How to make your trips abroad hassle free today?

When it comes to travelling abroad, no matter the purpose, there are several factors you need to take into consideration. Amongst the various factors, your financial investment and expenditures will be taken into consideration. While there are several options you can consider for these purposes, the travel card is one option you can consider.

Travel cards as the name suggests is a form of banking card that offers prepaid facilities providing you with a foreign currency of your choice. You can easily load a fixed amount of funds in your local currency on the card and withdraw or make transactions in a foreign currency. You can estimate your spending with these cards and invest the amount that satisfies your requirements. In this way, it makes your overseas trip hassle free and effective.

If you are planning to use the travel card for any of your upcoming trips, here are a few tip you can take into consideration:

• Before purchasing a travel card, ensure that you have sufficient knowledge about it. For example, you may not be able to use the card in certain countries to pay fuel bills or tools due to security issues. In this case, you should ensure that you have sufficient cash on your hand.

• As soon as you get the card, remember to change the default PIN before you travel abroad to prevent any misuse. Additionally, with a changed PIN you can also avoid the chance of getting a rejection overseas especially at ATM counters.

• If you need to withdraw funds, be aware of the withdrawal charges. In certain places or countries, there can be an extra fee on transactions. Look out for travel cards that offer you free withdrawals around the world to avoid these extra fees.

• Keep track of your available balance on your travel card. You can do this through the ATM, email statements or SMS updates. You can even get a mobile application downloaded to track all your transactions.

• Avoid using your travel cards for security deposits, especially if you need to clear up your hotel bills. In some cases, the balance amount in the travel card may get blocked for a certain period.

• Always check the current conversion value before proceeding with any transaction. This will help you gauge how much funds you will be actually spending with each transaction on your card

• If you have the option to pay in the local currency, avail it. In the event you don’t take advantage, your retailer may convert it into foreign currency.

• In the event, you lose your card, or it is stolen; you must block your travel cards immediately. Most cards come with a  replacement one, so you can always use this card as a backup.

• If you are planning to use this card for a long period, over different travel trips, ensure that you are aware of the expiry date of the card.

What are the different factors that contribute to the changes in forex rates?

The forex exchange market is a global market where the trading of currencies is done all throughout the day and night. As an investor in this market, the rate of which these currencies are exchanged is very important. This is because the currency is used to determine the economic status or growth of that particular country, in comparison to other countries. As these features change, so does the rate of the currency.

This rate is normally monitored and constantly evaluated, as it is a key to determine the factor for the country’s economic stability. As mentioned previously, forex investors and those who frequently send foreign funds abroad would need to constantly screen the exchange rate so as to know the appropriate time to make a transfer or transactions.
Given below are some critical factors that play an important role in determining the rise and fall of the exchange rate. This will go a long way to help you understand the suitable time to transfer or receive funds:

Inflation rates in the market: The variations in the market inflation rates is one of the critical aspects affecting the exchange rate of the country.  Country’s that possess a low inflation rate normally have a stronger value of currency, as compared to countries that have a high inflation rate. However, this is only applicable if the other factors are held constant. If the inflation rate is low, goods and services tend to appreciate at a slow rate as compared to countries that have a high inflation rate. If the low inflation rates are maintained for a longer period of time, the value of the currency appreciates steadily.

Interest rate charges: Forex exchange rates, interest rates and rates of inflation are always interrelated while playing a big role in determining the stability of the market. Any changes in the interest rate will affect the value of the currency and in turn, the exchange rate. Any increase in the interest rate will increase the value of the forex currency. This normally occurs, when the borrowers are charged a higher interest and in turn, attracts a foreign capital. This causes the exchange rates to go up.

Debt accrued by the government: Any unpaid dues by the central government are always considered as a civic debt and furthermore a liability. The bigger the debt, the less likely the government will negotiate to get a better foreign capital. This in turn, results in the increased inflation in the country. When this occurs, investors tend to trade bonds when the debts are too high. Consequently, this will always lead to the fall in the value of the current exchange rate.

Business Loan: All you need to know about defaulting and how to avoid it

All business, no matter big or small, will require financial assistance at some point in their lives. This is when the business loan will prove to be the ideal solution. This loan for business is designed in such a manner, keeping in mind the unique requirements and functioning of each business while ensuring all the financial requirements are met.

However, even the best run business can hit an unexpected cash flow problem, especially if a major customer of theirs fails to pay. In this case, the best of intentions can go out of the window. So if you find yourself and your business in a position where you’ve missed your payment on your loan you’ve taken on your business what can you do?

Normally, as soon as your lender realizes that you have defaulted, they will be in touch. Each lender will normally have a different policy on their issues. While some do offer a grace period if your payments are not too late. However, if the matter does not get resolved, your lender will report the late payment to the credit bureaus, which in turn can damage your credit score. This will in turn, make it more difficult for you to secure your finances in the future.

Here are some of the default scenarios that can occur to your business:

• Defaulting on a secured loan: If the business loan is secured on an asset, there is a high chance your lender will claim the said collateral to repay the debt. This can be anything from your business to your home or any other similar asset of high value.

• Defaulting on an unsecured loan: An unsecured loan will be completely different from the secured loan scenarios. For one, you lender won’t be able to seize any asset of yours. However, they will charge a late payment fee, and possibly increase your interest rate. If you further cannot repay back the borrowed funds, they can purse a legal solution against your company. In this case, you may be forces to liquidate your assets to pay the settlements.

• Defaulting on a personal guarantee: If you fail to repay a loan for business wherein which, you stand as a personal guarantee, the lender can pursue you personally and not just your company itself. If the court upholds your claim, the lenders can seize your personal assets and liquidate them to cover the debt.
So what can you do to avoid getting into this position?

As you can see, the consequence of defaulting on your loan can be either extremely sever or mundane. Therefore, you should very cautious about taking on a new loan, in order to avoid increasing your debts. You must pay close attention to your cash flow, ensuring that you will have the required funds on your hands to make the loan payments in a timely manner. If you find yourself in a position where you will be unable to meet a payment, you must contact your lender immediately and explain your situation. In this case,  most lenders will work with your in your interest and their own.

Factors you need to keep in mind when opting for used car loan

When it comes to purchasing a car, whether new or old, there are plenty of factors you need to consider. One of which includes the financial aspect of the purchase. In such a case, several individuals prefer to opt for a used car loan to facilitate the purchase.

These used car loans offer several benefits, one of which includes a loan amount that will be equivalent to the purchase of the car. Additionally, it offers the ideal repayment procedure wherein which, you will be able to repay back the loan amount over a flexible period.

However, before you opt for this loan, you will first need to consider certain factors like any other loan. They include the following:

Know the seller: It is crucial that you are aware of the individual who is selling the vehicle to you. You must ensure that seller is the actual title holder. Ensure that you collect and verify the seller’s credentials by collecting the contact details. You can even request a copy of the title and match the seller’s name to ensure that you are aware of the rightful owner of the vehicle. You should be aware of anyone who is selling a vehicle without the title or on behalf of someone else as it could be a duplicitous transaction.

Know the vehicle: Before you purchase the vehicle, you will first need to check how the well does the vehicle perform. A simple test drive may not be able to reveal what’s really going on. However, you can opt for online tools and resources that will help you investigate maintenance and accident history. You can even get a trusted mechanic to conduct a thorough inspection.

Know your options: Consumers will often pay cash for a purchase of a private party vehicle. Alternatively, they will also obtain an auto finance, similar to used car loans, to facilitate the purchase. In this case, it may require the buyer to provide information about the vehicle and seller information along with the copy of the title. If there is a lien on the vehicle by the financial institution, you may need to take appropriate steps to get it released after the sale.

Know the paperwork: All the elements of the vehicle such as the hood, driver door, dash and other similar elements possess a vehicle identification number. You need to match the title and the paperwork keeping in mind these vehicle identification numbers (VIN) as very often car thieves often replace these VIN’s from stolen cars from those that belong to a legally registered vehicle. This is normally done through a process known and cloning or retagging, wherein which the car’s true history is covered through the forging of title documents. This titling process is a crucial step, especially when it comes to applying for the used car loan, as the financial institute will verify the documents before processing the loan.

Car Loan: Co – Signer versus Co - Borrower

When it comes to opting for a loan, terms like co – signer and co – borrowers have slowly become popular over the last few years. This is no different from the car loan. These two profiles share similar traits, and yet possess different features. For one, the co – signer improves your chances for your vehicle loan approval. A co – borrower can be a concern, especially when considering the income. This co – borrower will also have distinctive rights the asset being purchased, where in this case, is the car.

Given below is all that you need to know about the auto loan, and how this two profile will affect them:

What is the role of the co – signer in an auto loan?

A co – signer for an auto loan is considered to be a ‘silent partner.' In this case, the primary applicant ‘borrows’ the best of the credit scores in order to get the required approval for the car loan approval. Additionally, in some cases, the co – signer can be used if the primary applicant does not have garnish able income. In this case, the co – signer’s income is verified but the funds are not joined. Once the co – signer signs the loan, they are not expected to be actively involved with the repayment unless something goes wrong.  In the event the primary borrower defaults on loan, the co – signer will be responsible for making payments. Additionally, the co – signer’s credit score will also be affected, especially if there is a delay in payment or payments stop completely. Once the loan approval has proceeded, the co – signer has no ownership rights when it comes to the car. This is also inclusive of the situation where the co – signer will be required to pay for the repayments. 

What is the role of the co – borrower in a vehicle loan?

If the co – borrower is made to be a part of the auto loan, it is most likely the cause of two different situations. One situation implies that the primary borrower lacks the qualifying income for the required approval. Secondly, it could include a loan requirement by a married couple, who individually may not be able to qualify for the loan. In this profile, co – borrowers are permitted to combine funds wherein which, both of their names will appear on the title to the vehicle, permitting ownership to both individuals when it comes to the vehicle. In the event the couple splits, the ownership of the product will need to be determined before the payment proceeds henceforth. However, both individuals are equally responsible for making payments on the vehicle. In the event, a co – borrow has the requirement to declare bankruptcy; the other individual will receive protection during the filing process.

Personal loan and co – signer: What are the questions you need to answer?

Amongst all the loan options available in the financial market, the personal loan has always been a viable option.  Not only does it provide you with financial flexibility, but it also offers you the means to opt for a loan amount that is not restricted. Additionally, since you can also apply for personal loan online, you can enjoy a convenient loan application.

However, to enhance your chances of getting a better loan amount, while enjoying a flexible repayment procedure, you can opt for a co – signer. A co – signer is another individual, who would share the same responsibility as a sole owner and whose financial profile will be combined with the primary applicant to increase the overall financial profile.

This facility is available to most loan options. But before you apply for this loan along with a co – signer, here are a few questions you need to answer before you proceed with the application.

Are you aware of the responsibilities as a co –signer?

If you are going to take on a co – signer for your personal loan, both individuals must be aware of the responsibilities. The co – signer should understand that it would be their responsibility if they primary applicant fails to repay back the borrowed funds. If the co – signer has a better credit score, the lending institute may approach this individual for the repayment.

What is the appropriate payoff plan?

Regardless of a co – signer, you must have a plan to pay off the loan. This is even more crucial if you have a co – signer as it is crucial that you have a plan that matches each other’s requirements. Additionally, it should not affect your co – signer’s credit history. Something as simple as a missed payment of a defaulting on loan will affect both the primary applicant and the co – signers credit score. Alternatively, if you make timely payments, it will help increase your credit score.

Are you planning to borrow more than you can afford?

Whether you are planning to apply for personal loan online or at the bank, you and co – signer should ensure that each of your monthly loan payment amounts should not exceed your reasonable pay. Even though having a co –signer will help qualify for a larger loan amount, it is recommended that you opt for a limited amount. In other words, borrow only as much as you need and can afford.

Can your relationship survive?

You’ll be surprised how co – signing a loan can affect more than your credit score. It can also risk your relationship. Placing a financial issue between two individuals can change a relationship either in a good or bad way. Either the stress of the borrowing funds can strain a relationship or provide a means to strengthen it through open communication and mutual responsibility.

Home Insurance: Why getting one will make more sense

When it comes owning any financial product, a home will always be one of the most prized and high-value assets for all individuals. Not only does it offer an emotional satisfaction, but it also comprises of nearly 60 to 70% of an individual’s wealth investment. Consequently, it comes as no surprise that, a home is the second most reliable investment asset.

With over 200 million plus homes in the country, India has become the second largest country in terms of home inventory. With the economy expected to grow at a healthy pace shortly and a reduction in borrowing costs due to the demonetization move, the home purchase will continue to witness an increase in the coming years.

While owning a home will always be a dream if not a priority for individuals, when it comes to home insurance, it does not feature at all on the priority list. The reasons may vary, but in today’s time, it will benefit you if you invest in a home insurance policies.

Here are some of the benefits you can enjoy through this type of insurance:

Vulnerability to natural disasters: It may come as a surprise that India is a vulnerable country to plenty of natural disasters. Research has indicated that more than 58.6% of the landmass is prone to earthquakes of moderate to high intensity. At least 12% of the land in India is prone to floods and river erosions. Even 5,700 km of the 7,516 km long coastline of India is prone to cyclones and tsunamis. Additionally, the hilly areas are also facing risks of landslides and avalanches. However, the awareness of home insurance is relatively slow. It is estimated that only a small fraction of Indian homes have some form of home insurance. This insurance will cover damages caused by these natural disasters. In the event this disaster affects your home, you do not have to bear the entire cost of reconstruction of the house.

Provides the ideal coverage for homes within your home too: Having a majority of your wealth such as your home or any of your household articles insured can put you at a risk of significant losses. This, in turn, can result in emotional setbacks. Home insurance plans will not only protect your immovable wealth from such perils and natural calamities, but it will also protect your home items. In other words, it will also offer the ideal protection against items such as jewelry, clothing, electronics and much more. The ideal home insurance policies will provide you with the ideal protection for both your and your home items.

Various options available: Just as your financial needs and habits will differ from person to person, there are plenty of home insurance plans available in the financial market. You can easily opt for one that will suit your needs while offering you the ideal protection for the right price.

All you need to know about inactive and dormant savings account

It is not uncommon for several individuals to hold several saving accounts under one single name. With the introduction and convenience of online saving account opening, you can now own this account in a few seconds.

However, while is it easy to open several accounts, on the contrary keeping a tab on several bank accounts isn’t. Not only does it increase your confusion, but it will also lead to mismanagement and loss of funds. If you don’t keep track of your saving account, it can cost you funds. Here is all you need to know about inactive or dormant savings account:

When do bank accounts become inactive/dormant?

If you don’t make a transaction through your saving account for more than 12 months, the bank will classify your account as an inactive account. Furthermore, if that particular account does not witness any transaction for another 12 months, it would be further reclassified as a dormant account. The transaction mentioned in this case will consider the transaction made by you through debit cards, net banking or third party transactions. Bank – initiated transactions such as your interest charged and earned on the balance or any penalties or service charged debited are not considered. However, the credit of interest earned from fixed deposits is considered as customer induced transaction and helps keep the account active.

What are the restrictions on active and dormant accounts?

The restrictions on inactive/dormant accounts can vary from bank to bank. Some banks will impose a restriction on net banking facilities, phone banking, and ATM transactions. It can also extend cheque transactions.

Why do banks re – classify accounts to inactive and dormant accounts?

The main reason why a bank will reclassify your savings account is to reduce the risk of fraud in your account. By reclassifying your account, the awareness about your account is raised. A lookout will be kept for potential risks involved, wherein which due diligence will be carried out before any fresh transaction is made through them.

What does the bank do before reclassifying your saving account?

A bank will be required to notify you, at least three months before the reclassification of your account. They will also be required to inform you about the procedure for the re – activation of your account. If you choose to reply to the bank and provide the relevant reasons for the non – operation of your account, your account will still be considered as an operative account for the next year. However, if you don’t make a transaction through your account during this extended period, it will be classified as a dormant/inoperative account until the extended period. You will continue to receive interest on your balance even after your account gets reclassified as a dormant or inactive account.

How to reactive the saving account?

Reactivating your account is very simple, and does not require the same effort as the online saving account opening. You only need to make a deposit or withdrawal transaction to reactive your inactive account. To reactivate your dormant account, you will need to submit a written request at your home branch.

Are you aware of the different factors of the NRO account?

As per the Foreign Exchange Management Act, any individual is a resident of the India, if he or she stays within the country for more than 183 days, preceding the financial year. If the individual does not satisfy this condition, then he or she is considered a non – resident Indian, commonly known as NRI.

While this definition may determine the status of NRI, it also determines the financial requirements and functioning of the individual. As an NRI, and the individual can enjoy the benefits of earning in foreign currency and investing in banking products that offer the best benefits of currency conversion. One such main benefit and requirement is the NRI account.

In this case, an NRI can either opt for NRE or an NRO account. Amongst the two options, the Non-Resident Ordinary (NRO) will provide to be a beneficial investment. As an NRI, whose also earning in Indian income, this is the best option to invest your earnings.

Given below are some of the features of the NRO accounts and how it can benefit you:

• This account has a restricted reparability. An amount of only 1 million USD can be repatriated per financial year for any bonafide purposes.
• Unlike the NRE account, the interest that is earned in this account is fully taxable.
• TDS also known as tax deducted at the source is also applicable to the interest that is earned here. This is also subjected to DTAA also known as the Double Taxation Avoidance Agreement with other countries.
• This account can be maintained in Indian rupees
• It can also be held jointly with another Non-Resident or Resident Indian as well.

Given below are some of the FAQ’s asked and answered about the account:

Can I repatriate the funds from my NRO accounts?
The interest that is earned in your NRO account, especially if you have opted for a savings account is repatriable. However, the payment of taxes will be made before the repatriation happens. Additionally, you can repatriate only up to a maximum of 1 million USD per financial year.

What are the funds or assets that can be repatriated from this account?

The following funds or assets can be repatriated from the savings account:

• Proceeds from the sale of immovable property, shares and securities
• Assets acquired by inheritance or any legacy
• A fixed deposit with a bank, firm of company
• Provident fund balance or superannuation benefits.
• Amount of claim or maturity proceeds of an insurance policy
• Any assets held in India in accordance with the provisions of the Act, Rules or Regulations made by the government.

Will be required to pay tax on the interest income earned?

As per the current regulations, a tax that is deducted at the source on the interest earned on your account will have to be paid.

Bank account and marriage: How to ensure a balanced financial life

Amongst the several challenges newlywed couples will face, is not only living together but also money management. This will be a delicate task, something very few couples will master with ease and cooperation. After all, there will be a considerable difference between spending styles, financial independence and how and where the funds should be spent.

Amongst the several dimensions of spousal financial management, decisions about the bank account will be the most important. Choosing the right choice amongst the several types of the bank to account for yourself and your partner will go a long way to build a financial future.

Given below are certain steps for newlyweds who want to start a firm financial future and also build the right banking approach and account this year:

Consider respective banking styles and roles: As like any other issue in a relation, communication is the key to financial management. You will need to consider your respective availability, interest, and aptitude in handling your bank account. In most cases, such a decision will be shaped by your spending independence you each want and the level of trust you share between the both of you’ll. Compare your banking habits regarding physical bank accounts or whether you would prefer an online bank account. You need to understand that each relationship will be unique and therefore, every couple will most likely end up with a different financial organization.

Should you opt for a joint or separate accounts?

Another one of the key decisions you and your spouse would need to decide the right types of bank account. This would mean deciding between owning individual accounts or a joint bank account. In most cases, a joint account will be most beneficial for several reasons. For one, consolidating your deposits and withdrawals in one place will simply the financial management. Additionally, it can also be used to invest in a large balance, thus reducing fees and maximizing interest and account features. It can also be used to know how much funds is withdrawn from the online bank account, especially if it is concerned with joint spending. However, owning individual accounts will help in individual expenditures, especially if one individual does not approve of personal purchases of the other.

Customize automatic transfers to your account

Certain banks allow you to establish recurring automated transfers from and to your accounts. Such transfers will help you pay off your bills, replenish your funds and build your savings. All this can be done without any conscious effort on your part. In the case of individual bank accounts, you will need to assign various deposits and payments to your appropriate accounts. This would require you to split everything proportionally or establish a combination of the two accounts. In either case, automatic transfers can lighten your administrative burden, thus giving your sufficient time and resources to focus on other tasks.

Personal Banking: What is it and how can it help you?

Banking services are classified into different services, namely the personal and private banking. With personal banking, it refers to the wealth of services that are available to individuals from different financial institutions. To those who have some experience with any of the banking services such as savings and checking accounts and lending options such as loans, mortgages and lines of credits, you are facing a personal service of the banking institutions.

With the advancements in the digital and internet technology, plenty of new features has been added to this form of banking. For one, you will have the ability to view and interact with accounts online and make deposits and payments via phone or online services. You can even access any ATM’s from around the world and at any time. These banking services are also progressing furthermore to include other new banking services such as financial advising, retirement, planning and automatic bill payment at the most modern institution. 

Given below are some of the features of the personal banking services you can look out for:

Customer Management: Banking personnel from the personal service are well equipped and trained to ensure that you make only the best investment and financing decisions. They ensure that a good communication bridge is built and maintained with their clients, in order to understand their needs and preferences. In the end, they ensure that their clients only receive that which is best suited to their financial personality. If you need to make any investment, you can always ask for a personalised investment proposal, which will offer you the best options based on the current market trends and performance.

Quality: Quality is said to be not a coincidence, but a result of effort and efficiency. Today’s financial needs by each individual are not unique but also sophisticated and demanding. Not only are the products and services provided by banking institutes designed in such a manner to suit the needs of customers, but also ensure that the best of quality is presented to them. Flexibility yet fluidity is the much-needed requirements of the financial market, which banks aim to capture and provide in their offerings.

Special products and services: As previously mentioned, the financial needs and requirements of an individual will differ from person to person. Banks follow an objective to ensure that their customers make the most of their funds and the consecutive financial decisions. These very same banks are also coming up with different products and services that offer the best outcome, in terms of investment and financing.

Personal treatment: The key to an efficient and long-lasting relationship with clients is flexibility, transparency and sincere management. Most banking institutes aim to follow a basic mainstay where personalised management services and empathic communication is a focus.

Converting to NRI: 5 money matters you must consider before travelling abroad

When you leave India to settle abroad, there are plenty of factors you need to take into consideration, especially when it comes to your financial requirements. One factor you need to consider is that your current funds are secure, and accessible, especially when you travel abroad. While the country you may be travelling to will have their own laws regarding their banking, you will need to adapt to their new environment without losing control over your own finances.

Keeping this in mind, here are a few steps you can take:

Update your bank account: If you have any bank accounts in India, it is only meant for resident Indian. Therefore, when you travel abroad, your residency status will change. This, in turn, will affect your ability to hold a resident bank account. You will need to change your resident accounts into any of the NRI accounts namely the NRO or the NRE account. Each of these accounts has different properties and functionalities. For example, the NRO account allows you to hold income accrued from India and will pay interest on your investment. On the other hand, the NRE account can be used to repatriate funds without any limitations. Additionally, rupee currency can be invested in this account.

Manage your investments: You will need to take stock of all your investments before moving out of India. Before you do so, you will need to make a decision about the investments you want to hold and which you wish to liquidate. For example, if you have a demat account, you will be required to relinquish your hold on the account. You can even open a portfolio investment scheme where you can transfer all your holding before you get your NRI status. If you cannot make these decisions on time, you can appoint someone and give them a power of attorney to act on your behalf and execute your transactions.
  
Update your KYC status: It is crucial that you update the KYC status for every financial product your hold. This can include bank accounts, insurance policies and mutual funds. Once you leave the country and settle abroad, your address and residency status will change, and therefore, you will need to update your KYC.

Evaluate and update your insurance cover: Before you change your status to an NRI, you will need to ensure that all is covered in your health insurance policy, especially outside the country borders. While health insurance companies allow treatment within the country, it would also include medical treatment abroad. However, you will need to evaluate your cover size and increase it before you change your residency status.

Debt management: As far as possible, try and close all existing debts before you shift to another country. If you have any outstanding loan balances after shifting, you can try for timely repayments from your NRO or NRE account. You can appoint a POA to manage your debt, as it will help you immensely after you leave the country.

Are you eligible for an education loan?

The education loan has a big market, considering that several students are interested in pursuing a higher education both, within the country and abroad. Several banks offer a study loan to the meritorious and deserving students who require finance to continue their studies.

Not only has such an education loan helped boost careers, it also helps individuals afford the payment, something which they wouldn’t be able to do on a normal basis. However, before even accessing this loan, you would first need to be eligible for it.

Most banks set down certain criteria for applicants who would want to purse this form of financial assistance. They consider a certain set of factors before reviewing the application. It includes:

• Student’s academic background and qualifications. It would also include the track record of the marks, credits and achievements.
• The course that is being sought. These courses must be accredited and worthy of studying. Additionally, it should also possess a good chance of placement and job prospects, which allows the applicant an opportunity to repay the loan.
• The institution where the course will be pursued. Whether it is a school, college or even a university, it should possess a good reputation along with the right accreditation.
• The collateral offered during the loan application. The bank will consider the value of the collateral, whether or not the applicant can afford it.
• Whether the applicant has potential co – borrowers or guarantors of the education loan. Furthermore, lenders will also check the job profile and credibility of these co – borrowers.  

Apart from these factors, certain set of courses are also eligible for education loans. Lenders will offer the loan to students to study in almost anything, so long as the course and the institute are accredited by the concerned authorities or possess a good reputation. Courses that are eligible for this financial assistance include:

• Undergraduate degrees/diplomas and special courses
• Postgraduate degrees/diplomas and special courses
• PHD’s and doctoral programmes
• Specialised courses, training and diplomas.

Alternatively, certain banks will sponsor a study loan for special courses, especially if there is a prospect of a job, or an enhancement in the current employment. Some of the courses include:
• Agri diploma
• Certificate courses from ITI
• Computer certification courses
• Courses run by State Skill Missions, State Skill Corporations, or National Skill Development Corporation
• Data entry operator course
• Degree or diploma courses for aeronautics, pilot training, shipping held by recognized regulatory bodies. This course is normally associated for the purpose of employment in India or abroad.
• Engineering diploma
• Nursing or teacher training certification courses and B.Ed
• Veterinary diploma
• Vocational courses run by government organization or certain departments.

Apart from the courses, certain institutes are also taken into consideration when it comes to their eligibility. Lenders will look at the institute’s reputation. Additionally, they may also have a pre – approved list of universities and even a blacklisted one. Some of the universities that are preferred for the studies in India and abroad include:

• Educational institutes that have been recognized by the UGC, Govt., AICTE, AIBMS, IMCR, etc.
• Polytechnic institutions that have been approved
• Reputed foreign educational institutions
• CPA in USA, CIMA-London, etc.

What are the tips to keep in mind when sending funds to India?

It could be very simple to select any money transfer service and send money to India. However, there are several important factors you will need to consider before taking this step. For one, you need to consider the foreign exchange rates as they are constantly fluctuating. At the same time, you also need to be aware of the charges and fees before initiating a transfer. Apart from these factors, there are plenty more that can make a difference to your money transfer.

Given below are some tips you can consider to help you make an informed decision that will help you save time and funds with any international money transfer to India:

• Compare the different money transfer services available in your destination. It will only take a few minutes, especially if the services and rates are presented online. In this way, you can compare for the beset exchange rates, transfer fees and the most reliable service.

• If you must, make a single large money transfer as compared to multiple transfers. Large money transfers will attract fewer fees and charges, as compared to smaller and multiple charges. If you most, look out for services that offer specialised services for small transfers for better exchange rates and fees.

• You need to be aware of the transfer limits. Normally, the transfer fee will be incurred depending on the amount of the transfer. So the more you transfer, the higher the fees will be.

• Pay close attention to the total cost you will be spending to send money to India. While the incurred fees may be low, the exchange rates could be high. On the other hand, a higher fee could be worth your expenditure, if the exchange rate will benefit you. In order to get a true comparison, calculate the final amount the recipient will obtain

• Don’t pay additional fees to make the transfer, unless there is an urgent requirement to do so. If the funds don’t have to be wired urgently, you can opt to choose a standard transfer, which will save your money and unnecessary charges.

• Keep a look out for fluctuating or indicative rates, especially when making an international money transfer to India.  The foreign exchange market is always active and always changes by the second. In other words, you can experience a significant plummeting or soaring of rates in a short span of time. Any transfer made during this time will benefit you or affect you. The only way to avoid such a situation is to be observant of the rates.

• Always stay informed about the procedures, alternative options and liabilities you may face in case your funds are not transmitted promptly. Don’t be afraid to ask for clarification or details whenever required. If you must, keep the second option in consideration so that you are prepared for any transfer during emergencies.

Credit cards: Common FAQ’s answered

Amongst the several banking cards that are available, the credit card has always been a popular choice for several reasons. While the requirements and reasons of the usage of the credit cards would differ from person to person, some of the common reasons would include convenient payment access, the means to access large sums, and the ability to repay back the borrowed funds with a low interest rate.

However, like any other banking card usage, there will be several questions and queries asked about the credit cards in India. Given below are some of the FAQ’s and their respective answer about credit cards:

Do I need to opt for a co – signer when applying?

If you don’t have the appropriate credit history or even little credit history, it is not uncommon for the lender to ask for a co – signer before your approval. As a co – signer, the individual must have an established credit history that would share the financial responsibility for the card. Normally, these individuals can be anyone who is a close friend or even a family member. This individual is equally liable for any debt that the principal card owner may gain when using the card. Therefore, the co – signer must be as responsible to using the card, as the primary card holder.

Is opting for a credit card a wise choice for my financial future?

While credit cards can be used for payments and transactions, it can also be used for another purpose, building a credit history. By building a credit early in life, you build a credit history right in the beginning itself, where rates are more affordable. In the future, a good credit would mean lower rates on loans, mortgages and a wide variety of credit cards. One way to start off, is by opting for the student’s credit card where you can opt for small and affordable purchases, while increasing your card limit as your expenditures and income increases.

What are the risks of a credit card?

Applying for the credit cards in India is often the first step to building a credit history. However, the expenditures you make it on is still a choice that depends on you. If you indulge in any irresponsible activity on the card, it will lead to the logging of negative information, which can stay on your credit report for a maximum of seven years. This in turn, will eliminate credit options for certain time lengths. Therefore, it makes sense to keep things easy right from the beginning than to get into trouble later on. However, there are a few steps you can take to ensure that you don’t risk your card:

• Pay your bills on time and in full to avoid added interest and fees
• Always create a budget as it will help you stay within your means
• Do set up account alerts as a security feature.