How to manage your bike insurance premiums with these tips

In India motorcycles and scooters are a popular mode of private transport, primarily because they are more fuel efficient and are easy to maintain as compared to a car. Moreover, bikes are easier to navigate on Indian roads and streets. As per the Indian law, a motorcycle has to be insured. While insurance prices are constantly on the rise, one needs to choose carefully so as to get the most out of his bike insurance.

Here are a few ways through which one can effectively manage their bike insurance premiums-

Try to maintain a clean record

You are more likely to avail a good premium deal if you are a safe driver. Thus, if one does not have a history of road accidents and has a clean slate when it comes to rash riding, they can avail a much lower premium for the insurance coverage.

Make a wise choice when purchasing a bike

This is a very important factor to consider when it comes to managing bike insurance premiums. If the bike that one purchases is very expensive and has a hi-tech engine and over the top features compared to the present market standards, the premium on the bike insurance will also be quite high. If a good but standard bike is purchased instead, its premium will be comparatively lower and more managble.

Make yearly premium payments

Pay the premium amount on a yearly basis rather than monthly basis. This way one may pay less on the total amount. A number of insurers reduce the premium amount if it is paid all at once.

Become a part of a riding association

Almost all bike insurers offer a small discount to members of a riding or Automobile Association.

Take proper security measure

Make sure that the bike is secure against any vandalism or damage. Insurers lower the premium payment in case of bikes that are equipped with effective safety measures.

Try not to claim insurance for small damages

Avoid claiming insurance in case of a small scratch or a mere dent. Get it fixed and pay for it yourself. This way one can enjoy a no-claim discount at the end of the year. If one does claim insurance for a tiny damage, he will not get a no-claim bonus for that year.

Opt for package deals

Insurers prefer that their customers opt for multiple policies. Thus, if one already has home insurance say with insurer A, opt for a bike insurance with him as well. He may offer a discount on the premium.

Why using the NEFT service will benefit you for fast transfers

National electronic funds transfer (NEFT) is a popular method of transferring funds online all across the country. Through this system of payment an individual can transfer a sum of money from one bank to another individual who has an account in another bank under the same scheme.

All one needs in order to do an NEFT is- internet connection and a net banking account. Banks generally charge a very small amount during an NEFT, but even so it is still a comparatively cheaper option than a RTGS transfer (Real Time Gross Settlement).

The charge for a NEFT transaction generally differs from one bank to another. But a bank cannot charge more than 30Rs for transactions up to 2-5 lakhs and more than 55Rs for transactions higher than 5 lakhs.

How is NEFT done and who can avail this service?

While a NEFT transfer can be quite conveniently done via internet banking, one may also initiate a transfer through the branch directly.

If one has a savings account or a current account at a bank, they can avail the NEFT service. Any sum of money can be transferred through NEFT, but there are some banks that do have a limit.

Those who do not have an account are also allowed to make a cash deposit at any bank that allows NEFT. But in this case only a certain amount and not above that may be transferred.

Speed of transaction through NEFT

Although NEFT is quite a convenient way to transfer money, earlier the transaction process did take some time to complete. This is why many individuals opted for other transfer methods in case of an emergency transaction.

But this year, the Reserve Bank of India (RBI) is all set to make this transaction system faster and better. Fund transfers will now be done in half hour intervals. Before they were undertaken every hour.

The settlement cycle has now been increased to 23. Previously it was 12. When one makes a bank transaction, a clearance request is forwarded to the RBI, and the RBI processes it in the following settlement cycle. Therefore, as the cycles will increase this will facilitate faster transfers.

The settlement time will being at 8 am in the morning and end about 7 pm in the evening. With the introduction of 11 more settlement batches, the RBI strives to make customer service more efficient and increase the speed of the entire NEFT process.

One should thus opt for NEFT, in order to carry out transactions and payments. With the new updates that RBI is brining into play, a NEFT transaction well be quite fast and efficient.

GST Payment: Myths busted

The last couple of years have brought in great economic changes into the country, with demonetization during the end of 2016, and GST taking over 2017. With the launch of the good and services tax (GST) this year, a lot of discussions are being done on the extent of its effectiveness, and if this will be a simpler form of taxation system in comparison to the previous one. This has led to the rise innumerable rumours about goods and service tax payment.

Here are some popular myths about GST, and the actual truth behind them-

1. One system of tax for the entire nation- This is definitely a myth!
While this was the initial idea of GST, at the time of it launch certain products like petrol, diesel and liquor were exempted from GST payment. Which is why petrol prices are still high in some states of the country while comparatively lower in other states.

2. Small business will face difficulties- No True!
Many were of the opinion that small business men will go through tough times with the launch of GST payment, primarily because they will have to switch to computerised billing. This is not true as manual billing is allowed under GST. Internet connection is only essential when the monthly return has to be filed. This can be easily done from a cyber-centre.

3. GST is the only direct form of tax, no other tax will be in place- This belief has proved to be a complete myth!
Primarily because GST is only charged instead of central and state taxes. Local body taxes are not included under GST payment. For example, the government of Tamil Nadu has permitted its local bodies to take a 30% tax on film tickets, excluding tax that needs to be given as GST, making movie tickets extremely expensive. This led to a strike in the state, which was called by cinema hall owners who were obviously not happy with this decision.

4. Prices will rise, creating inflation- This has also proved to be a myth!
While the government may have increased the tax rate on some goods, taxes have also been lowered in case of many consumer good items. Moreover, earlier there were a number of hidden taxes that one did not see in their bill. With the launch of GST, the full tax is now visible to the consumer. For instance, the prices of any chicken dish in Kerala should fall considerably, because earlier about 14.5% tax was charged on live chicken in the state, but now there is 0 tax on the same.

Why should you be making your online tax payment today?

Sorting out taxes has never been an easy job. It involves major paperwork and is generally quiet time consuming. But it is a necessary evil and cannot be ignored.

One effective way of dealing with taxes is switching to online tax payment. By doing this, one can save himself the trouble of extensive paperwork and stamps when it comes to filing taxes. Switching to online tax payment, will also allow one to organize his taxes better and make payments promptly.
You can pay a number of different taxes online, such as- Service tax, wealth tax, corporation tax, tax deducted at source (TDS), central excise tax as well as income tax.

Here are a few reasons why one should shift to online tax payment today-

It is a speedy process

Tax payments can be made within minutes when done online. All one needs to do is schedule their payment date and mark their calendar. You do not have to bear the burden of filing taxes through mail, and worrying if it will reach on time.

Convenient

One does not have to wait in long lines in order to file their taxes. Payment can be done online anytime from anywhere. All that one requires is an internet connection and a laptop or computer.

Easy to file taxes and make payments

Once you start online tax payment, one will have to follow a simple process that will help him schedule tax payments regularly. When this process is complete, all that is required is an online transaction of the amount on the scheduled date.

Safe to use

Online tax payment is quite safe. User information is confidential and has to be typed in every time in order to log in.

Timely payments

As payments can be scheduled well in advance, a person knows exactly when he needs to clear his taxes and is less likely to miss the date. This also helps with effective planning. While businesses are allowed to schedule online tax payment about 120 days before it is due, individual taxpayers can schedule their tax payment a year in advance.
 
Once the online tax payment is done, one will receive a digital copy of the acknowledgement of the same. In order to maintain a physical record just take a print out of the copy of the challan for future reference.

Online tax payment will greatly reduce the pressure and stress involved with the filing and payment of taxes every year. The process of enrolment may seem tedious initially, but it is for the best.

What is the difference between a trading account and a demat account?

In order to conveniently deal with shares in the stock market of the country, it is essential to have a trading account as well as a demat account. While before the 90s, shares were physically sold and bought, sometime during the mid-90s, the purchase and sale of shares shifted to electronic transactions, which made it necessary for share traders to hold a demat and a trading account.

To understand how the share market and trade works, one has to first establish the difference between these two types of accounts-

Nature of use

While shares purchased or meant for sale are stored in demat or dematerialised accounts, their transaction is done through a trading account. Thus, a trading account acts as an arbitrator between the bank and the demat account. The trading account takes shares from the demat account and makes them available for trade at the share market.

Hence, while a demat accounts acts as a savings account, the trading account works as a current account.

Difference in function

Financial instruments, for instance securities as well as shares, are retained by a demat account. A demat account can also convert electronic securities to their physical form. On the other hand, the purchase and sale of such financial instruments is done via the trading account. If one deals with trade in futures and currency only, just a trading account is enough. But if one also trades in stocks both demat and trading account are necessary.

Account fees and charges

While one can open more than one demat account or trading account, a certain fee is charged. In case of demat one needs to pay a yearly maintenance charge for each account he owns. Moreover transaction and custodian fees also have to be paid.

In case of a trading account a certain fee is charged when the account is opened. One incurs no extra costs afterwards.

Process of account opening

A PAN card and a Voter’s ID card have to be submitted so as to own a demat account. But in the case of a trading account, the only pre-requisite is the existence of a demat account.

To make the entire process of stock trading easier, a number of banks offer customers the convenience of managing 3 different types of accounts- demat, trading and a savings account through one single bank account. Therefore, when opening a trading and demat account check if the bank is offering this type of service. It will definitely make purchase and sale of shares more simple and convenient.

What are the dos and don’ts for a safe net banking experience?

Internet banking is simple, fast and extremely convenient. Most transactions, be it the payment of bills or fund transfers can be done from anywhere. One just needs access to a computer system and internet.

Although this facility is quite revolutionary and has changed the nature of banking, certain safety measures need to be taken in order to ensure security of one’s account and money.

Here are a few do’s and don’ts that should be kept in mind to ensure a safe net banking experience-

Do change the account password from time to time

For the very first account log in, the bank provides a password, but change it immediately. Thereafter, make it a point that the password is changed at particular intervals of times to ensure safety.

Do not login to the account through a public computer

To ensure safety do not access the account at a cyber café or from an office/library computer. There are high chances of malware which may put the net banking account at risk. In case a login is absolutely necessary, clear the browsing history and cache. All temporary files should also be deleted. Most importantly, do not click ‘save’, if a pop-up which asks for permission to save ID and password appears.

Do check the account from time to time

Keep a tab of the online transactions that are taking place through the net banking account. In case of any irregular activity, inform the bank immediately and lock the account.

Do not share account details

Account ID and password should not be shared with anyone. If you have to share the information, in case of an emergency, change the password as soon as the situation is under control.

Do log out after every session, and type net banking URL

While copy-pasting the URL is a convenient option in order to log into the net banking account, avoid it! Typing the URL is a much safer option. Also make sure to log out after every session, so as to prevent anyone from misusing the account. In case one has to leave the computer system even for a minute while net banking, take the trouble of logging out and logging in again, just to ensure safety.

Do not use open/ public Wi-Fi

It is best to undertake any bill payments or transfers online, through a personal Wi-Fi connection. Avoid the use of net banking when on an open Wi-Fi or public Wi-Fi, primarily because chances of getting hacked are higher.

Moreover, one should also ensure that they offer proper anti-virus protection to their system. It should be licenced for optimum safety.

Avoid these 4 mistakes with the education loan

Education all around the world is becoming more and more expensive. While primary and secondary education is government aided in many parts of the world, college education and higher studies is quite expensive. So much so, that many parents can only opt to send their children to college or university, if they have planned much beforehand and saved enough cash or if they can obtain a loan from a rich relative.

Today, the loan market has become quite competitive, and a number of education loans are offered by various banks to help youngsters pursue higher studies and obtain their dreams. But while getting hold of an education loan is very easy, one has to be careful when repaying the debt.

Here are 4 mistakes that one should avoid when repaying an education loan –

1. One should not borrow more than they can afford to repay- Be extremely realistic when calculating the loan amount that is required. It is quite easy to opt for an education loan, but sooner or later it has to be repaid along with interest. One may not need to pay the loan when in college, but it needs to be cleared afterwards. Keep this in mind, especially before opting for multiple student loans.

2. Do not wait to pay the interest after school is done- Most college students opt to work as well as purse their studies, there is a steady cash inflow. Thus, it is best that one starts paying the interest on the loan as soon as possible. This will reduce the pressure of re-payment later.

3. Do not be carless with monthly payments- While most individuals are aware of the total loan amount they have borrowed and the interest they need to pay, what they fail to estimate is the EMI. The monthly payment can be a great expense if not calculated beforehand. To calculate the EMI on your education loan, use a loan calculator and formulate a repayment plan carefully.

4. Do not loose contact with the loan servicer- In order to stay up-to-date with the timeline of your education loan repayment, always stay in touch with the loan servicer. Make sure that emails, letters and messages from your loan servicer reach you on time. In case of a change of address or phone number, keep the loan servicer in loop to avoid any communication gaps.

While keeping a tab on an education loan may seem overwhelming at first, it should be done in order to prevent any repayment stress in the future.

Basic facts you need to understand about GST payment

The Indian tax system has already been quite complicated. Dealing with direct as well as indirect taxes was a time consuming task for many a businesses. But with the set-up of the Goods and Services Tax (GST) this financial year, a major change has been predicted. In fact many have stated that this new tax system is going to be a ‘game changer’ for the economy of India.

Here are some basic facts which will help one understand GST payment-

Levy of GST

GST is levied anytime there is a ‘supply’. As per the GST Act, supply implies any goods and services sale. Exchange, barter, transfer, lease or rental also means supply as per the Act. Thus, businesses who undertake one or more of the above mentioned activities are entitled to goods and service tax payment. As per the Government, there are a few goods as well as services that do not come under GST payment. Thus, business should initially identity if good and services they deal with come under the GST payment bracket or not.

Application of GST

With the set-up of GST, one of the most important questions that have arisen is- which businesses should register for GST payment? It is mandatory for all businesses dealing in inter-state transactions and website sales to apply for GST registration. Those who are already registered under VAT and service tax can opt to transfer to GST registration. In case of businesses that have a turnover of about 20 lakhs, GST registration is not compulsory. In case of North East states the turn over value is 10 lakhs.

Registration with GST will help in making timely goods and service tax payment.

Process of GST payment

Under GST the payment will be primarily done electronically. Thus, it is important for most businesses to set up computer systems and methods of online payments. The challan will be electronically generated through the GSTN Common Portal. No manual challan will be available. Online payment mode has been adopted to facilitate the tax payer.

Mode of GST payment

Goods and service tax payment can either be done through the credit ledger or the cash ledger. The transfer of money into the cash ledger can be done through a credit or debit card and net banking. One can also deposit money in specified banks that have been authorized to collect GST payment.

In case of GST, payment needs to be on a monthly basis. Taxes should be cleared before the 20th of the next month. Those under the composition tax scheme need to clear taxes on a quarterly basis.

Credit card perks: Hidden perks that can save you funds

There are a number of credit card companies in the market, because of which the competition is extremely tough. There are quite a few perks that are offered to credit card users, but most of the time one is not aware of such benefits. This is primarily because such perks are not hyped by credit card companies.

Here are a few hidden perks that one can enjoy on their credit cards-

Price Protection

Very often one experiences that a purchase they made today at one store, is cheaper the next day at another store. In most cases stores do not offer the convenience of price matching, but this is where one can rely on their credit cards.

Most credit cards offer price protection, thus, one can claim a refund after filing a case and submitting proof that the same product is being sold for a less price. In some cases, price protection can also be claimed about 90 days post the purchase.

Purchase protection

Losing a phone or any other valuable item these days proves to be a great loss, especially if one does not have insurance on it. But the good news is that majority of credit cards offer purchase protection. Thus, one can claim re-imbursement for any stolen item. The facility of repair and replacement of items is also offered by credit companies under purchase protection.

Return protection

Many a times one may change their mind about a new purchase, but cannot return the product because the return period has expired. As per the return policies of most stores, a purchased item may only be replaced or returned within a span of 15 or sometimes 30 days of the purchase. In this case, one can depend upon the return protection offered by their credit card companies. Most credit card companies offer a return protection of about 60 to even 90 days. In case one does want to return their purchase, just send forth the product along with the necessary documents to the store.

Extended period of warranty

When purchasing a major electronic appliance, most individuals prefer a warranty in order to protect their investment. In this case a warranty may be purchased for a short period of time. But for an extended warranty, purchase it with a credit card. Most cards offer the benefit of extended warranty for up to a year at no cost.

To avail the benefits of the best credit card in India, choose wisely among various credit card companies. Compare the numerous offers they give before selecting one.

How much will your car loan payments be?

A car loan is a type of personal loan that allows the borrower to purchase the vehicle of his choice. The loan is then cleared through monthly payments at a particular interest rate and tenure. Many banks offer great auto loans at attractive interest rates today, making it more convenient for individuals to own their dream car!

But before opting for an auto loan, consider the loan amount and plan a budget accordingly.

A number of factors determine the final amount that needs to be paid when purchasing a car. Similarly, these factors determine the auto loan amount that one needs to apply for.

The best way to calculate the loan payments in order to purchase a car is through a car loan calculator. One can effectively use this calculation tool to accurately calculate the nature of his payments during the term of the car loan. 

The three major factors upon which the payment of a car loan depends are-

1. The price that one pays for the car after including all trade-ins
2. Rebates
3. The down payment

Once, the borrower is aware of the above three numbers, he can calculate the EMI that he needs to pay after including the interest rate on the car loan.

How to calculate car loan payments?

Any car loan calculator will ask for the below mentioned basic information. This includes-

• Price of the vehicle
• Trade-in-Value
• The amount of down payment
• Interest rate
• Tenure of loan

Car loan calculators that offer greater detail, may also ask for sales tax paid on the car. Using a car loan calculator is fairly simple and will allow one to plan his auto budget accordingly. One can get access to a car loan calculator online on various websites.

While car loans are easily available in the market, one should be extremely careful when applying for this type of a loan. Dealers are offering long term auto loans to make expensive cars more affordable for customers. There was a time when the tenure of a car loan was maximum 60 months, but today dealerships also offer a tenure of 6-7 years on car loans.

The longer the loan, more is the interest that has to be cleared. Thus, in the long run the loan turns out to be more expensive than the car purchase. Discuss all the aspects of the loan with the dealer first.

Before opting for a long term car loan, use a car loan calculator to ensure if it is feasible to pay back such a loan amount.

How to use your savings account to meet your millennial goals

While most people opt for fixed deposits and recurring deposits in order to maximise their goals, the same can be done with a savings account as well. Especially, in case of millennials who do not have a large amount of cash to invest in a fix deposit, using a savings account smartly will take one a long way!

A wide variety of different types of savings accounts are available, which help to build up cash to meet future goals. They are-

Savings accounts offering high interest- A number of savings accounts offer high interest on the money one saves. In fact, a few also come with the feature of a high introductory rate of interest that is offered for a particular period of time.

Savings accounts that offer incentives and bonuses- Investing in such a type of savings account is a great way to earn fast money. In case a customer meets particular conditions, such as limited withdrawals, a bonus is added to his account.

Savings accounts online- In case one is too busy to regularly visit their local bank branch, open a savings account online. Online savings accounts offer better interest rates and lower overhead charges.

In order to choose the savings account that best suits one’s needs, consider all the different options and decide how you would like to manage the account. In case one opts for an introductory rate, ensure that a competitive interest rate is offered in order to maximise returns. Also find out the frequency at which the interest is calculated. The more frequently it is compounded the higher will be the returns.

Most importantly, carefully consider all the terms and conditions the bank is offering before opening a savings bank account. Go through all the fees, requirements of deposits and withdrawals, overhead charges as well as any restrictions that are mentioned in the agreement, before accepting it.

Another effective way of optimizing the use of a savings account is opening more than one. This is especially beneficial for those individuals who are looking forward to accomplish multiple goals. So if one has 2 goals to meet in about 5 years, he can set up 2 savings bank accounts and segregate his savings separately. This does help prioritise and effectively plan a budget as well. In this way one knows exactly how much he needs to meet each specific goal, and money can be saved at a faster rate.

Start small by opening two or more savings bank accounts, but achieve big money goals this way!

Reduce your chances of defaulting on your business loan with these tips

One may default a business loan for a number of reasons. In case of some individuals it is merely carless miscalculation, for many others a default may be the result of bad sales, sudden financial emergency or other related factors.

A business loan default should be avoided as much as possible, because it negatively effects one’s credit score and history. Moreover, a default also adds more debt pressure and puts one’s assets at great risk.

Some amount of grace is given by banks to a borrower, generally about 2 weeks, before he is tagged a defaulter, but this is absolutely on the lender’s discretion. Here are a few helpful tips that one should keep in mind in order to avoid defaulting-

In case of delay, inform the lender

If you have taken a business loan and are going through a difficult time, it is best to contact the lender and inform him why there may be a delay in payment of the EMI. One should inform the lender that he needs some time to get things together and that repayment will be done soon.

Refinance

A common problem that many businesses face is the pressure of clearing small loans that have been taken for a short period of time. In this case, one should weigh their options and consider refinancing. Debt consolidation comes handy during this time. But the present situation should be carefully evaluated before taking another huge loan to pay current short loans.

Prioritize payment of debts

In case one has a number of short term debts, it is best to prioritize their payment. Keep in mind the payments that need to be made at the end of the month and ensure that they are promptly cleared. Do not delay small payments as they will keep piling up.

Ensure that the credit card that has a high rate of interest is cleared first. In this case one pays less interest on the whole.

Take legal help

Seek the advice of a lawyer in order to find a solution to any such problem.

Try cutting costs

In case the business is new, ensure that some cost cuts are practiced. A stringent budget should be organised and re-evaluation of the expenses should be undertaken from time to time. This will allow one to plan his debt repayment more efficiently and prevent any defaults of business loan.

In order to successfully pay back a business loan, one should carefully consider if he really needs the money and has the capacity to repay, at the time of loan application.

Demat Account: How holding this account will benefit you

Dematerialization first began in 1966 and the concept of demat, which is short for ‘dematerialization of share’ has been silently growing in the country.  It functions similarly to a bank, just as accounts can be opened in banks to save money, customers are given a passbook and online access to make transactions and check balance, the same is done in case of dematerialization. In this case, the data is kept in depositories and backed up as well depending on its importance. This service has made the trade and ownership of shares more secure and simple.

To open Demat account, first conduct a thorough research and compare which bank is offering the best Demat account features and benefits. Once the decision is made send in the application along with the necessary documents. Once the documents and application are approved and processed, the Demat account is opened at the cost of a small maintenance fee. The documents that need to be provided include identity proof and address proof. Submitting a copy of the PAN card is best. One also has to submit their photograph at the same time.

To open Demat account, a minimum balance is not essential. Although it is best to make sure that the documents provided are correct to avoid any delay. Here are a few advantages of holding a Demat account-

• Dealing with shares via a Demat account is not only convenient but extremely easy as well.
• Because all the data is securely stored, one does not have to worry about lost investment certificates or for that matter even fake certificates.
• It is quite simple to transfer securities via a Demat account.
• As compared to the cost incurred via physical purchase and sale of securities, costs incurred are much lower when such transactions are made through a Demat account.
• Bonus shares as well as share splits are stored in the account automatically.
• The banks offering the best demat account features, also manage bonds for customers. Thus, one can manage majority of their investments through a single account.
• Through a Demat account single shares can now be transacted as well. Earlier, this was not possible and shares could only be transacted when in lots.
• Thefts, faulty deliveries and the risk related to false shares will be completely eliminated for those who hold a Demat account. It also involves less paperwork and timely delivery.

One can effectively trade through a demat account, but deal with a bank that is reliable and offers the best features in share sale and purchase.

How to deal with ATM card frauds

While an ATM card or a Debit card come extremely handy on a day to day basis, one has to be careful when using them. ATM frauds are very common and one may fall prey to such a theft when they least expect it. Thus, it is best to be alert when using an ATM card or a Debit card.

To avoid falling prey to an ATM card theft, one needs to first know the various means through which such fraud is committed-

1. Cash trapping through a ruler device- In this case the thief installs a ruler device that holds onto cash in the ATM machine. When cash is withdrawn it does not come out, and while the customer seeks help the thief withdraws the money and escapes.
2. Distraction and attack- In this case, the customer is distracted by one gang member just after he has authorized the transaction via an ATM machine. The distraction may be in the form of some emergency assistance. While the customer is helping out, another gang member removes the money from the machine.
3. Very often fake pin pads are also installed in order to get hold of transaction PINs. 
4. Card skimmers may also be used to commit ATM card fraud. This device basically records the data from the ATM card’s magnetic strip. While this means of fraud is more common in case of credit cards, it is also sometimes used to commit ATM card frauds.

Here is how one can deal with ATM card frauds-

• Once you have entered the ATM room, stay alert and carefully observe the place.
• Hide the ATM keypad while typing the PIN as well as the amount.
• In case the machine does not work efficiently, inform the authorities immediately. Make sure to cancel any transaction first.
• While making the transaction do not take help of any strangers, especially those who look suspicious.
• After the transaction is complete and the money has come out of the machine leave the ATM room but ensure that you are not followed. If one feels suspicious head right towards a local police station and make a complaint. 
• If one has fallen prey to a debit card fraud or witnessed it make sure to get in touch with the authorities immediately. This way prompt action can be taken and the criminal or gang may be located and put behind bars.

All types of crime and thefts can be prevented by the spread of awareness. Thus, one should be aware about such crimes in order to stay alert and vigilant.

Why do you need internet banking today?

Internet banking is convenient and is gaining much popularity these days. While many may still prefer the traditional way of banking, that is, making transactions through checks and bank drafts, there are others who have adopted the modern system of banking- Internet banking!

Very soon most individuals will prefer this modern form of banking over the traditional means of making transactions, and rightly so!

With the advent of the internet, lifestyle these days has become superfast. No one has the time to make frequent bank visits in order to make transactions. Thus, internet banking is the perfect solution for instant transactions from the comfort of the office or home. It is fast, easy and reliable!

Here are a few reasons why Internet banking is great and a must these days-

• Pay bills with just a few clicks

Online banking allows one to clear their bills without the hassle of standing in long lines. Bills can be cleared anytime from anywhere. While many complain that relevant information has to be first put in about the payees, which takes considerable time, this is merely a onetime thing. Once this step is completed, bills can be paid anytime by just choosing the payee profile and authorizing the payment.

• Easy view of list of transactions

One can get access to their transactions and account balance anytime, anywhere. There is no need to constantly update passbooks in order to keep a tab of the account history anymore. Thus, one can easily keep a tab on any pending transactions or other issues related to the account. Any errors that occur can also be immediately detected and resolved.

• Access to mobile banking facility

Internet banking has just become more advanced with the recent introduction of mobile banking applications and facilities. Thus, one can now do bank transactions and payments through apps on their smart phones. One only has to download the app and boot in relevant information to log in. Once this process is done transactions and bill payments are just a touch away.

• Easy access to bank information

Internet banking also allows one easy access to information about loans and various investment options that the bank offers.

While Internet banking has made life easier and is quite secure, one should be vary of cyber-crime and ensure that their account is well protected. Account passwords should be changed often and always log out after every session. It is also best to avoid sharing account passwords with anyone or logging on to the bank account on an open Wi-Fi.

Know how your interest is taxed with your recurring deposit

A recurring deposit is very similar to a fixed deposit, except one does not have to lock in the entire sum at one go. In case of a recurring deposit a fixed amount of cash has to be transferred to the account on a monthly basis for a certain period of time.

To open a recurring deposit account, one has to first open a savings bank account. Each month, money will be automatically deducted from the savings account and transferred to the recurring deposit account. If one opts for a recurring deposit of 5 years, the rate of interest that he may get is about 8.4% annually.

How is interest taxed in case of a recurring deposit?

While before the year 2015, there were no taxes charged on interest earned from recurring deposit investments, the government came up with a new rule during the financial budget of 2015-2016, that TDS (Tax Deducted at Source) would apply henceforth and 10% would be deducted from the interest that is earned on recurring deposit.

But TDS is only deducted if the interest earned is above Rs10, 000. In case one fails to submit their PAN card information to the bank, they are charged 20% on the interest earned.

In case one has a recurring deposit account and their income falls below the non-taxable income category, form 15G still needs to be submitted in case of fixed deposits as well as recurring deposits.

How can you opt for tax exemption on a recurring deposit?

In order to reduce tax payment it is best to opt for tax saving recurring deposit accounts. One simple way of saving tax payment on recurring deposit is by opening an account with the Post Office. Tax exemption is only applicable if the account has tenure of about 5 years.

The income tax is generally cleared at the end of every financial year or after the recurring deposit matures. The same applies for fixed deposit accounts. The choice is generally made by the tax payer. But, once the time of tax payment is chosen it cannot be changed.

Are taxes liable for a minor holding a recurring deposit account?

In case a recurring deposit account is held by a minor, the parents are entitled to pay the tax on the earnings.

Calculation of income on recurring deposit
For the most accurate results it is best that one uses a recurring deposit calculator, which is available on a number of bank websites. A RD calculator is simple to use and saves time.

Essential factors you need to keep in mind when investing in a fixed deposit.

A fixed deposit (FD) account is offered by banks as a form of investment either for a short period of time or a long span at attractive interest rates. In case of a savings account, cash can be withdrawn at any point of time, but an FD works differently. In case of an FD the amount deposited is locked in for a certain span of time at a high rate of interest.

A fixed deposit is a great way of saving money, especially for aged individuals who do not want to take much risk with their investments. Agreed, it gives back lower returns as compared to mutual funds, but an individual’s money stays secure in an FD and returns are definitely guaranteed.

The best way to calculate investment and consequent returns when planning to open and FD is through a FD calculator. The FD calculator will give one a clear idea about his investment, the amount of interest earned and the term of the FD.

There are also a few factors that should be kept in mind when investing in a fixed deposit account. They are-

Opt for a deposit insurance when opening a FD

Banks offer a deposit insurance up to 1lakh rupees only. Thus, if one wants to invest more than a lakh in an FD, it is best that you open more than one FD account at different banks or under different family member names, to ensure safety of investment.

Ensure a good interest rate deal

Do not end up locking in a large sum of money, for a long period of time at a very low interest rate. In order to ensure a good deal, split the investment between different FDs at different interest rates and terms. Thus, if one FD account has a tenure of one year, the other can hold a tenure of about 2-3 years.

Opt for a FD at public sector bank

This is primarily because a public sector bank is a safer option than a private sector bank. Moreover, the returns are also higher when investing in a FD at a public sector bank as compared to the private sector. Calculate the returns with an FD calculator to compare.

Consider co-operative societies and non-financial institutions

FDs are also offered by co-operative societies as well as non-financial institutions. Because of the high risk factor in investing in an FD with such institutions, the rate of interest offered to the customer is also quite high as compared to banks. Thus, while high returns are ensured, make sure to choose an institution that is reputed and reliable in order to ensure some safety of investment.

Internet Banking: Things to avoid for safe banking

Today, mostly all transactions and payments are done through internet banking. It is not only simple, but also one of the easiest modes of transacting money. It is also quite safe, but because this means of transacting money is very popular, cyber-crimes are on the rise.

Cyber criminals keep finding new methods through which they breach security. Thus, it is best to stay safe than sorry when it comes to handling hard earned cash. Here are a few things that should be avoided in order to ensure safe internet banking-

Avoid using same passwords for a long time

This is one of the easiest ways to ensure that a net banking account is secure. Keep changing the password from time to time. Also make sure that the password is strong, use both upper as well as lower cases and add in numbers whenever possible. Special characters should also be used. In case, you have a number of different bank accounts for internet banking, ensure the use of different passwords for all accounts

Avoid sharing account passwords

This is a definite No! In case one does have to share their password during any emergency, change it as soon as possible.

Avoid connecting the net-banking account with an E-mail link

Do not sign into an online bank account through an E-mail link. Most E-mail links are no good and may be designed to steal confidential data.

Avoid using any other app for internet banking

It is best that one uses the official bank app when internet banking. An official bank app is more secure as compared to third party applications. Also ensure that you are downloading the app from authentic application stores such as the Google app store or the Apple app store. Avoid downloading any apps through ‘aggregator’ applications.

Avoid internet banking through a Wi-Fi network that is public

Unless and until the transaction or payment is extremely important, avoid internet banking when using an open Wi-Fi or shared network. This is primarily because such Wi-Fi connections can be hacked easily and confidential data can be stolen in no time.

Avoid internet banking at a Cyber café or through a shared computer

Just like in the case of open Wi-Fi, it is very easy to hack into cyber café computer systems and get access to account information. These computer systems are meant for public use and generally have a lot of harmful malware.

One should also ensure that they always log out of the net-banking account after using it. This will keep one’s confidential data safe from hacking means, such as- session hijacking as well as cross-site scripting exploits.

Enjoy the conveniences of online mobile recharge

The advancement of science and technology has resulted in the constant evolution of the telephone. This means of communication which once began with bulky home telephones have now transformed into smart touch phones. The development of Android and Apple technology has made communication even easier. Today, everyone owns a smart phone and an internet connection is a must.

Recently, transactions and transfers, especially online mobile recharge and payments have become easier, as a number of banks and other institutions have come up with their own apps through which payments and transactions can be made.

For instance, in case of online mobile recharge, payments can be made through personalised apps that have been introduced by banks or various mobile phone companies like Airtel, Vodafone and Reliance.

Online transactions and payments are easy and simple. Here are a few advantages that you can enjoy when doing an online mobile recharge-

Anytime time recharge

Now there is no need to go to a store and get a recharge done. One can just learn how to recharge online and do it from the comfort of their homes. Moreover, online mobile recharge can be done anytime as the facility is available 24X7!

Convenient payment

Through online mobile recharge, one saves himself from the hassle of producing the exact change as demanded by the store keeper. Online payments and recharge can be easily done via a debit, ATM or a credit card. Moreover, net banking has also been introduced making online transactions much simpler. One only has to fill in the details of their card and an OTP is sent via message. Once the OTP is typed in, the transaction is processed and the payment is completed.

Great offers, discounts and cashback options
While many consider that online mobile recharge is a hassle and takes too much time with the app download and setting up of payment details, this is only a onetime thing. Once the payment setup is done, you can do online mobile recharge within a few seconds. Moreover, attractive cashback offers and discounts can be availed while making online payments. There is generally no cashback offer when one goes to the store to do a recharge.

It is not only banks and mobile companies that have come up with apps that help in online mobile recharge as well as other transactions. There are a couple of apps in the market that only help with online payment. One can book film tickets, recharge their mobiles and even shop online with the help of these apps. For example, Paytm is a popular app for online mobile recharge as well as for other payments.

Organise your personal loan repayment with this financial tool

A personal loan can be easily availed at the time of a financial emergency. A number of people opt for a personal loan in order to finance their child’s education or wedding. Personal loans are also taken to meet medical needs or make home improvements.

While a personal loan is unsecured and can be availed much faster as compared to other loans, one should thoroughly consider his options before applying for this type of a loan. This is primarily because any type of default in the repayment of the loan, can put a person in greater debt and gravely affect his credit score as well as history.

Before applying for a personal loan, compare the rate of interests and benefits that are offered by various banks and calculate if you can meet the monthly instalments in time. One can do such calculations with the help of a personal loan EMI calculator.

A personal loan EMI calculator is a tool that one can use in order to find out the EMI that one needs to pay as per the rate of interest offered by the bank. To use a personal loan EMI calculator one needs to feed in basic information like the loan amount that is required, the tenure of the loan you are looking for and the rate of interest that the bank is offering.

This calculator can be used to make comparisons of the different rate of interests that various banks are offering and if you can afford repayment. The tool prepares a person by informing him about the exact amount of loan that he can borrow. Thus, it is an effective tool that helps one organise their personal loan repayment plan.

This is how one can take the help of a personal loan EMI calculator in various situations-

• In case of a car upgrade, one can use a personal loan EMI calculator to check if they should opt for a secured or unsecured loan.
• In case of home improvements, this calculator will help in planning just how much you can borrow. Thus, you will be able to decide on improvements that are affordable and those that are expensive.
• When planning a holiday, a personal loan EMI calculator will help one decide the amount that he can borrow. One can also check the tenure he should opt for in order to make repayments easy.
• One can also use a debt consolidation EMI calculator to check if opting for a personal loan at low interest rates, will benefit their payment of debts.

Why personal loan has become a popular option for financial aid?

A personal loan is availed by individuals who need money urgently to meet their financial needs. While other loans, like a home loan or a car loan are given against some sort of security, a personal loan can be given without a security. Most banks only see if the borrower holds a credit card to approve a personal loan.

Here are some advantages of a personal loan that make it one of the best options for people seeking financial aid-

Can be used for various purposes

While a home loan can only be used to finance a home, or an auto loan can only be used to buy a car, a personal loan can be taken to meet any financial requirements. It can be used for a variety of purposes such as meeting medical expenses, organizing travel plans, educating children or even getting them married. Sometimes a personal loan is also taken in order to make home renovations and improvements.

Can be availed easily

One can get hold of a personal loan very quickly. In case of some banks, the loan approval and sanction of the amount takes about 24 hours only, depending on the urgency of the loan. Thus, in case of a sudden emergency it is best to get a personal loan.

The documentation required is minimal

As compared to a home loan or an auto loan, which require a number of documents to be produced at the time of loan application, a personal loan requires very little. Thus, the loan processes faster.

Unsecured loan

This may be one of the biggest benefits of a personal loan, it is unsecured. One can get hold of a personal loan without offering any security. The term of the loan is also shorter when compared to a housing loan or an auto loan. This ensures safety of assets.

Moreover, a personal loan also greatly improves one’s credit score as well as history, in short it enhances one’s credit profile to a great extent.
 
But while opting for a personal loan, one should also keep in mind that they should only borrow the amount that they can afford to repay. One should also try to clear their personal loan well before their tenure comes to an end, in order to maintain a good credit history.

Before opting for a personal loan, it is important to consider how urgent the money is and the purpose of use. While the loan can be easily availed and is quite convenient, default of any payment can result in problems.

EMI Calculator: Using this tool to calculate the ideal loan amount

EMI, which means Equated Monthly Instalments, is a sum of money that has to be given every month in order to clear a loan. The EMI is generally fixed, but the amount of principal or interest that has to be paid varies from one month to another. During the first few months of clearing the loan one is likely to pay more of the interest as EMI than the Principal amount.

When it comes to taking a loan, the first step involves calculating the loan amount that one requires and preparing for loan approval. The cost of the loan needs to be calculated and it can be best done with an EMI calculator.

A loan calculator will effectively help an individual calculate the amount of EMI that he will need to pay, along with the rate of interest that will be charged on the loan. Once this calculation is effectively done and the loan amount is fixed, an application to the respective bank should be made.

How does an EMI calculator function?

One needs to provide information like the loan amount one wants to acquire, the tenure of the loan, the rate of interest and the overall loan processing charges, in order for the loan calculator to calculate the EMI.

Once the above information is provided to an EMI calculator, it will offer the EMI that will have to be cleared, the entire breakup of the loan payment and will also offer view of the amortisation table, which will include the amount that needs to be cleared after every year of the loan tenure.

Some more advanced type of EMI calculators may also show a pie chart, offering the entire breakup of the loan.

Benefits of using a loan calculator

• An EMI calculator offers accurate numbers in a matter of seconds. One just needs to feed in relevant information into the calculator to get a clear breakup of the loan amount that needs to be paid back.
• It helps simplify the hassle of manually calculating the EMI of the loan and other related numbers. Thus, it effectively reduces the borrower’s confusion when it comes to complex calculations.
• An EMI calculator is a great tool when it comes to managing and planning finances. Comparisons can be easily made between the various interest rates and other offers given by different banks. One can put in a number of different combinations and choose the bank that offers the best deal.

A number of different loan calculators are available on the website of various banks online. One can easily take the help of this calculation tool to plan his loan.

What are the different channels through which you can send money to India?

Staying abroad? Wondering how to send money to India? Today a number of different services and means of sending money to India have come up. These services are not only cheap but even fast and extremely reliable.

It has now become easy for NRIs to send money to their family and friends living in India, or corporate businesses abroad to pay their business partners or employees in the country. For those wondering how to send money to India, here are a few different channels that work best-

Online transfer

The world of internet is fascinating and makes things easy. When considering how to send money to India, one can opt for simple online transfers. It is without a doubt one of the easiest methods of sending money to India. One has to get in touch with their bank and opt for online transfer services, once this service is activated transferring money to India is possible with just a few clicks of the system keyboard. This way of transfer is especial recommended for those who send money to Indian regularly.

ACH transfer

Automated Clearing House (ACH) transfer is a method by which the money is transferred electronically. One only needs to transfer the money via their bank account through ACH transfer and it will reach India in about 4 working days. This system of transfer involves no extra fees or frequent banks visits.

PayPal

Known to be one of the largest in online payment processing, PayPal is an easy and fast way to transfer money to India from overseas. This type of payment method is mobile friendly, thus the transfer can be done anytime anywhere. While no transaction fees are charged through this medium of transfer, the recipient of the amount may have to bear a small fee.

Money orders

This method is quite safe and cheap, when sending small money amounts to India. Almost all banks deal in money orders at a small charge.

Wire Transfer

The traditional way of transferring money to India, wire transfer is a service being offered by banks since 50 years and running. One has to pay a couple of visits to the bank in order to wire transfer the amount to India. This process takes time, but transferring money is fairly simple.

Bank drafts

A practical option, as the cheque can be immediately cashed by the recipient in India. This type of transfer method is costlier than others, but if the money is lost during transfer it can be tracked down conveniently.

Other transfer services include Transfast, Xoom, MoneyGram and personal checks.

Applying for car loans? Here is what you need to know

In India everyone wants to build their own home first and then invest in a car. One can definitely make this purchase faster and easier with car finance options. A number of banks and non-financial institutions not only offer goof homes loans, but excellent car loans as well. 

Car loans today, come with low interest rates, feasible tenures and affordable EMI payments. Thus, with a number a car finance options many are able to enjoy the comforts of their very own car while effectively balancing their monthly budget.

Here are a few facts that one should know when opting for car loans-

Availability of car loans

Car loans can be availed when buying a brand new car and even on a car that is pre-owned. In both cases the rate of interest varies. The rate of interest on a new car loan varies from 9.25% to 13.75%, while on a car that is pre-owned, one may get an interest rate ranging from 12.5% to 17.5%.

Eligibility criteria

An eligibility criteria exists for all kinds of loans, and car loans are no exception. One needs to fulfil some conditions in order to avail an auto loan. Some factors that influence eligibility are age of the borrower, monthly salary, and type of employment as well as resident address.

Here is a list of some of the documents that a borrower will have to produce at the time of loan application-

• Identity proof, for instance a copy of your PAN card, driving license or passport
• Proof of address
• Proof of age
• Photographs
• Documents of the car
• Proof of income which may include salary slips of minimum 3 months, or a recent income tax statement

Some banks or lenders even require a copy of the car insurance at the time of submitting the loan application.

Approval of loan amount and interest rate offered

The amount of loan that may be approved, and the interest rate offered on the loa.n generally depends on the age as well as income of an individual. Most lenders give around 80% to 90% of the loan amount that has been applied for. A few may also be ready to offer 100% of the amount that is applied for.

The rate if interest charged on car loans is mostly fixed. Some individuals also opt for a floating rate of interest with the hope that the interest rate may fall soon. In case of car loans, some lenders also offer discounts on the rate of interest to women. Thus, go through the details when considering various car finance options

How can your international travelling benefit from multi – currency cards?

Multi – currency cards are known to be pre-paid cards that one can opt for when travelling to various countries at the same time. Banks generally allow one to load major world currencies like the US or the Canadian dollar etc. These cards do not work in India, Bhutan and Nepal.

Multi – currency cards can be extremely beneficial for business travel and even holidaying at various exotic destinations. Here are a few uses of such cards that one should be aware of-

Easy access to various currencies

One can load Multi – currency cards with a number of foreign currencies depending on the various currencies that their respective banks allow. For example, 16 currencies are allowed to be loaded in Multi – currency cards offered by Axis Bank Ltd, while ICICI Bank Ltd allows about 15 currencies and HDFC bank allows 20 currencies. These currency cards can be used at outlets to make payments or at the ATM for cash withdrawal.

Transactions are straightforward and simple

While international credit cards involve transactions fees as well as high maintenance fees that is generally paid on a yearly basis, there is no such hassle involved with Multi – currency cards.  With Multi – currency cards, one will only have to pay the expenses that they clear with the help of the card.

Fixed rate of exchange on purchase

While the rate of exchange keeps changing on a day to day basis, it will remain fixed in your case at the time of purchase of the card. Thus, one may enjoy a cheaper rate of exchange even if it has increased substantially.

Thorough protection

Multi – currency cards are well protected, thus they offer security of money. In case of card loss, just inform the bank and the card will be blocked immediately. Moreover, a replacement card will be issued in the next 48 hours.

Avail great deals

There are a number of Multi – currency cards that also offer great discounts and benefits on flight travel and holiday packages. Most cards also offer travel insurance, which include situations like a lost card or insurance on delayed baggage.

Minimal paperwork

One can easily avail Multi – currency cards through their bank. Just submit a copy of the flight ticket, an A2 form, PAN card information and a valid passport. On the basis on these documents the travel card will be issued in a short period of time.

Multi – currency cards have made it extremely convenient for business men and corporate companies to undertake exchange and payment in foreign countries. All details should be read and understood before availing a travel card.

Guidelines to investing in NRI accounts

The full form of NRI is Non-Resident Indian, that is, a person who has Indian citizenship but lives overseas. All banks have certain benefits and features that aid NRIs in maintaining various types of accounts in the country, so that they can control their funds effectively. But there are certain rules and conditions when opening NRI accounts in the country.

Essentially an NRI can hold 3 types of accounts with Indian banks. They are-

1. Non-Resident (External) Rupee (NRE) Account
2. Foreign Currency (Non-resident) Bank Scheme (FCNR (B) Account)
3. Non-Resident Ordinary Rupee (NRO) Account

Here are a few facts that you should know when opting for the above mentioned NRI accounts-

• Eligibility to open NRI accounts
In case of NRE and FCNR (B) accounts, a NRI or PIO (person of Indian origin) is allowed to open such accounts. Pakistani and Bangladeshi residents have to first get approval from the Reserve bank of India (RBI) before they are allowed to open such accounts.
In case of NRO accounts, Pakistani and Bangladeshi residents have to first get approval from the Reserve bank of India (RBI) before they are allowed to open such accounts. While NRIs dealing in bonafide Rupee transactions can open this type of an account.

• Eligibility to hold joint NRI accounts
All the three accounts can be held jointly by 2 or more PIOs or NRIs. An NRI can also hold a joint account with a relative who is a resident in India.

• Currency that can be deposited
In case of NRE and NRO accounts, deposits can be made in Indian Rupees only. In case of a FCNR (B) account, any type of foreign currency that can be easily converted is allowed.

• Various types of accounts that one can hold
In case of NRE and NRO accounts, you are allowed to open a savings account, current account, fixed deposit account and even a recurring deposit account. In case of a FCNR (B) account, you can only hold a term deposit account.

• Term for Fixed deposits
When it comes to a NRE account, one can maintain a fixed deposit account for a period of 1-3 years. The bank may allow a fixed deposit for more than 3 years depending on the asset-liability of the customer.
In case of a FCNR (B) account the period of a fixed deposit is always more than a year but should not exceed above 5 years.

A NRO fixed deposit account can hold any term depending on the resident account.

These are the few basic guidelines when it comes to holding NRI accounts, for more details one should consult the bank he wants to open an account in.

Know these smart facts about the NRO account

In case of NRIs (non-residential Indians) the easiest way to handle their earnings and funds in the country is via a NRO account. Thus, the Non-resident Ordinary (NRO) account may be opened either as a savings bank account or a current account. Just like the NRI account, the NRO is an Indian Rupee account.

In order to open an NRO account, one initially needs to provide documentation proof that they have gained NRI status. The documents that banks generally ask for include identity proof, proof of NRI status, foreign address papers and a couple of photographs.

The resident proof that is generally offered to banks are employment papers, student status, details of dependent visa, or a print out of the overseas resident permit. The proof that you provide should be attested either by the embassy of India, notary or a bank with a branch that operates overseas.

For smooth and fast transfer of account, one can also provide an Indian address proof along with the other documents. Once the application along with the documentation is submitted, it is reviewed by the authorities and if all is in place, the savings bank account will be transferred into a NRO account.
While opening an NRO account there are certain other facts that should be kept in mind. They are-

1. An NRO account is not only meant for NRIs. Persons of Indian origin (PIO) as well as overseas citizens of India (OCI) can open this account and enjoy its benefits.

2. In order to maintain an NRO account or for that matter even a NRE account, you have to have a minimum of Rs75, 000 in it.

3. Restricted repatriability has been initiated in case of the NRO account, this means that only 1 million $ can be remitted from the account annually.

4. While one does not have to pay taxes on the amount saved in the NRE account, the NRO account is subject to tax payment. Thus, the interest earned on the amount deposited in the NRO account and the credit balance too are subject to income tax clearance.

5. One can hold a NRO account with another resident Indian as per Section 6 under the Companies Act 1956.

Thus, opting for a NRO account will be beneficial in order to save funds in the form of dividends or rent coming from the country itself. A number of benefits are also offered to customers who hold this account. In case of a NRO joint account with an Indian resident, one can also hold it as a fixed deposit account, thus keeping his savings safe and sound.

Why should you opt for the fastest option to send money to India?

There was a time when many struggled to send money to India while living across the seas. It entailed high exchange rates, long wait and risk. But today, it has become very easy to send money to India to one’s parents, family, friends as well as business partners. One does not have to wait in never ending lines at the bank in order to transfer money overseas. These days the internet has become a rage, and things have become quite easy, from shopping online to even transferring money to India.

When one is considering ways to send money to India, they look for options that are fast, cheap as well as reliable. While the exchange rate and reliability of the online transfer service, bank or Transfer Company are important factors that should definitely be considered, always make sure you choose the fastest method of sending money. This is primarily because one can stay assured that they will be able to transfer money anytime or at the time of any emergency without worrying that it will not reach on time.

Thus, when choosing a transfer company or bank, or even an online method to send money to India, here are a few factors that should be carefully considered-

1. Time taken to transfer- This is quite an important factor that should be considered. If the transfer needs to be done quickly choose a service that does it in just a matter of minutes. There are services that complete the transfer in a span of 2-5 business days as well.

2. Exchange rates offered- exchange rates vary from bank to bank and services to services. Find out the exchange rates that are offered by various services, tally them properly and choose the deal that suits you best.

3. Transfer fees- In most cases transfer services do not charge any fees. But banks and some online services do. In case of online services the transfer fee is very low, but banks do tend to charge high fees. For example, in case one has to transfer money from U.S.A to India, some banks charge as high as 25$ for every transfer.

4. Minimum amount that can be transferred- The minimum amount that can be transferred also varies from service to service. While some transfer services in the U.S allow one to send money to India as low as 10$, there are others that only allow transfers that are 200$ or more.

5. Customer service and reputation- Choose a service that offers good customer care. This is because if there is any problem with the transfer one can follow up with questions.

How to transfer funds from an NRO account to an NRE account

Sometime back, Non-resident Indians, that is, NRI’s could transfer cash from their NRE to their NRO account, but vice versa transfer was not allowed until the year 2012, when the government made such types of cash transactions possible. 

A NRE account stands for- Non-resident external account, whereas the full form of a NRO account is Non-resident ordinary account.

While it is quite simple to transfer cash from NRE to NRO account, some norms have to be adhered to while transacting cash vice versa. Currently, only about 1 million dollars can be transferred from a NRO account to a NRE account. The following steps should be kept in mind when transferring cash-

1. A FEMA declaration has to be made

The document essentially declares your eligibility to transfer money from a NRO account to a NRE account. If one does not produce this document the bank can refuse the transfer of the cash.

2. Fill the form 15CA

Filling the form can prove to be a bit tedious, but patience is the key. Log on to the website of the income tax department, using your pan card and login credentials. Read the instructions regarding the form 15CA and fill up accordingly. Once the form is filled submit it and get hold of a print out which you have to present to the bank.

3. Get hold of form 15CB from your chartered accountant

One also needs to submit the form 15CB and can avail the help of a chartered account to do so.

4. Submit all documents to the bank

Once the forms are filled and submitted, ready the various documents that have to be submitted to the bank. Make sure you have a copy of-
• Form 15CA and form 15CB
• Demand draft or a cheque with the amount that needs to be transferred
• Request letter for transfer, or a form depending on the requirements of the bank
• Other documents that the bank has asked for

5. Transfer of amount

Once the bank verifies all the documents that have been submitted, it will proceed with the transfer of money from your NRO account to your NRE account.

When endeavouring to transfer cash from NRO account to a NRE account make sure to find out relevant information from the bank. This is because the steps of transfer and documents required may vary from bank to bank. Also make sure that no mistakes are made while filing both the forms. Any error may prolong the entire process of transaction.

Transfer of funds from NRO account to a NRE account should be done fast to reduce tax payments and enjoy other benefits.

Precautions to take in order to avoid a personal loan debt trap

Known to be an unsecured loan, a personal loan helps one during a financial emergency. One does not require to place any security or collateral to avail the loan. Moreover the loan can be flexibly used to serve one’s purpose, be it paying medical bills, travelling, clearing educational fees of children or even getting them married.

Personal loan in India is quite sought after because it can be easily availed and is quite flexible. One may opt for a personal loan, especially if they need the money for a short period of time. But a personal loan in India as well as other countries, generally comes with a high rate of interest, thus certain precautions have to be taken while opting for this loan. Any type of default in the repayment of a personal loan can lead to major outgo and in many cases heavy debt as well.

Thus, certain precautions should be kept in mind while opting for a personal loan in order to ensure timely repayment of the amount-

1. Do not opt for multiple loans

Sometimes, a desperate need to acquire funds because of a financial crisis may compel borrowers to apply for multiple loans from various banks. This action, will greatly reduce chances of loan approval and sanction. When an application for a loan is made, the banks first go through the entire credit history of the borrower. If you have availed more than one loan, it may adversely affect the credit score. A person who does not have a very high credit score is generally charged a higher rate of interest, as compared to a person who has a good score.

2. Only borrow the amount that can be repaid

One can avail an instant personal loan from a number of banks today. Many borrowers take a hasty decision and avail the personal loan without considering if they have the potential to repay the loan in time. To ensure timely payment of the EMI, see that it does not surpass about 35% to 40% of the monthly income.

3. Loan tenure should be chosen after considerable thought

In order to reduce the burden of personal loan repayment, choose a short loan term. More the tenure of the loan, higher will be the total cost of repaying the loan. This is primarily because a higher tenure means a higher interest amount to be paid on the whole. Also keep in mind that you choose a loan tenure according to your capacity to repay the loan.

Apart from the above mentioned points, also make sure that EMI’s are paid on time and defaults should not occur. Moreover, the documents should be thoroughly read and considered before availing the loan so that no hidden costs are missed.