All About Business Loans

A business loan is always the answer to several financial problems and crises, small businesses and start-ups usually face Getting a business loan is a lengthy process and these are few of the ways one can get a business loan.

You have to come up with and present a good business plan – your business plan has to very succinctly and clearly bring out what your business entails because this is the first and foremost requirement for all the banks who will be giving you the loan. When you have a plan that is very clear int terms of stating the business goals you plan to achieve and how you would you be utilising the money that would be lent to you, you are more likely to get a quick approval for the loan. Especially, in case of small setups, business plans are the only thing to rely upon and they therefore assume great importance.

Check your Credit Score – You have to be very careful and be completely aware of your credit score before you even think of applying for any loan for that matter. Your credit score is the deciding factor and it is one of the most important factors that banks use when they are judging one’s capability to pay off the borrowed amount. Therefore, when your score matches the eligibility criteria of the lending institution, your chances of getting the loan approved increases and you end up getting the loan.

Know how much you need and why: All banks and other financial institutions have two main  categories namely good reasons and bad reasons, and both these reasons purely depend upon what you need the money for. So make sure to keep in mind all the expenses for real estate, or in case it is for software development and buying of necessary equipment because these are usually the good reasons. The bad reasons are requirements for building offices, acquisition of non- essential business assets and supporting any financial loss. Therefore, before moving towards a bank or a financial institution for the business loan, you have to weigh your requirements and reasons properly. You also have to set your financial projections right and get an accurate estimate a proper budget for all your plans, and all of these should be done much before you apply for the business loan. You also have to now how much amount you would be borrowing

You have to get all your documents in place- if your documents are in place and all of them are arranged in order, getting the business loan gets a lot easier and the disbursal is quicker. The foremost documents that you would require are your ID proofs, address proofs, balance sheets, requisite business documents and permits, cash flow statements, and income statements. These documents are essentially required by the banks or the institutions to prove that you are credible enough and you have the ability to pay back the loan on time to bank and without delay.

It is best to compare all your lending options– When you have your document in place, you have to find out which banks and financial institutions are lending business loans to customers. This is the stage when you need to do an extensive research of what all borrowing options are there in front of you? You can then make a list of banks and lending institutions that shell out business loans and give you the best rates for the loans and pick the most suitable one.

What Is A Demat Account?

Have you made up your mind to buy shares this year? Or have you decided that at least a part of the initial public offering is what you desire? If your answer is yes then you need to open a Demat account. Then there are a few questions that need to be addressed.

Do you know the difference between a depository and a depository participant?

A depository is a place where the stocks of the investor are held in an electronic format. This is more like a bank. The head office where all the technology is present and the details of al the accounts held is like the depository. And the DPs are like the branches that cater tp the individuals.

There are just two depositories in India namely the National Securities depository Limited which is also known as the NSDL and the central depository services limited  also known as the  CDSL. There are more than a 100 DPs

What is a Demat account?

Demat account is a Dematerialised account. When you want to save money pr you need to make a payment in cheques you need to open a bank account and when you want to buy and sell stocks you need to open a Demat account. Therefore is like a bank account where the actual money is replaced by shares. You have to approach the DPs which are like bank branches to open your Demat account. For instance if your portfolio shares is more like 40 shares o Infosys, 25 of Wipro, 45 of HLL and 100 of ACC, everyone will show in your Demat account.

Therefore there is no need for you to possess any kind of a physical certificate  that show you  that you are the owner of these shares. They are there present in your account in an electronic format. Whenever you buy and sell the shares they get adjusted into your account. This is more like a bank passbook or an account statement, the DP will provide you with statements of your holdings and statements from time to time.

Do you want to know whether the Demat account is a must or not?

Nowadays all trade have to settled in a Dematerialised form, although the market regulator, the securities and exchange board of India also known as the SEBI has allowed trades of upto 500 shares to be settled in a physical format, however the case is that no one wants a physical share anymore and it has now become a thing of the past.

In order to begin you have to first look for a DP to ha an account with. Sometimes the banks are the DPs and some banks are even brokers. You can choose your own DP.

These are few elementary points pertain to the Demat account

Different Types Of Debit Cards In India

Get a thorough knowledge about debit card is?

A debit card is a card that is used for monetary transactions instead of cash. It is also called plastic cash, bank cards so on and so forth. With a debit card you can easily access your savings bank account in any bank from ATM’s you can deposit and withdraw cash whenever you want to and this would even save you the hassles of standing for hours in a long queue. A debit card can also be used in mobile and internet banking.

Do you know about different types of debit cards are available in India?

Visa debit cards: 
Such debit cards are issued with the bank’s tie-up with Visa payment services and this is why they also provide the Verified by Visa platform for online transactions.

MasterCard debit cards:
A MasterCard cirrus card or a MasterCard Maestro Card gives worldwide access to the funds of the customers and this is why they can easily carry out online transactions using their bank accounts by making use of the MasterCard SecureCode platform.

Visa Electron Debit cards:
Visa electron debit cards are absolutely similar to the Visa debit cards and the only feature that is missing from these are that these cards do not provide the overdraft feature.

RuPay debit cards:
NCPi had introduced this card as a domestic card scheme. These cards help to carry out online transactions on the Discover network and ATM transactions under the National Financial Switch network.

Contactless debit cards:
Just a tap or wave of the contactless debit cards enables the customer to make a payment near PoS terminals as these cards work on Near field technology also known as NFC therefore making any electronic payment transfer is safer and secure.

Maestro debit card:
Maestro from Master Card is a premier international debit card. It was founded in the year 1992.It is a service that has been popularly adopted at over 13 million locations that has been overspread across more than 100 countries across the globe. The signature logo on every Maestro partner card makes them easily identifiable. And this popularity instantly enables the customer to gain immediate access to his or her money  through a network of compatible ATM’s, POS outlets and online resources that are at once international and at once robust.

Do you know there is a difference between an ATM card  and a debit card?

The main difference between an ATM card and a debit card is that ATM cards can be used just in ATM machines to withdraw cash whereas a debit card can be used in ATM machines and in stores and restaurants as well for online payments.

All About Internet Banking

Internet banking or E-banking implies that any user or a bank customer who has a personal computer and a browser to his or her bank account through the website of his or her bank so that they can carry out any of the virtual banking procedures. In the internet banking system the database of the bank is centralised and is web enabled.  All the services that the bank has allowed to carry out on the internet are displayed in the menu of the bank website. Out of these services the desired service can be selected, going further the interaction between the computer and the internet banking website is dictated by the kind of service that is being performed. The conventional model of a bank is now being replaced by alternative delivery channels and ATM networks.

Once the branches of the banks are connected together by the satellites links there would be no physical bank branch.  It would be more of a border less entity that would allow anytime anywhere and anyhow banking.

This is how the internet banking in India works –

1. Information only system – general information for instance the  interest rates, bank products, branch location, loan and fixed deposit calculators are provided for in the bank's website. There are also facilities for downloading various kinds of application forms. The communication between the customer and the bank is normally done through email. There is absolutely no interaction between the customer and the bank’s application system. And the best part is that in this system there is no possibility that any unauthorised person will get into the bank system through the internet.
   
2. Electronic information transfer system – The internet banking system in India provides customer specific information which includes account balances account summaries and bank statements. The information is largely in the read only format. The customer is identified and authenticated through a password. The information that the customer is looking for us fetched from the computer system in an offline mode or a batch mode.
   
3. Fully electronic transactional system - This system in the internet banking allows bi-directional capacities. The customer can submit the transaction for online update. This system calls for a huge security and control and in such an environment the web server and application systems are linked to secure infrastructure. A technologically advanced computerisation, networking and security, intra-bank payment gateway and legal infrastructure are what it is comprised of.
   
4. ATM or the Automated Teller Machine – it is designed to perform the most important function of the bank. It is made operational by a plastic card with special features and this plastic card cuts down on the cheques, banking hour restriction, long queues, paper verification and other formalities. These are electronic debit cards

These are a few points that are worth noting when it comes to internet banking.

All you need to know about bike insurance

Is there anything more exciting than riding your trusted bike through the city roads? Not really. In fact, for most riders, their bike is a reflection of their personality. Which is why insuring your bike is the best way to show it some love. Having two-wheeler insurance saves you against the financial loss you might face if your bike was wrecked in an accident or worse, stolen. After all, no one needs that kind of negativity in their life.

There are two kinds of bike insurance

Comprehensive insurance - This covers damages to the third party, as well as your own bike. It is best for those wanting to cover for losses from incidents such as theft and natural disasters.

Third party liability insurance - It covers only the damages to a third party and their property. It's best for those insuring their bikes only because it's mandatory (but we wouldn't recommend that!).

What is included in bike insurance?

Damages that might happen to your bike in an accident, Personal Accident Cover - if you (the owner-driver) are injured in a bike accident, the insurer compensates you. All the financial protection to your bike from natural calamities such as floods, earthquakes, etc. is also covered. In case your two-wheeler gets stolen, your insurer will pay an amount equal to your bike’s IDV. Coverage for damages caused during a man-made disaster. This includes riots; strikes, fire, and terrorism all of which are covered.

What is excluded in bike insurance?

Damages caused if you were caught riding under the influence of alcohol. Loss and damages that may be caused because of a war or nuclear strike, accident related damages caused while you were riding your bike for illegal activities. Damages caused or losses incurred to your bike while you were riding it without a license. Regular mechanical expenses due to consistent wear and tear are also not covered under bike insurance.

Bike insurance is simple fast and simple. Some websites even give you the opportunity to renew your bike insurance online instantly and all this even if your policy has expired.

There is a also a multi bike insurance. Do you know what it is?

A normal bike insurance are designed for one year and has to be renewed annually, on the other hand a multi bike insurance allows bikes to be insured up to  three consecutive years at a time. The policy holders do not have to renew the insurance contract after every year. This is because they receive a policy certificate for maximum of three year cover.

Do you know what is NEFT?

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and corporates can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country participating in the Scheme.

Another important question is whether all bank branches in the country part of the NEFT funds transfer network?

For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled. The list of bank-wise branches which are participating in NEFT is provided in the website of Reserve Bank of India at http://www.rbi.org.in/scripts/neft.aspx

Who can transfer funds using NEFT?

Individuals, firms or corporates maintaining accounts with a bank branch can transfer funds using NEFT. Even such individuals who do not have a bank account (walk-in customers) can also deposit cash at the NEFT-enabled branches with instructions to transfer funds using NEFT. However, such cash remittances will be restricted to a maximum of Rs.50,000/- per transaction. Such customers have to furnish full details including complete address, telephone number, etc. NEFT, thus, facilitates originators or remitters to initiate funds transfer transactions even without having a bank account.

Who can receive funds through the NEFT system?

Individuals, firms or corporates maintaining accounts with a bank branch can receive funds through the NEFT system. It is, therefore, necessary for the beneficiary to have an account with the NEFT enabled destination bank branch in the country.
The NEFT system also facilitates one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. A remitter can transfer funds from any of the NEFT-enabled branches in to Nepal, irrespective of whether the beneficiary in Nepal maintains an account with a bank branch in Nepal or not. The beneficiary would receive funds in Nepalese Rupees.

Is there any limit on the amount that could be transferred using NEFT?

No. There is no limit – either minimum or maximum – on the amount of funds that could be transferred using NEFT. However, maximum amount per transaction is limited to Rs.50,000/- for cash-based remittances within India and also for remittances to Nepal under the Indo-Nepal Remittance Facility Scheme.

Whether the system is centre-specific or has any geographical restriction?

No. There is no restriction of centres or of any geographical area within the country. The NEFT system takes advantage of the core banking system in banks. Accordingly, the settlement of funds between originating and receiving banks takes places centrally at Mumbai, whereas the branches participating in NEFT can be located anywhere across the length and breadth of the country.

What are the operating hours of NEFT?

Presently, NEFT operates in hourly batches - there are twelve settlements from 8 am to 7 pm on week days (Monday through Friday) and six settlements from 8 am to 1 pm on Saturdays.

Everything about FDs

Fixed deposit or FDs is a very safe and secure investment option that allows you to invest your money for a specific time span and at a fixed rate of interest. During the tenure of your FD even of the rate of interest of the FDs go up or down, you will; have it pay to same rate of interest that was decided during your initial investment procedure.

The Fixed deposit accounts pay a higher rate of interest than the savings bank account. All the other conditions are equal; you would definitely be in a much better position if you put your money into an FD account instead of a savings bank account. The interest can be paid to your quarterly or half yearly or annually. If in case you are a senior citizen the rate of interest on your FD might even go up.

There are two kinds of FDs-
Bank and Non-banking financial institutions FD – This kind of Fixed deposits are offered by banks and non-banking finance companies the RB regulates th4ese institutions.

Corporate FDs - These are offered by the companies that are in the hunt to raise money from the open market. Corporate FDs give you a higher rate of interest but at the same time it also has a higher risk quotient when compared to the bank FDs.

Here are the Pros –
FDs give a safe return – FDs are more than secure and very low-risk investments, bank FDs are guaranteed up to Rs 1 Lakh by the deposit insurance and the credit guarantee corporation.

You can take a loan against your FD -
You can borrow up to 85% of the FD amount in some banks this can happen only after a few months of the existence of your FD however this is valid only for Bank Fds and not the NBFC FDs or the Corporate FDs.

Low maintain –
Unlike other investments like stocks, mutual funds or real estate, you do not have to keep an eye on your FDs daily or monthly or undertake any kind of risks or maintenance work.

Here are some of the cons-

Low Returns –
The FDs are very low-risk investments and hence even though the returns are guaranteed they are on the lower side especially when compared to the other investment options like stocks, shares and real estate.

Lock ups –
once you create an FD account and you deposit your amount in your account for the decided tenure, you cannot withdraw the amount before the expiry of the tenure. If the e arises and you do have to withdraw each you have to pay the penalty for pre-withdrawals which would include a reduced interest rate and charges around 1% of the amount that we invested.

Everything you need to know about online tax payment

Nowadays you don’t need to fill up cumbersome details or wait in the queue with other tax payers to pay your tax. You can pay your tax online.  To pay taxes online, you have to log in to the http://www.tin-nsdl.com > Services > e-payment: Pay Taxes Online or you just have to click the tab "E-pay taxes" provided on the said website. Provide a proper link of e-payment.

The next step would be to select the pertaining challan i.e. ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284 or Form 26 QB demand payment (only for TDS on the sale of property) as applicable.
Once that is done you have to punch in the PAN / TAN (as applicable) and other mandatory challan intricate details like accounting head under which payment has been made, the address of the person who is paying the tax and the bank through which payment is to be done etc.

When you have submitted the data that you had entered, there will be a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.

On confirmation of the data so entered, the next step will be that you or the taxpayer will be directed to the net-banking website of the particular bank.

The taxpayer has to login to the net-banking site with the user id / password provided by the bank for net-banking purpose and punch in the details of the payment that is to be made at the bank website.
When the payment is successful, a challan counterfoil will be shown containing CIN, payment details and bank name, this is the same bank through which the electronic payment has been made. This is also the counterfoil and is also a proof that the payment of the tax has been done.

These steps that facilitate an easy online tax payment have eased a lot of difficulties and paperwork for the tax paying citizen of the country. All these latest developments in the realm of the Prime Minister Mr. Narendra Modi’s call to make a digital India. These latest developments are all an indication that India is slowly but steadiliy is moving towards a developmental goal that has been dreamt about by the Prime Minister of the country.

The online method of payment of taxes is being accepted widely by all and sundry. Everyone has been talking high of the online tax payment initiative and there has been a massive response from people all over the country and that is perhaps one of the biggest achievements for the BJP led government in the country.

All You Need To Know About The Features Of An RD Or A Recurring Deposit Account

RD offers you a fixed interest on the amount that is invested with specific frequency till the term that has already been predetermined or upon maturity. At the end of the term the amount upon maturity which also would happen to be the invested capital is paid along with the remaining and accumulated interest.

The following are the main features of an RD account

Recurring deposit schemes are made in order to inculcate the habit of savings amongst public; the lowest amount that can be deposited in an RD account varies from one bank to another, and however the amount can be as small as Rs 10.

The minimum period of deposit stars from a meagre six months and the maximum tenure till which a customer can deposit his money is 10 years. The rate of interest is equal to that offered for a fixed deposit and is hence higher than any other savings scheme. Premature and midterm withdrawals are not allowed in a recurring deposit account and this feature is semblative to the feature in fixed deposits. If that happens the depositor has to pay a minimal fine for premature withdrawal. In a recurring deposit account the depositor can let his savings in the account and at the same time can take a loan on the amount by using it as collateral. About 80% to 90% of the amount can be given to the RD account holder. The RD account can be funded from time to time according to the standing instructions which are actually the instructions that have been given by the customer to the bank to credit the RD account every month from his or her savings bank account.

Duration of the RD account

The customers are free to choose the tenure. They can make their calculations and choose the tenure which suits best. In an RD account the compounding of the interest will be done on a quarterly basis. The deposit term begins with a minimum period of 6 months and it goes up to a period of 10 years. However the minimum period for an RD account depends on the banks as well.

Eligibility for holding a Recurring deposit account

Most Indian banks offer resident Indians and Hindu undivided families the opportunity to open an RD with them. What’s more some banks even offer RD schemes for children and on this case the minors too are eligible to open an RD account but of course they do need the supervision of their guardians so that the finances can be taken care of.

These are some of the points to be kept in mind about RD accounts.

What is a trading account?

When a company lists on the stock market, its shares become available for trading on the stock exchange. Earlier, the exchange had an open-outcry system. In the mid-90s, the stock exchanges adopted the electronic system. This means, all trades were conducted electronically. Simply put, you didn’t have to go to the counter and place an order physically. You could do it through a computer, which would verify the details, the market price, and process the trade.

For this reason, you need a special account through which you can conduct transactions. This is called the trading account. Without one, you cannot trade in the stock markets. You register for an online trading account with a stock broker or a firm. Each account comes with a unique trading ID, which is used for conducting transactions.

WHAT IS THE DIFFERENCE BETWEEN DEMAT AND TRADING ACCOUNTS?

Yes. A trading account is used to place buy or sell orders in the stock market. The demat account is used as a bank where shares bought are deposited in, and where shares sold are taken from. Trading account with Kotak Securities helps you trade seamlessly in the stock market.
Let’s use an example.

You have Rs.100 in your wallet. You go to a shop and tell the seller that you want a packet of chips, you check the price, and finalize the transaction. Then, you take the money out of your wallet and give it to the seller. In this case, the wallet acts as the demat account, while you act as the trading account.

HOW TO OPEN AN ONLINE TRADING ACCOUNT?

Just like the demat account, a trading account is a must for investing in the stock market. This is because to trade in the stock markets, you need to be registered with the stock exchange. Stock brokers are registered members of the exchanges. They traditionally conduct trades on your behalf. Most often, stock broking firms have thousands of clients. It is not feasible to take physical orders from every client on time. So, to make this process seamless, it is advisable to open an online trading account. Using this trading account, you can place buy or sell orders either online or phone, which will automatically be directed to the exchange through the stock broker.

All about Netbanking

Netbanking, also known as online banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website. The online banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

To access a financial institution's online banking facility, a customer with internet access will need to register with the institution for the service, and set up a password and other credentials for customer verification. The credentials for online banking is normally not the same as for telephone or mobile banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their netbanking facility. Customer numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. Technically, the customer number can be linked to any account with the financial institution that the customer controls, though the financial institution may limit the range of accounts that may be accessed to, say, cheque, savings, loan, credit card and similar accounts.

The customer visits the financial institution's secure website, and enters the online banking facility using the customer number and credentials previously set up. The types of financial transactions which a customer may transact through online banking are determined by the financial institution, but usually includes obtaining account balances, a list of the recent transactions, electronic bill payments and funds transfers between a customer's or another's accounts. Most banks also enable a customer to download copies of bank statements, which can be printed at the customer's premises (some banks charge a fee for mailing hard copies of bank statements). Some banks also enable customers to download transactions directly into the customer's accounting software. The facility may also enable the customer to order a cheque book, statements, report loss of credit cards, stop payment on a cheque, advise change of address and other routine actions.

Today, many banks are internet-only institutions.

Due to netbanking A customer can do non-transactional tasks through online banking, which include Viewing account balances, Viewing recent transactions, Downloading bank statements, for example in PDF format, Viewing images of paid cheques, Ordering cheque books, Download periodic account statements, Downloading applications for M-banking, E-banking etc.

• Bank customers can transact banking tasks through netbanking, including – Funds transfers between the customer's linked accounts, Paying third parties, including bill payments (see, e.g., BPAY) and third party fund transfers, Investment purchase or sale

• Loan applications and transactions, such as repayments of enrollments, redit card applications, Register utility billers and make bill payments

Steps to take for a smarter education loan borrowing

With the education field getting more competitive with each passing year, more and more individuals are pursuing the highest most possible education qualification in their respective fields.

However, with this progression comes the financial requirement which can be easily satisfied with an education loan. But like any other loan, you as an applicant will need to be smart about it. Without the right steps and strategy, you may soon find yourself with a debt that can last a lifetime and cripple your finances.

The trick here is to be a smart loan borrower. Here are some steps you can consider:

Step #1 - Borrowing the loan from the right institution: There are several financial institutions that you can consider when it comes to borrowing a loan. On one hand, there are several banks you can consider. On the other, there are several private financial institutes that you can consider. Each of these institutions will offer you a wide variety of benefits. Choosing the bank loan will offer you several benefits for a long term, as you can use the linked bank account to make the fund transfer more convenient, if not more manageable shortly.

Step #2 – Weight your anticipated debt with the anticipated income: At some point in your life, you will decide on the type of career you would want to pursue. Once you have your career in mind, you can easily plan the type of career you want, and the income you would expect or generate. Take, for example, the careers of the MBA, medical, dental or a law student will be easier to plan after graduation. This is an important step, as it will help you plan and take the appropriate loan borrowing decisions. This will include the type of school institute you would want to attend, the approximate income and payments you would need to make and take. As a result, you may choose to attend a school with a low tuition or even borrow less.

Step #3 – Use an education loan calculator: It is better to understand the true cost of your financial decisions so that you do not face any surprises anytime later. This is why it is imperative you get the estimated cost of your education loan before you start the loan application process. You can use the loan calculator to calculate the appropriate amount that will suit you and how much you can actually afford.

Step #4 – Develop a loan repayment programme: Borrowing the appropriate loan is not the end of your journey, although it may be an easy step to take. In fact, as much as the loan is your priority, so should be the repayment. This is a crucial step you will need to take, even before you borrow the loan. With a repayment plan in place, you will know what to expect when the first repayment summons begins and enjoy financial freedom.

All about investments and investment banking

An investment bank is typically a private company that provides various financial-related and other services to individuals, corporations, and governments such as raising financial capital by underwriting or acting as the client's agent in the issuance of securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services

Unlike commercial banks and retail banks, investment banks do not take deposits. From the passage of Glass–Steagall Act in 1933 until its repeal in 1999 by the Gramm–Leach–Bliley Act, the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G7 countries, have historically not maintained such a separation.

The two main lines of business in investment banking are called the sell side and the buy side. The "sell side" involves trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or the promotion of securities (e.g. underwriting, research, etc.). The "buy side" involves the provision of advice to institutions that buy investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most common types of buy-side entities.

Investment banking is split into front office, middle office, and back office activities. While large service investment banks offer all lines of business, both "sell side" and "buy side", smaller sell-side investment firms such as boutique investment banks and small broker-dealers focus on investment banking and sales/trading/research, respectively.

Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, an activity very important to an investment bank's reputation. Therefore, investment bankers play a very important role in issuing new security offerings.

Corporate finance is the traditional aspect of investment banks, which involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A); this may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. A pitch book of financial information is generated to market the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry—such as healthcare, public finance (governments), FIG (financial institutions group), industrials, TMT (technology, media, and telecommunication), P&E (power & energy), consumer/retail, food & beverage, corporate defense and governance—and maintain relationships with corporations within the industry to bring in business for the bank. Product coverage groups focus on financial products—such as mergers and acquisitions, leveraged finance, public finance, asset finance and leasing, structured finance, restructuring, equity, and high-grade debt—and generally work and collaborate with industry groups on the more intricate and specialized needs of a client.

These are the 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 Platinum Rewards Card.
2. ICICI Instant Platinum Card.
3. Standard Chartered Manhattan Credit Card.

• 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.

• 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.

• Standard chartered Manhattan credit card – This is al al 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 is 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.

Everything about calculating your car loan with a car loan calculator

When one owns a car it becomes very easy for the person to travel from one place to another. Travelling happens to take up half the time of our entire lifespan and with a car things seem to be a lot easier. It becomes very easy to navigate the city and even plan for long drives towards the precincts of the city.

When a person owns a car he or she is no more dependent on the vagaries of the public transport. You no more have to stand in queues for boarding the bus, you no more have to get squeezed I the rush hour in trains and neither do you have to pay extra for cab services. Everyone harbours a dream of owning a car and when this dream becomes a reality life seems to be perfect. It is even better if you have a family.

Sometimes long drives and weekend getaways are dependent on the car rental services and when you own a car yourself, you can drive off to any destination near or far. That is when only your wish comes into play and nothing else. You can then easily plan for your holiday trip.

With easily available car loans, you can now be the proud owner of your dream car in no time. Everything, from the calculating the interest that will be accumulating on the car loan, to the insurance costs and all the other expenses that are even remotely related to buying a car can be conveniently and accurately calculated by the car loan calculator.

There are a number of car loans that are available in the market. You can choose from the multifarious varieties of a car loan, it could be a new car loan, a used car loan or a pre-owned car loan. You can also avail loan against a car. It all depends on what your needs are and what fits your budget. A car loan calculator will help you  get a clear picture and it will thereby allow you to plan your expenses by letting you calculate every aspect of the car loan that you would be taking for a particular bank.

You will get to know the exact break up of your investment in your car loan. It will allow you to calculate the interest that you will be paying on the principal of the loan amount that you borrow from the bank. There are a lot many options available and a variety of car loans are flooding the market. You have to do your in depth research and pick and choose the car loan that suits you best. You are absolutely free to make the decision based on your pocket.

Once you choose, all you need to do is choose your car and then visit the bank’s website page and calculate your car loan interest accurately with the help of a car loan calculator.

All About Fixed Deposit Interest Calculator

Fixed Deposit is more of a term deposit with an interest rate on the higher side when compared to the savings bank interest rate and it is because of the higher interest rate and the low risk in the investment it is one of the most popular investment choices in India. The interest rate is fixed for the whole maturity period and even if it fluctuates during the tenure of your FD , you will receive the same interest rate which was decided at the time of your initial investment.

Whoever the interest rates differ from bank to bank and this is why it is advisable to do your research properly before opening an FD account so that you receive the best in every way. The interest also depends on the FD tenure or the maturity period. In other words in case the maturity period is long and the FD tenure is on the higher side, the interest rate that would be offered to you might be higher as well. The interest rate is compounded quarterly i.e. every three months in most of the banks. Fixed deposits have extremely low liquidity and you cannot withdraw any amount before the tenure of the FD is over and done with. If that happens you have to pay the penalty for re withdrawal which would reduce your interest rates and also a fine of up to 1% of the amount deposited.

Along with all of the above information it is important to not that you are liable to pay tax on the interest that you earn on your principal FD amount. Depending on the tax bracket in which you fall. The FDs are very safe with stable and predictable returns and they are also very suitable for conservative investors. However FDs are low on the liquidity front, the returns are generally low because of the taxes that are levied on the interest earned.

Before investing in an FD it is always advisable to sit down with a pen and paper and calculate the FD for the decoded tenure, so that you will be able to figure out how much interest you will be earning over the time period. However it is very important to keep in mind that the calculation that is supposed to be done should be accurate. Doing an FD calculation is rather difficult and that is where the FD calculator comes in to play.

Nowadays most of the bank websites and the NBFC websites as well have a FD calculator which lets you calculate the interest that you would be earning over the entire FD tenure in an accurate manner.
You just have to enter the principal amount, the FD tenure, the rate of interest that has been decided and the compounding frequency and your FD interest rate will be calculated by the FD calculator in an impeccable and time-saving manner.

All About Demat Accounts And How To Open One

The savings bank account is for your money, your demat account is for your shares. To be straight, a demat account holds all your shares in a dematerialised and electronic format.  All your financial machinery including government securities, mutual funds, shares, bonds are held by Demat accounts. If you want to trade in the stock market it is mandatory that you have a demat account.

Now lets see how it works:

The CDSL and NSDL are two depositories in India that holds all demat accounts. A unique identification number is associated with every demat account and this is the number that you are supposed to provide while buying or sharing any share or bond in short making any transaction. This number make the companies identify you and deposit the shares and bonds in your account.
Then there are depository participants who provides a connection to the central depository. They are the brokers or financial firms that offer demat services.

Whenever you check your account,m you can see all the securities your demat account holds, this is also called portfolio holding. Whenever you make any transaction, these portfolio holdings and details are automatically updated.

Now lets get to the brass tacks! – how do we open a demat account?

The very first step is to choosing a Depository participant. There are many depository participants out there sone of them are 1. Globe capital market limited, 2. SMC global securities limited, 3. HDFC bank limited, 4. Sharekhan limited, 5. Edelweiss securities limited, 6. Kotak securities, 7. India Infoline limited so on and so forth.

Once that is done and you have chosen a depository participant, you have to fill up a demat account opening form  with the required documents and a pan card! After which, a copy of the rules and regulations and the terms and agreements will be handed over to you which will also include the charges that will be borne by  you. When Depository participant is done processing your documents for the account opening, it will give you your account number and the unique id that has been spoken about earlier on.  You have to use these details to access your details on your demat account whenever you want to. A monthly charge of maintenance of the demat account has to be paid by you and at the same time you also have to pay the charges for buying and selling securities, these charges differ in almost every depository participant.

Unlike a normal savings account a demat account can be opened even of one doesn’t hold and shares and the maintenance of shares in the account is not necessary to keep the account operable.

The Importance Of Online Mobile Recharge

The Internet pays a very crucial role in our lives whether it is in the office, in our study, in college or at home. Mobile phones are no longer any luxury; it has now become a necessity for the common man in India. It is almost unavoidable from the business and personal point of view because it connects us with our clients, families and friends.

Online mobile recharge is very easy and extremely simplistic method to do through various websites that offer these services.  A lot of websites provides online mobile recharges of almost all the carriers available in the market today be it Jio, Airtel, Vodafone, BSNL, Idea, Aircel so on and so forth. All you have to do is log on to the relevant website and submit the recharge amount and the other required information which consists of your name, number and the name of the carrier and press the submit button. After that you need to make the payment and the mode in which you will be making the payment is to be selected by you for which you can use any services which range from online banking to ATM r debit cards to Credit cards or payment wallets.

If in case you are using a credit card or an ATM or a debit card, you will have to fill up your credit card or ATM or Debit card details and get the recharge done. These are the steps that need to be followed for online mobile recharge through the various web portals that offer the online mobile recharge services. In India these websites have also come up with their customised apps which can be accessed through your mobile phones. These apps are a flexible option that integrates seamlessly with the website and also provides the facility of auto-generated text messages that can be delivered to the recipient’s mobile phones.

Nowadays there are several software service launches which are aided by the online mobile recharge websites because they allow the business houses to get a complete account and recharge solution for their business. Customers can provide and control their operators but SMS’s and recharge their mobile phones whenever they need.

The automatic recharge software would help the customers by providing an easy and convenient way to facilitate auto-generated text messages. The online mobile recharge websites are extremely popular with all and sundry in India especially because of some of the offers that art her on display. The coupons and other added goodies become an attraction of sorts. The prepaid market is huge and it is untapped as well which is why many companies would want to venture into the prepaid market

All You Need To Know About Personal Loan Emi Calculator

A personal loan is just like any other loan that is available with the banks. However there are a lot of differences when it comes to a personal loan and the other loans that are available in the market. The home loans, the car loans, the gold loans so on and so forth are mostly secured loans, which means these loans have collateral or security money which is taken away when not being able to repay the loan. However a personal loan is an unsecured loan and it doesn’t have collateral or any security money which might be taken away by the lender in case the loan is unable to be paid by the borrower.

The personal loan can be used to fulfil any whim and fancy of the borrower, it is not meant for any specific purpose.  It can be used for going on a vacation, for renovating your house or buying your favourite gadget, for the treatment of illness, for setting p a new business so on and so forth. Anyone who takes a personal loan in India gets flexible repayment options and the repayment period ranges from 1 year to 5 years. The interest to pay for the personal loans depends from one bank to the other.  Therefore it is mandatory to do a proper research and then choose the loan that suits you the most. The personal loan also doesn’t take much time for disbursement. All of these eases make personal loans today a hot favourite amongst banking customers. However it is very important to know what is the exact amount that you need to repay when you take a personal loan for N number of years. This is where the personal loan EMI calculator comes in.

Another thing is worth mentioning in this context is that the personal loans might get costly if the repayment period is long because it is to be kept in mind that the personal loan comes with an interest rate, so the longer the tenure of the personal loan the longer has the interest to be paid and hence the costlier it gets.

Therefore it is advisable to evaluate your personal loan with a pen and paper and get to the brass tacks right from the very beginning. However once that is done and the personal loan is approved, you will be surprised to know that the amount approved might be different from what y9ou thought would be which again depends on your credit scores and credit history. That means that once again you have to sit and calculate the EMI and the cost of your personal loan. Care should be taken that the calculation that you are doing is accurate and is not faulty, hence it is always advisable to use a Personal loan EMI calculator

The Personal Loan Interest Rates And Everything Related To It

A personal loan makes sure that you get that much-coveted piece of jewellery or you start that business that you waited for so long, or perhaps make your own film. At times, a personal loan also comes in handy when you have to treat an urgent ailment or perhaps just head out to a luxurious vacation.  Getting a personal loan is tough but when one gets it becomes difficult to repay more often than not because of the staggering interest rates that the personal loan comes with. The interest rates depend on a lot of factors.  Your credit ranking, your credit scores and on whether you have ever defaulted on your credit history or no.

A personal loan is not loan that is secured, which is why the lender cannot take away your home or your car when you cannot repay your loan. There is no security money that is attached to the loan which is why at times it becomes very difficult to get the loan as well. The thorough credit checking procedures that are there in place is because if your credit scores are low, be sure the amount that you are going to get as a loan will be lesser than you  thought and at times the interest will also be hiked up.

The personal loan interest rates also depend on the tenure of the loan. If your personal loan tenure is for a bigger span of time, the chances are that your personal loan interest rates will increase drastically making the loan very costly because by the time the tenure is over and done with, you will only end up paying double the amount that you borrowed.

Therefore it is advisable that you do your proper research when you are going in for a personal loan so that can compare the personal loan interest rates and see for yourself which one suits you. However, once you have chosen the bank from where you would be taking your personal loan, the bank would do a verification of your credit scores and credit history after which it would decided whether you would get the personal loan or not and if yes what would be the interest rate. If your credit score and credit history is fine, you will get a lesser interest rate and vice versa.

One everything is finalised, it is better to go on to the website of the particular lender bank in question and put in the details of your personal loan, which would include the principal amount, the interest rate that will be charged and the tenure of the loan, so that you can figure out how much extra you would be paying by the completion of the personal loan tenure.

All one needs to know about personal loans

Personal loans are one of the myriad other kinds of loans that are available and one can borrow from a bank. These loans don’t just fulfill any specific purpose, these loans can be used to meet any individual end. The amount that is shelled out to in the form of personal loans can be used by you in order to buy anything, to pay off an existing debt, start a new business so on and so forth. It is very difficult at times to get personal loans and at times they are offered by the banks upfront. If in case you are considering of getting yourself personal loans , these are some of the points you should keep in mind.

1.These are unsecured loans – unsecured loans are loans that don’t require any security money or collateral. If in case you don’t pay an instalment of a personal loan or you delay paying an EMI for the personal loans the lender of the loan cannot take away your property as payment for the loan. This is why personal loans are at times very difficult to get. Even though the lender doesn’t have the option to seize your home or your car there is alot other action that they can surely take in order to get back their amount. They can simply report the late payment to the credit bureaus or a collection agency; they can file a lawsuit as well against you.

2.They usually have fixed interest rates – the interest rate on a personal loan is more often than not locked and it doesn’t change for the entire tenure of the loan. The loan amount that is approved for you in the case of a personal loan depends a lot on your credit score and the interest rate that is fixed on your personal loan too is decided because of your credit score. If your credit scores are good then the interest rate that you might get is less, and vice versa. Lower interest rates are always good because the cost of the personal loans is much less.

3.Personal loans affect your credit score - Most lenders or banks and financial institutions report your low credit scores to credit bureaus. At that time when you are applying for the loan your credit score is checked and your financial details are dived into in the minutest of detail. All this is done to be sure that you are in a position to repay the loan in the stipulated period of time. The key to maintaining a good credit score is to make the repayment on a monthly basis without delay.

These are some of the core points to keep in mind when going in for a personal loan.

What is an EMI?All you need to know about EMI calculator

The full form of EMI is equated monthly instalment which is a fixed amount of payment the borrower has to make to the lender at a specified date on a monthly basis EMIs have your principal amount and the interest amount that you are supposed to pay every month.

Here’s all you need to know about an EMI calculator

Say for instance you have decided that you are about to take a loan, it might be a car loan, or ahome loan or personal loan. The first step of taking the loan is nothing but just sitting down and making a serious calculation of how much is it going to cost you. This cost is calculated in the terms of the monthly payment that needs t be done towards the loan and these are called the EMIs or the Equated monthly instalments.

Once you need to get the exact EMI, you need to calculate the amount borrowed and the interest that you are supposed to be paying on the principal amount and the processing fee for the loan that you have taken.Once you have all this information you have to sit down with a pen and paper to see how much will you have to pay monthly for the amount of loan that you have taken or the amount of loan you have decided to take and you will also have to take into consideration that tenure of the loan i.e. the period through which you are going t pay the full amount of the loan. One that is done , it might strike you that the EMI is way too big and you will reduce it in some way or the other in order to do it you have to either lessen the tine period of the loan i.e. the loan tenure or you have to borrow less. When that is decided, you have to calculate all over again. One you have the right EMI, you have to start looking at the banks and other financial institutions that are ready to give that amount as a loan. When you find an institution they will give you a quote and you will once again realise that you have to do the calculations over again. Doing the calculations over and over again is tiring and there is a chance that you might goof up. You have to make sure that while doing these loan calculation you do not make any mistake at all. Therefore there are many websites of banks and other financial institutions that offer EMI calculators that do it for you.  These EMI calculators have slots which you need to fill in. You have to fill in the amount of the loan, the tenure of the loan and the interest rate. Once all of this basic information and other information that is asked for is filled in the EMI calculators will calculate your monthly EMI fast and accurately and will save you the time and effort of it.

Therefore in order to do the loan EMI calculations in an efficient and accurate manner it is always advised to use an EMI calculator.

Do you know how to send money to India? These are some easy ways!

If you are an NRI you have to send money to India one in a while. It becomes a compulsion while living abroad. Whenever you are sending money to friends and family or transferring money back home in order to manage finances at home there are myriad methods to send it. Listed below are few of the options through which the money can be sent.

Money transfer companies - Money transfer companies offer a lot of money transfer services which includes the option to send money to India. They offer a secure, fast and comparatively inexpensive ways of how to send money to India from abroad locations and they are often come with alot of benefits. These benefits include better exchange rates, lower transfer fees and excellent customer service. There are multifarious money transfer companies to choose from and you can select the best company depending on their exchange rates fees and other features and benefits.

Wire transfer – Wire transfers are extremely common for international money transfers and most of the banks abroad offer wire transfer services. With a wire transfer t as well.

The funds are transferred directly to any foreign bank account and most of the time it just takes a few days. The charges for the wire transfer services vary from bank to bank which is why the fees need to be checked.

NRI and NRE accounts – NRI and NRE accounts are a tried and tested ways of sending money to India. In order to send money to India through an NRI or NRE account, first you must open an NRE bank account. With this method you can deposit foreign currencies in your account and the authorised recipient bank in India can withdraw the amount in Indian rupees. The transaction process usually takes a week’s time and is not taxable.

Personal cheques – You can write a personal cheque to the recipient who can then deposit it in their bank account in India. Some banks though do not accept foreign cheques and even if they do there is more often than not a delay in encashing the cheque because the bank has to first verify the deposit. The recipient may also be required to pay a certain amount to encash the cheque.

Cashier’s cheques, money orders and bank drafts – All of these options can be purchased through a bank. Also there are fees to purchase these but these fees are much less when compared to the wire transfer fees. With cashier’s cheques, money orders and bank drafts you can buy the amount you want to send in the Indian currency. Be sure to make a copy of the money order and the bank drafts and keep it with yourself for the records.

Here are some of the benefits of an NRI account

According to the Foreign exchange management act or the FEMA it is illegal for NRI’s  to have any resident savings bank account  in India. As an NRI you will require changing your resident savings bank account into an NRI account and you have two choices in that, it can either bean NRO or an NRE account. If in case you carry on using your resident account, you will be penalised heavily. You can either convergent your existing account or close your existing account and open a new NRO or NRE account.

NRE or NRO is a savings bank account for the Non-resident Indians These two accounts can be opened by any NRI. MRE stands for Non-resident Indians there are many differences between them and depending on their features you can choose to open whichever account that suits you.

The NRE account lets you keep money in Indian rupees. This account then further lets you open one of the best-fixed deposits  investment option known as the NRE fixed deposit which currently provides a fixed and interest rates and very good returns  on NRE fixed deposits.

Since many NRI’s are not aware of these feature NRI account benefits and advantages, here are few of the benefits shared below:

1.Tax benefits: One of the major NRI account benefits is that the interest earned on the NRE savings account and the NRE fixed deposit is tax-free in India. They aren’t counted in the taxable income bracket and this is even when you have many sources of income in India.  Due to this feature the NRE fixed deposits are the most secure and high yield investment options that are available for the NRI’s

2.Low balance required – Due to the increased competition amongst the private and the public sector banks, the minimum balance required in order to keep the NRE account functional has dropped hugely. Nowadays many banks require just Rs 10,000 as a minimum balance to keep the accounts functional.

3.High-interest rate – Another significant benefit of an NRI bank account is the NRE fixed deposits offers high-interest rates even though the rates differ from one bank to another. The good part is that these interest rates are calculated on the daily closing balance and the interest is paid half-yearly in June and December and this too varies from one bank to another.

4.Joint Holding – Another key NRI account benefit is that you can jointly open it with another NRI. This might also turn out to be the way to manage funds because your partner can operate along with you.
These are some of the NRI account benefits.

All you need to know about NRE and NRI accounts

All Non-resident Indians whoare residing out of India have to open an NRE account  because NRI’s who have an NRE account are only permitted  to hold and maintain foreign currency earnings in Indian rupees and all the funds along with the accrued interest  are freely repatriable  and the interest that is earned is not taxable in India. An NRO account also lets the Non-resident Indian to maintain aRupee account in India.

Similar points to note between the NRE and NRO accounts

1.Repatriation – NRE account is free lyrepatriable i.e. the principal and the interest earned onthe other hand an NRO account has a limited repatriability i.e. permitted remittance is allowed  from NRO is upto USD 1 million net of the applicable taxes inthe financial year after submitting an undertaking and a certificate from a chartered accountant .

2.Tax treatment – NRE account is tax-free which means there is income tax, wealth tax and gift tax in India on an NRE account. On the contrary the interest that is earned inan NRO account and all the credit balances are subject to respective income tax bracket and the gift tax and wealth tax are also applicable.

3.Deposit of rupee funds generated in India – If a Non-resident Indian (NRI) or a Person of Indian Origin (PIO) or an overseas citizen of India (OCI) is earning income originating in India which might be salary, house rent or dividends so on and so forth, he or she is only allowed to deposit into the NRO account. Such earnings are barred from being deposited into an NRE account.

4.Joint Holding – NRE account can be jointly held with another NRI but with not a resident Indian. On the contrary the NRO account can be jointly held with another NRI as well as a resident Indian which has to be a close relative as defined in the section 6 of the Companies Act 1956.

5.You can choose an NRE account if your primary reason is to park  your overseas earnings remitted to India converted to Indian rupees or you want to maintain  savings in Rupees and want to keep them liquid or you want to make a joint account with only another NRIor you want your rupee savings to be freely repatriable.

6.Go for an NRO account only when your primary reason is that you want to park India based earrings in Rupees in India, want your account to deposit income earned in India such as rent, dividends so on and so forth or you want to open an account with another resident Indian who happens to be a close relative.

All you need to know about NRI accounts

There are a few different kinds of NRI accounts. Some banks offer the NRI bank accounts which have a number of features like you can withdraw Rs 40,000 from the ATM daily, you could enjoy personal banking benefits through specially designed account for the NRIs who do wish to get interest credited to their savings account.

There is also the option of multi-channel banking where through internet banking you could transfer funds, pay bills, view account summary in internet banking. Through mobile banking you could check balances transfer funds, request for cheque books and also you could make your utility bills payment using your mobile phone, you will also get SMS alerts and monthly e-statements and quarterly physical statements to keep a track on the bank transactions and other banking activities.

An NRI account would also get personalised cheque book every quarter. There is a host of other banking benefits and facilities, you could get special privileges on remittances from your relatives and friends abroad, you will also be able to keep a joint account, enjoy loyalty reward points.

You could also keep your assets safe, there are lost card liability and also purchase protection liability  up to a certain amount to protect against the fraudulent usage of the credit card, it could also be put to use during the damage or the loss of articles purchased with the debit card.

Along with that you also have the NRE savings account which can be opened by any person staying outside India. All the NRI’s who have an NRE account in India are given the permission to hold and maintain foreign currency earnings in Indian rupees. All the funds along with the accrued interest are freely repatriable and what’s more the interest that is earned is not taxable in India. The NRE account can be easily converted into a regular resident account with the relocation of the NRI back to India. The account is structured ina manner that is suitable for most people who are living abroad. He or she might be a professional who is deputed overseas or an entrepreneur moving all across the world to do his business. It is also very convenient to start off; you just need to submit a few documents to get started with your very own NRE account. There are lot many features that are for your benefit. Some features like low minimum balance requirement, tax advisory services, multi-city cheque books, online transaction options. There are all the features that are required by any Non-resident Indian to tactfully maintain their balances in India. Therefore it is very necessary to have an NRI account for any non-resident Indian.

All you need to know about NRO accounts

An NRO account is a non-resident ordinary account. It lets you park your rupee funds gathered from earnings in India. It also offers free money transfer at a competitive rate structure. You could also add an Indian resident as a joint holder to your NRO account so that he/she can operate your account. There would also bea free mandate card and chequebook for your family in India and this would give then anytime and anywhere access to your account.

Now let us have a deeply detailed look into what an NRO account actually is.

A non-resident ordinary account or an NRO account is a savings account essentially where you can maintain and manage your income earned in India for instance, the rent collections, the dividends, pension etc. Whenever you choose an NRO account you can be assured of and efficient management of your rupee earnings in India while you are staying abroad. There is also the facility of an easy redesignation of your account when your status is changed from resident Indian to a non-resident Indian.
There are a lot many benefits when you are going in for an NRO or a Non-residentordinary account. These benefits are enlisted below
You will get a higher yield post-tax: this can be done by availing the DTAA benefit facility.

You can also avail the benefits of low cost and hassle free money transfer which can be made available through various online and offline modes at extremely competitive exchange rates.

Very low balance is required in order to keep the account in the up and running status. The minimum account balance to be maintained is as low as Rs 10,000 only. If this balance is maintained, the account will be in the running status.

You will be able to access your account anytime and anywhere with domestic ATM cum debit cards, you will also have convenient and access to over 11000 ATMs, in the branches all over India and the phone and internetbanking as well.

You could also be benefitted from the interest rates that are calculated on daily closing balances at 4% per annum. The interest is paid half-yearly in June and December.

The interest that you earn in the current financial year is completely repatriable but only after the tax is deducted.

You can also avail simple and convenient money transfer tracking service with anonline transfer to more than a 100 banks in India.

The mandate holder would get a free chequebook and an ATM card so that he/she can access your account from anywhere and at anytime

Are you aware of the different ways to send money to India?

There are a lot of ways to send to money to India. You can do an e-transfer or you can also use the traditional methods to send money to India. Whichever way you prefer it is always wise to do your research before you use any of these methods to send money to India.

International money order – International money orders are safe, cheap and a very fast way of sending money. This process if sending money is very good especially when you are sending money to remote places in India. The money orders can be deposited in your bank account, or you could also encash them in many cheque encashing locations. However to encash the cheques most will require n ID. It s simple to purchase and no cheque account is required. This is a very convenient method to send money to India if the amount is small.

Personal Cheques – You can also consider the option of sending a cheque in the foreign currency. The encashment f the cheque can be delayed though because the bank has to verify the cheque before doing it. The recipient has to give an additional fee based on the current exchange rates and per the encashment rules. This method is safer instead of sending cash by mail because once the cash is sent and it reaches the wrong destination, it cannot be brought back, however in case the cheque reaches the wrong destination, the cheque can be cancelled.

Email money transfer – It is an online money transfer. Here are no extra charges associated with this kind of transfer of money because this is very similar the bank to bank transfer. However in this case it is not mandatory for the sender to have the bank information of the recipient.  The person who is supposed to send money to India had to log onto his bank website and fill the form.The form doesn’t ask for too much detailed information;just the mail id of the recipient and the security question needs to be answered. The answer to this security question has to be shared by the sender only with the recipient. The bank then sends an email to the recipient and then the recipient needs to validate his identity for which he/she too requires to answer a security question accurately. If he answers the question correctly he will be forwarded to his bank[s website asked for the details of his account and then the transaction would be completed. This process just takes a day of the recipient’s bank is in the list provided b the sender’s bank. If the bank is not listed in the sender’s bank list, the transaction might take up to 3 to 5 days to complete.

These are some of the common ways and most used ways to send money to India.

All you need to know about NRE and NRO accounts

All Non-resident Indians whoare residing out of India have to open an NRE account  because NRI’s who have an NRE account are only permitted  to hold and maintain foreign currency earnings in Indian rupees and all the funds along with the accrued interest  are freely repatriable  and the interest that is earned is not taxable in India. An NRO account also lets the Non-resident Indian to maintain aRupee account in India.

Similar points to note between the NRE and NRO accounts

1.Repatriation – NRE account is freelyrepatriable i.e. the principal and the interest earned onthe other hand an NRO account has a limited repatriability i.e. permitted remittance is allowed  from NRO is upto USD 1 million net of the applicable taxes inthe financial year after submitting an undertaking and a certificate from a chartered accountant .

2.Tax treatment – NRE account is tax-free which means there is income tax, wealth tax and gift tax in India on an NRE account. On the contrary the interest that is earned inan NRO account and all the credit balances are subject to respective income tax bracket and the gift tax and wealth tax are also applicable.

3.Deposit of rupee funds generated in India – If a Non-resident Indian (NRI) or a Person of Indian Origin (PIO) or an overseas citizen of India (OCI) is earning income originating in India which might be salary, house rent or dividends so on and so forth, he or she is only allowed to deposit into the NRO account. Such earnings are barred from being deposited into an NRE account.

4.Joint Holding – NRE account can be jointly held with another NRI but with not a resident Indian. On the contrary the NRO account can be jointly held with another NRI as well as a resident Indian which has to be a close relative as defined in the section 6 of the Companies Act 1956.

5.You can choose an NRE account if your primary reason is to park  your overseas earnings remitted to India converted to Indian rupees or you want to maintain  savings in Rupees and want to keep them liquid or you want to make a joint account with only another NRIor you want your rupee savings to be freely repatriable.

6.Go for an NRO account only when your primary reason is that you want to park India based earrings  in Rupees in India, want your account to deposit income earned in India such as rent, dividends so on and so forth or you want to open an account with another resident Indian who happens to be a close relative.

Some ways to remit money to India

Transferring money to India has never been easier

If anyone wants to send money to India the procedure is very efficient and there are a lot of ways to do it. There are multifarious money sending options  available  that the business decision of which to use is also very demanding.  Here are mentioned are some of the ways to send money to India.

1.ACH transfer – an ACH transfer or an Automated clearing house transfer is a very good option for businesses based in the US. You just have to send the money from your bank account by the ACH transfer and whoever you are sending it to will get it in the next 4 days. In this method one doesn't need to make additional trips to the bank and neither does one have to pay any charges and thus this is quite a promising way to send the money because of the fact that it saves you both the time and the money.

2. Online transfer – This method of money transfer is perhaps the most basic and the most used as well. All you need for this kind of money transfer is the basic details of the person who is the recipient of the money for instance the name of the person, address and bank account. You can do this whenever you want to from the comfort of your own home, a computer and an internet connection.

3.PayPal -  Paypal is the largest online payment processor. You can easily transfer your money to India from a bank account to another without directly using your credit card or bank account. Whoever sends the money is not required to pay any fee but the recipient has to pay a nominal fee on the transaction

4.Wire Transfer – This is a traditional method of payment,, it is also the oldest method and this method existed for the last 10 years. In case you want to use this method, you have to go through the banks and other agencies so that the money can be sent. Just when you provide the institution with the required information about the recipient , they will start the money transfer procedure and then send the money. This process is actually pretty long drawn. A wire transfer may actually take a few days before the recipient gets the money. One important aspect about wire transfers is that they cannot be used to transfer small amounts of money because the fees depend on the money and the destination as well.

These are few of the methods for remitting money to India.