial loans

Plenty of upcoming, small or even large MNCs are faced with various financial requirements, which is insufficient by their income alone. This can include expansion of the business, or product line, or even financing a new upcoming venture. This can include financing an acquisition of another business. In such occasions, these business may not have the means for a direct access to the debt and equity market and therefore will not have a large aces to finance their ventures. The only way they can fulfill these financial needs is through financial aid. Through this loan, the financial advance you will receive can only be used for business or commercial consumptions. Under this category, you can get the business loan, land loan, construction loans and even the SME loans.

Other loans

There are some loans in India that do not come in either category. However, they still have certain criteria you will need to satisfy in order to receive the financial aid you would want. For example, rural loans are provided to individuals who reside in the rural area. These individuals require special loans that will help aid in their profession, such as the agriculture industry.This advance credit it tailored to suit the needs of these individuals perfectly, in terms of flexible interest rates and repayment period.

Key benefits to private banking

Not everyone’s financial income and needs match evenly. But to make the most of your income and your needs, you to choose an investment option that will match your needs. However, high net worth individuals normally accrue far more wealth than the average person. Therefore, they have the means to access a large variety of conventional and alternative investments. Private banking is designed to match the needs and requirements of these individuals with customized options. Given below are the key benefits of private banking and you as a high net worth individual (HNWI) can benefit from it.

Service designed around your finance

As mentioned earlier, a level of wealth above the standard range requires specialized management. When accessing a private bank, the services normally include a personal manager; you will not only help you look after your finances but also advice you on the best investment options. These individuals will also act as your personal contact and work closely with you. Specialists are also provided to understand your need and develop an individual financial plan, enabling your to enjoy your wealth today and into your near future.

Trusted relationship

With a large wealth at stake, every decision to you takes to invest or plan crucial. Even a single wrong decision or investment option can lead to immense loss, which in turn can affect your overall wealth. But with private banking, you have complete access to a range of financial experts who keep in mind the big picture of your financial requirements and needs. These individuals will draw up a financial plan designed to help you, your business as well as your family to flourish shortly.

Personal wealth management service

Only the best of financial advisers will be found in the private banking service. These individuals will be available to support your banking, finance, and investment solutions. Whether you would want to invest in a long-term strategy, plan for own or your family’s future, or even consider the business and personal finances separately or together, you will have only experienced individuals who will assist you.

Best access to product and services

Private banking not only allows you to invest and manage your funds, but it also provides the best means to utilize your funds for any expenditures. Additionally, you will also have access to plenty of products and services lent by the investment institute. However, this depends on certain criteria’s such as your circumstances and your relationship with the bank. At the same time, certain security investments must also be satisfied in order to access these products and service.

What are the factors that determine the best credit card in India?

The concept of having convenient access to a large sum of funds can often terrify a person or even overwhelm them with self-indulgence. A credit card, for that matter, is the perfect tool that allows individuals to purchase products of large sums on borrowed funds from the bank or financial lender. However, at the same time, the credit card user will also need to repay back the borrowed funds, albeit with an added interest after a particular period.

However, with the right financial responsibility and the ideal credit card, you will be able to make financial expenditures that are financially viable to you. While the financial responsibility lies on your habits and decisions, choosing the right credit card needs careful consideration, especially with all the credit card factors offered by the lender. Here are some of the important factors you should take into consideration when choosing the best credit card in India:

Interest rate:

If not the most important, is the most imperative factor that needs to be taken into account when opting for a credit card. This interest rate, also known as the annual percentage rate in the terms of credit cards, is the rate of interest charged to the credit card on an annual basis. This charge is calculated on a part or full portion of the unpaid balance. Before applying for a credit card, always check the interest rate offers along with the possibility of hidden costing.

Credit card limit

The credit card limit on a card determines the maximum amount the lender will let you borrow on a single card. This limit is decided based on your income, assets, and current credit score. When applying for this credit card, you must ensure that your limit isn’t too high, as exceeding the limit can incur a penalty for extra expenditures.

Fees and penalties

A credit card comes with a variety of fees and penalties, which differ on the lender. Some of the fees that are included with a standard credit card include annual fees, joining fees and late payment amongst many others. You should also be aware of hidden fees, by diligently going through the credit card terms before applying for it.

Incentives and rewards

Apart from other factors of a credit card to consider, rewards and incentives are two factors you can look forward to. The best credit card in India do come with plenty of these programs, but it depends on the lender that is providing you with the credit card. The best way to make the most of these incentives and rewards is to opt for a credit card that matches your lifestyle. You can even ask your lender for an upgrade after a certain period.

Get full funding with the best car loans in India

Plenty of individuals dream of owning a car. However, with the possibility of increasing and additional expenses makes it difficult purchase a car. But the availability of a loan, such as a car loan, will make this purchase easy.

But like any other loan, there is a considerable difference it the loan amount you will apply for, and the loan amount you will get. With the right financial profile, you can get at most 80 to 90% of the value of the car, as the loan amount. You can even get 100% if you only take the right measures.

Here is what you need to do to get a full funding for your car loan:

Get the optimum credit score

Like any other loan application, your credit score will play an important role in determining your eligibility and loan amount. This credit score is a valid proof of your financial stability as well as your financial history. A good credit score of over 650 will get you an affordable loan. However, a credit score of more than 750 gives you a higher chance of getting a full funding for your car purchase. Since most cars have a value of more than ten lakhs, a full funding by a financial institute may be a risky investment.

Therefore, these financial institutes would opt for a credit score that is nearly perfect, in order to reduce the risk of the loan applicant, from defaulting on the loan. In order to get the best credit score, you can start planning for it, as soon as you start earning. Taking credit or debit cards with small limits will help build your credit score over time, to near perfection. Alternatively, you can take measures to eradicate errors from your credit score, which in turn can affect you loan application.

Approach the right institute

Apart from the credit score, the right institute will also provide you with the best loan options. For a car loan, you can always approach a bank, financial institute or even a dealership for the best loan. You will need to check their individual requirements and offerings. Do enquire about the requirement for a full funding if possible. As most institutes or dealerships will find a full funding as a risky investment, there will be plenty of criteria you will need to satisfy. Having a previous relationship with the institute will help you get a better chance of a good loan. Additionally, if you are opting for a car model that is considered a low risk by the institutes themselves, then you will have a higher chance of a good loan deal.

Personal finances

Your own finances will play an important role when it comes to this kind of car loan. In order to suffice a full funding, you need to have the required financial income to support it. This would include a steady and high income.

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

When it comes to the different loans available in the market, the personal loan has been a popular option for plenty. Not only does it offer a financial variability, but it also requires a short loan processing tenure, making it the most accessible loan. However, at the same time, you will need to expect certain disadvantages to this loan. Some of the drawbacks of this loan include high-interest rates and short tenures. Apart from these features, there are plenty more you will need to consider. Given below are a few important factors you will need to consider when it comes to applying for a personal loan.

Shopping for better rates is essential

Shopping around for different personal loan rates may seem like a tedious job. However, it is crucial that you take such a step as it not only offers you a wider opportunity to get the best of rates but also the leverage to negotiate for better rates. Additionally, if you apply for these loans only to check for the rates, it can affect your CIBIL score, which in turn can affect your credit score. To get an overall view of your loan and how it can affect you, you can always use the personal loan EMI calculator for better clarity.

Consider your needs over eligibility

You must focus on your financial needs over your eligibility. If you need a fixed amount to satisfy your financial requirements, apply for a loan of that same fixed amount. Plenty of times, banks, and financial institutes can review your eligibility and offer you loan rates that are higher that what you need. While this extra financial aid will provide you with the convenience of funds, you will still need to repay the borrowed funds, the interest calculated on the principal amount as well as the additional charges. A personal loan EMI calculator will provide you with the calculated results of the different loan amount, as is the best tool that you can use to check whether you can afford the loan or not. After all, a personal loan may be the most convenient loan, but it is still the most expensive form of debt.

Ensure that you can afford the EMIs

While you may be able to afford the overall loan with the added interest and the additional charges, at the same time, you need to manage the EMI’s to repay this borrowed amount. You must be honest with yourself, after all, only you would be aware of your repayment capability better than anybody else. Use the personal loan EMI calculator, to calculate the different rates required to afford the EMI of your loan. If you can adjust the loan tenure or the interest rate to suit your needs, go for it.

Why should you use your credit card for online transactions?

Banking cards are a great convenience in today’s day and age. One of the main benefits of these cards is that it can be used for cash payments as well as cashless ones. However, amongst the different banking cards, the credit card has proven to be the most favorable one. It is used as a vehicle for both online as well as offline transactions, making it one of the most convenient tool. Here are different reasons as to why this makes a noteworthy tool for your online transactions today:

Get cash back and rewards for every transaction:

One of the main features of the credit card is usage of borrowed funds. Most credit cards provide you with a fixed days of not more than 45 days to pay of any incurred expenses. However, while you may use the borrowed funds to make a purchase, at the same time you ca get cash back offers on selected purchased items. These offers allow you to make purchases on a wholesaler’s price, which is the best solution for those who want to safe funds. At the same time, your card will also allow you to earn credit points, which can be later redeemed for other items for free.

Online purchases, payments and fund transfers:
Plenty of e – commerce websites have been coming up over the last few years, providing you with several opportunities to shop online for clothes, travel trips, accessories and other similar products. By using this card, you can purchase these items, especially if there is a great deal on offer. You can even use your card to pay bills, without requiring you to leave your home or workplace. With such online payment methods, you bills will be paid in mere minutes rather than in hours as it would take through the traditional route. You can even use your credit card to fund transferred from one location to another. You can even use this form of transfer for local transfers or international transfers.

Opt for customized cards:

Financial habits often reflect the financial needs of the individual. Therefore, not all generic credit cards will suit your financial needs completely. This is when you can apply for credit cards that are customized to suit your needs financially. These cards offer better rewards and discounts. Based on your income, your spending habits and your current debt, you can easily apply for any credit card that will suit your needs to perfection.

This form of plastic money has made all our lives considerably simple. Additionally, using the automated ECS transfers, you can simplify it much more. Through this card, you can avail numerous banking services, without visiting any financial institute.

Are you aware of this personal loan trick?

During some point in your life, you will face a situation, where you may require finances. In such a case, you can opt for a loan. A personal loan is designed to provide you with several benefits, especially since it can be used for multiple purposes. You only need to submit the right documents while also ensuring that you satisfy the required eligibility factors. However, at the same time, you must be aware of the different factors that can affect your loan. To assist you in getting the best loan, you must be aware of these tricks:

Credit history plays an important role

The credit history compiles of the record of an individual’s financial history. Through this credit report, an applicant’s financial past can be reviewed, especially if there are any late payments or current debts. This history is held in the form of a score, which the banking institute refers to, when considering your eligibility for the loan. You can also get an insight to how much of a loan you can expect by using the personal loan calculator to your advantage.

EMI calculator

In order to get the best personal loan, you will first need to research on the market. Plenty of institutes offer a variety of different loan packages, each designed to suit the financial requirements of different audiences. However, when opting for any of these loans, you need to consider the different variants pertaining to the loan. They include the repayment tenure, interest rate and the principle amount amongst many others. But while these factors can chance according to the market conditions, tools such as the personal loan EMI calculator will help assist you make a decision.

Employment

Your employment plays an important role when it comes to taking a loan, especially when it comes to the personal loan. As this loan is an unsecured loan, there is no requirement to provide collateral. However, to compensate for this financial risk, loan providers often provide a high-interest rate. Your income determines how well you can manage the overall loan, especially if you need to pay a high EMI. Additionally, there is a considerable difference between the loans provided to employees as compared to self – employees. In addition to this, your job profile also plays an important role. Government employees are more likely to get a better loan deal as compared to other applicants.

Apart from these factors, there are plenty more you can refer to. However, it is crucial that the loan you opt for and the loan features satisfy your financial needs before you proceed with the application.

What are the main reasons that can change your EMI during the loan tenure?

A loan is a great way to satisfy all your financial requirements, especially if you require a large amount on short notice. While the loan application process has now been made easy, there are certain factors you still need to consider. For one, the EMI of the loan needs to be considered.

Equated monthly installments, known as EMI, determines the amount you will need to pay on a monthly basis in order to repay back the borrowed funds, along with the added interest. By using the EMI calculator, you can calculate the ideal amount that suits your needs while allowing you the flexibility to repay back the loan. However, at times, this EMI amount can also change during the tenure of the loan, which can affect your repayment process. But in order to be prepared for such a situation, you must understand the reason as to why this can occur. Given below are a few reasons as to why your EMI can change during your loan tenure:

Interest rate on your loan changes

Different loans come with different interest features. Loans such as the home loan come with an option of floating rate and fixed rate. While the floating rate depends on the current financial market conditions, fixed rates depend on the market condition at the time you are applying for the loan. Therefore, if you opt for a floating interest rate, the rate will be reset, depending on the lender you have approached for the loan. When this change occurs, it will also affect your EMI’s. By using the EMI calculator, you can calculate the possibility of each change that can occur for your interest rate. At the same time, you instruct your lender to adjust your loan tenure as opposed to your EMI in order to compensate for the modification.

Prepaying the loan

Plenty of lenders offer the feature to prepay a loan well before its loan tenure. However, EMI’s are calculated based on the principal amount, interest rate, and the loan tenure. In this case, the principal amount will be lowered, whereas the interest calculated on the new principal amount will change. In other words, prepaying your loan will change the loan tenure, which in turn will change the EMI’s. However, at the same time, you may need to pay a prepayment penalty, which can depend on the amount you pay prepay. To avoid such a situation, you must use the EMI Calculator and calculate the ideal amount that will prevent this situation.

You opt for progressive EMI’s

Some lenders offer the benefit of repaying a loan through staggered EMI’s. Through this process, you can opt for a fixed EMI for a particular tenure. After the term has passed, you will need to pay larger EMIs. This is an ideal option for individuals who have just started to work and are unable to afford large EMIs until they grow in their profession.

What are the main reasons that can change your EMI during the loan tenure?

A loan is a great way to satisfy all your financial requirements, especially if you require a large amount on short notice. While the loan application process has now been made easy, there are certain factors you still need to consider. For one, the EMI of the loan needs to be considered.

Equated monthly installments, known as EMI, determines the amount you will need to pay on a monthly basis in order to repay back the borrowed funds, along with the added interest. By using the EMI calculator, you can calculate the ideal amount that suits your needs while allowing you the flexibility to repay back the loan. However, at times, this EMI amount can also change during the tenure of the loan, which can affect your repayment process. But in order to be prepared for such a situation, you must understand the reason as to why this can occur. Given below are a few reasons as to why your EMI can change during your loan tenure:

Interest rate on your loan changes

Different loans come with different interest features. Loans such as the home loan come with an option of floating rate and fixed rate. While the floating rate depends on the current financial market conditions, fixed rates depend on the market condition at the time you are applying for the loan. Therefore, if you opt for a floating interest rate, the rate will be reset, depending on the lender you have approached for the loan. When this change occurs, it will also affect your EMI’s. By using the EMI calculator, you can calculate the possibility of each change that can occur for your interest rate. At the same time, you instruct your lender to adjust your loan tenure as opposed to your EMI in order to compensate for the modification.

Prepaying the loan

Plenty of lenders offer the feature to prepay a loan well before its loan tenure. However, EMI’s are calculated based on the principal amount, interest rate, and the loan tenure. In this case, the principal amount will be lowered, whereas the interest calculated on the new principal amount will change. In other words, prepaying your loan will change the loan tenure, which in turn will change the EMI’s. However, at the same time, you may need to pay a prepayment penalty, which can depend on the amount you pay prepay. To avoid such a situation, you must use the EMI Calculator and calculate the ideal amount that will prevent this situation.

You opt for progressive EMI’s

Some lenders offer the benefit of repaying a loan through staggered EMI’s. Through this process, you can opt for a fixed EMI for a particular tenure. After the term has passed, you will need to pay larger EMIs. This is an ideal option for individuals who have just started to work and are unable to afford large EMIs until they grow in their profession.