All about NRI Banking

What Exactly Is NRI Account?

As the name suggests, Non-Resident Indian, an NRI account is basically a person that has an account in an Indian bank but is not an Indian resident. An NRI banking account is offered by a number of banks. It is a great option for all your banking needs. In fact, it is a handy tool.

Banks offers various NRI banking options. Various products and services are provided that help in your NRI banking. There are a number of benefits associated with NRI banking. Some of them includes:

• Convenient banking solution – One of the significant advantage related to NRI banking is that it offers access to the banking system completely depending on the foreign and local needs. Furthermore, you can rely on it for quick financial transfer and even currency exchange.

• Time-saving – Another benefit offered by NRI banking is that it offers quick and easy access to the funds. This further ensures that you do not have to ring your Indian friend for any financial needs.

• Interest rate – You should also know that NRI banking accounts also offer an ability to compare the interest rates. It also provides an excellent earning potential between both abroad and home. 

Types of NRI Accounts

There are two major types of NRI banking accounts such as:

• Non-Resident External Account (NRE) – This type of account is defined when you deposit foreign currency while opening your account in an NRE account.

• Non-Resident Ordinary Rupee (NRO) – This type of account is called when an Indian who is going abroad with the intention of becoming an NRI.
What to Consider When Opening an NRI Account?

Following are the steps one need to consider when opening an NRI banking account:

• Choosing a bank – This is one of the major and the first step towards opening your NRI account. With so many banks offering this option it is wise to make a right choice. Choose the bank that meets your banking needs and requirements. One major aspect you need to keep in mind is to know whether the bank is authorized by the Reserve Bank of India (RBI).

• Account type – Now that you know there are two major NRI account types, choose the one wisely. Keep all your aspects in mind when making a choice.

• Online and offline banking experience – You will find banks offer both online as well as offline NRI banking solution. Ensure you apply for online banking too as it is convenient and hassle-free.

You will have a lot of people calling to open an NRI making. Stay away from these people as they might be fraudsters too. One of the best ways to open your account by visiting the bank. No matter which foreign place you reside in, the NRI banking solutions ensure you have economic links forever.

What should you do when you transfer money to the wrong account?

Transferring fund from one location to another requires careful consideration. This is no different for those sending money to India. But there will come a time, where there is a chance of sending funds to the wrong account. This can occur due to human error, discrepancies in the account number, IFSC code or both, or even a technical glitch from the banking institutes end. In this case, the most important thing to remember is that if a transaction has been made, it cannot be reversed without approval from the beneficiary.

When this occurs, surely you would not want to run around from pillar to post to get the transaction reversed. So what do in when this occurs? Here are the steps you need to take:

Take a quick action

The first step you need to take is to inform the bank or the bank manager as soon as the transaction has been made. In the occasion you have entered a bank account that does not exist, the funds will automatically be returned to the account. However, if the account number you have entered exists, then you must contact your bank manager. You must then provide relevant evidence that you transferred your funds to the wrong beneficiary’s account. If the unintended beneficiary and the intended beneficiary share the same name, you will need to prove the transfer itself was wrong, even before the bank could provide assistance. The action that bank will consecutively take will also depend on the type of bank account you have sent to. If the unintended bank is of the same bank, the bank will act as an intermediary to transfer the funds back to the original account or reverse the transaction. However, if the beneficiary is of another bank, then you would be required to approach the bank and meet the manager to get the ideal solution. During this process, ensure that you detail all the steps and process you have undertaken. Emailing the details to the respective parties is one way to keep yourself and everyone in the loop.


What if the wrong beneficiary refuses to return the funds?
If you are sending money to India to an account, where the account holder refuses to send funds back home, here are a few steps you can follow:

• The first thing you must remember is that you cannot take back the funds without the consent of the wrong beneficiary. In this case, the beneficiary must accept that the transaction made was a mistake.
• In this case, you must contact your bank immediately and ensure that they are aware of the update.
• Keep track of your complaint
• You can then seek legal help to gain back the funds if required. This will be a complicated process, especially for international transfers.

The best way to avoid such a situation is to be aware of all the data you are inputting before you make the transfer. Additionally, always cross check all the details before going ahead with the transaction. After all, it is your hard earned funds.

RFC: the ideal financial solution for returning Indians

As Indians who are traveling back home permanently, considerable planning would be required to be undertaken. This is no different for the financial investments one has made. But instead of transferring all the funds to the local account, you can convert the account into a resident foreign currency account, also known as RFC. This foreign currency account is ideally the best choice for NRI’s who want to park their foreign funds in India while availing its advantages on returning home.

Given below are the attributes which are specific to this foreign currency account and how it can benefit a returning NRI:

Who is eligible to open the account?

Banks and financial institute’s only offer this account if they satisfy certain eligibility criteria. They include:

• Any resident Indian can open this foreign currency account in any freely convertible foreign currency.
• Returning NRI individuals who have stayed abroad for a continuous period of a one year or more.

What are the different foreign currencies that can be maintained in the RFC account?

As previously mentioned, the RFC account can be open in any freely convertible foreign currency. They include currencies such as the Australian dollar, Canadian dollar, Euro, Great Britain Pound, Japan Yen and the US dollar amongst many others.

What kind of funds can be deposited in this account?

Funds from selected sources could have been deposited in this account. They include:

• Any funds retained in any foreign bank account, in the local foreign currency.
• Any funds that are earned through business or employment abroad. This can also include income earned through interest or dividends.
• Any funds received in the form of superannuation or pension received from a foreign employer.
• Foreign exchange funds that have been received from the sale of assets such as shares, bank accounts, immovable property or any other form of investments held by individuals outside India.

What is the range of interest rates that can be expected in the RFC account?

The RFC account can be held in different forms. Depending on the different forms the interest rate will differ. It also depends on the tenure as well as the currency. This account can be held in:
• term deposits
• current accounts
• saving accounts

What are the tax implications credited in the RFC account?

As per the Income Tax Act, Section 10(15)(iv)(fa) of the Income Tax Act,the interest earned on foreign currency deposits in any Indian Banks is exempted for non-residents and Resident but not Ordinarily Resident. Most returning NRI’s are considered as RNOR’s till their status is changed to resident.

What is Money2India?

There are plenty of services that allow you to send funds from different countries to your home country in India. Amongst these various options available in the financial market, the online money transfer service is one of the most popular services.

Plenty of banks are offering this service, through the transfer platform known as the Money2India. As the name suggests, it specializes in offering online transfer services from several yet selected countries abroad to India. As compared to the other online services, this platform has plenty of benefits and other additional services, which have been mentioned below.

How can you send money overseas with Money2India?

Plenty of banks within India possess this platform, which allows you to connect from one bank to another. Thus, you can easily send funds overseas, by using this Money2India platform, to over 100 Indian banks. The first step you need to take is to open an account, by filling a registration form and providing:
• Details of your resident country
• Details pertaining your identity
• Contact details

How can you send money to India through this platform?

There are two methods wherein you can send your funds back home. They include:

• Express online transfer: This service is normally offered to selected users. You can use this service to transfer funds to the account within the same bank, or to another bank. However, the time take for each service will be different. You will also have additional benefits depending on the amount of funds you are sending. For example, if you send more than 50, 000 INR you can get a transfer free service. However, any amount less than that will attract a small amount of transfer fee. To opt for this kind of transfer, you will need to log into your account and select the relevant option. You will also need to fill in the relevant details of the recipient and enter the details of the funds you would want to send. Once the transfer has been made, you can review the details of your transfer and send your funds. You will also be given a tracking number that will allow you to monitor the progress of your transaction as per your convenience.

• Normal online transfer: The e – transfer offer is nothing but an automated clearing house transfer option that provides a guaranteed transfer. Normally, it offers the same fee structure as the previous option wherein you will need to log into your account, and provide bank account details of the sender and receiver. The platform will then initiate small transactions from the sender’s account in order to verify your details. Once this process has been completed, you will be provided with details of your transactions.

NRO account: All you need to know about fixed NRO fixed deposits

The NRI account is an ideal option to consider investing funds from abroad or from the resident country. Amongst the different options that are available, the NRO account fixed deposit is one option to consider, especially when investing funds for a long-term purpose. This type of NRO account is best used to manage income that is earned in India through the form of dividends, rents or even pensions earned from other countries.

The funds that are invested in this account is held in the local currency, which is INR. Not only does it make it convenient to consolidate earnings from India, but it also makes it easier to access the funds in the local currency. Additionally, one of the main features that the account holder must be aware of is the repatriate limit for the financial year, which is about 1 million USD.

Apart from this, there are additional features of this type of NRO account that must be taken into consideration. They include:

• Taxation: This FD attracts taxes as per the Indian laws. As per the Income Tax Act, 1961, the interest earned on the account is over 30%. Therefore, careful consideration must be made when investing in this account so as to ensure that the amount invested does not attract taxation.

• Repatriation: NRO fixed deposits do not offer the option to repatriate funds, especially on the principal investment. However, the interest earned from the NRO fixed deposit can be transferred to another foreign account.

• Joint account: The NRO account can comprise of a single or joint account holders. However, an NRI account holder can hold a joint NRO account only with an Indian resident citizen.

• Deposit and withdrawal: Funds that have originated from India can only be used to open an NRO account, which in turn can be used to open an NRO fixed deposit. However, no funds from abroad can be used to open the NRO fixed deposit. But, funds from an NRE account can be transferred to the NRO account in order to open a fixed deposit account. If the account holder would want to withdraw funds from the account, it can only be withdrawn in Indian rupees.

• Interest rates:  The interest rate involved in the NRO fixed deposit account will differ according to the current market conditions, as well as the bank you are applying in. Therefore, before opening the account, you must first check the available rates to know which the best one to suit your needs is. The maturity of such a deposit can last anywhere between a year to 20 years.

NRI and income tax: Rules you need to follow

No doubt, as an NRI, you will have unrestricted access to plenty of facilities and amenities, which also includes several financial opportunities. At the same time, you will also have the opportunity to invest in several financial options back home, such as an NRI account or deposit.

However, like an Indian resident, you will be required to pay certain income tax. Here are a few rules you need to keep track of, about the income tax:

• As per the current government regulations, an NRI will have to pay tax on any income that is accrued or raised in India or even received in India. Therefore, income that is earned through salary, rental income, interest income from a fixed deposit or bank account is taxable. Even capital gains on any asset that is sold come under this category. If the income of an NRI is more than the exemption limit in the financial year, the individual is liable to file returns in India. In order to claim tax refunds or to carry forward any losses in the future, the individual will be required to file returns.

• If an NRI returns to India permanently after spending a fixed amount of years abroad, the foreign income that is earned is not taxable immediately. In this case, an individual who has been a non – resident for nine consecutive years will remain an RNOR, which is a transition between an NRI and a resident. As per the government regulation, any income which is earned outside the country will not be taxed, unless it is a business or profession that is controlled from India. Once the status has been transferred to a’ resident’, the international income that is earned will be taxed in India.

• Previously, an NRI would be required to pay TDS if the individual did not possess the PAN document. The TDS would be charged at 20% or the rate in force, whichever was higher. As per the current budget, there is no requirement to pay TDS if no PAN documents have been provided. However, certain set of documents under the recently notified rules, must be provided to avoid paying TDS.

• NRI’s cannot open a public provident fund, which is the PPF. However, if the individual has already possessed a PPF account previous to becoming an NRI, the account can be held only until the time of maturity. At this time, the account will not have the option to be extended, whereas the funds would have to be remitted in the NRI account, in the country of residence. In case, post maturity, the account is left unattended; it will be considered as "extended without contribution.

What are the tips to keep in mind when transferring funds abroad?

Transferring funds from location to another will be a stressful process, especially if you are doing it for the first time or if you are sending a large amount of funds. On the contrary, when you know a bit of the ins and outs of international money transfer you can rest easy, knowing that you have the possibility to save funds and time while enjoying a peace of mind as well.

Being aware of how to make a transfer will require a few components, namely, keeping track of your affordability, safety, security, reliability, knowledge and common sense. At the same time, you can follow certain tips to ensure that you have a smooth and successful money transfer. They include:

Being aware of the current exchange rates: With the international money transfer, most individuals are unaware that the biggest fee comes the exchange rate itself. This is based on the interbank exchange rate, which is used by major international banks to trade amongst themselves. Additionally, it also affects the overall money transfer, exclusive of a fixed sending or receiving a fee. However, very few members of the public will have access to the interbank rate or are even aware of it. By being aware of this rate, you can calculate the best rate for your financial transfer. 

Be aware of transfer fees: One of the main factors you need to be aware of is the transfer fees. Transfer fees can be added to the transaction from the sender’s side or the recipient’s side. The best way to benefit from this service, is to look out for a bank or financial institute that will provide you with reasonable or discounted transfer fees, especially for overseas payment.

Be safe and secure: All banks and financial institutes are regulated by a particular financial body that regulates all transactions and services about any financial facilities. Before you opt for a transfer service, check for the safety regulations followed by these institutes and if they comply with the local or international standards. At the same time, ensure that you can easily contact the customer service team, without being diverted.

Review the reasons why you are making an international money transfer: There are plenty of reasons why you would be in a position to send funds abroad. They can include:

• Purchasing a property for your retirement years
• Facilitate a business that involves international customers or suppliers.
• Facilitating the expenditures of a college student who has resided abroad
• Sending and receiving invoice funds as a freelancer
• Financing a family event
• Financing purchases during auspicious events or festivals.
• Or even relocating for work.

Based on your requirement you can opt for a provider that will handle your type of money transfer, thus providing you with the peace of mind.

How can you benefit from choosing the right money transfer service?

You could be individual who has settled abroad who has to send funds on a regular basis home. Or you can even be a student who is studying abroad who requires a regular income to manage the daily expenditures. In similar ways, there are plenty more individuals who would require funds or need to send funds abroad. In this case, you would want to opt for a money transfer service that would suit your requirements.

However, with plenty of money transfer services available in the financial market, how do you choose the right one? Neither would you, or the recipient would want to sit around and wait till the money transfer goes through. Neither would you want to sit and wonder how long your delay with last. Therefore, it is important to know what money transfer services are available, and how they can benefit you. Bymaking a transfer service comparison, you will be able to know the best way to send or receive money from abroad or from your own country. Here is how you can benefit from comparing all the available options:

• Save money: Have you ever compared flight details before opting for one or even something as simple as comparing grocery items before making a purchase? The main purpose of this function is to save funds. So why shouldn’t you compare money transfer services before making a choice? By doing so, you can save a lot on your funds for long-term transactions. Additionally, certain comparison services are 100% free.

• Save time: In today’s age, ‘time is money’ is true, especially when it comes to transferring funds on a regular basis. You would not want any delays in your transactions, especially if there are bills or fees to paid. Plenty of money transfer services offer express services, which can are relatively cheaper than losing out a on deadline.

• Avoid hidden fees: Although plenty money transfer services offer ‘zero fees’ solutions, they rarely exist. Only co – operations will actually make the calculations for you. Therefore, ensure that you are aware of the possibility of these ‘zero hidden fees’ and get clarity on them.

• Look out for special deals and discounts: Plenty of money transfer services recognize the need to send funds during special times, events and functions. At such times, these services offer great deals for all your money transfers. Alternatively, they will offer deals and discounts if you register with the service for a long term purpose.

• Transparent services: Transparency in the services offered will provide you with an understanding and awareness of what is available and what can suit you. Through this transparency, you can get an understanding of what services can benefit your and how much you can save in the long run.

Tips for Safe Online Money Transfer Experience

ney transfer solution. It is one of the best ways to send money to any account without any hassle. This has even led to its growing popularity. Some banks offer the option of online money transfer. Have you ever given a thought whether your online transfer is safe? The growing popularity of the online financial transactions is also constantly prone to attacks. Well, you can have a safe online transfer experience with these safety tips.

Avoid Using On-Screen Keyboard

One of the easiest ways to predict a password is when you use the on-screen keyboard. You might think if is a feasible option but you should know it is recorded by key-loggers. A key-logger can be anything whether hardware or even application. It does the work of recording and passing the information of all the keyboard taps you made. This is further used to know your username and password.

Use Random Password

You have told a lot of times to avoid using passwords that are easy to predict. Pick out any random password. Ensure your password is not your name, your birthday, your family or loved one’s name, your pet's name and so on. They are easy to predict. Instead, you can pick the first letter of the long sentence. The sentence can be anything like I proposed my girlfriend on 10th December, well in this case the password would be ipmgo10D. This is not an easy to guess the password. Try to use the number and other symbols. Ensure the caps lock in the password is not the first letter.

Clear the Cache

It is of paramount importance to clear the cache as and when you visit an online money transfer website. Browsers tend to save the pages you have visited which further makes easier to access the next time. However, clearing the cache ensures no one views your online banking account information which is confidential. Also, make sure not to consider the option of remembering you on this computer that automatically saves your confidential information.

Always Visit the Website to Log into Your Account
You might receive a lot of emails from your banks. It is wise that you do not follow these links to access your account. This is how phishing works. It directs you to a malicious site that resembles your bank's website and gathers all the information provided by you. One of the best ways to spot this aspect is if there is an unlocked padlock or unbroken key symbol. A trusted website tends to be secured through an encryption process.

Well, these are just some of the safety tips one need to consider for secured online money transfer experience.

What are the factors to consider when making a money transfer?

Making a money transfer today will seem like an easy process today. You can log online onto your bank website and input the amount you need to send. You can even approach a money transfer institute and opt for the money transfer you want to make.

However, there is more to clicking a button or approaching a money transfer institute to make the required transfer. Are you aware you can spend more on your transfer fees over your transfer amount, or that you may have to pay extra charges depending on the pick-up location and method?

Apart from these factors, there are plenty more that can influence you money transfer. Therefore, if you are going to make a transfer, here are a few factors you need to take into consideration. They include:

Exchange rate: This is one of the most important factors if not an imperative one when it comes to opting or making a money transfer. Whether you are making a money transfer to India or any other country, you must first check the exchange rate of the value you are sending. Exchange rates can change in a matter of hours. Therefore, today’s value will not be the same as tomorrow. Therefore, to avoid the possibility of overspending on your transfer, check the exchange rates.

Transfer fee: Each institute charges a service fee for making a transfer. Plenty of banks and financial institutes mostly offer rates and discounts on this factor, so it is a good idea to take a look at it. In most cases, the transfer fee depends on the amount that is being transferred or the location that it is being transferred to.

Pick up method: Some receivers prefer to collect their transfer through particular modes or even have them deposited at particular locations. If the bank or financial institute does not offer the standard pick up methods, they will offer additional charges for any other drop op service.

Payment method: There are different ways you can make a money transfer. This can differ from the online transfer, cash deposit or even cheques. Each of these options will attract different fees or payments. Therefore, it is crucial that you check each available option before you make the transfer.
Transfer time: The transfer time can vary depending on the payment and collection methods. It can also differ in the location you want it to be sent to.

Therefore, if you need to make an urgent money transfer to India or any other country abroad, you will need to take into consideration the transfer time that will suit your needs, or you want to reduce it.
Apart from these factors, there are plenty more that need to be taken into consideration before you make your decision. It is best to compare all the available factors before settling on one option.

Are you aware of the All you need to know about EMV chip embedded ATM cards

Over the last few years, banks are slowly upgrading their banking cards to incorporate the new EMV chip embedded system. EMV is a short hand for the technologically-driven service that is now making all banking cards safer in the future. It has been inspired by Euro pay, MasterCard, and Visa, which have collaborated to create a series of banking cards with a more secure technology for banking transactions.

Birth of the EMV chip banking card due to the banking card fraud epidemic

Several credit, debit, and even ATM cards were being used in plenty of frauds. In this case, the details of the card used to be collected and revealed to buyers, who would purchase this information to make replicate banking cards. By using these replicate cards, one could easily access and make transactions, with funds getting debited directly from the original card owner’s account. In addition to this, frequent data breaches have exposed consumer’s data to the public, which has added fuel to this fire. However, EMV chip any debit, credit or ATM card makes it difficult for such a particular tactic.

How do EMV card works?

EMV cards are embedded with a microprocessor chip that contains the bank account’s information. This chip is read, when the card is dipped into the terminal, tapped against the payment terminal or even when it is waved in front of it. The process of reading this computer chip is different as compared to the traditional card with a magnetic strip, which is read only when the card is swiped through the machine. For criminals who access this data, it is almost difficult to replicate the dynamic transaction code that is generated by the chip making it considerably safer.

Why is this EMV chipped card safer?

In the occasion that the store or restaurant where you used your card has been hacked, the information of the banking card that is stolen cannot be used to make additional purchases or create new banking cards. Each transaction used with this EMV chip credit, debit or ATM card uses a unique authentication code with is a one-time use only. Additionally, these microprocessor chips are virtually impossible to duplicate.


How does the PIN’s come into play?

Apart from the embedded chip, the PIN adds an extra level of safety to the card usage. If a card required it to be accessed with a PIN, a code must be entered after the card is swiped. Without this pin, it wouldn’t work. These PINs are particularly helpful in preventing a lost or stolen credit or debit card from being used. This also works as a better alternative to thwarting fraud, especially when a scribbled "signature” is required on an electronic keypad.

The right way to apply for the best credit card

A credit card will go a long way to provide you with the ideal financial support. For one, you can borrow funds from the bank, in order to satisfy any of your financial requirements. Additionally, you can also repay back the funds at your own convenience with no fixed repayment tenure.

However, a credit card is only as good as a banking card, if it matches your financial requirements perfectly. In order to apply for the best credit card that will suit your financial need, here is what you need to consider.

Spending habits

Every individual possess a different financial spending habit. If you are looking to opt for a credit card that will support your financial habit, you will need to look for the card in a particular category. Do you carry a balance every now and then? In this case, you may need to look into a low interest card. Do you want to avoid paying down a high interest card balance? In this case, a balance transfer credit card will be your ultimate choice. Do you want to spend less, and yet get high returns? Then you can opt for credit card with reward points, which can be further customized to suit your expenditures. With a bit of research and persistence, you can get figure out a credit card that will suit your needs.

Determine your qualification for a credit card
Normally, lenders provide a credit card with features and rates that will suit your needs, while protecting their own interests. In this case, you will need to satisfy certain eligibility criteria before you can apply for this card. As each application and rejection will reflect in your credit score, you will need to be careful about applying for a credit card. Check your lender for any prior eligibility criteria when it comes to a particular credit card in a category. You can either make the necessary adjustments to satisfy the criteria or you can opt for another type of card which will suit your needs.

Read the fine print

Once you have the basic idea of the best credit card that will suit your need, then you can go to the next step of the application process. As a part of the application process, you will be provided with terms and conditions pertaining to your application. You will want to ensure that you understand all the possible fees, interest rates and interest free tenures you will incur once the application process is processed. Ensure that you read this fine print to get a better understanding of how you can use the card to its full financial advantage.

Factors to consider when applying for a credit card

A credit card, no doubt, will offer you plenty of financial benefits, especially when it comes to flexible borrowing power. No matter how many credit cards you possess, it is essential to sit down and think of the type of credit card that will suit your needs and spending habits. Even the most careful credit users or owners can find themselves in a financial bind if they aren’t careful about the card they choose.

Here are a few factors you need to consider when making your decision to apply for credit card:

Find your current credit score:

Before you being researching for your next credit card, you must look at your current credit score. Depending on your credit score, the lender of the credit card will determine your eligibility for a credit card or even any particular credit card offer. This will help you avoid getting to attached to any credit card with spectacular reward points or even spending it abundantly.

Think about how to plan on using you card:

One of the many benefits of the credit card is that it can be used for several uses. For one, it can be used to boost your credit score. Alternatively, it can be used for only emergencies or even to receive rewards. Depending on your answer, it will help further narrow down your options when you are about to apply for a credit card. For example, if you pay all your dues on time, you can opt for a credit card with long grace periods and no annual fees. If you feel that you are most likely to have a monthly balance on your card, you must focus on options that offer low interest and introductory rates. Credit cards that offer reward programs and credit limits are often the best fit for owners who are frequent card users.

Credit cards for first time users

Are you applying for a credit card for the first time? Then it is crucial that you use the credit card to its full potential as it can help build your credit history as much as destroying it. At the same time, it helps you access unrestricted funding in the event you require emergency financial funds. However, before you apply for this card, you must be aware of the interest rates and repayment tenures that are associated after using it. You must also ensure that you are aware of the fees and penalties, payment due dates and credit limit. It will work to your benefit if you start developing good spending habits right in the beginning itself to keep from falling into a potential debt even before you start earning.

Are you looking for a cheap car loan?

Over the last few years, there has been an increase of a vast flow of automobile launches in addition to various loan options to select from. With this, purchasing a new car is now made easy. However, your urge for a car purchase can disillusion you from the trapping of loan, especially if it is an expensive one. To avoid such a situation, here are a few factors you need to consider when opting for a cheap car loan.

Negotiate:

While this may seem like ineffective, negotiating is the best way to get the best deal for your auto loan. One way to do so, is to shortlist a minimum of 3 different quotes from different loan lenders. Using the quotes, you can begin negotiating with each lender for the best rates possible. Factors you can focus on when negotiating includes EMIs or even interest rate.

Improve your credit:

Factors of your loan such as the loan amount, interest rate and loan tenure will depend mainly on your credit score. If you have the ideal credit score, you can get the best lowest rate of interest. If you do not have an ideal credit score, you may have to forfeit an ideal loan rate due to your problematic repayment history. In the event you have an issue with your credit score, take the required measures to delay the purchase of your new car in order to take measures to increase your score..


Look out for illicit dealerships

Whether you receive an exceptional loan offer, it is crucial to see who will be selling your car. Plenty of financial agencies have known to have contacts with illicit dealerships. These dealerships are frequently involved in practise where original parts are replaced with fake duplicates especially during servicing times. In this case, it is best to avoid such dealerships.

Purchase a cheaper car

Often the most simplest and practical advice can help get you the best financial deal. In this case, opting for a cheaper car will provide you with the best and affordable loan deal. Over the last few years, the price of vehicles have risen. Therefore, when you are about to purchase one, you should look for beneficial features of a car that will suit your needs, as compared to a flashy one with a price. An expensive car, will lead to an over reliance on a larger loan, which can lead to an economic calamity, in the event a life changing episode occurs during the loan repayment tenure.

Tips to help you from defaulting on your business loan

Defaulting on your loan is not a good thing. However, defaulting on your business loan is another matter as you will have several repercussions that extend beyond the affect it has on your credit score. A default on your loan will put your business in danger. When this occurs, you may have to deal with hefty penalties, along with an unresolved amount that has to be repaid. Not only will it make it difficult to secure funding, you will be liable to pay higher interest or opt for unfavorable loan conditions in the near future. All in all, defaulting on your business loan is an expensive if not an unpleasant experience. Given below are some tips you can take into consideration to avoid defaulting on this loan:

Cut down on possible expenses:

The first factor you need to take into consideration are the current expenses you have, and immediately cut down the expendable ones. You can take into consideration in cutting down office space or facilities or even lay off a few employees. While this may seem like an extreme step, this must be considered as a last case scenario if you want to save your business.

Study the fine print of your loan contract:

In the hurry to get the loan from the bank, you may have not realized what you have signed up for in your loan contract. In this way, you may not be completely aware of the details of your repayment conditions. At the same time, you may not have calculated the exact rate you need to pay for your interest. In order to prevent such a potential defaulting due to any ignorance or carelessness on your part, ensure that you are well aware of the terms and conditions of your loan before applying for it.

Seek assistance from a financial expert:

If you feel that you are not financially stable enough, which can risk your business, you must immediately seek a financial expert. This is a great solution to avoid a potential financial crises, although you may be an exceptional strategist or salesperson. Seeking the expertise of a financial specialists will help you correct the possibility of defaulting on your loan, while looking into new strategies that can help prevent this occurrence.

Negotiate with your loan lender:

Not all loan lenders, are cut throat institutes that claim your collateral or business, the instance you default on your loan. If the possibility of defaulting on your loan arises, you can always approach your lender to find a solution to your problem. In this case, you can always re negotiate the terms of your loan, depending on the gravity of your financial situation. However, this depends on your relationship with the bank, and the circumstances that can affect the new repayment terms that will help prevent a possible bankruptcy.

Can you calculate the ideal loan rates for your personal loan?

When a time arises that requires you to opt for a personal loan; you will first need to research all the available options while considering all your financial requirements. As the personal loan comes under the category of unsecured loans, banks and lenders often compensate the acquired risk, by charging a loan rate. This rate, in turn, can be defined by additional factors, such as the borrower’s current income, credit score as well as available liquid assets.

But considering all these factors and taking them into consideration of your financial requirement will be tedious. At the same time, you cannot avoid calculating your idea strategy to repay the loan, as it can further affect your financial situation. This is when the personal loan calculator will provide you with the required assistance to get the ideal rates for your personal loan. You only need to:

• Consider all available options: Shopping around for loan rates will give you an idea of what is available and what works in your favor. It also gives you an insight on the current market conditions and the possibility of influential market rates. Using the information in your loan shopping, you can use the personal loan calculator and calculate the ideal loan rates that can work in your favor.

• Get the best offering with a low credit: One of the many factors that can influence your personal loan rates is a low credit score. No doubt, with a low credit score, you will not get the ideal loan rates you want. However, it will provide you with the awareness and information, to get loan rates that will not only help your financial situation but also improve your credit. The personal loan calculator is the ideal tool that will help you get the best loan rates while ensuring that you get the required footing to improve your credit score.

• Help decide on a co – signer: If your credit score is too low to apply for a loan, then you can apply for a co – signer. It will allow you to piggyback on his or her creditworthiness, which in turn will allow you to get better personal loan rates. However, you should be careful while taking this step, as the approved personal loan should not affect your co – signer’s credit score in the process.

• Consider the effects of an added collateral: Although a personal loan is an unsecured option, plenty of lenders have offered loans with better rates if a collateral of considerable value has been provided. If you have single or multiple collaterals’s available and wish to use it to get better loan rates, you can always use the loan calculator to assist you.

Mobile banking: The future of today’s digital world

Over the last decade, traditional banks are facing a challenge in the digital world. While some have already seized the opportunity to transform and thrive, others will struggle to evolve, leaving them to engage with an ever diminishing number of non – digital customers. A vast number of banking customers, are slowly becoming digitally aware, and expecting banking services to offer the same convenience and benefits as any other digital driven entity.  Mobile banking is one such factor that has combined banking services and the every chancing digital technology.

Convenience

One of the main benefit of mobile banking is convenience. Through the traditional manner of banking, one would need to approach the bank to utilize any service. Be it withdrawing cash or making a transfer, you would have to spend hours standing in the line, just to get a service done in a matter of minutes. Additionally, you would also need to approach a specific bank branch wherein your account was created. All these factors are eradicated through the means of mobile banking. Through your mobile platform or even mobile banking app, you only need to log into your account, and access the services that are available to you.

Multiple services on one platform

Banking services have evolved from a more traditional service of investing and withdrawing funds. In addition to this, they also offer other services like loan sanction, stock market investments, and wealth planning schemes amongst many others. It also focuses on services provided to regular customers as well as corporate organizations. All these services can be accessed through one single platform, which is the mobile banking app, making it not only convenient but easy for those who would want to explore the other services of banking. In addition to this, the every changing technology has evolved this banking platform to incorporate multiple services at one time. In other words, as a user, you can now transfer funds from one bank account to another, while trading stocks at the same time.

Customized service

Since the mobile banking services connect a bank account to your mobile number, banks and other financial institutes have the means to track your banking transactions and services that are used by you. Therefore, based on your data, they are able to provide you with a customized set of services that not only help your investments but also enable to manage your wealth. In today’s digital world, this is one of the many requirements in order to ensure that your income and funds is well utilized to its potential.

How to make foreign money exchange work for you?

Every year, plenty of individuals move their funds from one location to another. This transfer can occur within the country or even at international corners. However, the amount you will pay or receive through this foreign exchange will differ on the exchange rate you will be given, which can change at any time. Very often, these rates can change dramatically in a blink of an eye. Therefore, it makes sense to conduct some research into these exchange rates before investing in any foreign transfer. To know how to make a foreign money exchange work for you, here are a few factors you need to take into consideration.

Factors that affect exchange rate

One of the main factors that can affect foreign exchange is inflation rates. The higher these rate are, as compared to other countries, the lower are the exchange rates. For example, the higher the inflation rates are in the UK as compared to Europe, the faster will the price of UK goods will be, as compared to European goods. Therefore, any transport to Europe from UK, will become less competitive, creating a low demand from the European goods. In such a case, traders look for factors that can primarily affect inflation rates and compensate for the rise in the inflation by selling the currency.

What other moments affect exchange rates?

Higher the interest rates as compared to other countries, the more attractive is the deposit in that country. Additionally, the returns from any savings in this country will also be better, increasing the demand for that currency. At the same time, the financial market may brace themselves for rate cuts, thus reducing the value of the currency. While this make not always be the case, the rise in interest rates can lead to a possible fall in the exchange rate. This can also occur if investors perceive a possible rise of the currency’s value and move their investment to another country currency. The currency’s strength mainly relies on positive economic data along with the expectations that the interest rate will rise. Apart from interest rate factors such as government debt, the relative strength of other currencies and government intervention can affect the foreign exchange rate too.

How can you make this factor work in your favor?
In reality, forex currency rates often rise or fall. As an investor, the key to successful currency exchange is purchase low currency and sell it at a high price. No doubt, an expert trader will be able to identify the current trend of foreign currencies, thus enabling them to recognize a positive investment, which can translate into riches. But for new comers, upcoming software and investment portals now make it easy to get into the market without much experience.

Why the prepaid forex card is the best way to carry funds abroad?

Travelling abroad for a vacation or even a trip can be a delightful experience. No doubt, you would have spent considerable time researching every accommodation, local sightseeing attractions or even a few restaurants you would want to visit. However, on the list of things you must take into consideration before you travel abroad, is the funds you have to carry for your various expenditures. Amongst the various options available, the prepaid forex card has proven to be the most variable choice.

Convenient

One of the main benefits of using a prepaid forex card is the convenience. For one, you only need to approach your bank with a request for a forex card and apply for the currency you want. You can even lock in the value of the currency conversion. Once you refill your card with the amount you want, you can now carry it with your wherever you want. Some banking institutes also offer multiple currencies on the same, card, which can be used in multiple countries. You can also use this card for multiple trips over the next few years. You only need to refill the card anytime you would want a requirement for it.

Allows you to travel light on cash

Using a forex card will allow you to travel light on cash. This is a crucial factor to consider as travelling to certain countries with large amount of funds is a risky process. With large amount of funds, you need to keep a track of your expenditures and the amount that is being transferred in terms of change. However, with the prepaid forex card, the exact amount of your expenditure gets deducted on your card. Additionally, you can get alerts of each transaction you make, thus allowing you to keep track of your expenditures.

Inexpensive alternative to other banking cards
One of the main benefits of using a forex card is the use of currency lock in. When you load the forex card with the currency, you also lock in the currency value. This makes it financially beneficial to use the card, especially in the country of the currency you have applied for. In this case, you will not be charged any conversion fee. However, with other banking cards you will viable to pay some amount of funds as the conversion charge. This can be easily charged based on the amount that has been withdrawn, or the current value of the conversion rate. In either case, the amount of funds that will be charged will be avoidable, if you opt for the forex card.

Why online mobile recharge is the need of the day?

With the rising popularity and convenience, more and more individuals are opting for smartphones to use on a daily basis. And with these smartphones, comes the rise of the cellular network usages customized for these smartphones. With 4G networks slowly taking over these mobile networks it is now easy to do several activities right from logging online to surf, download music or videos and even send mails.

But in order to ensure that you have a continuous access to this network, you must ensure that you have the required balance for it, especially in the case of pre-paid mobile network connections. This type of connection debits the balance stored in your mobile number, for any function you do or make. In order to ensure that you have sufficient balance, you can always opt for an online mobile recharge. Here is why this recharge has now become of the requirements for your daily needs.

Instant balance

One of the benefits of the online mobile recharge is the instant balance. As per the recharging process, you only need to go log online and register your account with your bank, or the cellular network service. Once you have made the account, you can either connect your bank account to your mobile number account, or vice versa. Henceforth with either option, you will only need to log online, opt for the balance amount to be transferred, which will instantly get deposited in your mobile number balance.

24 hour access

When you want to make an online mobile recharge you will need to log online. Today’s internet networks are designed to be easily accessible and constant. Through mobile connections or even through other internet cable connections, you can easily connect to the online portal and log online to your account. Accordingly, since the network is easily accessible during any hour of the day, you can make the balance transfer anytime you want.

Great deals and discounts on your recharge
Now a days, plenty of individuals are opting for this type of recharge in order to ensure that their mobile connection is constant. Since this type of payment also benefits the banking institutes, they offer plenty of deals and discounts on your next recharge, making it more beneficial for you. At the same time, these individuals also use the same account to make other expenditures such as utility bill payments or any online shopping. As most banking institutes keep a track of your usage, they will be able to provide a customized deals and discounts, which will not only benefit your mobile recharges, but your other expenditures too.

Can you apply for a credit card when you’re unemployed?

When you are unemployed, the last thing you would want to do is apply for a banking card let along a credit card. Although you may not have a steady income, there is still the factor, that you will have financial requirements. Despite your situation, you can easily apply for this bank card. However, here are factors when considering a credit card to apply for.

Applying for secured credit card

Credit cards come under two categories namely unsecured and secured. In most cases, most individuals opt for the unsecured credit card. This is due to the fact that through this credit card, an applicant would only need to repay back funds that one has borrowed through the card. These funds can be paid on a monthly basis, or it can be paid in whole. However, the loan rates are more convenient and favorable to the card owner, as compared to an unsecured credit card. Through this card, you would need to provide some sort of security or collateral in order to get this credit card. Depending on the asset provided, the rates of the credit card will be provided, in terms of credit card limit or interest rate will be fixed. While it may not provide the flexibility and benefits an unsecured card provides, it provides a minimum means to access funds.

Co – sign your credit card

While you may not have the income or even the required steady income to apply for a credit card, your partner or spouse that is earning can apply for a co – applicant on your credit card. Through this card, both you can the co – applicant will be able to use the function of the card along with sharing the benefits. At the same time, based on the joint income, the factors of the credit card rates will be fixed. While the rates may be low, it will still provide the benefits one will need for any financial requirement. However, when it comes to repaying the borrowed funds, it will be the responsibility of the income earner to repay the due funds.

Good credit score

There are plenty of factors when considering a credit card to apply for. For one, your credit score will be taken into consideration. At the same time, others factors such as your income and debt will also be taken into consideration when applying for a credit card. However, if your credit score is at an exceptional value along with possessing no remarkable debts, you can always apply for a low limit credit card. However, you must ensure that before any expenditure you make on your credit card, you have the means to repay it. If there is any delay in the payments, your debts will increase, which in turn, will affect your credit score.

How to fund a used car purchase with a car loan

Owning a car has plenty of benefits in today’s day and age. For one, it makes it easier to travel to work and back home, especially during peak hours. It also provides you the convenience of traveling when you want to travel to another destination. But when it comes to purchasing a car, not many individuals have the funds to opt for a brand new car. In this case, a second hand car has proven to be a more viable option. Supporting this financial decision is the second hand car loan.

If you are applying for this loan, here is what it you need to take into consideration:

Interest rate

As per any other loan, the interest rate is the one factor you need to take into consideration when opting for a car loan. This factor also determines the EMI’s you will need to pay on a monthly basis. As per the banking standards, a car loan for a new car would be around 10 to 15 %. However, with the used car loan, the interest rates differ between 15 to 18%. This is due to the fact that there is a higher risk for used cars over brand new cars. However, this rate can differ depending on the banking institute you are applying to. It also takes into consideration the make and model of the car you are applying for.

Loan amount

The loan amount for a new car and a used car is considerably different. For one, the loan amount for a new car loan can amount to 90% of the value of the car. However, with the used car loan, the loan amount can vary in-between 75 to 85% of the loan. In this case too, the make and the model of the car is taken into consideration. This also depends on the financial institution you are approaching.

Loan duration

A car loan has a duration of 10 years. This normally applies for a brand new car. However, with a used car, the depreciative value of the car is taken into account. Therefore, when you apply for a car loan for a used car, the tenure for the loan will be anywhere between 5 to 8 years. Some banking institutes will also consider the age and condition of the second hand car when calculating the tenure of the loan.
Collateral

As the car loan comes under the category of secured loan, a collateral must be provided. In this case, the collateral here is the car itself. Depending on the condition, model and state of the car, it will be verified in order to determine it collateral value. At times, add – ons to the car also taken into consideration when calculating the collateral value.

How to use a personal loan to correct your bad credit history?

One of the hardest responsibilities today, is managing your finances. Given the extent of today’s economy, plenty of individuals are facing financial difficulty. Because of this difficulty, even paying monthly bills will seem like a tedious process. Over time, this can quickly, increasing putting you in a financial trouble. At the same time, it will affect your credit score. To another individual, it may not seem like a big issue when the credit score is affected, until the time comes to apply for a loan.

You may find yourself with loan applications that are either getting rejected, or loan offers that are unaffordable. So what is the step you can take to correct this problem? For one, you can reduce all your debts and correct any delayed payments. But if you don’t have the sufficient funds for it, you can always apply for a persona loan. But with a loan on hand, there is always an added of risk of your credit score plummeting more. Here is how you can ensure that this loan will correct your credit history.

Check the value of your debts

The first step you must take is to consider the financial value of your debts. This will provide you with an idea of how much of funds you will need to apply for in a persona loan. This is a crucial step to take, as it furthermore sets the criteria for your loan, namely the personal loan interest rates, tenure and EMIs. You can either opt for a loan amount that will cover all your debts in total, or a substantial amount that will help you cover at the most urgent or largest debt you have. In this way, the overall debt will be reduced, which in turn can improve your credit score.

Look for low interest rates

One of the main drawbacks of a personal loan is the interest rates. Since this loan comes under the category of unsecured loans, the personal loan interest rates tend to be on the high side. However, they should not discourage you from applying for this loan. The best way to overcome this issue is by approaching banks or financial institutes that offer this loan with low interest rates. Shopping around and compering loan rates is one way to know if you can afford it. At the same time, you can use the information your find in your research as leverage to negotiate for better loan rates.

Tenure of the loan

Like any other loan, the personal loan interest rates will play an important role with the repayment tenure and vice versa. A personal loan repayment tenure can be anywhere between 1 year to 5 years. A short tenure will lead to high internet rates, whereas a long tenure will include a low interest rate. Calculate the most appropriate loan tenure that will suit your needs and help you solve your debt problem, will lowering your credit score in the long run.

What are the habits you need to become a highly effective credit card user?

Amongst the different banking cards, credit cards have proven to be the most favorable option. However, when it comes to using a credit card, there is a huge financial responsibility you will need to take on. For one, you need to keep track of your expenditures. At the same time, you also need to consider the repayment dues and the interest rate. Additionally, if you make a late payment, there is a high chance it can affect your CIBIL score. The only way to ensure that the credit card will benefit you in the long run is to ensure that you develop an effective habit when it comes to using this card.

Make timely repayments

As a part of the credit card usage, you will need to repay back the borrowed funds over time. This is an important habit you will need to inculcate at the time you get your credit card. This repayment process reflects on your CIBIL score. Even a single delayed repayment will lower your credit score. Individuals with a perfect CIBIL score do not miss a single payment on all the credit lines they opt for. This is the same step you will need to take. In order to make this process convenient for you, ensure that you automate your payments so that you avoid any scope of delaying or missing a single payment. Ensure that the account connected to your credit card payment is well furnished for this purpose.

Maintain a minimum outstanding balance on your credit card

There will come a time where you will have an outstanding amount on your credit cards. This can occur if you recklessly use your card or impulsive purchases. Alternatively, emergency financial requirements such as a medical emergency may require you to use the card to make a large purchase. While you may not be able to completely clear the outstanding balance in a single go, you can ensure that there is minimum outstanding balance on your card. A large debt on your card will invariably affect your credit score. However, by reducing the size of the debt, you can prevent it from lowering your credit score drastically. To avoid any unnecessary expenditures in the future, you must never spend anything on your card which you cannot afford to repay in full at the end of each billing cycle.

Use your credit card only when necessary

In order to keep above the competition, plenty of banks and financial institutions will offer your good deals and discounts on their credit card, if you only you use them. However, this credit, should only be used when absolutely necessary, even though it is easily or readily available. Excessive use of this available credit will unbalance your credit score in a blink of an eye. To avoid any possibility of hampering your credit score, you must only use your credit cards if there is a requirement for it.

Don’t wait, buy a house within your budget today!

Purchasing a home may be a requirement for many individuals but today, it also stands as a means of investment for the future. But when it comes to the decision to purchase a property, various factors are required to be taken into consideration. For one, the price of the property is the leading factor for purchase. But the value of this price in turn will change, depending on factors such as future infrastructural growth and value of the land amongst many others.

Yet the decision yet remains whether you should purchase a home now or wait in the future. But there are several factors that will favor you, if you only purchase your home today. If you only purchase your home within a budget, here is how it can benefit you.

Affordable EMI’s

One advantage of a purchase of a property is that the value only appreciates, and rarely ever depreciates. Plenty of banks and institutes have accepted this factor, and taken this into consideration when applying for loan to finance the purchase of a home. Therefore, this makes it easier for one to calculate the ideal loans rates in terms of interest, tenure and even EMIs. You can even use the loan EMI calculator to work out the loans rates that will benefit you in the long run keeping in mind the budget you have at the moment. This in turn will help you plan your finances, in order to save up sufficient funds to sell out the property after a given time, and purchase a larger property from the proceeds of this purchase.

Tax benefits

Although financing a home purchase with a loan will affect your finances, you can get plenty of tax benefits out of it. For one, if you sell the purchased home after a period of three years, there is no requirement to pay any capital gains, if the funds are reinvested in a property. This tax benefit, in addition the savings in rent and appreciation in the property value will ensure that you can purchase a home on a budget, and improve it for a higher value.

Additionally, you can also get an income tax deduction on the home purchase. Under Section 80C, you can get at most a 1.5 lakh deduction on a home loan principal amount. For a couple, it would mean Rs. 3 lakh. Under Section 24, you can get a deduction of Rs. 2 lakh on the interest that is paid every year, if the purchased house is self – occupied. For a couple the amount will be doubled. Alternatively, if the house is given on rent, the entire amount can be claimed for deduction. With these factors, in the tenure of the loan, you will get financial returns that will benefit you

Future selling price

As mentioned previously, the value of property appreciates in the future. This will work as an advantage for you in the future, especially if you the value of the property appreciates. Additionally, you can also alter the property to increase its value, which can be overall sold a price that is higher than its original purchase price. You can use the loan EMI calculator, to assist  you in this step.

4 reasons why your loan application can be rejected?

A loan is a great way to fulfill any financial requirements or assist in financial expenditures. In addition to this, you can opt for loans that will suit your need to perfection, for example, a car loan to purchase a car, or a business loan to finance one’s business. However, as a part of the loan application process, you will need to satisfy certain loan criteria. These criteria may differ from the type of loan you may need to apply for. While you can always use the loan calculator to check your loan eligibility and avoid the possibility of loan rejections, here are some factors you can consider when applying for the loan.

• Joint loan with your sister or friends:
As a part of the loan application process, another individual may apply for a joint application. However, certain banks have restrictions when it comes to fulfilling the criteria for the joint loan application. For one, there is a restriction when it comes to sisters applying for a co – applicant. Alternatively, banks do not provide a co – applicant status to friends of the applicant. However, you can choose to opt for a loan with your parents as co – applicants.

• Your loan application has been rejected before
It is not a wise move to keep applying for a loan impulsively and without proper rationalization. If your loan application gets rejected, it will be recorded in your CIBIL record. Therefore, you must weigh the pros and cons before applying for loans anywhere. With every loan application you make, wait for a feedback or an offer before applying for a loan in a different institute. This will give you a chance to rectify any error or even update your credit score before you apply for you next loan application

• You are a compulsive job hopper:
Banks place a lot of importance on job stability when it comes to applying for a loan. Certain banks even insist that an applicant should be employed with their workplace for a certain tenure before they are eligible for any loan. However, this tenure can change depending on the institute and loan type you are applying for. Additionally, if your company’s future indicates that it is not financially stable, the bank you are applying for a loan, has a right to reject your applicant.

• You had to pay when you were a loan guarantor
When you stand as a loan guarantor for other loan applicants, you have to stand responsible in the event that the individual does not repay the borrowed funds. When this occurs, you will be responsible enough to repay back the funds. This in turn, will affect your CIBIL score, and consequently your future loan applications.

Are you aware of these personal loan EMI calculator benefits?

There will come a time in your life, where you will be required to make a large expenditure wherein your current income may not suffice. At such a stage, you can opt for the personal loan. Amongst all the different loans available, the personal loan comes with no add on frivolousness while providing the right monetary stimulus to your requirement.

But applying for the loan alone will not satisfy your financial requirement. You will also need to ensure that you can repay the borrowed funds. Additionally, you will also need to take into consideration the interest rates and the processing fees which will be added to the overall loan amount. This overall amount needs to be repaid on a monthly basis, through EMI’s. But how can you ensure that the EMI amount will match your income will balance your other debts? Through the personal loan EMI calculator, you can calculator the EMI amount that is most applicable to you. Here are some of the other benefits of the personal loan EMI calculator you can take advantage of:

Amortization table at the end of the calculation:

When it comes to calculating the personal loan amount you need to repay back, plenty of factors will be taken into consideration. For one, the principal amount is taken into consideration. At the same time, the various additional fees will also be added to the loan amount. Finally, the interest rate is also calculated on the overall loan amount that is taken, along with the tenure of the repayment. Once this whole amount is calculated, it is further divided into various EMI’s which will be required to repaid on a month on month basis, until the tenure is met. Overall, this may seem like a tedious job to calculate, especially manually. However, the personal loan EMI calculator will make this calculation into a quick and convenient process. At the same time, the resulting calculation will be formulated in an amortization table, which will provide your EMI’s in a detailed breakup.

Help compare loan products

Every individual will have different financial requirements. Keeping this in mind, plenty of banks and financial institutes offer competitive rates, with a promise to satisfy your financial requirements. However, to ensure that these offerings match your requirements, you can use the personal loan EMI calculator, to calculate the amount taking into consideration the offering of each of these banks. This will provide you with relevant details and information that you can use to compare each offering to know which the best personal loan offer is.

Provides you with sufficient resources to negotiate terms

Most banks will provide you with personal loan offerings with different rates. These offering may not satisfy your requirements. But by using the personal loan EMI calculator, you can calculate different results which, you can use as leverage to negotiate the final loan amount.

Apart from these factors, there are plenty more benefits of the EMI loan calculator which you can take advantage of. However, in the end, you must ensure that you consider all the loan factors before applying for the final loan.

How to manage your credit utilization ratio on your credit card?

Amongst the several banking cards that are available, the credit card is one of the most popular choices. However, when applying for a credit card, there are certain factors you may need to take into consideration. No doubt, you will consider the interest rates and the benefits that come with this card. However, you will also need to consider the credit utilization ratio.

Credit utilization is the ratio, between your credit card expenditures and the sanctioned limit for the card. This canbe calculated for your individual card or cumulative cards. The overall spending on your card as compared to the total sanctioned limited on all your cards it eh cumulative credit utilization. This ratio is important as it can affect your CIBIL score.
A high ratio indicated that you are credit hungry while managing a poor debt. This indicated a risky behavior when it comes to borrowing. A nil ratio does not reveal important details about your expenditures, which in turn can affect your CIBIL score. Given below are the steps you can take to maintain this ratio:

Reduce your expenditure:

This is one of the simplest ways to maintain your ratio. However, it may not be the easiest step to take. Review your history and check to see if you can reduce any unnecessary or impulsive expenditures. At the same time, you will need to avoid making these same expenditures in the near future.

Opt for a higher credit limit:

Opting for a higher credit limit can decrease the spending factor or increase the credit limit factor. Amongst both options, opting for the bigger limit will be more beneficial. In order to increase your limit, you can review your credit card issuance. Most banks offer to increase the credit limit after a certain expenditure tenure or usage. You can always check with the card company to find out if you are eligible for this increase. 

Apply for an additional credit card:

If you cannot raise the credit limit on your card, you can always apply for an additional card. This card will raise your overall available credit limit.This will make it easier for you to control a high credit utilization ratio. However, you must ensure that your expenditure is spread smartly over all the available cards you have, while ensuring that the dues are paid off.

Distribute your expenditures between all cards:

As mentioned previously, you can always apply for an additional credit card in order to increase the overall available credit limit. However, you can always take your current credit cards into consideration, and review each card’s expenditure separately. Ensure that the consecutive expenditures are distributed judiciously over all cards. Additionally, ensure that your expenditures are synchronized with your billing cycle and due dates.

When should you say a ‘yes’ to a persona loan?

Earning an income is a great way to manage your expenses and save your finances for the future. However, at some point in your life, you will fall short of funds, which will require you to seek an alternate source to gain the required finance that will fulfill the requirement. Amongst the different options that are available, the personal loan has been a viable one. Given below are the various reasons why you should say a yes to this loan in such a situation.

No collateral required

Most loans are divided into two categories, namely the secured and unsecured loan. In the secured loan, you would need to provide an asset of an equal or a substantial amount in comparison to the loan amount. In other words, you will be required to provide collateral.However, in an unsecured loan, you need not provide any collateral. This makes it easier to apply for a loan, without any hassle of getting the appropriate asset for security. Therefore, if you do not have any assets of relevant value and require funds, you can always opt for this loan for financial assistance.

Short processing time

As a part of the loan application process, you will be required to submit a certain set of documents pertaining to the loan you are applying for. For example, when applying for a business loan, you will need to provide the income tax returns, abusiness plan for the future and a document validating the reason for the loan and its usage towards the business. This is no different for the personal loan. However, unlike other loans, the persona loan requires minimum documentation, namely pertaining to your identity profile and income report. Such documents take a few hours or days to be verified and processed, thus reducing the overall processing time of a loan as compared to other loans. In the event you are looking for quick finances, the personal loan makes an exceptional option.

Repayment affordability

Every individual possesses different financial habits and different expenditures. This can lead to different financial requirements, especially when it comes to large expenditures. At this stage, you can opt for a personal loan amount that will fulfill your financial requirements. However, at the same time, you need to ensure that you can afford the loan. Keeping this in mind, banks and financial institutes set eligibility criteria which need to be satisfied before your loan application can be processed. In the process of verifying your loan application, your income, current debt to come ration and your credit score will be taken into consideration.

Apart from these reasons, there are plenty more you can refer to. In the end, however, the decision to apply for the loan and to repay it is your responsibility. Personal loans must only be used as a last resort to meet an unavoidable expense, as taking on any debt is a financial decision that can last a lifetime.