What are small business loans? How to get one?

Small business loans are loans given to small and medium businesses. These loans are specially catered to their business needs. The loan amounts for these small business loans go up to Rs. 50 lakhs and banks usually do not take any collateral for such loans. Banks also allow transfers of SME loans.

How to get small business loans?

1.Check eligibility criteria:
Each bank has its own eligibility criteria. But the most common ones relate to a minimum turnover, profitability of business, minimum years of operation, previous income tax returns. To ensure your business gets a loan, it is important to check if your business meets all the eligibility criteria’s set by the lender. This will ensure you get the best loan as per your business’s repayment capability.

2.Ensure the business has proper books of accounts:
Lenders these days are very strict about small business loans. Since these loans are given without collateral, banks are very careful as to who they give out the loan to. It is necessary for the business to maintain proper books of accounts. If the business qualifies for an audit, it is better to get accounts audited as banks will get more comfort if they see that the business has audited Financials.

3. Prepare a business plan:
While applying for a small business loan, banks ask the business for a plan showing how the funds are going to be used. Preparing a business plan showing the expansion that is planned will help the business show that the funds are being raised for a legitimate purpose.

4. Choose the lender:
There are many different lenders who give SME loans. If you have a prior banking relationship with a lender, then you should approach them first. Check the terms, charges, and conditions of each lender before choosing.

5. Check if you can apply for a Government SME Loan:
The Government of India has 3 different loan schemes for small and medium business enterprises. Before applying for a small business loan, it is better to check if your business qualifies for a Government loan. There are 3 such loan schemes

● Credit Guarantee Fund Scheme for Micro and Small Enterprises: This scheme is run by the Government along with SIDBI. Loans can be availed up to Rs. 1 crore.
● MUDRA scheme: This scheme has 3 different levels for of loans, Shishu, Kishor and Tarun. Shishu scheme is for loans up to Rs. 50,000. Kishor scheme is for loans up to Rs. 5 lakhs and Tarun scheme is for loans up to Rs. 10 lakhs.
● Stand Up India Scheme: This provides loans to SC/ST and women entrepreneurs between Rs. 10 lakhs and Rs. 1 crore.

How to use bike loan calculator

A bike is one of the most convenient modes of transport and a lot of people first buy a bike and then move on to buying a car. A bike loan is a convenient way to purchase a bike. There are many tools to find out the monthly liability on taking a car loan. Before you take a bike loan, it is better to check the monthly outgo through a bike loan EMI calculator online. These calculators usually have different inputs such as the loan amount, the bike model number, the manufacturer of the bike, the rate of interest. With the help of all of these, the bike loan calculator calculates the monthly outgo.

How to use bike loan Calculator?

Using a bike loan calculator is very simple. These calculators have been made very simple so that even a layman would understand how to operate them.

There are a few things you absolutely need to know before you use a bike loan EMI calculator:

● Cost of the bike (landed or ex -showroom)
● Rate of interest on the loan
● Tenure of repayment

Some other things that you should know are:

● Manufacturer of the bike
● Model number

Not all calculators ask for the manufacturer and model number. Most of them calculate the bike loan EMI in with the loan amount, interest rate, and repayment period.

Once you know these, you can input them in the bike loan calculator and it will show the EMI amount. The calculator does not show the formula for calculating the EMI. It simply calculates the EMI and makes it simple for the user. It is easy to change the loan, interest, and tenure and see the impact on the EMI. It is to be noted that for smaller repayment period, the EMI will be higher, but the interest component will be lower since more amount of the EMI will go towards repayment of principal.

Some bike loan EMI calculators also show the amortization schedule, which shows either the monthly or yearly bifurcation into interest and principal. This helps to know the amounts paid as interest and the changes in this depending on the change in interest rate or repayment period.

A bike loan calculator can also be used in case you already have a bike loan and are thinking of pre-paying. If the loan calculator provides an amortization schedule, you can know the amount you will need to pre-pay and the added EMI in case the repayment tenure is changed.

5 ways to transfer money

With the ease in online transactions, transferring money is not as complicated as it used to be in earlier times. From pure cash transactions to cheque to online money transfers, it has become easier to transfer money. If you’re wondering how to transfer money online, there are several modes. In fact, you don’t even need to transact through a computer. There are several online money transfer apps that facilitate money transfers.

Here are 5 ways to transfer money:

1. NEFT:
NEFT stands for National Electronic Fund Transfer. It is now possible to use an online money transfer app for NEFT as well. To use NEFT, you need to add a beneficiary to your bank account. After the beneficiary is added, up to Rs. 50,000 can be transferred in the first 24 hours and up to Rs. 1,00,000 can be transferred in the first 48 hours. Once the beneficiary is added, then there are no restrictions on the transactions that can be done. NEFT transactions are settled in hourly batches every day.

2. RTGS:
RTGS stands for Real Time Gross Settlement. RTGS is used for high value fund transfers where the value is more than Rs. 2 lakhs. These transfers are final fund settlements, they cannot be reversed since they are affected in RBI’s books. If you want to know how to transfer money online in real time, then RTGS is the mode you should use.

3. IMPS:
IMPS stand for Immediate Payment Service. It can be affected through any bank’s online money transfer app. You need a 7-digit IMPS identifier code to receive payments via IMPS. Each customer gets their own unique Mobile Money Identifier (MMID). While making the transfer, the system matches the mobile number and MMID of the beneficiary. Only if these two matches, the transaction goes ahead. IMPS is available 27/7. Fund transfer in IMPS is immediate.

4. UPI:
UPI stands for Unified Payments Interface. If you’re wondering how to transfer money online via UPI, it can be done through the UPI app. Each customer has to create his own UPI ID and an identifier code. This online money transfer app uses the receiver’s UPI ID to make the payment. Each transaction is verified by the identifier code before the transaction proceeds. Once the user verifies the transaction, payment is debited from the bank account. Fund transfer is immediate.

5. Wallets:
Wallets became a popular way of transferring money, especially after demonetization. Money can be transferred from one wallet to another by using a mobile number or a QR code. Wallets have evolved to become complete payment ecosystems now, with bill payments, online purchases, and merchant integrations. Wallets are refilled through a bank account.

5 top online shopping apps of 2018

In today’s world, purchasing via shopping apps has become commonplace. Buying from an app during a sale generates such a high volume that sometimes, even the best of apps crash. The ease of use for online shopping apps, the integrated payment systems and the choice makes them a natural choice.

The number of shopping apps available to mobile users is vast. With such a variety, picking the best apps becomes a big hassle. The megastore shopping apps have already cemented their place, but here are some innovative online shopping apps that are looking to be big disruptors in 2018.

Following are the top 5 best online shopping apps:

1. PayTM Mall:
PayTM mall is already a very popular online shopping app. Users can shop for a wide variety of things here. Payment is conveniently routed through the PayTM ecosystem. This app is very popular for shopping because of the hefty discounts it gives to the customers. There are frequent offers in the PayTM mall which make it one of the best online shopping apps.

2. HDFC PayZapp:
HDFC’s PayZapp is fast becoming a reliable shopping app for customers. The app is flexible and allows the customer to link any credit or debit card for payment. The app integrates shopping from a number of apps at the same time, which makes it convenient to shop from the best marketplaces at the same time.  Each purchase earns cashback which can be redeemed on future purchases.

3. Tata Cliq:
This shopping app is fast becoming one of the best online shopping apps, especially for electronics. It offers deep discounts on purchases, especially of the Tata brand. It sells a whole range of other products and is ramping up its presence in the luxury sector. Tata Cliq also provides seamless payment options.

4. Facebook Marketplace:
This is Facebook’s foray into the fast-growing online shopping ecosystem. Anyone can sell his or her products in the Facebook Marketplace. The only thing is payment options and delivery depends on each seller selling their products. Facebook has integrated its features such as messenger with the marketplace such that it is possible for buyers to chat with sellers in real time. This makes it one of the best online shopping apps in 2018.

5. Yono by SBI:
This app is an upcoming app for SBI card users. Yono provides a host of discounts on different types of shopping. The app has a convenient interface and has partnered with different shopping portals to make their products available in one interface for its customers.

5 things to remember before sending money online

Sending money online has become a convenient way to fulfill payment obligations. Because of easy money transfer apps, it has now become commonplace to send money online as compared to using traditional modes of payment, such as cash or cheques. Using apps such as UPI, or mobile banking, it is possible to send money online instantly to accounts all over the world.

The number of people who have shifted to online money transfers is large. Most youth and businesses find it cheaper and more convenient to send money online for whatever payments they need to make. But for a first time user looking to send money online instantly, there are points and tips that need to be remembered for a satisfactory user experience.

Following are 5 things to remember before sending money online:

1. Create your unique login:
Using easy money transfer apps requires logins. Each app works on a different basis. To use UPI, you need to create a UPI ID and a unique code. To use RTGS, NEFT, or IMPS via a bank’s mobile banking app, there is a unique login. Before sending money online, it is important to pick the app to send money online instantly and create a unique login for it.

2. Money transfer is immediate:
One important point to remember is that while sending money online, the transfer is immediate. With payment systems such as NEFT, money is credited in a few hours, but it gets debited from the account immediately. With payment systems such as wallets, RTGS, IMPS, UPI, the money transfer is immediate. That’s why these methods are used to send money online instantly.

3. Recheck the recipient’s details:
This point is very very essential. Most transactions involve instant debits and almost instant credits. This means those transactions are settled. They can’t be cancelled like a cheque. This is why, before you send money online instantly, recheck the recipient’s details that you enter. There are system checks like in IMPS, where the mobile money identifier is matched with the mobile number, but for transfers like NEFT and RTGS that depend on bank accounts, one wrong number can cause an irrevocable payment.

4. Failed transactions:
Even with easy money transfer apps, there is a chance of failed transactions, especially while using netbanking to pay bills or shop online. These are mostly due to internet issues. If an amount is debited but the transaction does not go through, remember to contact your bank and get the transaction reversed.

5.  Monetary limits:
Before using easy money transfer apps, there are limits on transactions for each mode. The minimum limit for RTGS is Rs. 2 lakhs and the maximum limit for IMPS is Rs. 25,000.

5 things to know before opting for grocery apps

The ease and convenience of online shopping has translated into people using online shopping for a wide variety of things. This has spread to using online shopping for groceries as well. Whether it is toiletries, or staples, or even fruits and vegetables. The number of grocery apps is increasing which has made it convenient to buy groceries in a few clicks.

Grocery delivery apps take in orders at any time and ensure there is no need for the person to go to the market or various shops to buy anything. Everything is available on the app and can be ordered at the person’s convenience.

Ordering from a grocery app is very simple, but there are a few things to know before you order from a grocery delivery app.

Here are 5 things to know before opting for grocery apps:

1. Large variety of brands available:
Even the best grocery apps have a whole range of products available. While selecting, it may get confusing. But it is also an opportunity to discover new brands. With most of the grocery apps providing similar brands in case your brand of choice is unavailable, it is a chance to try out new brands and new products.

2. Check for discounts or promo codes:
Most of the grocery apps have a range of discounts to first time buyers and also run frequent sales during festive periods such as Independence Day, Diwali etc. These offers can lead to substantial savings while making purchases. Before opting for grocery apps, check the prices for the products in regular brick and mortar stores and then take a call on ordering them. You can also opt for extra discounts on purchases from apps like HDFC’s PayZapp which gives an extra 10-15% discount on BigBasket purchases.

3. Delivery:
Each grocery delivery app has different dates for delivery. Some may charge for express delivery and some deliver products within a couple of hours. Before ordering from these apps, make sure you check the delivery time and ensure you are at home to collect the delivery.

4. Types of payment offered:
Most of the grocery apps offer a wide range of payment systems such as wallets, credit card, debit card, and payment through apps like PayZapp by HDFC. These payment apps make it simple to check out and reduce hassles and worries as regards to payments.

5. Return policies:
Each grocery app has their own return policies for products. Before opting for grocery apps, it is best to check their return policies for spoilt products.

5 things to consider before applying for an education loan

Getting a higher education is a privilege. Even with the increasing costs of education, both in India and abroad, a significant number of students opt in for higher education. Taking a student education loan is one of the ways to meet the education costs.

A large number of lenders provide student education loans, for both education in India and abroad. Most of these loans provide loans for tuition and some also provide for living expenses.

5 things to consider before applying for a student education loan are:

1.Total cost of education:
By total cost of education, it is not only the cost of tuition, but living costs such as accommodation, food, local transport, that needs to be considered. If you take a student education loan only for the amount of tuition, you will have to pay living expenses and food expenses out of your own pocket. Along with this, another important point to consider is whether the lender will lend for the course you would like to study. Most lenders cover a wide variety of courses, but still, before you apply for the loan, it is better to check it once.

2. Rate of Interest and Loan sanctioned on education loan:
One of the most important considerations for an education loan is the education loan interest. The standard education loan interest varies between 8.5% to 15%. Different lenders have different rates. It is best to take one with a reasonable interest rate.

Not all banks give out loans for the entire tuition cost or cost of education. While finding a lender, it is important to check the loan amount they usually disburse for a student education loan. That way, if one lender provides a loan for partial amount, it means you need to raise the balance funds through a second education loan.

3. Repayment period:
Most education loans have a concept of moratorium, which means a certain amount of time before which repayment starts. For example, if you avail a student education loan and the moratorium is 36 months, it means repayments will not start for 36 months after the loan is disbursed.

4. Scholarships and other benefits from the University:
Most foreign Universities have provisions for scholarships. There are a lot of such scholarship programs which meet a part or full tuition cost. While applying for a student education loan, it is important to see if you qualify for a scholarship.

5. Government schemes and loans:
The Central Government provides a subsidy scheme where students who are from poorer backgrounds get subsidy on education loan interest. This scheme is only open for student whose parents have a gross income of less than Rs. 4.5 lakhs.

5 reasons to opt for apps for booking movie tickets

With the advent of online shopping, the movie ticket shop has also gone online. With various movie tickets booking apps, it has become very simple to book movie tickets online. There are a number of apps that provide booking facility for movie tickets. Most payment apps have the facility to book tickets.

But why should one opt for a movie tickets booking app? There are a few reasons why a movie tickets booking app trumps going to the theatre to book tickets.

Here are 5 reasons to opt for apps for booking movie tickets:

1. Convenient:
Booking a movie ticket online is very convenient. It is a matter of a few clicks and a ticket can be booked. It is not necessary to physically visit the theatre and get a ticket. It can be done through the app. It saves effort and time. It can even be done on the way to the theatre, thus ensuring confirmed tickets. Most apps also have the facility to book tickets and pay at the theatre.

2. Provides information about all movie theatres at once:
The best reason for using a movie tickets booking app is that it provides all information about theatres and shows at once. There is no need to visit the theatres or find incomplete or incorrect information in newspapers. A movie tickets booking app provides information all at once, which makes it easy to take a decision on the movie.

3. Cashback and other offers:
Different apps frequently run offers on movie tickets. Sometimes apps combine with credit and debit cards to provide special discounts. There may be cash backs, or offers such as buy one ticket get another free. These are app specific and are given to attract people to booking movie tickets online. But as a user, making use of these offers can reduce the overall cost of tickets.

4. Possible to select seats:
One of the drawbacks of going to the theatre is not having the liberty to select seats. It is possible to view seats per screen per show on an online movie ticket booking app.  Depending on the show and the availability, it is possible to select seats. Most apps allow for booking multiple tickets in each transaction.

5. Wide range of movies:
Newspapers and other media display information only about a select few movies, whereas there are a whole range of movies that release every week. Using a movie tickets booking app, you can see movies from all languages, which makes it easier to take a decision. Having movies from different languages on one platform ensures every movie gets an equal chance of being booked, which is beneficial for the movie too.

5 best money transfer apps

Using money transfer apps has become second nature for mobile users. With the increase in digital connectivity and online transactions, using a mobile money transfer app to make payments and transfer money to people is becoming widely accepted. There are a number of apps that have popped up to help people transfer money. But not all apps are created equal. Some mobile money transfer apps are much ahead when it comes to ease of use, safety, and consumer experience. 

These are the 5 best money transfer apps:

1. BHIM UPI:
The Unified Payments Interface or UPI created ripples in the money transfer apps environment because of the ease and convenience. Sharing private bank account details is no more a necessity, because with UPI, it is possible to transfer money to anyone with a UPI ID. Each transaction is validated with a security code that the user decides. Several private and public sector banks have their own apps tied up with UPI to allow seamless transfer of money from one account to the other. BHIM is one of the best UPI apps because of its simple interface, bill payment and money transfer options.

2. HDFC’s PayZapp:
This is one of the best mobile money transfer apps offered by a bank. It allows bill payments to multiple vendors, both online and offline. It is possible to pay vendors by scanning a QR code. The app allows for mobile money transfer using just the mobile number. This makes it very easy to send money. The app has an inbuilt feature of online bill payments such as DTH, mobile recharge etc. It is possible to shop online, order food and groceries through the app as well.

3. PayTM:
PayTM is the biggest mobile wallet player in India. From transferring payments to other wallets to converting itself into a while online payment ecosystem, PayTM has come a long way. It is possible to shop on PayTM, pay bills, order food, book travel tickets. Payments are possible through a mobile number or via scanning the QR code.

4. PhonePe:
PhonePe is one of the biggest UPI apps in the country. It has integrated itself with many online vendors making it simple to process payments through this platform. You can link multiple bank accounts on PhonePe which makes it easier to send and receive multiple payments. The interface is one of the friendliest among mobile money transfer apps.

5. Mobikwik:
Mobikwik has a strong and clean interface. It is the second largest wallet player in India. Transferring money from one person to another is possible in just a few steps, which make it one of the easiest money transfer apps in India. It has merchant integrations too.

5 best international money transfer apps

With an increase in the number of students travelling abroad, there has been a steady increase in the foreign exchange remitted over the years. Earlier, foreign exchange used to be remitted via cheques and demand drafts. With the advent of internet and mobile banking, cheques and drafts have been rendered obsolete.

There are a number of international money transfer apps which make it very convenient to transfer foreign exchange at a nominal cost. This makes it possible to send money in a matter of a few clicks.

The 5 best international money transfer apps are:

1. PayPal:
PayPal is a very convenient way to make international payments using your credit or debit card. It is also a popular way to receive foreign payments which are directly transferred to the customer’s bank account. PayPal is extremely simple to use. The charges for using PayPal for sending money are inbuilt in the exchange rate it charges. The credit or debit card company may charge additional charges. To make a payment, only the email ID of the receiver is needed. PayPal is one of the best money transfer apps. 

2. State Bank of India App:
The country’s largest banker offers international money transfers to 11 countries via Internet Banking. The beneficiary has to be added and after a cool time of 30 minutes, a transfer can be made. The transfers follow FEMA guidelines. SBI App offers the same facility to its customers. SBI also allows seamless inward remittances to be received in the account. SBI charges 0.125% subject to a minimum of Rs. 125 for individuals.

3. HDFC Mobile Banking App:
HDFC Bank’s mobile banking application is one of the best international money transfer apps. To make a foreign remittance, one just has to add a beneficiary and transfer money via the NEFT portal. There is a separate section for ‘foreign outward remittance’. This app allows 2 transactions every day.  HDFC Bank charges Rs. 500 for a transfer up to $1,000 and a charge of Rs. 1,000 for a transfer above $1,000

4. ICICI Bank’s Money2World App:
ICICI Bank’s Money2World app is a money transfer app for making foreign outward remittances. Transferring funds through this app is extremely simple. The app charges a flat fee of Rs. 750 per transfer for Net Banking.

5. Thomas Cook’s Foreign Exchange App:
Thomas Cook’s foreign exchange app makes it very convenient to buy and sell foreign exchange. For money transfers, you just need to put in your details in the App and Thomas Cook will contact you for further steps.

5 best gold loan apps in India

A gold loan is a really convenient way of raising funds in the time of need. Every Indian family has gold, and whenever they need money, a gold loan is a hassle-free way to get a funds. The major advantage of gold loans is that it does not depend on the credit score of the borrower. Since the loan is secured against gold, the credit worthiness of the borrower is not a major consideration in approving the loan.

It is now simple to get a gold loan online and even on an app. There is gold loan app that help people to get loans at the tip of their fingers. With speedy approval online, it is convenient, easy, and beneficial to use a gold loan app to take this type of loan.

Here is a list of 5 best gold loan app in India:

1.Mannapuram Finance OGL app:

Mannapuram Finance has a gold loan which allows the user to take a loan anytime through the app. To avail this facility, first calculate your monthly outgo through the gold loan calculator. The gold has to be secured in a Mannapuram Finance branch, after which loan can be taken anytime through the app.

2. HDFC Loan Assist:
This is one of the most user-friendly gold loan apps. It includes a gold loan calculator so that you can calculate the EMI before you apply for the loan. This app disbursed money as quick as 45 minutes after the loan is approved. The minimum loan amount is Rs. 50,000.

3. Muthoot Finance Loan App:
The Muthoot Finance Online Gold Loan app is a convenient way for customers to get their loans. The loan allows them to make periodic interest and principal repayments through the gold loan app, check their payouts through a gold loan calculator, withdraw loan amounts and renew loans. it provides an easy way to raise funds in case of need.

4. India Info line Lending App:
IIFL provides gold loans on gold above 18 carats. It is possible to apply for the loan on their app, and get approval done online. The only time the customer has to visit the branch is to deposit the gold. The app also has a gold loan calculator for finding out the repayments.

5. Bajaj Fingers App:
The Bajaj Finserv app is one of the most popular gold loan apps. The app offers conveniences such as payments of installments, application for loans, instant application for pre-approved loans. This gold loan has no pre-payment or foreclosure charges.

5 best apps for travel offers in 2018

Travel has become the new buzzword. It is not something that people used to do once in a few years. With the whole world becoming accessible to Indians, travel is no longer an indulgence, but is considered a necessity.

With the increase in travel, there is an increase in the number of websites, apps and companies giving out travel offers. A large number of people scout for the best travel deals while booking their vacations. Whether it is discounted airfare, or the cheapest yet most memorable accommodation, finding best travel offers has become the way India travels. 

There are a number of apps that can be used to find the best travel offers.

Following are the 5 best apps for travel offers in 2018:

1. PayTM:
PayTM’s easy to use interface, best travel offers with cashbacks and discounts make it a great app to book travel. It is possible to book flights, bus and even train tickets. The app offers frequent discounts especially in the times of airline sales. There are cashbacks for first time users.

2. HDFC’s PayZapp:
PayZapp app provides a variety of travel booking options. They provide the best travel deals among apps and also provide 10% cash back on every transaction along with reward points. The app has tied up with Jet Airways, Indigo and Yatra for better travel deals for customers. Payment through the PayZapp app is very convenient. It can link multiple debit and credit cards which makes it easy to avail travel offers.

3. IRCTC:
Many people use the IRCTC app to book train tickets. But IRCTC has a robust system for booking air tickets and also for booking hotels and other travel requirements such as taxis. IRCTC does not advertise itself as being a travel portal but it has the least amount of service fees per transaction. Booking through IRCTC is convenient and can be used to avail of travel deals. IRCTC has recently revamped its website and mobile app which has made booking through this portal even easier.

4. MakeMyTrip:
This app is one of the biggest apps for travel deals in India. It is possible to book air tickets, hotels, tour packages, bus tickets from this portal. It also has a wallet facility for users to earn reward points to be redeemed in future transactions. MakeMyTrip also offers travel insurance along with bookings.

5. Cleartrip:
Cleartrip is an extremely popular app for travel offers. It provides a seamless booking experience and is very easy to use. Cleartrip provides a range of travel deals in flights, local trains, buses, hotels, and tour packages.

5 apps to transfer money from bank to bank

Phone banking is now a reality. Transferring money from bank to bank is no longer something that requires a lot of effort. It is not required to visit a bank or issue a cheque. Nowadays, it is possible to transfer money from bank to bank using different mobile apps.

There are several different bank money transfer apps that can be used to transfer money from one bank account to the other. Almost every bank has its own mobile banking app that helps to transfer funds. Apart from this, because of Unified Payments Interface, it is also possible to directly transfer money to a bank account even without having a particular bank’s app.

Following are 5 bank to bank money transfer apps:

1. BHIM UPI:
BHIM is the app launched by the National Payments Council of India (NPCI). The UPI system to transfer money has completely changed the payment ecosystem. It is no longer necessary to send bank account numbers to receive payments. It can all be done with the help of a UPI ID. BHIM is one of the best bank to bank money transfer apps. Each bank has its own version of the UPI app, but the best ones are ICICI, HDFC and SBI.

2. HDFC Mobile Banking App:
HDFC’s mobile banking app is one of the most seamless and convenient apps for transferring money. It has a user-friendly interface and its own secure login checks to ensure each transaction is valid. The app also has an extension called HDFC Chillr which is a bank money transfer app.

3. PhonePe:
PhonePe is one of the biggest UPI apps in the country. Transferring funds from one bank account to the other is very convenient with PhonePe. The user interface has been designed in such a way that even a layman can use it. The funds directly get credited to the bank account. It is possible to connect different bank accounts to one PhonePe account.

4. SBI Buddy:
SBI Buddy is SBI’s bank to bank money transfer app. It is not required to be an SBI customer for creating a Buddy account. The money transfer process is convenient, quick, and seamless.

5. Oxigen:
Oxigen is an RBI certified bank money transfer app. It was India’s first non-bank wallet which tied up with the NPCI for its operations. The bank to bank transfer is done via IMPS (Immediate Payment Service) or NEFT. It can also be used to make bill payments and for online shopping.

5 advantages of online mobile recharge

Using a mobile phone is now becoming a necessity in India. A mobile phone is not just used to make and receive calls, but for all kinds of transactions online. Ever since smartphones have been introduced, it has condensed the whole range of internet on to the phone.

With the increase in online transactions and online shopping, it was natural that online mobile recharge should also catch on. Online recharge is a popular and convenient way of refilling phone credits. It is now possible to do it through different apps from telecom providers, or it can be done online. It is also possible to do mobile recharges offline, through various offline merchants, but recharging it online has some advantages over doing the same offline.

Here are 5 advantages of online mobile recharge:

1. Convenience:
Getting an online mobile recharge is convenient more than anything else. There is no need to get out of the house, find a merchant who offers mobile recharge facility, especially in times of need. Getting an online recharge is immediate and instant. Whether it is done through the app or on websites, it is quick and convenient.

2. Cashbacks and other benefits:
There are a lot of different types offers and benefits that are offered by websites and apps for getting an online mobile recharge.  Whether it is cashbacks, or vouchers, wallets and other apps give a lot of benefits. Sometimes there are lucky draws for coupons that can be redeemed on shopping websites.

3. Can be done using any mode:
The best part about online recharge is that it can be done through any mode of e-payment. It can be recharged via credit or debit card, Net Banking, or Mobile banking. This flexibility means recharge can be done depending on the mode that is convenient in times of need. If for some reason, the transaction doesn’t go through via Credit or Debit card, it can be done via net banking.

4. Can be done for multiple mobile numbers:
Since the recharge is completely online, it can be done for multiple mobile numbers. It can also be done multiple times for one mobile number. There are no limitations on online mobile recharge. However, one transaction pertains to one mobile number. After one transaction is completed, another transaction can be done for another mobile number.

5. Recharge for different providers:
Most apps provide mobile recharge for a number of telecom operators. It is possible to recharge one mobile number from one operator followed by another number from another operator. There are no limitations on the telecom operators available on an online platform.

4 things to consider before using a car loan EMI calculator

Every person dreams of buying a car. Purchasing a car is a matter of great prestige for a lot of people. But a car doesn't come cheap. Depending on the make and model, a car can cost anywhere between Rs. 3 lakhs to Rs. 60-70 lakhs. Not everyone can buy a car out of their savings. With the increase in car sales, there has been a rapid increase in the number of car loans. Applying for a car loan is very easy with quick approvals. Most lenders take repayment in the form of EMIs or equated monthly installments set over a short tenure.

Before applying for a car loan, it is beneficial to check the EMI burden once the loan has been taken. But before you use a car loan eligibility calculator, it is important to know the following things:

1.Cost of the car:
Before checking the EMI on the loan, it is important to know the cost of the car. A car EMI calculator needs the loan amount as an input which is why it is important to know the cost of the car that you are looking to purchase. Since the loan amount usually depends on the value of the car, this is an essential point to be considered before checking the EMI calculation.

2. Rate of interest on the loan:
The EMI depends on the rate of if interest for the loan. Different lenders offer different rates for car loans. If you have a good repayment capability and a good credit score, you can negotiate to get a better rate of interest on the loan. Since the EMI consists of interest on the outstanding principal, a car loan eligibility calculator takes the rate of interest into account as well.

3. Tenure of the loan:
Before you use a car loan calculator, it is important to know the tenure for the loan. Most car loan eligibility calculators have a range to which the tenure can be adjusted. Knowing the tenure of the loan by different lenders will help to find out the EMI. One more thing to remember in terms of tenure is that the higher the tenure on the loan, the lesser the EMI. This is because in the initial stages, majority of the EMI services interest on the loan and small amounts go towards principal repayment. If you have the finances to quickly repay a loan, the EMI burden will be higher.

4. Repayment capability:
Before using a car EMI calculator, it is important to check the state of your finances. A car loan EMI is a committed monthly repayment, which may be a strain if you already have other loan repayments to take care of.

5 things to know before applying for a forex card in India

The number of foreign trips that Indians are taking is increasing every year. Unlike earlier, when foreign trips were rare, almost every person takes at least one foreign trip in his lifetime. Carrying currency for such trips becomes a matter of thought. Many people find carrying a forex card more convenient as compared to carrying cash.

A forex card provides the convenience of a debit card but is pre-loaded with foreign currency. This provides plastic cash at the hand of the traveller. It is very convenient to buy forex cards. Most banks provide forex cards, and there are companies that offer forex cards online.

As with every other type of card, there are few things that must be taken into consideration before applying for a forex card.

Here are 5 things to know before applying for a forex card in India:

1. Different types of forex cards:
There are different types of forex cards:
• Multicurrency forex cards:
• Hajj card
• ISIC student forexplus card:
Depending on the traveller’s needs, he can buy forex card. If the person is travelling to only one country, he can load currency from that country, or a universally accepted currency like the US dollar, British pound or the Euro. If travel to different countries is planned, then multiple currencies can be loaded.

2. Charges on forex cards:
Each forex card has different charges associated with it. When applying for a forex card, it is best to select the card with the least amount of charges, and also which provides the best service. Some of the common charges are:

• Forex card issue charges
• Service charges
• Balance inquiry charge
• ATM withdrawal charges
• Cross currency charge
• Replacement fee
• Statement charges
These are standard charges for a forex card, but all banks may or may not charge them. When you buy forex card, check which charges the bank levies.

3. Rate of exchange:
The rate of exchange while loading and emptying the forex card is the prevailing market rate at the bank. This means when you buy forex card, the bank will charge their prevailing selling rate, and when you unload or empty the card, the bank will charge their prevailing buying rate.

4. Chip based security:
All forex cards have chip security and are encrypted. This means that whenever they are swiped, a pin will have to put in the point of sale machine. It provides an additional layer of security. This means when you buy forex card, you will have to set a pin for it.

5. Reloading of funds:
It is possible to reload funds remotely to the card if there is shortage of funds. This money can be loaded on the forex card online.

5 reasons why you need an NRI bank account

When you’re thinking about moving abroad, there are a lot of considerations to be taken into account. One of the most important points that need urgent attention is banking.

Whatever country you decide to move to, opening a bank account there will be a matter of necessity. But that begs the question of what happens to your accounts in India. That’s where NRI accounts come into picture.

An NRI bank account is a bank account maintained in India by NRIs. These accounts have features that set them apart from normal banking accounts. These accounts can be used to maintain income earned in India. They can also be used to earn higher interest on foreign incomes. It is possible for you to open a fixed deposit account, by opening a Foreign Currency Non Resident (FCNR) account if you want to earn in foreign currency on your deposits.

The different types of NRI accounts are:
1. Non Resident External (NRE) account
2. Non Resident Ordinary (NRO) account
3. Foreign Currency Non Resident (FCNR) account

3 reasons why you need an NRI bank account are:

1. They can help to earn income on Indian assets:
Non-Residents can convert their regular savings account to an NRE account. This NRI account is useful for accumulating income earned from sources in India, such as interest income on investments, dividend income, rental income. Since non-residents are not allowed to hold normal savings accounts, they need an NRI bank account to ensure there is an account to accumulate all such earnings. It is possible to repatriate from this account once tax has been paid on the income earned.

2. It allows you to invest your foreign earnings in India:
For a non-resident to invest foreign earnings in India, they need to accumulate the earnings in an NRO account. If you plan to invest foreign funds in the stock markets, or purchase property, the right way to do it will be to open an NRO account. Having this NRI bank account will help you collect your funds from abroad and invest them in different investment avenues in India.

3. Non residents cannot maintain a regular bank account:
As per Foreign Exchange Management Act (FEMA), a non-resident is not allowed to maintain a regular savings or current bank account. If you are planning to move abroad, you will have to convert your regular savings account into an NRI bank account. It is possible for an NRI to open different NRI accounts to fulfill different purposes. Once you become a non-resident, you will have to convert your regular savings account to an NRO account and open an NRE account for investment purposes.

What is an NRO account? It’s features and benefits

One of the questions that comes up when someone is planning to move abroad is what to do with his existing bank accounts. Usually, individuals open a savings bank account to pool in earnings from various sources. But while moving abroad, a question arises about what can be done with these accounts.

The answer to this question lies in an NRO account. NRO stands for Non Resident Ordinary account. These accounts can be of two types:

1. Non Resident Savings account
2. Non Resident Current account

What is a Non Resident Ordinary Account?

An NRO account is the equivalent of a standard savings or current account. It is a good way for the NRI to collect incomes earned in India. Some of the incomes that can be collected in this account are:

1. Rental income
2. Interest on investments
3. Dividends
4. Pension

Interest earned on funds in an NRO savings account are subject to TDS at 30% plus 3% surcharge. It is possible for an NRI to take advantage of the tax rate specified in the DTAA or Double Taxation Avoidance Agreement. But to take advantage of this rate, the NRI will have to furnish a Tax Residency Certificate (TRC), which can be obtained from the tax authorities of the country where the NRI is residing.

The income earned in an NRO account is not repatriable until a certificate is furnished from a chartered accountant specifying that tax has been paid on the income earned. Free repatriation from the account is restricted to USD 1 Million.

It is possible to open an NRO savings account jointly with a resident, or non-resident. By submitting a Letter of Authority, the NRI can allow a resident to operate the NRO account.

Benefits of an NRO account:

1. Easy and convenient access:
An NRO account can easily be operated from abroad. It can be managed by a resident if the NRI gives a letter of authority. Facilities like net banking are also available for an NRO account. It is easy to make payments from the account and to receive funds from different banks both in India and overseas.

2. Low cost money transfers:
Repatriating money from an NRO account is not a costly affair. It is possible to get competitive exchange rates for transfers.

3. Minimum balance:
The minimum balance to maintain an NRO savings account is Rs. 10,000.

4. Reduced TDS through DTAA:
By submitting a Tax Residency Certificate, an NRI can avail lower tax rates as per the relevant Direct Tax Avoidance Agreement.

5. Joint account holding:
An NRI can open an NRO account jointly with either an Indian resident or with an NRI. It provides flexibility in that respect.

5 innovative mobile payment apps

India is slowly moving online. With the increase in e-commerce companies and apps, transacting from a mobile phone is not a unique phenomenon. It is in fact convenient to use a payment app to ensure all bill payments are done in time.

It is not just making payments for purchases or bills, but even money transfers and banking has become mobile. There’s no need to even enable net banking because payment apps take care of payments between people. It is very easy to make payment using a mobile application.

There are several different types of apps in the Indian mobile ecosystem.

5 innovative mobile payment apps are:

1. BHIM-UPI:
UPI stands for Unified Payment Interface. This means that it is no longer necessary to use a bank account number and IFSC code to make payments. By simply creating a UPI ID, payments can be made between two parties. It is one of the most revolutionary mobile payment apps in India. The UPI app has a very user-friendly interface. The UPI payment app can be used to pay a wide variety of bills as well.

2. PayZapp:
HDFC Bank launched this innovative mobile payment app. One need not be an HDFC customer to use PayZapp. It is possible to link credit and debit cards from any bank to PayZapp and make payments from it. It is possible to use this app to shop online, book movie tickets, buy groceries, use travel portals and pay any types of bills.

3. Google Tez:
This is Google’s app for UPI. It is one of the most widely used mobile payment apps in India with a very minimalist interface. It makes transferring money very convenient between two parties. Using a UPI ID, Tez transfers money between two parties. It is also integrating bill payments in the system.

4. PayTM:
PayTM was one of the first wallet companies to start in India. It gives users many options such as online shopping, booking air tickets, movie tickets, and paying bills etc. PayTM made it simple to transfer money from one mobile number to the other, either directly or via QR code. It is possible to use PayTM to make payment directly to a bank account.

5. Vodafone m-pesa:
This mobile payment app supports cash withdrawals by the user. It is a very dynamic app that can be used to send money to people. The money sent via the app can be withdrawn or received at one of the many m-pesa agents across the country. The app is very simple to use and is configured for laymen. It can also be used for typical wallet functions such as payment of bills, recharge, online shopping etc.

Personal loan: It’s benefits and types

One can never anticipate when the requirement for funds may arise. Getting a loan for these expenses, such as wedding expenses, or home improvement expenses, is not easy. Different types of loans involve hassles, lengthy documentation requirements, and slow loan approvals. In such cases, a personal loan is the best choice.

A personal loan is an unsecured loan. It is one of the best loan instruments. If you’re applying for a personal loan, you don’t need to put up any collateral. Speedy approvals make it easy to get an instant personal loan.

Benefits of personal loan:

1. Quick disbursement of funds:
Funds from instant personal loans are quickly disbursed. After a personal loan is approved, the funds are disbursed within 4 hours for some lenders, up to 7 days for funds to get credited.

2. Online account access:
These days, it is possible to get an instant personal loan online. Right from application, to approval, to loan management, every aspect of the loan is online. This makes it very convenient to access account details at any time.

3. No restrictions on fund use:
The best quality about personal loans is that there is no restriction on fund use. The funds can be used for whatever purpose you want. You can use it for personal expenses, or business expenses. These loans do not come with  conditions.

4. Rate of Interest and Tenure negotiable:
If you show strong repayment capability, you can negotiate with the lender on the rate of interest and tenure.


Types of personal loan:

1. Personal loan for weddings:
These loans are given out to meet expenses arising on a wedding. In India, weddings are a costly affair. If you’re planning an elaborate wedding, an instant personal loan can be a great option to get funds for the wedding. Since the disbursal of funds is quick, apply when you need the funds.

2. Personal loan for education:
In case a standard education loan falls short of the expenses you need for education, then a personal loan is the best option. These loans are offered at attractive interest rates.

3. Personal loan for travel:
If you’re planning your dream vacation and need funds, a personal loan is the perfect loan for you. Depending on your eligibility, you can avail the best personal loan from among the different options available.

4. Personal loan for home improvements:
If you’re planning to renovate the house, you can take a personal loan to meet any shortfall of expenses. Since the approval for personal loans is speedy, apply as close to your fund needs as possible.

5. Personal loan for other purposes:
A personal loan is an excellent option for other requirements such as business expansion, medical emergencies etc.

Top 5 travel insurance policies in India

Travel is uncertain, filled with risks. Visiting an entirely new place is exciting, but is also risky. For all the expenses incurred on travel, especially foreign travel, having it go awry because of unpredictable situations would be the worst, especially without insurance. Incurring medical costs is a big burden in India, and to incur these costs when you are travelling abroad is a huge hit to the pocket.

That’s why buying a travel insurance is of great importance these days. Travel insurance covers a range of losses during travel such as:

• Trip curtailment
• Trip cancellation
• Accidental death and dismemberment
• Accident & sickness medical expense reimbursement
• Dental relief
• Emergency medical evacuation
• Repatriation of remains
• Baggage delay
• Loss of baggage
• Loss of passport
• Flight delay
• Hijacking
• Theft of baggage, documents

Depending upon the insurer, the number of risks covered are added or subtracted. With travel insurance, you don’t have to worry in case of emergencies. At least to the extent of insurance, medical and other costs are covered.

Choosing a good insurance plan is very easy these days. There are several insurers providing comprehensive insurance plans. Buying travel insurance online is very convenient, and based on the sum assured and the items covered, you can choose the best travel insurance policy.

To make the choice of buying travel insurance easier, here is a list of the Top 5 travel insurance policies in India:

1. HDFC Ergo Travel Insurance:
HDFC Ergo has a wide range of travel insurance plans for people in the age group of 6 months to 70 years. They even offer student travel policies, annual multi trip policies and family floater policies that cover the applicant, spouse and children. HDFC Ergo offers cashless hospitalization. It is easy to get this travel insurance online.

2. Tata AIG Travel Insurance:
Tata AIG is one of the largest travel insurance companies in India. They provide travel guard plans, student travel plans, asia travel plans and domestic travel plans. They cover most of the losses during travel and also provide accident and hospitalization cover.

3. Bajaj Allianz Travel Insurance:
Bajaj Allianz covers individuals, senior citizens, and families travelling. It provides enhanced medical coverage up to $5,00,000 and $1500 as emergency cash. It has cashless hospitalization and can be purchased online.

4. Bharti Axa Travel Insurance:
Bharti Axa provides single trip and multi trip insurance for individuals and families travelling multiple times a year. It covers all the losses during travel, and medical expenses.

5. Religare Travel Insurance:
Religare offers comprehensive travel insurance plans. It has different plans based on location the individual or family is travelling to: Asia, Africa, Europe, and Canada. It has Explore Gold and Explore Platinum travel insurance for worldwide travel.

Electronic fund transfer: Its types and benefits

Electronic payments have become the norm, especially after demonetization. Banks offer several different options for transferring funds online. Such transfer of funds online is called Electronic Fund Transfer.

Electronic fund transfer is the transfer of money without the involvement of bank staff. Fund transfers can be done across multiple banks or in the same bank.

Types of Electronic fund transfer:

1. National Electronic Fund Transfer (NEFT):
This is the most popular mode of electronic funds transfer. In NEFT, transactions are settled in hourly batches throughout the day. The beneficiary has to first be added before money can be transferred. Banks may set daily limits for NEFT transactions. Charges for NEFT typically depend on the amounts transferred. NEFT fund transfer can be done either online or at the bank branch.

2. Real Time Gross Settlement (RTGS):
RTGS is a type of electronic fund transfer used for high value transactions. A typical RTGS transaction amount is above Rs. 2 lakhs. Each transaction via RTGS is settled individually which means the funds transferred are immediately credited to the other party’s account. The RTGS system is maintained by the RBI.

3. Instant Money Payment System (IMPS):
IMPS is a type of electronic funds transfer system started by the National Payments Corporation of India (NPCI). IMPS involves a mobile money identifier code, which when input, allows the user to transfer money. IMPS is available 24x7. It is now possible to transfer money directly via IMPS by using bank account number and IFSC code.

4. Unified Payment Interface (UPI):
This is also a type of electronic funds transfer system started by NPCI. To use UPI, a user has to create a unique UPI ID and set a code. While making a transfer, the user has to input the UPI ID of the recipient and the decided code and funds are transferred immediately.

5. SWIFT remittances:
These remittances are interbank transfers between countries. They are used for foreign exchange remittances.


Benefits of Electronic fund transfer:

1. Reduces time taken to make payments:
Electronic fund transfer is convenient and payment usually gets credited on the same day.

2. Hassle free process:
It reduces the effort taken to transfer funds. There is no need to personally visit the bank.

3. Provides a trail for payment:
All electronic fund transfers leave a trail on their transfer. This makes it easy to access the records from the bank and find out details about payments.

4. Cost effective to transfer funds:
Transferring funds has become very cheap using electronic fund transfers. The transaction costs for NEFT are almost negligible as compared to the time and effort to personally deposit cheques. UPI is a free mode of transferring money.

How does car loan EMI calculator work?

What is a car loan?

A car loan is a loan where the funds are used for purchase of a car. There are three types of car loans:

• New car loans:
These loans are taken to buy a new car. Up to 100% of the value of the car is given out as a loan.

• Pre owned car loans:
These loans are for buying a pre-owned car. Some lenders provide up to 100% finance on the value of pre-owned cars as well.

• Loan against car:
In this type of loan, funds are raised keeping the car as collateral. These loans are like personal loans, which mean there is no condition for use of funds.

Most lenders work out an EMI system for repayment of car loan. Before you apply for any type of car loan, it is beneficial to use an EMI calculator for car loan, which will help you estimate the monthly outgo to repay the loan. Only if your financial capability is good enough to absorb the monthly outgo on loan repayments should you apply for a loan. This can be ascertained from a car loan EMI calculator.

How does the car loan EMI calculator work?

The formula for calculating EMI is:

P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]

Where:

P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of loan in years

The car loan EMI calculator does not display this formula or its calculation. When you input the loan amount, the interest rate and tenure, it shows the monthly outgo or the EMI. Some car loan EMI calculators also show an amortization or repayment schedule for the loan.

The EMI consists of interest on the outstanding principal amount and principal repayment. During the initial period, the interest burden is more and towards the later part of the tenure, the principal repayment is more.

To find out the EMI, you have to input 3 things in the calculator:

• Loan amount you intend to borrow
• Rate of interest for the loan
• Tenure or duration of loan

The best part about an EMI calculator for car loan is that you can change any one input and observe the changes in the EMI. For example, the loan amount can be increased or decreased depending on the model of the car. The rate of interest can be changed depending on the interest charged by the lender. Thus a car loan EMI calculator helps to find out which lender’s loan will be beneficial in terms of EMI outgo.

There are many EMI calculators for car loan available online. Using them is beneficial while planning to take a car loan.

What is NRE account? Its features and benefits

While considering a move abroad, one of the considerations is what is to be done with assets in India. There are strict rules on sale and repatriation abroad in normal course. And if an NRI wants to invest in India, he can’t open a regular savings account to manage spends. For such transactions, an NRI will have to open an NRE account online.

NRE stands for Non Resident External account. An NRE account can be of two types:

• NRE Savings account
• NRE Current Account

An NRE account helps to conveniently repatriate funds abroad. It is also an account to pool in foreign earnings to invest in India.

Features of an NRE account:

1. An NRE account has no restrictions on repatriation of funds. The funds in the account and the interest earned on it can be repatriated at any point of time without any certificates from accountants.
2. This account is maintained in Indian Rupees. The bank where an NRE account is opened will convert foreign exchange into Indian Rupees at the applicable foreign rates.
3. Interest on NRE savings account is paid quarterly on the balance in the account
4. Funds from an NRE account can be transferred to another NRE account for bonafide purposes. It is possible to open an NRO account with the funds in an NRE account.
5. Foreign earnings deposited in an NRE account can be used to invest in Indian assets such as shares, mutual funds, provided the NRI fulfills other requirements.
6. An NRE account can be opened jointly with another NRI. It is not possible to open this account with a resident
7. However, a resident with a proper mandate/letter of authority can manage the NRE account.
8. Funds from sale of assets can be pooled in the NRE account and repatriated after payment of applicable taxes on them.


Benefits of an NRE account:

1. Tax free interest:
The interest earned on an NRE account is tax-free. However, interest may be chargeable to tax in the country the NRI is residing.

2. Easy operability:
Operating an NRE account is very convenient. Most NRE accounts come with NetBanking and PhoneBanking operations. It is even possible to open NRE accounts online.

3. Convenient repatriation:
There are no limits on funds that can be repatriated from an NRE account. The funds that have been brought from abroad and invested can also be repatriated after paying applicable taxes on earnings. The repatriation is done at market exchange rates.

4. Low minimum balance:
The minimum amount to maintain an NRE account is Rs. 10,000. This makes it very convenient to open an NRE account online since the funds required to maintain the account are not huge.

Bank account and its types

In today’s times, having a bank account is one of the essential requirements. A bank account represents funds that an individual keeps with a financial institution with the explicit understanding that these can be withdrawn at any time. A customer can go to the bank at any time and withdraw cash from his account. A bank account also gives customers other services such as direct payments, depositing cheques and drafts to receive payments, drawing cheques to make payments among others.

A bank account can be opened both online and offline. The offline procedure is to personally visit a bank, collect the account opening form, complete the details, and submit the form with the required documents.

The online bank account opening procedure is a lot simpler. Most banks have online forms that have to be filled up, and the relevant documents can be uploaded online. Some banks deliver cheque books and a welcome kit to the customer’s residence in a few days. These days, it is not only private banks, but several public banks also have online bank account opening for new customers.

There are different types of bank accounts that can be opened depending upon the needs of the customer. It is best to find out the features of each account and pick the one that best serves the customer’s needs.

The types of bank accounts are:

1. Savings:
This bank account is usually opened by individuals and hindu undivided families as a place to park their funds. Savings bank accounts earn a nominal rate of interest. These accounts offer fund withdrawal, debit cum ATM cards, cheque processing, and other facilities. Most banks offer net banking facility for savings bank accounts. Savings bank accounts have to maintain a minimum balance. If the minimum balance is not maintained, a certain charge is applied.

2. Salary:
Companies open salary bank accounts for employees who may not have bank accounts. It is also possible to convert a regular savings account to a salary bank account.  A salary account is similar to a savings account, except it has no minimum balance requirements. To make this account attractive for the employees, banks offer employees instant salary credits, phone banking, free internet banking, and other facilities. These facilities and benefits are not uniform and are offered depending on the company that opens salary accounts with the bank.

3. Current:
This is the most popular account for companies and businesses. This account does not restrict the number of transactions in a day. The charges for services on current accounts are lesser than savings account. No interest is paid on current accounts. Businesses can take overdraft facility to help with working capital needs.

7 things to know before getting a car loan

Buying a car is a like a dream come true for many people. With the ease of getting car finance, it is very tempting to buy a more expensive car and service it with a car loan.

A car loan is a loan given by lenders to meet the cost of purchasing a car. The car can be a new car or a pre-owned car. The lenders usually hypothecate the car, which means the car is the security provided for the loan. Even though it is simple to apply for an auto loan, it is better to take this decision after due deliberations.

Here are 7 things you must know before getting a car loan:

1. Which cars do lenders give out car loans for:
Most lenders specify the cars they give loans for. Before applying, it is better to find out whether different lenders are giving loans for the car of your choice. It will save hassles while putting in an auto loan application if you know that the lender approves of the particular car model.

2. Which car would you like to buy:
Choosing a car is not an easy decision. Would you like to buy a hatchback or a sedan? Or put in extra funds and buy a utility vehicle? What is the final use for the car? Once the car is decided, there are different variants and models, which need to be decided. Knowing this will help while applying for car finance.

3. Interest rate:
The most important factor that has to be considered in a car loan is the rate of interest on the loan. Depending on the interest rate, the lender can be picked.

4. Whether you have the capability to repay the loan:
It is important to consider whether you have the finances to repay a car loan. If you are already paying a few EMIs, you should wait till you apply for a car loan. Having adequate income and income certainty is also a factor.

5. Whether buying a new car is beneficial or a pre-owned car:
This is one consideration. There is a huge market for pre-owned cars in India. If you want to buy a car but don’t have a large budget, you can consider purchasing a pre-owned car. Banks give car finance for pre-owned cars as well.

6. Other charges on the loan:
Along with interest, there are other charges such as loan processing fees, pre-payment fees. Before applying for auto loan, you should check and compare these rates from different lenders.

7. Down payment on purchase:
Most car dealerships have down payment facility. This reduces the loan amount and the interest repayments.

3 effective ways to use RTGS payment mode

Real Time Gross Settlement or RTGS is a form of electronic fund transfer in which transactions are settled real time. Each transfer is settled individually which means funds are credited immediately to the receiver’s account.

RTGS transfer is usually meant for high value transactions. The minimum transaction limit is Rs. 2 lakhs per transaction. There is no upper limit for the transactions, although individual banks may set limits depending upon the accounts.

RTGS transfers are processed continuously during RTGS business hours. The window for processing such transactions is from 9am to 4:30pm on weekdays and 9am to 2pm on Saturdays for settlement from RBI’s side. However, individual banks are free to set their timings for accepting an RTGS payment.

RTGS transfer is not available at every bank branch. Before opting for an RTGS payment, it is better for the customer to check that his bank branch and the receiver’s bank branch have RTGS facility enabled. A list of bank branches where RTGS is enabled is available on the RBI website.

One important thing to remember about RTGS payment is that RTGS is settled directly in the RBI’s books. This means the transaction is irrevocable and complete. It cannot be reversed.

There are 3 effective ways of using RTGS payment mode:

1. Internet Banking:
2. Before making an RTGS payment it is necessary to add the recipient as a beneficiary. Usually this process takes 30 minutes to register. To register a recipient, the bank account number and the IFSC code has to be input. Most banks send an SMS confirmation when the registration procedure is done. Following the registration, payments can be made. Banks set limits for payments for the first 48 hours after registration, following which there are no such restrictions for RTGS transfers.

Once the beneficiary is added, it is possible to do an RTGS transfer. Some banks send a One Time Password (OTP) as an additional security measure. Once the transaction is verified, the bank processes the RTGS payment.

3. Branch Banking:
In branch banking, the customer has to visit the branch, and fill an RTGS form. The bank checks the details in the RTGS form and then makes the payment.

The information required to make an RTGS payment is:

• Name of beneficiary
• Beneficiary’s bank and branch
• Beneficiary’s account number
• Amount to be remitted
• IFSC code of the branch.

4. Corporate banking:

Many banks have special channels for corporate customers. Corporate banking facilities provide RTGS transfer to corporates along with facilities like cash reporting, payments information etc. RTGS transfer can be done in bulk on these systems.

Best personal loans in India in 2018

In times of extreme cash crunch, or when funds are needed, one way to quickly avail them is through a personal loan. For funds such as for weddings, home improvements, business expansion, or medical emergency, raising funds through a normal route is time consuming. This is when a personal loan comes in handy.

The personal loan market in India is exploding with several lenders offering loans at attractive rates. Choosing the best personal loan depends on several factors, but the most important one is the lender. Finding a personal loan and a lender that matches your needs is a priority while applying for a personal loan.

The best personal loan depends on the eligibility criteria, the interest rate, the other charges related to the loan. These are the comparison points between different lenders, and not all lenders offer the same terms.

Here are some of the best personal loans in India in 2018:

1. State Bank of India personal loan:
SBI offers personal loans with the least pre-payment charges. They have a wide variety of personal loans available even to pensioners under 76 years of age. SBI’s vast network makes it easy to apply for a loan anywhere in the country.

2. HDFC Bank personal loan:
HDFC Bank offers the facility of instant personal loans. Approval for personal loans is quick. The loan amount can go up to Rs. 25 lakhs for salaried employees and Rs. 15 lakhs for self employed persons. HDFC Bank’s loan has zero hidden charges which makes it very transparent. These personal loans can be completely customized for the applicant.

3. ICICI Bank personal loan:
ICICI Bank offers personal loans at interest rates starting from 10.75%. Loans are disbursed within 72 hours of approval and they charge interest on reducing balance system.

4. Kotak Mahindra Bank personal loan:
Kotak Mahindra Bank’s personal loan is instant with approval in less than 72 hours. This instant personal loan offers interest rate benefits for employees from large organizations.

5. Axis Bank personal loan:
Axis Bank offers the best personal loan for people looking to prepay their loans because they do not have any prepayment charges for their personal loan. They also have liberal minimum income requirements.

6. Citibank personal loan:
This loan is the best personal loan for salaried employees. The interest rate starts from 10.99% for employees of reputed companies. Citibank gives out personal loans up to Rs. 30 lakhs.

7. Bajaj Finserv:
These personal loans are offered only to salaried employees. Bajaj Finserv loans are instant personal loans because approval can be given as quickly as 5 minutes. The loan procedure is entirely online.

5 ways how fixed deposits can help you save money

A fixed deposit is an investment option that provides a higher interest rate for keeping your funds blocked for a particular period of time. Fixed deposit schemes are available for as low as 7 days to 7 years, in varying periods of time. Depending upon your fund requirements, you can open multiple fixed deposits that mature at different points of time, and provide you funds with interest.

The amount put in a fixed deposit account is locked in till the time the fixed deposit matures. This means, unlike a savings account where money can be withdrawn at any period of time, the amount that you invest in a fixed deposit is locked in and cannot be accessed till the time it matures. It is possible to break the fixed deposit in case of emergency, but most banks charge a penalty for doing that.

A fixed deposit is crucial because it not only earns interest income but also saves money for the person opening a fixed deposit account.

Here are 3 ways fixed deposits can help you save money:

1. It can be opened for amounts as low as Rs. 1,000:
Fixed deposits command a higher interest rate than savings accounts. This makes it beneficial to park funds in them, even if the amount is low. Since fixed deposits can be opened for amounts as low as Rs. 1,000, you can park funds in multiple fixed deposits of short durations, to earn extra income. Opening a fixed deposit will also help you save money and earn interest income on it, as compared to spending it on discretionary items.

2. Tax deductions:
Investment in certain tax saving fixed deposits gets a deduction under Section 80C of the Income Tax Act. Many banks have tax saver fixed deposit schemes. If you invest in these schemes, you can get a deduction in Income Tax up to Rs. 1.5 lakhs. 

Depending on your investment in other tax saving instruments, such as life insurance, Public Provident Fund, National Savings Certificate, you can invest a suitable amount in tax saving fixed deposits.

3. TDS is deducted only if interest is above Rs. 10,000:
Banks deduct TDS on your fixed deposit account if the yearly interest crosses Rs. 10,000. Till the time this limit is reached, no TDS is deducted. You can open a small fixed deposit and earn interest on it without having tax deducted. However, the interest earned on fixed deposits has to be considered in the total income at the end of the year. That means you have to pay tax on fixed deposit interest income. The only benefit is no tax will be deducted on it in advance.

5 reasons why college students should have a credit card

College students are young adults who are starting their lives. A college student may or may not be studying in his hometown, which is why it is beneficial to have a credit card. There are many different types of credit cards, and depending on the expenses that a college student incurs, the best card can be chosen.

A credit card is a way to spend without immediately paying for it. The money spent is due to be paid monthly to the credit card company. To many people, owning a credit card before they take a job is foolish. But there are benefits of giving a college student a credit card.

Here are 5 reasons why college students should have a credit card:

1. Helps to establish a credit history:
Regular transactions and repayments on credit cards help to establish a credit history with the credit card company. After a period of time, the college student will become eligible for those types of credit cards that will give him better offers, such as cashbacks, easier loans, insurance cover, discounts on bill payments, and the like. Also, these regular transactions build up the student’s credit score, which helps later on in life while applying for loans.

2. Teaches college students about financial prudence:
One of the most important reasons why a college student should be given a credit card is so that they learn how to spend and save. Though it might be tempting for the student to spend the entire credit limit, with proper guidance, the student can learn the importance of spending for the right reasons and saving the rest in case of emergency. Some of the best credit cards in India offer student variations of their cards which are linked to their parents cards.

3. Helps to avail cashback and credit card points:
Regular transactions with credit cards builds up credit card points which can be redeemed for a range of transactions, such as airline miles, reward meals, and other benefits. Some of the best credit cards in India offer upgrades and fee waivers to loyal customers.

4. Helps to provide cash in emergencies:
Having a credit card can help to provide cash in case of emergencies. Cash can also be loaded on the card in case the limit has been reached. This provides security to the college student to spend up to a certain limit in case of problems.

5. Can take loans against credit cards for big purchases:
There are different types of credit cards that offer loans on purchases, especially on consumer durables. These purchases can be converted to EMI so that it can be repaid gradually. This also teaches college students how to save.

Unified Payments Interface – All you need to know

After demonetisation, the focus was on digital payments, especially payments made through your mobile phone. To simplify this process, the National Payments Corporation of India (NPCI) introduced a seamless fund transfer mechanism called Unified Payment Interface (UPI).  Unified Payment Interface allows transfer of money between two bank accounts using the sender and recipient’s smartphone.

The UPI payment system works using the Instant Payment System or IMPS form to debit money directly from the sender’s bank account and deposit money directly into the receiver’s bank account. Transacting via Unified Payment Interface does not require bank account and IFSC code to operate. This makes it simpler to manage payments.

How is it different from other payment methods?

UPI can be used to pay money to individuals and also to merchants who accept UPI payment for their goods and services. Presently, if you want to make a payment to anyone, you need his or her bank account details along with the IFSC code of the branch. This sensitive information has to be given out repeatedly to receive payments. The UPI payment system eliminates need for using a bank account and IFSC code.

Under Unified Payment Interface, you can create a unique ID by linking your email, bank account number and IFSC code. This ID will be unique to you, since it is a combination of your name, and the name of the bank. You can choose the name that will appear in your ID, thus avoiding duplication.

If you want to make payments using UPI, you just have to share your UPI ID with the person. There is no need to share sensitive banking details.

How can I start with UPI:

To begin using Unified Payment Interface, you need to download the BHIM app. Most banks also have their own BHIM apps, for example, HDFC, ICICI, Axis Bank, SBI, etc. have linked to BHIM. There are other apps such as Google’s Tez, PhonePe etc, which also work on the UPI payment system.

To begin using the UPI app, you need to register. While registering, you need to create a unique UPI ID. This ID will be linked to your email account and is editable. You can choose whatever you want this ID to be and it will be linked to your bank.

After this registration is done, you will need to set a UPI pin. This pin will be used to confirm transactions before they are executed.

How do I make a payment?
To make a payment, you click on ‘Make A Payment’ in the app. To make a payment, add the UPI ID of the recipient and confirm with your PIN. The money gets transferred automatically and immediately to the recipient’s account.

Bank loan and its types

A bank loan is one of the most popular ways to raise funds for different needs. Loans are typically of a longer duration and are repaid with interest. It is very common for a borrower to pay back the loan in installments. Each installment comprises of principal and interest and is repaid over a fixed duration.

The types of bank loans in India are:

1. Personal loan:
A personal loan is an unsecured loan. These bank loans are quickly disbursed and have a repayment period up to 5 years. Since these loans are high risk, the rate of interest is higher.

2. Home loan:
A home loan is one of the most popular loans in India. The funds are used to purchase a house. This is a secured loan, i.e. the bank secures the house purchased. The loan amount is given for a pre-decided percentage of the house value.

3. Consumer durable loan:
This bank loan is available for borrowers who want to buy consumer durables. Some banks even give up to 100% financing for purchasing these electronics.

4. Car loan:
This loan is available to people who want to purchase a new car. The new car acts as the security for the loan.

5. Two wheeler loan:
This loan is similar to the car loan, except that the two-wheeler purchased is the security for the loan.

6. Business loan:
These are unsecured loans meant for business expenses and working capital needs.

7. Loan against property:
This bank loan is availed by mortgaging property. The value of the property is assessed based on market rates.

8. Educational loan:
These bank loans are taken for higher education, whether in India or abroad. These loans have a moratorium, which means repayment begins a number of years after taking the loan.

9. Loans for professionals:
These are loans similar to business loans given to professionals like doctors, accountants etc.

10. Overdraft against salary:
This loan is given against salary accounts.

11. Gold loan:
This loan is given out based on the value of gold mortgaged with the bank. These loans don’t have a specified end use for funds.

12. Loan against assets:
These are loans given out against assets such as securities and rental receivables.

13. Government sponsored loans:
These are loans sponsored by different Government schemes. These loans can be availed for Rs. 5,000 too.

14. Rural loans:
These loans are given to farmers to fulfill their requirements.

15. Loan against securities:
These are loans given against shares, or government securities. These funds can be used for any purpose.

16. Loan on credit cards:
This loan provides an option to convert a large credit card purchase into a loan for simpler repayment.

All you need to know about FCNR account

Investing in India can be very risky for a non-resident because of the volatility in the exchange rates. With constant fluctuation in the rates of Indian rupee, it may not be beneficial for a non-resident to maintain accounts in India in Indian Rupees.

A Foreign currency account provides a secure option for non-residents to earn income in India without the risk of currency fluctuation. Some of these foreign currency accounts are:

1. Foreign currency non-resident (FCNR) account:
This is a foreign currency account where NRIs can deposit their foreign funds and earn interest income. It is like a fixed deposit account.

2. Resident foreign currency (RFC) account:
This foreign currency account is for returning NRIs who have permanently settled in India. It allows them to convert foreign exchange into Indian Rupees when they want.

What is FCNR account?

1. This foreign currency account is a fixed deposit account. It can be opened by:

• Depositing foreign currency or travellers cheques
• Transferring funds from abroad in freely convertible foreign exchange
• Directly remitting funds to the bank via wire transfer
• Transferring the amount from other FCNR accounts in other banks

2. Funds in an FCNR account can be in 6 international currencies:

• US Dollar (USD)
• British Pound (GBP)
• Euro (EUR)
• Japanese Yen (JPY)
• Australian Dollar (AUD)
• Canadian Dollar (CAD)

3. The funds in an FCNR account can be locked in for a particular period of time. Interest rates differ based on the time period for which they are invested. The minimum deposit tenure is 1 year.

4. The minimum initial deposit for FCNR account for various currencies is:

• USD = $1000
• GBP = £ 2,500
• EUR = € 2,500
• JPY = ¥ 7,50,000
• AUD = A$ 1,000
• CAD = C$ 1,000

5. Funds from an FCNR account can be repatriated on maturity, or it can be transferred to an NRE account. There are no limits on repatriation of funds.

6. The interest earned on FCNR deposits is tax free in India. However, it may be taxable in the country where the NRI is residing.

7. An FCNR account can be opened jointly with other NRIs. It is not possible to open an FCNR account with resident Indians.

8. Funds from an FCNR account can be used to open an NRO/NRE account.

9. It is possible to obtain a loan on the FCNR account balance. This loan can either be in Indian Rupees or in foreign currency. The loan can be obtained for any purpose other than:

• Relending
• Agriculture
• Real estate investment

10. It is possible to withdraw money from an FCNR account before the deposit matures. Some banks may not pay interest if the deposit is withdrawn before completion of 1 year.

5 steps to getting business loans

A business loan is a loan taken for the following purposes:

• Personal expenses
• Business expansion for example hiring more staff, investing in technology, purchase of assets
• Working capital needs
o Short term
o Medium term

A loan for business is an unsecured loan, where lenders sanction amounts up to Rs. 50 lakhs without security. These funds don’t come with any preconditions attached to the use of loans.

A major reason for availing this loan is the business loan interest rate. Business loans are given at lesser interest rates as compared to personal loans, and yet they offer similar if not more flexibilities. Getting a business loan takes a little more effort than a personal loan, but following these steps will ensure you can best utilize loan funds for the business. It will also ensure the business loan interest rate is the best.

Here are 5 steps to getting business loans:

1. Estimate the fund requirement:
The first step to getting a business loan is to estimate the funds that will be required. Whether it is for business expansion or for purchase of assets, knowing the amount that the business needs is the most essential part. There is no point in taking a loan for business and realizing the funds are short of the requirement.

2. Prepare a business plan showing where the funds will be used:
This document will be very useful in ensuring you get the loan for business. Estimating the requirement of funds is the first step, but if the loan funds are to be used for a variety of purposes, it is essential to prepare a document showing their usage over a period of time. This will show the lender that you intend to use the funds judiciously.

3. Check financial health of the business:
Before availing a loan, it is important to check whether the business has the capability to repay the loan. It is not advisable to use business loan funds for assets that take a longer term to generate returns. This will lead to capital getting blocked. It is better to take a loan when the business has some free funds to repay the loan as per the schedule.

4. Collect the required documents:
After estimating the fund requirements, the next step while applying for a loan for business is to collect the required documents. This means identity proofs, address proofs, income tax returns, business accounts, etc. The lender will use these documents to assess the loan amount.

5. Find the right lender:
Finding the right lender will depend on the business loan interest rate and other charges, you can select the lender and make the loan application.

7 things you must know about PPF

Public Provident Fund is an important savings instrument in India. It is the go-to investment for many individuals because of its tax advantages. But before investing in PPF account, you must evaluate whether it is suitable for you.

Following are the 7 things you should know about PPF:

1. It is an Exempt-Exempt-Exempt (EEE) form of investment:
The tax on an investment is considered at 3 different times:
a. On investment
b. When the investment earns income:
c. On maturity

Public Provident Fund has tax benefits at all three stages.
• Investment in PPF scheme gets a tax deduction up to Rs. 1,50,000 under Section 80C of the Income Tax Act
• Interest earned on PPF is exempt. Exempt incomes are not considered as taxable income of the individual.
• Withdrawals from PPF account after maturity are exempt as well.

This makes PPF an excellent investment since the incomes do not incur any tax. The interest on the PPF account is compounded, and hence a sizeable investment over a period of time can earn a substantial sum. This amount is wholly exempt which provides more funds in your hands, especially if you avail it at retirement.

2. The PPF lock in period is 15 years:
The minimum lock in period for PPF account is 15 years. After the period of 15 years, you can renew the account for 5 years at a time. There is no restriction on the number of times the account is renewed.

3. The minimum deposit every year is Rs. 500/-
To keep the PPF account active, a minimum amount of Rs. 500 must be deposited. You can deposit a maximum of Rs. 1.5 lakhs every year in a maximum of 12 installments. 

4. You can take a loan from your PPF balance:
You can avail loan facility from your PPF account after the third year up to the fifth financial year. For example, if you opened your account in 2010, the lock in period would start from 31st March 2011. You will be eligible for a loan on 31st March 2014, for the next 3 financial years. The interest on this loan is 2% above the PPF interest rate.

5. PPF allows partial withdrawal of up to 50%:
When funds are needed, you can withdraw up to 50% of the balance in PPF account. This facility becomes available after the 7th financial year.

6. The PPF interest rate depends on the Government bond rate:
The Government declares the PPF interest rate every quarter.

7. PPF is backed by Government of India and cannot be attached:
PPF scheme is fully guaranteed by the Central Government. The courts cannot attach it in proceedings. However, the Government can attach PPF account to recover taxes.