Checklist to go through before buying an auto loan

Most of us aspire to get our dream car, but quite a few have the funds to make that dream come true. Car finance bridge this gap by helping you to finance your dream car by paying a fraction of its cost. As compared to earlier times, purchasing a vehicle of your choice is rather easy these days, all credit goes to the various financing schemes offered by banks and financial institutions.

If you are planning to apply for a car loan, consider this checklist to go through before buying a car loan.

1) Comparison:
Car loan interest rates vary as per your car model, repayment capacity, employer, etc.  Few banks also offer preferential interest rates to their existing customers. Hence, first check with your existing bank for such offers and then visit online lending marketplaces to compare them with the prices offered by other lenders.

2) Check your affordability:
Loan amount and the tenure of loan decides the EMI amount, in addition to the rate of interest payable. You can check your EMI affordability by deducting the necessary monthly expenses, existing EMIs, insurance premiums and SIP contribution from your monthly income. Lenders usually prefer total loan EMIs to be within 40 per cent of your net monthly income. While a higher EMI will surely lead to lower interest cost, don’t do it at the expense of your emergency fund or your investments. When you apply for a car loan online, try to calculate your EMI amount on the digital calculators.

3) Loan tenures:
The shorter loan tenure is always better for car loans. Most banks provide car loan duration for up to seven years. You can try to opt for a shorter tenure as it will reduce your interest cost. However, know that a shorter tenure will lead to higher EMIs. Before accepting the auto loan,  ensure that your tenure does not cost your overall contributions to various life goals.

4) Credit score:
Generally, lenders consider your credit score while approving your car finance application. Typically, those with credit scores of 750 and above have a greater probability of loan approval. So get your free credit report from online lending marketplaces or credit bureaus before filing a loan application. It will let you know your credit score beforehand and help you take corrective steps to improve it. Additionally, you may also receive pre-approved car loan offers based on your credit score and other eligibility parameters.

All that you must know about Mudra loans

Introduction:

Launched by Prime Minister of India in April’15, Pradhan Mantri Mudra Yojana was initiated to provide loans up to Rs.10 lakhs to the non-corporate, micro/small enterprises. Their loans are classified as MUDRA loans under the scheme.

Micro Units Development & Refinance Agency Ltd. (MUDRA) is an institution set up by the Government of India to provide funding to micro enterprises which help achieve economic success and financial stability. Mudra loans are given by commercial banks, small finance banks, cooperative banks, and NBFCs. The borrower may approach any of the lending institutions or can apply through online portals.

Under MUDRA scheme, they offer three products, i.e. 'Shishu', 'Kishore' and ‘Tarun’ as per the stage of growth and funding requirements of the beneficiary micro unit. These schemes cover loan amounts as below:

• Shishu scheme covers loans up to Rs 50,000
• Kishor scheme comprises loans above Rs 50,000 and up to Rs 5 lakh
• Tarun scheme comprises loans above Rs 5 lakh and up to Rs 10 lakh

Mudra loan eligibility:

Loans are given to all non-farm income generating enterprises in manufacturing, trading and services whose credit needs are below Rs 10 lakh.

Documents required for the Mudra loan:

• Valid photo identity proof
• Current address proof
• Proof of income - Latest ITR Financial Docs of Income
• Last six months Bank statement
• Loan application form
• Ownership proof of residence/office
• Evidence of continuity of business
• Trade references

An application form is available at the lending institutions for the scheme. It needs to be submitted along with the documents for the approval of the loan. Banks cannot ask for collateral but the repayment period for the loan is of 5 years.

Mudra Card:
Mudra loans provide working capital facility as a cash credit agreement. MUDRA card is a debit card issued against the loan account. The account holder can make use of MUDRA card in many withdrawal and credit facilities, to manage the working capital limit effectively and keep the mudra loan interest rates burden a minimum. MUDRA card will also help in digitalisation of MUDRA transactions and will create a credit history for the borrower. MUDRA card is like a RuPay card that can be functioned across the country for withdrawal of cash from any ATM/micro-ATM.

Conclusion:
MUDRA .is a government financing scheme to provide a business loan to new small businesses in India. To get a business Mudra loan under PPMY, the candidate has to contact the nearest public/ private sector bank. The interest rate will be fixed by the institutions time to time-based on guidelines from the RBI.

An FAQ summary on NRI banking

If you are an Indian employed abroad or has a business overseas, you still have the option to park money in India through safe instruments like fixed/term deposits. Most Indian banks, as well as multinational financial institutions, provide NRO and NRI banking services. This facility allows you to make safer investments and also earn revenues.

What is an NRI account?

An NRI can open two kinds of bank accounts in India- NRO & NRE accounts. The major difference between these two accounts is that in you can only credit an NRE (Non-Resident External) account in foreign currencies whereas in NRO (Non-Resident Ordinary) is for earnings in India like rent earned from a pension, property, etc.

What are the benefits of NRI banking:

• You can open a fixed deposit or recurring deposit account with any Indian bank.
• You can make investments in mutual funds in India.
• NRI’s can avail tax benefits in India on the interest earned through the account.
• Principal amount plus interest is fully repatriable. You can exchange your foreign currency into Indian rupees to make any purchases or investments in India.
• Funds from this can be shifted to another NRE account or a resident Indian account. You can also make payments for any family member living in India in Indian rupees.

What are the documents required to start an NRI account?

• Passport
• Photographs
• Valid Visa
• Address proof of India if you have a different address posted in your passport
• Overseas address proof
To avail the NRI services, you will have to get these documents attested from the Indian Consulate or overseas bank or be notarised by a foreign notary as per your chosen bank's requirements.

How to open an NRI account?

Most private, public, and foreign banks with operations in India have flexible online facilities to open an NRI account. Some private banks even send officials for a free doorstep service to pick up documents. There are also entirely paperless services provided by some of these private banks in certain jurisdictions. HDFC Bank has drop box facilities in the USA, the UK, Singapore, Canada and the UAE, where one can drop their completed downloaded forms along with required documents.

Banks in India provide a comprehensive array of NRI banking services. A secure online gateway supports their services, and this proven technology facilitates seamless banking. From opening a savings accounts to enabling premium banking services and from deposits to investments in mutual funds, insurance or portfolio management services; banks offer NRI banking solutions under one roof.

A guide to buying health insurance in India

There is no doubt in the phrase saying ‘health is wealth.’ And it is highly significant to insure your health to fight all the unforeseen medical emergencies. Investing in health insurance plans guarantees to beat costly medical treatments. There are three ground rules while selecting a health insurance policy- Don’t buy in a hurry; don’t purchase based on a friend’s or agent’s recommendation; and lastly, don’t buy based on cost.

Here is a checklist to go through before selecting medical insurance in India.

1) Adequate coverage:
The first thing to check is that the policy offers sufficient coverage for you and your family. Do not compromise cover to save money on premium. For the same sum assured, premiums may vary across different insurance companies. Instead of merely going for the cheapest plan, compare features. By paying a little extra amount, you may be able to get higher benefits.

2) Pre-existing diseases:
According to the Insurance Regulatory and Development Authority (IRDA), a pre-existing illness is an ailment for which one had signs or symptoms, was diagnosed, or received medical advice or treatment within 48 months before the purchase of the health insurance plan. The waiting period for protecting pre-existing diseases differs from one insurer to another and ranges from two to four years. Make sure you are well versed about the waiting period guidelines of your health insurance company before purchasing the plan.

3) Cashless facility:
It is a wiser option to hold health insurance in India that offers the cashless facility. It is a critical feature that saves the applicant to pay the hospitals from his own pocket. Here, the health insurance company will directly fund the hospital. It also involves limited paperwork and hassle than the reimbursement facility.

4) Health cover for senior citizens:
Some insurance companies provide the best health insurance plans specifically designed and catering to the senior citizens. These policies usually cover both hospitalisation and domiciliary hospitalisation (critical ailments where the patient is bedridden but not hospitalised). If the applicant has bought the policy before 55years of age, companies offer insurance policies renewable up to the age of 75 years.

5) Medical examination:
For a person aged above 45 years need to go through a medical check-up before insurance companies offer health insurance plan. If your medical report is unfavourable, the insurance company may turn you down. The age limit at which a medical examination becomes compulsory varies from company to company.

Things you must know before buying a forex card

Are you a travel bug and are always on the go? Planning for abroad usually involves finding the best airline tickets, cheap hotel bookings and places to visit and see. However, you must also give utmost importance to thinking about how to carry money for your trip abroad.

When you are travelling abroad, foreign exchange rates are the first thing to notice. Plastic money like international debit or credit cards are quite popular among travellers, but they have few drawbacks as well. Hence, you must buy a forex card which is the most and inexpensive way to carry money abroad.

Know the forex card benefits:

• Allows you to carry multiple foreign currencies
• Universally accepted mode of payment
• Cheaper than using credits cards abroad
• Better exchange rates than currency

A forex card is a prepaid travel card that allows users to load single foreign currency or multiple currencies. Much like other financial products, forex card also comes with a set of terms and conditions. Here are a few points to remember while travelling with the forex card.

1)  Understand the fees and charges:
Before buying your forex card consider inquiring about the fees and charges associated with the card. These charges may include:
• Card issuance fee
• Balance Enquiry Charges
• Replacement Card Fee
• Statement Request Charges
• Cross Currency Mark-up Charges
• International SMS Alert Charges
• Charge Slip Retrieval Charges
• Inactivity Fees

2) Swipe in the same currency as loaded:
When you are swiping your multi-currency travel card at a store, make sure that the payment is made in the same money format as you have loaded. For example, if you have loaded your card with Euro currency but the payment is made in Indian Rupee, then you will incur significant cross-currency charges.

3) Safety:
International fraud in cards is a known issue. Cloning of cards is the biggest threat for forex cards while travelling. Hence, it is essential to keep your card safe from such activities. Make sure you do not hand over your card to anyone else for swiping. Before you buy the forex cards, compare and choose a card with the safest facilities.

4) Check your insurance on forex card:
Like credit cards, most forex cards also offer some insurance cover. There can be insurance protection for you against personal accident, loss of checked baggage at the airport and against credit card fraud. You must confirm these insurance plans your bank about what type of insurance cover is being offered on your card.

Factors that determine your chances of getting a business loan

Business loans serve as a backbone for an organisation. With them, you can efficiently manage your cash flow, upgrade business equipment and grow the business. It is specifically intended for business opportunities and should be repaid with added interest.

When you purchase a business loan in India from banks, it may be either secured or unsecured. In secured loans, banks will ask for collateral, which will be lost if repayments are not made. The bank will possibly wish to see the business’s balance sheet, accounts and business plan, as well as studying the principals' credit histories.

Following factors play a significant role in determining how easy or difficult your loan raising process would be.

1) Stage of your business:
This factor is similar to an individual getting a loan. If your business is at an early stage and has been in existence for a short period, banks may hesitate to lend. You might need to apply for new business loans. However, a business that has been around for some time with a proven track record of operation is likely to find the loan raising process much simpler.

2) Competition:
The nature of competition that your business faces impact the decision for lending institutions. Bank may look at your competition to figure out where you stand among your peers. If you are at par or do better in the market, getting money becomes easier and vice-versa. If the competition is intense, applying for business loans will be tad difficult, because banks may not be to gauge your repayment capacity.

3) The amount you need:
If the amount you need is relatively modest, it may be easier to get a loan. However, for higher loan amounts banks may ask for additional details and set provisions that may make the loan processing tougher. Small amounts that are in sync with your earnings or cash flow may be easier to raise, but anything that goes beyond your financial position may make a bank think twice.

4) Relationship with the lending institution:
It is always easier to raise a business loan in India if you have good relations with the bank. Choose a bank or bank that have greater visibility of your business, a good understanding of the state of your finance and may have already extended a loan previously. It gives better comfort to your bank in arriving at a lending decision and may make your loan processing easier.

Why should you get a travel insurance plan?

Are you trying to escape the monotony of your office life and planning a trip? The checklist of your journey is carefully drafted, and you just can’t wait to take an off. However, life can be a bit uncertain. What would happen if you misplace your baggage or passport; worse still, you face a medical emergency abroad. Are you ready for an eventuality like this?

Travel insurance can protect you during such occurrences. It will provide you with monetary compensation and ensure you against a financial loss. Travel insurance is a legal contract created by the lawyers. Read the fine print and description of the coverage (policy wording) thoroughly before selecting the plan. Here are some reasons for investing in a travel insurance plan.

1) Support in  a medical emergency:
Adventures like parasailing or hiking can be a once in a lifetime experience, but what if something goes wrong in these faraway places? Medical help will be difficult and expensive too. That's when a comprehensive travel insurance policy can come in handy: It can help you avoid out-of-pocket expenses. It will cover the patient treatment, diagnostic tests, ambulance charges, evacuation charges and travel cost to the hospital. Most importantly, the policy could give you the facility of cashless hospitalisation.

2) Trip delays or missed connecting flights:
Cancelled or rescheduled flights can wreak havoc even on the best-made travel plans. Weather, strikes and technical issues could lead you to miss your connecting flight. Hence it is a reason to invest in the best travel insurance to cover these expenses, so you won’t be over budget before you even set off.

3) Replacement for lost or stolen luggage:
Losing your luggage amidst travelling can be frustrating. Even if you are travelling light, the cost to replace everything can be high. You may need to pay to renew your passport and any other travel documents for example or buy a new set of clothes. Travel insurance in India and abroad can reimburse you for these expenses.

4) Peace of mind:
Travel is unpredictable. If you’re involved in an incident where you are found legally responsible for someone else’s injury or damage to their property, travel insurance can help you cover up to the amount specified under your plan.

5) Pre-existing illness:
Insurance is crucial for a stress-free trip, especially when you are suffering from a pre-existing illness. The insurance company will honour your claim arising due to pre-existing illness, in case of any life-threatening events or acute pain.

Whether you’re in an unfamiliar country or at home, getting proper travel insurance for your needs will keep you at ease and allow you to recover your losses against any unforeseen eventualities. Check out travel insurance online on various banking sites to get better deals.

How to choose a life insurance policy?

Introduction:

A life insurance policy is a contract between an insurer and policyholder in which the company promises to pay a designated amount in exchange for a premium, upon the death of an insured person. Buying a life insurance policy may seem bewildering for most of us. It's hard to know where you must start with the selection of plans. If you have decided to get insured, then your next step is to go through types of life insurance and make sure you buy the right one.

1) Purpose:
Often the purpose of buying life insurance depends on personal reasons. If your salary is supporting your family, paying the mortgage or other recurring bills, or sponsoring your kid’s education, you should consider life insurance as a way to ensure that these financial obligations are protected in the event of your death.

2) Types of insurance policies:
Insurance companies offer various life insurance policy plans depending on the needs of the individuals. These policies include whole life, term life, variable life, and universal life. The primary objective of having an insurance policy is protection against unforeseen activities. Ideally, experts believe one must consider term plan, as it gives you a higher sum assured for a lower premium.

3) Life insurance costs:
The factors that decide the cost of life insurance plans vary as per the chosen policy. It may depend on how much you buy, the underwriter's practices, and how much commission the company pays your agent. Life insurance policies often have hidden costs, such as fees and large commissions, that you may not find out about until after you purchase the plan.

4) How much coverage you need:
The amount of life insurance you require depends on factors such as your sources of income, the number of dependents you have, your debts, and lifestyle. However, a generally it is advisable to acquire a policy that would be worth between 5 and 10 times your annual salary during the occurrence of your death. Beyond this, you may want to consider consulting a financial planning professional to determine how much coverage to obtain.

Conclusion:
When picking life insurance, use the internet's resources to educate yourself about basics of life insurance, find a broker or officer you trust, then have the recommended policies assessed by a fee-only insurance adviser. Experts believe people often mix insurance and investment plans. Know that these are two different entities and life insurance policy plan is a must.

Important things to look for in a savings account

A savings account is an excellent place to store your emergency fund. You can tap for this fund during rainy days like car repairs, medical crisis, etc. 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 bank account.

Here we discuss some of the essential things to watch out for while planning a savings account that suits your requirements.

1) Interest rates:
Some savings account work at a fixed rate that pays a fixed set of return during the term. Accounts usually have a one-year term, but you can also lock up your savings for as long as five years. The highest rates tend to go to users who are prepared to tie up their cash for the longest period.

Individuals who want flexibility with your savings can prefer to have a variable rate account. With variable returns though, rates can change at any time, so you should always watch the amount of interest you are earning.

2) Transaction charges:
Before opening a savings account, make sure you research and compare the services charges levied by various banks. Comparisons should be made on bank services such as outstation cheque collection, cheque return charges, annual fees for debit cards and costs for issuing duplicate passbooks, statements and chequebooks. Select the type of savings account best suited to your needs.

3) Minimum balance criteria:
Some banks require you to deposit a minimum amount to open a savings account.  Often, individuals need to maintain a minimum balance requirement while handling the savings account. However, with changes in government schemes, banks do offer Basic Savings Bank Account. These accounts need no minimum balance requirements, provide essential banking services and have restrictions on the number and amount of withdrawals, transfers, deposits, and ATM transactions.

4) Debit card offers:
Most banks provide free insurance cover on debit cards. Some debit cards offer discounts, zero surcharges at petrol pumps, EMI facility, airport lounge access, reward points and cashback offers. Therefore, when choosing a type of savings account, compare the deals available with the debit card offered.

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.

Why is gold loan finance is better than personal loans?

For most of us, when facing a financial dilemma, the first thing that comes to mind is opting for a loan. There are several types of loans available in India. The newest block in the list is the Gold Loans. Now we know gold holds a special emotional connect for most households and taking loans against gold is not considered a preferable option. However, the value of gold is continuously rising, and it makes sense to utilise its power.

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. To draw a better comparison, we have got a list of the benefits of gold finance.

1) Faster processing:
Banks consider lending against gold as a safer investment. The overall loan processing time for a gold loan is quite less, and you get the approval within a few hours. Banks have the option of selling the gold in case you default in repayment. Therefore, banks usually disburse the loan in few hours.

2) Lower interest rates:
As these loans are secured form of investment, banks charge lower gold loan interest rates as compared to unsecured credit such as a personal loan. The interest rates for a gold loan are generally in the range of 13 to 14% while personal loan interest rates usually start at 15%. Also, if you attach another security as collateral, the gold loan interest rate can be reduced further.

3) Limited repayment woes:
The worst-case scenario in repayment of the gold loan is losing the precious gold. If you are not able to recover your gold loan finance, the bank will take possession of the pledged gold or jewellery to recover its dues. There is no unwanted recovery problem as in the case of unsecured loans like personal loans or loan against property which is claimed through the sale of the property.

4) Bad credit history is not an issue:
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.

5) Hello Digitisation:
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.

Documentation and Eligibility for PPF account in India

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. 

One of the advantages of investing in a ppf scheme is the 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, PPF benefits you triple exemptions– 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.

Therefore, if you are looking for a safe investment option, you should consider opening a PPF account and earn guaranteed returns. Here is the documentation and eligibility process for the ppf scheme.

Eligibility:
Residents of India can open a Public Provident Fund account. A minor can open the account as well, but parents or guardians will operate it. Minor can hold their accounts after attaining the 18 years of age.

 Documents:
1) An identity proof & passport size photographs:
PAN card, driving license, aadhar card, passport or Voter ID card.

2) A residence proof:
Electricity bill, telephone bill or ration card

3) Nomination form:
You can fill the nomination form for the ppf scheme so that the amount will be paid to the appointed nominee, in the unfortunate event of your death or due to any permanent disability.

4) Pay-in-slip:
These slips are available at the bank branch or the post office.
You are advised to carry the original documents along with the Xerox copies. The authorities will verify the original documents but submit them along with the self-attested xerox copies of the certificates.
After opening the ppf account, the bank will issue a passbook to you. It will contain accountholder’s information such as name, number, photograph and the balance. The transactions made within the account will reflect in the passbook. You can also access the account if you have an online banking facility.

Benefits of education loan for abroad studies

You are happy to receive the acceptance letter from your choice of university abroad. I am pretty sure you are excited about starting the new chapter in your life in a new country. Though the prospect of having an overseas education is thrilling, it may get tedious to manage funds. Pursuing studies outside your home country is a costly proposition. Hence, an education loan is an essential element to control funds to study abroad. We curate a list of benefits about study loans so that you clear all your inhibitions and help you make an informed decision.

1) Loan amount:
Lenders grant education loan for abroad studies depending on the fees and other costs involved in the course. Usually, you can gain a credit up to Rs 75 lakh for studies within the country, and up to Rs 1.5 crore for abroad. The loan is granted on the basis of borrower’s necessity and financial condition. Loan amount, in this case, can be as high as Rs 40 lakhs.

2) Moratorium period:
Moratorium Period or EMI holiday states to the time when borrowers don't have to pay any EMI. It usually lasts for a year after completion of the course. Education loan, hence, saves borrowers from the burden of loan repayment, and give them enough time to find a job before loan repayment starts. However, consider paying the interest during the moratorium period to avoid accumulation of interest.

3) Loan tenure:
You can avail an education loan for up to 15 years. The repayment period begins after the moratorium period, hence, you get additional time to create sufficient corpus for paying off your educational loan. You can further request your financier to extend the tenure if you are unable to service EMIs. Keep in mind that you cannot continue the tenure beyond 15 years.

4) Tax benefits:
You can gain tax benefits on interest paid towards study loan under section 80E of the Income Tax Act of India, 1961. The tax advantage is available only for consecutive 8 years or until the loan is paid in full, whichever is earlier. If you take an educational loan on behalf of your child, only the parent would be eligible to avail tax benefits on repayments. The child cannot claim tax benefits even if he/she takes responsibility for repaying the education loan. Therefore, it is recommended to try a joint loan instead.

5) Rate of interest:
The education loan interest rate is usually lower than other loan options such as a personal loan. You can get an educational loan for as low as 8.85% per annum. Female applicants can receive an additional allowance of up to 0.5% on interests. Some lenders provide credit at a lower interest rate if you seek admission in a specialised course or institute. Hence, make sure you research and compare all available options before applying for a loan.

How to make the most out of your credit card?

Credit cards have a bad reputation, and most people consider it a worthy investment. A credit card is a type of a loan, where the money is borrowed from the card rather than debiting it from your personal account. However, several benefits are associated with credit cards as well. Using credit card responsibly will improve your credit score, and this will allow you to be eligible for the lowest interest rates on new credit cards and loans. We bring you a few tips on how to use credit cards and save from costly fees and high interest rates.

1) Make sure you have enough credit:
Using your credit card for all purchases requires you to have a credit large enough to support your spending. Make sure you are responsible enough while using the credit card. You can make purchases but also pay them in full and on time each month. With time, your credit card issuer will raise your credit limit. You can also pay off the amounts often during the month to free up credit so you can continue spending with your card.

2) Try not to withdraw cash:
Credit cards in India allow you to withdraw money from ATMs. However, it is advisable not to do so. There’s usually a fee associated with cash withdrawals, and it typically derives with a higher rate of interest and no interest-free period. 

3) Keep a check on credit card limit:
The best way to check your monthly statement is to maintain all of your credit card receipts each month, then tick them off against the charges on your statement. It will help you keep a tab on the things you bought, and the fees applied.  If you find your bill overstated, contact your credit card provider immediately and get it sorted.

4) Choose the best credit card:
You don’t have to approach your bank for a credit card. Lending institutions in the market issue various types of credit cards. Users may choose the one suited best to his/her needs and lifestyle. However, the very best deals are usually reserved for customers with a sound credit record. If you’re looking to make a big purchase, then a credit card with a 0% interest rate is what you need.

5) Cashing the rewards:
One of the popular benefits of using a credit card is receiving rewards at every purchase. You can score hundreds in cash rewards, miles, or points by using your credit card for all your monthly expenses. Of course, if your credit card issuer has a cap on the number of rewards you use, you may have to switch to another card to maximise the rewards you can earn.

Are you a first-time personal loan borrower? Read this

Personal loans will act like a true friend in times of an unforeseen situation of financial crunch. Whether you have to pay off for marriage expenses, home renovation or even sponsor travel plans, a personal loan is the best option. These loans are unsecured in nature that means you don’t have to pledge any securities to get them. Hence, personal loans in India come at a higher interest rate compared to home loans.

So it is advisable for the first-time personal loan borrowers to be careful while applying for a loan to receive better offers.

1) Keep a tab on your credit score:
A credit score is an essential parameter that lenders check while issuing personal loans to the applicants. Given that these are unsecured loans, banks will favour the applicants with a higher credit score. A higher credit score indicates the repaying capacity of the applicant. To improve your credit score, make sure you pay your bills on time and use your credit card as less as possible.

2) Pick your lender carefully:
Before applying for personal loans, it is important to conduct thorough research about the lending institutions. It is wise to pick the lender who offers you a lower rate of interest with better terms and conditions. You can shop around for the personal loan by applying online using an online aggregator. Know that interest rates differ widely from lender to lender, so explore your options.

3) Check your repayment capacity:
Banks usually ask for EMI payments during repayment of personal loans. You can calculate your monthly instalments capacity using an online Personal Loan EMI calculator to assess the right amount of EMI for your corresponding loan amount. Banks also conduct the repayment capacity valuation of the borrower at the time of yielding the loan. Hence, if you request for the right loan amount in the first instance, chances of your loan sanction becomes higher.

4) Eligibility:
Most banks require you to be employed for at least two years, and at least one year with the current employer. If you change your job often, the chances of your loan getting approved will be lesser. Also, your loan will not be accepted if you are serving a notice period. Banks also require a minimum income of Rs. 15,000 per month to consider you for a personal loan.

5) Proper documentation:
Lack of appropriate documentation can lead to rejection of your personal loan application. Documents required by banks include:
• Signed application form
• Residence proof (Passport, Driving License, Election ID card)
• Income proof (last 3 months salary slips, Form 16 or IT Returns)
• Identity proof (Aadhaar card, PAN Card, Voter ID, Driving License)

An investor’s guide on demat and trading account

Introduction:

A demat and trading account is just like a bank account. However, instead of holding money in your account, demat holds your securities – such as shares, bonds, or debentures. It is essential to maintain a demat account if you are planning to trade in securities. This electronic account will hold your securities serving as an alternative to the physical certificates. To continue trading in securities of the Indian market, the investor must open a Demat and trading account with a Depository Participant (DP).

Who is a Depository Participant?

While depositories are organisations that hold your securities electronically and also facilitate transacting, a Depository Participant (DP) act as agents between depositories and investors. The two depositories registered with SEBI for demat services are National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

The benefits of a Demat account:

1) Physical securities are prone to risks like thefts, losses, or damage. These risks are eliminated with the opening of a demat and trading account, that allows holders to save all their investments in electronic form.
2) The transaction cost is significantly lesser compared to the physical segment since here you don't have to pay stamp duty.
3) With the elimination of the paperwork, the time required for transactions is reduced. It enables the account holder to avail more of demat services and use it with more efficiency.
4)  We know it is a tedious task to maintain physical certificates. Moreover, keeping track of their performance is an extra responsibility. Through a demat account, users can track all their investments through a single account.
5) With physical certificates, buying and selling of securities were possible only in the specified quantities. The convenience of dealing with odd lots or single security was also not available. Demat accounts help investors this issue.

How to open a demat account?

Following are the steps on how to open a demat account and trading account with a depository participant (DP) registered with SEBI.

• Choose a Depository Participant (DP). Most financial institutions and brokerages offer this service.
• Fill the demat account opening form. Submit along with copies of the required documents and a passport-sized photograph. Also, carry the original documents for verification.
• During the process, an In-Person Verification would be conducted out. A member of the Depositary Participant’s staff would contact you to verify the details containing in the account opening form.
• Once the application form is processed, the DP will deliver you with an account number or client ID. You can use this details to access your demat services online.

How to do RTGS and what are its benefits

RTGS or Real Time Gross Settlement is a mean of money transfer that allows you to transact large sums of money instantly. It is an online process where the minimum amount of transaction has to be Rs.2 lakhs. There is no upper limit to the transactions. However, both the banks paying and receiving the money must be RTGS enabled. It is among the fastest and most secure means of financial transaction in the country with more than 100,00 bank branches offering the service.

How to do RTGS?

• You should activate the internet banking facility on your bank account if it is not already activated. Check if your bank and the bank you are transferring the money to are RTGS enabled.
• Log into your account and go to the page for RTGS transfers.
• Input details of the beneficiary such as name, account number, IFSC code etc. You also have to provide data such as the bank and the branch that holds the account.
• Enter the amount you wish to transact. All RTGS transfers charge a nominal fee, between Rs.25 and Rs.55, which depends on the amount being transacted.
• After you confirm the transaction, you will receive a password that you will have to enter to proceed with the transaction. This is an added level of security.

You get notifications on the successful completion of the transaction. In case you face any difficulty with the transaction, it is best to consult a representative of your bank.

Benefits of using RTGS

• It is an instant process, which does not require your physical presence in the bank. You can also do an offline submission at your branch in case you are not comfortable with online transactions.
• The charges for a transaction are lower as compared to other instruments for large money transfers such as a demand draft.
• It is a paperless transfer. Therefore, it avoids the complications that can arise from the loss of a cheque or demand draft. In case a transfer is not successful, the entire amount is credited back to your account in no time.
• The online process ensures that there is no forgery.
• The chances of default are eliminated, unlike cheques.
• The facility of instant transfer helps businesses to go about their daily transactions smoothly without any delays.

RTGS payments is a safe and secure mode of money transaction that has become extremely popular since its introduction by the Reserve Bank of India. Since there are no delays in the transfer, it helps new businesses to build a strong supplier and buyer relation.  The risk of loss and theft of money is also minimised with several levels of security checks. If you are looking to transfer huge sums of money in a hassle-free manner, RTGS payment is the most reliable transfer mechanism you can opt for.

Features and benefits of NRO account

NRO or Non-Resident Ordinary Accounts are for Indians who reside outside India for employment, business or any other purpose. These accounts are opened in Indian banks with funds that are sent from abroad. As the Foreign Exchange Management Act (FEMA) you cannot have a savings account in India if you are an NRI. However, if you live and work abroad, an NRO account can help you track and transfer money to your home account. To open an NRO account you have to show evidence in terms of visa permitting residence in a different country.

Features of NRO bank account

• An NRO bank account allows you to have a savings account, recurring account, current account as well as fixed deposit.
• An NRO account accepts deposits of money earned in India.
• The deposits in the account can be made using foreign currencies, traveller’s cheques, cheques in any currency as well as from any legitimate form of income in India.
• You can transfer the funds from a different Non-Resident Indian account or Foreign Currency Non-Repatriable account.
• If you are depositing foreign currencies, they will be deposited into your account as Indian currency at the existing exchange rate.
• 30% Income Tax is deducted at source on the interest earned in NRO account.
• You can easily invest in mutual funds and other investments through the NRO account.
• A minimum amount must be maintained in the account for it to remain active.

Benefits of NRO account

• You can retain your income and assets in India with an NRO bank account.
• Your dependents in the home country can access your funds in the NRO account.
• You can send money to India or withdraw money at any time.
• Transfer of money to the NRO account is free.
• NRO accounts have higher rates of interest.
• Every account holder gets a free chequebook and an ATM card. An additional ATM card is issued for use by a relative or friend in the home country.
• A local representative can manage the account. However, they must have a letter allowing them to do so.
• Free e-mail statements are issued.
• There is no restriction or upper limit on the withdrawals as long as you maintain the minimum balance in your account.

NRIs can only deposit their earnings in India in an NRO account. It is illegal to deposit such money into any other account. If you have a source of income in India, despite being settled abroad, an NRO account helps you to manage and organise your finances in India better and in a more efficient manner.

Upcoming mobile payment apps of India

Mobile payments and digital money are fast gaining acceptance among users in India since its introduction. The ease of use and various benefits being offered in terms of cash backs and discounts are fast luring new users to shift to use of virtual currency. There are several companies that are providing the option of mobile payments for a variety of services from bill payments to online shopping.  Here is a list of the upcoming mobile payment apps that are available in India.

PayUMoney
This app has shown huge growth since its inception in 2017. The services are extremely customer friendly. You can use this mobile payment app for bill payment, online purchases, and services like recharging phone or DTH facilities. The refund process is simple and instant for cancelled orders.

HDFC Chillr
This payment app allows you to make payments to anyone on your contact list with a couple of clicks. For a person who is on your contact list, you do not need to add any other information before transferring the money. This app connects directly to your HDFC bank account. You can shop on e-commerce websites, pay utility bills, split expenses and even make payments to offline stores with this app.

PhonePe
This app has a lot of features that make this app lucrative as well as user-friendly. You can link several bank accounts to your virtual wallet with this app. There is various cash back offers that the users find genuinely useful. Payments of bills, mobile phone recharge, booking movie tickets, air tickets etc. become very simple with PhonePe.

Tez
Google Pay or Tez is another up and coming mobile payment app in India. The reason for its rapid success is its ease of use and rewards program. It supports transactions from all banks for online shopping and bill payments. The ‘Cash Mode’ allows you to make payments over a wireless connection when you and the beneficiary are in the same location. This makes paying at shops extremely easy.

BHIM (Bharat Interface for Money) UPI
This app is the product of the Government of India’s attempts to promote digital currency. Although there are minimum features, the app has a simple interface and is very easy to use. Through this app, you can send and receive funds in a matter of seconds. This is done using Virtual Pathway Identifier (VPI), QR codes or mobile numbers. You can also transfer money with bank account number and IFSC code.

Mobile payments are making the process of transaction easier and eliminating the need to carry cash. The mobile payments apps are over time becoming more innovative. All transactions on these apps are very secure and always have benefits associated with them to enhance user experience. If you are pondering about switching to virtual payment platforms, you should consider these upcoming mobile payment apps to reap maximum benefits.

The best investment services in India for 2018

Clever investments are the fastest and the easiest methods of getting large returns with minimum risks. However, with higher returns, more is the risk. Although the perfect investment is a myth, with proper research and planning you can minimise the risks and increase your gains. You have to assess how much risk you can take as well as the mode of investment to reap maximum rewards. Investments can be financial as well as non-financial. Here is the list of the best investment services that are available in India-

Direct Equity
You need a demat account to invest in direct equity. Stocks are considered to be volatile assets that do not always guarantee a return. Therefore, before investing in stocks you must thoroughly research the market. Over long periods, this avenue provides higher returns than any other forms of investment. Be careful to take proper precautions to curtail your losses. You can expect returns around 12.5% if all is well with the market.

Equity Mutual Funds
Limited investments in mutual funds in a large number of portfolios increases your chances of getting higher returns while limiting the risks. The best way is to resort to an expert for advice. Pooling different stocks of different companies can give you a net profit. You can actively or passively manage the equity mutual funds. Returns vary between 15% and 20%.

Debt Mutual Funds
These offer you steady returns while being safer with low-risk potential. In this case, you invest in securities that generate a fixed interest such as corporate bonds, government securities, commercial papers, treasury bills, etc. Returns vary between 6% and 8%.

National Pension Scheme
It is a long-term investment scheme that focuses on retirement. This blends mutual funds, fixed deposits, corporate bonds, liquid funds, and government funds. You can directly invest in equities through NPS if you have the appetite for risks. A tier-1 NPS account has to be maintained with annual deposits of Rs. 1000.

Public Provident Funds
This is one of the best investment options in India that attract many people due to low risks. The tenure of Public Provident Funds is 15 years and the money is exempted from taxes. The government support for this scheme makes it extremely safe.

Fixed Deposits
You can open a fixed deposit account in any bank for long and short terms. It is a lower return yielding, safe option that is subject to taxes as per your income.

Real Estate
A real estate is a lucrative form of investment that does not involve liquid finances. The returns depend on the location of the property. Capital appreciation makes real estate a viable investment in the long term.

Gold
Gold is a traditional form of non-financial investment that has been popular for a long time. The returns depend on the existing value of gold at the time of liquidation. However, the concerns for safety remain an issue.

Some investment services offer fixed income while others vary with the ups and downs of the market. The market-linked investment offers a higher return despite the high risk and volatility. A judicious mix of both while keeping the concern of taxes in mind helps you meet your long-term financial goals and helps you stretch the power of your money.

Why is it important to use car loan EMI calculator

The demand for a car in everyday lives has increased due to increased mobility, the uncertainty of public transport and concerns of road safety. A car loan is the most sought after avenue of buying a car since funds usually fall short. However, in determining the suitability of a car loan, it is important to assess the impact it has on your monthly finances. You should decide the principal and the tenure of the car loan in such a way that the equated monthly instalments in no way are above 40% of your monthly income.

You can find out this data using a car loan EMI calculator that is available on the website of all loan providers and third-party loan companies. All you need to do is input the loan amount, tenure and interest rate. There are several advantages of using the EMI calculator, which includes-

• Using an EMI calculator helps you plan your finances around the loan. It helps to make an informed decision and saves you from overshooting your monthly budget.

• It is important to select the appropriate principal amount for a suitable tenure so that you are able to afford the loan. Skipping payments of EMI has a negative impact on your credit score that can create problems in getting your future loans approved.


• The EMI calculator for car loan gives you a comprehensive idea about the entire repayment period with the help of pie charts and tables that include data such as principal, interest, processing fee and the repayment amount. You can compare the changes in EMI by adjusting the tenure and principal amount.

• You can compare the car loans being offered by various companies quickly without any extra charges and choose the car loan that is best for you.


• You can get several results by varying the principal amount and tenure with a car EMI calculator, for free and in an instant. This saves time and helps you plan your money.

The car loan EMI calculator is easily available to everyone. It is an extremely beneficial tool that helps you evaluate your affordability. You can view your monthly repayment schedule. This gives you an accurate idea of the loan you are getting into.

Therefore, with the help of an EMI calculator, you can make an informed decision about your car loan while balancing your luxuries and necessities.

What is NEFT and how to use it?

NEFT or National Electronic Funds Transfer is one of the most convenient ways for transferring money online. You will just need to invest a few minutes of your time and you can get your money transferred in an instant.

How do you use NEFT?

In order to facilitate a smooth electronic funds transfer between the beneficiary bank and the remitter, you need to follow these steps-

• Log in to the respective bank’s official website and select the net banking option. Press on the Profile tab, choose the Manage Beneficiary link and select Inter Bank Payee from amongst all the available options.

• Click on the ‘Add’ option and put in Beneficiary Account Number, Inter Bank Transfer Limit, Beneficiary Name, and Address in the necessary fields.

• Enter the IFSC code of the beneficiary bank by consulting your chequebook or by using the Location option.

• Click on the ‘Accept Terms & Conditions’ option, followed by the ‘confirm ‘option. After this, you will receive a security key number on your registered mobile number for additional security purposes. Use that number as your password to validate your beneficiary.

• After validating your beneficiary, you can now transfer money as and when you like.
Benefits of transferring money through NEFT
Transferring money through the NEFT service can provide you with many benefits.

• The NEFT funds transfer banking service always puts the focus on saving your time and aims towards getting the job done as fast as possible. Generally, it takes around an hour but it can also take around 20-30 minutes. Sometimes, it takes up to 3-4 hours also.

• Additionally, you can use this option anytime and from anywhere you want.

• There are no NEFT charges when it comes to your electronic funds transfer.

• Another bonus is that there are no limits as to how much money you can transfer via NEFT. It is because of all these reasons that NEFT is probably one of the most popular and utilized options in recent times.

The Reserve Bank of India (RBI) provides many pointers regarding how to utilize this service best so it is recommended that you read up on the material before you decide to transfer money.

NEFT funds transfer is one of the best and hassle-free ways of transferring money from one bank to another. If you want to transfer money without the fear of fraud, then definitely go for this option.

How to use a personal loan EMI calculator

Loans can be a godsend for us when we are in dire need of money. It allows us to make emergency payments or necessary payments in general. However, the process of repaying the loan and its EMI's can sometimes be a little complex and confusing at the same time. Read on to understand how EMI's work and what you can do to make the process easier.

What is an EMI?

Equated Monthly Instalment (EMI) is the money amount that a loan taker is required to pay to the bank throughout the duration tenure, for repaying the entire loan amount. You will have to pay a part of the amount along with the interest.

What is a Personal Loan EMI Calculator?

To calculate a personal loan EMI, every financial institution uses a generic mathematical formula. A personal loan EMI calculator calculates the personal loan EMIs based on the information and inputs provided by you.

How to use Personal Loan EMI Calculator

You would need to provide the following information to use the personal loan EMI calculator-

• Loan tenure- Loan tenure is the duration of time selected by the loan bearer for repaying the entire loan amount. Every bank offers flexible loan tenure to make it easier for you. Hence, you have the freedom to choose the repayment duration that is best suited to his needs. Generally, the loan tenure ranges from 1 year to 5 years.

• Interest rate- Interest rates are classified into two parts: floating and fixed. The floating interest rates fluctuate often depending on the base rate and that can cause the EMIs to vary. If the rates are fixed, the rate stays the same all through the loan tenure and causes each EMI to remain equal.


• Loan amount- The sum of money you borrow from the bank is known as the loan amount. An interest rate is applied on your loan and is segregated into EMIs, which you will have to pay monthly throughout your tenure. In order to determine the amount you will need to pay, simply enter your loan amount into an EMI calculator and get the desired results. Keep in mind that your EMI amount should not exceed 40% of the total monthly income.

In order to calculate EMI for your personal loan, you will have to know your interest rate, your loan tenure and your personal loan amount. Operating a personal loan calculator and calculating your EMI is much easier and more convenient method to find out how much you would need to pay.

The best travel booking apps in India

Travelling is something almost everyone is keen on. Many people consider it therapeutic. Travelling to different places and exploring all its facets can teach us many things about life and people in general. However, planning for a trip can be confusing and much of a hassle sometimes. Thankfully, there are many travel booking apps in the market these days that make our jobs a bit easier. Listed below are the some of the best travel booking apps you can use-

1. MakeMyTrip- MakeMyTrip is probably the most popular travel-booking app in India. This is because it is a one-place app, on which you can book trains tickets, flight tickets, bus tickets, cabs, and hotels. The app offers you the best price for your bookings. MakeMyTrip also offers you several discounts on the purchase of combo offers of flights and hotels.

2. TripAdvisor- Currently, TripAdvisor is one of the most reliable and trust-worthy travel apps in the market. As the name signifies, it advises you for ensuring your best trip. You can search for multiple hotels, restaurants, trains, destinations, and flights. The best feature of this travel app is that it gives you access to many user reviews. This helps you choose the best destinations to travel to and the best places to stay in.

3. Tripoto- Tripoto is a mobile-based travel-booking app that provides a smooth and convenient access to the customer-created travelogues and itineraries. This app also encourages and supports a social network of travellers. If you are someone who likes to explore local places and connect with local people, then this travel app is tailor-made for you. The travelogues and itineraries generally include user comments, reviews, photographs etc.

4. IRCTC Connect- Trains are the most used form of transport in and across India with hundreds of people utilizing it every single day. The Indian Railway Catering and Tourism Corporation Limited or IRCTC is the largest train travel network in the world. The IRCTC Connect app helps in unifying the many features that contribute to making train travel a lot easier for passengers. It also has its own mobile app, which you can use for checking your PNR status, train schedules, and book tickets.

Travelling means taking a break from the monotonous routine you lead every day. Travelling means relaxing, away from the chaos and commotion of your everyday life. You should not feel stressed out from booking your flight or train tickets. Use these travel booking apps to make sure that you have the best trip and vacation ever.

What is Sukanya Samriddhi account scheme? Know all about it

The Sukanya Samriddhi scheme is an insurance scheme introduced by the Government of India.  The scheme aims towards securing the girl child’s future and providing education to them.

How to open an account with Sukanya Samriddhi Scheme

You can open a Sukanya Samriddhi account in any of the authorized branches of commercial banks or in a post office. People belonging to the lower-income wage groups can also opt for the Sukanya Samriddhi scheme as this is a government-backed scheme and will ensure many benefits for your daughter.

You can open an account for your daughter during the time of her birth or when she turns 10 years old. A mandatory deposit of Rs.1000 is required for opening and maintaining the account and Rs.1.5 lakhs should be deposited in a financial year.

One of the positives of this scheme is that it guarantees an equal share to a girl when it comes to the savings and resources of a family. Once your daughter turns 21 years old, she will be able to withdraw 50% of the savings from the Sukanya Samriddhi account.

Benefits of the Sukanya Samriddhi account scheme

The benefits of the Sukanya Samriddhi account scheme are-

• Interest post maturity- One of the biggest benefits of the Sukanya Samriddhi account scheme is that you will receive interest on the money even after your account reaches its maximum maturity. You will continue to get this interest unless you close your account.

• Ensured maturity benefits- When your account reaches its maturity age, you will receive all your money along with all the interest. This acts as an important tool for supporting and empowering women.


• High-interest rate- Sukanya Samriddhi scheme offers an interest rate of 8.6% which when compared to other small savings schemes, is the highest. Every year, the Government of India announces the interest rate for the current financial year and this interest is compounded yearly, which means it will also be credited yearly.

• Lock-in period- The lock-in period is one of the best features of this scheme. Once you turn 21 years old, you can withdraw 50% of your funds from the account. However, if you need to withdraw money before you turn 21, then you can only do so to pursue higher education (only after you turn 18 years old). Keep in mind that you will only be able to operate this account until the time you get married.


• Income tax savings- You will be eligible for tax exemptions if you have Sukanya Samriddhi account, under Section 80C of the Income Tax Act. Exemptions can be availed during the time of withdrawal and on interest.

The Sukanya Samriddhi scheme allows parents to provide education to their daughter and helps countless girls to achieve their dreams. Apart from education, this kind of scheme also helps in regulating child marriage and helps girls in moving in the right direction in their lives.

A summary on loan against LIC policy

Life Insurance Corporation or LIC is the largest insurance company in India and the most popular one amongst people looking to purchase life cover policies. Along with insurance policies, it also provides loans against LIC policy making it the most sought-after insurance company of this country.

Eligibility for a loan against LIC policy

A loan against an LIC policy is one of the easiest and simplest loans to avail in the finance market, currently. In order to avail loan against LIC policy, you need to fulfil the eligibility criteria mentioned below-

• The applicant should be a valid LIC policyholder
• The applicant should be a resident of India
• The applicant must be aged 18 years or above
• At least 3 years of insurance premium should be paid in full by the applicant
• The chosen policy should be an endowment policy with a surrender value. The maximum loan amount cannot cross 90% of the concerned surrender value. In the case of paid-up plans, it will be 85%.

Terms and conditions for a loan against LIC policy

Before going for a loan against LIC policy, you must have a very clear idea about all the terms and conditions.

• The interest will be paid twice a year
• The minimum tenure is 6 months
• In the case of the policyholder’s death, the interest will be calculated until the date of his/ her death
• The loan amount provided by the LIC is up to 90% of the surrender value and 85% in case of paid-up policies
• If you have gone for a long-term loan, then you will have to pay 6 EMIs prior to repaying your loan
• If your policy matures, then your maturity amount could be utilized to pay off your principal amount

Terms and conditions of a loan will differ based on the policy agreement and document

Benefits of a loan against an LIC policy

Some of the benefits of a loan against an LIC policy are the following-

• Applicants with a low credit score can breathe a sigh of relief, as LIC does not check credit scores before giving a loan. So, do not worry if your credit score ratings are not that impressive.
• Since the policyholder is technically borrowing his own money, the process of loan disbursal will be fast.
• A guarantor or third party is not mandatory.
• It provides a substantial amount of financial flexibility since the policyholder will have to pay the loan interest semi-annually.
• Compared to other banks, LIC does not charge any money for prepayment of loans or processing fees. This allows the policyholder to save a lot of money.
• The interest rate is 9% to 11%, which is quite low as compared to the other options in the market. Other banks charge around 16% to 24% interest on loans.
• You can also apply for a loan against LIC policy online, which makes it more of a convenient option for you.

LIC is one of the most reliable and reputable companies in the Indian market. If you choose to take a loan from here, you can rest assured that you will be in safe hands.

What are the rules related to fixed deposit schemes?

Despite the fluctuating rate of interest, a fixed deposit scheme remains a very lucrative option for customers who want guaranteed returns on their investments. A fixed deposit investment comes with different maturity periods, ranging from 7 days to 10 years. Opening a fixed deposit account is not really a difficult thing. However, you must be aware of certain rules that come with this service.

• Joint fixed deposit
If you have a joint fixed deposit account, then the Tax Deducted at Source or TDS will be deducted from the first account holder’s PAN. In addition, the interests are also paid to the first depositor and the tax liability is measured on the first applicant’s name only.

• Interest income clubbing
The interests earned on your fixed deposit account are clubbed across all the branches of the respective bank. This is done for determining the applicability of the TDS and for evaluating the total interest accumulated during a financial year.

• Overdraft/ loan facility
Many banks offer overdrafts/ loan facility up to 90% of the principal deposit. In such cases, the banks charge 1% hiked interest rate compared to the interest rate earned on the respective fixed deposit account.

• Deposit insurance
Deposit insurance is defined as a protective cover that you generally get on your bank deposits. It is offered by a subsidiary of the Reserve Bank of India (RBI) known as Deposit Insurance and Credit Guarantee Corporation (DICGC). This premium is paid by the bank itself and in case it fails to do so, it has to pay a maximum amount of Rs.1 lakh to each depositor for both interest and principal amount.

• TDS factor
The interest imposed on your fixed deposit scheme is taxable. This signifies that your interest income will be added to your income and taxes will be imposed on it, based on additional tax slabs. Generally, banks deduct 10% on the interest earned in case the annual interest income is Rs.10,000. If any of your refunds are due, then you will have to file an income tax return to claim it.

• Accounts for minors
If you want to open an independent account, then you will have to be 10 years or above and should have the ability to read and write. If not, then you will have to open a joint account with your legal guardian. The maximum amount that you can deposit in your account should not be more than Rs.1,00,000. There are no limitations when it comes to minors aged above 14 years.

Fixed deposit investment can go a long way in helping you save money not just for the present but the future too. Since you are investing your hard-earned money in this account, it is always ensured that you get sufficient and lucrative returns for that. Therefore, do not shy away from opening a fixed deposit account today. In case you have any doubts or questions, you can call on your bank’s helpline number and consult them.

Know all about Atal Pension Yojana

If you are someone who belongs to the informal or unorganized sector, then the Atal Pension Yojana is a godsend for you. Introduced by the Indian government in 2015, this pension-based scheme aims towards encouraging the habit of saving for retirement amongst daily wageworkers. In addition, not just daily wageworkers, people who have private sector jobs can also apply and invest in this scheme.

Features of the Atal Pension Yojana

In order to have a better understanding of APY, you need to be aware of the important features of the scheme, which are-

• Co-contribution by the Government of India
In order to encourage more people to invest in the Atal Pension Yojana, the government will also contribute for the duration of 5 years i.e. from 2015 to 2020. All these contributions will be sent to the accounts activated between June 1 to December 31, 2015. All the respective customers must keep in mind that they are not covered under the Statutory Social Security Schemes and must not be income taxpayers. In order to get the government’s investment, you need to invest regularly every month during the entire course of a year. It is only then that the Government of India will put in their 50% of their monthly contribution in your account.

• Subscriber payment/enrolment
If you have a valid bank account, then you can utilize the auto-debit service for making payments to your APY account on a monthly, quarterly and half-yearly basis. However, remember to make all your payments on time, otherwise, you might be subjected to penalties. Moreover, if you do not make monthly investments, then the government can close your account and penalize you.

• The investment made by the customer
If you start investing in your APY account from the age of 18 years and pay Rs.42 every month, then you will be getting Rs.1000 as your pension amount after you retire. The monthly investment will vary from person to person, as it will depend on your duration and when you joined the Atal Pension Yojana scheme. If you have a debit card, then you can use the auto-debit feature for making your monthly payments. In case you decline the payment, then you have the freedom to re-enter the scheme by paying the due principal amount for the exact tenure along with the rate of interest.

Eligibility criteria for the Atal Pension Yojana scheme

In order to invest in the Atal Pension Yojana scheme, you need to fulfil their eligibility criteria. The Atal Pension Yojana eligibility criteria are as follows-
• People aged between 18 years to 40 years only can apply and invest in this scheme
• The government also invests in this scheme but only for a few specific customers
• Only customers who have an active and valid savings account can open an APY account
• It is mandatory for you to have to a valid mobile number which you will need to register during the time of application

The Atal Pension Yojana serves a very useful cause that will not just help you inculcate the habit of saving but will also make sure that you get to spend your sunset years and retirement with peace of mind.

How to invest in a National Pension Scheme?

The National Pension Scheme is a scheme in which employers and employees both contribute, and the entire amount is paid to the employee after he retires. This scheme was introduced to facilitate systematic savings amongst employees of state and central governments and among common citizens. The NPS was put in to practice on 1st January 2004 with the intent of revolutionizing the pension scenario in India.

How does the National Pension Scheme work?

Under the National Pension Scheme, a customer can invest in several different pensions’ funds. Generally, investment of these funds is done by the Pension Fund Regulatory and Development Authority, and is handled by professional fund managers. You get an option to switch between various pension funds but you have to continue with your funds for at least a year before you switch from one to the other.

If you want to open NPS account online, you will have to start with two accounts- Tier-I and Tier-II. You will have to open a Tier-I account, in order to make yourself eligible for starting the Tier-II account. The difference between the two accounts is that the Tier-I account does not give you the freedom to withdraw money whenever you want. You can only do so, once you reach 60 years of age. Whereas when it comes to the Tier-II account, you can withdraw money whenever you like.

What documents are required for investing in the National Pension Scheme?

You will need to submit the following documents if you are planning to invest in the National Pension Scheme-

- Identity Proof such as Aadhar Card, PAN card, Ration card with a photograph, Passport, Water Bill, Bank Passbook, Electricity Bill and Job Card provided by NREGA. Anyone of these documents will suffice.
- Address Proof such as Ration Card with a photograph, Passport, Bank Passbook, Aadhar Card, PAN Card, Photo Identity Card etc.

How much investment do you have to make?

You will have to invest in the NPS scheme in the following way-

- You will have to invest at least Rs.6000 annually and the minimum one-time contribution is Rs.500. However, keep in mind that these figures are only applicable for Tier-I accounts.
- If you have a Tier-II account, you will have to invest at least Rs.2000 annually and Rs.250 one time.
All these funds can be contributed to, or invested in the form of cash or cheques.

The National Pension Scheme is one of the most favourable ways of saving money for your retirement. It encourages and fosters the habit of savings amongst people with the intent of showing them the value of having a retirement fund, and how it can tremendously help you in your old age.

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

Debit cards have become a necessity for everyone these days; you can find almost everyone carrying a debit card with them. Debit cards are a convenient mode of payment. If you have a debit card with you, you will not have to carry a whole lot of cash for transactions and expenses and it will prevent you from overspending due to the limits imposed on debit cards. However, if you are not quite sure of the different types of debit cards available in the market, and how they work, then read on.

1. MasterCard Debit Cards
MasterCard is one of the biggest and widely used debit cards in the world and since they are very popular, almost all the major banks provide their customers with one. Because of its vast reach, you can use MasterCard to withdraw money from any bank in the world and not just India. You can also use this ATM card to shop from any foreign online store, which you cannot do with any and every debit card. Additionally, MasterCard boasts of a very impressive 24/7 customer service and resolves issues rapidly, and is also known for their lucrative customer benefits and rewards program.

2. Visa Debit Cards
Visa debit cards are the most popular form of ATM cards in India. Almost everyone has one and a majority of Indian banks have a tie-up with it. There are several reasons behind their popularity and they are as follows:
- The Visa Global Customer Assistance Service provides a 24-hour customer service, which makes it easier for customers to reach out them in case of any emergencies or doubts.
- The Verified by Visa (VBV) service ensures increased security when it comes to online transactions so that you can shop online without any tension and worries.
- The 24 Hour Concierge Service feature contributes to making things like hotel reservations, purchasing flight tickets, flight reservations, restaurant reservations etc. a lot easier.
- Their Visa ATM network is also very vast and provides a wide coverage.

3. Maestro Debit Cards
Maestro Debit Cards serve as the choice of over 1.5 Crore POS terminals in India except for a few. The biggest reasons for their popularity are their low transaction costs and the fact that they are fast and flexible. Maestro Debit Cards are protected by a very advanced security system, which makes them a very safe option for users. This card can well be used as an international debit card, in case you are travelling abroad. Due to all these reasons, it is the preferred choice of ATM card for the majority of banks out there.

4. RuPay Debit Cards
Ever since RBI has introduced RuPay in 2012, it has rapidly gained popularity amongst the masses. Many people, due to easy availability in rural areas and low transaction costs, consider using RuPay. It is also believed that this debit card is more flexible than its competitors are. In addition, it allows safe online transactions and secured payment at POS terminals.

3 things to consider before opening a demat account

A demat account stands for a dematerialized account and is the equity equivalent of your bank account. Your bank account is responsible for keeping and holding on to your savings, similarly, a demat account is responsible for holding your shares. However, before opening a demat account you need to take a few important factors into consideration, which are-

1. The reliability of your demat account platform
Almost all brokers these days provide you with access to your respective demat account through a single platform. Your credits and debits to your bank account and demat account along with the funding of your bank account take place very smoothly. Make sure that your demat services have a very strong technology platform which will ensure that the entire process takes place without a hitch. Generally, when you sell your shares, the demat trading account is debited the very next day and if you buy shares, then the account is credited within 2 days from the date of the transaction.

2. Smooth custody, broking, and banking
If your broker is a bank then all the three crucial activities of custody, broking and banking can function seamlessly. In case your custody and broking are impeccable and if you transfer money through UPI, NEFT, RTGS or any other authorized payment getaways, then you will not face any kind of hassles. However, keep in mind that many brokers charge a nominal amount for using an authorized payment getaway, so it is a better option for you to use UPI/ RTGS/ NEFT. Hence, the smoother these three activities work fewer chances are there for you to experience administrative issues.

3. Trading and demand are with the same broker
Before opening a demat account, make sure that your broker has a legitimate demat license so that he can open a trading-cum-demat account for you in one go. Next, you need to provide him with your debit instruction slip (DIS) on time, once you sell off your shares. In case you do not give him the DIS on time, it can lead to losses and bad deliveries. That is why it is better when your depository participant (DP) and broker are the same since it makes the entire process easier and more convenient. You can just go for online demat services and trading, and provide your broker with a power of attorney who will credit the account during purchase and debit at the time of sale. This will save you from a lot of hassles and extra responsibilities.

Selling shares can bring in a lot of money in your pocket but you will have to be very careful about handling and saving them. Along with your savings account, having demat trading account is always considered a smart decision. It always ensures that your shares are in a safe and secure place and which you can utilize whenever you deem fit.

6 ways to do smart grocery shopping online

Buying groceries is probably one task every person keeps avoiding. There is never enough time to go buy boring grocery until you completely run out of food. Online grocery shopping is a great way to eliminate the need to visit the grocery store to buy grocery and saves you time and money if you do it smartly. There is also no need to doubt the quality of online grocery as most sites sell fresh food and have easy return policies.

Follow these smart tips when you shop for grocery online and you will be surprised to see the time and money you save.

The List
Whether you buy online grocery or go to a store, making a list of the things you need is vital. Without a list, you are likely to buy things you do not need and miss the important things that you do. Furthermore, making a list makes the entire online grocery shopping faster.

Compare the Prices
As with any other commodity, the prices of various groceries vary from provider to provider. Check out a number of online grocery stores and compare the prices with each other and with the physical store in your area. This will save you a lot of time and money, even if it means spending a little extra time in your first few attempts. It is advisable to go for the bigger brands even if it means paying slightly more.

Online Grocery Shopping Coupons
No matter what you need, there is always a coupon for it if you are willing to look. A little research online for deals on online grocery can bring down your grocery expenses significantly.

Shipping Charges
Although you get to buy grocery from the comfort of your home, almost all the grocery come with shipping charges included. Check various sites for lower shipping charges. Additionally, most online grocery shopping sites exclude shipping charges on bulk orders above a certain amount. Buying over this specified amount is more profitable.

Pay using Online Wallet
Using an online wallet or card that offers you a discount on buying grocery online from certain online grocery shopping sites is another great way of saving money.

Buy Locally Available Generic Grocery
Although online grocery shopping sites spoil you for choices, it is best to avoid temptation. Locally available produce that is currently in the season have low prices and are fresh. If you are not buying for a fancy meal, it is best to go with these. You can extend the same principle to buying generic groceries over overpriced brands.

There are a large number of apps, which bring the grocery to your doorsteps, in a matter of minutes. Applying these tips when you shop next will vastly improve your savings. The best part is you do not need to spend any time going back and forth to the grocery shop.

The best mobile recharge apps of all time

Mobile phones have become as essential in life as food and water. From news to shopping, work to social media, everything occurs on this device. Imagine running out to balance when you have to make important calls or access the internet. It would be completely undesirable and can leave you stranded and helpless.

Mobile recharge apps solve this problem by allowing quick and easy online recharge of your mobile balance anytime, anywhere. Despite the multiple mobile recharge apps that are available, here is a list of the best.

Mobikwik
With more than 40 million users, Mobiwik allows fast and safe recharges online. You can store money in the online wallet or pay using credit cards, net banking, or a door-to-door cash collection service. It is authorised by the Reserve Bank of India and allows savings up to Rs. 500 on mobile recharge.

PayTM
Although PayTM covers a large range of services, mobile recharge is among its premium services. You can use the PayTM wallet to recharge your phone and avail several discounts on recharges. You also get access to special tariff plans and internet recharge plans exclusively for PayTM users.

FreeCharge
This app allows you to recharge your mobile through their wallet. You get a full refund of the cash in the form of coupons that you can use at a variety of retailers like Shoppers Stop, McDonald’s, Barista, Café Coffee Day, Cromā, Puma, etc. Therefore, this app offers you a phone recharge for virtually no money at all.

PhonePe
This recharge app allows you to link your bank account directly with the app. You can recharge your phone and send money to your friends. You also get bonuses for inviting your friends to use this app.

PayZapp
PayZapp by HDFC Bank can be used for safe mobile recharge. You do not have to load any money unlike other apps and the app links directly with your HDFC card, whose details remain secure. There are three security stops for every transaction. This assures the safety of highest quality.

With these online recharge apps handy, you do not need to worry about a last-minute mobile recharge. With a couple of clicks, your balance will be good to go in an instant. The best part is you can do it anytime from anywhere and end up making huge savings on your mobile bill.

A guide on how to shop online

Today everything from clothes to food is available on websites that assure quick delivery and finest quality. The shopping apps of e-commerce websites make accessing their services much easier and convenient.

However, if you are not aware of the intricacies of online shopping, here is a complete guide that tells you how to grab the best online shopping offers and get the best products.

Go Through the Reviews
Probably the most helpful tool when buying through shopping apps, customer reviews give you an insight into the actual quality of the product. However, be careful about trusting the review if the reason for liking or disliking a product is not specified.

Research the Prices
When it comes to online shopping, research is your best friend. Different e-commerce websites have different prices for the same item. Check out several websites to find the product that you want at the best price.

Online Shopping Offers
Check different websites to get the best online shopping offers for the product you wish to buy. There is usually an offer that you can avail! The only catch is you have to dedicate some time online to look for online shopping offers that you can use.

Return Policy
Always buy products, which you can return without any charges in case of defects. Read the return policy carefully to find out if you can only exchange the size or get a new product when there are defects in the product. Some policies will return the money to your account in case of discrepancies while others will not. You might also have to pay for the shipping of the item you return.

Shipping Costs
A product that appears inexpensive may not be that cheap after adding the shipping charges. Shopping apps usually show the price of the product without shipping costs at first and then add it to your final bill. Remember to check it before you hit buy!

Check the Warranty
This is applicable for gadgets and electronics. Be careful about investing in such products that come without warranty.

The Fibres
If you are buying clothes or fabrics online, check its material. The fibre affects the way the fabric hangs around your body and the way it looks in general. Unless you check this, you may be in for a disappointment and end up with clothes that look nothing like you imagined you would get.

Keeping these basics in mind will help you make the best of your shopping experience. Now that you know the little details of online shopping, all you need to do is go on an online retail therapy. Happy shopping!

4 Free Apps that Break the Vacation Planning Woes

Planning for a trip unlike in the olden days where plans would sometimes begin a year or months ahead usually with a travel agency has now become a much simpler business comprising only of a couple of minutes. With technology and smartphones, there is now little that cannot be achieved. The coming of apps has significantly made all our lives easier. There is practically an app for everything these days, be it grocery or clothes shopping, cab on call, fitness or cooking. To add to this ever-increasing list here are some of the best travel apps that are free of cost.

1.    Tripadvisor
Tripadvisor, which started as a search engine in 2000 now serves as a convenient travel guide app that is a repository of hundreds of restaurant, hotels, and reviews from different countries around the world. You can also find a listing of the lowest airfares, hotel rates and research about the best places to visit or go for fun in the city that you are planning to visit. The ease of usability is one of the popular features of this app.

2.    MakeMyTrip
Founded and headquartered in Haryana since 2000, Make My Trip is a great travel booking app in India. It offers its services in booking for flight tickets, both domestic and international, hotel and rail bookings as well as bookings for travel packages. An Indian venture for and by Indians, Make My Trip was initially begun with the idea of catering to the Indian community residing in the US for their back and forth travel needs between US and India. Over the years Make My Trip has grown by leaps and bounds and now has offices in Singapore, Bangkok, Dubai, and New York, to name a few.

3.    ClearTrip
ClearTrip started in 2006 as a travel company online operational as a service provider for flight, train and hotel bookings. Featured as one of the best travel apps, ClearTrip mainly operates as a travel company between the Middle-eastern countries and India. Resultantly it has offices in India, Egypt, Saudi Arabia, and the UAE.

4.    Expedia
Founded in 2001, Expedia is a travel booking app that mainly deals with hotel and flight ticket bookings. Aside from this Expedia also provides its services for renting cars, booking for a cruise trip and travel packages.

Aside from the ones mentioned above, there are a number of other apps that also function as a useful travel guide app. These include Goibibo, Tripoto, and Yatra.

Tips on how to use a travel app

You can never be too prepared when you travel to a new location or territory. In such situations, travel apps can be your best friend. From getting the dream travel deals to making sure you are safe, travel apps take care of it all. However, knowing how to use a travel app in the best way possible is a trick in itself.

Here are the best ways to use travel apps to get the best deals and make most of your travel!

Keep Track of Your Schedule
When you are visiting many destinations, it is easy to get confused about the flight details, flight timing, hotel reservations etc. Going on a hunt to find the confirmation e-mails at the last minute is a hectic process and a colossal waste of time. Travel apps help you keep a track of your flight schedules, hotel reservations etc. and send you reminders.

Advance Bookings
You can get the best travel deals if you are an early bird. However, being too early can be expensive too. Travel apps inform you of the best time to do your bookings and save you a lot of money.

Use the Travel Miles
Finding the best travel deals and using your reward points from credit cards or flyer miles are the most important things that your travel app can do for you. This saves you a lot of time and money.

Find Your Way around Airports
Airports are huge and finding your way to the correct terminal can be chaotic. Travel apps can deal with this problem as well. All you need to do is to notify the name of the airport to the app. You can then seek directions to the correct terminal from the app itself.
You can also pull up a list of cafes and restaurants in the airport, and read reviews of the same. So next time you are stranded in an airport for a long haul, you know exactly what to do with your time.

Exploring New Cultures
Travel apps help you get to know the culture of the place you are visiting by pulling up the list of tourist spots in the town. It also shows you the way around the town and helps you plan the itinerary for the day. You can book rentals and hotels at your destination with a travel app. This way you can make the best use of your time at the destination and not miss anything.

Manage Money
Travel apps keep you updated with the exchange rates and help you keep a track of your expenses. This goes a long way to help you stay within your budget.

With these tips, you can make the best use of your time and money when you are travelling and enjoy tour trip to the fullest.