All you need to know about co – signing a loan

A loan is often a practical solution for most financial situations, along with offering plenty of benefits. Through these bank loans, you can easily repay back any financial debt, purchase a home, finance an education degree or even just finance a car purchase.

But while there are plenty of loan types available in the financial market, the fact remains that once the funds are borrowed, it must be repaid back at some point in time. Very often, this can be a sticky situation, especially if there is a chance that the borrower may fail to repay back the funds. Furthermore, the borrower’s financial profile may not allow them to get the ideal loan rates, and ultimately the financial aid to help get out of a financial issue.

This is where a co – signer will help. A co – signer, also known as a joint loan holder will share the responsibilities of receiving and repaying the borrowed funds. This has plenty of benefits as well as disadvantages. For one, with a property repayment strategy and sufficient funding, both applicants’ credit score will improve. If not, not only will both applicant’s score will drop down, but the mark of the debt will remain until the loan is fully repaid.

So if you are planning to become a co – signer for any bank loans, here are some tips you need to keep in mind:

Know your borrower: As a rule, you should keep your finance safe and avoid any risky options. This is equally applicable for when you become a co – signer. At this stage, you need to know your borrowing partner very well. This is including family members and close friends. No matter how closely intimates you are the borrower; you need to be careful before you sign up as a co – signer for the bank loans. After all, this is a debt both parties will share and bear until the loan is repaid. Only if you have absolute trust in the repayment capabilities of your borrower should you proceed with the co – signing.

Review your budget: When investing in the loan as a co – signer, both parties will be responsible for repaying back the borrowed funds. This also includes ensuring you have sufficient funds for the repayment. In the event the primary borrower defaults on the loan, you should be well prepared for the added strain on your budget. However, before taking this step, you should ensure and insist that the other borrower also maintains a sufficient budget to repay the debt obligation. This help assesses and maintains some level of confidence in their ability to repay back the debt. If it looks like there is a possibility that either budget will give way, review your budget strategy for better loan rates.

Get copies of everything: As a co – signer, you will get copies of the loan documents. But you must insist on duplicate statements. If you must, ensure that you get the required login credentials, so both parties are aware of the status of the debt payments.

What are the insurance policies to opt for in your early 30's?

You may be used to the finer things in life, thanks to your well - earning partner. But at any point in your life, you may be reduced to a situation where you will need to struggle to get even the basic of a meal. That is what happens to most individuals who rely on other earning members to maintain their lifestyle.
This is why it is crucial that you insure yourself. With the right insurance cover, brought at the right time in your early life will not only offer a good coverage but also save funds.

So if you are planning to opt for any insurance policies, here are the important three policies you need to opt for:

Term life Insurance: A life insurance may not seem much at a young age. However, there is a possibility at that point in your life; you may be repaying a loan. You may even have parents who are about to retire and who may be partially or fully financially dependent on you. In such a situation, a term life insurance will help in any case of any eventuality. In fact, the younger you are, the cheaper you can buy your term life insurance cover. Experts recommend purchasing a cover that is at least 10 to 15 times more that one’s annual income.

Personal Accident Insurance: Another one of the insurance policies that must be purchased is the personal accident insurance. This is one insurance cover that no individual should ignore, as most working individuals especially in the urban area, is prone to accidents given the required lifestyle. It has plenty of covers that offers a nominal pay, in the event where disability or death occurs. Barring any adventure sports and self-inflicted injuries, this insurance covers plenty of accidents that arise in the normal course of life. 

Health insurance covers: The incidences of hospitalisation may be low at a young age, but it cannot be ruled out completely. In fact, a hospitalisation caused by dengue can cost anywhere between Rs. 50,000 to 1 lakh. While your health cover may be covered by employers providing a health insurance cover, the high propensity of jumping jobs will reduce this likelihood. Furthermore, if you join a start-up, there is a high chance you do not even get the health insurance, putting you at a complete risk. The ideal health insurance cover for such individuals can be anywhere between Rs. 2 to 3 lakhs. As you progress in your job or age, you can then include covers with hospital cash, critical illness or any covers that include specific diseases.

Before you opt for any of these covers, you should use the service of online websites and check all the available options in the market. Avoid considering one factor, such as premium payable, before you make your decision.

Multi – currency card: How to pay less for foreign currency

In preparing for a trip abroad, it is crucial that you explore currency exchange. While your trip may be fully sponsored by an agency or your company, there will come a time where you may need to spend from your own funds. At this time, you still need to be aware of how much you will be spending if ever the time came you need to spend from your own pocket.

But instead of opting for your own banking cards, or relying on expensive foreign local funds, you can always opt for the multi – currency forex card. This card functions like any other banking card, but it is mainly used to access foreign currency. To make the most of this multi-currency card here are a few factors you can keep in mind:

Check conversion rates from a genuine source: The value of foreign currency is always in a state of change. Plenty of companies and lenders who offer currency conversion facilities also offer values of the current currency exchange mostly through their websites. In order to get an idea of a fixed value you will be investing, you can check these websites out. But how do you know which is the right value? Certain government based websites offer the day’s current conversion rates. You can check out these rates, thus giving you a ballpark figure of the best rates to invest foreign cash.

Shop around: Most banks offer foreign currency rates with wide gaps. In other words, the value of a single foreign currency will be different for different banks. For example, the British pound has been undergoing plenty of changes ever since Brexit, with the difference in values such as 0.9 pounds. Plenty of banks is offering different conversion rates based on this factor. By shopping around, you can get an idea of what to expect with a particular foreign currency value.

Exchange rates are constantly changing: It is difficult to predict the exact value of the foreign currency. A few months before you can monitor the value of the currency for a while and make an invest in your multi – currency forex card when the time is right. Don’t worry if the conversion rates increase after you invested in this card. Once you load the funds on the card, the conversion rates are locked at the time of loading.

Access to physical cash: In certain cases, you may want to access physical cash. This multi-currency card will help you access funds from any ATM or bank. All you need to do is approach the cash dispersing machine, and put in your PIN. Once this is done, you can easily withdraw a number of funds you want. This will help eliminate the need to access funds from your other debit or ATM cards, which will be charged at international conversion rates.

Debit card: Teach your children to be financially smart with these tips

Being financial literate is no longer an option, but rather a necessity. As adults, you will face several financial incidences, which require appropriate decisions, strategies and planning. At such a time, being financially ignorant will not only cost you but will also allow you to lose out on an opportunity for better financial investment.

The best to be educated about finance is by starting young. Your kids, in fact, have a better opportunity to become financially aware and experienced at a young age. All you need to do is introduce the debit card to them. But how will this bank card will work in their favour?

Here are some tips that can help them:

Learning all about account fees and minimum value: Most of the debit cards are linked with a bank account. This an ideal opportunity to acquaint your child with how banking accounts function. Most banks allow joint accounts with a minor. Therefore you can also invest a small amount of funds now and then. At the same time, you can teach your child about maintaining the minimum balance and maintenance fees. This way, your child can learn to manage and limit withdrawals from the joint account. Similarly with the fees, get your child to understand the fee structure and how the funds in the account will be charged for them. Encourage them to communicate with the bank on how to manage the fees and how to reduce them.

Managing funds: Urge your child to get into the habit of reviewing his or her debit card statements, physically or online. Suggest that they sign up for email or text alerts, especially if the bank account funds dips below a certain value. You can even opt for apps that can help track account balances, which will go a long way to managing spending and budgeting.

Explore the card features: Most of the different types of debit card comes with various features. For example, certain cards come with protection, which helps provide protection against unauthorised purchases or even reduce the unlikelihood of fraud. You may even sign up your child for ID theft alerts. Some cards even come with price protection which means, if your child has found a product with a lower price on an item within a specified amount of time after purchasing it at a high price, you can get the difference between the price you paid and low advertised price.

Debit versus prepaid card: While there plenty of different types of debit card that can be used, there is also the choice of prepaid cards. A prepaid card is an independent card minus the link to a bank account. You only need to load the funds on the card for spending purposes. There is a benefit of your child not racking up overdraft fees with a prepaid card. However, it also restricts their financial learning.

How to save up for a financial goal with the recurring deposit calculator

Savings your funds for the future is the need of the day. You may be earning more than your sufficient needs. But there will come a time where you will stop earning, and rely on your savings for survival. Furthermore, if your savings are not used for one purpose, can be used for several others, without harming your initial investments.

But to save, you need the ideal investment option and the ideal investment rates. Furthermore, you need also to calculate how much you need to save on a daily basis and what is the final amount you require. All these queries will be answered with the recurring deposit; a simple termed deposit that requires a fixed deposit every month till the tenure is met.

To help you calculate the ideal investment amount for this termed deposit, you can easily opt for the recurring deposit calculator to assist you. Here are few factors you will need to consider before using this tool for your RD investment:

Financial goal: This is the main factor you will need to consider when opting for recurring deposit. While it may be simple to start investing without any goal in mind, it will not serve any purpose. Furthermore, by setting a goal, all the factors of the investment will be set accordingly. For example, you need to save up for a family function or even a purchase of a particular product. Through this RD calculator, you can set up the amount needed to be met, along with the tenure that will be required to meet it. Accordingly, you can also opt for an interest rate that will suit the investment.

Income: Your income is another factor that needs to be taken into consideration when investing in this termed deposit. Once you have paid off your monthly expenditures and any other debts, your remaining disposable income can be used for your own leisure. But instead of indulging in a carefree expenditure, a small sum can be used to invest in the recurring deposit. You can use the recurring deposit calculator to calculate the ideal amount from your income to invest. Accordingly, you can adjust your income to be invested for the desired result.

Interest rate: The interest rate is normally the amount that is deposited at a fixed tenure. This based on the lender’s offered rate, along with the tenure you will be opting for. Higher the investment amount, higher the interest rate, the more will be the return on the investment. By using the RD calculator, you can easily calculate the ideal interest rate that will give you the preferred rate and outcome.

Tenure:  Tenure plays the most important role when it comes to this investment. After all, it determines how long the rates will be locked in. Furthermore, longer the tenure the more you will receive regarding return on investment. Using this tool, you can calculate the ideal tenure that will offer you the outcome you want.

Step up your investment savings with a recurring deposit

Savings up on your investments may seem like a challenge. After all, on a daily basis, you will be facing burgeoning inflation in addition to the steady increase of lifestyle aspirations amongst many other factors. All these factors will disrupt your means to accelerate your savings in order to attain your goal.

The best way to step up your investments is through a recurring deposit account. Here is how this termed deposit will help you double your investments in no time:

Automate your deposits: The statement, ‘well begun is half done’ is also applicable to your investments. Instead of waiting for a lump sum to conveniently accrue over months, you can prioritise your savings through a recurring deposit. Don’t worry if you have a hard time to commit to saving your funds. With this termed deposit, your can easily set aside the required amount of funds to meet your financial goal. In fact, you can easily automate the transfers with your bank, jut by giving standing instructions. Once this is set, you only need to stay alerted when the funds are being transferred and deposited.

Financially fast for a fixed period: This cathartic experience will guarantee a financial epiphany. So what does a financial fast entail? It involves spending a less as possible for a premeditated period. This period can include a week, month, or even a quarter. In fact, if you are determined enough, you can even make it for a year. But no matter the tenure, you need to have a start and end date, while truly coming yourself. Once the period of fasting is done, you need to take stock of your funds you’ve saved. This can include eating out less, choosing a less expensive movie theatre for your weekly outings, or even frequenting your favourite deli. Deposit your saved funds over time in the recurring deposit account which can be opened for this specific purpose.

Avoid getting caught up in the lifestyle creep: You may be tempted to opt for that fantastic deal you’re getting for that Bali vacation package. You may also be getting a great deal on your dream car, even though own a perfectly good and functional one. But in either way, you need not overleverage yourself to keep up the high life. Your priority should be your investment, which in this case is the recurring deposit with the access being used for your lifestyle indulgence. You’ll be relieved to realise that you have eliminated all possibilities of stress just by saving enough funds for a future loan repayment, or even a down payment.

Lower your fixed monthly costs: You will be surprised to know that you are most likely to overpay, through your routine expenditures just out of habit. A few simple steps will help eliminate this problem. For example, you can opt for a cheaper broadband connection, or even cancel a TV package that you never use. You can even contact your mobile telephone company as a request for better options that are in line with your usage. Once you’ve calculated the funds you have saved overall, you can reinvest this funds in the termed deposit.

Get the best of loan rates with the two wheeler loan EMI calculator

Two wheeler are a common sight in the country for various reasons. For one, it offers an ideal solution for the economical and logistical conditions. In fact, most Indians prefer owning this two wheeler as a means of conveyance, especially in terms of travelling. Furthermore, with the introduction of several international brands in the country, two wheeler fans are spoilt for choice.

But no matter the choice, the fact still remains that, in order to finance this purchase, you can either fund the purchase from your pockets, or you can borrow from your friends. But while either option is available, they are not favourable for everyone. This is where the two wheeler loan will be the ideal choice. Most of the banks in the country offer loans, thus giving users a wide choice of financing options to consider.

But which is the best loan rates you can opt for? After all, no two user’s financial history will be the same, creating a difference with their financial habits too. The two wheeler loan calculator will provide the relevant assistance here.

What is the two wheeler loan EMI calculator?

This EMI calculator is an online tool that is designed to calculate the EMI amount that will repay the borrowed funds. You only need to fill in the required details to get the required loan details that will assist you. Once you enter all the appropriate details, the resulting auto – computed EMI amount will reflect your financial requirement. In addition to the EMI value, you will also get additional details that can aid you to choose the most suitable terms.

Here is what the two wheeler loan EMI calculator will offer you:

Helps in recognising the EMI value: The chief use of this tool is to know the precise amount you will be paying every month. By knowing the hands beforehand, it will help you plan the appropriate loan rates along with help segregate your monthly budget. It also eliminates the needs to manually calculate each result, while ensuring accurate results.
Aids in choosing the term: Once you have calculated the ideal EMI amount to suit your needs, it becomes much easier to choose the tenure of the loan. If you feel that the loan value is a burden within the given tenure, you can extend the tenure proportionally bring it down the value.

Helps in comparison: The two wheeler loan calculator is also ideally the best tool to compare competitive rates. You can use the tool to compare the costs involved in the loan, helping you choose the most suitable loan offer. You can get a quote and jot down the outcome to compare with other offerings.

Helps in negotiating: Once you are armed with the basic details for the loan, you can use to leverage for a better loan rate. Factors such as rate of interest, processing fee and other similar factors can be easily negotiated.

Two Wheeler: 6 reasons why you need one today

More and more individuals are opting for a two wheeler over a four wheeler car. There are various reasons as to why this is choice of transport has become a popular choice for many travellers. Furthermore, the availability of the two wheeler loan makes it easier for individuals to purchase a two wheeler, without any financial burden.

Here are a few reasons why should you opt for this choice of a vehicle today:

1. Easy and convenient: This is one of the major reasons why plenty of individuals are opting for this choice of transport. In cities where travelling is an issue, especially during peak work hours, travelling by car is not only inconvenient but is also an economic waste. Two wheelers, however, offer the means to travel conveniently while making it a user-friendly option.

2. Affordability: Purchasing a two wheeler is less expensive as compared to purchasing a car, especially with a two wheeler loan. Moreover, fuel prices are constantly changing, making any choice of transport with low mileage, a wasteful option. As compared to a car, a two-wheeler will require less fuel and provide the higher mileage, making it an ideal choice economically friendly transport.

3. Wide choice: With an increase in the demand for bikes, plenty of manufacturers have now launched several new models and types. You now have a choice of two-wheelers ranging from simple transport to sports choices, to terrain friendly choices. Each of these choices has excellent features for several buyers, wherein which, with a 2 wheeler loan it will make purchasing a bike much more convenient.

4. Inexpensive: Several individuals are under the impression that purchasing a bike with a loan will account for a financial burden, especially with a high-interest rate. Furthermore, EMI’s may be seen as a drain on one’s monthly income. On the contrary, a 2 wheeler loan is quite competitive and ensures that borrowers enjoy a burden and complication free, financial solution.

5. Quick approval: Purchasing a bike does not require too many documents for verification. You would only need to documents pertaining to your identity, address proof and income. In fact, if you opt for a loan along with the bike, the application process is relatively simple. With no roadblocks, your application process will not take more than a few days.

6. Low down payment: When opting for a loan to finance the purchase of a bike, an applicant would need to provide a down payment. In the case of the two wheeler bike, the down payment is sufficiently low making it easier for any individual to opt for it.

While there are plenty of more reasons as to why you should opt for a two wheeler today. But no matter the reasons, in the end, you should ensure that the bike choice and loan option should be viable to you and your needs.

5 factors that determine your bank loan approval

Loans are the ideal financial solution for those who are seeking the immediate or large amount of funds. In fact, depending on your financial requirement, you can easily opt for a loan type pertinent to that particular situation.

But while it may be easy to apply for a loan, getting an approval on your application is another factor. Lenders and banking institutes who offer the different types of loans often refer to certain features before giving one’s approval for the application.

Given below are some of the loan aspects that are taken into consideration for most loan approvals:

Credit history: Most lending and banking institutes would prefer applicants who have clean financial habits. A credit score will indicate this financial health. Normally, a credit score of 800 and above is considered as the best score. The score in between 600 to 800 is considered good. Any credit score below that level will increase the chances of rejection on the loan application. If you already have a good credit score, you can not only get a good loan rate, but also a faster loan processing and fewer verification check.

Occupation: Banks are more preferential to occupations that are stable. Certain occupation profiles such as government employees, blue chip companies and doctors are more likely to have an approval on their approvals for bank loans. In addition to these profiles, chartered accountants, engineers and lawyers are more likely to get a loan approval. However, individuals who are working in private companies and self – employed companies will get the lowest rates. Banks are particular to this factor as the repayment capacity depends on the income of the person. A stable job will ensure that the income earned by the applicant will be continuous and without any delay.

Age: Age is another criterion that lending banks will look at before giving out different types of loans. In most cases, applicants between the age group of 30 to 50 years are most preferred, as they are considered more financially stable. After all, these individuals also have a decent number of working years left to repay back the borrowed funds. Any applicant with age above that will have a high chance of loan rejection.

Work experience: Most lending institutes request about your work experience, in a particular company. This is because the longer the employment years you serve, the more points you will earn with the lending institute. This shows stability in your work, especially if you are at the peak of your working years.

Relationship with the Bank: The older the relationship with the bank, the higher are the chances of getting an approval on your applications for bank loans. Most of these lending institutes value familiar customers, as they are aware of their financial past. A person who has had a relationship with the bank for more than 10 years will be preferred over the one with no relationship.

How do you use the internet banking safely?

Internet banking has now offered a convenient mean to access your financial needs right from the comfort of your home. Moreover, with the ever progressing technology, mobile banking is now making its way alongside this form of internet banking.

But the flip side of these convenient banking means is the risks that are involved. There is always a risk that a user’s data will be compromised or even an unauthorised access the user’s account is given. In fact, you may not be aware that your account or funds have been accessed by an unknown party until it is too late.

So how can you use internet banking without it affecting your investments and funds? Here are some tips you can keep in mind:

Opt for a genuine anti – virus software: In order to protect your computer, phone or laptop from any attempts of phishing, malware and other security threats, you will need to use a genuine anti – virus software. This software helps in detecting and eliminating adware, malware and spyware that can access any sensitive information or unauthorised data. 

Avoid using public Wi – Fi: One of the biggest drawbacks of an open Wi – Fi network, is that between the end user and the hotspot, a hacker can easily trace all data, without any difficulty. Unsecured connections are a perfect opportunity to introduce malware unknowingly into the device you will be using. If you must use the public internet network, avoid using it to access sensitive information.

Opt for VPN software: When accessing a public network, there is a risk that the data at your end or the source will be either compromised or exposed. On connection, you risk exposing your data or providing a gateway of exposure. But with a VPN software, the connection and data are kept secure and encrypted. In this way, your internet and mobile banking will be kept away from prying eyes.

Update your OS regularly: Be it your phone, your computer or laptop, your operating system needs to be regularly updated. These updates normally comprise of the latest security patches and updates which help protect your system against evolving viruses, malware or adware which can affect your internet banking. At the same time, avoid ‘rooting’ or replacing the original software of your systems with pirated systems as they can have glitches in them, allowing unauthorised access to your devices.

Update your passwords regularly to a strong one: While this may be a tedious job, it is important for you to keep your account safe while maintaining confidentiality. While it is a given that you don’t need to share your details with anyone, you should also be aware that you shouldn’t share your information even when you are requested for it. Regularly change your passwords to new and strong ones. For additional security, create and maintain different passwords for logins and transactions.

EMI Calculator: Calculating an effective loan cost

A loan is an ideal way to satisfy any financial requirement. Furthermore, different types of loans, such as a home loan, car loan, or even a two wheeler loan can be used for specific purposes. Alternatively, you have the personal loan and the loan against property that can be used for miscellaneous requirements.

But no matter the loan type, the fact remains that once funds have been borrowed, it must be repaid over a fixed period. At this stage, as an applicant, you should have sufficient funds to make the repayment. Do you have sufficient funds or income to repay both the loan amount and the interest rate? Furthermore, you should have sufficient funds to make the monthly payments through the EMI.

All these factors should be considered well before you even apply for the loan. But calculating these rates will be a tedious job, especially with the different loan rates and the competitor rates themselves.

This is where the EMI calculator will assist you. This calculator is used to calculate the ideal loan rates, by the given market rates. The details given below provide insight on how this tool will help calculate the EMI and how it can be used to estimate an effective loan cost:

Principal amount: The principal amount is basically the amount that you will want to borrow. Depending on the type of loan will you be applying for, the amount can have an upper limit. Take, for example, the loan amount for the loan against property cannot cap more than 85% of the loan. Furthermore, even if your financial profile allows you to access a high loan value, the loan amount you finally apply for should be easily repayable. The EMI calculator will help you calculate the ideal principal amount, thus ensuring that you can afford it before you can apply for it.

Interest rate: The interest rate applies to all the loans. However, the rate of the interest rate will differ from type to type. In certain loans, such as the personal loan, the interest rate is normally high. A high-interest rate would mean longer repayment tenures and higher EMIs. Therefore, it is crucial that you calculate the ideal interest rate. With the EMI calculator, you can calculate the ideal interest rate, based on the rate offered by the lender. In this way, you can easily get the EMI rate, along with the repayment tenure

Tenure: When you calculate the EMI you will also calculate the tenure of the period. Just like the interest rate, the tenure of repayment for certain loan types are fixed. For example, the tenure for a bike loan will be anywhere between a few months to a year, whereas for the home loan it can be up till 30 years. Since the EMI, comprising the principal amount and the interest rate is distributed through this tenure; you need to ensure that you get adequate time to repay back the funds.

Answer these questions before purchasing your car with a car loan

Purchasing a car has now become as easy as purchasing any other commodity. In fact, with the wide variety of cars available in the market, it has become easier to choose a car. An added advantage to this decision is the car loan.

Plenty of lenders are now offering car loans that are tied up with particular brands and models of cars. This not only makes it convenient for you, as a borrower, to consider the option of selecting a car but also to reduce the time and effort to shop around for one.

But while it may seem easy and convenient to opt for a car choice that comes tied up with a car loan, it is crucial that you review certain factors before you opt for one. Here are a few queries you need to answer before you opt for a car and loan for purchase:

What will you be using the car for?

A car is not about aesthetics. In fact, the different models and makes are designed to be suited to specific needs. This, in turn, influences the rates of the car loans. So if you will be using your vehicle for specific purposes such as travelling short distances within the city, then driving a compact car may be ideal. Similarly, if you will be covering long distances on long drives, you may want to opt for a car choice that is roomy and comfortable. Regardless of your daily itinerary, ensure that you go for a choice that is best in terms of fuel economy.

Who's going to be riding in the car?

If you are using the car for your own purpose, then you can always opt for a sleep sports car or a top of the line sedan. After all, it makes a great choice to go cruising down the highway or long roads. However, if you will be sharing your car with the rest of your family, then you might want to reconsider your choice of vehicle to consider their needs. In this case, a spacious SUV or van will make a better choice. Furthermore, since you will be driving your family around, you may also want to opt for a choice that comes with an advanced safety system. Since each model and make of the car influences the value of the loan, you may want to consider this choice before you apply for a car loan.

What car features would I want and need?

When you apply for a car loan, the loan value is calculated based on the basic components and specs of the car. If you need to add additional components such as a built – in navigation system or a voice activated controls feature, or even a top of the line audio system or improved environmental performances, the loan rates will increase. If you need to add these features to your vehicle, you may want to make a list and classify them on priority and usage.

All you need about the Personal Loan EMI Calculator

You may need urgent funds at some point in your life. But your friends and family may not be in a position to assist you. However, you still have an option of opting for a personal loan.

A personal loan, which is an unsecured loan will require no collateral or security unlike other types of secured loans. Furthermore, the end-use of the funds received through this loan can be used for several purposes. So if you need to finance a wedding, pay off any other loans or even sponsor a part of your holiday trip, the choice is yours.

Like other loans, the personal loan will be need to repaid back. In this case, you need to plan your finances beforehand. But how much do you need to keep? How much will you actually know how much will you be paying for the interest? This is where the personal loan EMI calculator will be useful. Given below are some of the commonly asked questions and answers pertaining to this financial tool.

What is a Personal Loan EMI?

Like any other loans, the personal loan comes with an EMI. EMI stands for equated monthly instalments. These monthly instalments are either fixed or floating, with a fixed tenure. Through this monthly instalments, you will be required to repay your loan. By using the personal loan calculator, you can easily calculate the EMI rates of the loan.

Why should you calculate the personal loan EMI before applying for the loan?

Before you take the personal loan, you need to assess whether you can afford the loan in the first place. At the same time, you need to ensure that you can afford the EMI, throughout the years required to repay the funds. Hence it is crucial that you calculate the approximate EMI using the personal loan EMI calculator. By using this tool before applying for the loan, you will know how much of a loan amount you can afford, settle for an interest rate that will suit and fix EMI rates that are affordable.

How to calculate the EMIs?

While you can calculate the amount manually, you can also use the personal loan calculator to calculate the amount for you. All that is required from you to input in the calculator includes:

• Loan amount: This is the first amount you will need to input. The loan amount is basically the value of the funds you will want to borrow.
• Interest rate: This is the rate which is calculated on the loan amount. Most lenders will already have a fixed base rate which can be increased to your preference.
• Tenure: This is the number of months you would require to repay back the loan amount and the interest rate.

As soon as you provide the required information, you can submit it for calculation. The result will be the calculated loan EMI amount.

All you need to know about the CIBIL score and Personal Loans.

When you apply for a personal loan, the lending institute will need to first consider whether you are worthy of receiving that loan. In other word, the bank would need to know and understand whether you are good with your finances. It will also consider whether you can repay the loan within the given time or whether you are prone to missing your payments.

Most lenders and banks will review your credit worthiness through your CIBIL score. This value is associated with you and your financial profile. It also indicated how responsible you are with your previous loans and credit cards. In fact, the CIBIL score is one of the primary parameters that is used to determine the approval of any loan.

Calculation of the credit score:

Your credit score is calculated on a specific set of parameters. In most cases, they include:

35% - The repayment history
30% - Amount currently owed to lenders
15% - Number of years of service debt
10% - Number and amount of recent loans taken or applied for
10% - Credit mix
Based on this, the score will be calculated within a range of 300 to 900.

How do you get a bad score based on these parameters?

There are various reasons as to why a potential borrower’s credit score can be affected. It includes the following:

• Defaulting in making on any of the repayments
• Extensively shopping for a loan but getting rejected repeatedly.
• No previous loan application
• No previous credit history for validation

When you need to avail a loan, a lender or bank will conduct a background check on the borrower. Through this check, they will ascertain if the applicant is capable of making payments and repaying their loan. Higher the credit score, higher will be your chance of availing a loan. Furthermore, you will get better loan rates in terms of a flexible tenure and better interest rates.


When it the right time to opt for a personal loan?

If you are planning to apply for a personal loan online or at your bank, you can consider these factors to increase your chances of getting the loan:

Sufficient time to improve the score: If you have sufficient time to improve your credit score, you can take the efforts and means to do so. A small loan or credit card repayment will help improve your score to the required acceptable one.

Good salary: If you earnings is good enough now, you can apply for this loan. At the same time, you will need to have enough capacity to repay your loans it will work in your favour no matter how low the CIBIL score is.

Consider your spouse’s CIBIL score: If your own score is low, you need not worry. Your spouse may have a better score than you. In this case, you can always apply for a joint personal loan online or at the bank. Banks will consider the combined credit score, thus increasing your chances of approving the loan.

How to consolidate your demat account into one account?

When you purchase any shares or securities in their electronic form, they are held in a dematerialized account, also known as a demat account. As a stock market investor, you may be familiar with the steps on how to open a demat account. In fact, as a frequent investor, you may or may not be in a position where you will hold multiple accounts.

But at some point in time, you may need to streamline the security holding that is scattered across all your accounts that have been opened at some point in your time. Furthermore, you may have to close the inactive or zero balance accounts. At this stage, you will also need to transfer all the securities in other demat accounts to only one account.

By doing so, this consolidation will help you save annual fees and charges, which you will normally incur on multiple accounts. However, to save you the trouble from visiting multiple DP offices or branches and submitting requisite forms and documents, you need to ensure that you are aware of the process.
Here is how you can merge the demat accounts into one:

Step 1: Get the delivery instruction slip
The delivery instruction slip (DIS) is like a cheque leaf. It enables the transfer of securities off the market, especially from one account to another. It will be required to be filled in and signed. Once done, it will be required to be handed over a depository participant’s office.

Step 2: Verify details on the DIS
The delivery instruction slip will hold the unique ISIN of the demat holdings to be consolidated. It would also include the name of the security and details of the source. It would also include the targeted demat accounts and DP ID. This delivery instruction slip will need to be signed by the demat account holder, as per the mode of the operations.

Step 3: Transferring the account
In the case of off-market transactions, it will put through the system. In case the target account hast the same account holders, there will be no tax implications. In this case, the demat account and the DP ID will be modified in records of the depository. However, the beneficiary owners will still be retained.

Step 4: Closing previous demat account

While you may the steps on how to open a demat account you will also be instructed on how to close the account. After the transfers have been completed, and the financial contents of the said accounts have transferred to the single demat account, the zero balances accounts will need to be closed by submitting an account closure form.

Once these steps are taken, you can easily use the single account for all your requirements. However, before you take this step, you should be aware that securities with a lock – in or lien cannot be transferred. Furthermore, securities transaction tax will not be payable for off-market transactions.

How many different kinds of current accounts do HDFC banks offer?

Let us first get to know what a current account actually is

This is a deposit account that mostly is aimed at professionals and businessmen. The current account has got a lot to do with liquid deposits and it also allows withdrawal of money and checks that are written against the balance in the current account and the number of transactions that can be carried out in the current bank account is not limited for a day.

HDFC banks offer myriad customised current accounts that serve the purpose of multifarious operations.

Ultima current accounts

This is an ideal current account option for any kind of businesses especially because they need features that go beyond even the most expensive products that are currently being offered in the current account market. The ultima current account is positioned to market specifically to large distributors, manufacturers, stockists, multi-speciality hospitals and dealers. The main benefits of an Ultima current account is that there is unlimited free local and anywhere cheque collections as well as payment facility and to top it all it also offers free RTGS / NEFT collections and payments.

Ezee current account

For savvy traders who operate across a number of cities the  biggest problem is the transaction costs, an Ezee current account  option will help reduce the transaction costs  but at the same time provide access to the most advanced and secure net banking ways and tactics.

Supreme current account

Large traders who operate from across the country face a lot of high transaction costs, the supreme current account help reduces the transactional costs and this offers free access to the most advanced and secured net banking and mobile banking ways and tactics. One also can avail the benefits of higher cash deposit limits at all HDFC bank branches across the country. Along with that with a Supreme current bank account one can avail fi free RTGS/NEFT collections and payments on all transactions.

Agri current account

This current account takes into account the seasonal nature of the agriculture-related industries; the Agri current account offers a lot of features that almost entire maximum return. There are a lot of other benefits as well, one does payment and collection of cheques at all bank locations. Another added benefit is that users of this current bank account can avail free monthly cash deposit at their home location up to Rs 10 lakhs.

Plus current account

Businesses that have suppliers and customers from across the country, the cost of transaction soars a lot higher and when one has a plus current account that cost is heavily cut down  and this current account also offers higher limits for a wide  range of transactions  resulting in a lot of money saving.

Everything you need to know about savings bank account

What actually is a savings account?
It is a bank account in a bank or a financial institution, where if one deposits money, it bears interest and at the same time the bank or the financial institution provides a modest interest rate on the money that is deposited over time. The banks or the financial institutions in which your savings bank account is might voluntarily limit the number of times you can actually do a transaction on your bank account and this might be a regular feature each month and at the same time they have every right to even levy fees if the required amount of minimum balance is not maintained in the bank account.

Let's get to the brass tacks of a savings account.

In sharp contrast with a savings bank account a checking account will allow you to write cheques and one could also use the electronic debit card to access your money and the best part is checking accounts don’t really have limits to the number of times of the transaction that one makes every month. Savings bank account is generally for saving the money and those us why one doesn’t really use them on a day to day basis.

What are the benefits of savings bank account?

One of the main benefits of a savings account is that the savings bank account pays interest and therefore in the long run the money that is put in the account will get you some extra money by just lying in the cabinet. Along with facilitating savings, a savings bank account it is also very easy to access your money through it

What are the disadvantages of a savings bank account?

The liquidity of the savings bank accounts is one of the main advantages of a savings account, however it is this very feature that makes money in the savings bank accounts very readily available and that is also a reason behind the temptation to spend them and the interest that they pay are not too much they pay a very nominal rate of interest.

How does the savings account work?

In order to get a savings bank account for yourself, you have to visit your nearest bank and at the same tie you can also set up a bank account online on the bank website. In order to make deposits you have to visit the bank in person and you could set up automatic transfers from your checking account or you could also have the option of getting a portion of your salary deposited into your savings bank account. In order to withdraw cash you have to either visit the bank branch or use an ATM.

All you need to know about gold loans

It is evident a gold loan is a loan amount that is given against gold. Gold loans are offered by a lot, any nationalised banks, private banks and a lot many financial institutions and these loans are offered to people who avail of the loan against gold at attractive interest rates. Many people avail of a gold loan so that money can be borrowed for a shorter tenure in order to meet the requirements of the children education or some emergency cash crunch in the family. While some people are of the opininon that instead of keeping the gold in the locker, it must be worked out for some added cash.

What are the advantages of a gold loan?

In order to avail for a gold loan you don’t require to show any salary or any income and for that matter one doesn’t even have to get hold of any credit report. This is the sole reason behind unemployed people being able to go for a gold loan.

In clear contrast to any other loans, for availing a gold loan one doesn’t require to submit many papers, just the nominal address proofs and ID proof are more than enough in order to get the loan amount.

The low-interest rates are the main benefit of a gold loan. Usually a gold loan is given at the rates of 12-16 % per year and this si much lower when compared to the interest rates of a personal loan which one can avail of at an interest rate of 15-26% per year.

In rural areas, in exchange for gold, agricultural loan too is granted  to every agriculturist at  more than nominal rate of interest of 7 to 8 % per year, however  in order to avail this loan, proper agricultural documents have to be submitted to the bank.

This is one of the simplest loans because unlike the procedure of other loans when availing a gold loan, you just have to pledge your gold with a bank or any other financial institution and then you can get up to 80% of the market value of the gold as a loan.

There is the option of paying only the interest during the entire term and after the tenure you can actually pay the entire principal amount altogether,
This is the only loan where the banks take just about 2 hours to complete the approval procedure for the gold loan and if we take the nonbanking financial companies into consideration, they at most take a few minutes to complete the approval procedure and one can get his hands on the loan amount almost immediately. Therefore in the case of immediate financial aid a gold loan is the best option.

Do you know what prepaid forex cards are?

When you are travelling abroad, these forex cards are used in order to make payments and make your travel convenient. Forex cards are pre-loaded and these let you access money in the required local currency. The better part of forex cards is that you can always top them up as per your cash requirement.  If you want to withdraw cash in the foreign currency you can always do that with this card. At the same time you can also check your balance and shop. There are many banks in India that offer forex travel cards they are ICICI banks, HDFC bank, SBI bank, Standard Chartered Banks, Axis banks offer forex cards.

How do you apply for a forex card and is there a limit on them?

Form A2 requires to be submitted by you and at the same time any other required forex document as is mandated under the Foreign exchange management act regulations, some other documents needed to be submitted are proof of passport and required funds. The card gets activated only when the funds are cleared or paid to the bank. If in case you are planning for a trip you can load up the card with a maximum of Rs 4.5 lakhs or $10,000. If in case you are undertaking a business trip, you have a limit of Rs 11.25 lakhs or $25,000. The banks charge Rs 100 to Rs 300 per card and this charge varied from one bank to the other.

Are these better than the other cards that are available?

A service charge of 3% for each usage is levied on the debit and credit cards and if in case you are withdrawing from ATMs, it would attract a flat withdrawal fee of Rs 300. You have ti be prepared to be billed at the exchange rate prevailing on the date you are converting the money and you will also be charged according to the conversion rate. Also you have to be swift enough to pay all your bills on time because any delay in the bill payment will attract a penalty of 2.95 percent every month. There travellers cheques are accepted at limited outlets and therefore when compared to the other options forex cards are economical because the exchange rates get locked on the day the transaction was done. Just because the forex cards are available in a lot many currencies you can avoid currency conversion as well that will in turn save you a lot of money.

Does the use of the forex cards get impacted by the exchange rates?

Of course it does. You have to be very careful of the exchange rates when you are doing a transaction with a forex card.

Health Insurance: All you need to know

Health is the most important aspect of our lives Everyday people are constantly being made aware of the importance of good health and the benefits of living healthy. However nothing is certain on the surface of this earth and not even our health. There is bound to be uncertainty in every phase of our life and our health too is bound to have its own issues.

We do fall sick due to flu  or sometimes even some major illness and sometimes even worse things befall for instance one might be involved in some gruesome accidents. Whatever the case may be, when these things strike us, they do at a time when they are least expected and we are not left with a choice but to squander all our savings behind them and in worst cases, it might even push us to absolute bankruptcy. The hospital fees and laboratory costs, the fees of the doctor are forever on the rise. Therefore opting for a health insurance seems really sensible in today’s day and age. Sometimes a health insurance may cost a lot but not having one might cost us even more. When one has met with an accident the hospital bills are more than enough to empty our pockets, let alone the medicine costs. If cancer is taken into considerations things are even worse with the costly chemotherapy, the regular doctor check-ups, lab tests, it could drain one completely in the matters of money.

If one has a health insurance it could help you get rid of the costs of regular medical check-ups, surgeries, contact lenses, glasses and even emergency treatments. Before one goes in for a health insurance it's mandatory that he or she knows everything about it.

There are two main kinds of a health insurance plan. They are the indemnity plan and the managed care plan namely.

The indemnity plan is also called the fee for service plan. This health insurance has wider freedom and flexibility in the choices of the insured. He/she can pick the doctor, hospitals, labs and other medical service providers. This can be done only when the medical service is included in the contract. But the main hitch with the plan is that the indemnity health insurance doesn’t pay up for all the charges, in this case the insured has to shoulder 20% pf the payment. The indemnity health insurance plan just covers illnesses and accidents however diseases like flu shots and birth control are not included.

In the case of managed care health insurance, it is quite a lot different from the indemnity health insurance plan, firstly the choice of the doctors and hospitals is limited to only those who have contracts with the HMO and also preventive care and mental health treatment is covered by the health insurance plan.

All you need to know about NRE fixed deposits

Here are the main highlights of an NRE fixed deposit account

This is the rupee fixed deposit for foreign earnings; one can enjoy full repatriability of investment including the interest with an NRE fixed deposit account. The interests earned in the accounts are not taxable in India and the best part is loans  of up to 90% of your deposit at attractive interest rates.

Now let's have a look and get an understanding of what NRE fixed deposits actually are

NRE fixed deposits are a high return rupee deposit option to invest your foreign income.

Why should one choose an NRE fixed deposit account?

There are numerous benefits if one chooses an NRE fixed deposit account , with these accounts you earn high tax-free interest  and also get the facility of free repatriability on al;l your foreign earnings  plus a plan up to 90% of your deposit at attractive interest rates.

Let us dive into the features and benefits of the NRE fixed deposit accounts as well.

With NRE fixed deposits the customers can enjoy a high level of flexibility; you can fund your account with any convertible currency. You are also entitled to a lower deposit amount of Rs 25,000. The renewal process to is simple and without a lot of hassles, the principle and the interest earned gets automatically renewed when matured.

There are competitive exchange rates when you want to convert your foreign currency into rupees and the movement of the money too is convenient, they are freely repatriable. All the interest earned on the NRE fixed deposit account is non-taxable in India. The loan options too are excessively alluring with loans up to a 90% of the deposit at attractive interest rates and maximum INR 500 lakhs. The processing of the NRE accounts is quick as well with EDC-A (Electronic Deposit Confirmation Advise) on your email Id within 1 working day but this is possible only when you have subscribed to the account statement through email id option.

The main documents that are required to open an NRE fixed deposit account are self-attested photocopies of passport, valid work permit or employment visa or residence visa or residence permit and proper address proofs.

When you will be submitting the application for the account opening from outside India, you will require photocopies of the undermentioned documents that have it be self-attested by the document holder as well as attested by a banker or a notary or an embassy official or a consulate official – The first and last four pages of your passport, your valid work permit , employment visa, residence visa and residence permit and other address proofs.

When all these documentation have been done and duly submitted without any issues, you are on your way to get your NRE fixed deposit account.

All you need to know about NRO accounts

These are the key highlights for an NRO account or the Non-resident ordinary accounts in India.

You can land your money from your foreign earnings in India.

With an NRO bank account you can avail of free money transfers at competitive exchange rates. You can also add an Indian resident as a joint holder of your bank account.  As an NRO account holder you are also entitled to get a free mandate card and cheque book for your family in India and due to this you can also provide them access to your bank accounts anytime and anywhere.

Now let us get into the details of what exactly is an NRO account

An NRO account or a Non-resident ordinary account is a savings account that enables you to maintain your income earned in India such as rent dividends, pension so on and so forth.

Why should one go for an NRO account?

Non-resident Indians should go for an NRO account because of the assurance it gives to manage the local rupee earnings in India efficiently even as you are living your life abroad. You can also easily predesignate your account when you change the status from resident to a no resident Indian.

Now lets us dive right into the characteristics and the benefits of having NRO accounts

There is a much higher yield post tax, one can avail of this benefit by the DTAA benefit facility.

Anyone who holds an NRO account can avail of low cost and hassle free money transfers which are readily available through myriad offline and online modes at competitive exchange rates.
Another benefit is that not much balance is required to maintain the NRO account, just Rs 10,000 is required to do the needful.

With the help of a domestic ATM cum debit card  you can have anytime and anywhere access to your NRO account at over 11000 ATMs and over 3000 branches  all over India plus one has the facility of the phone banking and 24x7 net banking as well.

The interest rates calculated on daily closing balances are at 4% per annum and the interest is paid on a half yearly basis and in the months of June and Decembver. The interest that is earned in the current financial year is completely repatriable but this is only after the tax has been deducted.

Another benefit is the safe and simple online money transfer tracking service with online transfer to over 100 banks in India.

An NRO account can also have a joint holding with an Indian resident or an NRI; what’s more you can also predesignate your NRO account when you become an NRI however your account number doesn’t change.

Here’s all you need to know to know about NRE accounts

The key highlights of a Non-Resident External (NRE accounts) are as follows: This is a safe way to land your foreign income earned outside India.

The money transfers are free and at competitive exchange rates

You can enjoy full repatriable of your money and earn tax-free interest in India.

You can also get a free mandate card and cheque book for your family in India and this can help you provide them anytime anywhere access to your account.

Now lets us know what exactly is an NRE account - an NRE or a non-resident external account is a saving account maintained in where you invest your foreign income earned outside India.

Why should one opt for an NRE account?

An NRE account lets the account holder enjoy tax-free interest and full repatriable of funds and also because of the fact that this is the most convenient way to use your foreign earnings in India.

Let's dive right into the other benefits and characteristics if an NRE account

No interest amount that you have earned in India on of your foreign money is taxable.

All the funds in an NRE account are fully repatriable and they are not charged for repatriation.

The minimum monthly account balance needed to maintain an NRE account is just Rs 10,000.

With an international Debit card you can access your bank account at over 11000 ATMS and over 3000 branches all over India and phone and the 24x7 net banking as well.

The interest rates that are calculated are done on daily closing balances at 4% per annum; the interest is paid to you half yearly in the month of June and December.

The money transfer service of your foreign money to the banks or financial institutions in India is safe secure and easy. You can transfer your money to over 100 banks in India and you can also track your transfers.

You can hold a joint account with another NRI as well.
There are a lot of other benefits as well, there are free cheque books and ATM cards for the mandate holder and what’s more there are also handpicked exclusive offers that are designed especially for the NRE account holders that cater to all your need when you are in India and abroad. Not to forget the free PO Box facility that is available to send documents.

The monthly average balance that is required to maintain an NRE account is just Rs 10,000 at an account level and you have to keep a minimum balance of Rs 25000 at a customer id level, if in case for some reason you are not able to maintain this balance at a savings bank account level services charges will be levied on your account.

Do you know how to open an NRI account from overseas?

All non-resident Indians are allowed to open non-resident accounts external accounts and non-residential ordinary accounts so that they are able to open savings bank account or fixed deposits with different banks in India.  However, it is quite evident that many NRI’s find it very difficult to visit banks in India in order to complete their banking formalities which are why their bank account information is impeded. In order to combat this issue, they can now open their bank accounts from the comfort of their homes overseas by just following these simple steps.

Download the form – The form for no n fact to face account opening is now made available on websites of almost all the banks. Whichever NRI wishes to open a bank account has to first download the form and fill it up so that the account can be opened. Some banks also provide the user with the facility to fill up the form online so that one doesn’t have to download it.

Attestation – some of the documents have to be attested by the Indian consulate as is the prerequisite for most banks for the opening of an NRI account. An NRI can get the documents attested from the consulate or an overseas bank or make it notarized from a foreign notary. If you wish to submit additional approved proof with self-attestation that is allowed as well.

Additional Know your customer – Some banks might want the applicant for the NRI account to fill up the document that pertains to the KYC or the “Know your customer”  in order to disclose the tax residency status  and related details under the  Foreign Accounts Tax Compliance Act (FATCA) and Common Reporting Standard(CRS) requirements. For this some additional proof needs to be submitted to the bank which would have to be submitted along with the documents that are mandatory for the opening of the bank account and the account opening form.

Dispatch – now once all the aforementioned steps have been done, all the documents duly stamped and signed 9one has to cross check several times so that nothing that is required is missing. Because if anything is missing, the banks will reject the documents and they will be asked to send them once again after rectifying their mistakes which might end up in being an unwieldy and lengthy procedure) once the cross checking has been done and all the documents are in place, they have to be sent or dispatched to the bank branch. Alternatively some of the banks provide PO box services in certain countries where the NRI can drop the application in a PO Box with a PO Box number.

Do you want an education loan? Here’s how you can avail it.

Whether you are buying a house or about to be going in for higher education, loans are common today. The college fees are increasing every year a lot of the people don’t really have any option, they have to apply for an educational loan. For instance the engineering courses, the fees could be Rs 5 to 10 lakhs and if one wants to pursue a medical degree in a  private medical college, the cost will go up to Rs 50 lakhs. For postgraduate courses on management and other courses as well, the fees can shoot up to more than Rs 10 lakhs.

It is not unknown that fees in private colleges are more than the fees in government colleges.
When going in for educational loans it is advisable to do a proper research so that you know pretty well what you are exactly looking for. Banks offer educational loans up to Rs 10 lakhs for courses in colleges in India, and a sum of up to 20 lakhs for studying abroad and these payout of loans are in absolute accordance with the banks’ association norms, however in case of post graduate courses in premier management colleges in India for instance IIM or   institute of Management, banks offer loans up to Rs 20 lakhs. These loans cover the tuition fees, examination fees, library fees, laboratory fees and hostel fees and they cover the costs for purchasing books, equipment, instruments and uniform, travel expenses for studies abroad, caution deposit or refundable deposit so on and so forth. There are at times limits on them and the education loan also covers expenses for the project tours and study tours.

What are the conditions for sanctioning the loan?
The lender checks on safe things before the loan is sanctioned. The first and foremost check that is carried out by the lender is to be sure whether the student who applied for the loan has actually enrolled or secured admission for a course or not, after that the quality of the course and the college will also be taken into consideration whether it si certified by UGC or any other university of technical education. The lender also checks whether after doing a course the student will be able to get himself a secured job so that the repayment of the loan is a breeze. The lender also checks the credit history of the co-applicant or the guarantor. At times some education loans are backed by property mortgage, in such cases the lender will also thoroughly check the value of the property.

When an education loan is availed from a bank, loans for tuition fees, examinations, library and every other charge are directly paid to the educational institutions.

Everything you need to know about Portfolio investment Schemes

The portfolio investment scheme allows NRIs to invest in shares of Indian companies, in secondary market, on repatriation and non-repatriation basis through a registered stock broker on recognised stock exchange NRIs can invest in repatriation basis under the PIS 5% of the paid up value and capital of each series of debentures of Indian companies that are listed within the limits that are overall permissible and these are subject to compliance with Reserve Bank of India guidelines. The Non-Resident Indian customer has to take delivery of the shares purchased and give delivery of the shares sold.

If one wants to make an investment on the basis of repatriation, he would have to make it from the funds available through the inward remittance of foreign exchange banking channels that are the usual or out of the money that are held in the NRE or FCNR banks accounts that are maintained in India.

Below are enlisted some of the main characteristics of NRE Portfolio Investment Scheme

One cannot transfer the shares by way of sale under private arrangement that have been purchased by the NRIs on the stock exchange under PIS  or by way of gift  to a residential Indian or outside India without the prior approval of RBI

The NRIs have to open a Non-Resident Rupee (NRE), Passenger Information System (PIS) account  so that they can invest in the secondary market on repatriation basis NRO savings bank account will have to be made use of if any investments are to be made.  The NRI’s can maintain the NRE PIS account which is independent of NRE savings bank (SB) account for their other needs. To deduce the proceeds of the share sale. The PIS account will be used, and all these transactions will have to be reported to the Reserve Bank of India.

The NRIs cannot maintain multiple Portfolio Investment Schemes accounts  with various banks  Both the purchase and the sale contract notes  should be submitted by the NRI in original within one day or maximum 2 days  from the execution of the contract  to the designated branch  with whom the PIS account is maintained. The sole responsibility os on the NRI for the submission of the contract notes to the designated branch of the AD bank.

SBI offers the facility of opening NRE PIS account for its NRI customers who have a KYC compliant NRE Savings Bank (SB) account that the bank maintains . For new customers all these accounts can  be opened simultaneously. The PIS account is mapped to the NRE savings bank account that is being maintained with any of the SBI branches so that the customer is able to execute trades. The PIS account is used to be settling funds that have arisen out of sale and purchase transactions.

What are the most common 4 methods of international money transfer?

There are various alternatives available to transfer money to India. However, it is mandatory to research about it ever more and make sure you choose the best while you send your money.

Online Transfer
This is the simplest method for an international money transfer. To do this all one requires is an internet connection and you also should be using the local banking services to send the money to an Indian account. Some other important things that you will be requiring to do this successfully are the account holder’s address and obviously his/her name, the name of the bank of the recipient, the IFSC code and the branch address to which the money will be sent. You will also need the IBAN or SWIFT code of the bank the money is being sent to. This method is mostly suggested if you regularly transfer funds. You can get rid of the steep banking charges and you can also carry out the transaction from the comfort of your home.

ACH transfer
Automated clearing house is another way of international money transfer and is used for transferring money from an Indian account to an account in the US.  A huge advantage of such a method to transfer money is, you can get rid of long bank queues, you will not have to worry about hidden costs, you will also not be required to send checks for the money transfer to materialise. When the money is transferred in this manner, the bank gets the sum that has been sent in the next four working days. This amount can be delivered to the payee on the next day.

Paypal transfers
Another method of electronic money transfer from one account to another throughout the world. Paypal money transfers can also be cloaked as an online money transfer method. While sending the money through paypal be sure that you won’t be charged a penny, however, the one who receives the sum will be asked to pay a nominal charge of 3.9% on every international money transaction along with the exchange rate of the transfer.

Wire Transfer
One of the most commonplace methods of transferring money internationally is the Wire Transfer method. This method requires the sender to visit a financial institution or a bank or bureaus that cater to international money transfer, for instance Global Exchange, book my Forex,  Western Union, Remit2India, and transfer the money. This wire transfer international money transfer service first takes all the required details about the person or persons the money is being sent to from the person sending the money, the sender is also supposed to divulge the bank details of the money recipient. One those facts are collated, the bureau then starts the transfer procedure which takes the next few days to complete.

What are the different Types of NRI bank accounts and NRI services?

Have you just become a Non Resident Indian? This is for sure one of the most important and crucial problem that you might be facing now is with regards to a bank account in India. Are you aware of the various NRI services available to an NRI and the kind of bank accounts you can maintain in India? There are mainly three kinds of NRI bank accounts one can maintain they are 1. NRO 2. NRE 3. FCNR

Let us know about these NRI banking accounts a little more deeply.

i. Ordinary non-resident rupee account– These are primarily rupee governed NRI bank accounts that are non repatriable and these can either be in the form of savings, recurring, fixed deposits or current accounts. All of these accounts can be jointly opened with Indian residents.  When a resident of India takes up a job abroad, his bank account automatically gets labelled as an NRO account. Now all the deposits made into this accounts can be used for all authentic payments in the Indian currency.This is one NRI service that should be availed of.

ii. Non resident external rupee accounts – Non resident Indians (NRI’s), Persons of Indian Origin (PIO’s), overseas corporate bodies (OCB’s) all are worthy of opening NRE accounts. These NRI bank accounts again are primarily rupee governed accounts and these can either be in the form of savings, recurring, fixed deposits or current accounts. These accounts can be opened by money paid in support of funds in free foreign exchange. So any foreign exchange that is accounted legally for or any repatriable income of the account holder can be deposited in the account. What’s more, you can jointly operate these NRI bank accounts with other NRIs and PIOs and a power of attorney too can be given to other Indians so that they can conveniently operate the accounts. When talking about NRI banking this is one such bank account which is more than useful.


iii. Foreign currency accounts – This is another NRI services in
India available to non-resident Indians (NRI’s), Persons of Indian Origin (PIO’s) and overseas corporate bodies (OCB’s). They are allowed to open such bank accounts in US, Australian and Canadian Dollars, Pounds, Yen and Euros. However something worth noting with regards to this is that such NRI bank accounts are to be opened only for term deposits that would amount to the following time periods –
1. one year or more however less than two years,
2. two years or more however less than three years,
3. three years or more however less than four years and
4. 4 years or more however less than five years or
5. just complete five years.

iv. Non resident rupee deposit accounts (NRNR accounts)  - Non-resident Indians (NRI’s), Persons of Indian Origin (PIO’s), overseas corporate bodies (OCB’s) are allowed to open such bank accounts by transfer of freely convertible origin currency funds from abroad or NRE or FCNR accounts. Non resident accounts can open such accounts in conjunction with other non residents except Pakistani and Bangladeshi people. What’s more the deposits to such accounts can be held jointly with a resident. The time frame for such deposits range from6 months to 3 years and then it can be renewed again.

What is the best money transfer to India, online?

This is a big question everyone wants to know about is which is the best way of online money transfer in India? There is no single best online money transfer service in India. It all depends on a lot of other external factors. Some want best exchange rates, some value for money, some want ease in using and sending the money fast and a host of other things.

When it is an emergency and you want to send the money as fast as possible you could ease the Western Union Money Transfer because it is aimed at people who want to transfer money soon on an emergency basis. They charge a flat fee and the exchange rates too are lower in comparison to the other money transfer services.

Xoom money transfer to India – Xoom is yet another money transfer service which offers a fast and easy money transfer. It has tie-ups with Punjab national bank and is touted to have a good service. They too have fees associated with every transaction. If it’s a check payment the transaction fee is $ 4.99, if you are making the payment with a debit card, there is a transaction fee of $9.99 and if in case you are doing the transaction with a credit card the charges are $9.99 as well.

When you want to have good exchange rates and are not worried about how soon the money will reach your people, you can go for the remittance service to India which requires you to have an account with them. They give good value for money remittance services and good exchange rates but the process isn’t speedy enough.

State bank of California Remittance service – The State bank of California is a US bank and it is more like SBI’s US extension. However they want you to open an account with them in order to use their money transfer services. When you open your account with them, you can add recipients for the money transfer.

TransferWise – This is a new game changer in the world of online money transfer that is transparent and simple and they even claim to have no hidden charges. For money transfer up to $300 they flat charge $3 and for money transfers up to $4999.99 the fee is 1% of the amount, over that the charge is 0.7%.

This means that for a transfer of $6000 the fee would be 1% of the first $4999.99 and then the additional $1000.01 the fee would be 0.7% that would make it a total of $57. When this rate is compared to the rates of the other banks, one can easily find that this rate is much higher.

Here are three best credit cards in India

Credit cards become useful in case you do not have the cash with you and you need to make a purchase. You can use your credit card and own what you want to own and pay later. This feature of a credit card does come in handy but at the same time too much usage of a credit card might also and you up in a lot of debt. However there is some cards which have a lot of reward points and other benefits for their usage. Therefore before going in for a credit card it is always useful that you do a proper research and then choose a credit card that suits you and your purpose.

Here are a few of the best credit cards you can get your hands on

1. Standard Chartered Manhattan Credit Card.
2. ICICI Instant Platinum Card.
3. Standard Chartered Platinum Rewards Card.

1. Standard chartered Manhattan credit card – This is all time favourite card where one can spend almost 90% of the expenses and save a lot of money through cash back and reward points. Nowadays it’s more of a trend to spend money on grocery in stores like reliance fresh; Spencer’s or Big Bazar and this card will offer you 5% cashback on all your grocery spends. Rs 999 are the annual fee for the card which you can get waived off. You also get 5x rewards when you use the card to make payment of your hotels, airline ticket reservation and fuel.

2. ICICI Platinum credit cards – it is difficult to get your first credit card in India. However, if you have a fixed deposit or you have a savings bank account with the ICICI bank, ICICI offers you instant credit cards. There is absolutely no annual fee for the credit card. There are 3 payback points for every 100/- spent, the card has a global emergency assistance facility and the card replacement service is also available. You also get 100/- off on movie tickets twice a month. What’s more a 2.5% fuel surcharge waiver can be gotten on a transaction of Rs 4000 at HPCL pumps.

3. Standard chartered platinum rewards card – if in case you are a salaried employee, you have a better chance of approval for this credit card, you can also get additional 1000 reward points if the transaction is done within 60 days. Now travel in Uber because you can avail 20% cashback on your Uber rides, you also get 5 reward points each on every 150/- spent on
dining and fuel.