What are the beneficial features of internet banking through your phone app?

It is the age of the internet. It has permeated every sphere of our lives, and so it should not come as a surprise that people can conduct their financial activities from the comfort of their homes. Most of the banks have their own apps, and people can send or receive money, check their bank balance and also perform other functions using such an app. These apps have grown in importance over the last few years. It is no longer required for a person to visit a bank to perform any financial activity. All they require is a hand-held device and an internet connection. So, it is without a doubt that mobile banking has made life simpler for the common man.

The various advantages of an internet banking app are:

• Such an app allows you to perform most of the tasks that you generally perform at a bank. You can transfer money from one account to another, view account statements, locate the nearest teller machine, set up alerts that will notify you of payments that need to be made and also check your balance. Furthermore, you can even use your smart phone’s camera to deposit cheques, transfer credit balances, and invest your money or pay bills.

• One of the greatest advantages of using an app is that they help to keep your finances in check. You are able to monitor your account on a regular basis, and this enables you to plan for your future expenses. You can use these apps to set up recurring bill payments which will ensure that a certain amount of money is automatically deducted from your account to be paid towards your expenses.

• Mobile banking apps have made life simpler for working professionals who do not have the time to go to the bank and waste valuable work hours. It has also made life easier for the elderly and the physically handicapped who have to bear unnecessary troubles to visit a bank branch and get their job done.

• Internet banking is secure. Do not worry about your personal information getting leaked as long as you use a legitimate app that is downloaded from a credible website. Banks use encryption that protects your identity, bank details and other information. The data that the mobile app contains is secured with the help of passwords and other I.D. checks. This will ensure that nobody can misuse the app when if you lose your phone or just if your device gets stolen.

Thus, we can see that internet banking has become an intrinsic part of the everyday life of some people and its benefits far outnumber any apparent drawbacks that such apps may seem to have.

Bank Apps: What is the future for 2018?

Mobile banking technology is constantly evolving. In today’s mobile-first world, the rapid pace of technology is changing the retail banking future radically, relying less on physical branches and more on mobile facilities. Forecasting the trends in the retail banking landscape today, here are four things that may unfold in 2018.

1. Gen X joins the Mobile Banking Queue:
While Millennials have always been quick to embrace new technology, the technological gap separating Gen X from Millennials is shrinking. It has been reported that 67% of Gen X use the mobile app of their banking institution. This number will keep increasing, eventually matching the Millennials' on mobile banking usage, change the course of retail banking.

2. Defunct Brick-and-Mortar Banks:
With mobile banking on the rise, the need for physical branches is lessening. Thus, there will be a fewer need for brick-and-mortar retail banks as bank branches shall continue to lose importance. Thanks to mobile banking apps, retail banking has now become easier than ever before. To avoid a mass shutdown of physical branches, banks will rush to stay updated with their mobile banking technologies while continuing to focus on developing customer loyalty. Banks relying heavily on physical retail banking may face trouble in the near future. While physical branches shall not completely disappear next year, most physical branches are destined to become obsolete.

3. Greater Personalization and Mobility:
Consumers will demand easily accessible mobility and personalisation in banking services whenever they want it. Consumers will want to build their suites of mobile banking products so that they can personalise their banking experience.  Banks must have the technology and know-how to deliver personalisation and mobility in a perfect bundle for customers.

4. Digital Currencies:
Along with mobile banking, banks must compete not only with other banks but with non-traditional financial competitors. Digital-only banks by big tech companies have made their presence felt, and will continue to grow. They shall offer a completely digital mobile banking experience to consumers. Apart from these, virtual currencies such as Bitcoin have already established themselves as a possible alternative to real currency. Demand for such currencies and transactions with them will continue to grow, and this has the potential to alter the traditional retail banking techniques drastically.

Financial institutions will adapt to emerging financial technologies and facilitate their own mobile-based digital and virtual innovations to be able to stay in business competing with these new technologies flooding the market, and they will adapt soon.

Why you need to switch to banking apps today

Are you still going to the bank to perform simple activities, such as depositing and withdrawing money? Are you tired of the long queues at banks? If you answered yes to both these questions, you should perhaps download your bank’s mobile app. Almost all major banks today have released their own banking apps and these applications are vital if you want to make the entire process more convenient.

Here is a look at some of the reasons why you should immediately switch to mobile banking apps.
No need to stand in long queues
When you visit a bank, you have to stand in a queue with other customers. This makes even a simple money deposit seem like a hectic task. Moreover, there is no guarantee of the exact time when you would be able to finish your transaction. For instance, the day you go to the bank may be especially busy, which can force you to wait for a very long time.

With mobile banking apps, however, there is no such dilemma. You do not need to wait in a queue either. You can simply log into your account and make the deposit or conduct the transaction whenever you please.

Saves time and money
In case of normal banking, you would have to visit the bank branch to conduct the transaction. However, this can cost you money for the journey and also waste valuable time. However, in case of banking apps, there is no need to travel and thus, you can save the entire money on that front. Moreover, since you can conduct the transaction from anywhere, there is almost no time needed for them.

You no longer have to make time for your busy schedule to visit your bank branch. This greatly increases the convenience of the transactions.

Service available 24x7
Banks open for a specific period of time each day between Monday and Saturday. However, these institutions remain closed on other times and on Sundays. Bank employees are also liable to get holidays on some occasions. On these days, people cannot visit banks to conduct business or transactions.

However, the same problem does not arise in case of mobile banking. In fact, the digital service of all the banks are open 24 hours a day and 365 days a year. This means that no matter the time or the day, you can conduct your bank transactions through these mobile apps in a safe and secure manner. This is very important in case of emergency deposits or withdrawal.

Installing and accessing a mobile banking app is essential for people who conduct regular transactions from their accounts. They can keep an eye on the balance that they have saved and other details from within their smartphones. Therefore, these apps have become an invaluable source for banking.

Getting the best of internet banking through your phone app

Banking is getting easier by the day as you no longer have to visit banks to conduct simple transactions manually. Users can also avoid going to the ATM, withdrawing cash and then paying the concerned person. Instead, internet banking systems can be used to increase the convenience of doing the same.
The introduction of mobile banking has further simplified this process, as now you can conduct any transaction straight from your smartphone. Most recognised banks in India have launched specialised mobile apps, which aid in the banking procedure. Here are some of the important advantages of mobile banking, which you should take advantage of.

1. Visiting banks no longer mandatory
Previously, customers had to go to the bank or the ATM to withdraw the cash. They also had to travel to the bank in case they wanted to deposit money into their account. However, this is no longer required for internet banking through a mobile app. You can just download the app for free and access your bank account from the same. All transactions can be concluded from this particular program, saving your precious time and money in the process.

2. 24x7 availability
Banks are open for a particular period of time each day, between Monday and Saturday. However, these institutions remain closed on Sundays and some public holidays. The mobile banking apps though can be used at any time from anywhere. The services are available 24-hours a day, 365 days a year. So, you no longer have to worry about banks remaining open or closed for conducting these transactions.

3. Reminders for bill payment
The apps are designed to remind you of any utility bill payments that you need to make. This is a helpful feature, as it prevents you from forgetting important dates for bill payment. Mobile alerts are used for reminding customers, and these are issued by the bank itself.

4. Balance inquiry
The balance in your account is something that you need to check constantly if several transactions are conducted throughout each month. Normally, you would have to visit your nearest ATM for this information. However, with these mobile apps, balance inquiry is now available in the tips of your hand. Simply log into the account and select the account information or balance inquiry option, to get a distinct knowledge of your savings.

5. Cheque book request from the app
Each chequebook comes with a limited number of pages, which eventually runs out. Applying for a second chequebook means having to visit the bank. However, with the bank apps, you can apply for a chequebook from the confines of your home.

What are the benefits of Netbanking through your app?

Technology has transformed the way we live and the way we go about performing our daily tasks. A bank is an institution which acts as the jugular vein of the society at large. It safeguards the hard-earned money of thousands of individuals and also provides people with the necessary funds to tide over periods of crises. So, it is only natural that technology will impact the banking sector as well. HDFC Bank is one of the most sought-after institutions in our country, and it allows its customers to download its official banking app to conduct a host of activities. Net banking has become immensely popular over the past few years, and it is not without cause. The benefits of using an app for net banking are:

• It has made life incredibly convenient. In this fast-paced world, it is not possible for a person to visit his/her bank’s branch every time he/she wants to withdraw money or just to check the account balance. Not only working professionals, elderly people, young mothers and sick people find it very difficult to go to the bank and spend the better part of a day trying to get their job done. HDFC Bank net banking has made it possible for these people to conduct their banking activities from the comfort of their homes or from any place that you find convenient.

• HDFC bank has come out with an app that is extremely user-friendly and which can be used by people irrespective of their technical know-how. You can perform your banking activities by following a few simple steps.

• Mobile applications help you to be in control of your finances. There are times when we suddenly receive a rude shock when we check our balances after a long period of time. This is because we have not kept track of our expenses and have not done any financial planning. A banking app lets you check your balance instantly and even allow you to transfer funds from and to the account. It also allows you to set reminders of any payments that you need to make. These features make life hassle-free and easier.

• Do not worry about wrong people gaining access to your account as HDFC bank net banking involves using an app that has a number of security features. All banks and financial institutions use encryption to protect the financial information, identity and other important information. As the app is protected with passwords and other security IDs, do not worry about your finances even if the phone lands up in the hands of a wrong person.

Making the most of a business loan through an app

Operating a business has its fair share of risks. Business owners are always not able to invest in their businesses due to the paucity of funds. This is where business loans come in. Such loans are generally availed to start a new business venture or to expand existing business operations. A business loan may be used to pay the wages and salaries of employees until and unless the business venture becomes successful. It can also be used to purchase things that are used in the office or for some business projects. Banks are allowing people to apply for loans online and this has made it convenient for the borrowers.

Most banks have their mobile apps which can be used by their customers to apply for loans for business. The eligibility factors that determine whether a business will get a loan or not are:

• A person who is applying for the loan should have been successfully operating his/her business for a minimum period of 3 years.

• The amount that a bank or financial institution will disburse depends on the turnover of the business. Normally, businesses with a turnover in the range of INR 30 lakhs to INR 10 crore per year can apply for a business loan.

• Normally, the borrower has to be within 21-65 years of age to avail this loan.

Some of the benefits of a business loan include:
• Business loans are generally unsecured loans which do not require the borrower to mortgage anything. This loan helps a person to meet the immediate requirements of his/her business, and they also allow the borrower to pay back the borrowed sum in easy monthly instalments.

• Another important benefit of a business loan is that banks and financial institutions provide doorstep service.

• You can even check your eligibility to get a business loan within a couple of minutes with the help of online business loan eligibility calculators.

Applying for a loan for business through an app has its own many advantages. You are no longer required to visit a bank and go through the tedious process of getting your documents verified and running from pillar to post in case there is some anomaly. You can check your eligibility criteria online and also find out what other documents you need to furnish. You can simply upload soft copies of these documents from your personal computer and get them verified. The doorstep facility ensures that you do not have to waste any time at the bank. So, make the most of a business loan and take care of your business by applying using an app.

How can you benefit from a two-wheeler loan application through an app?

Two-wheeler loans are quite useful for people looking to purchase a new bike or scooter. However, the conservative method for application of such a loan would be to visit the bank and work out the details there. However, with the evolution of the online mode, loans can be applied to quite easily and more conveniently.

The online loan application is perhaps the biggest and greatest leap that Indian banks have made over the last decade or so. With the emergence of smartphones, banks have also developed their own apps for these devices. Some of the banks allow users to apply for two-wheeler loans through these apps. However, you may be wondering what the actual benefits of such an application are?

Benefits of two-wheeler loan application through an app

Here are some of the important factors through which you benefit when you choose to apply for the bike loan online.

• When you apply for a loan through the app for the said bank, you can check the monthly payments that you should make. This helps you to understand the interest rate and the total amount, which you will need to pay in order to clear your debt.

• If you apply for the loan by visiting a bank branch, you would need to present all of your credentials and wait for the bank to conduct a check of your income. This usually takes a bit of time. However, in case of online two-wheeler loan application, you will be told whether you are eligible for the loan in just minutes. This makes the process convenient and easy to follow.

• Since the entire process is online, you can compare the rates of various lenders and then choose the plan that suits you the best. EMI calculators for such loans are also available online, where you can input the interest rates and the tenure of the loan, to get an idea regarding the monthly interest you would have to pay to the lender.

• Applying for bike loans through the bank apps also allows for attractive pre-payment options. Pre-payment refers to paying a certain portion of the loan amount through a single transaction. Check the details regarding the pre-payment online and see whether it suits your needs.

So, if you are planning to take out a bank loan to finance your new two-wheeler, give these apps a try. You may find that the entire procedure is much simpler this way and offers greater advantages.

The convenience of applying for an education loan through your smartphone

Education is a basic right of every child. A student, who does not belong to an affluent family, but who has done well in his/her secondary and higher secondary exams deserves a chance to continue his/her studies. This is where education loans prove to be extremely beneficial. Such loans are generally given to deserving and meritorious students who cannot fund their own studies. As with other loans, this loan can be applied from the convenience of somebody’s home using a smartphone. Different banks are allowing customers to apply for an education loan online by following a few simple steps.

The eligibility criteria to avail an education loan are:

• The applicant should be an Indian citizen
• In case of a NRI, the person should have a valid Indian passport
• The education loan is to be applied with a co-applicant who has a stable source of income
• There is a particular age bracket that is different for different banks.
• The most important criteria are the person has got a confirmed admission from a recognized institution or college
• Banks also check the academic record of the applicant and the credit history of the co-applicant

The different steps that a person needs to follow to apply for an education loan online are:

• You will have to scan and send the relevant documents to the bank. The bank will then verify whether the applicant has received admission in a recognized institute or not and it may also check the credit history of the co-applicant.
• The lender generally will personally interview the applicant and ask him/her questions about the course that he/she will pursue, the institute and what the potential sources of income.
• If the bank sanctions the education loan, a promissory note will be sent to the applicant that he/she will have to sign and return to the bank.
• The loan is finally disbursed after the entire process of documentation, verification and signing of the documents are completed.

A person applying for such a loan can use an education loan EMI calculator to find how much he/she will have to pay back every month to the lender. Banks generally offer a maximum of INR 10 lakhs to students looking to pursue his/her studies in India while students looking to study abroad are generally given a maximum loan of INR 30 lakhs. The online calculator has made it easier for applicants to compare the rates and other criteria of different banks and thus helps them to make an informed decision. An education loan EMI calculator has made applying for an education loan hassle-free as the applicant does not have to go from one bank to the other to get to know the best rates on an education loan. He/she is able to get that information from any place and at any time.

How to get a gold loan quickly?

Obtaining a gold loan is quite easy as compared to other loans. It can be availed by pledging some gold ornaments or issued gold coins from a bank. If you urgently need money with less hassle, then applying for a gold loan is the best option for you. You need to have a supporting address proof or an ID proof to avail the gold loan. Disbursal of this kind of loan is faster in comparison to other types of loans. The gold loan interest rate is usually meagre so it serves as an easy and quick way to fulfilling your financial needs. Gold loans can be used to fund a variety of requirements such as business expansion, funding a start-up, education and weddings. Secure storage makes gold loans an easy funding option to suit your needs. 

Tips to get a gold loan quickly by selecting appropriate schemes such as: -

Bullet scheme- You can only pay the interest in this scheme either quarterly or monthly.

EMI scheme- The total amount of the gold loan is divided into equal EMI’s which you have to pay at regular intervals.

Flexi scheme- There are multiple options in this scheme for top up without any charges and part payment (innovated for businessmen, big traders and builders).

Upfront interest- In this scheme, you can pay interest right away at the starting of your loan period. The rest of the interest amount can be paid after the completion of the stipulated period.

Gold loans are very beneficial and require minimum documents such as passport, driving license, ration card or voter ID. There are no time-consuming formalities involved in this type of loan. The varied number of schemes can suit different income groups.

Sometimes, you might have extra cash at hand. In such cases, you can choose to pre-pay a small part of your loan amount right there. This will not only reduce the overall tenure of your loan but will also assist you to pay off your loan as soon as possible.

However, the minimum pre-payment sum cannot be less than the total of 3 EMIs. There is no maximum limit for pre-payment of the gold loan.

Features of Gold loans: -

Loan amount- Gold loans not less than INR 50,000 is available in urban areas, while in rural areas loans below INR 50,000 is also available.

Interest rates- Gold loan interest rates come with very competitive and low rates on EMI loans, Overdraft and Term Loan.

Collateral- Gold which is surrendered as collateral is guarded safely and securely in the bank’s locker.
Servicing- The servicing is efficient and quick as disbursement over the counter just takes about 45 minutes.

Complete Transparency- The charges and loan rates are communicated through writing with the quotation, so there is no tension of extra fees or hidden costs.

Enjoy the convenience of a car loan application through your phone

Does the fancy car parked outside your neighbour’s house make you wish you had one too? Fret not, getting a car is a very convenient affair now. You begin the process by selecting a car you want and then search for a dealer who has the particular car in their stock. The next step would be to arrange for the money to pay for the car. In some cases, that is easier said than done.

One of those cases is when you have to take a car loan. Earlier taking a car loan required you to go through certain stages of going to the bank to procure information. But now, thanks to technology, all of those stages are now incorporated in specially designed banking applications on your phone.
HDFC offers some of the best loans in the industry. You can find information about their car loans online and accordingly pick a scheme.

People are often confused about the EMI amount. They find the process by which the EMI is calculated to be very cumbersome and difficult. One way to address this issue is by using a car loan EMI calculator on your phone. A car loan calculator requires you to input the following details: the loan amount, the interest rate and the time. You can then check to see if the EMI amount is feasible.

If you are looking for a good car loan EMI calculator, then you can try the hdfc car loan calculator. You will find it online on their official website.

Before you opt for a car loan there are certain things you need to keep in mind, they are:

1. CHECK your CIBIL score
Most banks sanction loans only after checking the applicant’s CIBIL score. If your score is on the lower side, then the banks will charge a higher interest rate and vice-versa.

2. Processing Fees:
Banks charge a fee for processing your loan application. In some cases, that fee can be very high, so you should ask the bank for clarifications, should you have any queries regarding their processing fees.

3. Opt for a short-term loan:
Shorter the term of the loan, lesser the amount of interest you have to pay.

4. Keep an eye out for offer from car dealers:
 Most dealers have tie-ups with various financial institutions when it comes financing a car loan for the buyers. At times, the rates you will get at a dealer’s are less than those offered by banks.

What are the features of the FAStag?

A new payment program introduced by the government, FASTag is a type of Electronic Toll Collection (TOLL) that has been rolled out on the highways of the country. FASTag has been fashioned by the Indian Ministry of Road Transport and Highways and is now being implemented by the Indian National Highways authority. In order to make FASTag a success, the Indian Highways management Company Limited (IHMCL) has teamed up with Axis Banks as well as ICICI Bank to help Indian citizens clear toll payments and transactions.

How does FASTag function?

This system of toll clearance has been adopted in foreign countries and basically involves the installation of a Radio Frequency Identification (RFID) device or strip which is fixed to vehicle windscreens. The technology makes toll payment easy as the driver does not have to stop to pay the toll at the toll booth. The money is automatically deducted from his prepaid account. FASTag is valid for about 5 years, and one can recharge it whenever they want after buying it.

Here are a few commendable features of this new technology that one should be aware of-

• The first and most important feature is cashless payment. Those who use FASTag do not need to worry about carrying change in order to pay money at the toll booth. They can wiz by in no time.

• In order to promote the use of FASTag, the government offered a cashback offer. Anyone who used this technology got a 10% cashback every month till the 31st of March 2017.

• One is definitely assured faster transit. This is primarily because an individual using this feature will not have to wait for the staff at the toll booth to complete the transaction and fish for change. The money will be directly deducted from their prepaid account which is must faster.

• One can recharge their FASTag prepaid account online via net banking, credit card, IMPS as well as a debit card.

• One will get SMS alerts on the mobile number they have registered in case of a transaction or if their balance is low.

• One can do a minimum recharge of hundred rupees and a maximum recharge of one lahk rupees.

• In case a person owns 2 vehicles, each vehicle will require FASTag facility.

• In case of loss of vehicle or if it is stolen, one can immediately block their account by calling customer care.

One can create a FASTag Account for themselves either by visiting the 2 banks that the government has associated with or one of the Point of Sale (PoS) stations near toll plazas in the country.

Making the most of your forex card on your travels

Travelling overseas has become hassle-free with the advent of the forex card. It allows you to make payments in the regional currency without any trouble. A person does not need to go to the currency exchange center to get local currency when he/she travels to another country. This is because the forex card or the travel card is pre-loaded with the foreign currency. Therefore, it allows a person to withdraw cash in foreign currency, shop, make payments and also to check the balance. A single currency or even multiple currencies can be loaded into the card and this allows a person to travel seamlessly across a number of countries.

Furthermore, these cards are widely accepted as they registered either with the Visa network or the MasterCard network.

The different benefits of using a forex card are as follows:

• You need not worry about fluctuating exchange rates. This is because the money that you have put into the card will become immune and not get affected by the changing market rates. A person who has loaded in money in a forex card will surely receive the value of the currency that he had initially signed up for.

• A forex card comes with security features like chip and pin technology and this enables a person to block the card if it is stolen or lost. The balance amount is frozen and no other person can gain access to that fund. Therefore, it is always better to carry a forex card instead of cash when a person is travelling abroad.

• A travel card usually offers better exchange rates when compared to using cash to buy foreign currency. When a person uses a forex card, he/she generally gets a difference of 50paise as exchange rate markup. On the other hand, a person who buys US dollars with cash has to bear a difference of Rs 2.

• Some banks in our country allow multiple currencies to be loaded into a single card. A person is liable to carry different currencies like Japanese Yen, Australian Dollar, Hong Kong Dollars, US dollars and Euro and others. Thus, foreign travel has been made extremely convenient and easy.

• A person will have to bear lesser transaction charges when he/she uses a travel card. The charges are much less when compared to that incurred by using Debit or Credit cards.

• A person does not have to pay Dynamic Currency Conversion fee while using this card.

These benefits ensure that a person can bid goodbye to his/her currency woes while travelling abroad.

Easy steps to open a FD Account now

A fixed deposit is an essential financial tool that can be used to increase assets over time. However, prior to generating returns on the investment, one has to open such an account with a bank. Such an account can be opened both online and offline. Here is the procedure that needs to follow in case one is trying to invest in a fixed deposit.

How to open online FD account?

With the emergence of the internet, people can easily visit the online webpage of their banks and elect to open an FD account from there. In the fixed deposit related section of the webpage, the banks offer an online form to the customers. You need to fill up the entire form and submit it. Once submitted, you will receive an email from the bank, where the completed form is attached.

Take a print out of the completed form. A representative from the bank in question will contact you shortly and fix an appointment for the collection of the application along with the other documents needed for opening such an account. Alternatively, you can also elect to visit the nearest branch of the bank and submit the documents there yourself.
Before submission, ensure that you have signed the printed out application form. Paste your photograph in the appropriate slot as indicated in the form.

Finally, keep a photo identification handy for the completion of the procedure. Aadhaar card and PAN card may be the most preferable ID in such a case.
Submit the documents along with a CTS compliant cheque so that the funds are cleared faster. This ends the online procedure for creating an FD account.

How to open offline FD account?

If you do not have access to the internet or want to complete the procedure manually, you can visit a branch of the bank itself. Once you are in the bank enquire on how to open an FD account. The staff will provide you with the application form. You have to fill it up and submit the required documents to the bank to open the account.

The CTS compliant cheque, which carries the FD amount can also be handed over to the bank alongside the completed form and documents. Once the cheque clears, the FD account will be created. In some cases, the offline method is faster when compared to the online procedure. However, before opening the account, one should ensure that they are aware of the interest rates offered by the bank. Conduct research to select the best fixed deposit investment.

What are the types of deposits available in India today?

Banks in India, offer quite a few services to their customers, ranging from money savings options to loans as well as investments. One can open a savings account in a bank to save up some cash, or opt for any type of loan be it a home loan or even a car loan. Investments through banks may be done via banks deposits, bonds or mutual funds etc.

When it comes to the various types of deposits that are available in India today, the first 2 types that one may be aware of are fixed deposits and recurring deposits. Fixed and recurring deposits are the most common types of deposits.

Bank deposit has been divided into 3 specific types. They are-

1. Time deposit
2. Demand deposit
3. CASA deposits
These 2 deposits have been further categorized into other forms of bank deposit.

Time Deposit

In case of time deposits, the money is deposited with the bank for a certain period of time. An individual cannot withdraw the amount before the tenure is over. If a depositor does withdraw cash from the bank deposit account before maturity a penalty fee is charged. Time deposits are thus also known as term deposits. The time deposit that is most commonly opted for is fixed deposit. Other time deposits include re-investment deposits and recurring deposits.

Those opting for time deposits can save as well as enjoy returns in the form of interest. The interest rate offered on time deposits varies from one bank to another. Longer the term of the deposit, higher will be the rate of interest that the bank will offer.

Demand Deposit
 In case of demand deposits, the money deposited with the bank can be withdrawn anytime. The bank does not need to be given a notice in advance. The funds can be withdrawn via a cheque, ATM or from the bank directly.

Those who opt for a demand deposit may or may not receive interest from the bank. Even if interest is given, the rate is generally quite low.
There are 2 types of demand deposits, namely savings account and current account.

CASA Deposits
A savings account and current account deposit together is known as a CASA deposit. These deposits pay low interest and are quite beneficial for banks. Banks want to increases the number of CASA deposits they have, thus they offer services to companies like salary accounts etc.

Other types of deposits in the country also include NRO, NE (E) RA as well as FCNA (A) accounts. One can also avail insurance for deposits in India.

Features of the NRE account and how it can benefit you

Non-residential Indians (NRIs) can maintain a rupee account in India. NRIs have two options available to open and operate a bank account in India – NRE or Non-resident Rupee account and NRO or Non-Resident Ordinary Rupee account.

A NRE account allows a person to transfer or convert Indian currency and also allows him/her to park their money in various savings accounts. The primary reason why a person would want to open this account is if he/she wants to convert his/her overseas earnings into Indian rupees. This account allows a person to maintain a savings account in Indian currency, he/she can hold a joint account with another NRI or if the person wants his savings in rupees to be fully repatriable.  

The features of a NRE account are:

• The amount that is saved in this type of an account can be repatriated overseas as well.

• A NRI can open this account and he/she can hold it jointly with another NRI or PIO.
The deposits in this account can be done in the following ways:
• A NRI can deposit money in this account personally when he/she visits India and the deposit can be made in Indian currency and a few other foreign currencies.
• Deposits can also be made in a NRE account through the foreign exchange transfer while in a foreign country.
• A person can also deposit in such an account by transferring funds through NRE account or FCNR account that are held in financial institutions apart from banks.
You can open NRE account online to enjoy the features of NRE account such as:
• A person does not have to pay taxes on the interest that he/she earns from the deposits in this type of account.
• The Reserve Bank of India has set some guidelines about how to document the transaction procedures and how to submit those to the governing body. NRIs have to fill in the Form A4 when he/she is depositing money in foreign currency through remittance or via demand drafts or cheques. A person who does transactions above Rs 1, 00,000 needs to submit proper documentation.
• The credit and debit flows into and out of this account are regulated by FEMA by imposition of a set of permissible transfer types.
• A person having Power of Attorney can only perform limited tasks like withdrawing money and remitting money across the border so that it can reach the account holder.
The advantages of NRE account are as follows:
• This account allows a non-residential Indian to invest in different deposit schemes and saving schemes of banks in India.
• You can also open NRE account online to avail a loan from foreign as well as Indian banks. Moreover, the amount of loan that a person can get is much higher in comparison to loans provided to other types of accounts.
• You can transfer funds from one country to another without incurring any cost.
• You can also transfer funds from this account to other FCNR/NRE accounts of the same person or even of a different person.

A person can avail facilities like cheque book, international credit card and also pay bills if he/she has a NRE account.

How to manage your education loan EMI’s?

Education loans are essential for students who wish to pursue higher studies or go abroad to complete their education. Most banks now provide these loans to students, but also charge a substantial interest when it comes to paying back the sum. While taking a loan itself may be easy, paying off the debt may prove to be difficult for some students.

The bank usually allows the student some time after he/she has completed their education before asking for the EMI repayment. This period of time is known as repayment holiday. Usually the bank allows a period of one year from the time of completion of education to the time of the first EMI payment. However, this period may be shorter if the student manages to get a job within six months of the degree completion.

Here is a look at some of the guidelines to follow if you want to manage the repayment of your education loan in India.

Ways to reduce burden
For education loans above Rs.4 Lacs, the student has to pay a certain percentage of the expense, while the rest is lent out by the bank. For studying in India, the student has to pay 5% of the loan while for education overseas the student has to furnish 15% of the expense. However, if you are a good student, some banks may relax these rates.

It is also better to take the loan amount through small payments over time instead of taking the entire amount at once. This reduces the interest that you will have to pay once the repayment period starts.

Start saving prior to repayment
If you have taken out an education loan, it is highly advisable that you start saving money during your education. You can opt for a part-time employment in order to start saving early. The repayment holiday can also be utilized to save up enough money so that there is no issue while repayment of the debt.

Keep an eye on the rate of interest
Education loan in India is given out on a floating rate of interest. This means that the rate of interest may change over time. So, it is highly recommended that you keep a backup savings for emergencies if the rate of interest suddenly escalates. However, to do this, you need to earn enough to save some money after paying EMI and meeting monthly expenses.

These are some of the easiest ways of ensuring that education loan EMI does not get too difficult to manage. Keeping expenses in check during the loan repayment tenure is the best way to handle the burden of the loan.

Gold Loan: Why it is a popular option in India?

India is a country that loves gold. Indians are the largest importers of gold in the whole wide world. This precious metal is not only useful as an ornament to be worn at festivals but a good gift option as well. These days banks and non-banking financial institutions are offering loan against gold.

Gold loan is granted by a lender against the gold that is kept as mortgage and hence, this loan is a secured loan. The gold needs to be deposited with lenders before the loan is availed. The lenders will conduct a few checks and may offer loans for as high as 80% of the metal’s value. Most households in India have at least some gold at their home or in a bank. They can utilize this loan to meet emergency requirement of funds such as expanding a business, a medical emergency, child education or even for down payment to purchase a vehicle.

The various benefits of applying for a gold loan are:

• As the gold loan is a secured loan, banks are generally non-hesitant in granting it. Banks or other financial institutions always have the option of selling off the gold in case of any default on the payment.

• Banks or financial institutions may even allow a person to only pay the interest for the loan. The person can pay back the principal amount at the end of the tenure.

• Gold loan interest rates are generally lower in comparison to the interest rate that is charged by a bank or a financial institution on any unsecured loan. Thus, this provides some relief to the borrower.

• As the gold is kept as collateral, a person is eligible for a loan against gold even if his/her credit history is not so commendable. A person’s repayment capacity is also not considered. Thus, it is often easier for a person to avail a gold loan to meet his/her urgent requirement of money.

• Lenders also generally do not ask for an income proof to be submitted by the borrower. This is because the physical gold is kept with them.

• A person availing such a loan does not generally lose ownership of the gold that he/she is mortgaging. He/she will get it back after repaying the loan.

• Many banks and non-banking financial companies charge less or no penalty for prepayment of the loan. Sometimes, they do not even charge processing fees. Thus a borrower is not overburdened with the task of paying more money.

In India, the government has also made it easier for women and agriculturists to get gold loan by announcing special goal loan schemes. Gold assets usually increase in value and hence, it is easier for lenders to trust a person who wants a loan against gold. These are the reasons why gold loan is a popular option in India.

The ideal guide to choosing the best insurance policy

A person always needs a back-up plan to deal with any contingencies in his/her life. There may be a sudden death in the family or there might also be some medical emergency. A death of a working member of a family may result in the family being plunged into a world of plight. This is where a life insurance policy can prove to be extremely beneficial. Such a policy entails that that an insurance company will provide death benefits to the beneficiary of a policy in exchange for some payments that are to be made on a regular basis.

There are a number of life insurance policy plans that a person can choose from in accordance with his/her needs.

There are a number of factors that a person should consider before deciding which plan should work best for him/her.

• A person who does not want a complicated plan can opt for a simple plan. Such a plan normally comes with single premium options and guarantees a beneficiary that is assured a lump sum after the death of the policy holder. The assured sum is normally 15-20 times the present annual income of the policy holder.

• A person should insure himself/herself or any other member of his/her family who is suffering from any critical illness. Health insurance may not suffice in such cases as such a policy only pays for the hospitalization costs. However, a person suffering from a critical illness will generally require a lot of other funds as well. Thus, it is of vital importance for such a person to get a financial shield in the form of critical illness clause when he/she is applying for an insurance policy.

• A person can also avail accident cover with his/her life insurance policy. This will be hugely beneficial for a person as it can provide security in a number of uncertain situations like road accidents. This cover only costs a little extra and offers extra benefits to the family of the deceased in addition to the one-time payment.

• A life insurance will also enable your family to earn a monthly income even after your death.

• Different insurers even allow a person to choose how that person wants to receive the pay-out.
He/she can choose from multiple pay-out options to suit his/her different financial requirements.

• Do not always opt for the life insurance policy plan that requires the payment of the lowest premium. This may result in the loss of various benefits and also cause you to adopt a policy that does not meet your requirements.

• Choosing a proper insurance provider is also a key facet.

A life insurance policy lets a person provide financial security to his/her family and also enables the person to live a peaceful life.

How to qualify for the best business loan?

Business loans are extremely useful when one is investing in a new business. These loans may help set up the business, so that one can easily repay the debt as the business starts generating profits. However, as with any kind of loans, not everyone is qualified to receive a business loan. Most lenders have a list of stringent eligibility criteria that the borrower needs to fulfill in order to get a loan sanctioned. Here are some steps through which one can easily qualify for the best bank loan for business.

High credit scores
Credit scores are a form of measurement, which assesses how good you are at repaying loans. There are two kinds of credit score that the bank may check, prior to sanctioning a business loan. The personal credit score keeps track of the past loan repayments of the loan applicant. For instance, if you pay your credit card bills and other loan EMIs on time, your personal credit score will be higher.

The bank may also checks the business credit score. This is the credit score of an established business and includes the past repayment of business loans for such an organization. However, in case you are applying for the loan for a new business, the banks will not check the business credit score.

Meeting the eligibility criteria of the lender
Each lender will have their own requirements and minimum qualification criteria for a business loan. Ensure that you are aware of these criteria and also fulfill each of them. This will allow you to get your loan sanctioned easily and without any added hassle. In some cases, the lender may be flexible if you have high performance in certain sections and are under the eligibility limit in another.

Financial and legal documents
Before applying for the business loan, ensure that you have all of the financial and legal documents ready with you. Some of the paperwork which might be needed include personal income tax returns as well as business income tax returns, balance sheet along with income statement and personal/business bank statement, photocopies of personal identification, financial projections for your business and other documents. Check with your bank or lender prior to application regarding the documents that need to be provided.

Collateral
Most banks will demand a collateral in case of bank loans for business. Collaterals are financial assets that you possess. For instance, you may put up your house as a collateral for the business loan that you are applying for. The bank may then take possession of this house in case you are unable to repay the business loan.

The above factors should be kept in mind in order to qualify and easily get a business loan.

RTGS vs NEFT: All you need to know about the difference

Interbank transfers are form of money transfers that occur between two banks. One may want to transfer a certain amount of money from an account in one bank to another account in a different bank. This will count as an interbank exchange. There are two main modes of interbank transfers in India, namely National Electronic Fund Transfer or NEFT and Real Time Gross Settlement or RTGS.

However, one must understand the essential differences between these two modes of money transfer to take advantage of them. Both are useful in their own ways and are used in case of retail banking as well as corporate banking. Listed below are some of the main differences between the two.

Minimum transfer limit
For NEFT transfers there are no minimum limits, as people can transfer very low amounts of money with the same as well. However, For RTGS, the transfer amount should be at least Rs. 2 Lacs. The RTGS limit ensures that smaller sums of money cannot be transferred using this procedure.

However, there is no upper limit for either NEFT or RTGS, which indicates that you can transfer as much money as you like using these methods.

Settlement
Since RTGS refers to real-time settlement, the fund transferred through this method is debited into the receiver’s account instantaneously. There is no waiting involved for the banks to clear the transaction. However, in case of NEFT, the funds are settled throughout the day in batches. This is why if a NEFT transfer is initiated toward the end of the day; there is a high possibility that the settlement will be completed the next day.

Timings
For NEFT, the timings are 8 am to 6.30 pm Monday to Friday, while on Saturday, the timing ranges from 8 am to 12.30 pm. On the other hand, for RTGS the timings are 9 am to 4.30 pm between Monday and Friday. On Saturday, the RTGS transfers can be initiated between 9 am and 1.30 pm.

Suitability
NEFT has no minimum limit and is thus more suitable for transfer of small amounts of money. The RTGS limit signifies that this kind of interbank transfer is more suited for greater sums of money. Mostly corporate transfers are completed using RTGS. This may involve a large-scale business or a transaction between two banks. For such organizations, instant settlement of the funds is very vital, which is why RTGS offers real-time transfers.

In any case, both of these modes of interbank exchanges are useful, even though they cater to different clients.

What are the recent updates on GST?

The entire country has been figuring out how GST works since its implementation about 6 months back. The concept of GST, which stands for Good and Service Tax was first introduced by the government in the year 2000. This new idea on tax implementation finally came into function on the 1st of July 2017. Since then, GST has undergone several changes as the nation slowly accepts this new system of taxation.
  
The last council meeting with respect to GST was held on the 16th of December 2017, and a number of changes have been made regarding GST payment.

Some of the fresh updates include-

• The E-way bill with respect to GST online payment, will be introduced for trial on the 16th of January 2018. The rule of the bill will come into implementation from the 1st of February 2018, and the states of the country will have to start following this bill system before the 1st of June 2018.

• The council has brought down the list of goods and products in the 28% tax slab from 228 items to about 50 items only. Among the 50 items in the list most are luxury goods and products. Items which are used daily have been shifted to the 18% tax slab.

• The high GST rates on restaurants and hotels has been lowered. Now a GST of only 5% minus the input tax credit benefits will be charged. Although in case of starred hotels that have rooms costing more than Rs7, 500, the GST levied will be 18% along with input tax credit benefits.

• The GST rate on about 12 items has been brought down to 12% from its former 18%.

• The council after the meeting has even extended the due date for some related forms.

• The council has also reduced late fees in case there is a delay while filing NIL returns. The late fee has been brought down to Rs200/day to Rs20/day.

• Small and medium sized businesses that have a turnover of less than Rs1.5crore, can now file their taxes quarterly instead of monthly. Thus, they can now make their GST payment quarterly. This switchover will begin from October, the taxes for the months of July, August as well as September will have to be done on a monthly basis.

• Provisions for TDS/TCS have now been postponed till the 31st of March 2018.

GST payment is quite new, and the government is making a great effort in bringing about changes so as to make this new tax system business and consumer friendly. GST online payment is also a feature that has simplified the method of clearing taxes.

What are the best options to remit to India?

NRIs who stays and work abroad, are generally quite familiar with the term ‘remittance’. This refers to the transfer of money from an overseas account into an account located in India. This transfer of funds usually involves a certain amount of the money being deducted as processing fee for the transaction. However, one can remit to India through several valid methods such as Bank wire transfer, online money transfer and transfer of money through agencies. They have been further elaborated below-

Bank wire transfer

This is perhaps the most direct form of remittance. In this form of money transfer to India, you can directly transfer the funds from your foreign bank account into an Indian account. It usually involves the usage of SWIFT or Society for Worldwide Interbank Financial Telecommunication code. In such a form of remittance, processing fees may be levied on the transaction. A limit to the amount of fund transferred may also be present for bank wire transfers.

Online money transfer

With the evolution of the internet, several websites and portals have also come into existence, which offer the users a safe and reliable way of transferring funds from overseas. These online transactions can include the transfer of money directly from the account of a foreign bank into the account of Indian counterpart. Users can also transfer funds directly from their credit cards.

Money transfer through agencies

You can approach any remittance agency abroad to have your money transferred to India. An agent needs to be given the details of the transaction as well as the details of the receiver. After handing out the money to the agent, he/she will provide a special code to you. This code needs to be revealed to the receiver of the money.

A representative of the agency in India will hand over the funds to your contact, given that this contact is able to recall the code given out to the sender. This form of money transfer to India usually involves a small fee, which must be paid by the sender. This fee varies from one bank to the next.

These are some of the most common and most reliable ways through which an NRI can remit money to India while living overseas. However, one must be careful to check the processing fee that their bank deducts on each of these transactions. Try to save money and send greater sums at once. Some banks also offer free remittance in case of higher amounts of money. Furthermore, ensure that the method of transfer is secure, reliable and free of scam attempts.

Purchasing new versus old: Getting the ideal two wheeler loan

Two wheelers have now become a necessity for working individuals and students living in Indian cities and towns to make way and reach offices and colleges on time, when almost every day the major arteries of the cities remain blocked with traffic during peak hours. Two wheelers are one’s best friend when it comes to cutting through major traffic jams by opting for routes which involve passing smaller lanes and streets.

Two wheelers are used by individuals of a wide array of age groups. These vehicles range from the very basic scooty models to high-end fashionable bikes. Financial institutions do offer loans to those who wish to purchase two wheelers. A basic model costs around forty to forty five thousand rupees whereas a high end model can cost a few lakhs. Whatever your wish may be, banks do offer two wheeler loans if you wish to purchase a new two wheeler. Getting a loan application approved for a new vehicle is easier than a second hand vehicle loan approval. In India at present only selected banks offer a two wheeler loan in case of pre-owned vehicles.

While deciding upon a two wheeler loan the following points must be noted to assure that you choose a loan which is most suitable:

• Value of Margin: Any bank offering a loan to buy a two wheeler approves up to 90% of the value of the bike or scooty. The rest is the amount known as the margin- a value which must be paid by the buyer. The percentage to be kept as margin varies from bank to bank. So, this must be checked prior to finalising the loan.

• Two wheeler loan interest rate: while securing a loan the most important point to be noted is the interest rate charged by the bank. This varies from bank to bank. The two wheeler loan interest rate depends on the principal amount, duration of the loan, credit history of the loan applicant and type of loan being opted for. A major factor which determines how ideal a loan is, depends on the interest rate charged by the bank.

• Loan duration: the duration of a two wheeler loan varies from one to four years. As a buyer one should consider the EMI to be paid each month and accordingly determine the loan based on its duration. If EMIs are high the loan is repaid faster and there is an overall gain but if one cannot pay high EMIs every month, opting for a loan of three to four years is more sensible.

In most cases it is seen that banks which have a tie up with the dealers of two wheeler vehicles do not offer attractive loan options. So, buyers who wish to purchase a two wheeler by taking a loan must conduct their own research and procure information regarding loan offers provided by different banks before taking the final decision.

Why opening a savings account for your child is crucial now

Banks in India now allow savings accounts for kids who are ten years or older. Kids can operate these accounts, even though parents need to be partially involved in it as well. While most banks now offer various types of savings account curtailed to children, very few people in India take advantage of this feature. There are several important aspects that a child learns when he/she operates their own bank account from a young age. Here are some of the reasons why your kids should have their own savings accounts.

Understand the value of money

Most children are now aware of the importance and the value of money, since they are provided for by their parents. This is why many of them take money for granted from a young age. With their own savings account however, children start to realize the importance and value of saving money. They start to understand that money can be an asset when saved in a proper manner.

Avoiding unnecessary expenses

Kids will be more prone to spend all of their savings on useless items such as chocolates and similar products at first. However, you can encourage your children to save their money so that they can afford to buy something useful. For instance, your child may really want a bicycle. As a parent, you should advise your kid to save his funds so that he can afford the bicycle. This will teach them that savings can be useful in getting the things that they really want.

Basic idea of banking

Each and every person needs to be aware of the ways in which the modern day banking system works. With your child’s savings account, you are giving him/her a practical lesson on the same. They may not learn the intricacies of finance, but they will be able to comprehend how the bank computes interest on the savings that they have inside the account. This will further increase your kid’s desire to save money in order to earn greater interests.

Furthermore, calculation skills are also improved when the child manages such an account. They will comprehend just how much savings they have and how much more they need to save in order to reach their financial goals.

These are some of the reasons why opening such an account for a kid has become crucial. However, parents must be involved in this process as well so that they can guide the child to become mature in terms of money and finance. They must also select the type of savings account best suited for their child.

How mobile payment apps are now making it easy to handle finance

With the advancement of technology, banking and finance are also evolving continuously. With the advent of smartphones and tablets, a new form of payment also came to the forefront, namely mobile payment. Several apps have been developed, which allow customers to carry out a transaction through their mobiles itself. These apps not only make it easier for the customer to purchase an item without cash, but it also proves to be quite beneficial for the vendor.

What are the advantages of mobile payment apps for the consumer?

The consumers can use these apps to make payments in an easy manner. For instance, in case of a cash payment, you would need to carry the cash amount with you prior to the purchase. In case of payment through credit or debit cards, you would need to swipe the card and then sign on the memo. However, in case of mobile payment apps, you only need to transfer the funds digitally to the vendor and you are done.

Mobile payment apps also provide a secure way to make payments. With the use of such apps, you no longer need to worry about carrying cash in your wallet or the cash getting stolen from you. The credit or debit card information associated with such apps are not stored locally in smartphones. Instead, the details are stored in cloud-based systems making it impossible to be stolen, even if the smartphone is nicked.

However, aside from the benefits received by the customers, the vendors also profit from such a transaction. This is why, most vendors now support such payment methods.

Advantages of mobile payment apps for the vendors
Vendors are liable to pay less for using a barcode scanner or other forms of mobile payments to complete a transaction when compared to the cost of a credit card transfer. The vendors are charged monthly fees for such transactions and are also charged for each instance of payment through credit cards.

A shop or service that offers mobile payment as a valid option for transaction may earn the goodwill of customers as well. People are looking for convenient means of payment whenever they go out. Shops, which provide such facilities are likely to have increased business and returning customers.

Mobile payment apps are becoming so popular that cash transactions are dwindling with each passing day. More and more people are finding this mode of payment easy and convenient. There may come a time when the entire economy of India will become digitized and cash will become a thing of the past.

Linking your bank account with your Aadhaar Card

Aadhaar cards have become the most important personal identification document in India in just a few years. Most people have already been assigned an Aadhaar card along with their own personal 12-digit Aadhaar number. Most government services and telecom companies have made Aadhaar linking mandatory. In 2017, the Indian government also decided that Aadhaar linking would be made compulsory for bank accounts.

What does Aadhaar linking mean?

Prior to the advent of the Aadhaar card, people had to rely on either the PAN card or the Voter ID in order to open a bank account. However, since the Aadhaar came into existence, most banks now ask for the same in order to register new accounts. The Aadhaar provides better security verification due to the biometrics embedded in it. So, the Government of India decided to bring the entire banking system under a uniform identification process. This is why people who did not open their accounts with the Aadhaar will now have to link the same with their banks.

Why is Aadhaar linking important?

Aadhaar linking comes with its own set of benefits. For instance, the government subsidies, such as LPG and others for retired persons will be transferred directly into your account after the linking is done.
Aadhaar linking is also likely to reduce tax fraud and prevent other money laundering schemes. Just as linking Aadhaar to PAN has allowed the Income Tax department to weed out duplicate PANs, the bank account linking is also expected to prove beneficial to the country’s economy.

Aadhaar linking will also enable a new mode of accessing the account from anywhere. This method is known as Aadhaar-Enabled Payment System or AEPS. Through this feature, users will need their 12-digit Aadhaar number along with their fingerprint verification to access their bank accounts. After online bank account opening, money withdrawal may also take place online.

How can the Aadhaar linking be done?

Some banks offer the option of linking Aadhaar to the account through that bank’s ATMs. People will need to swipe their ATM cards and follow the instructions for Aadhaar linking from there. However, the best way to link the Aadhaar number to the bank account is to visit the nearest branch of your bank and ask for assistance there.

Many citizens have already linked their bank accounts with their Adhaar card. Other Indian citizens with access to such accounts in banks will have to link their Aadhaar number with those accounts within March 31, 2018. The previous deadline was deemed to be December 31, 2017, but this has since been revised.

Here is how you can get the best deal on your car loan application

Car is no more a luxury but a necessity these days if one is living in a metropolitan city in India. With travel distance and increased complexities in terms of availability of public transport, cars have become an important asset one should own if they desire to save intra-city travel time. Getting a car has nowadays become super easy with car finance options being offered by almost every bank known.

The approval of a car loan to a great extent depends on the manner of its application. If one is thinking of opting for a car loan to purchase a car there are certain things he may keep in mind to get an attractive deal on the car loan application. This is how one can look for the best deals-

• Conduct a detailed research on the car price- It is often seen that different dealers quote different prices for the very same model. One can choose and zero down on the best offer made. By choosing the dealer who quotes the best price one indirectly also reduces the principal amount for the car loan.

• Check various options available in car loans- Car finance is a dynamic sector as far as loans are concerned. Different banks offer different rates depending on criteria such as the loan amount, duration, credit history of the customer and so on. Often the bank with whom the dealer has tied-up with does not provide the best offers. So, before buying the car the customer must check the various loan options given by different banks to assure that het gets the best loan deal.

• Credit profile of the person who is opting for the loan- The interest rate and monthly EMI of a car loan to a certain extent depends on the credit profile of the person who opts for it. If one has certain credit discrepancies such as pending EMIs of other loans and unpaid debts, the bank is more likely to charge relatively higher interest rates for the car loan.

• Opt for an optimum duration for the car loan- When a buyer is thinking of purchasing a new car by taking a loan he must choose the shortest possible duration. This ensures that the loan is productive. Higher the loan tenure, a borrower will have to pay more interest on the loan. The ideal duration for a car loan is 2.5 to 5 years.

Lastly, before finally signing the papers one must read the fine print to assure that all terms and conditions are known and agreed upon.

Are you aware of the UPI payment process?

Prior to the demonetization last year, most of the major banks in India underwent a crucial change. They introduced a new and convenient form of payment known as the UPI or the Unified Payments Interface. As with any new scheme or policy, most people in India are still unaware of what the UPI does.

So, here is a look at some of the things one should to know regarding UPI and how you can take advantage of the process-

What is UPI?

UPI is essentially an easier mode of transaction between two individuals or account holders. Through it, people no longer need to remember bank details of the person they want to transfer money to. Instead, the payment is made through a mobile application. Most banks in India have developed such an app and made it available through the Google Play Store and App Store.

You can download the UPI app of your bank and register yourself in it. After the registration is complete, you need to only enter the UPI username of the individual you want to transfer money to along with the bank that he/she is affiliated with. The fund transfer process is now that simple thanks to this procedure.

How to get started?

The first step to using UPI is to download the UPI app for the bank in which you have an account. These apps are available for free in the Google Play and App Stores. Next, sign up for the UPI process. To do this, you will need to create a UPI username, which will be known to others and used to make payments to you.

You will also have to enter a 6-digit

https://www.hdfcbank.com/personal/making-payments/fund-transfer/upi

pin. This pin will be used to authenticate any transaction that you initiate through your mobile. After you select the pin and the username, the app will send an OTP to your phone number, the same number which is linked to your bank account. You need to re-enter the OTP on your phone to complete the registration process.
Once all of these steps are complete, you can begin transaction freely. This method of payment is completely secure and safe. So, you need not worry about getting scammed out of your savings. However, remember to keep the UPI pin secret, so that no one else apart from you can execute a UPI payment.

With UPI payments, banks will once again be able to establish their footing in the market which they had lost since the arrival of various mobile wallet applications. UPI essentially allows one to do the same transfers that PayTM or MobiKwik does, making those apps redundant over time.

What are the factors you need to consider when investing in mutual funds?

Investments are a great way of making money from savings. Most people invest in mutual funds. Mutual funds are nothing but a group of investments made by different people. The mutual fund invests this money on behalf of the investors. The mutual fund charges a small fee for investing this money.

However, as is the case with all investments, “mutual fund investments are subject to market risks”. So, to avoid incurring a loss, you must remember these factors prior to investing money on the same-

What is the objective of the investment?

Every mutual fund follows a certain objective or goal. Determine what the goal is for a certain mutual fund. If this goal matches up to the one that you have in mind, then the investment will prove fruitful to both the parties involved. The style of the investment is also important. You can select between small cap, large cap, mid cap and micro cap funds. Other options include multi-cap and flexi-cap funds.

Check the performance of the mutual funds

Before investing in a mutual fund, ensure that you check how well the fund performs in the market. In fact, it is advisable to study the profitability and stability of the mutual fund for a long period of time prior to the investment. This will let you know the risks that you may face with your own investment.

Experience of the fund handler

The mutual funds manager or handler is responsible for investing the money in such a way that it garners substantial returns. The manager needs to be experienced and an expert in the investment market. This will ensure that the fund does not incur unnecessary losses. So, it is essential to have a dependable manager at the helm of the mutual fund.

Mutual fund expenses

The firm managing mutual fund investments charges certain fees in exchange for the investment. As an investor, you need to check whether the expenses that you incur are higher than you can handle. Some mutual funds who charge more as a fee also offer greater returns to investors. So, you should check these aspects out carefully before investing.

Check the exit load

An exit load is the added charge that an investor has to pay if he/she decides to sell their units before the tenure runs out. The higher the exit load, the greater the penalty fee you will have to pay. However, it is advisable that you do not sell off your investment, as long-term mutual fund investment increases the chances of return.

Consider all of the above factors in order to make an informed decision regarding mutual funds.

How to open a demat and online trading account?

Over the years the stock exchange market has become electronic. Adopting the electronic system, the purchase and sale of shares today can be done via the computer and even through smart phones. In order to actively deal in the stock market, one requires to maintain a trading account as well as a demat account.

While a trading account helps in the purchase and sale of stocks in the market, a demat account is where one deposits the shares. When it comes to online trading account and demat account opening they go hand in hand. One generally opens both the accounts at the same time.

Here are the steps when it comes to online trading account and demat account opening-

• One has to first approach a depository participant (DP), generally a broker or even a bank. A DP functions as an agent who helps in the purchase and sale of shares.

• This is followed by acquiring and carefully filling-up forms in order to open the accounts. Submit the form along with relevant identity proof documents. Pan card, proof of identity such as a license or passport, proof of residence such as a ration card and a photograph that is self-attested are documents which are required.

• An agreement is then formulated between the investor and DP. This set of rules and regulations will be signed by you after which you will receive a copy of the same.

• After the agreement papers are signed and the submitted documentation is crosschecked and verified, one will receive their online demat account details, including the number. This number is called the BO ID (Beneficiary owner’s identification number). This ID will come in use in each and every future transactions.

• Once you get the online trading and demat account details, you can start buying and selling mutual funds, shares as well as debentures through the accounts. Bear in mind that unlike other accounts, no minimum securities need to be maintained in a demat account.

Legally, one can have multiple online trading accounts and demat accounts under one PAN card. They may hold multiple accounts with the same broker or even other brokers as well. In case of multiple accounts, annual fees for maintenance need to be cleared for each and every online trading account and demat account that one has. Apart from the annual account fees, one also needs to pay for the transactions fees as well as custodian fees. In case of one single account none of these charges apply, except the fees one covers at the time the account is opened.

IMPS: All you need to know about the advantages and limits

Banking is continuously evolving with the advancement of electronic media. With the emergence of smartphones and tablets, the banking process has also become simpler. Mobile banking and internet banking have become popular as well. A new mode of money transfer known as Immediate Payment Service or IMPS was also introduced. However, many people in India are still not aware of IMPS and what it stands for.

What is Immediate Payment Service and what are its advantages?

It is a form of digitized banking, which is available 24x7. Funds can be transferred even after the banks close for the day and even on bank holidays. It involves mobile banking. This means that the funds can be transferred securely from your mobile to the other person’s mobile. From the phone, the money is then deposited into the receiver’s account.

IMPS was accepted by the National Payments Corporation of India or NPCI in 2010. There is essentially no minimum limit of funds one can transfer using IMPS. However, to facilitate the transfer, you will need three important information about the receiver. Firstly, you will need to know the full name of the beneficiary. Next, you will need the account number of the receiver. Finally, you will also need to know the IFS code of the beneficiary.

Two other things are required to complete IMPS transaction. Upon registration to IMPS, the bank will generate a 7-digit MMID number. The MMID number of the beneficiary is required to complete the transaction. Lastly, the ten-digit mobile number of the receiver is also needed to complete the same.
This form of payment ensures instant money transfer in a safe and secure manner. Unlike National Electronic Fund Transfer and Real Time Gross Settlement, IMPS can be facilitated even when the banks are closed.

Disadvantages of IMPS

Even though IMPS has made life easy for everyone, there are still some limits to this mode of transaction. Firstly, the banks apply certain IMPS charges on every transaction. This charge varies from bank to bank and is also dependant on the amount being transferred. Higher the transfer amount, greater is the IMPS charge levied on the same.

Secondly, there is a limit to how much one can transfer through a single IMPS transaction. This upper limit varies from bank to bank. However, if you are looking to transfer a substantial amount of money using this method, it may not be a viable option.

What are the different types of banking cards available in India?

Indian banks offer a variety of options to individuals for conducting financial transactions. People can pay for items and services that they purchase through banking cards. There are primarily three types of cards in India – credit cards, debit cards and prepaid cards. Here is a detailed look at the features of these cards.

Debit cards

These are the basic banking cards, which are assigned to an individual when they open an account in a bank. Through the use of debit cards, people can pay for items and services without cash. However, to ensure that the payment goes through, the bank account must have the required funds in it. For instance, if you pay Rs.3,000 through your debit card, the bank account associated with the card must at least have the same amount in it.

Debit cards are the most common form of banking cards in India. This is because no addition eligibility criteria need to be met in order to qualify for a debit card. Aside from this, using a debit card is much safer since it does not require a repayment to the bank at a later date. You are essentially spending your own money and not lending out a sum from the bank.

Credit cards

Credit cards are the second most common type of cards. Credit cards are issued by banks and through these an individual can purchase items and services on credit. This means that you may pay a certain amount of money, which you may not have in your own bank account. The bank essentially lends out this money. However, the card holder will have to repay the entire amount to the bank along with interest on a later date.

Credit cards are not issued to every person in the country. Each bank has a list of eligibility criteria, which must be met before one can apply for a credit card. Since credit cards are a form of short-term loan, the banks check the income of the individual along with the bank statements prior to the application for the card.

Prepaid cards

Prepaid cards or prepaid credit cards are form of banking cards, which bear resemblance to both standard debit and credit cards. With such a card, you are responsible for depositing a sum of money into the account prior to making any purchases. This money can then be spent on the items and services that you wish to buy.

In case of such cards, you are the one setting the credit limit and at the same time, you are not borrowing money from the bank.

How to get the assurance of approval on your bank loan application

The reasons for taking a bank loan can greatly vary from person to person. While some take it to buy a car, others may apply for a loan to build a dream home or even renovate an existing one. Whatever the reason may be, applying for a loan is a tedious process as banks maintain very strict application standards. The high standards that banks set for borrowers can often make those who apply wonder whether their loan will be approved or not.

However, individuals can ensure their loan gets the assurance of approval. Here’s how-

1. Check your credit score

Whether you take an online loan or an offline one, the bank you apply to will check your credit score to determine whether your loan will be approved or not. The credit score is calculated on the basis of previous loan repayments (if any). Those who have a high credit score are generally given preference by banks than those with lower ones as it shows their ability to repay the loan in time. Hence, you should try to increase your credit score to ensure that your loan is approved.

2. Reduce your debt

If you want to improve the chances of your bank loan getting approved, it will be a wise idea to reduce existing debt. Large amounts of existing debt hold the potential to hurt your chances of qualifying for as well as getting an approval on your loan as it’s taken into account when analyzing your debt-to-income ratio. Hence, if you cannot clear out any existing loan entirely, consider reducing it to be on the safe side.

3. Apply for an amount you can manage

One common thing most people overlook, or rather overestimate when applying for an online loan is the amount. For example, if you require 10 lakhs to renovate your home but ask for a loan of 20 lakhs, the bank will question you about your intentions for the rest of the loan amount. In such a case, the bank may decide to reject your application, deeming it to be a risk in comparison to those who apply for an amount that is not above what they need. Hence, before applying for a loan, fix the right amount.

4. Get all the documents ready

Gathering as well as furnishing all the right documents as and when the bank asks can go a long way in getting your loan approved. Key documents that can help in getting your loan approved include tax returns, pay slips, bank account statements, KYC documents and whatever else your bank requires.
In the end, as long as one prepares well, their loan will get the stamp of approval without much problem. In case of any questions, be sure to consult an expert.

Getting an online personal loan is now made easy

A personal loan is the best way for one to purchase an expensive item that one always wanted but couldn’t afford to, such as a bike, an expensive gadget or even a piece of jewelry. Earlier on, getting a personal loan used to be quite a hassle as one had to make several visits to the bank. On top of that, the filling of several complex forms was a mandate and then there was the waiting time for approval.

However, now getting a personal loan is very easy as one can just apply online and get instant approval. Here’s how-

1. Check your eligibility criteria

The eligibility criteria for an online personal loan is fairly simple. Qualified individuals include salaried professionals such as CAs, salaried doctors, engineers, any employee of a private limited company or a public sector employee. Applicants should also be aged between 21 and 60 years and should have had a job for at least last 2 years with a minimum of the last 1 year with the current organization. A minimum net income of Rs 15, 000 per month is generally considered acceptable.

2. Register yourself

The first thing you have to do is get on the website of the bank you wish to take a loan from. In the menu section of the website, you’ll see an option for personal loan. Click on the apply button (or whatever the option is on the website). You will be taken to an online form which you will have to fill in correctly.
Details you may be asked to furnish include your basic KYC (know your customer) information such as your name, address, date of birth etc. along with your annual/monthly income.

3. Get your documentation in order

Fortunately, to get an online personal loan, you do not have to furnish a long list of documents. Simply uploading the scanned copies of basic documents is enough. That said, the documents you have to furnish include
• ID proof, which could be a copy of either your Aadhaar, passport, voter ID card or driving license
• Your address proof, which can be a copy of any one of your ID proofs
• Your bank statement of the last 3 months
• And your latest salary slip or salary certificate

4. Choose your offer and apply

Banks may offer several personal loan schemes with varying rates of interest. Generally, the details of these schemes will be available on the website and you must go through them before making your choice. Also, search the website for the details of the fees of the loan. Once you’re done making your choice, and have already carried out the above steps, apply for your loan.

Most banks process the loan instantly or in 4 to 5 hours. That’s how easy it is to get an online personal loan.

The convenience of personal loan calculator and how you can benefit from it

Personal loan is one of the most common forms of financial loan that an individual takes. These loans may be taken for a host of different reasons, such as the marriage or education of children, family vacation and more. However, each bank offers the same loans at varying rates of interest. The tenure for the repayment of such a loan may also differ from one bank to the next. These variable factors make it very difficult for a personal loan applicant to figure out the EMIs that they are likely to pay.

This is where the personal loan calculator comes in handy. Through these specialized tools, one can check exactly how much they would have to pay each month if they take a loan from a certain bank.

How to use personal loan calculators?

These days, each bank’s website provides such a calculator for the loan applicant’s convenience. Once you get to the calculator page, you only need to enter certain figures to calculate the total interest that you would have to pay on the loan and also the monthly payments or EMIs that would have to be made.

The first thing that you need to enter into the calculator is the principal amount or the loan amount that you would like to avail. Secondly, you would also have to enter the interest rate for the personal loan. In India, the rate of interest in case of a personal loan may range from 10% per annum to 20% per annum.

Lastly, enter the tenure or duration of the loan repayment. After this has been filled in, press the calculate button to determine exactly how much interest and EMI you would have to pay for the loa

Credit card apply – Enjoy a stress free application process with these steps

Credit cards are quite common these days and it is a service that is offered by most banks. Credit cards are essentially used to take out personal loans of a limited amount and then repay them back to the bank. For instance, one may buy a television set using their credit card. After a specified time, they have to repay the price of the TV along with the interest to the bank.

While credit cards are no doubt quite useful, applying for one may be quite confusing for some individuals. So, here is a look at some of the steps to help with credit card application.

Steps to follow to apply for credit cards

Before apply for a credit card, you must first choose the type of credit card that you are looking for. Each bank offers a wide variety of cards, each with its positives and negatives. Determine the kind of card which suits your need. The eligibility criteria for each card may be different along with the benefits offered by each. Similarly, the interest charged on the cards also tends to be different.

Next, you must fill out the form for the credit card application. Previously, you had to visit the bank in order to complete this step. However, now due to the internet, online credit card application is also a viable method of carrying out the same. Along with the application form, you must also provide your photograph.

You must provide a proof of income alongside your bank statement for the preceding six months from the time of the card application. This will help the bank judge whether you qualify for a credit card or not.

After the documents are submitted, the bank will perform a verification to check that all the data that you have provided is correct. Previously, an employee from the bank would drop by and personally perform the verification. However, now in case of online credit card application, the bank will merely call you and your reference contacts to perform the verification.

If you manage to clear the verification procedure, the bank will courier the credit card to you in a matter of 3 to 4 weeks from the date of the application. The courier will also include information regarding the deals you can avail using the card and also the credit limit. You cannot use the card to purchase items if you reach a certain credit limit in a month.

Following these steps will ensure that one easily gets hold of a credit card, which comes quite handy to make major purchases or in case of emergencies.

Wholesale Banking: All that you need to know

Banking is a diverse section of any financial system of the world. While most individuals are concerned with personal banking features only, many aspects mainly concern larger organizations. Unlike retail banking that mainly deals with smaller businesses and individuals, wholesale banking is primarily needed by larger organizations and by other banks.

What is wholesale banking?

Any financial transactions that occur between merchant banks and other financial institutions is known as wholesale banking. This kind of banking is mainly limited to very large organizations and equities. This form of corporate banking comes with added perks, which are not offered in case of retail banking. These perks include currency conversion, transactions in case of large-scale trade, financing for working capital and many others.

Aspects of wholesale banking

Wholesale banking is concerned with the lending and borrowing of money between two major, large-scale entities or organizations. These organizations may be government-controlled bodies, funds allocated for pension and other institutions with enough assets to be considered a large-scale business.

A transaction may also be referred to as wholesale banking if the lender and the borrower are two banks. This kind of transaction usually takes place in the interbank market and involves the exchange of very high sums of money.

Most ordinary banks also offer the wholesale banking services. These organizations act as merchant banks in case of such a transaction. This means that you can conduct corporate banking with the same bank under which you may have your personal account.

Why wholesale banking is beneficial?
Since in such corporate banking, the transaction revolves around much larger sums of money than in retail banking, there are a few benefits to wholesale banking. Due to the higher amount of transaction, most banks offer discounts in the form of lower interest rates and reduced transaction fees on a per rupee basis.

Aside from the added advantages, wholesale banking is vital for proper functioning of a larger business. For instance, a company operates 20 different branches across India and each of the branch needs to keep a reserve amount of Rs.10 Lacs. This means that in total the branches would need to maintain reserves of Rs.2 Crore. Maintaining and managing such cash using retail banking would be too difficult. So, to streamline the procedure, wholesale banking becomes essential.

Through such corporate options, the company has to maintain only one account through which all of the company’s transactions can go through. So, if one has a big business and are looking for a simpler procedure to handle the financials, try out wholesale banking.