All you need to know about forex cards

Travelling has become part and parcel of everyone's life nowadays. Be it for business or leisure purpose; travelling is no more an arduous journey fraught with peril. While the travel category is keeping pace with technology and convenience, the way you pay your expenses overseas has also changed over time. Enter forex cards. 

What are forex cards?

Also known as prepaid cards, is slowly becoming a fad amongst the frequent travellers. A forex card is just like a debit/credit card that you can swipe and use at any merchant as well as ATMs abroad. These cards are loaded with multiple currencies that differ from bank to bank. It is a successor to travel currency cards. You can apply for a forex card online as well.

There are two different kinds of forex cards:

1) Single-currency forex card: You can only preload one particular currency in the card. You can reload the card as and when required.

2) Multi-currency forex card: You can preload the card with multiple currencies. There are different cards available under this category that banks, other institutions and travel agencies offer to the customers

Some of the forex card benefits are:

1) They are cheaper than exchanging currency. Even banks enjoy the perk of supplying a forex card as the customers receive better conversion rate

2) In this case, you need not share a great rapport with the bank. You can choose from an array of forex cards  as per your suitability

3) They are safer than carrying hard-cash. These cards come with  inbuilt pin and chip. Forex cards are also not connected with your bank account. So, it is a secured means of finance as well

4) One of the important forex card benefits is that if the card gets stolen, you can use the extra card given to you  by the bank via the kit. However, you first have to file a report of theft post which you can use the spare card  

5) Forex cards are universally accepted and recognised

6) You can block the card as you return from your trip. You can then unlock it when you travel to another country. This is done free of cost

7) You have dedicated customer care assistance in case of any query

When applying for forex card online or offline, you have to have the following documents handy:

1) Application form
2) Passport original as well as a copy
3) Visa copy (if you are travelling to many countries)
4) Copy of the air ticket
5) PAN card

A forex card is a boon for travellers who are looking for a fitting  and secure way of making payments abroad.

What is health insurance? 5 advantages of taking a health insurance policy

Today, we are constantly running to earn money, become a wealthy person and lead a fulfilled life. But in this rat-race, we ignore our health. This negligence takes a toll on our body and the next day we find ourselves in the hospital. With hospitalisation comes the tension of expenses. Thus, to avoid last-minute loan and borrowing money from near & dear ones, people are opting for a health insurance plan.

What is health insurance?

It is a policy that protects you from unforeseen medical costs that you or your family member may require. All insurance compani  es offer health insurance in Indi     a. They reimburse the medical expenses incurred by you when you fall ill. You also get repayment of the amount in case of surgeries, common diseases,   or anything that take you to the hospital.     
         
There are different types of health insurance plan available catering to various segments such as senior citizens, women,  minors, family, personal, and others. They are, however, dependent on factors such as age, amount, etc. The mandate for a health insurance scheme is usually 1 year. You can also buy a plan for 2 or 3 years, based on your requirement and budget.
 
What are the benefits of  health insurance in India?

1) Protection: The most significant advantage that you receive by taking up   health insurance in India is protection. Apart from safeguarding your body, it also pays your health debts and provides additional benefits like counselling, body check-ups, etc. These other coverages are  free of cost.     

2) Savings: Many times we have to use our savings and monthly salary to cover our hospitalisation costs. That becomes a burden on our home budget. If you seriously fall ill, the price may seem burdensome.   This is where a health insurance plan comes as a saviour. You will get complete treatment, without worry about the expenses.  

3) Monetary aid: At the time of emergencies, we generally look up to our family members and friends for some financial help.   But the insurance companies offer cashless treatment so that you or your family member get the attention on time. You do not have to wait until the cash accumulates to take care of the urgent situation.   

4) Top-up plans: These are like additional covers that you can use to settle the remaining hospital dues once your initial sum exhausts. To avail of the top-up schemes, you have to pay extra premiums. It is better to get them when you apply for your primary   health insurance plan.  

5) Critical illness: Some health insurance in India also provide coverage for dangerous diseases like cancer,     paralysis, kidney-disorder, diabetes and others. The insured is free from the stress of hefty costs. Again, these require you to pay extra premiums.
 
These are certain benefits that may guide you to opt for the right health insurance plan. Remember, do not compromise on your health.

8 unknown facts about NRO accounts

When you settle abroad, the question that arises is what you will do with the existing accounts? Usually, any savings account that you held in India would be ineffective as your foreign earnings cannot be stored in these accounts. So, how will you protect the  hard-earned cash that you have got in India and where will you save your upcoming income? The only option that you have is to opt for the non-resident Indian (NRI) accounts that the banks offer. 

These accounts are of two kinds:

1) Non-resident External (NRE) Account 
2) Non-Resident Ordinary (NRO) Account

What is an NRO account?

It is similar to a current or savings account. It is the best account to vouch for to save your incomes in India. You can either open an NRO savings account, NRO current account or an NRO recurring account. Some banks also offer debit cum ATM card for NRO accounts. The type of cash that you can keep in the NRO account are:

1) Rental costs
2) Investment interests
3) Pension
4) Dividends

The interest that you earn on an NRO account is  subject to tax. Unlike an NRE account, you cannot repatriate until a chartered account provides a certificate for the same. You can, however, open a joint account with an Indian or an NRI. You can open the account with an Indian resident only after submitting a letter of authority.

Some of the unknown facts and NRO account features are as follows:

1) The account follows only Indian currency policy.
The sole credit allowed in an NRO account are:  

- Rupees coming from a non-resident account
- Remittances in acceptable currency coming from outside India via regular banking   
- Valid dues of the account holder like rent, pension, interest, etc.

2) An NRI can withdraw cash from the NRO account. The amount should not exceed USD 1 million per annum. 
3) You cannot repatriate the balance in the NRO account without prior permission from Reserve Bank of India (RBI)
4) You can opt for the nomination policy under the NRO account
5) You or the third-party person are subject to loans by the banks against the fixed deposits. The terms and conditions may vary from bank to bank
6) Facilities such as net banking can be availed of for an NRO account
7) You have to maintain a minimum balance of INR 10,000 per annum in the account
8) You can get lower tax rate on this account by submitting the Tax Residency Certificate

You have to handle your finances well before leaving abroad for employment. It helps your family members to access the income during an emergency.

7 features and benefits of mobile payment apps

Since the demonetisation took place on November 8, 2016, there has been an increase in the usage of mobile payment app. Many apps have emerged as the biggest gainers during the demonetisation period. They have built a stylish interface, have made them more user-friendly, and are constantly updating their apps with new features. The mobile apps are adding over 1 million users each day after the demonetisation event.

But what makes these payment app unique and stand out from the traditional banking experience? Following are the benefits and features of using them:

1) Accessibility: A mobile payment app is really easy to use, for starters. All you have to do is go to your phone’s app store and download the desired e-wallet. You then have to create a user ID and password to login to the app. You can then transfer funds, pay utility bills or recharge your phone, on the move.

2) Moving of funds to bank account: Apps like Payzapp, allows you to transfer funds in 4 simple steps. You have to:
- Click on pay/send option
- Select the bank icon
- Enter the recipient’s account name, account number, IFSC code, amount and account type
- Your payment is made in just a click

3) Reloading cash: It is also easy to reload some money using the net banking, credit card and debit card. You can also store these details in your mobile payment app, which makes the process hassle-free for further use. You can also make a transaction instantly that way.

4) Split bill: Some payment app has the split the bill feature. You have to enter the amount, the reason and the phone numbers of the people with whom you will split the bill. A payment link will be sent to the number of people you have added, and they can pay it off through their app.

5) Flexibility: The best part about mobile payment apps is that you can recharge your DTH, mobile phone, broadband, buy air or bus tickets, etc. You can also use the apps at your Kirana shop for purchasing your day to day things. Indeed, mobile payment apps have come a long way.

6) Chat messenger: You can also chat with the customer care via your payment app. Some are also connected with WhatsApp and Facebook Messenger. That makes it easier for you to transfer money through your WhatsApp contact list. The format for it is: type ‘150FC’ to the concerned beneficiary’s number and INR 150 is transferred to the person.

7) Incentives: Another important benefit of a mobile payment app is that you can avail of the discounts and deals which the app runs on a regular basis. They also have cashback offers in association with some banks. Make optimum use of the promo codes.

With hosts of benefits and features, there is no second thought on why you should not have a payment app on your smartphone!

5 unknown facts about educational loan

Studying abroad is a dream of every child. Given a chance, they would love to go to their favourite university overseas. Scholarships and grades do come in handy in reducing the cost of the university fees. But what about the remaining amount?  Your savings would not help here, considering the value of the education has  increased manifolds over time. Educational loans can only bail you out from the scenario. 

What is an educational loan?

Educational loans are given to meritorious and deserving candidates, generally. They are offered by banks and non-banking financial companies (NBFCs). With the help of the loan, students can pursue their undergraduate, graduate, post-graduate, professional and doctoral courses efficiently. Unlike the personal loans, you can start repaying educational loans once you start earning.

If you want to take an  educational loan for abroad studies, you have to be aware of certain facts concerning the loan. They are:

1) Covers additional expenses: There is a common misconception that an educational loan takes care of only the tuition fees. False. An educational loan also manages your costs regarding accommodation, books, flight tickets and even day-to-day expenditure.    

2) Subsidised loans: In case your family's annual income is INR 4.5 lakh, then the government provides a subsidy.  The moment you start paying your equated monthly instalments (EMIs), the government pays the interest on your behalf. So, you only have to pay the actual loan amount. However, there are some points to remember in this situation:

- It is not an interest-free loan as the bank still earn the same amount of money

- The subsidy service is applicable for only students who wish to study in India

3) The overseas factor: If you have taken an educational loan for abroad studies, there are chances you will find a job and start earning in dollars in that country. This way your credit gets cheaper as  the depreciating value of Indian rupee will work in your favour. 

4) Tax-benefits for parents: Most of the educational loans come with tax benefits. As per the Section 80E of the Indian Constitution, you can earn a tax deduction  for a total equal to your interest amount. It lightens the load of your parents’ shoulder. Note that you can use this deduction only to pay off the interest and not the principal amount. 

5) No pre-payment charges: The best part about an educational loan is that no penalty is levied on pre-closing the loan amount. However, you can do so only after a stipulated period, i.e. after 6 months.

Now that you are aware of the benefits you earn from educational loans; the following are some points to keep in mind before applying for one: 
 
1) Always look for loans that have zero margin
2) Since you can apply for loans online, check the interest rate offered by other lenders
3) Look out for universities that are linked with certain lenders
4) Repay your educational loan after accessing your future earning capacity

A one-stop guide to the international travel insurance policy

Travel makes you live and enjoy your life to the fullest. Let us admit; travelling makes us happy. However, there is one hindrance. You or your family members may be at risk, especially when you travel abroad. Someone could meet with an injury or a deadly accident. You could lose your belongings. This could turn your dream holiday in a different country into a nightmare. You will have to take necessary measures against them. Therefore, there should be no second thoughts on getting travel insurance.

When you purchase travel insurance, you should be well-versed with its policies. This article explains every aspect in detail.
 
What are the eligibility criteria to get international travel insurance?

Whether you opt for an individual or a family floater plan, the following conditions should be fulfilled:

1) Senior citizens: Those who have completed 85 years, can insure themselves under this policy
2) Students: If you are an aspirant heading for further studies abroad, you should be 16 to 40 years to avail of student international travel insurance plan
3) Primary travel insurance  : If you are looking for business or family holiday, you should be 3 months to 60 years old to apply for a regular travel insurance plan
  
Agents, generally, offer you 3 types of travel insurance policies:

1) Student travel insurance: If you are heading overseas to pursue your studies, you subscribe to this plan. It will cover your accommodation and day-to-day purchases

2) Business travel insurance: All your business travel requirements will be covered under this scheme

3) Holiday travel insurance: This scheme protects you and your family from accidents, theft, etc.

What are the benefits of going for an international travel insurance  policy?

1) Cancellation: In case you have to cancel the trip due to certain circumstances, the insurance company pays the expenses incurred in planning the trip. The travel insurance company also bears the bills that were paid to  third-party company. 

2) Baggage loss: If you lose your baggage, the insurance company pays the entire amount. You also receive compensation if there is a delay  of baggage. You get an allowance to purchase essential stuff  as may have been mentioned in the insurance's terms and policies. 

3) Loss of travel papers: You have to keep your documents such as passport, etc. securely in the foreign land. You will fall in trouble if you lose them. In this case, the insurance company assist you by providing new travel documents.

4) Accident: If you face injury or death due to an accident, the insurance company will compensate for the same. Your nominee will get the financial benefit.

5) 24*7 assistance: You can reach your travel insurance company at any point of time  on their customer care number. The staff members will sort out your issues by either speaking the country’s language or help you with the local conditions. 

In a nutshell, an international travel insurance policy is affordable and comes with hosts of advantages. You can avoid losses and overcome your stress concerning finances by opting for the best insurance plan.

NEFT fund transfer – everything you need to know

There was a time when sending money from one account to the other was a tedious task.  Whether in the same or another city, you had to take the cheque with the desired amount and put it either in the drop box or get it done manually through a bank representative. And the movement of money took an eternity.  Fast forwarding to 2018, transfer of funds is just a matter of minutes.  All thanks to a money transfer system called – National Electronic Funds Transfer (NEFT).

What is NEFT?

It is an electronic system by which you can move money from your account to any other bank account in a safe and hassle-free manner. All NEFT transfer is done batch -wise. You can send money to any bank that is NEFT-enabled. Not just individuals, but also firms and corporates can move funds with the help of NEFT.

For using the NEFT system,  you have to enter specific beneficiary details:  
        
- IFSC code
- Payee name
- Beneficiary’s account number
- Bank branch

A step-by-step process of NEFT: 

The NEFT transfer is done only online. You have to follow the procedures:

1) Login to your net banking site using your customer ID and password
2) Click on the ‘transfers’ option on the homepage. You will find 3 choices here: transfer within the bank, transfer to other bank and transfer via card. Choose the desired option
3) Include all the deta ils mentioned  above of the  receiver. Post that you will get a one-time-password on your phone to confirm the beneficiary’s details   
4) Generally, it takes 24 hours to activate the recipient’s account
5) Select the NEFT mode and enter all the recipient information again inclusive of the amount and the reason for transferring cash
6) Confirm and submit. The recipient will receive the amount in 1-2 working days

What are the timings  for NEFT transactions?

All NEFT transfer is done on an hourly basis.  Usually, 6 and 8 batches operate on a weekly basis. However, they are done within a specific time: 8:00 AM to 7:00 PM (Monday to Friday) and     8:00 AM to 1:00 PM on Saturdays (except for the second and fourth Saturday of the month). This NEFT money does not get credited on bank and public holidays as well.  
    
What are the NEFT charges associated with the transaction?

If you are transferring an amount below INR 10,000, no charges apply  to the  sender. However, if it goes beyond the said amount, the following are the fees:
      
Note: These charges are subject to change

Transaction Amount
Amounts up to INR 10,000
NEFT Charges
INR 2.50 + Applicable GST

Transaction Amount
Amounts above INR 10,000 and up to
NEFT Charges
INR 1 lakh INR 5 + Applicable GST

Transaction Amount
Amounts above INR 1 lakh and up to
NEFT Charges
INR 2 lakh INR 15 + Applicable GST

Transaction Amount
Amounts above INR 2 lakh and up to
NEFT Charges
INR 5 lakh INR 25 + Applicable GST

Transaction Amount
Amounts above INR 5 lakh and up to
NEFT Charges
INR 10 lakh INR 25 + Applicable GST

To know more information about NEFT system, you can visit the Reserve Bank of India (RBI) website.

Car loan EMI calculator – everything you need to know

Everyone wants to get their hands on the latest shiny set of wheels  and unlock a new milestone in their life. However, in India owning a car is a costly proposition, one that demands high dependence on banks and other financial institutions. Enter car loans. They are the means to make your dream a glorious one in the most friendly, affordable and hassle-free manner. By tick marking aspects like income, credit history and financial stability, you can be the owner of a brand-new car.  

What is car loan EMIs?

Lenders provide a car loan at an attractive interest rate  which the borrower repays in equated monthly instalments (EMIs). Car loans are secured loans where you have to keep your bike as collateral until the end of the repayment tenure. If you fail to pay the money on time, the lenders will sell your bike and cover the amount. 

To avoid these complications, you can use the car loan EMI calculator that is available on all the lenders' websites.  It helps you manage your monthly budget.

How does the EMI calculator car loan function?

Three parameters determine if you are eligible to get a car loan:   

1) Principal amount: It is the overall loan amount that the lender sanctions. The higher the amount, the higher the car loan EMIs

2) Tenure: You can choose your mandate. It is the period taken to repay the loan amount. The longer the tenure, lesser the EMIs 


3) Interest rate: It is the additional amount you pay to the principal loan.   The interest rate may vary from person to person. This is where your credit history and income come into the picture. The higher the rate of interest, the higher the EMIs. 

A car loan EMI calculator assists you in the following ways:

1) It lets you determine if you are eligible to take a car loan. If not, you can work on bettering your credit history and apply for the same
2) By entering the primary loan amount, you can get comprehensive information
3) You can use the car loan EMI calculator numerous times as it helps you make an informed choice 
What are the benefits of car loan EMI calculator?
1) You receive immediate results by entering the details mentioned above
2) Conventionally calculating your EMIs  could lead to erroneous conclusions.   With the EMI calculator, you will receive an outcome quickly   
3) Most of the lenders’ EMI calculator car loan is free of cost   
4) It also helps you in comparing other loan options as well

Thus, before applying for a car loan, you have to carry out your research thoroughly. This way you can narrow down to an affordable option.

What is an NRE account? What are its benefits?

Moving abroad for employment is a huge milestone. After persistent effort and rigorous hard work, you finally achieve your dream of settling overseas. However, that is not your ultimate goal. You still have to think about your future regarding family, children, etc.    So, what are your investment options?  

India boasts of a high savings rate. As a Non-Resident Indian (NRI), you might want to consider the options in India as it is beneficial for you and your family back home.  But before divulging the investment options, how do you classify yourself as an NRI? You should have completed staying in the overseas country for at least 182 days to be termed as an NRI. Also, you should possess a PAN card for indulging in any of the investments.

Banks in India offer NRIs plethora of investment options. Before opting for any of     them, you need to have a bank account to carry out all the financial dealings. Under this category, NRIs are presented with 3 choices:    

1) Non-Resident External (NRE) Account
2) Non-Resident Ordinary (NRO) Account
3) Foreign Currency Non-Resident (FCNR) Account
Considering you and your family would need money in Indian currency, the ideal option would be an NRE account.

What is NRE account?

NRE accounts are either savings, current or term deposit accounts. You can keep your foreign earnings in the form of Indian rupees. Also, the interest that you earn through this account is  tax-free. The account holder can also repatriate the money anytime from the account.
 
What are the NRE account benefits that you can enjoy?

1) Tax-free account: The reason an NRE account is a high yielding investment option is because the interest earned through this account is tax-free. Even if you hold some income in India, they would not be counted in your taxable income.

2) Minimum balance: One of the important NRE account benefits is that you can maintain a balance as low as INR 10,000. Considering several banks are offering an NRE account, the minimum balance requirement has dropped drastically over the years.

3) Interest rate: The best part about holding an NRE account is that you earn high-interest rate. This could, however, vary from bank to bank. You receive the interest on a half-yearly basis. If you check the third-party websites, you can conduct a competitive analysis to see which banks offer a high-interest rate.

4) Joint account: Another crucial advantage of owning an NRE account is you can open it jointly with another NRI, i.e. with your wife or your children.

5) Mandate holder: You can appoint a mandate to handle your account on your behalf. He/she could be anyone from your family or your friend. Banks, generally, provide chequebooks and ATM card to the mandate holder. Most of the times, NRIs select their parents as mandate holders.

An NRE account is a unique investment option that offers you a plethora of advantages and  streamlines your finances appropriately.

How to open a bank account in India?

The first question that arises in the minds of the salaried employees is what to do with the left-over cash from their first income. Should I invest them in the form of fixed deposits or mutual funds or the stock market? Should  I deposit them in a bank account that is easily accessible? If you know you might require the funds at the time of emergency or for day-to-day usage; then bank accounts are the ideal option.

However, it is not just depositing money and withdrawing them. You have to prepare a bit and give it some thought. Banks in India offer different types of bank accounts such as savings, current and salary. There is also a bank account for various segments like women, children, senior citizens and NRIs.

The bank jargons are not as intimidating as they may seem to be. Following are the steps to open a bank account in India:

1) Eligibility: You have to fulfil specific bank terms and conditions before opening an account.    Some of the criterions are:
  
- You must be an Indian citizen
- You must be 18 years old and might require your parent’s signatures as a consent
- You should have a minimum amount of money to invest in the account. The amount could vary from bank to bank

2) Banks: Not all banks follow the same principle when it comes to bank accounts. Ensure to seek information from your local bank   to understand the type of account they offer, their features, etc. You could also know from your elders which bank follows a hassle-free application process. Banks are generally categorised as large chain banks and the local ones. The large chain banks are spread out in different cities and towns. The local ones are known to offer personal and human experience. They tend to be friendlier.   

3) Bank account: Now, select the type of bank accounts you want to invest in. They could be either current or savings. Each of these accounts boasts of various characteristics. A current account is useful if you will need cash for daily purchases. A savings account comes handy during a medical emergency or for fulfilling your long-term goals. You can also check the aspects of such accounts online before approaching the bank.

4) Documents: You need to have your files in place if you want the application to get approved immediately. The essential ones are:

- PAN card, Aadhaar, passport, driving license, voter’s ID, ration card, etc. These are used as your ID and address proofs
- You also have to furnish your employment details like payslips, ITR papers, etc.
- Application form
- Recent photographs

5) Open the account: Visit the bank branch and open the account. Those who are opening an account for the first time should visit the bank and get it done. The  advantage   of doing so is that you can clarify your queries instantly.  The bank representative also approves your application quickly.   Depending on the type of bank, you can also open bank account online or over the phone. By opening the account online, you can scan and upload the documents. If you open it via phone, the bank representative collects the papers.     

6) Account essentials: Once the bank approves your application, they will send you all the papers related to your bank account such as debit card PIN, your bank account number, etc as a part of the kit. If you find any error in any of the details, contact your bank representative right away.

Follow these 6 simple steps and streamline your finances today!

What is a car loan? What is the document required for salaried and self-employed professionals?

A four-wheeler was considered a luxury item in the olden days. It was more of unlocking a milestone as you would have to shell out lump sum money without any financial aid such as loans. Today, possessing a car has become a necessity. With different types of models being introduced by automobile companies almost every day, the costs of these four-wheelers have increased and almost inaccessible for lower as well as the middle-class segment.

You need a car for your daily work commute, duties or leisure. Therefore, considering the rise in the price and new cars, banks and other financial institutes have started offering loans for the same. You can either opt for a personal mortgage or a  car loan.
  
What are car loans?

Known as four-wheeler loan, is a secured loan where you have to keep your vehicle as collateral. Based on the type of vehicle, the lenders offer you the loan amount. In this case, the interest rates are less as you provide security to the lenders. If you do not repay the loan on time,    the lender will sell off your car to cover the loan amount.  
 
To get  the loan, you have to fulfil certain conditions. The car loan requirements are: 

1) You must be an Indian national to apply for the loan
2) You should be a salaried, self-employed or business owner to avail of a car loan
3) The minimum age to apply for the loan is 21 years. The maximum limit is 65
4) Salaried employees should be in employed in their current job for at least a year. On the other hand, self-employed professionals should be operating their existing business for minimum 2 years 
 
What car loan documents should the salaried and self-employed people produce to the lenders?

Lenders seek for various documents from the applicants mainly to gauge their credibility and repayment capacity. Most of the lenders prefer to provide loans to individuals who are creditworthy. For this purpose, lenders check the applicants' credit history and  financial profile. Some of the components could vary from borrower to borrower. The car loan documents are slightly different for salaried and self-employed professionals. They are as follows:

1) Salaried employees:
• ID proof such as Aadhaar, PAN card, driving license, passport, voter’s ID, etc.
• Address proof like Aadhaar, PAN card, passport, utility bills, life insurance policies, ration card, etc.
• Age proof comprises of  birth certificate, school certificate and likes
• Income proof should include your last 3 months payment slips, past 6 months bank statement
• Signature proof
• You will also have to show the proforma invoice that contains the price quoted by at the time of purchase of the car. The car loan amount will be based on the cost of the vehicle 
 
2) Self-employed professionals:
• ID proofs such as Aadhaar card, PAN card, driving license, passport, voter’s ID, etc.
• Address proofs like Aadhaar, PAN card, passport, utility bills, property papers, ration card, etc.
• Age proofs include birth certificate, school certificate, Aadhaar, etc.
• Your bank statement should be of past 6 months
• You have to show your previous 2 years income tax return. Besides, you also have to furnish the   documents such as audited balance sheet, profit and loss statement, etc.  
• Office proofs like maintenance bill, utility bills and business registration copy
• You will also have to show the proforma invoice based on which the loan amount would be provided

These are some of the car loan documents required to get your loan quickly. If each of these is in place, then car loans are the ideal solution.  If you are unsure about the documents, you can always call the lender's customer care number for reconfirmation

5 benefits of student forex card

Getting through the coveted university calls for celebrations. However, it is after the news is sunk in that we realise the actual work is yet to begin. From to-do list to arrangement of documents, everything has to  be settled. But we forget the foremost thing – finances. How are you going to manage food, entertainment, tuition and other such expenses?  
This is where a student forex card comes into the picture.  They offer numerous facilities that make students life easy.

What is a student travel card?

Apart from the homesickness issue, students face several financial challenges. They also have to follow a certain protocol  when studying abroad. A student travel card covers all the prerequisites. They are offered by all banks and some non-banking financial companies (NBFCs). Some lenders charge a nominal fee of INR 100-250 while some provide it for free.

These cards cover the following expenses:
- Day-to-day purchases abroad
- Flight tickets
- Accommodation
- College fees

However, countries like The United States of America (USA), The United Kingdom (UK), Canada and Australia allow limited withdrawals from their ATMs in one go. Some banks charge for withdrawals.

The benefits of carrying a student forex card along are:

1) No exchange rates: Students can get past the fluctuating exchange rates as they are fixed at the time of purchase of the card. Nevertheless, you will have to keep a tab on the prices when you   are preparing for your travel. When the currency of that concerned country is strong, you can lock your rate as that would be considered the same when you conduct transactions there. 

2) Wide acceptance: Student travel cards are widely accepted in the international online merchants. You can use the card for your stay and paying the college semester fees. You can even shop at the most luxurious mall overseas by just swiping the card, and all this include no exchange rates.

3) Reload the card: With the invention of the internet and smartphones, it is possible to reload the forex card on the move.  All you need is relevant balance in your account for seamless transaction abroad.

4) Security: Imagine a scenario where you have lost your cash, especially when you are in abroad to study? Scary, right? The reason why ISIC forex card eliminate that fear is that it is not linked to your bank account. Also, it is encrypted with a pin and chip that makes it  all the more secured means of managing finances.   

5) Replacement cards: Another crucial benefit of owning a forex card is that banks offer a replacement card in the starters kit. You need to first block and report on the stolen card.  Then you can continue using the replacement card. 

HDFC Bank offers ISIC student  forexplus card that gives you a wide range of discounts on food,   travel, accommodation, etc. You can also reload it anywhere, anytime. To enjoy a stress-free educational experience abroad, apply for a student forex card today!

What is life insurance? 6 types of insurance policies

When it comes to financial planning, you are presented with an array of options to choose from. Most of the people in India are moving to a nuclear family concept. Insuring you and your family members takes precedence over everything else. Agents offer different types of life insurance policies to their customers. Before learning in detail about each of them, let us understand what a life insurance policy is and what is its significance. 

What are life insurance plans?

It is a shield that protects your family even after your death. It provides lump sum money to the nominees of the policyholder. It also keeps the financial plans of your family on track.

What are the types of life insurance policies?

When you ask about life insurance policies to your agent, be prepared to receive an avalanche of information. As mentioned above, the primary function of life insurance is providing protection. However, some plans allow you to plan your future and helps in building your wealth. The types of life insurance plans can be classified as:  

1) Term life insurance: This plan provides a death benefit to the beneficiaries only if the policyholder dies  during a specified period. If the insured person lives on beyond the time frame, you cannot make a death claim. It acts as an income replacement for a few years and is affordable.  It is further broken down into 3 parts: 
- Level term life insurance
- Decreasing term life insurance
- Increasing term life insurance

2) Whole life insurance: It offers your coverage throughout your lifetime. But the policy should be an on-going one. It also consists of a cash value that can increase over time. You can either withdraw the cash value or take a loan out of it.

3) Endowment policy: One of the important life insurance plans is the endowment policy where the amount is payable to the insured, in case he/she is alive until the maturity date. It is a long time financial as well as a savings plan.  If the insured dies during the policy term, then the nominees get the   bonuses, participating profit, etc. 

4) Savings and investment plans: This policy assures you a lump sum money for future expenses. Apart from fulfilling your long and short-term goals in the form of savings, it also offers you an insurance cover.

5) Retirement plans: It is the means through which you receive income during retirement. It helps you build a retirement corpus. Upon maturity, these plans are invested for generating regular income that is termed as a   pension. They are further divided into: 
- With cover or without cover plans
- Immediate annuity plans
- Deferred annuity plans   

6) Child insurance policy: One of the types of life insurance plans that parents are investing upon nowdays is child insurance. It meets your child’s future financial requirements. From the time your child takes bir   th, you can start investing.  Once the child turns 18, you can withdraw the savings. Some insurance plans do not allow immediate withdrawals at specific intervals  
  
So, life insurance plans are not about fulfilling yours and your family’s day-to-day expenses. It is a way to aid your family financially after the death of the breadwinner. It is recommended to opt for two different types of life insurance plans at various phases of life.

How fixed deposits help you save money

Whether you are a salaried employee or a self-employed professional, saving some amount of money is crucial. However, saving cash is easier said than done. Most of the time you end up splurging all the money. This could pose a threat in the future, especially during emergency situations. It is always a smart decision to save some expenses. Banks and other financial institutions offer you an array of investment options such as fixed deposits, mutual funds, market share, etc.

All the above options may sound good, but for beginners a fixed deposit account proves beneficial. How? You get to save your surplus amount securely, especially if you are looking for long-term investment.

What is a fixed deposit?

It is a type of term deposit that is considered to be the safest investment option available in the market. You can invest for 7 days or 10 years. A fixed deposit investment is deemed to be superior   to  a savings account purely because you earn higher interest that is  credited on a monthly, quarterly or annual basis. However, you have to invest your entire amount in one go.  If you wish to withdraw the cash before the tenure, banks and other financial institutions charge you a penalty.    
 
How do you save money through fixed deposit account?

1) You can save money for an  extended period without having the chance to withdraw  
2) You receive guaranteed returns on your investment
3) If you incur any loss in your business, the fixed deposit investment acts as a cover. Banks offer you 70 to 90 per cent of the amount in the account as a loan
4) There is guaranteed cash flow as you earn interest at maturity or annually or on a monthly basis at discounted rates
5) You have the freedom to choose your mandate. It could be anywhere from 7 days to 10 years 
6) You can make investments in various fixed deposit account based on your life events. They will mature on the tenure date you have chosen
7) You also receive a credit card against your fixed deposit. Banks and other financial institutions offer you 70 to 90 per cent of credit towards your fixed deposit amount
8) If you get loans and credit cards against your fixed deposit account, your interest rate remains unaffected
9) As per the Income Tax Act of 1961, you are eligible for a tax deduction   if the fixed deposit investment amount is up to INR 1 lakh for 5 years under section 80 C 

If you open a fixed deposit account, you will have no access to money for a specified period.    Take a call on opening one keeping in mind your financial status and profile.

Credit cards – its features and benefits

We live in a world where people are more connected over smartphones and chat messages than maintaining human relations. From hiring a cab to purchasing groceries, everything can be done online. India could very well become the second       largest online retail market in the next few years, as per reports.  Debit cards, credit cards, digital wallets and net banking are some of the modes of payments used  on these e-commerce websites. So, which one should you go for?
 
Most of these merchants run special discounts and offer on specific credit cards on a regular basis.  Some cards also provide reward points for shopping. Before we understand the features and benefit of credit card, what and how does it work?
 
What is a credit card?

They are plastic cards that offer hosts of goodies to the customers. You can borrow money to make purchases such as ordering food, booking tickets, etc. You, however, have to ensure to repay the amount before the next billing cycle starts. If you miss out on your payment, it could dent your finance history as interest will be applied on the same. Else, credit cards are a boon for those who do not wish to carry hard cash everywhere.

What are the credit card features?

Generally, features are dependent on types of credit card offered by the banks. Some of the basic ones are:

1) Global acceptance: Indian banks issue credit cards that are international today. They can be used to remove cash from ATMs, in e-commerce websites and  other merchants overseas. 

2) Transfer of balance: One of the best credit card features is that you can transfer your outstanding balance to the credit card account of the other bank. This way you save money and have to repay low-interest rate. 


3) Instalment repayment option: In case of hefty dues, banks offer you the option of payment via instalment, i.e. EMIs. You can choose your tenure and pay the desired amount on a monthly basis. They also come with attractive interest rates.

4) Loans: Banks also provide you loans on specific credit cards at a low-interest rate .      


5) Alerts: With the help of mobile banking, you can schedule your bill payments. You will receive the alert before the due date either over SMS or on your e-mail every month.

Apart from these features, they carry certain perks as well. The top benefit of credit card is:

1) Rewards: With every credit card transaction, you receive few reward points. The points that you get on your card is fixed and varies from card to card. You can retrieve these in the form of gift card  s, discounts, cashback offers, etc.  

2) Lifestyle advantages: You can also get numerous other privileges on a credit card that includes dining,  shopping, movies, etc.


3) Travel: Frequent travellers can enjoy plenty of advantages such as air miles, discounts on duty-free shopping, travel insurance, airline offers, hotel deals, etc.

4) Offers on VISA/Mastercard/American Express credit cards: These three cards are recognised world over. Based on the  types of credit card, you can use them on e-commerce websites or ATMs abroad.     

5) Add-on cards: Some banks allow customers to apply for an add-on card for their immediate family member. They do come for free, but you can apply for limited number of cards. Add-on cards carry the same primary benefits that a regular credit card comprise of.

Credit card eligibility is based on the kind of card you are applying for. It is also dependent on the bank. However, you must have completed 18 years of age and should earn certain income monthly.

The National Pension Scheme – A Retirement Plan for All!

When it comes to investment schemes, planning for your retirement should be on your top priority list. The Government of India launched the national pension system for the monetary benefit of its citizens. It is a retirement savings plan where both, employees and employers contribute towards building wealth which is then payable to the employee at the time of retirement. The programme is mainly designed to encourage systematic savings among citizens. The scheme was initiated on 1st January 2004 with a purpose of reforming the pension system in India and is said to be the cheapest market-linked retirement plan available in India.

Who is eligible for the national pension scheme (NPS)?

All citizens and state / central government employees falling between the age brackets of 18 to 60 years are eligible for investing.

How does the NPS work?

There are three types of national pension accounts that you can opt from and even make a switch over the years if you desire:

1) Tier 1- A non-withdrawable retirement account unless the subscriber reaches the age of 60. A subscriber has to contribute at least a minimum of Rs 6000 in a financial year for a Tier 1 account to save the account being frozen.

2) Tier 2- A voluntary savings option that allows subscribers to withdraw money. It is said to be an add-on to the Tier 1 account. The minimum contribution needed in Tier II is Rs 2000 annually. One must have a Tier 1 account to have a Tier 2 account

3) Swavalamban Account- The Government of India, contributes a sum of Rs 1000 every year over the early four years.

The applicant is required to appoint a nominee before investing in the national pension scheme. One can submit 3 nominees for the account. The applicant is allowed to change the nominees for the NPS account after obtaining the PRAN (Permanent Retirement Account Number), which is a twelve digit unique number provided to the applicant for the NPS account.

Offline account opening:

Several banks act as intermediaries that help you open NPS account, do the KYC and receive contributions on your account. You will be given a registration form to fill, and once the PRAN is allotted to you, you will obtain all relevant information and passwords regarding the account. The bank will charge you Rs.125 for account opening.

How can I access the national pension scheme online?

The e-NPS process began in 2015.
Visit

https://enps.nsdl.com/eNPS/NationalPensionSystem.html and select online registration.

Through Aadhaar card:

• For this method, your aadhaar card should be linked to your mobile number.
• Your registered mobile number will receive an OTP for authentication purposes. This will complete your KYC process.
• The data along with the picture will be extracted from the Aadhaar database
• The rest of the mandatory details have to be completed online by the applicant itself
• Upload your signature in jpeg format to complete the registration process
• For initial contribution to your national pension scheme online account, you can use Internet banking methods.

A guide on loan against property in India

Meaning:

The sudden urge for cash can leave us helpless. A loan disbursed against the mortgage of the property is known as the loan against property. The loan is sanctioned as per a certain percentage of the market value of the asset. Generally, banks offer up to 50 to 60% of the value of the property. The interest rate on loan against property is lower than personal loans. As your property is held as collateral with the financial institution, it is a secured loan. Failure to repay the loan, the lender has the right to auction your property and recover the credit.

Why should you apply for a loan against property?

• Fund your child’s education abroad
• For funding any medical emergency
• Wedding of your child
• Funding the dream vacation
• Capital for business expansion

What kind of property can be set for mortgage?

For a loan against property in India, you can mortgage a self-occupied house as well as a rented residential estate, or it can be a piece of land that you own. However, it is necessary that the title of the property should be clear.

Benefits of getting a bank loan against property:

1) Lower interest rate:
Often, the interest rates for loans against property are lower than that of personal loans. The interest rates for a loan against property generally range between 12% and 15% while personal loan the interest rate ranges are 15% to 25%.

2) Easy to get:
Banks are more than willing to sanction these loans as these are secured loans. Therefore, you won’t find it difficult to get the property loan.

3) Longer tenure:
Generally, the tenure for these loans is up to 15 years while the duration of the personal loan is only up to 7 years.

4) Unlock the potential of the assets:
You can generate quick funds by unlocking the potential of your asset through a loan against property and continue to retain its ownership as well.

What is the eligibility & documentation process for a loan against property in India?

The important eligibility factors for a loan against property are as follows:
• Income of applicant
• Credit score of the applicant
• Property type
• Property value

The bank would need the income documents and regular KYC documents (Photo ID proof and address proof) of the borrower. Also, the details of property papers that will get mortgaged with the lender and shall be returned post repayment of complete loan amount.

5 key benefits of buying car insurance online

With the increase of digital channels selling a variety of goods, a lot of consumers have switched to the internet to make all sorts of purchases. Thanks to the constantly increasing use of smartphones and apps, major financial institutions have ventured in the digital industry as well.

From conducting banking operations online to purchasing motor car insurance policies, banks are adapting themselves to the needs of modern customers. Hence to make an informed decision, we bring you some of the key benefits of buying car insurance online:

1) Free of middlemen:
Before the advent of the Internet, you would spend hours calling insurance agents to get rate quotes that you could compare. Dealing with agents can be a little troublesome as they might have their agenda to earn commissions. Buying car insurance online saves time and the hassle of paying hidden costs. You can simply pick out a policy and make the payment directly.

2) Convenience:
When you buy motor car insurance online, you can compare various options, read up reviews of users, and complete all the paperwork online itself. Through this, you can be sure of the reputation of the chosen insurance company and know how well they treat their customers if any incident occurs.

3) Security:
The online gateways of reputed financial institutions are secured, and there is hardly any chance of getting personal information being leaked. Selecting a policy provided by a well-known brand is more sensible, as they would have all their safeguards in place. While buying policies, consumers should also remember never to share their policy details with anyone online, posing as the company representative – they should only refer to the company’s official website and speak with the customer care agents listed.

4) Paperless transactions:
Policy paperwork can be often tedious and messy. The online facility of buying car insurance is quite simple and is down to minimal documentation. The processing of information is done instantly, and so is the issue of your policy. If you hold a netbanking account with the bank, you can access the digital wallet and store your documents in it. Through this facility, the policy documents are accessible 24*7.

5) Renewals and payment of premiums:
Timely reminders are provided to the policyholders so that they never miss out on making payments or renewing their motor car insurance policy, thereby ensuring that the plan does not lapse. Since everything is online, you don’t need to follow-up with agents during renewal.

5 pre-requisites of business loans

“Make in India” scheme by the Indian government has given rise to entrepreneurship in the country. Young minds are coming up with brilliant business ideas that are helping the Indian economy grow.  However, the struggle doesn’t end with great business ideas; you will need continuous cash flow to operate business operations.

To help you with it, major banks offer business loans. These loans aid you to accumulate sufficient capital investment and also for the working capital purpose. While there are many banks ready to provide business loan for start-ups, it is left up to you to understand what your actual requirements are. Based on them and ability to repay the repay amount, the loan should be taken from the bank.

We have listed down a few pointers to consider before you apply for a business loan in India:

1) Have clarity on your business plan:
Before sanctioning the new business loans, most lenders will ask you about your business plan. The blueprint of your plan will be a proof of how you will utilise the funds and your capability to pay back. A confident business plan can get you guaranteed business loans in a short span of time.

2) Build good credit:
If you plan to start the business operations in the next two years, then it is important to focus on building your credit and contacts. An applicant with good creditworthiness will get loan quicker with less documentation process and interest rates. To have a high score in your credit rating card, start paying your bills on time, stay away from the defaulter's list when it comes to credit card payments.

3) Documents:
The bank can demand a set of legal documents for business loan which includes:
• Proof of identity and address
• Statements of income, balance sheet, and cash flow information
• Franchise agreements
• Contracts by third parties
• Commercial leases (if any)
• Copy of registration, licenses for conducting the business

4) Security or collateral:
It’s a standard process of putting collateral or any valuable asset as a security for your business loans. In case if you fail to repay the loan, the lenders/bankers can seize the collateral and can get the loan amount recovered. Cash savings, deposits, business inventory, are some of the guarantee accepted by banks.

5) Choose the right lender:
It doesn’t matter if you are choosing a traditional bank or a private lender for your business loan, it is crucial that it suits your business needs. Banks have also made the process easier by allowing customers to apply for a business loan online through their official websites. You can check for your loan eligibility, and use business loan EMI calculator to understand the equated monthly instalment to be paid.

How to choose the right motor insurance policy?

Having motor insurance is a legal requirement in India. A car insurance policy ensures damage protection against damage to your vehicle and the third party. With ever-increasing incidents of on-road accidents in the country and strict government regulations, it is compulsory to buy motor insurance in India.

It doesn’t matter if you are 20-year old who recently learned driving or a motor enthusiast with a collection of cars, there is are motor insurance policies for everyone.

Following is a guide to find an insurance policy that suits your needs.

1) Third party insurance:

This is the minimum legal requirement of motor insurance policy. The Motor Vehicles Act 1988 has made it mandatory for all car owners to have this insurance, failure to do so can cause penalties. The coverage offered by this motor vehicle insurance plan includes protection to a third party for events such as injuries/death and property damage caused in an accident involving the insured vehicle. However, the third-party liability insurance policy does not offer own-damage cover, i.e., coverage for the insured vehicle or the owner-driver.

2) Comprehensive motor insurance:

The plan provides exhaustive insurance protection and is often referred to as a package policy. It encompasses both third-party liability coverage and own-damage cover. Details are as follows:
Own damage cover: You can claim the insurance during the following events:
• Personal accident cover including driver/owner
• Damages caused by natural disasters, such as earthquakes, floods, hurricanes, etc.
• Damages from man-made disasters such as strikes, riots, vandalism, etc.
• Theft of the insured vehicle

Third party liability: This motor insurance policy protects the policyholder from legal responsibilities to a third party from accidental injuries/death or property damage. The maximum amount of coverage under this insurance for injuries/death is unlimited. However, there is a cap of Rs.7.5 lakh on coverage for third-party property damage. The court decides the final claim payout for property damage.

3) Motor vehicle insurance add-ons:

Most motor insurance policies offer add-ons to enhance the coverage of the base policy you choose. Some of the details are as follows:

A. Engine protect cover:
Buying an engine protection cover offers to protect the vehicle from mechanical or electrical damages to the engine.

B. No Claim Bonus (NCB) protect cover:
NCB is the discount on the insurance premium that your insurer offers during the renewal of the policy. NCB benefits can only be availed if no claims were made in the previous year.

C. Roadside assistance cover:
This add-on motor insurance cover offers 24/7 protection to the policyholder from incidents such as flat tyre, fuel depletion, the requirement for expert scrutiny, etc.

How to get a loan against mutual funds?

Investments in mutual funds are crucial long-term securities. Depending on the type of fund you acquire, you may receive distributions of dividends, interest, capital gains or other income the fund earns on its investments. However, the financial crisis may attack any time. And it may not be a wise decision to withdraw the securities for financial aid.

Hence, most banks have initiated the facility of providing loans against mutual funds. The advantage of this initiative is that you don’t need to redeem your securities prematurely. The process is similar to an overdraft facility that banks offer.

You can avail loans against shares or mutual funds by approaching non-banking financial company (NBFC) or bank. The loan also ensures that your (Systematic Investment Plan (SIP) remains unaffected. For the bank to consider your credit request, you need to pledge your mutual fund units as security for the debt. The loan will be given based on the value of units in the folio and the tenure of your loan.

Eligibility and Documentation:

Individuals who are eligible for a loan against mutual funds include:

• Indian residents
• Non-residential Indian
• Sole proprietor
• Partnership firm
• Private limited company
• Member of a Hindu undivided family (HUF)

Note: Trusts and Minors are not eligible for loan against securities.

The following documents are required along with your loan application:

• Identity proof
• Address proof
• Signature Proof
• Proof of Income
• Bank Statement/Pass Book of last 6 months
• Latest statement of holding for mutual funds
• Pledge form for the creation of pledge
• Optional – Guarantor Form (Mandatory in case of joint holding
• If you are representing a company, you must submit your Income tax returns, an audited Balance Sheet and Profit & Loss Account for the previous two years.
Features and benefits of loan against mutual funds:
• You can get a loan up to 80% of the value of securities pledged
• You will be charged interest only on the actual loan amount you use. The interest rate will be calculated on the daily outstanding balance and debited to your account by the end of every month
• The loan process is transparent without any prepayment and foreclosure charges

How to apply for a loan against mutual funds?

Many online banking portals sanction loan quickly if you hold securities in the demat form. To avail the loan, simply log in to your Netbanking profile. Go to the Demat tab, click on Loan Against Securities, and select the shares that you'd like to offer as collateral from your Demat Account.

What are different types of savings account?

When you are building a financial plan for yourself, it is essential to be open and informed about all options. A savings account is one of the most basic and reliable financial products of all times.  With the introduction of the Jan Dhan scheme by the government, there has been a substantial rise in the number of savings account.

According to investment definitions, a savings account is an interest-bearing deposit account held at a financial institution that provides a modest interest rate, limiting the number of withdrawals. Often people open a savings account to keep money that you don't intend to use for regular expenses.
Here we discuss some of the common types of savings account that are available in the market:

1) Regular/Basic savings account:

This type of account is easy to open, maintain and offer quick access to your funds. There is no restriction on the amount to be deposited over a period. However, it is important to maintain a minimum balance in the account, and failure to do so can charge you to penalties.

2) Salary account:

A special account designed specifically for salaried individuals. A majority of employers deposit the employee’s monthly salary directly into this account. This type of savings account has a few additional benefits such as the “zero balance” feature, a free chequebook/draft every month or quarter and a higher interest rate on deposit amounts. However, the account changes to basic savings accounts if the account holder’s salary is not credited for 2-3 months consecutively.

3) Women savings account:

Only women are eligible for this savings account. The account features include discounts on shopping, cashback facilities on online products, insurance cover, higher interest rates.

4) Savings account for seniors:

Individuals over 60 years of age are eligible to open this savings account. The benefits for this account include a higher interest rate, a waiver of minimum balance requirements, free international debit card, insurance cover benefits and special offers on term deposits.

5) Kids advantage/Minor Account:

The minor savings account is for children below 18 years of age. You can open a savings account to secure their future. This account will help you build a corpus for your child’s security and teach them to manage money. In the minor account, usually, a parent or guardian has to be a joint holder. The benefits for this savings account include ATM/Debit card for children, Education Insurance cover Benefits and free netbanking.

With the power of the internet, you can easily apply online savings account with a bank to park your money. You can earn interest on the amount you deposit in your savings account and enjoy the flexibility. Prominent banks like ICICI, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank have developed 24*7 secure netbanking facility. You can efficiently conduct all bank operations without any hassles.

Planning to buy a home loan? Here is a checklist for you

Buying a home is considered a milestone in one’s life. But with real estate prices on the constant rise and financial crunches, many homebuyers are shifting to get home loans. Opting for borrowing is a step closer to fulfil your dream of owning a house.
Housing loans can be used for various purposes apart from buying your dream home. Some of them being the construction of a new house, renovation, purchasing a pre-owned house. Irrespective of your goal or profession, it is advisable to be aware of the loans you choose.

Following is a checklist for your reference to go through before you apply for home loan.

1) Income eligibility:
When banks decide to lend, they do it primarily on the monthly salary that you get in hand or your net income after tax and other deductions. You are expected to pay off the loan in EMIs. This monthly outflow is the primary factor that influences home loan.  It is advisable never to let your EMI exceed 40-45 % of your net monthly income.

2) CIBIL score:
Your credit score is one of the determining factors for your home loan. It is easier to get a home loan when you have a good credit score. Banks will consider your credit card usage, how you maintain your bank accounts, any cheque bounces, existing loans, existing uninsured loans, loan repayments, how many times you have applied for a loan or a credit card. If the results are satisfying, they will grant the loan sooner.

3) Interest rate:
Your home loan interest rate has an impact on the monthly EMIs you pay. There are two types of home loans based on the interest rate- floating and fixed.  If you opt for a fixed rate home loan, the EMIs don't vary over the loan tenure. In the case of a floating rate, the interest rate is determined based on the prevailing base rates plus a floating rate.  You can always switch amongst fixed and floating ROI during your tenure but check about the switching charge that banks may charge; these may or may not apply to your home loan type yet be sure of it.

4) Tenure:
The maximum home loan tenure offered by major lenders is for 30 years. The longer the tenure, the lower is the EMI, which makes it tempting to choose. However, it is advisable to go for shorter tenures that you can afford while filling the home loan application form.

5) Fees:
While applying for a home loan, you are expected to pay charges such as processing fee, legal fees and other administration charges to the lender. The processing charges range between 0.25% and 0.5% and vary from bank to bank. Ensure that you compare the fees of different banks before opting for a home loan.

Features of gold loans in India

Since ancient times, Indians consider gold as an auspicious metal. It holds a special emotional connect for most households and taking loans against gold is not considered a preferable option. The value of gold is continuously rising, and it makes sense to utilise its power. Most banking and Non-financial institutions have ventured in this space as they believe gold has a good capital appreciation rate.
In this loan, one has to deposit the household gold in the form of jewellery with the bank or financing agency and get a loan of up to 80 per cent of the value of the gold deposit. The interest rate for gold loans in India is much lower than that of personal loans.

Taking a loan against gold from NBFC or bank provides you with instant cash for most of the immediate expenses such as a quick family holiday, vehicle purchase, medical emergency etc. Here we have listed down few features of taking a gold loan from financial institutions.

1) Instant processing:

There is no such thing as unsecured gold loans. Once you submit the gold jewellery to the bank; the officials evaluate it and credit the loan amount to your bank account. The gold is kept as collateral with the lender. The minimum amount for loans is Rs 50,000/. Gold Loans for less than Rs 50000/- also available for rural markets. Most banks process gold loan within an hour, thus cutting down the processing and fund disbursal time.

2) Basic Documentation & No CIBIL score:

While most loans ask for Tax returns and income proofs, gold loans require basic documents such as:
• Passport
• Valid driving License
• Voter's ID Card
• Aadhaar Card issued by UIDAI
• PAN
 Even though you have a bad credit history in the books of account, banks are least concerned when it comes to gold loans. Therefore, if you are in urgent need of funds, try availing gold loans irrespective of bad credit score.

3) Digital application:

With the advent of digitisation, you can easily apply online for a gold loan instead of visiting the bank. Visit the bank’s official website and calculate the loan amount to borrow on the online gold loan calculators. You can fill the application form available on the site. After submitting the form, bank officials will get in touch with you through call or SMS concerning the application.

4) Convenience of repayment:

Borrowers get a choice to make onetime payment. It means a person can pay only the interest during the tenure of the loan. And pay the rest of the borrowed amount in a single sum at the end of the loan duration.

5 things to remember about PPF scheme

Introduced in 1968, the public provident fund is a savings-cum-tax saving investment vehicle. The scheme is one of the most sought-after investment plans to park your savings for retirement. PPF is a 15-year plan, which can be extended for a block of 5 years. You can open the account in a designated post office or a bank branch. One can open a PPF account in almost all Indian nationalised banks like SBI, Bank of India, and Central Bank of India as well as private sector banks like HDFC Bank, ICICI Bank and Axis Bank. 

Therefore, if you are looking for a safe investment option, you should consider opening a PPF account and earn guaranteed returns. Here are few details on the scheme:

1)    Tenure:

The PPF scheme is a 15-year scheme.  As per rules, the Public Provident Fund (PPF) account gets matured only after the completion of 15 years.   However, on maturity, the tenure can be extended for a block period of 5 years.  It can be done by submitting the Form H within one year from the date of maturity.

2) Interest:

The interest rates on the PPF scheme returns are set by government every quarter based on the yield (profits) of government securities.

3)  Investment limits:

The minimum annual amount needed to keep the public provident fund account active is Rs.500, while the maximum amount deposited in a financial year is up to Rs.1.5 lakh. If the contributions made in a year exceed Rs.1.5 lakh, the excess deposits will be treated as an irregular amount and won’t be eligible for tax benefits. The excess amount will be settled back to the subscriber without any interest.

4) Tax benefits

Under Section 80C of the Income Tax Act, 1961, PPF contributions made every year are eligible for tax deductions. The tax deductions are eligible only for PPF contributions up to Rs 1.5 lakh in a financial year. Interests earned on PPF deposits are tax-free, while wealth tax is not applicable on PPF accounts. Therefore, these accounts offer you triple exemption benefits – the deduction on deposits, tax-free returns and no wealth tax. To claim these benefits on your public provident fund account, you need to submit the details of the PPF investments made in a year in your income tax returns.

5) Premature closure of PPF account:

The PPF scheme allows withdrawals from the account only if it has completed five financial years. The retreats are also allowed on specific grounds such as treatment of serious ailment or life-threatening disease of the applicant, spouse or dependent children or parents, only after producing supporting documents from official medical authorities.

Skip the queue and apply for a personal loan online!

A loan that does not require any collateral or security and is offered with minimal documentation is considered as a personal loan. These funds from the bank or any non-banking financial company (NBFC) can be used for any financial need, but like any other loan, this one too must be repaid to the bank, in the agreed amount of time – be it months or years. The amount which can be used for anything from funding a holiday to paying for medical treatment needs to be repaid to the financial institutions in instalments.

Like most loans, there are different ways to apply for personal loan online. They are as follows:

-    If you have an account with the bank from which you want to take the loan, you can apply for personal loan online, through the bank’s website. Almost all banks – ICICI, HDFC, HSBC, SBI, etc. have sites with personal loan sections where if their users require personal loans, apply online. The bank will have a form in which you will have to fill in all your basic information and check your eligibility and even fill out the application form. Each user will also be required to attach scanned copies of their documents, to apply for personal loan online. This is only possible if the user has a net banking account with the bank.

-    Another way to apply for personal loan online is via email. You will need to email all your details, including the amount you want to borrow, and the bank will review your eligibility and respond to you.

-    To get a personal loan, apply through an ATM as this feature is now available at kiosks as well. Once the request for a loan has been raised, a relationship manager will get in touch and take it forward.

Once the online personal loan has been requested for, the application is processed your bank will verify everything from your address to credibility and financial information. Unlike other loans, there is no other collateral other than yourself, due to which the verification process is longer. To ensure smooth approval of the loan, your credit score needs to be 750 or more. If the bank has approved the loan and the EMI is not repaid, the bank will levy a penalty on the outstanding amount. If multiple EMIs are skipped, legal action can be taken.

Five benefits of investing in a two-wheeler insurance

Two wheelers are the easiest way to commute, especially on the traffic-congested roads of India. Cars take up too much space and are a much more significant investment and responsibility, so two-wheelers work as the best bet for most. With any asset, be it a two-wheeler a car or anything else, misfortune could fall and damage the vehicle in an accident or event of a natural disaster. Whatever the case, it is advisable for all two-wheeler owners to invest in two-wheeler insurance to cover the costs of any damage. One can even easily apply for a two-wheeler insurance online as it is mandatory for all bike owners in India.

Some of the benefits of investing in two-wheeler insurance are:

-    Bikes are susceptible to burglaries and theft since they are relatively easy to transport and move. In crowded cities that are more accident prone, bikes also get scratched and damaged. The two-wheeler insurance covers the service or replacement cost of the vehicle and makes it easier on the pockets of the vehicle owner.

-    When disaster strikes, there’s not much one can do about it but take shelter. Alas, our vehicles, if not protected, can get easily damaged. Two-wheeler insurance can come in handy at times like this and save you from heavy expenses that may occur during a fire, earthquake, flood, landslide, etc.

-    Having a two-wheeler insurance means that the owner of the vehicle does not have to bear the expenses of fixing the damages to the vehicle, property or surrounding in case an accident arises. The insurance ensures that the owner of the two-wheeler is free from any third-party liability, where the vehicle was part of the accident. This is one of the main reasons why insuring the two-wheeler is mandatory.

-    Investing in an online two-wheeler insurance ensures that the owner of the vehicle can avail discounts like a ‘no claim bonus’. Some insurance companies even offer great discounts on spare parts of vehicles which comes in handy if the bike is a luxury one and very expensive.

-    With the two-wheeler insurance also comes a sense of safety and security as it also helps in saving money on fines imposed and other more substantial expenses.

Some of the aspects that are not covered in two-wheeler insurance are the normal wear and tear of the vehicle, mechanical or electrical breakdown, depreciation of the vehicle over time and damage due to nuclear activity. Before getting your two-wheeler insured, make sure you go through the documents carefully to be clear on what you are signing up for.

What are the different types of credit cards available in the market?

A credit card is one that enables its users to borrow money and make purchases from a bank, as long as the money is paid back within a set amount of time. If the money borrowed is not credited back, interest will be levied, on top of the borrowed money, as a fine. These small plastic cards make life very simple as they allow you to purchase goods and services on credit and to get the card, one can even apply for credit card online. Most banks provide credit cards to their customers and offer reward points and benefits on every spend. For every person, there will be a credit card that is an ideal match.

The different types of credit cards available for customers are:

-    Classic credit cards
These credit cards come with basic features like a cash advance, interest-free credit period, rewards programme, additional cards, insurance and dedicated customer support. These cards are offered at low finance charges and do not carry any joining fee. One can apply for credit card online as it is simpler and easier to get.

-    Gold credit cards
These cards are mainly for individuals who have a higher level of income and a good credit score. One can apply for credit card online and avail the benefits it offers, such as higher cash withdrawal, higher credit limit, travel insurance, cashback offers and rewards programmes

-    Titanium credit cards
One of the premium types of credit cards available in the market, this card comes with a lot of benefits and privileges. One of the significant features of this card is the rewards programme with which the user can redeem the points for gifts, air miles and even avail cashback offers. With this card, there is also an interest-free credit period, annual fee reversal, insurance, welcome gifts, add-on facilities, beauty, travel and wellness offer and more

-    Rewards credit cards
With this type of credit card, these card holders get multiple rewards for every transaction irrespective of whether it is in retail stores or online. Reward points gained can be redeemed for products or services, air miles, travel offers, and even payments of purchases in instalments.

-    Corporate credit cards
With these credit cards that are offered to business establishments, personal transactions are only valid during the employment period with the company and not for personal use. These cards also offer more privileges since they are linked to corporates. There are offers on hotel accommodations, travel deals, business saving plans, expense management, fuel surcharge, airport lounge access and more, that can be availed through the corporate credit cards.

Here’s all you need to know about a Demat account

It is difficult to hold shares in physical form as it involves a ton of paperwork, a lengthy process and the risk of fake shares. To simplify this process of trading and investing, a Demat and trading account is essential as the stocks in this account remain in a dematerialised form. For this, a Demat account number is required as it functions like a bank account where all the money is held, and entries are made in the bank passbook as these securities are held in electronic form. The Demat account opening can be done with no balance of shares in it and with zero balance.

It is essential for those who invest in shares and keep up with the stock market to have a Demat account as this account holds all the financial instruments like shares, bonds, mutual funds, etc.

To open a Demat account in any bank, the documents required are as follows:

-    ID proof
-    PAN card
-    Proof of residence (ration card/phone bill/electricity bill)
-    Bank details (a cancelled cheque will do)
-    Two passport size photographs

In the form given by the bank, fill up all the details in the appropriate space provided and attach your documents at the end of the form. You will need to carry your original PAN card for verification purposes, along with a copy. Depending on which bank you open the account in, a basic fee is required to open the account. The fees differ with every provider, with some opening the Demat and trading account without charging any fee.

Some of the benefits of opening a Demat account are:

-    All your investments can be held in a single account as this account is not just for shares but debt instrument like bonds, too.

-    The problem of shares being transacted in lots of single or odd numbers no longer exists. Now, with the help of the Demat and trading account, this problem no longer exists.

-    Similarly, earlier, when securities had to be transferred one would incur extra costs due to stamp duty. This is not a problem anymore as the Demat account is all electronic.

-    After the Demat account opening, the risk of theft, fake shares, wrong deliveries, etc. have reduced due to the reduction in paperwork. Time taken for delivery has also decreased considerably. Once the account has been approved, the securities and company-related activities like stock bonuses and stock splits are automatically credited to your account.

- Paper made storing things more vulnerable as it was prone to wear and tear and damage. The demat and trading account makes these securities more convenient to hold and more straightforward to transfer with a nomination facility, in the unfortunate event of death.

Getting a personal loan?

Money borrowed from a bank, a non-banking financial company (NBFC), credit union or online lender and can be repaid in fixed monthly payments, is known as a personal loan. The rates of interest can differ depending on each institution. Any collaterals do not back most personal loans while a secured loan is usually supported by a house or car, which means that you will not lose the asset if you default. With a personal loan, as the name suggests, the loan amount can be used for any reason without letting the bank know what the loan is for.

Here are some things should know, before getting a personal loan:

1.    Personal Loan Eligibility

Though the eligibility criteria differ from one financial institution to another, the general criteria include age, occupation, income, capacity to repay the loan in time, residence and other essential general information. Check your personal loan eligibility with the help of the personal loan EMI calculator. To avail a personal loan, the person applying must have a regular monthly income whether salaried or self-employed. The eligibility of a loan also depends on the credit history of the person.

2.    Loan Duration

Typically, a loan can be given out for the duration of 1 – 5 years. In rare cases, the length of the tenure can be shortened or lengthened, but only with financial institutions that offer customisation.

3.    Fees and Interest Rates

The interest rates vary widely from lender to lender and make a huge difference in how much the borrower needs to pay over the life of a loan. The interest rates for personal loans usually range between 5 to 36 percent depending on the lender and credit history.

Many lenders also charge a fee to cover the cost of the loan processing, and this usually ranges from 1 to 6 percent of the loan amount.

Like how all lenders charge a fin if the loan paid past the given date, some lenders also charge a pre-payment penalty as this means that they will lose out on the interest they would have otherwise earned.

4.    Keep Your Options Open

It is a good idea to do adequate research on all potential financial institutions and compare what each one offers to see what suits you best. Make sure you have enough information on the key factors such as interest rate, loan tenure, processing fee, etc. before applying for a loan. Even when applying for a personal loan, be sure to apply to multiple institutions so you can pick as per your choice.

6 benefits of multi-currency forex cards

You have planned for your dream tour since many months. You are excited about the trip. Your family is over-joyed about going on their first international trip. Together, you’ll are ready to explore new places, culture, cuisines and share a unique experience altogether.    Yes, you have researched about the best places to visit and checked whether your flight is on time. But do you have a plan B? Do you know what to do if you or any of your family member suffers an accident or any other health scares?   

Do you have additional cash in place? These questions might be unanswered for now, but we have answers for all of them. Several banks are offering multi-currency forex card to make your task easier. This card acts just like your credit card that can be used in any MasterCard or VISA outlet abroad. You can use them during emergencies or make additional purchases.

Some primary benefits of using forex cards are:

1) If you plan to travel to many countries in one trip,  and you are carrying cash, it can get cumbersome. To make your travel hassle-free a multi-currency forex card comes handy. These cards are generally available in 22 currencies.

2) One of the primary reasons why travellers opt for a forex card is   due to the attractive rates. You can book the exchange rates well in advance and saves you from fluctuating prices in the market.   Imagine travelling to Europe, and you  have to exchange the Euro to INR rate, be ready for some mental gymnastics.        

3) Your forex cards  and bank account have no connection.They are standalone cards. A forex card works like a  debit card without even liking your account to it. There are many security measures included in the forex card such as a  chip, PIN code, and the benefit of blocking the card in case of theft.             

4) Unlike travellers’ cheques, forex cards are widely accepted. You can use your card at retail outlets, ATMs and even on e-commerce websites.  

5) Some multi-currency forex card offers concierge services. Imagine having someone take you through the immigration, baggage counter, experiencing the services chauffeur, etc. the moment you land in your destination? Perfect, right?

6) The best part about forex cards is that the left-over foreign currency can be used in any other destination. They come with a validity period of 3-5 years. You can also encash it by paying a cash-out fee.

Now that you know the benefits of a multi-currency forex card, how do you intend to spend them on your next trip abroad? 

7 financial tips every NRI should know

The moment you step out of your country, you have to find a different way to manage your funds. This mainly includes taking care of bank accounts, investments, assets, etc. Also, you have to prepare yourself, if you are sent to India due to any unforeseen circumstances. Investing in India has become simpler and hassle-free, thanks to the variety of services offered by the Indian banks.  Moreover, RBI has special investment schemes in place for NRIs. 

Apart from opening an NRI bank account, which are the other options that an NRI can look up to?

1) Open an NRE/NRO account: One of the key   options that bank officials offer is an NRI account. Under this category, you have two options to choose from NRE and NRO account. If you still have some source of income flowing in India, you can deposit them in your NRO account. Else, you can store your foreign curre ncy in India through an NRE account after converting the same in the rupee.    

2) Look out for other means of investment: The other options that you can opt for apart from an NRI bank account are real estate, the  stock market, mutual funds, fixed deposits, etc. However, there are some restrictions for NRIs from the United States of America (USA) and Canada who select the mutual funds' option.   Only a few mutual funds companies accept investments from these countries.

3) Look for Indian bank branch in the residing country:  If you are comfortable operating with an Indian bank, then research about the banks around the place you will be staying. Managing funds through an Indian bank is more comfortable   , especially if you have plans to move to India in the future.  

4) Ponder upon before going for loans: One of the biggest advantages of being an NRI is that you can take a loan from both India and overseas. Consider the best one before freezing on an option regardin g interest rates,  inflation rate, currency rate fluctuations, etc.    

5) Beware of currency fluctuations: The biggest drawback for an NRI is the currency fluctuations as that could affect his/her investment plans. A slight change in the Indian currency can impact your returns.

6) Keep yourself posted with economic conditions: If you own properties or have money in India, then be aware of the economic conditions in India. Change in taxes and economic reforms could affect your funds.

7) Buy health insurance: One of the major concerns for NRIs is health treatment. Medical expenses overseas are expensive. They often prefer to get their treatment in India. So, purchasing health insurance in India is always a welcome idea. However, do check the geographic coverage your policy has to provide. 

Which options do you find feasible? An NRI bank account or other investment options?