Factors to keep in mind before making an NRI investment.

Just because one is an NRI or a Non-Resident Indian, it does not mean that they cannot invest in Indian stocks. One can invest under the Portfolio Investment Scheme or PIS, by opening and NRE or NRO account in any of the RBI authorised Indian Banks.

But before making an NRI investment there are few factors that you should keep in mind. They are-

• First and foremost concern while making an NRI investment is to know if India is actually a good option to invest in or not. Compared to nations like Brazil, China and Russia, India was underdeveloped and its economic condition was not that great, but over the years there has been a steady rise in the economy which has made the country a suitable investment destination.

• Secondly, as an NRI you should look into the different options of investment. You may either invest in Direct Equity or Mutual Funds or Real Estate.
o Direct equity or Direct Investment means that one can directly buy shares in a company or invest in shares through a broker or sub broker.
o Indirect investment or Mutual Funds means that one can buy mutual fund.
o Real estate investment trusts or REITs are also considered as indirect investment. It is one of the most popular form of investment for NRIs.

• Thirdly, another important factor to be considered before making an NRI investment is tax.
Tax is usually made on Dividends and on Capital Gains on Mutual Funds.
o Dividend refers to the distribution of the profit earned by a company to their shareholders.
o There are two types of Capital Gains- Long term and Short Term:
When an NRI investment is made in Mutual Funds and an asset is kept or held by the investor for a year or more than it is a Long Term Capital Gain. If it is sold within a year itself, it is a considered a Short Term Capital Gain and the tax on it is 15%. Long Term Capital Assets are exempted from tax.

• Fourthly, an NRI should also consider the type of bank accounts available. You can either consider a NRE account or NRO account based on your preferences. These preferences takes into consideration  three main factors:
o The currency one wishes to deposit- In case of the NRO account, foreign funds cannot be transferred, unlike in the case of an NRE account.
o Fund Repatriation is another factor that determines the type of account that one should opt for. In case of an NRE account, principal as well interest can be freely repatriable, while in the case of an NRO account, the interest is taxed in India @30%.
o Another factor to keep in mind is the Funds that one wishes to invest in a bank are acquired from Indian sources and if they can be repatriated from the country or not.

Keeping mind these points will help an NRI make a wise and profitable investment.

What are the different NRI services in India that can benefit you?

NRI or Non Resident Indian, refers to those Indian citizens who have migrated abroad and are working there or are living there or those who are of Indian Origin but were born outside and have a different citizenship. In simple words it refers to all those Indian citizens or Indians who do not reside within the country.

But NRI’s are eligible to avail several banking services in India. Some of these services provided by banks are available on their respective websites for individuals to browse through. There are many different NRI services in India:

• One of the major benefits provided by banks is that they have numerous branches and ATMs all over the world and also maintain a global corresponding network.
• The banks also make provision of different types of accounts that an NRI can open. They are savings accounts, current accounts, accounts for NRIs, Offshore accounts and deposits as well as over draft against deposits. The individual may also select from a variety of options such as NRE or NRO or FCNR(B) or RFC accounts, keeping in mind the type of account (savings or fixed or both) they wish to have and the term of investment of their choice.
• Banks also provide premium banking services such as Classic banking, Preferred Banking and Imperia Banking to their NRI clients.
• NRIs can also apply for Home Loans and Loan against Securities through Indian banks.
• Besides enjoying the service of loans they can also look forward to investing in various form of Fixed Deposits, Mutual Funds, Equities and Derivatives, Private Banking, Life Insurance, Research Reports of Investments or Portfolio Investment Schemes.
• Banks also provide Life Insurance services for NRIs.
• NRIs can make payments via Billpay, Direct pay and Instapay Netsafe. They can also make Online Donations as well as make the most of online banking and banking through the use of phone apps.
• NRIs are also able to send money to India from any part of the world that they are residing or working in.
• Another major benefit is that different types of customer services are provided to NRIs. They can either dial toll free numbers to enquire about their queries. They can also find an Overseas P.O. Box or access points or file a complaint form or write queries on bank websites or also refer to bank service channel options in case of any questions.

All the services that are provided also include tax free interest income in India along with some other benefits as well. Thus NRIs can make the most of these services which make banking easier and faster.

How to send money to India: What are the options you can consider?

There was a time when people would post money to each other within the country. Now times have changed. People not only travel outside their village and towns to different cities but also cross borders and fly to distant countries. Those who work abroad should not worry about how to send money to India from across the seas, across the borders.

One can easily choose to transfer money via online or offline methods, and rest assured that the money will be received by their family living in India-

When considering how to send money to India some online options are:

• E-transfer– This form of disbursement is extremely convenient. In case of E-transfer money is directly sent and received from one bank account to another.
• Power transfers- It is a web-based wire transfer of money. It gets rid of all the errors that is associated with the normal wire transfer.
• Online foreign exchange service- This allows an individual to be able to remit money in different currencies.
• Paypal- Is a more recent transfer option that has come up. Paypal is another great and viable option which is extremely user friendly. Through Paypal, an individual can transfer money easily and quickly via his mobile.

Online wire options are better if an individual is in a hurry to remit money. One can also opt for National Electronic Funds Transfer (NEFT) system or EFT system and money can be received in India by a week. Although it takes more time, it comes at a lower cost.

When considering how to send money to India some offline options are:

• Cheques- Through this method of transfer, an individual will have to first order a foreign currency draft via which funds can be transferred to India.
• Bank drafts- Using this option is also very pragmatic as remote employees who work from India, can quickly cash the cheques.
• Hubstaff- It is another service that allows payment to outsourced employees in India.
• Wire transfer- This form of transfer is the oldest traditional method of money transfer, where one has to go to the bank or an agency in order to send money.
• Money orders- When it comes to transferring a small amount of money, a money order is the most feasible choice. Moreover money orders are less expensive compared to bank drafts.

While money transfer to India was difficult in the olden day, today it is as easy as making and online purchase. A number of different reliable and fast transfer modes have been developed for the convenience of Indians living over-seas.

How to track Forex exchange rate?

Foreign exchange rate is also known as Forex exchange rate. When the currency exchange rate is floating in nature, in that case it may be pegged with another currency, usually to the U.S dollar or to the currency of gold. The exchange rate is usually determined by the relative demand and supply of money in between two countries.

The exchange rate of a country generally signifies how economically well it is doing. The richer the country the higher is its exchange rate. This is primarily why more developed countries like America, Australia and Britain have a higher exchange rate as compared to developing countries like Africa or India.

It is important to be able to track the changing exchange rates with time and remain up to date with the prevalent Global exchange rates.

But how can one keep a track of the different forex exchange rates?

• One could do so by downloading the Global Exchange rate apps from the App Store or the Play Store or Google Play, where live exchange rates can be received along with the provision of an all-in-one currency converter. These apps also help to transfer money as well as track all transfers on the go.

• There are also service finance apps such as Yahoo! finance and free stock charts.com that offer notification of live market rates of currency pairs. One can just download such an app for more information on Forex exchange rate. These apps are extremely helpful to those who want to keep themselves updated about the global exchange rates.

• News channels as well as new apps also provides a lot of information regarding the world of Business and Finance. Daily discussions on the changing exchange rate in the Global market are held by news channels, offering a market analysis of every country’s economic status.

• There are plenty of websites on the net and one could surf these sites and web pages to get information on different exchange rates all over the world.

• While surfing the net, there are several web pages that provide information on Currency Tools, Foreign Exchange Charges Calculator or Forex Exchange Rate Convertors and Currency Converters and Calculators. These tools help to calculate and convert currency as per the exchange rate of the country one is visiting.

Staying up-to-date with the forex exchange rate helps people to trade at a more profitable rate.
Knowledge about the forex exchange rate is not just helpful for those involved in trade, business and finance but also those who wish to travel and see the world.

Do you know the features of the NRE accounts that you can use to your advantage?

NRE stands for non-resident external account. This account is a savings or a current account used by Indians who are staying abroad, allowing an efficient conversion as well as transfer of Indian and foreign currency, both in and out of India.

NRI’s may transfer money to their family living in India, through their NRE account. The income that is generated in the country as rent, dividend or pension is also deposited in their NRE account for later use.

Some of the features of the NRE account which you can use to your advantage are given below:

• The most attractive feature of the NRE account is the fact that it is free from wealth tax.
• Not only is the tax exempted but one can also earn interest.
• The minimum balance that has to be maintained in the account is comparatively low as low that is 10,000 rupees only.
• When it comes to NRE accounts, the account holder can nominate an Indian resident to be responsible for the savings in the account in case of death of the account holder.
• One can conveniently access money using an ATM cum debit card, anytime and anywhere. There are numerous ATM branches throughout the country.
• Simple and easy money transfers can be made at a very low cost both online as well as offline. The exchange rates generally vary and one can compare and select what suits them the best. Many banks also provide a very simple and safe process of money transfer from abroad to India.
• Banks also provide the facility and the option of auto renewal of deposits.
• A person can also open a joint account with another NRI.
• NRI accounts also allow easy transfer of funds from out of India into the coutnry.
• Another advantage of having an NRI account is that it comes with a variety of added benefits which caters to an individual’s needs in India as well as in foreign lands.
• If an individual earns rent or revenue etc. from Immovable property abroad, that amount can be deposited into the RFC account once the individual returns to India.
• The banks also offer several other facilities like International Credit/Debit cards, On-line / Internet banking etc. making the process of depositing and withdrawing money less tedious for customers.

All the above mention features are extremely pragmatic and beneficial for the bank customer and also the depositor's near and dear ones residing in India. Therefore, it is practical and wise to opt for an NRE account for safe and easy money transfers and deposits.

Why the NRI account is a must for those settled abroad?

Those Indians who reside outside India, or those who are of Indian origin but are not residing in India, are referred to as NRIs or Non-Resident Indians. Although they live abroad, it is a must for them to have an NRI account. They can open an account under any RBI authorized financial institution or bank which provides a number of services and benefits.

Some of the reasons why Non-Indian residents should have an NRI account have been listed below:

• One of the most important reasons why an NRI must have an NRI account is that it is ILLEGAL to have a residents saving account when someone becomes an NRI. It is against the law according to FEMA regulation. Thus, the person must find a new account to invest his funds in. This is why an NRI account plays a valuable role.
• Besides the viability of the account, an NRI has to manage money- the transfer of money, its conversion, its repatriation etc. All of this can be handled and managed by an NRI account.
• There are basically two types of NRI accounts:
1. NRE account- This is a non-resident external account, where the NRI can save all his earnings in foreign currency.  It gets automatically converted into INR, when deposited in the account.
2. NRO account- This is a non-residence account, in which both Indian as well as foreign currency can be deposited.
• Another interesting fact is that the NRO account is tax free. But the NRE is liable to tax payment of GOI @ 30%.
• One major positive feature of having an NRO account is that it is fully repatriable, while an NRE account can be repatriated up to 1 million.
• With the advancement in technology, those working overseas need not worry about sending money to their loved ones back in India. They can do so on the go, online, through their cells from anywhere and at any time.
• The family members back at home can withdraw this money sent to them easily.
• Not only can an NRI save and deposit money into their NRI account, but even friends or family can deposit money into that account which can be transferred by the NRI whilst staying in a different part of the world without the hassle of paying extra fees or providing legal documents.

All these above mentioned points provide enough reason for an NRI to open an NRI account. It will definitely make their and their family’s life much easier and simpler. The account helps maintain and support long distance relationships and bonds.

NRI banking facts that you need to know before settling abroad

In the course of the years there are a number of Indians who have settled overseas. They have either established their own businesses or built a successful career for them there and are sending money to their near and dear one in India.

With more and more transfer of money from abroad to India and vice versa, the NRI banking rules and regulations have evolved continuously. Today, there are a number of banks as well as non-financial institutions that have been authorized by the Reserve Bank of India (RBI) to deal in NRI banking. This means the maintenance of NRI bank accounts, aiding in money transfer, insurance as well as loans.

When it comes to NRI banking, Indian living abroad can opt to open the following type of accounts-

• Foreign Currency Non-Resident Account (FCNR) - Such accounts are meant for term deposits, with a time duration that can either be up to one year or even 3 years.
• Non-Resident External Account (NRE) - This account holds Indian rupees. Thus foreign money that is transferred to the account is converted to Indian money before it is deposited.
• Non-Resident Ordinary Account (NRO) – It is a normal savings bank account that is held by an NRI in the country.

Here are some facts that one should know about NRI banking in India-

1. An NRI bank account and all activity that is related to it can be handled by an individual who is living in the country, on the behalf of the account holder. The account holder only has to give this trusted person the power of attorney. But, the person who holds the power of attorney does have certain limitations. He cannot make gifts of the money that is there in the bank account and is also not allows to transfer money outside the country.

2. Another important fact that an NRI should know is that he can invest in shares as well as securities of companies and organizations that are Indian. In fact, an NRI can also invest in government securities. One can make such investments through their NRO/NRE account.

3. NRI’s should be aware that any interest that they earn on deposits made in their FCNR bank account is exempted from tax deduction under the Indian NRI banking tax law. Thus, they can make effective use of their FCNR bank account to build-up some savings.

4. NRI’s should be aware that any interest that they earn on deposits made in their NRO bank account is not exempted from tax deduction under the Indian NRI banking tax law.

NRI banking in India has a number of features that one should be aware of in order to take full advantage.

Why to create a FCNR account for your child when they move abroad

In the past years taking trips or settling down in foreign countries was a luxury that only the rich could afford, today a number of parents can think of sending their children to America, Britain or other countries to pursue higher studies or make a career for themselves. They generally take this life changing decision with the help of some savings or an education loan. Thus, the world today has literally become a global village, and many Indians do opt to pursue further education in other countries and settle down there for good. 

They do have parents or families back in India, which is why they continue to remain in touch with their traditional roots. Moreover, India has great investment options, including attractive property as well as stock prices. Thus, NRI’s find it financially beneficial to invest in property in the country, and play the field in the Indian stock market. Moreover, they also benefit from the attractive interest rates they can take advantage of by investing in fixed deposits.

In order to make good investments in the country or even when it comes to sending money to one’s parents or family, it is best for an NRI to hold and account in the country. It may be an NRE, NRO or FCNR account. One can also open all three accounts as each has a different purpose.

A parent opening any type of account for their child abroad, be it an NRE or an FCNR account, should first ensure that they are aware of all the rules and regulations that are set up for NRI banking by the reserve Bank of India (RBI). The RBI keeps making alterations and amendments to the laws, which is why one should keep themselves up-to-date in order to make the most of them.

What is an FCNR account?

An FCNR account is basically a term deposit, which means that it is a type of fixed deposit account which earns interest on savings.

Parents with children abroad, can open FCNR account for their offspring, so that their kids can start saving in foreign currency. It is highly likely that kids studying abroad take up side jobs and internships where then get paid. They can save this money in a term deposit and also earn interest on it.

Moreover, the Indian government allows deposit in the FCNR account in 6 different currencies, namely, the US dollar, Australian dollar, Euro, Japanese Yen, Pound Sterling and Canadian dollar.

One can definitely make the most out of an FCNR account with attractive interest rates.

Did you know the online money transfer is the quickest way to send money?

In the past years, transferring money from one bank account to another meant that one had to pay a visit to the bank, stand in a long queue and submit a cheque. In case of any mistakes on the cheque the money would fail to transfer and one would have to pay another visit to their bank office. The fact that it is time consuming is a drawback. But with the advent of computer technology, banks have upgraded and making transactions have now become faster and simpler.

With the introduction of computers and the internet, banks came up with a new way of making transfers and money transactions- Internet banking.

Internet banking involved online money transfer, which made banking extremely easy for those who had laptops and computer systems at their office and homes. But individuals who did not have access to computer systems had to still transfer money the traditional way.

Today, technology has become more advanced and internet banking cannot only be done through computer systems and laptops, but also through smart phones/tabs etc. As a result online money transfer and other online facilities have become the smart way of banking.

In fact, online money transfer is not only hassle free but also one of the quickest ways to send money to another person’s bank account. While, the traditional method of money transfer is a very slow process, online money transfer can be done in a matter of a few minutes, and the money is transacted into the recipient’s account in an extremely short period of time, generally within 24 hours or even lesser.
  
With online money transfer one can not only send money to recipients within the country, but can also transfer money to their family and friends living in other countries. While one does have to incur a small transfer fee, online money transfer proves to be much faster and efficient as compared to wire transfer.

In fact, a number of different online money transfer and payment services have come up in the past few years. These services are generally available in mobile apps, which one can register and use. Some these online money transfer services include PayPal, Paytm, Google wallet etc.

Therefore, in this time and day one should learn how to work with internet banking and various other phone apps that allow one to make transactions online. The world has become more and more competitive and everyone is living a fast paced life. Online money transfer makes life simpler and hassle free, especially when it comes to banking.

What is the fastest way to send money to India?

A lot of people living abroad have friends and relatives in India. Sometimes individuals living abroad may need to wire money to India for personal or business purposes. With the banking sector having a global presence in the current times, it has become quite easy to send and receive money to and from any part of the world. With more and more people working abroad the amount of money being sent to India from other countries has increased over the years.

There are several ways of sending money to India, but the fastest and the most popular ways have been mentioned below:

1. Online Transfer:
If one wants to send money to India, they can do so through online transfer. You only need some basic information about the recipient to do this. This includes the name, address and bank account details of the recipient in India. If you have internet connection and online banking facilities transfer of money to India can be done from the comfort of your own house.

2. Paypal:
Paypal is a money transfer service which allows one to transfer money easily and quickly. Paypal service is mobile friendly and the sender does not have to incur any transfer fee though the recipient is required to pay a minor cover fee at times.

3. Xoom:
Xoom is a money transfer service which has recently gained popularity among those NRIs who send money to India from the United States of America. This transfer service assures that the money is transferred to the recipient in India in just a few minutes. Once the amount has been transferred to the given bank account in India, a message is sent to the registered mobile number.

4. NRI/NRE accounts:
This is one of the safest ways to transfer money to India. To transfer money in this manner one must first open an NRE account.  Through this method one can basically deposit a given amount in say US$ and the authorized recipient in India will receive it in the bank account in Indian rupees. This kind of transfer may not be instant. It usually takes a few working days for a successful transfer but then this kind of transfer is not only safe but non-taxable as well.

The four most popular, quick and safe methods of transferring money to India have been explained above. Now the choice of the best method, depends on the urgency of the transfer and the purpose of the transfer as well. If the transfer is not urgent and one does not want to incur any transfer charges, they can opt to use NRI/NRE account transfer.

How to avoid getting a rejection on your home loan application

Everyone dreams of owning a home which they can call their own. But the reality is that with real estate prices rocketing sky high, this dream may take some time and lots of effort to come true. But a home loan can help one in fulfilling this dream.

A home loan is basically a loan which is given by a bank to the borrower to buy a house or a property. The loan amount sanctioned depends on several key factors including the credibility of the borrower, the collateral which will be deposited by the borrower and his/her credit history.

There are several simple techniques which a borrower may use to assure that his/her loan application is not rejected. They are-

1. Ensuring no faults in the paperwork: In order to apply for a home loan, one needs to submit some essential paperwork which involves identity proof, income proof, current financial statements and other statements as the bank may require. The simplest way in which one may assure that the loan is not rejected is by checking and re-checking their paperwork so that it is complete and is in accordance with the requirements of the bank.

2. Assuring that one has a decent credit score: Every bank considers the borrower’s financial history before even considering the home loan application. This is done by calculating one’s credit score.  One should maintain a credit score that is above 600, in order to ensure that their home loan is approved.
There are several activities which can negatively affect one’s credit score, including delayed credit card payments and outstanding debts. Even if your guarantor has a bad credit history or a backlog of payments the credit score suffers. So, one must keep in mind to that they have a respectable credit score for a quick home loan apporval.

3. Stability of income: To assure that the loan is sanctioned one must be able to prove to the bank that they have a reliable and a steady source of income.  A new job or an unreliable one may lead to rejection of the application.

4. A proper location and a clear land title: A bank will always assure that the property that one is planning to purchase with the loan amount has a clear and a well- marked title. This is to ensure that there is no dispute regarding its ownership in the future. This is a basic criterion which must be fulfilled.

If one fills in their loan application by keeping the above points in mind, their loan application will surely not get rejected.

Reasons why health insurance is a necessity today

Good health is the key to a happy and successful life. But with a hectic and stressful schedule and unhealthy lifestyle most individuals are not very fit. One often avoids dealing with they own health issues. Considering all these factors, it becomes essential that one has health insurance as it is as basic as having a bank account or being educated.

Hospital bills for very minor to major ailments can put a strain on one’s finance. Sometimes medical bills hamper the savings of an individual. Getting quality and timely treatment for cure can also become a major problem due to lack of finances. All these problems can be easily solved by having a health insurance.

Having a health insurance will assure that an individual and his loved ones have access to quality healthcare in case anyone suffers from an ailment at any given point of time.  A health insurance covers medical bills and in lieu of this one is required to pay an annual premium. The sum depends on the health condition of the insured while the policy is made, the total amount of coverage provided and the scheme that the individual opts for. The following expenses are usually covered under a regular health insurance scheme:

• Pathological tests and other investigations prior to hospitalization
• Ambulance costs
• All hospital costs including room charges, consultation fees, charges for various procedures performed, cost of medicines, charges for medical tests and investigations including blood tests, scans and any other form of diagnostic tests.
• Charges incurred post-hospitalization for recovery of the insured individual, which includes cost incurred for investigations, medicines, procedures including physiotherapy and other such treatment usually for up to two months post-hospitalization.

With healthcare becoming more and more expensive each day, hospitalization may cost a person a few lakhs and this may severely affect their savings and may even lead to debt. This will negatively affect one’s financial condition. Here the role of health insurance becomes important. By paying a given sum to the insurance company every year one can ensure that when they fall sick and require hospitalization their medical bills are taken care of by the health insurance company.

In fact, there are many health insurance schemes that provide cashless benefits to their insured customers. These companies have direct tie-ups with several hospitals and so the company pays the bills without one requiring to spend even a rupee to clear the hospital dues.

Based on the benefits mentioned above one must consider getting a health insurance if they do not already have one.

Here is how to use your ATM card smartly

Almost everyone have ATM cards these days. It is commonly used for making payments and paying bills. The main benefit of using ATM cards is that one does not require to keep cash with them. This means they one saves time by not waiting in long ques to withdraw cash from the bank as well. ATM cards can be used to make online payments and withdraw cash from ATM machines which are found almost everywhere today.  Most people have one or more ATM cards, but do not use it efficiently.

There are a few ways through which one can use his ATM card efficiently.

1. Increase the credit limit of the credit card:
As a customer of the bank you may ask the bank to increase the maximum credit limit on the credit card. This will help make more withdrawals and purchases in a month without immediately paying the amount spent.

2. Always claim rewards:
As a customer one does get several advantages or reward points when some specific expenses are made, depending on the terms specified by the financial institution. The benefits may involve availing higher discounts on purchasing by using collected reward points, access to airport lounges or even en-cashing reward points. As a smart customer one must try to use their credit card in a manner which helps them accumulate these reward points and avail greater benefits.

3. Pay dues on time:
Making complete payments on one’s ATM card and clearing existing dues assures that you do not have to pay any late charges. If you think you may not remember to clear the credit card bill on time, one may also opt for direct deduction of the bill amount from their account to avoid late payment charges.

4. Check your credit card bill:
An intelligent and a smart customer will always check his ATM card bill before making any payment. One should carefully review and scrutinize their credit card bill each month to assure that they are only paying for what they have spent.

5. Secure ATM card information:
The internet is filled with hackers and scammers who may misuse debit or credit card information. To avoid such a mishap always assure that when you are making an online payment it is authenticated and secured. In case of any anomaly one should immediately contact their bank.

By keeping these little tips in mind and following them, one can smartly and efficiently use their ATM card and avail maximum benefits and perks as a valued customer of the bank.

Did you know how the education loan will benefit you?

Education plays a pivotal role in the success of a person. Individuals who opt for graduation and higher education may often find it difficult to self-finance their studies. It is in this situation that an education loan comes handy.

Education loan is a kind of loan which is given by banks to students who apply for it after taking their credibility and merit into consideration. An education loan is given to parents, students or the spouse of the student for higher education. Higher education here maybe defined as education one seeks after higher secondary level. 

An education loan usually covers the tuition fees, examination fees, laboratory charges, hostel security, caution money, travel expenses and approximately 90% of the total expenses which need to be incurred by students for the completion of a course.

Education loans have certain benefits. They are as follows:

• Under section 80 E of the Tax Act one can file for an income tax deduction in case they have taken an education loan. (the deduction will be on the interest rate and not the principal amount)
• Approval of a student loan or education loan means that though a person may not have the required cash to complete his/her higher education, he/she may be able to complete the course. This is because the course fee is paid by the bank and the borrower who is a student will start the repayment of his/her education loan only after completing the course and obtaining employment.
• Another important benefit of a student loan is that the student does not have to depend on his/her guardian for the course fee and this does not become a financial burden on them.
• Approval of a student loan to a certain extent depends on the merit and capacity of the student himself. This means that if the borrower is academically meritorious it will be helpful in getting the loan sanctioned.
•  If you are a female student then banks offer an education loan at a relatively lower rate. The interest rate is usually 0.5% lower for a female student than her male counterparts.
• Another major advantage of student loans offered by several banks is that there is a holiday period of anywhere between 6-12 months after the completion of the degree before the actual loan repayment begins. Though, if the borrower is able to get a job early he/she may start the monthly EMIs earlier.

Education loan is a blessing for those individuals who aim to pursue higher education but who do not have the financial means to fund it.

All you need to know about corporate banking

The term corporate banking has recently gained much popularity in the banking sector of the country.  Corporate banking refers to customized and tailor- made facilities, which a commercial bank provides to large firms, listed companies or corporations who happen to be their customers.  Such corporate customers enjoy certain special facilities and services from banks, because of the large quantity of business they provide. The most important function of corporate banking is the management of working capital of the corporation that is a customer of the bank.

The main point of difference between retail banking and corporate banking is that in case of retail banking the bank deals with an individual customer and his/her individual account, but in case of corporate banking the bank is concerned with multiple accounts of the listed company or large firm together with the accounts of its employees.

The following are some of the major features of corporate banking:

• Commercial banks provide foreign exchange transaction facilities to its corporate customers. This involves currency transactions and services involving foreign investments.
• Insurance facilities are provided by commercial banks to the staff and management of the corporations apart from insuring several activities of these large firms.
• Banks provide financial advice to corporations regarding merger, taxation, expansion of functions and other such issues.
• Financing existent and new projects of the corporations by sanctioning loans, is another facility which a bank provides to its special corporate customers.
• Banks also provide regular audit facilities to large firms to keep the financial statements of the corporation in order.
• Asset custody is another important service provided by banks to corporate companies. The bank manages the bank accounts of its corporate customers. This often involves issuing status reports of the financial state of these large firms on a quarterly or annual basis.
• Banks also often buy shares of its corporate customers so that the firm is able to enjoy greater liquidity required for its functioning.

Corporate banking is one aspect of the banking sector which is gaining greater importance each day.  Corporate banking is a crucial requirement in the running of a large firm or a listed company because proper management of finance is the key to a successful company. It ensures that the business runs smoothly, helping in short run as well as long run expansion and greater profits of the company.

Corporate banking services are a basic necessity for a large company to manage, invest and diversify its existing monetary assets. It makes every day money management much easier and more effective for the company and its owners.

How to decide which banks will give you the best loan?

Banks are financial institutions who perform several key functions. Among these an important one is providing loans to its customers. An individual will opt for a bank loan when he is in need of money. Loans are of different kinds and depend on the purpose of the loan and the terms on which a loan is provided. The different types of loan include a personal loan, home loan, car loan, business loan or a secured and even unsecured bank loan. There are a variety of banks in the country that provide loans.

In order to decide the bank that provides the best loan deal, there are a few factors one must consider before-

• Minimal paperwork:
 Most people who seek a bank loan for various purposes are aware of the amount of paper work involved. This may require a lot of time. But again, certain banks are customer friendly and approve loan applications with minimal paperwork. Those banks who seek only essential paperwork before approving a loan may be opted for.

• Quick processing:
It is seen that there are certain banks who are quick, efficient and transparent while providing loans while others are not so. It is always better to opt for a bank loan from a bank which has transparent processing to avoid favoritism and partial treatment of customers.

• Repayment options:
From the point of view of the borrower a bank which provides simple and customer friendly repayment options is a bank which provides the best loans. It is seen that certain banks are more flexible with their repayment options, which means that the time provided for monthly payments is longer or the amount to be paid each month is slightly flexible. Here, the late payment penalty is also a factor. A bank which charges less penalty for late submission of the monthly EMI is better than a bank which penalizes the customer heftily.

• Interest rate:
A bank which charges a lower interest rate is better than a bank that charges more, assuming other factors like the principal amount, time period and collateral provided is the same. Often when borrowers consider different banks before seeking a loan they discover that certain banks are better in terms of loan provision because they charge a lower interest rate. Though, the difference may not be much it may matter a lot to the customer when the total amount of interest to be paid is considered.

Before opting for a bank loan, one must definitely consider the above factors to assure that they choose effectively.

Secured versus unsecured personal loan and interest rates

A borrower must always be aware of the kind of loan he/she is applying for before opting for it. A smart borrower will definitely be aware of the different varieties of loans available before deciding upon one which is most suitable for him or her.

There are basically two kinds of loans:

1. Secured loans
2. Unsecured loans

Secured personal loans:

Secured personal loans are the most common kind of loans opted for by borrowers. In case of such loans the borrower provides a collateral as a security to the lender. A collateral is anything which is valuable and which owned by the borrower. This could be some form of land or property, vehicle or even gold.  Collateral reduces the risk of the lender because it makes it possible for the lender to recover the money in case the borrower is unable to repay the loan. Again, because the lender has something of value as security, relatively lower personal loan interest rate will be charged. The lender may also be willing to loan a high amount because he has some security which provides a sort of backup in case the borrower is unable to pay back the full loan amount.

Unsecured personal loans:

When the lender lends a borrower some money without any collateral or security at his own risk, such a loan is an unsecured personal loan. In case of an unsecured loan the lender charges a high interest rate because there is risk involved. If the borrower is unable to pay the loan amount back partially or totally then the lender’s loaned amount will not be recovered. This means that a lender takes more risk in case of providing an unsecured loan. So, naturally a high personal loan interest rate will be charged.

The main points of difference between these two types of loans are:

• In case of an unsecured loan the loan amount is usually smaller and limited, but in case of a secured loan the amount may be quite high as a collateral is provided.
• For a given amount to be borrowed, a very high personal loan interest rate will be charged in case of an unsecured loan as against a secured loan.
• From the point of view of the lender higher risk is involved in case of an unsecured loan.

One can either opt for a secured loan or an unsecured loan, depending on the type of security they have. A number of business men prefer to obtain secured loans to expand their business. They generally acquire the loan against gold or land as security.

Business Loan Checklist: How to get the best loan rates

Every business needs cash flow to continue and grow steadily. Sometimes it may become difficult to have sufficient amount of cash available. In such cases, an entrepreneur can always opt for a business loan. A business loan assures this cash flow for day to day requirements of the business.

The following points can help a borrower secure a loan at a good rate:

• Keep documentation ready:
Most financial institutions seek to lookout for the business plan of the entrepreneur to check the credit worthiness of the loan.

• Build loan credibility:
A credible credit history always helps in getting business loans at interest lower rates.  A credible business history will go a long way in obtaining unsecured business loans. A decent credit score will help the business in obtaining a bank loan. By paying your credit card bills on time and by timely loan repayments one can assure that their credit score is good.

• Regularity of cashflow:
A regular and continuous cashflow is indicative of a healthy well-run business. So, if as an entrepreneur you are able to show this on then business balance sheet, you will successfully increase your chances of getting a good deal on the loan.

• Prepare a detailed plan on how the loan will be invested:
Before lending any loan amount to a business, any lender will definitely be interested to know about how the money will be used. This is because the lender wants to ensure that they will get their money back along with the interest.
Before going to a bank to seek a business loan, one must have a detailed plan about how they want to use the money to expand the business. Expansion of business, buying fixed assets, administrative use are some ways in which the credit can be fruitfully used.

• Being well prepared:
As an entrepreneur who is going to apply for a loan one should be well prepared with information about their own business. If a borrower can answer the bank’s queries satisfactorily they will be assured that you know what to do with the money. This will make them more confident about your venture. Swift and prompt answers that are well thought out, will definitely impress the lenders, and one may be able to secure a good deal on their business loan.

The above points are simple yet effective ways by which entrepreneur can assure that his business gets a loan from a bank at a good rate. This will help one run a business smoothly and carry out the expansion plans they have without any financial glitches.

Are you aware of the features of the personal loan calculator?

One of the most important functions of a bank is to provide loans to its customers. Loans are of various kinds depending on the reason for which they are being taken such as home loans, business loans, car loans and personal loans.
 
A personal loan is a loan which is given to an individual to meet his financial needs for personal reasons, such as funding a wedding or a vacation or even supplementing the current income. Each kind of a loan is provided at an interest rate. This interest rate is calculated by considering several factors making its calculation slightly tedious.  A personal loan calculator simplifies this task.

A personal loan calculator is a tool which helps you in calculating the EMI for a given loan amount, which depends on several variables. Before using the calculator, one should know about the loan amount required, the tenure of the loan and the interest rate which you will be able to pay on a monthly basis. After knowing these three answers one will be able to use the personal loan calculator efficiently.

The main features of a personal loan calculator are as follows:

• Two important areas need to be considered while opting for a personal loan – the monthly interest rate and the EMI or the equated monthly installment. It is relatively easy to calculate the monthly interest rate but calculation of EMI is a little difficult. The personal loan calculator helps in calculating both.

• This tool will help in calculating the EMI amount accurately. This is because the calculation is precise and based on the variables entered into the tool by the prospective borrower.

• Using the tool will definitely prove to be more time saving than using pen and paper, which will take a lot more time to reach the final result. Moreover it may or may not be as accurate as the one provided by the calculator.

• This calculator may be used again and again to test various combinations till one arrives to the result that suits them the best.

• A personal loan calculator is a useful tool because it will help one know about the amount they need to set aside each month to pay the EMI. One may use this tool even at the planning stage before applying for the loan, as the calculator is easily available online.

It is simple to use a personal loan calculator. One should have some information including principal amount, tenure of the loan and interest rate. By feeding this data into the calculator the EMI can be obtained.

What is a quick loan? Opt for a personal loan today

A number of banks offer their customers the option of quick loans. But what are quick loans? How do they work? Are they any different than other types of loans? Well, quick loans are just personal loans, but they are approved and sanctioned much faster. While other types of loans such as a home loan, car loan or a property loan do take quite a bit of time for approval and sanction, quick personal loans may be approved within a day or two.

Thus, a quick loan may be opted for in case of a financial emergency. One may opt for a quick loan if they urgently require funds for their business or money to pay medical bills. Quick loans are generally unsecured personal loans. With the introduction of quick personal loans one does not need to take loans from their friends and family members during any financial emergency. They only need to approach their bank for help.

There are various types of quick personal loans that one can opt for, such as-

• Same day quick loans- Such a loan is approved and sanctioned on the same day of application. This loan does not involve a credit check and only limited documentation is needed. But, in case of same day loans the interest rate charged is quite high as compared to other personal loans.
• Payday quick loans- This type of loan is for a short term and is unsecured. It is sanctioned within hours of application. In fact, one can apply for this type of a quick loan online and expect approval within 48 hours.
• Credit cards- One of the most used forms of quick loans are credit cards. In case of credit cards, one does not even require documentation in most cases.
• No-credit check quick loans- For individuals who do not have a good credit history and score, a no-check quick loan is a great option. But, in case of this type of quick loan the rate of interest charged is extremely high.

Some advantages of quick personal loans are-

• Quick approval and sanction of the loan.
• Credit history and score is not checked in most cases.
• The documentation required is minimal.
• The loans is unsecured
• One can apply for it online
• It is also given to self-employed individuals
• A quick loan can also be sanctioned to a customer who does not have any prior relationship with the bank.

While quick personal loans are definitely a boon during the time of need, one cannot ignore the high rate of interest that it comes with. Moreover, they are generally short term loans and have to be paid back fast. One should apply for a quick loan only if he can pay it back in time.

Calculate the best rates with the FD calculator

Banks are financial institutions which provide a number of services to their customers such as accepting deposits, providing locker facilities, foreign exchange services, providing loans and overdraft facilities.  These deposits are of various kinds such as savings deposits, recurring deposits, fixed and current deposits. The deposits are categorized based on the rates of interest provided.

Fixed deposit is a financial instrument which is provided by a bank to its customers so that they are able to obtain interest earnings, which are more than those obtained from keeping money in a regular savings account. In case of a fixed deposit, the interest rate provided by the bank is higher because the money must remain untouched till the given maturity date. A fixed deposit calculator or an FD calculator may be useful in obtaining the best rates, if an individual is planning to use the fixed deposit facility to assure safe investment.

A question may arise as to why opt for fixed deposits when other financial instruments are available. The following points indicate the benefits of fixed deposits:

• Fixed deposits are the safest modes of investment.
• Fixed deposits assure a fixed source of income. Mostly the interest rates are compounded quarterly and so those who want regular earnings can use fixed deposits as a source of income. It is a popular mode of investment among retired individuals.
• Fixed deposits encourage the habit of saving which is beneficial in the long term.

A FD calculator is basically an instrument which enables one to calculate the return on the principal amount invested. Now, the return or the rate of interest depends on several factors. A FD calculator considers all these factors and then calculates the best rate possible. The factors affecting the interest rates are:

• Age of the customer: a higher rate of interest is provided to senior citizens. Thus, they can save as well as earn by investing in fixed deposits.
• Principal Amount: the interest rate depends on the amount initially invested.
• Period of deposit: banks provide higher rates of interest to customers who invest in fixed deposits for a longer period of time. There are also term deposit for 5 years and even more.

Based on the factors stated above a FD calculator, calculates the rate of interest which can be provided and also the end of the term earnings of the customer.  Thus, it a very useful device which calculates the end of term and annual earnings of a customer considering all the variables, assuring that the investor benefits through a FD.

Take advantages of these features of the Fixed Deposit Calculator

Fixed deposit plays a very significant role for many who want to save. It is an effective instrument used by investors for a good one time return. It brings in a good sum of money, which includes the money saved and the interest earned on it at maturity.

A fixed deposit calculator is used to calculate the interest that one will earn on a particular sum for a certain period of time. Fixed deposit calculators can be found on the website of most banks. It is quite an efficient tool, and is convenient to use. It simplifies complicated calculations for customers, and allows them to make an effective comparison of the interest rates that are being offered by various banks.

So the various advantages of the fixed deposit calculator are as follows:

• Necessary Information
Before investing a huge amount the customers/investors need assurance as to what return they will be getting after the maturity period. The fixed deposit calculator will provide them with necessary information such as the total interest they will earn on the amount that they have fixed. It is very important to make an account of the necessary details of a fixed deposit before investing in it.

• Hassel free
For many customers/investors calculating the fixed deposit interest rate offered by various banks becomes extremely difficult. The fixed deposit calculator allows them to calculate the interest that they will earn on the sum they are investing with just a click of a few buttons. One only needs to enter the required figures that the calculator asks for to get the complicated math done.

• Comparison
With the help of the fixed deposit calculator, customers/investors can compare the interest rate offered by a number of banks for a particular term, and decide which bank will provide them with better benefits. Thus, they can effectively invest in the bank of their choice.

• Self-reliant
Very often a prospective investor may need to take the help of a bank employee to figure out the details of the term of a fixed deposit. This can prove to be quite time consuming, as one has to go to the bank, wait for their turn and on occasion even pay a couple of visits. But a fixed deposit calculator allows him to find out details on his own at any time.

Thus, the fixed deposit calculator is a convenient tool which will help customers/investors make their own choice and take independent decisions. Their investment will be their choice. The risk of confusion is reduced. The customers/investors feel satisfied and make investment which is best suited for them.

Consolidating multiple Demat accounts: all that you need to know

Demat account stands for dematerialised account. They are usually opened by an investor when they are registering with a sub broker or an investment broker. It implies that the shares and securities are held or taken possession off not by the investor physically but electronically in a dematerialised account, that is, a demat account.

In simple words it is an electronic savings account found in India.

Advantages of a demat account-

• A major benefit of using a demat account is that instead of holding shares on paper, one can save all their shares in electronic form and keep a track and account of them with less fear of losing the records or theft of stocks etc.
• Storing records electronically, reduces the difficult task of handling heaps of stock certificates as well.
• A demat account is also considered as an absolute must when it comes to trading in stocks and ETFs.
• Another plus point of a demat account is that it does not attract stamp duty.
• The investor becomes the legal owner of the securities once it is credited to the person's account and there isn’t any requirement to pass it through the company's registrar.

How to consolidate a demat account?

 The account holder requires to pay a visit to the DP office or branch and submit the necessary forms and documents if he wishes to consolidate his demat accounts.

 He will require a delivery instruction slip or DIS. It is like a cheque leave that sanctions transfer of securities from one demat account to another. This DIS needs to be filled in and signed before it is handed over to the depository participant’s office.

Benefits of consolidating demat accounts:

 Having separate or multiple demat accounts implies that one has to incur a large fee with every transaction made. But if the accounts are consolidated, the transaction fee for a single account is not much. This way a person can save up on annual fees and charges on several demat accounts.

 Dealing with multiple accounts means dealing with a lump sum of paperwork. This hassle free task can be taken care of with the consolidation of demat accounts. This eventually also makes tax filing easier.

 Consolidating demat accounts is extremely easy and simple.The entire process becomes an off-market transaction and all that is required is a delivery instruction slip or a DIS which includes the details of the transfer value and the destination account.

 If a broker has only one account with a DP, only a single request form is needed. Joint accounts require that this slip be signed by all owners. Many DPs usually charge fees for transfer of securities. A major benefit of joining accounts in the name of a single person is the tax exemption one can apply for.

Consolidating demat accounts will prove to be quite beneficial in the long run and should be considered to make transactions more efficient.

Do you really need to use the recurring deposit calculator for your term deposit?

In case of a term deposit, a deposit is made to either a bank or financial institution or a credit union or even a building society for a pre-determined period of one to five years.

There are two types of term deposits: Fixed Deposits (FD) and Recurring Deposits (RD). In case of a fixed deposit one deposits a particular lump sum amount for a certain period of time with the bank.  While the latter is meant for borrowers with regular incomes so that they may be able to invest money on a monthly basis. In case of a RD, a return is acquired from the monthly instalments that are made by an individual.

One should seek the help of a recurring deposit calculator to calculate the interest returns on one’s savings. A recurring deposit calculator helps one to calculate these “returns”. Here is why one should use a RD calculator-

• Using a RD Calculator will help one know how much they will receive once the maturity period has been achieved.
• A recurring deposit calculator will help one calculate the total savings they will make on the given interest rates.
• Another benefit of using a RD calculator is that it allows the investor to save money. In some cases any amount can be saved at any time.
• It may also be used to make an approximate estimation of how much an investor will be able to save each month. Deciding on a particular amount can help an individual make several financial plans and decisions, which may include investing in a home or car.
• Quick calculation of finances with the help of a recurring deposit calculator can help investors keep a record of their FDs and RDs effectively. In this way they can keep a track of the growth and stability of the investment that has been made.
• Interest rates differ from bank to bank, but a recurring deposit calculator, will effectively calculate the interest amount that one will receive on maturity of the term deposit.
• More often than usual, recurring deposit accounts are also opened for children or by senior citizens who may make calculation errors or find it difficult to do complicated math. A recurring deposit calculator is a life saver in this case.

One should invest in a recurring deposit or a fixed deposit only after obtaining information about interest rate offered by different banks and comparing them effectively. A recurring deposit calculator helps one compare rate properly without any calculation errors. One can find a reliable recurring deposit calculator online or on the website of any bank or financial institution.

Did you know you can enjoy these benefits with the online mobile recharge?

In the present global scenario, everyone has become tech savvy. It is important for one to become familiar with the online world of mobile recharge. In fact, the main aim behind all online recharge services is to facilitate consumers with fast and smooth transactions and recharges.

Online mobile recharge is easy and efficient, moreover it offers several benefits such as-

• Recharging mobile phones can be troublesome when it comes to people who have a tight schedule. Thus, online mobile recharge makes it very easy to make online phone bill payments, while seated in your office or comfortably back at home.
• What one does not realise is that there are a lot benefits involved with online mobile recharge. One major benefit of online mobile recharge is that it provides a variety of prepaid mobile services at very convenient economic charges for calls, SMS, Voice mail service, call conferencing etc.
• Online recharging comes with a package. The consumer can simply select the package that suits their purpose the best. Several deals are at discounted rates as well.
• Online recharge payments also offers coupons, vouchers, discounts and several other forms of privileges, which may be redeemed by customers from time to time. Many online mobile recharge sites offer 100% cashback on their first recharge or give out free recharge coupons as well.
• Another important fact to note is that online mobile recharge is a service that is provided 24/7.
• Online services are also very easy and accessible. No matter where one is, as long as one has a cell phone and internet connection they can get a recharge done. One should also ensure access to a credit card/debit card/net banking/e-wallet in order to get a recharge done online. The entire transaction is a step by step process and extremely easy to do.
• Online recharging also makes it very easy for a person to track and keep a record of all recharges that he or she has done.
• Sometimes due to busy schedules, one may forget to recharge his phone and in case of an emergency, one cannot make an urgent phone call. It is in such a scenario a quick and easy online mobile recharge is extremely handy and comes to the rescue.
• One can bid farewell to long queues with the introduction to online mobile recharge services. No more wastage of time and energy.

For all these aforementioned reasons, it is very practical and feasible to opt for online mobile recharge. It makes life a little bit easier, especially when one has a busy schedule.

Online application: when you need to apply for credit card urgently

Credit cards are like a contractual agreement that takes place between a borrower and a lender. The bank which is the lender provides or loans money to the borrower with the trust that the money will be reimbursed later within the time period agreed upon. Some people argue that credit cards create problems, but there are a lot of benefits to credit cards if one uses them well. There are many reasons why one should apply for a credit card. Some of them are given below:

For student loans
Loans can be taken against a credit card. Apply for one when in need of a student loan. Education comes at a high price and a credit card may come handy during admission.

For home loans
Another major investment for a better future and improved lifestyle is a home.  Houses do not come at cheap rates, but one cane secure a home loan easily with the help of a credit card. Apply for it today and start maintaining a credit history. 

For car loans
Cars are getting expensive day by day. Cars are considered as a luxury commodity and purchasing a car requires a lot of money. For this reason once again a credit card will help secure a loan if necessary.

To land a job
A credit card opens doors to several job applications. It is surprising but true. An individual with a credit card and a good credit history definitely comes across as reliable and responsible to a prospective employer.

To take a vacation
Busy schedules demand more time spent on work and less on family and pleasure. For this reason vacations become a necessity for every family. Breaks are also required to rejuvenate. An international credit card will help one make purchases and pay bills when holidaying with family and friends.

To make online purchases
For all the shopaholics out there who purchase off the Internet, a credit card comes extremely handy because there are many shopping websites that do not offer the cash on delivery option. This does not necessarily imply purchasing accessories and clothes but also the purchase of airline tickets or hotel bookings etc.

One should note that large amount purchases can be made at 0% interest using credit cards. Getting hold of a credit card and its use will reflect upon the credit history as well. This will make one eligible for certain perks and benefits. Hence, credit cards are essential tools that gives plenty of economic benefits and opportunities for a better life style.

First time loan applicant: tips to get an approval on your car loan application

Getting a car loan is not easy. A car loan is offered to only those who are able to prove themselves as loan worthy. Sometimes it may become difficult for loan lenders to give out loans to some prospective borrowers because of their financial background. Some things that one should keep in mind when applying for any loan especially when it comes to a car loan are given below:

1. Calculate a budget
 Before purchasing anything, it is important to know if one will be able to afford it or not. Therefore, the first point is to establish affordability or know the budget. This implies that the buyer should calculate their income after considering the tax deductions to find out how much is actually earned, how much money is used for living expenses, that is, for basic sustenance. The money that remains, may be considered as savings and spent on other goods and services. Efficient budget planning will create a good impression on lenders as it will indicate how responsible the borrower is.

2. Know your car
Another factor to take note of when applying for a car loan is the overall cost of the car. This includes additional instalments and additional prices, that is, expenses for the fuel, insurance and maintenance. Knowledge regarding these matters may improve chances of approval.

3. Pay a deposit
When applying for a car loan it is advisable to make a deposit even if it is not necessary because this can be beneficial. It definitely means that one will have to worry about lower repayment every month, and it also creates a good impression on the money lenders.

4. Know your credit account and clear debts
The credit profile reviews how an individual uses credit and how they make monthly payments. This shows if a borrower is a reliable or not. So it is better if one clears off all debts they might have, this will increase their chances to get approved for the car loan or any other future loans.

5. Trade car (for old car owners)
Owning a car for more than four years means that there is a chance for them to have a higher trade-in value. It is even more beneficial if all the deposits have been cleared off. If the trade-in value is lesser than the amount the person owes the bank, in that case the person should keep the car or the vehicle for a few more months or could use savings to settle the existing loan.

6. Know the best deal
Once the above mentioned points have been taken care of - the budgeting, calculating and credit checking, the final step is to find out the best car deals showrooms are offering. In the competitive global vehicle market, there are a lot of appealing offers. Compare discounts and offers in order to get the best deal in the market. It is also advised that one should look online for low interest rate deals before actually going to a dealer.

Many banks and financial institutions offer a car loan today, thus there are plenty of options to choose from.

Reasons you need to avoid unauthorised lenders

Unlicensed or unauthorized moneylenders are those lenders or traders or people or groups or firms who loan money illegally or outside of the law. They maybe referred to as loan sharks or unlicensed traders or lenders. These lenders are unsanctioned by the government and therefore by law. These people are best avoided for they can cause a lot of problems or harm naive citizens, who are not aware and may borrow money from them.
One should take heed of some of the consequences of borrowing money from these illegal lenders. They are:
• These so called loan sharks charge high interest rates on the loan amount. Therefore it is practical to go to a legal money lender or to a bank where one can find appropriate, legal and low personal loan interest rates. A higher interest rate can make it more difficult for one to repay the amount.
• Another fact to note is that if one gets involved with unauthorized money lenders, that person will not get access to the Financial Ombudsman services or the Financial services Compensation scheme, nor will they be covered by the Payment Protection Insurance or PPI services.
• They mistreat and harass the borrowers until they pay back the funds. This can cause harm not only to the borrower but also to the borrower’s family and friends. If someone is unable to repay the loan, these loan sharks may take the person’s possessions or belongings or destroy them.
• Suing them leads to no avail as these lenders con borrowers constantly and are extremely equipped in escaping the hands of the law. A law suit only results in further loss and waste of time and energy.

• Most importantly, borrowers do not receive any protection by signing any form of contract nor are they provided proper terms and conditions in some cases. Hence, the borrowers do not get any guarantee on such deals or contracts.

• Previously, these loan sharks and money lenders were considered to be involved in illegal or extra-legal activities but in recent times they seem to have even become a part of the criminal underworld and coming into contact with such men can lead to dire consequences.

The above mentioned reasons should provide enough cause for people to avoid illegal money loan givers. The repercussions of getting involved with such illegal lending can be bad. When it comes to borrowing money, one should always go through banks or financial institutions. They offer competitive personal loan interest rates, and authentic legal papers to borrowers. They also expect timely returns in the course of the loan term that has been decided.

Protecting yourself from fraud when using credit cards

A credit card is used by a card holder to pay for all the goods and services that he purchases or enjoys by virtue of his salary in the bank account. Credit cards have become a valuable asset to all. Thus, it is a very important card which should be kept with optimum security for if it goes into the hands of the wrong person, they might misuse it, while the consequences will have to be paid by the victimized original credit card owner.

Some measures that one can take in order to protect their credit card from miss use are given below:

• It is very difficult to shield all our private and personal information but it is important to take some precautions when we go online be it for shopping or for net banking or other purposes. Here are a few things that you can do to protect yourself when shopping online-
*Try to clear all logins and passwords.
*It is advisable to pay via credit cards rather than debit cards as they are guaranteed under the federal law.
* Avoid providing information to any fake unrecognizable company advertisement that asks for personal information.
*It is better if one secures their email and verifies the mailing address whenever possible with the post office in order to avoid the credit card thieves from changing it. This prevents any notice from reaching your residence.

• A small way to avoid the loss of credit card is by keeping it in a different more secure place rather than your wallet so that even if the wallet gets stolen, the credit card remains safe.

• Report any kind of questionable purchases that may have been made by the credit card that you are not aware of.

• Monitor all the bank and credit card statements and reports regularly so that any unfamiliar purchases can be noticed immediately and be reported.
If someone has already become a victim of credit card identity fraud or identity theft where one individual card holder’s ownership has been assumed by some other individual, it is important to know that that person whose identity has been stolen is entitled to free credit monitoring.

• Avoid keeping any form of private records or statements. These records should be disposed as soon as possible. Most preferably they should be shredded, so that they do not fall in the wrong hands.

It is very important to take such preventive measures while handling credit cards for precaution is always better than cure. It is better to be safe rather than sorry.

What are the different tools that will help you get an ideal personal loan?

A loan that is unsecured, in other words a loan that is borrowed by individuals from a bank or a money lender without securing it against any asset like a car or a house is called a personal loan and is also known as an unsecured loan. In order to get an ideal personal loan, there are some things or tools that a person should refer to and keep in mind before applying or during the application of a loan.

Loan tools help calculating the personal loan effectively. One can also make comparison between the interest rates offered by different banks with the help of loan tools. They are-

• Loan calculator or an EMI calculator the personal loan EMI calculator is very efficient in comparing different types of loans. EMI stands for equated monthly instalment, which is the fixed amount that is to be paid to the bank or any lending institution until the entire amount loaned is completely paid off.

The personal loan EMI calculator makes complicated calculations easy and simple.

• Budget calculator- it is very difficult to keep track of all the monthly expenses that one has and this is where a budget calculator comes in handy. The budget calculator breaks down the person’s finances and then offers tips to help the person make optimum utilisation of his total income.

• Credit Report-Several credit bureaus gather data and information regarding a person’s credit history to create credit reports on the basis of which the money lenders or banks often determine whether they can sanction a loan or not and how much interest rate should be offered on the loan sanctioned. These reports are available online and even at different credit report companies.

There are other ways of acquiring an ideal personal loan. A person may not receive the same rate as advertised by a company or bank as it is based on individual credit scores. A person may apply for the best rate loan in order to find out the rate of interest he is eligible for. Opt for a best rate loan that doesn’t use risk-based pricing. If there’s any way to repay the loan early, one should opt for the best-rate loan which does not have any early repayment charges.

Borrowers may also take help from debt advice agencies or get official help from the pension’s ombudsman service, which will take into consideration all the complaints that the person might have regarding his or her loan. The agency will also give suggestions as to how to repay the loan and effectively use the tools.