6 Tips To Choose Right Life Insurance Plan

Financial emergencies arise anytime. This is one major reason why having insurance for you and your family is important. You will find there are different insurance policies available. You are advised to choose the one that meets your needs. Out of different insurance policies, the one that is most considered is life insurance. As the name suggests, life insurance policy is basically a contract with an insurance company. An insurance company offers a lump sum amount of money on the premium payments you make, either on the monthly, quarterly or yearly basis. Before you take a life insurance, some aspects need your attention. It includes:

#1 - Know Whether You Need It:
You are highly advised to go for the life insurance if there is someone say for example your relative or family dependent on you financially. You can easily purchase a life insurance policy by submitting all the required documents. The coverage depends on the type of insurance you choose. Apart from this, if your family relies on your salary to pay the mortgage, support the family and so on, then life insurance is definitely made for you.

#2 - How Much of Life Insurance You Need?
Well, you cannot actually judge this aspect, as it depends on various factors including your source of income, the dependents you have, the debts and more.

#3 - Know the Types of Life Insurance Policies
You should know there are different types of life insurance plans. You are advised to choose the one that meets your needs and requirements. Some of the major types include whole life plan, term life plan, endowment plan and so on. 

#4 - Know the Coverage or Sum Assured
Another vital aspect one needs to keep in mind is know the coverage or the sum assured. You definitely do not want to commit a mistake of under-insuring yourself, right? The best way to determine the same is by following the thumb rule, which is approximately 8-10 times your gross income.

#5 - Choose Right Insurance Company
When talking about life insurance, it is wise you get in touch with a reliable company. Ensure the company you are applying with offers all the details needed to make a wise decision. Ensure the agent is well-versed and knowledgeable with all the details in place. Ask as many questions you have regarding the policy. It is one of the best ways to know whether the company you are applying with is reliable.

#6 - Consult A Financial Advisor
You should know it is all about your money and hence taking a right decision is important. You can get in touch with the financial advisor if you have any questions or queries regarding the life insurance policy.

Top Three Insurance Policies Everyone Should Have

Life is full of surprises. You do not know what will happen to you tomorrow or this very instant. Considering this aspect, it becomes important to be financially stable, especially in the case of any emergency. This is where the importance of insurance policies come into the picture. They are your saviour and works towards helping you get out of any emergency. It further ensures you are secured even during a financial crisis. All your financial needs are well taken care of by an insurance policy. This is one reason why you will have people telling you to have different insurance policies. When talking about the same, mentioned are top insurance policies every individual should have:

Life Insurance:

As the name suggests, life insurance helps in protecting the people that are financially dependent on you. In the case of death, your parents, spouse or children can use your life insurance policy in case of any financial hardship. You are advised to purchase a life insurance policy keeping in mind the number of years you plan to earn, and years you plan to remain employed. Always remember the life insurance policy should be able to replace the income in case of any emergency event. Life insurance is basically to secure oneself and also family when the ability of the person lessens or is unable to earn

Health Insurance:

Another insurance you need to consider is the Health Insurance. It is one of the vital insurance plans and should be considered by people of all age groups. With the increasing rates of medical care, people now prefer having health insurance in place. It has become a necessity as it takes care of all the medical expenses incurred during your hospital stay, surgery and so on. You can procure benefits of the health insurance for injuries that require surgeries, or for injuries or illness that requires a hospital stay. It helps in covering the medical costs. Health insurance plan is created with healthcare expenses estimate a person might face. Premiums are further determined by such estimates.

Automobile Insurance:

Also, referred to as vehicle, car or motor insurance, automobile insurance helps in securing a person in case of any road mishap. Accidents happen without any notice. A person is liable and is subject to a lawsuit in case you are involved in an accident or if someone is injured or the property is damaged. However, having an automobile insurance helps in covering all the costs. Automobile insurance is bought for securing various road accidents from motorcycle, truck or car.  

Other than the ones mentioned, there are also other insurance plans one can consider. These are further available with different features, benefits and prices. You are advised to choose the one that best meets your requirements and preferences.

Debit Cards – All You Need to Know

When demonetization happened, it was debit and credit cards that helped you go through this situation. They were basically your saviours. You can rely on them to meet your everyday needs. Among credit and debit card, it is a debit card that is most considered for the fact; the processing charges are less. Furthermore, it is convenient to use. This has further led to the growing demand for debit cards. To meet the increasing needs, banks are now offering different types of debit card with different and interesting features. The features can be availed by the Cardholder with the offers or with the buyers.

Having a debit card is a relief when you run short of cash. All you need to do is swipe and use the card at any outlet, whether restaurant, shopping centres and more. Your debit cum ATM card can be used in ATMs too to withdraw cash. Having a debit card works in your favour. Some of the benefits include:

• Cheaper – One of the greatest benefits of having a debit card is, it is cheaper. In short, an individual stand to earn some amazing discounts, whether on shopping, fuel, entertainment, dining, or travel and more.

• Smarter – Cannot find an ATM with cash, worry not as you can now use your debit card for end number of purposes.

• Safer – Transacting through debit card is completely safe as it is protected by a pin. Furthermore, all the online transactions too are safe as they are verified, and a one-time password is sent to the person to continue with online transactions. Other than this, they are offered with chip cards for added security.

Types of Debit Cards

Online Debit Systems:
As the name suggests, these cards are majorly used for online transactions. These type of debit cards require electronic authorization for every transaction you do. Furthermore, the user is notified of the transactions immediately. For added security, the transactions are secured with Personal Identification Number (PIN). In this, the user is required to input the pin on every transaction. Apart from this, for added security, a user also must add the CVV number which is majorly at the back of the debit card. It helps you enjoy cashless shopping experience whether in the store or online.

Offline Debit Systems:

Offline debit cards majorly hold either of the two major logos, Visa or MasterCard. Some of the major debit cards also hold Maestro in the UK. This type of debit card comes with a daily limit or in simple words, maximum limit. It takes around 2-3 days for all the transactions done on the offline debit card to be reflected in your account.

Tips to Consider When Applying for Two-Wheeler Loan

If you think buying a two-wheeler not your cup of tea, then you should definitely ponder on the two-wheeler loan. As the name suggests, it is your road to buy the bike or motorcycle you had always wanted. This loan type makes it easier to purchase your two-wheeler and pay the loan amount in lower monthly installments. This further reduces the burden of one-time payment. To get a clear picture of how much of loan amount you need to pay on a monthly basis, you are advised to use the two wheeler loan EMI calculator. The Equated Monthly Installment or EMI is all about reducing the hassle of paying the whole loan amount altogether.

Before you choose the bank for your two-wheeler loan, mentioned are some points one can consider to avail the best two-wheeler loans

Know the Bike Model You Want
It is of paramount importance to know the make and model of the bike before you opt for a two-wheeler loan. You are advised to choose the bike based on daily use and not to forget the kilometres you will travel. Apart from bikes, banks also offer loans for accessories. Keep all your personal requirements in place before choosing a loan.

Know the Loan Amount

When you walk into a bank or bike showroom, you are guided by representatives to give you the best possible two-wheeler loan options. The experts guide you through the whole process of choosing the right bike to loan. You can get in touch with the banks to get the best rates for the same.

EMI and Tenure

Another vital aspect one should consider the EMI. For the same, you should make use of the two wheeler loan calculator which gives all the information to make a wise decision. The EMI calculator offers the amount you need to pay on a monthly basis based on the tenure you choose. You can choose between, 6, 9, 12, 24, 36 and 42 years. You can opt to pay higher EMIs for short tenure. Ensure you choose the EMI amount carefully based on your capability and plan it according to your preferences.

Interest Rates

The rate of interest tends to vary from one bank to another. Some banks offer two-wheeler loan at 12% while some offer then at 14% p.a. Before you finalise with the bank, you are advised to check the interest rates with the banks you are planning to apply. Always remember, the low the interest rates, low are your EMIs.

These are some of the points one need to consider other than checking with the two wheeler loan EMI calculator for your monthly amount.

Get an affordable bike with the Two Wheeler Loan

Cars and bikes have become an easy mode of commute. You will find people travelling by them to workplace daily. However, there are instances when you have to think twice whether to take your car to run small or minor errands. It can be anything from travelling a short distance, going to the grocery store or even pick your kids from school. Given the traffic condition, it becomes difficult to dodge your car through those narrow lanes. This is where the thought of having a bike is felt. It is convenient and makes travelling easy. A bike not only makes travelling easy but also requires less parking space. For if you wish to buy a bike but cannot due to lack of finances, worry not as two wheeler loan is at your service.

There has been an increasing demand for two wheeler loan, given the fact a lot of people now prefer having their own commute mode. You will find buyers are always on the hunt to buy the best bike, all thanks to the new features and specifications introduced. Buyers look for bikes that are affordable, have great mileage and not to forget, looks trendy too. A two wheeler loan as the name suggests is the one stop source to fulfil your dream of owning a bike. One of the primary reason for the growing popularity of two wheeler loans is that it is affordable. A two wheeler loan is readily available at amazing finance rates. This is further coupled with easy repayment options in the form of Equated Monthly Installment (EMI). This further offers the borrower a chance to repay the loan within specified months and years.

Advantages of Two-Wheeler Loans

• An applicant stands to get a bike or motorcycle within no time.
• Banks and financial institutions take around 48 hours to sanction the two wheeler loan, but only upon document verification.
• It is offered with low finance rates with great repayment options
• The repayment tenure is flexible, and a borrower can choose to repay the loan amount within 12, 24 or 36 months.
• Minimum documentation.
• It is a hassle-free process.
• No security or guarantor is needed.

The minimum two-wheeler loan amount offered by the bank depends upon your repayment cability. The maximum amount tends to depend on the motorcycle or bike type, whether new or used. Before you start with all the 2 wheeler loan application process, it is wise to know you have good credit score. Banks and financial institutions tend to consider applicants only if they have a good credit score of 720 and above. One of the primary reason why you need good credit score is because it gives an assurance you will repay the loan amount on time.

Demat Account – Know the Working and Its Types

When talking about shares, the best ways to hold it is by having a demat account. It is a great way to hold all your securities in the easy and secure way. It further eliminates the risk of any theft, loss, damage or forgery of the certificates.

What is Demat Account?
It is basically an account which is used to hold all the shares in dematerialised or electronic form. It is just the same as any other accounts. A demat account does the job of holding all the certificates like bonds, shares, government securities, exchange-traded funds, mutual funds and more. An individual cannot trade in a stock market, unless, a person has a demat account. Upon approval, all shares and securities are transferred to your demat account directly. All the information regarding your demat account is readily available online by logging into your account. So, instead of physical possessing of all the important documents, it is wise to have a demat account.

Types of Demat Account

There are two major types of demat accounts:

Repatriable Demat Account – In this, the repatriable funds are deposited in another bank account like Non-Resident External (NRE) account. The funds in this account can be transferred abroad. All the investments done using these funds are maintained in the Repatriable demat account.
Non-Repatriable Demat account – The non-repatriable funds are deposited in a separate bank account, majorly Non-Resident Ordinary Rupee (NRO) account. These funds cannot be transferred abroad. All the investments done from these funds are deposited in your non-repatriable demat account.

Working on the Demat Account
Trading through demat account is same as physical trading. The only and major difference is that it works through electronic means. Through your online trading account, you can place an order to begin trading. For the same, it is important to link demat and trading account. The exchange will process the order only when the order is placed. Before final processing, the order, the demat account details, availability of the shares and market price of shares is verified. Shares are further reflected in your holding’s statement once the process is completed. In case, the shareholder wants to sell the shares; it is vital to provide the delivery instruction with stock details. Furthermore, the shares are debited and your trading account is credited with the equivalent cash amount.

Opening A Demat Account

When it comes to opening a demat account, it is vital to fill up the account opening form along with the required documents like PAN card as identity proof, existing financial balance sheets, a copy of residence proof and passport size photograph. For verification, it is wise you carry the original documents too. Typically, it takes a week or two to open the account. But, the period can extend to 15-20 days if the processing is taking longer than expected.

A Complete Guide to Car Loan EMI Calculator

Buying and owning a car is every individual’s dream. However, the increasing rates of the same make it difficult to own one. If lack of finances is what is holding you back to buy your dream home, then car loan is the answer for you. As the name suggests, it is a great choice to buy the car you had always wanted. No matter, whether you want to buy a new car or a used car, you can blindly rely on car loans. Several banks and financial institutions offer them with attractive interest rates and flexible repayment tenures. Before you apply for a car loan, it is wise you check your Emi using car loan EMI calculator:

Car loans have gained immense popularity, all thanks for making it possible for people to own their dream car. Before you apply for a car loan, knowing your eligibility plays a major role. For the same, your income level and your credit score are well taken into consideration. A poor credit score can lead to rejection of your car loan application. When talking about car loan paying the whole amount at one go becomes difficult. This is where the importance of Equated Monthly Instalment (EMI) comes into the picture. It is basically the amount that one needs to pay on a monthly basis to the bank or the financial institution. It is important for the borrower to pay the loan completely. It also includes interest rates which are offered along with the principal amount.

When it comes to calculating your car loan amount that has to be paid on a monthly basis, you have advised to us the car loan EMI calculator. It is one of the best ways to know the exact amount that has to be paid to the bank or the financial institution. Mentioned are some parameters that play a major role when using the car loan EMI calculator. It includes:

• Interest rate
• Loan amount
• Tenure periods
• Processing fees

A car loan calculator simplifies the whole process of applying for a car loan. It further helps you to choose the loan that best meets your needs and requirements. This further makes it easier to manage your monthly budget to handle the car payments. Apart from helping an individual know the interest rates and the loan amount, the car loan EMI calculator also tells whether or not the loan amount will be available. The EMI calculator does the job of calculating the assets and the condition to determine the repayment liability better.

In short, a car loan calculator is a perfect guide to help an individual understand the policies, plans and the payment procedures.

Top 4 Tips to Follow Before Applying for a Personal Loan

A lot of individuals often rely on personal loans as it is one of the best ways to bear any expenses whether for education, wedding, medical and so on. Though personal loans serve to be a better option, it is wise that you apply for the one that is right for you. A number of factors require your attention for the same. To make it easier, mentioned are personal loan tips every individual need to follow to avoid any problems later. Get help from the personal loan EMI calculator to know more.

Opt for Emergencies Alone

It is quite understood that personal loan is a feasible solution as it can be used for end number of things. Furthermore, it requires minimal paperwork and requires no securities.  However, you are advised to apply for the same during emergencies alone. Consider personal loans to be your last option. One of the major reason for the same is because personal loans are expensive after credit card loans. You are highly recommended to apply for a personal loan when you want to get out of an expensive debt.

Know the Interest Rates

You should know every bank offers different interest rates. Considering this aspect, it is important you compare the interest rates and choose the one that meets your requirements.

A small tip: A big loan for a longer period of time tend to reduce the monthly repayment amount, but the interest rates tend to be larger than the one you buy for a shorter term.

To get an idea of what percentage of interest rate you will be paying, you can use the personal loan calculator. It will give you a rough idea thus helping you make a wise decision.  

Do Not Send Too Many Applications

While you are searching for the best personal loans, you are highly advised not to send too many applications. Though you might find this easy as you think at least one of the bank or lender would accept it, it is not a feasible option. When you send too many applications for the personal loans, it tends to affect your credit score. Furthermore, it shows you are applying for personal loans with many banks with the hope to get more loan amount. This is one of the major reason why a lot of personal loan applications gets rejected.

Do Not Forget the Foreclosure Clause

Banks and other financial institutions tend to offer personal loans but, do not admit on the partial repayment of the loan. Banks want their customers to continue paying the Equated Monthly Installment (EMI) as the high-interest rate is charged. Keeping the same in mind, it is wise you review the prepayment charges with each bank. This is application especially if you prefer to pay off your loan amount in lump sums. Use EMI calculator for a personal loan to get an idea of how much of loan amount you will be paying on a monthly basis. This will help you be prepared and keep the desired amount ready.

Benefits of Current Bank Account for Businesses

Banks offer you with numerous options when it comes to securing your finances like savings and current account. Each of this account type offers benefits. Savings account work in favour of individuals who want to save to meet their financial requirements in the future. While current account works great for individuals who want to support their regular and frequent transactions. This is one of the primary reason why the current account is majorly considered by businesspersons to carry out their regular banking transactions.  

Apart from businessmen, the current account is also used by freelancers, sole proprietors and so on. Some of the major benefits of having a current account include:

Professionalism in Business:

Professionalism is what is needed when you deal with business acquaintances. This further helps in enhancing your business image and grow effectively. Having a current account for business makes it easier for every transaction. Furthermore, you can have a cheque with the name of your company.

Separate Business Finance from Personal Finance:

When you have a current account, it makes easier to know what belongs to your business alone. A lot of people tend to neglect the importance of opening a current account thinking they can use their savings account for the same. However, when you are dealing with a business acquaintance, it becomes important to have a different account. Hence, the importance of current account. It further helps in separating your personal finance from business finance. This actually works to the benefit of the businesses making it easier to plan your finances. Other than this, it also helps you know how much your business is earning.  When you use your savings account for both business and personal use, you do not get to recognise whether the business is running at a loss, or if your personal finances stable.

Know the Credit Score:

There are times when lenders and creditors tend to ask for your credit worthiness or score before advancing with the credit. Hence, operating a current account makes it easier for this process. You can easily check for your credit worthiness using the inter-bank connections.

Overdraft Facility:

Another vital benefit of a current bank account is that an individual can avail the overdraft facility without any hassle. In short, the account holder can easily overdraw the balance in the account, but on a temporary basis. You can say, it is like a short-term borrowing. The same facility cannot be availed when you have a traditional savings bank account. Having a current account helps in meeting your need for money on a short-term basis.

These are just some of the benefits associated with having a current account in a bank for businesses. Get in touch with the experts for more details.

Top Reasons to Invest in Fixed Deposits

Life is full of uncertainties and hence saving money is of paramount importance. This is where the importance of fixed deposit comes into the picture. Before you continue, it is wise you know what a fixed deposit is. In simple terms, fixed deposit is basically an instrument in which the investor gives a certain amount of money to a bank. Furthermore, the bank pays the amount with interest on the deposit. The rate of interest tends to vary depending on the tenure and the amount. A fixed deposit calculator can be your perfect guide in helping you understand the interest rates. Fixed deposit is a lucrative investment option as you stand to earn great interest with the tenure:

Mentioned are some reasons that tell why fixed deposits are a great investment option:

Great returns:

One of the greatest benefits of fixed deposits is that it offers great and guaranteed returns. It is not the same as investment in the commodity or stock market. You should know fixed deposits are not a risky investment as the returns are not dependent on the fluctuating market rates. In simple terms, investors can rest assured that the investment is in safe hands. It is guaranteed that the investment gets the designated amount at the tenure end. 

Flexible in nature:

Fixed deposits can be taken based on your needs. Some take it for a tenure of one month or even one year or 10 years. In simple terms, the fixed deposits can be invested for any tenure you want. You should know, if you choose a fixed deposit of five years, then it will be kept for that many years alone. The interest for the same depends upon the years you choose. For the same, you can use the fixed deposit interest calculator. It will give you a brief idea on how much of interest you are entitled to based on the years you choose.

Easy Withdrawable:

Though it is said that fixed deposits cannot be withdrawn within the tenure, you should know you can withdraw them, but with a small penalty. It can be due to any reason, whether to meet the financial emergency for marriage, education, medical purpose and so on. The penalty for the same is much less than what is there in the stock market. Fixed deposits can be withdrawn anytime, but an individual stand to lose a certain interest income.

You are highly advised to invest in fixed deposits with different banks. In this way, you do not break one fixed deposit for any emergency. Apart from this, also remember to choose the right tenure as an individual will have to consider the lock-in period too. If an individual withdraws the amount before the tenure, then the returns tend to get lower. Make use of the FD calculator to know how much you will earn from it. Furthermore, it also helps you identify the maturity amount and the interest earned when you open a fixed deposit.

NRI Fixed Deposit – All About It

What exactly is an NRI Fixed Deposit?
Every individual tends to have a fixed deposit as it serves as security in times of need and emergencies. The same applies to Non-Resident Indian (NRI) fixed deposits. It is opened in one of the banks of India. You will find a number of banks offer various and customised NRI fixed deposit schemes and NRI fixed deposit rates. This further works as a perfect tool for savings. However, you should know as compared to a traditional savings account, NRI fixed deposits are high interest yielding financial products. The interest rates of the fixed deposit are paid until a specified maturity date. Several banks offer NRI fixed deposits at competitive interest rates for different tenures. You can choose the one that meets your needs.

Eligibility for NRI Fixed Deposits:

When talking about NRI fixed deposits, it is wise to know the eligibility criteria for the same:
• The NRI fixed deposit can be opened jointly or individually with other Non-Resident Indians.
• Only a Non-Resident individual of Indian nationality or Indian origin is eligible to open an NRI Fixed deposit account. 

Some Vital Things to Know:

• The interest rate is calculated on a quarterly basis, for all the fixed with tenure of six months and above.
• Interest is calculated at simple rates for the fixed deposits schemes tenure of below six months.
• All the interest earned during the previous quarter is later added to the principal for interest calculation.
• The interest rates for fixed NRI deposits is calculated on every quarterly basis.

Benefits of Investing in NRI Fixed Deposits:

There are great benefits associated with NRI fixed deposits. Some of them include:

• An individual stand to earn great interest rates on the savings than traditional savings account by investing in NRI fixed deposits
• There are certain NRI fixed deposits are non-taxable. Say, for example, a fixed deposit when opened through an NRE account is non-taxable.
• With prior notification, banks offer premature withdrawal of Non-Resident fixed deposit. However, you should know, the deposit is qualified for interest only when it is carried on for a certain period of time as designated by the bank.
• Apart from this, several banks also offer loan against certain NRI fixed deposits. Say, for example, an individual or NRI can get loan against the NRE fixed deposits
• An NRI fixed deposit can be easily renewed on maturity.
• Account like Foreign Currency Non-Resident (FCNR) and Non-Resident Ordinary (NRO) are eligible for tax concession

Now, that you have all the details needed, the next step is getting in touch with any bank and open your NRI fixed deposit account.

NRI Account – All You Should Know

With the number of Indians staying abroad, it has become important for them to have a Non-Resident Indian or NRI account. No matter whether you are residing abroad for business, employment or vocation purpose, it is vital to have an NRI account. When it comes to opening an account, ensure it is authorised by the Reserve Bank of India (RBI). There are great benefits associated with opening an NRI account. One of the greatest benefits is that it helps you earn tax-free interest in India.

Who can Open an NRI Account?

As the name suggests, it is solely made for Non-Resident Indians. In simple terms, individuals who are living abroad for employment should open an NRI account. Furthermore, the account can be maintained either in the rupee, or any currency, like the dollar, pound, euro, sterling and so on. An NRI can easily, maintain, hold, open and maintain various banks accounts with an authorised bank. It makes easier to deal with the foreign exchange. 

Know the Different Types of NRI Accounts

Non-Resident External (NRE):

One of the different types of an NRI bank account is Non-Resident External (NRE). This account type can be opened as current, savings, fixed or even recurring deposit account. Maintained by Indian Rupees (INR), all the deposits of foreign exchange done at NRE account are converted to Indian Rupees by the banks at the buying rate. One of the greatest benefits of NRE account is that the interest earned from this account is completely exempt from the income tax. Furthermore, this account type can be held jointly by more than one NRIs.

Non-Resident Ordinary (NRO):
The funds or money held in Non-Resident Ordinary (NRO) are in Indian Rupees just as NRE account. Furthermore, this account too can be savings, fixed, term or current. A regular bank account too can be converted into an NRO account in case the person becomes an NRI. The main difference between NRO and NRI account is that a person cannot repatriate money from the NRO account. In simple terms, the funds held in the NRO account has to be used for local payment and in Indian Rupees.

Foreign Currency Non-Resident (FCNR)

Another type of NRI account India is Foreign Currency Non-Resident (FCNR). This account can be opened in the form of term deposit. The maturity of this account ranges from one to three years. The currency used in this account is US dollars, Euro, Pounds Sterling and Japanese Yen. All the interest and principal earned on this account can be transferred outside India in the same currency or convertible currency. FCNR account can be opened either jointly with a close relative or survivor basis.

These are the top three types of NRI accounts. Choose the one that best meets your needs.

All You Need to Know About Portfolio Investment Scheme

Non-Resident Indians are always looking for investment options that will prove beneficial in the long run. If you are too one among them, then portfolio investment scheme is an answer for you!

What is Portfolio Investment Scheme?

Portfolio Investment Scheme (PIS) is basically a Scheme of Reserve Bank of India that helps both Non-Resident Indian (NRI) and Overseas Corporate Body (OCB) to sell and purchase shares and convertible debentures of Indian companies on a documented stock exchange. It allows NRIs to invest in the shares of the Indian companies in the secondary market, under non-repatriation and repatriation basis. It covers a number of securities like bonds, stocks and other types of investment vehicles.

You should know, Portfolio Investment Scheme is all about reducing risks than growing returns. An investment can be easily made under both repatriation and non-repartition basis, but then it is important for the NRI to open a Non-Resident Rupee (NRE) and Non-Resident Ordinary Rupee (NRO) with any of the bank. The sale that is acquired of non-repatriable investment should be collected in NRO account only. Furthermore, it is important for the NRI to have a separate bank account, especially for PIS purposes.

Some of the key features of the NRE portfolio investment in India includes:

• When it comes to investments, it is essential for an NRI to have a PIS account. The same account will be used for investments in the secondary market on repartition basis. When it comes to investments on non-repatriation basis, it is vital to do it directly from the NRO savings bank account. Non-Resident Rupee (NRE) PIS account is independent which can be used by NRIs for their needs. All the sale and purchase transactions are well captured and are further reported by your bank to the RBI.

• It is wise to know that NRIs cannot hold more than one PIS account with multiple banks. An NRI should submit all the original sale and purchase contract notes within 24/48 hours of contract execution to the designated bank with whom your PIS account is maintained.

• Another vital aspect an NRI should know is that all the shares that are purchased on the stock exchange under the portfolio investment scheme cannot be in any case should be transferred by way of sale under private arrangement. Furthermore, it should also not be given as a gift to a person who is a resident of India or outside India without prior permission from the RBI.

• NRIs that hold valid PIS permission can trade in convertible debentures and shares of the Indian companies that are recorded on recognised stock exchanges, whether on repatriation or non-repatriation basis.

• Your PIS account can be operated by your friend or relative only when you avail the mandate of power of attorney facility. This makes easier for your relative or friend to conduct the transactions on your behalf.

Get to Know Different NRI Investment Options

Indians who have settled abroad have the right to invest in India. There are a number of safe NRI investment options in India. However, before you invest, it is of paramount importance to understand the tax implications, including both capital gains tax and income tax. One of the major reason why Non-Resident Indians (NRIs) prefer investing in India is that of the higher returns on conversion. NRIs are eager to invest in India considering the fact it is emerging country. Mentioned is the list of the investment options for NRIs:

Direct Equity:

If you are someone who wants higher returns on your investment, then Direct equity is the answer. Investing in stock markets is one of the best options for lucrative NRI investments. However, it is wise that you keep track of the stock market for best results. These markets are sensitive and observing it regularly is of paramount importance. In order to invest in the same, all you need is bank, trading and demat accounts. As you are an NRI investor, you might even have some special services.  You either have the option to invest for a short-term or long-term. The returns depend on the investment and trading strategies you use. You should be prepared for any risks as the prices tend to fluctuate in the stock market.

Mutual Funds

Another NRI investment option is mutual funds. Mutual funds do the work of safeguarding your assets. However, before investing, it is wise to check the asset management’s company’s rules. A lot of mutual funds offer NRIs with Systematic Investment Plan (SIPs) that further allows an investor to break the total investment into either quarterly or monthly investments. It is wise to invest on the repatriable or non-repatriable basis. Have a Non-Resident Rupee (NRE) or Foreign Currency Non-Residential Account (FCNR) account with a bank in India, if you plan to invest on a repatriable basis. In this, the investment money is sent through usual banking channels. While if the investment is made based on non-repatriation, it offers funds from the Non-Resident Ordinary Rupee (NRO) or NRE/FCNR account of the investor. 

Realty Investment

Real estate investment plays a major role in ensuring you get high returns. As compared to direct realty investment, Real Estate Investment Trust (REIT) is more liquid. An NRI can invest in either commercial or residential property, but cannot invest in agricultural lands.

NRE / NRO / FCNR Fixed Deposits
An NRI can easily invest money in a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. It is one of the most considered NRI investment in India. The money held in these two accounts is in rupees. An NRI can access this as a term deposit account, a normal savings account or even current account. You can even consider investing in FCNR account in which the money is deposited in foreign currency.

Steps to Open an NRI Account from Overseas

When it comes to banking, there are innumerable options for every kind. An Indian resident staying abroad can easily rely on Non-Resident Indian or NRI banking. It is a great way to ensure your banking needs are well taken care of despite staying overseas. An NRI account is definitely a handy tool. When it comes to opening an NRI account, it becomes difficult to do so as the NRI requires visiting the branch for the same to get done with the account opening formalities. To make it easier, NRIs now can easily open their account at the convenience of their homes by following these steps:

Download the Form:

The first step towards opening your NRI account is by downloading the form from the bank you want. These are offered by a number of banks offering NRI services, and hence you are advised to read the benefits offered with the NRI account as it tends to differ from one bank to another. There are some banks who also offers the option of filling up the form online itself.

Know the Documents Needed:

Before the account is opened, an NRI has to submit the necessary documents. It majorly includes approved the proof of identity, proof of address, proof of NRI or PIO status. It should be in the form of passport copies with a valid visa or PIO card.

Additional KYC:

There are some banks in which an applicant may have to fill up additional KYC format in order to disclose the tax residency status and all the other related under the CRS and FATCA requirement. This further requires the applicant to submit additional documents and proofs along with the account opening form.

Attestation:

It is vital the documents you submit are attested by the Indian Consulate or overseas bank or should be notarized by a foreign notary. Apart from this, an applicant also has to provide additional proof with self-attestation.

Dispatch:

To ensure the form and the other documents reach to the bank safely, it is of paramount importance to dispatch it using the right address. In some countries, banks also offer PO Box service in which NRI can easily drop the application in the post box with the right PO box number.

Certain Points to Remember:

To get the best NRI services in India, you can get in touch with the banks to get more details. The experts are glad to be of your help in more than one way. The experts offer all the assistance needed to complete the account opening formalities.