What is gold loan? 5 points that explain how it works

Gold loans have become one of the most popular types of loans. Getting a gold loan is simple and flexible as well in terms of repayment tenure, gold loan interest rate, interest rate calculation, principal repayment etc. Some lenders also disburse funds immediately after the gold is pledged with them.
Here are 5 points that explain how a gold loan works:

1. Secured loan:
A gold loan in India is a secured loan. This means that the gold has to be deposited with the lender. The lender has to keep this gold safe and secure under lock and key. The gold is returned to the borrower once the loan is fully repaid.

2. Amount of loan and rate of interest:
The amount of gold loan depends on the value of the gold that the borrower brings. Most lenders independently test the gold to find out the purity of the gold i.e 18 karat, 22 karat, 24 karat. Some lenders may only lend for gold of a particular purity level while others accept all types of gold. The loan amount is usually a percentage of the value of the gold. This percentage can range between 60% to 75%.

The gold loan interest rate depends on the lender but ranges between 10% to 20%.

3. Short tenure:
Gold loans typically are given for short tenures that may last up to 12 months. It is advisable to take gold loans only if you can repay the loan on time. In case the loan can’t be repaid, the lender will auction the gold to recover the loan amount. 

4. Prepayment:
Most lenders allow the borrower to prepay gold loans without any extra charges. Unlike other loans like personal loans which come with prepayment charges, gold loans can be repaid at any time after they have been disbursed. Once the loan is paid off in full, the secured gold is released.

However, not every lender will have the same repayment terms. It is important to go through the repayment terms. Some lenders may allow principal repayment at the end of the tenure while others may allow EMI type structured payments

5. Documentation:
Gold loans do not require many documents. Since it is a secured loan, the only documents required by lenders are PAN card copy, address proof, identity proof of the borrower.

Before you apply for a gold loan, you can use a gold loan calculator to find out the amount of loan that you will get when you put up gold of a particular purity.  Gold loans are convenient to opt for where funds can be disbursed on the same day.

Want to send money instantly? These are its 3 advantages

Sending money to a person is no longer the time consuming process that it was earlier. With the revolution in digital banking, using cheques to transfer money has become obsolete. There are many different ways to transfer money online these days with some modes transferring funds instantly from one account to the other. These are the different ways how to transfer money online:

• National Electronic Fund Transfer (NEFT):
Under NEFT, transfers are executed electronically within a couple of hours. For NEFT, the beneficiary has to be added to the bank’s authorized third party transfer list. NEFT transactions are settled by banks at intervals of time which means if the transaction is authorized by the customer, it is in queue till the next settlement period.

• Real Time Gross Settlement (RTGS):
RTGS transactions are settled by the RBI. These transactions are settled immediately and on one to one basis. A minimum amount of Rs. 2,00,000 per transaction is required for RTGS.

• Unified Payments Interface (UPI):
Under UPI, payment is made using the UPI ID of the person as compared to the bank details. UPI is processed using the IMPS network which means this transfer can be done 24*7.

• Immediate Payment Service (IMPS):
IMPS uses the mobile number of the customer to make a payment using the mobile number and a special ID. IMPS can be done 24*7.

These modes of fund transfer allow a customer to send money online instantly. Here are the advantages of this type of fund transfer:

1. Convenience and guarantee of payment:
One of the best advantages of sending money online is the convenience that it offers. The administrative work involved with paying via cash or cheque is completely eliminated because of online payments. Instant online payments also almost always get credited to the recipient’s bank account immediately, thus providing a guarantee of payment.

2. Secure:
Online payments are a secure way of making payments. Modes like RTGS are backed by the RBI. Most fund transfers are initiated after double checks from the customer, thus ensuring that the transaction can be cancelled. However, transactions like RTGS, UPI and IMPS instantly debit the bank account which is why the user should exercise caution about the accounts the funds are transferred to.

3. Economical:
One of the reasons to send money online instantly is the low costs. At the moment, UPI transactions are free of cost. NEFT and RTGS transactions depend on the value of the transaction but range between Rs. 5 and Rs. 50 per transaction. IMPS charges range between Rs. 2.5 to Rs. 15 per transaction. These charges are nominal as compared to the convenience offered of instant fund transfer.

6 Important Tips Before Travelling Abroad

At a certain point of life, we save money to ensure that we take that vacation outside India. That experience is something most of us cherish until the end of our lives. However, there are some things you need to consider before travelling abroad. We list six tips you should consider before travelling abroad and how travel guide apps can help with that:

1. Registration and Documents
 Register with your embassy and Share your tour plan with them. They can contact you in case of emergency do need full. You should also leave one copy of the passport at home; they will come in handy in case you lose your original passport. You can also make an electronic copy and save it in your mailbox. There are several apps for travel which allows you to store a digital copy of the passport. It will help you to prove your citizenship in case of emergency.

2. Vital Gadgets
Keep chargers and adapters of every gadget that you are taking abroad. Ensure that you are aware of the various plug points available in the country you plan on visiting. Also, ensure that you have international roaming so you can make uninterrupted calls. Or use the hotel WiFi to make calls on social media apps such as WhatsApp or Skype

3. Monetary Conversion and Credit Cards
Study the money conversion rates and make sure that you compare your currency to the place you are visiting. Then plan your budget accordingly. Check if your credit card is acceptable at the place you visit. Always carry local currency of the place you are visiting because everybody will not accept credit card for payment.

4. Research on Location
Check the weather conditions of the place you are visiting and pack your clothes accordingly. Also, do some basic research on sites you are visiting and make a rough budget of your spending. You can take help of various travel guide apps to plan your trip.

5. Accessible Luggage
You will find an extra layer of security at international airports. You should know what to carry on board your flight and pack your luggage accordingly. Light baggage will make your trip hassle-free. You can also refer to travel guide apps for details. 

6. Health and Medication
Before your foreign journey, make sure that you have consulted your doctor and taken vaccinations, if required. It is advisable to go through a complete body check-up. Furthermore, if you are on a specific medication, ensure that you have enough on you, as getting medicines abroad may require a prescription from a local doctor. Also carry antibiotics and digestion pills.

Planning to take an education loan? Consider these 5 tips

An education loan is a type of loan given by lenders to meet the cost of education. This may be for school education or for college education i.e both for undergraduate and postgraduate studies. Loans can be availed for studies to be done both in India and abroad. Education loans are given by most of the banks and NBFCs. This loan is directly paid by the lender to the educational institution.
If you’re planning to take an education loan for yourself or your children, consider these 5 tips:

1. Education loan eligibility:
Education loans can be availed by the student. This loan is usually taken jointly by the child along with the parents. The most important precondition for education loans is that the student should be enrolled in the course of his choice, whether it is in an Indian college or a college abroad, or a school. The loan applicant should also be an Indian citizen. The amount of the education loan depends on the course fees and the income of the co-applicants.

2. Tax deduction:
It is possible to get a deduction on the interest paid on an education loan under Section 80E of the Income Tax Act. This deduction has no specified limit which means the actual amount paid as interest can be claimed as a deduction. This deduction can be claimed for eight years.

3. Education loan interest rate:
The rate of interest on the education loan depends on the lender and also on the loan amount. The education loan interest rate also changes depending on whether the loan is for education in India or education abroad. Some banks may give concessional rates of interest for women. There are different Central Government interest concession schemes that can help a student to reduce the rate of interest.

4. Education loan repayment:
Most education loans have a moratorium, which means the repayments do not begin until a specified period after the course commences. This is to reduce the repayment burden on the borrower student. Once the moratorium period ends, the repayment of the loan begins through periodic EMIs.

5. Education loan procedure:
Applying for an education loan is very simple. One needs to collect the form for an education loan and fill it up and submit it to the bank with the relevant documents. Some of the documents required for an education loan are:

• Proof of admission in educational institution
• Estimate of costs. Some lenders may only cover tuition costs while others cover stay and other expenses as well
• Identity proof documents (PAN, Aadhar Card, Passport, Driving Licence, VoterID)
• Address proof (Aadhar Card, Passport, Driving Licence, Voter ID)
• Income proof (Income tax returns, bank statements)

You can also read on how to get an educational loan on the different bank websites online.

Planning to shop online? Here are 5 benefits of doing so:

With the advent of e-commerce, smart phones, and digital transactions, shopping online has become easier than ever. There is now no need to physically visit a store, try and check the products and then purchase them; all of it can be done in a matter of a few clicks.

But, several people restrict themselves from shopping online. Some people may not know how to shop or may doubt the genuineness of the products. However, online shopping is an excellent way of getting the products you want at your fingertips and pay for it using an easy money transfer app. If you’ve been on the fence about shopping online, here are some benefits and reasons for you to make a leap and order from different e-commerce stores.

Here are 5 benefits of shopping online:

1. Convenience:
In our busy lives, online shopping provides unparallelled convenience. It is possible to get a whole range of products at the tip of your fingertips. While some e-commerce sites are specialized, others are broad marketplaces that provide a wide range of products. These products once ordered are delivered to the address the user provides, making it convenient to even order for other people.

2. Price comparisons:
A traditional shopping experience is to visit different stores, take a stock of the price of different items and buy the one which provides the highest quality at the best rate. However, all of this can easily be done via online shopping, especially when it comes to consumer durable products. Online shopping marketplaces provide unbiased price comparisons for different brands.

3. Take advantage of low prices:
Online marketplaces provide deep discounts to their customers. Sometimes, special discounts are provided to regular users. Sometimes the prices offered online are lesser than the prices in offline stores, which provides a lot of savings.

4. Avail cashback or card points:
Many international money transfer apps, credit cards and debit cards have tie ups with online shopping sites to provide cashback or card points. Some credit cards earn card points or airline miles depending on the amount spent. By spending for online shopping, it is possible to take advantage of these offers which can benefit in another area in the future.

5. Ease of payments:
Online shopping doesn’t necessarily mean card payments. There are different modes such as credit or debit card payment, wallet payments, internet banking, UPI, EMI payment for high value items, and offline cash on delivery system. It is possible to choose your mode of payment separately for each order.

Top 10 Helpful Apps while Travelling Alone

Solo trips are fun provided, you plan well and ensure you are well-versed with the dos and don’ts of travelling alone. One constant companion on these trips is your smartphone, which you use to take pictures that are shared on social media platform. Also, most travel apps are built keeping smartphone technology in mind.

We list six travel apps to consider in 2019 that will add to the memories you will bring back with you on these holidays:

1. Google Trips
The most significant advantage of this travel app is that you can access saved information offline. Google Trips organises your travel information at one place and synchronise Gmail to keep you updated with online tickets and last-minute changes in the schedule of flights and trains among others

2. TripAdvisor
This travel app allows you to search places based on your interest and budget. You have the option of reading visitor reviews that give you an unbiased opinion of a place you may want to book. 

3. MakeMyTrip
MakeMyTrip is a one-stop shop for booking flight tickets, buses or train tickets, as well as hotel rooms. The interface is user-friendly, and it is one of the most popular trip-planning apps in India.   

4. Oyo Rooms
This app is perfect for travelers who are looking for low-cost accommodation. This app is operational across more than 500 cities across the world. They provide essential amenities at affordable rates.

5. Cleartrip
Cleartrip is a tour-planning app where you can browse for weekend hangout places near your location. The app also facilitates ticket bookings for flight, trains and buses. You can select hotels in sync with your reservations and make the payments as well.

6. Google Maps
If you are using an Android OS on your handset, the google map is available in all phones. For iOS and Windows-enabled phones, you need to install this app. Google Maps are one of the best travel apps for navigation across the world as it reduces the dependency on printed sheets. 

Want to apply for car loan? Here are 5 ways to increase the eligibility

A car loan is one of the most popular loans that lenders give out. It is very easy to get a car loan to buy the car of your choice. However, each lender has their own eligibility criteria to give out a car loan. Before applying for a car loan, it is best to check out the lender’s eligibility criteria and select such a loan that will fulfil all your requirements.

Some of the common car loan eligibility criteria that a lender looks at for every car loan application are:

• Age of the loan applicant
• Monthly income
• Existing loans or EMI obligations
• Credit score
• Minimum tenure of employment/self-employment
• Minimum period of stay in a particular city

Even if a person meets the minimum age or the minimum income requirements, a loan may get rejected or a lower amount may be sanctioned. Here are 5 ways to increase eligibility of a car loan.

1. Reduce existing debt:
Most lenders consider the existing debt that the loan applicant has to service before approving a loan application. One of the ways to strengthen your loan application is to reduce your debt especially all types of unsecured debt. Unsecured debt such as personal loans or credit card debt are a big  red flag for lenders. Reducing or paying off this debt will give additional comfort to the lender.

2. Improve credit score:
A credit score is an indication of the person’s repayment history and capability. A credit score above 700 is considered to be good by lenders. Repaying debt, not making too many loan applications will help to improve your credit score. The car loan interest rate depends on the credit score.

3. Joint loan application:
Jointly applying for the loan with a co-applicant who has higher income or a better credit score can improve your chances of getting a car loan.

4. Consider pre-approved loans:
Lenders may pre-approve loans for customers that have a long banking relationship with them. By opting for pre-approved loans, you can improve your car loan eligibility.

5. Suitable loan tenure:
By choosing a loan tenure that does not inflate your EMI, you can improve your loan eligibility. If the EMI does not eat up too much of your income, it can get approved faster. You can decide a suitable loan tenure by using a car loan EMI calculator which will tell you the EMI for different tenures. Using a car EMI calculator is very simple and it returns results immediately based on the principal amount, the rate of interest and the loan tenure.

Hesitant to use mobile banking? 5 reasons why you should switch to it

The banking landscape has changed entirely with the advent of digital technologies. Visiting the bank branch for getting work done is now turning out to be absolutely unnecessary especially with internet banking and now mobile banking. For many customers, the switch to internet banking is seamless.

Mobile banking is equally convenient and seamless like internet banking. However, many customers are often on the fence about using a bank money transfer app for their banking transactions. Mobile banking is the use of a mobile application to conduct banking transactions which would otherwise have been done in the bank branch or on the bank website. With almost all major banks having an official mobile banking application, it is time to use mobile banking for regular banking transactions.
Here are 5 reasons why you should use mobile banking:

1. Secure:
Most banks provide two step authorized logins to their mobile banking applications. The customer has to input not only the customer ID but also a PIN. Banks also frequently prompt the customer to change their passwords thus providing in built protection. Mobile banking is quite secure and app safeguards can prevent unauthorized logins in the app.

2. Convenient and simple to use:
Mobile banking is extremely convenient and simple to use. The user interface for these mobile banking apps is simple and well structured, even for a layman. The app prompts the user before a transaction is completed which gives the user an option to cancel it in case the transaction happened by mistake. Banks also have instructional videos and literature online on how to use mobile banking applications for beginners.

3. Range of transactions:
If you’re wondering how to transfer money online, then you can use mobile banking. Mobile banking can be used to transfer funds using NEFT, RTGS, IMPS, UPI. It can also be used to check the account balance, download a statement, pay utility and credit card bills, open fixed deposits etc. This makes it very useful.

4. Mobility:
Mobile banking enables the user to use it no matter where he is. There is no need to physically be present in front of a desktop or laptop. Mobile banking apps are specially designed to operate at lower speeds of internet which is optimized for people who want to use the app while travelling.

5. Accessibility:
A mobile banking application gives you access to important details about your account at any point of time. Since most users are always with their mobile phones, this saves time and also provides the required information quickly.

5 Features of DTH Services

The government has been promoting Direct to Home (DTH) services and this has changed the television-viewing experience altogether. The dependency on local cable operators has diminished, and the viewers have this option of paying for only those channels which they want. There are plenty of DTH recharge offers that you can avail and get cash back and vouchers.  Here we list the most important DTH features:

1. Clear Transmission
The clarity in transmission is quite evident when you switch to DTH. The signal is sent directly to the set-top box via a personalised antenna. The picture quality and the sound that you get is clear in comparison to generic signals provided by local operators.

2. Widespread Availability
DTH services use satellite transmissions and personalised antenna. That is why it can be set up in remote areas as well. You can avail DTH online recharge offers to pay for the subscription.

3. Uninterrupted Telecast
You are dependent on the mercy of local operator for cable services. The service depends on a constant power supply if there is a power cut at operator’s place, the service will discontinuse. DTH services do not have such issues. The telecast might get affected in adverse weather conditions, but otherwise, there are no issues.

4. The HD Experience
DTH services give us, at an additional cost of course, an experience to view our favourite television show or movie in high definition. HD viewing is more relaxing on the eyes because of the quality that you are exposed to.

5. Spoilt For Choice
DTH services give you a minimum of at least 100 channels to choose from in the basic package. This can be expanded based on your viewing. That way, you can watch international shows and keep up with what’s happening around the world


Many companies in the market offer DTH services; you can compare and choose the best option. The digital wallets also provide offers on dth recharge, which can decrease the cost of your subscription.

Five tips to secure mobile banking transactions

Mobile banking is one of the most convenient ways to conduct banking transactions. Not only has it minimized the hassle of visiting a bank branch to get tasks done, it is now possible to handle banking transactions in a matter of a few clicks. Mobile banking even scores over internet banking because most people have a smartphone, making it easier for people to transact on their phones as compared to a computer.

Most banks have a simple and user friendly money transfer app. These apps can conduct a wide range of transactions within a matter of minutes such as:

• instant fund transfer using NEFT, RTGS, IMPS or UPI
• balance check
• opening a fixed deposit or a recurring deposit
• bill payments
• credit card payments
• a

Using an online money transfer app has become a very seamless experience. However, the ease and convenience with using such apps has also led to a rise in thefts and other security breaches.
To avoid such security breaches and theft of data, here are five tips to secure mobile banking transactions:

1. Only use verified and official mobile banking apps:
One of the best ways to secure mobile banking transactions is to use the official money transfer app of the bank. These apps are released by the bank and bear the official logo of the bank. There are inbuilt safety mechanisms in these apps such as two step verifications, customer based logins which provide an added layer of safety.

2. Log out after each session:
It is imperative to remember to log out of the money transfer app after each session is complete. Some apps may prompt the user to log out automatically while others don’t. By logging out, you ensure that any unauthorised person does not get access to your account in case the phone gets into wrong hands.

3. Do not save critical data on your mobile phone:
Critical data such as bank account numbers, PIN and passwords, credit card details etc should not be saved on your mobile phone. Ideally, these details should be memorized to prevent it getting into unscrupulous hands.

4. Password or PIN protection on your mobile phone:
By setting locks for the mobile banking app, it provides an additional layer of security for the app user. App locks can be PIN based or pattern based.

5. Other precautions:
These include:
• clearing the browser history, cookies, cache and other details before giving the phone for maintenance.
• Install an anti virus software on your phone
• Keep the mobile banking app up to date
• Do not click on suspicious URLs received in SMS or emails

5 things to know before availing a bike loan

A two wheeler loan is a loan given to buy a bike or a scooter. It is a very popular loan to avail since the installments work out to be affordable. Getting a bike loan is very simple and a lot of lenders offer quick and easy two wheeler loans.

Here are 5 things to know before availing a bike loan:

1. Bike model:
This is the most important decision that has to be made. The amount of the bike loan depends on the bike brand and the model of the bike. The bike loan also depends on whether the bike is a new purchase or a second hand vehicle. The lender does not give out the entire cost of the bike. Usually around 65% to 80% of the bike’s ex-showroom costs are given to the borrower. The rest of the money has to be put in by the borrower.

2. Bike loan interest rate:
The rate of interest on bike loans ranges from 9% to 20% depending on the model of the bike and the repayment capability of the borrower. Having disposable income to repay the bike loan is an important element that determines the bike loan interest rate. A higher credit score will also help you negotiate with the lender for a lower two wheeler loan interest rate.

3. Repayment tenure:
The repayment tenure for bike loans generally ranges between 3 to 5 years. However, if you have a strong credit score, you can negotiate with the bank for a longer or a shorter repayment tenure. It is important to remember that the longer the repayment tenure, the higher is the amount of interest paid on the loan.

4. Bike loan EMI calculator:
To find out the amount that will be disbursed on a bike loan, you can use a bike loan EMI calculator. By using a bike loan EMI calculator, you can find out the monthly installment amount for different rates of interest and repayment tenures. This can help you make the best decision based on your financial capability.

5. Bike loan application procedure:
Applying for a bike loan is very simple and can be done online as well. If you’re a long time customer of a bank, you can get a pre-approved bike loan as well. You can apply for a bike loan offline by filling up a form and submitting it to the lender.

Advantages of Online Mobile Recharge

A mobile phone has become a necessity as it helps us in many ways other than calling and receiving calls. You can avail offers on mobile recharge via online apps. Here, we list the advantages of online mobile recharge:

1. Do It At Home
You can recharge your phone from anywhere that has internet connectivity. You can choose your plan and pay for it via digital wallets or internet banking and start talking and surfing the internet again. It saves time and effort. It protects the cost of transportation that you might have to pay to visit the recharge outlet.

2. 24x7 Availability
You can recharge your phone anytime you wish to. There is no need to wait for your local shop to open and visit there to get your phone operational again. You will also get so many offers on mobile recharge as well.

3. Use Cards and Digital Wallets
You don’t need cash for an online mobile recharge. If you keep withdrawing money from ATMs, it will charge you after a certain number of transactions. So, in that way you save money by charging your phone online. There are many digital wallets with an easy user interface which can recharge your phone with just a couple of taps. 

4. Get Discount and Cashbacks
The government is promoting cashless economy in the country. This move by the government has given an opportunity to many private operators to offer digital payment services. Due to cut-throat competition in this sector, the brand offers a discount and cashback to stay afloat in the market. You can switch between different apps to avail their recharge offers.

5. Prepaid and Postpaid
You don't have the facility of paying your postpaid bill at your local vendor. You are required to visit the office of that operator to pay the bill or deposit a cheque in the bank. With online recharge, you can easily choose between services and recharge immediately.

6. Choose from Different Plans
Sometimes when you visit a vendor for recharge, the vendor decides the talk time plan for your phone. They don't have time to let you know different offers and talk time. In the case of online recharge, you can view all the plans and choose accordingly.

Planning to get a business loan? Consider these 5 types

Business loan is an umbrella term that includes a variety of funding that is given to businesses for their various requirements. Lenders are mandated by law to lend to businesses especially small and medium size businesses.

How to get a business loan:
A business loan can be applied either online or offline through the lender’s branch. Several lenders may pre-approve businesses for a loan. The first step to getting business loans is to check the eligibility criteria that a lender may have.

The most common business loan eligibility criteria relate to minimum net profit and minimum turnover requirements for the business. The business must also have a positive net worth and favourable business ratios. Apart from that, the business has to specify the reason for the loan.

Most lenders have a business loan EMI calculator on their website which helps businesses to calculate their loan eligibility and also find out the funds that they can get from the lender. It is best to use these calculators before applying to different lenders.

Types of business loans:

There are different types of business loans to suit the needs and requirements of different businesses.

1. Term loan:
This is a long term loan taken to buy fixed assets such as land, building, equipment, machinery etc. These types of business loans are long term in nature and are mostly used for capital expenditures. These type of loans are generally secured loans and are backed by the asset that the funds are used to purchase.

2. Cash credit and Overdraft:
An overdraft facility is a type of temporary loan against the current account. Interest is only charged on the actual amount of overdraft. This type of loan is a temporary loan that does not have any fixed repayment tenure.

3. Government scheme loans:
Recently, to promote startups and businesses in the country, there are few schemes under which a business can avail funds:

• Pradhan Mantri Mudra Yojana: Loans under this scheme are given based on the fund requirements and growth stage of the business. These are collateral free loans
• Stand up India: This scheme is specially for women, scheduled caste, scheduled tribe entrepreneurs. These loans are backed by credit guarantee and can be used for any purpose
• Startup India: Under this scheme, startups in particular are provided funding for their growth and expansion.

4. Letter of credit and Bank guarantee:
These types of funding are primarily required by importers while importing goods or services. A bank guarantee provides a guarantee to the opposite party that the sum in question will be paid.

5. Equipment and invoice financing:
Invoices are financed by discounting agencies where these agencies provide the funds upfront and collect the invoice amount from the customers. This is one of the ways to raise quick finance by discounting receivables.

Equipment finance are special finance schemes for businesses that need to buy different equipment. These may be leasing schemes or other finance schemes to acquire the equipment.

5 services every mobile banking app offers

Mobile banking is one of the best ways to conduct banking transactions. It is secure and allows the user to be completely mobile and still conduct a range of different banking transactions. Most major banks offer comprehensive mobile banking applications which have brought banking to a customer’s fingertips.

Using bank to bank money transfer apps is much more simpler and convenient for the customer. All the required transactions can be done within a matter of minutes after logging in to the mobile banking application. But what are the different services

Here is a list of 5 services that every mobile banking app offers:

1. Fund transfer:
Mobile banking apps mainly function as money transfer apps. It is possible to transfer funds easily using any of these different options:

• National Electronic Fund Transfer (NEFT)
• Real Time Gross Settlement (RTGS)
• Unified Payments Interface (UPI)
• Immediate Payment System (IMPS)

Each of these options will transfer funds, however, they all come with terms and conditions. IMPS, RTGS and UPI immediately transfer funds whereas NEFT is transferred in batches taken for settlement at a half an hour period.

2. Balance checks:
It is possible to use your mobile banking application to check the balance in your bank account. Accessing and downloading a historical statement is also possible through the app. The bank may put a restriction on the number of months for which the statement is allowed to be downloaded. However, the details provided as a part of mobile banking for balance check and statement are equivalent to internet banking.

3. New deposits:
Deposits means fixed deposits and recurring deposits. It is possible to open these two types of deposits through the mobile banking application. The amount and tenure of the deposit can be decided and entered in the bank to bank money transfer apps and the deposit will be opened up.

4. Bill payments:
Most mobile banking apps allow for bill payments. This includes utility bill payments such as gas, telecom bills, electric bills, DTH or cable bills, mobile recharges etc. Some banks also allow credit and debit card payments through the app.

5. Investments:
Most mobile banking apps allow people to invest in mutual funds, buy shares, and also invest in insurance through their mobile banking application. However, it is important to check if the investment you want to make is available through the app or not. Banks may sell products such as insurance only for the companies they have a tie up with as compared to offering all alternatives. However, having this option makes investments much simpler.

5 Reasons To Pay Bills Online

Paying your monthly bills is a time-consuming exercise, if you physically go and pay. However, online payments make life easy, as the payment gateways are secure. Here are five reasons to pay bill online.

1. Easy To Use
If you want to pay your bills online, basic knowledge of operating a smartphone and availability of highspeed internet can accomplish your task. The interface is user-friendly, and developers have brought the application in local languages as well.

2. Convenient
When you opt for online bill payment, you avoid standing in queues. There are several public services  such as piped gas, electricity and telephone. Each has separate offices and different procedure to collect the bill. You can avoid all such complications while paying online.  

3. Cost Saving
You can save the cost of transportation by paying the bill from your doorsteps. Paying bills on time helps you in avoiding the fine on late payments. Remember, you also save a lot of other resources like paper when you choose to pay online. Some telecom operators even offer discounts when you want to receive a soft copy of your bills.

4. Discount and Cashbacks
There are so many utility bill payment apps that promote digital payments to expand their business. They offer a lot of vouchers and cashback to retain their customer base. They also collaborate with the bill receiving authorities to send you notifications about the pending bill. So, even if you join the bandwagon now, there will be no shortage of offers and gift vouchers.

5. Track of Transactions
When you pay bills online, the application through which you made the payment, keeps track of the transactions. You can always go to the app and view your bill pay history. It can help you in monitoring your monthly expenses and save your time by maintaining a log. Managing a book of accounts is not required now.

What is a salary account?

One of the first things that companies do when new employees join them is to open new salary accounts for them. These accounts are special accounts where the salary of the employee gets credited every month. But what is a salary bank account? What is so special about them?

Features of a salary account:

1. This account is a zero balance account. What this means is that there is no obligation on the account holder to maintain any minimum balance in this account.
2. Even though a salary account is opened by the company for the employee, it is managed completely by the employee. The employee can make withdrawals, any other payments, receive payments in this bank account.
3. The employee retains the bank account even after quitting the organization. The salary bank account is not tied down to the organization. However, the bank may convert the salary account to a normal savings account in which case the person will have to maintain minimum balance. If the employee joins another company, the account can again be designated as a salary account.
4. The salary account earns the same interest as a savings account i.e the rate of interest for both these accounts is the same. However, some banks may not give the same rate of interest on these accounts. A few of them treat savings bank accounts like current accounts and do not give any interest while others extend a higher rate of interest as compared to a savings account.
5. A salary bank account has features similar to a savings bank account such as debit cum ATM card, credit card facility, loans, cheque book, passbook, internet banking, mobile banking, SMS alerts, branch services such as depositing cheques, passbook updation, Demand draft services, .
6. A salary account cannot be opened by people who are not salaried, i.e it cannot be opened by self employed professionals or businessmen.
7. An existing savings account can be converted to a salary account to receive monthly salary credits from the company. To convert it, the employee needs to fill up a form and give it to the HR department of the company that he works in. The HR department will submit the same to the bank and the existing savings account will get converted into a salary bank account.
8. Some banks may extend other benefits such as insurance, air travel cover etc as well to salary account India holders.
9. It is important to check all the account details when a salary bank account is created.

What are the tax benefits of Sukanya Samriddhi Account?

The Sukanya Samridhhi Scheme is a scheme specially for the girl child. It was flagged off by the Government of India under the ‘Beti Bachao, Beti Padhao’ scheme. This scheme is to ensure that the girl child gets adequate savings of her own by the time she is 21 years of age.

How does the Sukanya Samriddhi Account scheme work?

Under the Sukanya Samriddhi scheme, an account can be opened in the name of the girl child from the time she is born till the time she is 10 years of age. The account will remain operational for 21 years from the date of opening of the account or till the time the girl gets married, whichever is earlier. Any contributions made to the account have to be made for 15 years from the date of opening of the account.
The minimum amount of deposit that has to be made under this scheme  is Rs. 250 for the initial deposit. After that, a minimum sum of Rs. 250 and increases in multiples of Rs. 100 has to be deposited every year.

The maximum deposit ceiling is at Rs. 1,50,000.
This account can be opened by the parents of the girl child or any legal guardian. The birth certificate and other documents of the girl child need to be presented to the bank or post office to open this account. An amount of 50% of the balance lying in the Sukanya Samriddhi Account can be withdrawn when the girl child turns 18 years of age for the purpose of higher education or marriage.

Tax benefits of Sukanya Samriddhi Scheme:

To promote investments in the Sukanya Samriddhi Scheme, the Government has given a tax deduction to any contributions made to this account. This deduction can be availed under Section 80C of the Income Tax Act up to a maximum of Rs. 1,50,000. This deduction gets reduced from your taxable income and saves tax. However, the total deduction under Section 80C is also restricted to Rs. 1,50,000. Investments such as life insurance policy, National Savings Certificate, Senior Citizen Saving Scheme, Public Provident Fund are clubbed together under Section 80C.

Apart from this, any interest earned on this account is exempt under the Income Tax Act. Exempt income means that income is not considered as taxable income for the purpose of filing the Income Tax return. The tax benefits under the Sukanya Samriddhi account scheme are similar to the Public Provident Fund scheme. This makes it a very beneficial scheme to invest funds for a girl child.

What are the tax benefits of health insurance?

Health insurance is one of the most important requirements for a family today. With the rising costs of quality medical treatment, health insurance is one way to ensure the family savings are protected. Health insurance in India does not enjoy a lot of popularity because people consider it to be a dead investment since it does not show any return. However, it often times pays for itself especially in times of medical emergencies.

How does a health insurance policy work?

Under health insurance plans, a premium is paid to cover the cost of hospitalization. Pre and post hospitalization spends, doctor consultations, day treatments such as cataract surgeries etc., ambulance spends are included depending on the type of health insurance policy. In case a person has to be hospitalized, the insurance company can directly pay the cost of treatment up to the sum assured to the hospital. Health insurance companies generally tie up with hospitals to allow cashless treatment. In other cases, bills for medical expenses have to be submitted to the health insurance company and these are then reimbursed.

Tax benefits of health insurance plans:

Health insurance can protect a family’s savings from medical expenses. To improve the coverage of health insurance India gives an Income Tax deduction for premiums paid for health insurance plans. This deduction can be availed under Section 80D of the Income Tax Act.

This deduction is available in two parts:

• Health insurance plans taken for self, spouse, and dependent children
• Health insurance plans taken for parents of self or parents of spouse

The limit for each category is Rs. 25,000. However, if the parents are senior citizens, then this limit is increased to Rs. 50,000. If the policyholder himself or herself is a senior citizen, then the benefit is Rs. 50,000. Thus the maximum deduction available under this section is Rs. 1,00,000 in case both categories of health insurance plans are for senior citizens.
This deduction for health insurance policy is available if the premium is paid through the following modes:
• Credit or debit card
• Cheque
• Wallets/UPI
• Net banking or mobile banking

Thus any premium paid in cash is not eligible for a deduction under Section 80D of the Income Tax Act. Also, a health insurance policy purchased for any other relative or grandparents is not allowed as a deduction.

Any amount received under a health insurance policy for hospitalization or reimbursement of medical expenses is not chargeable to tax since it is treated as a reimbursement of medical expenses and not income. However, any receipt under Section 80D affects any deduction taken under Section 80DDB (deduction for medical treatment for specified diseases). It is important to read through the sections carefully while availing these deductions.

What are the tax benefits of a life insurance policy?

Life insurance is one of the key investments that a person can make to ensure the financial security of his loved ones. Life insurance provides an umbrella to protect the insured’s family from any sort of unexpected losses. There are different types of life insurance plans for different goals:

• Endownment plans where a fixed sum is received on maturity of the policy
• Term insurance plan where the sum insured is paid out on death
• ULIP or market linked plans to build a corpus for child education

But another advantage of life insurance is that when you buy life insurance, you also get tax benefits.

What are the tax benefits of a life insurance policy?

A life insurance policy has two different tax benefits. On investing in a life insurance policy, you get a deduction under Section 80C of the Income Tax Act. This deduction is restricted to Rs. 1,50,000. However, the precondition to availing this deduction is that the annual premium paid should not exceed 10% of the sum assured on the life insurance policy. For policies purchased before 1st April 2012, the annual premium paid should not exceed 20% of the sum assured. If the premium exceeds this percentage, then this deduction under Section 80C will not be allowed.

Another important point to consider is regarding surrender of a life insurance policy. The IRDAI has simplified rules related to surrender of life insurance policies. Life insurance policies can be surrendered at any time. However, if a ULIP is surrendered before the completion of 3 years or an endowment plan is surrendered before the completion of 2 years, this deduction will be withdrawn and the amount allowed as a deduction will be considered to be income for the year.

Any amount received on an insurance policy is exempt under Section 10(10D) of the Income Tax Act. Exempt income means this income is not considered to be a part of taxable income for the purpose of filing an Income Tax return. However, for these receipts to be considered as exempt, they need to meet the condition with regards to life insurance premium i.e the life insurance premium needs to be 10% of the sum assured. For policies taken before 1st April 2012, the number stands at 20%. If the annual premium paid out is not within this limit, then the receipts from a life insurance policy will not be exempt. It is very important to ensure these conditions are met to avoid any problems with assessments in the future.

The tax benefit available to a person depends on the amount of deduction and the tax bracket in which the person falls. Depending on these two factors, the tax saved can be calculated.

What are the benefits of travel insurance?

One of the mandatory requirements for people planning a trip abroad is travel insurance. Travel insurance is so important that several countries require mandatory travel insurance during visa applications. Taking travel insurance for domestic travel is also recommended. International travel insurance primarily covers the cost of medical treatment up to a particular limit along with other losses associated with travel.

But why is it so important?

Here are some benefits of travel insurance:

1. Wide coverage against losses and expenses:
Travel insurance is recommended because of the exhaustive coverage provided against different types of losses and expenses that a traveller can incur. Some of them are:

• Accidental death and dismemberment
• Accident and sickness medical expense reimbursement
• Dental care expenses
• Emergency medical evacuaton
• Repatriation of remains
• Baggage delay
• Checked baggage loss
• Loss of passport
• Flight delay
• Hijack
• Emergency cash advance
• Fraudulent card charges
• Home burglary
• Trip cancellation
• Trip curtailment
• Missed connection/Missed departure
• Bounced hotel/airline booking


2. Network hospitals:
Often, insurers have tie ups with network hospitals even abroad for medical treatment. This helps in ensuring speedy treatment with minimal hassles. Having travel insurance cover can assure the traveller of getting treatment in good quality hospitals that have a tie up with the insurer.

3. Available for people of all ages:
Travel insurance is available to people of all ages, whether it is a newborn baby or a senior citizen. Though the premium for each traveller may not be the same, however, it is possible to cover people of all ages. Some travel insurance companies also offer family floater policies where policies can be taken for the entire family’s travel.

4. Online purchase:
It is very convenient to buy travel insurance online. Most general insurance companies offering international travel insurance offer this directly online. It is also possible to buy such policies on insurance aggregators where information about the policy offering and the policy cost can be compared. Buying online is simple and the policy is delivered to the customer’s mailbox immediately after purchase.

5. Customer support:
One of the benefits of having international travel insurance is the customer support in the language of the traveller. If there are any problems during travel, connecting with a customer executive can help quickly sort out queries and problems. Travel insurance companies generally provide consultation and help when it comes to hospitalization, medical treatment, baggage loss, thefts, loss of travel documents etc. It is possible to take help from these executives and ensure all formalities are properly completed.

What are the benefits of mobile banking?

Mobile banking means using your smartphone to conduct banking transactions. With a digital revolution in banking, banking has moved out of the bank branch to internet banking and to mobile banking. Indian mobile banking is offered by most of the banks. Each bank has its own mobile banking application for smartphones which offer a variety of services. It is possible to conduct banking transactions in a matter of a few clicks.

With easy to use interfaces, Indian mobile banking is seeing a rise in transactions as compared to branch banking and internet banking. Customers use mobile banking services for their basic banking requirements.

Here are the benefits of mobile banking:

1. Easy to use:
Mobile banking is extremely convenient and easy to use. Banks provide a lot of instruction and there are videos and blogs online to help beginners transition into using mobile banking. The interface is friendly with a lot of prompts from the application when a particular service is selected. This helps people who are first time users as well.

2. Convenient:
Mobile baking services help to improve a customer’s convenience. It is possible to transfer funds, receive payments, check balances, open fixed deposits, open recurring deposits, pay utility bills, make investments etc from a mobile banking application. This provides a wide range of services to the customer.

3. Secure:
Indian mobile banking applications come with a login based on the customer Id and a PIN. Most banking apps require the password or PIN to be changed at regular intervals. These apps automatically log out a customer if the app has remained idle for a long period of time. This makes it secure to use mobile banking. These apps also prompt the user before confirming any transaction. Sometimes, if a particular transaction is not similar to the user’s past use of the application, the mobile banking app confirms the transaction through an OTP. These additional measures of security make mobile banking secure.

4. Increased mobility:
Mobile banking provides true mobility to the customer since transactions can be done on a smartphone. It isn’t necessary to sit on a desktop or a laptop or even have high speed internet. Fund transfers can be done using IMPS at any point of time even with low internet connectivity. These facilities have made Indian mobile banking very useful.

5. Instant services:
Mobile banking and internet banking have the advantage of providing instant services. Balances can be checked immediately. Fixed deposits can be opened or liquidated instantly. Funds can be transferred immediately using IMPS or UPI.

What are the benefits of buying insurance online?

Insurance is one of the most important investments that a person can make. There are different types of insurance policy that cover different risks for a person. Some of the types of insurance policy that a person can get are:

• Life insurance
• Health insurance
• Two wheeler insurance
• Car insurance
• Home insurance
• Travel insurance

With the digital revolution, the insurance sector has also undergone a transformation. Buying insurance from an agent is no longer the norm. Getting online insurance has gradually become accepted among the masses. Buying insurance online has also become easier with different insurance aggregators that provide quotes and sell different types of insurance.
Here are the benefits of buying insurance online:

1. Comparison between insurers:
One of the best advantages of a digital revolution in insurance is insurance aggregators. Insurance aggregators are websites authorised by the IRDAI to display insurance quotes from different insurance companies. It is no longer necessary to rely on an agent to tell you quotes for different companies. You can check the premium amounts and the inclusions online on an aggregator website and either book through the aggregator or directly through the company.

2. Discounts from insurers:
The quotes for online insurance turn out to be cheaper than through an agent because the company does not have to pay the agent’s commission. Companies also have different offers and schemes from time to time to try and get customers to book their insurance policies online. Insurers also offer discounts to customers that book online.

3. Immediate policy issuance:
One of the advantages of booking insurance online is that the policy document is immediately sent over by the company. There is no delay in getting it. Since there is an electronic version of the policy, that makes it convenient to store as well.

4. Different payment modes:
Buying different types of insurance online has an advantage because it offers different payment modes. You can pay via net banking, your credit or debit card, UPI, wallets or even pay each month. These different options are available every time you book a policy or renew it. This gives you a lot of flexibility to choose the right mode for your needs.

5. Convenient renewal: 
It is very easy to renew a policy purchased online. It can be done from the company’s website itself. Another thing to remember is that a policy bought offline can be renewed online as well. This works for policies purchased from agents.

What are the benefits of a recurring deposit?

A recurring deposit is a type of deposit in which a fixed sum of money is invested at fixed intervals of time. This money accumulates and is redeemed on the same day. To put it simply, a recurring deposit is like multiple fixed deposits that all mature on the same day.

Like the FD, RD is also a popular investment option for people. Here are some of the benefits of a recurring deposit:

1. Small savings option for people:
Most banks have a minimum recurring deposit amount as Rs. 500 which makes it possible for anyone to open an RD account. Some banks have Rs. 1,000 as the minimum first deposit followed by Rs. 500 as the recurring deposit amount. Opening a recurring deposit is very simple and can be done at any bank branch.

2. Can avail loans against RD:
A recurring deposit also works as an emergency fundraising tool. While the bank may not always allow premature withdrawal against an RD, however, it is possible to take a loan against an RD up to 80% or 90% of the amount of the RD. This makes it useful whenever funds have to be raised in an emergency.

3. Useful for goal based savings:
One of the main benefits of a recurring deposit is the use of this deposi to raise funds for a particular goal. Recurring deposits can be opened for a minimum of 6 months and using the time period of a recurring deposit, funds can be invested at regular intervals to build up to a particular goal say meeting child’s education expenses, or to save for purchase of a consumer durable or a car. The recurring deposit acts like a disciplinary tool for the investor by forcing him to invest a fixed amount on the same day for a fixed period of time. This discipline can be used to save for short term goals and earn a small amount of interest.

4. Online recurring deposit booking:
An RD can easily be booked online just like an FD. It can be done via net banking or mobile banking in a matter of a few clicks. This makes it convenient for a person to plan his finances.

5. Recurring deposit calculator:
It is easy to find out the maturity value of an RD and the interest earned by using an RD interest calculator. This calculator will tell you the maturity value of an RD when you input the deposit amount and the tenure. By using an RD calculator, a person can plan exactly how much he needs to invest so that he can get a particular sum of money on maturity. Using a recurring deposit calculator is very easy and it helps to make the best financial planning decision.

Loan Against Property: 5 things you need to know

Businesses need funds for their growth and expansion at all times. In case a business is not eligible for a business loan but they own property, another option they have is a loan against property. This type of loan is also an option for homeowners who are looking for funds.

Loan against property is a type of loan in which any property is put up as collateral. This is a secured loan. Since a property is put up as collateral, the loan amount under such loans is quite high.

If you’re looking to take a property loan, here are some things you should know:

1. Unconditional loan:
A property loan is like a personal loan with a lower rate of interest. Since this loan is secured, it is lower risk for the banks and thus commands a lower intererst rate. However, loan against property is an unconditional loan. What this means is that the lender does not put any conditions on the final use of the funds. These funds can be used for any purpose, whether personal or business.

2. Documents required:
Lenders require the following documents for the purpose of a loan against property:

• Property ownership papers
• Income proof (income tax returns, salary slips, bank statements for the past 6 months)
• Address proof (Passport, Voter ID, Aadhar Card, Electricity bill, Telephone Bill, Gas bill, ration card, Property documents)
• Identity proof (PAN card, Voter ID, Drivers License, Passport, Aadhar Card)

With these documents, you need to fill up the form for property loan. In case of a business that is looking out for a commercial property loan, then the income documents need to include the accounts and financials of the business.

3. Eligibility criteria:
Most lenders specify a minimum age of the applicant which ranges from 21 years to 25 years. The maximum age of the loan applicant is between 65 years to 70 years. This means the loan applicant must not reach the maximum age when the loan is outstanding. Both salaried and self employed people are eligible to apply for this loan. Since this is a secured loan, the lender has an element of comfort. However, while scrutinizing the loan application, the lender will be sure to conduct proper due diligence of the loan applicant’s ability to repay the loan.

4. Loan amount:
The loan against property is a secured loan. The value of the loan depends on the value of the property that is mortgaged to the lender. Most lenders will lend between 50% to 70% of the market value of the property. This means it is possible to get quite a high loan amount for such types of loans.

5. No tax benefits:
A home loan is eligible for interest and principal repayment tax benefits. Even though a property loan is a secured loan, it has no tax benefits. However, the purpose for which the loan amount has been used is important. If a commercial property loan is taken to invest and grow the business, then the interest can be charged as an expense.

Importance of investment in financial instruments

Investing money is one of the best ways to grow your corpus. By smartly investing your money in different avenues, you can grow it to meet different life goals such as education, wedding expenses, travel funds etc.

There are different types of investment products in which a person can invest his money. These can be either financial products or tangible assets. Tangible assets mean investment in a house, office complex, plot of land, construction of a building, gold etc. However, financial products are intangible in the sense they cannot be seen or felt.

Investing in financial assets is not only a quick way of growing your money, but it is also a highly regulated mode to grow your capital. These assets grow quickly and are a stable form of return. Return on many financial instruments is fixed which means your capital will have an assured growth and an income coming into your account. Financial instruments are convenient because they are online investment where everything can be managed in a few clicks.

Lastly, financial instruments are also a medium of growth for the country. Investing in financial instruments gives capital to companies seeking funds for further expansion and growth. This in turn benefits the country.

But which financial instruments are excellent online investment? Here are some of the best investment options in India:

1. Mutual Funds:
Under mutual funds, money pooled from different investors is collected and invested in a range of different assets. Mutual funds may invest in equities or in fixed income instruments of different durations.

2. Equities:
These are shares in an individual company. The price of equities increases or decreases based on performance of the company and the demand for the shares in the market. Equities can be invested in an initial public offer when the company lists on the stock market for the first time or from the secondary market where shares are traded.

3. Derivatives:
These include futures, options, interest rate swaps, currency swaps etc. These are technical instruments which need knowledge for investment.

4. Savings bonds:
These are fixed coupon bonds issued by the Government to provide guaranteed income to the investors.

5. Capital gains tax saving bonds:
These bonds can be invested in to save on capital gains incurred from selling a capital asset.

6. Inflation indexed National Savings Securities:
These securities are issued by the RBI and they give the investor a fixed return above the inflation rate. This gives the investor a guaranteed return over and above the fluctuating inflation rate.

Investing in these instruments requires study and precision. In case you don’t have the required expertise, you can avail specialized investment services that help you grow your capital based on your goals and risks.

How to open NPS account?

National Pension Scheme is a scheme that provides a monthly pension for the subscriber after retirement. Under the NPS, the subscriber has to make a contribution every year which gets invested in different funds. On retirement, a part of the corpus can be withdrawn by the subscriber while the balance has to be invested in an annuity scheme that gives monthly pension to the subscriber.

The first step to investing in the NPS is to open an account. Opening an account is an extremely simple process. There are two ways to open an NPS account:
Online account opening:

It is possible to open an account for NPS online. This process can be done on the NSDL website. There is a form to be filled up with details of the person such as :
• Account type i.e Tier I or Tier II
• Individual or corporate subscriber
• Citizen or Non Resident Indian
• Name of existing bank
• Personal details such as name, gender, date of birth, country, marital status, mobile number, email address, family details
• Bank details such as name of bank, bank branch, account number, IFSC code
• Nomination details such as name of nominee, relation to the subscriber etc.
• Identity details i.e PAN number, Passport number, Voter ID

After all these details have been filled up, a scanned copy of the subscriber’s signature has to be uploaded. Along with this, KYC documents also have to be uploaded. After this, the system takes the subscriber to a payment gateway to make the minimum contribution of Rs. 500 to the account.

Offline account opening:
An offline account opening procedure exists for people who can’t open their accounts online. For this, the subscriber has to visit any Point of Presence Service Provider (POP-SP) designated under NPS. The list of such POP-SP is given on the NPS website.
At the POP-SP, the subscriber needs to fill up a form with all the mandatory details. Along with this, a photograph needs to be stuck on the form. The required KYC details need to be attached and the minimum contribution amount has to be paid.
NRIs can also open an account under National Pension Scheme. They need to update details of their Non Resident External (NRE) or Non Resident Ordinary (NRO) account and add a scanned copy of their passport to their application.

To open an NPS account, you need a Permanent Retirement Account Number (PRAN) . A card containing the PRAN and the subscriber details will be sent to the subscriber by post or courier. Once the PRAN is received, the subscriber has to either e-sign it or physically sign it and courier it to the Central Recordkeeping Agency or CRA for their records.

What are the benefits of a personal loan EMI calculator?

A personal loan is a type of unsecured and unconditional loan. This means the borrower can use the funds for whatever reason without the lender raising any objection. Since this is an unsecured loan, the lender does not need to put up any security for the loan. This makes personal loans one of the best ways to raise funds when they are urgently required.

Taking any loan without proper financial planning is not recommended. When it comes to taking an unsecured loan like a personal loan, financial planning can be achieved by using a personal loan EMI calculator.

What is a personal loan EMI calculator?
A personal loan calculator is a calculator that finds out the monthly installment amount for a given principal, interest rate, and tenure. Using the calculator can help a prospective borrower find out the monthly installment amount for different combinations.

Here are some of the benefits of using a personal loan EMI calculator:

1. Easy to use:
A personal loan calculator is very easy to use. It requires only three inputs, the principal amount, the rate of interest and the tenure of the loan. Once these three items have been entered and submitted, the calculator throws out the EMI amount. In case of any error, it is easy to rectify the same and resubmit.

2. Helps compare the EMI for different lenders:
By entering the rates of interest from different lenders, a borrower can find out the impact on the EMI. This helps to find out the best lender and the best personal loan offer. However, it is better to use the personal loan EMI calculator before applying to different lenders. Multiple personal loan applications can adversely impact the credit score of the borrower.

3. EMI schedule:
Some personal loan calculators also provide an EMI schedule which shows the amount paid per month and the breakup into principal repayment and interest payment. This helps to understand the total amount paid out for the loan. It also helps with making decisions such as increasing or decreasing the loan tenure.

4. Free of cost:
Using a personal loan EMI calculator is free of cost. Lenders do not charge the customer to use such calculators on their website. This makes it one of the best tools to ensure that the right amount is applied for a personal loan.

5. Calculate total interest:
Personal loan interest calculators also show the total interest paid over the duration of the personal loan and the breakup every month. This can help to decide whether to pre-pay the loan or whether to foreclose it. Checking the total interest payment for different interest rates can help to negotiate better with the lender as well.

How to invest in Atal Pension Yojana?

Atal Pension Yojana is a social security scheme that provides monthly pension to its subscribers. It is a defined contribution scheme where a fixed contribution is made for a defined number of years and pension is received after the subscriber turns 60 years.

The scheme was launched by the Government of India primarily for the people in the unorganized sector. Under this scheme, the subscribers can get a pension between Rs. 1,000 to Rs. 5,000 per month depending on their contributions to the scheme. The contributions to the scheme depend on the monthly pension and the age of the subscriber when he joins the scheme.

A subscriber can join APY when he turns 18 years and the maximum age for joining is 40 years. This scheme is primarily managed with the Aadhar number of the subscriber and his mobile number. Any Indian citizen can open an APY account in a bank or the post office.
In case the subscriber dies after 60 years, the spouse gets monthly pension till the spouse’s death. In case both the spouse and the subscriber die, then the nominee will get pension based on the accummulated balance. If the subscriber dies before reaching 60 years of age, then the spouse has an option to quit the Atal Pension Yojana or to continue subscribing to it for the remaining years.

How to invest in Atal Pension Yojana?
To invest in APY, you will need to open an APY account. This account can be opened either online or offline in any bank or post office where you maintain a savings account. In case you do not have a savings account in that particular bank, you will have to open a new account.

Open APY account online:
Some of the leading banks allow the customer to open an APY account online. Once this account is opened, you need to transfer the minimum initial contribution to keep the account activated. The yearly or monthly contributions will have to be paid into this account. These contributions can be paid either via credit or debit card, net banking, mobile banking, UPI.

Open APY account offline:
Any Indian citizen can visit a bank branch or post office branch to open an APY account by filling in a form and submitting the relevant documents. The amount of initial contribution and associated charges will also have to be paid at the time of account opening.

Yearly contributions can be made by online transfers to the scheme or by depositing cash or cheque directly into the APY account. However, it is worth noting that if contributions are not made in time then there are penalties that the subscriber has to incur.

How does a loan EMI calculator work?

With the digital revolution in banking, each lender has their own websites with exhaustive content for their customers. Whether it is informative posts about their products, or blogs about finance and banking, major banks are going the next step to woo their customers. One of the most important tools that banks provide to their customers online is a loan EMI calculator.

A loan EMI calculator is a calculator that shows the monthly installment amount based on certain loan parameters. The loan parameters that an EMI calculator requires are:

• Principal outstanding
• Rate of Interest
• Loan tenure in years or months

Once these details are input in the loan calculator and submitted, the calculator shows the EMI amount for the duration of the loan. Some EMI calculators also show the break up between principal repayment and the interest payment in each installment. Now, there’s no need to wait till the loan has been sanctioned to check the amortisation schedule. It is already available in a few EMI calculators on the internet. Another important point to remember is that these loan calculators are completely free of charge and are available for everyone who visits the bank website, whether they are the bank’s customers or not.

But how do these loan eligibility calculators work? These loan calculators work on the basis of a simple formula:

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

Where:

P= Principal or loan amount

R= Rate of Interest on loan

N=Tenure of loan in years

The EMI amount depends on the rate of interest and the tenure. A loan EMI calculator can be used to find out which lender’s loan offer is the best and which combination of loan tenure and rate of interest leads to the least amount of interest being paid out.

Some home loan eligibility calculators also require the customer to put in monthly or yearly income details as well as the age. The calculator uses this to automatically calculate the amount of loan that the applicant would be eligible for. When it comes to loans for two wheelers or three wheelers, some loan EMI calculators require the model number and the company name so that the value of the loan can be decided based on the price of the vehicle being purchased. Once all these details have been fed into the loan eligibility calculator, it calculates the loan amount that the customer is eligible for and redirects the customer to fill up a form to request a call back from the bank’s customer representatives.

Here’s why you should book your FD online

One of the safest and most popular avenues to park excess funds for a short period of time is a fixed deposit. For many senior citizens, keeping their money in a fixed deposit is an excellent way of ensuring a consistent monthly return on their funds. A fixed deposit offers a stable rate of return and regularity of interest payments.

With the digital revolution in banking and the spread of internet and mobile banking, it has become possible to book an FD online without visiting the bank branch. Booking the FD online has its own set of benefits, especially for techno savvy users.

Here are 5 reasons why you should book your fixed deposit online:

1. Convenience:
Booking your FD online is now possible in just a few clicks. Customers of a bank can book a fixed deposit either using internet banking or mobile banking. It is possible to choose the tenure and get the interest rate while booking as well. The amount is automatically debited from the account and a fixed deposit is created instantly.

2. Online FD certificate:
If you book a fixed deposit online, the receipt and FD certificate for the same is sent by the bank on your registered email address. This reduces the hassle involved in taking care of the certificates. It can easily be accessed online in case the need arises.

3. Fixed Deposit rates:
One advantage of opening a fixed deposit online is the transparency in FD interest rates. The FD booking system automatically shows the rate of interest based on the tenure. Most lenders have their fixed deposit rates displayed clearly on their websites which makes it possible for a customer to check which bank’s fixed deposit can yield a higher rate of interest.

4. Fixed deposit renewal:
In case of online fixed deposit, there is no need to renew the fixed deposit manually every time it matures. Most fixed deposits have an option to automatically renew the fixed deposit. The different options that the customer can choose are:

• Renew principal
• Renew principal and interest
• Do not renew

Depending on what the customer chooses, the fixed deposit is either renewed or liquidated on maturity. In case the do not renew option is chosen, the fixed deposit plus the interest amount is credited to the account. This option can also be changed anytime.

5. Easy liquidation:
There is no need to visit a branch to liquidate a fixed deposit booked online. In case of premature liquidation, the procedure is very convenient and happens in a matter of a few clicks. However, interest at a reduced rate is paid out in case of a premature withdrawal.

Here’s how you can get a tax benefit with your education loan

An education loan is one of the most important loans for students who are looking to fund their education. These loans are available for all levels of education, whether it is school or college education. These loans are also called student loans and are available for college education both in India and abroad. But, did you know you could get a tax benefit for opting for an educational loan?

Section 80E is an often forgotten section of the Income Tax Act. But this section can help you save tax if you have an educational loan.

Section 80E: Tax deduction for interest on educational loan:

This section provides a deduction on the interest paid for servicing an educational loan. No benefit is available for the principal component of the student loan.

This deduction is available for the entire amount of interest paid on education loan. There is no limit for the interest deduction. However, since this is a deduction, it is automatically restricted to the gross income of the taxpayer. For example, if the income of the taxpayer is Rs. 8,00,000 and the interest on education loan is Rs. 8,50,000, the total deduction will be restricted to Rs. 8,00,000 only.

This benefit under Section 80E can only be availed for loans taken for higher studies. This means loans taken for primary education are not allowed as a deduction. The section does not distinguish between the subject of study and the place of study i.e in India or abroad. However, it specifies that higher studies include undergraduate and graduate studies. The student will have to complete higher secondary exams to avail this benefit.

The student loan must also be taken from a financial institution or a charitable trust giving educational loans to students. If the loan is taken from parents, relatives or friends, then this interest does not matter.

This deduction under Section 80E is only available to an individual. The loan should be taken for higher studies for self, spouse, children or students for whom the taxpayer is a legal guardian. This means parents can avail tax deduction on interest for loans taken for their children.

A deduction under Section 80E of the Income Tax Act is available for 8 financial years starting from the time repayment of the loan begins. To get this deduction, the taxpayer will need to get a certificate from the bank that shows the total interest paid to the bank for the financial year. This breakup needs to be attached with the income tax return.

Here are 5 rules you need to know about PPF withdrawal

PPF or Public Provident Fund is one of the most popular tax saving investments in the country. Investments made in PPF are deductible under Section 80C of the Income Tax Act. The interest earned on PPF account is exempt from tax. The minimum contribution under this is Rs. 1,000 whereas the maximum is Rs. 1,50,000.

Investments made in PPF have a lock in period of 15 years. After the end of 15 years, it can be extended in blocks of 5 years at a time. The amount lying in the balance of the PPF account can be withdrawn at the end of the first lock in period of 15 years. It is also possible to withdraw prematurely from the PPF account, subject to certain rules.

Here are 5 rules you need to know about PPF withdrawals:

1. Maximum withdrawal permitted:
The maximum withdrawal permitted from PPF is 50% of the lower of:

• Accumulated balance at the end of fourth year immediately preceeding the year of withdrawal
• Accumulated balance at the end of the year immediately preceeding the year of withdrawal

50% of the lower of these two figures is allowed to be withdrawn from the PPF account. To make this withdrawal the PPF account holder needs to fill Form-C and submit it to the bank in which the PPF account is held.

2. Year of withdrawal:
A PPF account holder is allowed to make withdrawals starting from the 7th year from the year of account opening. For example, if the account was opened in 2009-2010, then the account holder can make his first withdrawal in the year 2017.

3. Number of withdrawals:
The withdrawal from PPF is capped at one withdrawal per year. This withdrawal is tax free, i.e it is not charged to tax.

4. Withdrawal after account extension:
Once the PPF account has matured, it can be extended in blocks of 5 years at a time. If the account is extended without any contributions, the amount standing to the credit of the account when it matured can be withdrawn. However, this withdrawal can be done only once in a financial year.

If the account is extended and further contributions are made, the account holder can withdraw up to 60% of the balance standing to the credit of the account when it matured. This withdrawal is also capped at once every financial year.

5. Withdrawal after maturity:
When the PPF account matures after 15 years, the entire amount standing to the credit of the account can be withdrawn. This entire amount is tax free.

Here are 5 reasons to shift to UPI

UPI is a payment system developed by the National Payments Corporation of India and is one of the most popular modes of fund transfer in India today. But what is it?

UPI or Unified Payment Interface is a means to transfer funds from one party to another. However, unlike the typical fund transfer system, where the bank details of the recipient are used, UPI uses a UPI ID. Payments can be made and received on the UPI ID. Using UPI is extremely simple.

If you’ve not transitioned to making payments via this method, then here are 5 reasons to shift to UPI.
1. UPI is simple to setup and use:

The Unified Payment Interface system is very easy to set up. You need to download any UPI app i.e the official BHIM UPI app by NPCI or any UPI app issued by any bank. It is possible to use UPI through wallets such as Google Pay (Tez), PayTM, PhonePe etc.

To set up UPI payment, you need to create a unique ID. This ID will be linked to your bank account number. You also need to create a PIN for yourself. Before a transaction is authorized, the UPI system requires you to input your PIN. Once the PIN is input, the amount gets debited from the payer’s bank account is paid to the recipient.

It is not necessary to link a particular bank’s account details to use the UPI app, i.e it is possible to use HDFC Bank’s UPI app but put in details to any bank account you want to receive payments to. It is possible to set up a different bank account to make payments and a different bank account to receive payments.

2. Sensitive bank details protected:
One of the best advantages of UPI is that it adds another layer of security to regular fund transfers. There is no need to share your bank account details with a third party to receive funds. The funds can be received through the UPI ID.

3. Low cost:
UPI transfers are free of cost at the moment. Using the UPI apps is free of charge and making fund transfers is also free of charge. However, in the future, banks may introduce a charge on these transfers.

4. 24x7 transfers:
The UPI payment system operates on the IMPS system. This means any fund transfers to be done with UPI can happen 24x7. They are not restricted to banking hours only. This makes it dependable for instant fund transfers.

5. Instant payments:
Fund transfers under UPI are immediate. The money is immediately debited from the bank account and is immediately credited to the payee’s bank account. This is why it is important to double check the recipient’s details and UPI ID before making the payment.

Gold Loan: Benefits and Features

A gold loan is a type of loan in which gold is hypothecated or mortgaged with a lender till the time the loan is repaid. It is one of the most popular types of loans especially in villages and smaller towns. A gold loan is an excellent option to raise funds especially in case of emergencies.

Features of a gold loan:

1. A gold loan is a secured loan, which means the gold has to be kept with the lender till the time the loan is repaid. Once the loan is repaid, the customer can collect the gold that has been kept with the lender.
2. The lender may accept gold of a certain purity, for example 18 karat, 22 karat, 24 karat. The lender will specify this on their website or in the branches clearly.
3. The lenders usually accept all types of physical gold such as jewellery and biscuits or coins.
4. Gold loans are short term loans with tenures ranging from a few months to 12 or 24 months. The loan tenures will differ from lender to lender.
5. The repayment structure for loans may differ from lender to lender as well. Some lenders will require a monthly installment based system whereas others will take repayment at the end of the loan tenure with only interest payments in between.
6. This loan generally does not require much documentation except for standard KYC documents.
7. The lender generally independently verifies the purity of the gold and the weight.
8. The loan amount is generally 60% to 70% of the market value of the gold.
9. Lenders keep the gold under lock and key till the time the loan is completely repaid.

Benefits of gold loan:
1. A loan against gold has very low or no loan processing fees.
2. Lenders process these loans very quickly. Funds can be disbursed the same day as well.
3. This type of loan can be used to raise funds quickly in case of emergency. It can also be quickly repaid. There are no prepayment or foreclosure charges on such type of loan.
4. Since this is a secured loan, the gold loan interest rate is lower than that for other loans like personal loans.
5. Most lenders transparently display their fees and interest costs up front. There is no need to be scared about hidden costs and fees in loan against gold.
6. No income proofs are required for a loan against gold.

A gold loan is one of the best options to raise quick funds from lenders. A host of banks and non-banking financial companies offer gold loans in the market which make it easy to opt for such a loan.

Features and benefits of IMPS

IMPS is one of the most convenient forms of fund transfers today. IMPS stands for Immediate Payment Service. Under IMPS, payment is made immediately from the payer to the recipient. IMPS transfers money outside of the banking system which means payments from IMPS get done at any time of the day even outside banking hours. The IMPS transfer is immediate.

Features of IMPS:

1. IMPS transfer is available 24x7 for 365 days in a year. Since it operates out of the banking channel, it can be used at any point of time.
2. IMPS is completely operated on the customer’s mobile phone.
3. IMPS transfer is immediate. The sum is immediately debited from the sender’s account and it gets credited to the recipent’s account.
4. There are three types of IMPS:
a. Person to person IMPS transfer using mobile number of the recipient and the mobile money identifier (MMID)
b. Person to person using bank account number of the recipient and the bank IFSC code
c. IMPS merchant payment
5. To get started with IMPS, the person has to register himself for the service with his respective bank. Once registered, he needs to set up a MMID which is a 7 digit code that his bank issues to him for this service.
6. To use IMPS, both the sender and recipient of funds need to have MMID from their respective bank.
7. IMPS can be accessed from the mobile banking application of the respective bank.
8. IMPS is a homegrown payment channel started by the National Payments Corporation of India (NCPI)
9. IMPS charges differ from bank to bank. Most banks price their services between Rs. 5 and Rs. 15 depending upon the amount of transfer. GST is charged on the IMPS charges.
10. It is possible to add a beneficiary under IMPS using mobile banking or internet banking.

Benefits of IMPS:
1. IMPS transfer is immediate. The amount gets credited to the recipient’s account immediately.
2. IMPS can be used on the mobile phone which provides a lot of convenience to the person making the payment.
3. IMPS makes the person completely mobile since there is no need to be in front of a desktop or a PC to make a payment.
4. IMPS transactions are secure since each transfer is authenticated with the MMID.
5. These transactions can even be done on holidays.
6. In case the customer does not receive the funds for whatever reason, the funds will get credited to the sender’s account.

Different modes of interest calculation in a fixed deposit

Fixed Deposits are one of the most popular investments for people to make. Now with the digital revolution, booking a fixed deposit online is very convenient and can be done even with your mobile phone.

While booking a fixed deposit, one of the things that needs to be considered is the type of interest calculation on the principal amount. Depending on the type of interest calculation, the final outstanding amount will change.

One way to find out the total interest on your fixed deposit and the interest under different alternatives is to use an FD interest calculator. A fixed deposit calculator will calculate the total interest earned for a given set of conditions of a fixed deposit. You need to input the principal amount, the period of the fixed deposit and the type of interest and the FD calculator will show the rate of interest and the total interest payable. This can help you plan and make decisions about the FD tenure and the amount to be invested.

Different modes of interest calculation:

1. Cumulative:
This is the most common type of interest calculation on a fixed deposit. In this type, the interest is calculated quarterly and added to the principal amount. For the following quarter, interest is compounded i.e it is calculated on the principal outstanding and the interest credited for the earlier quarter. The interest earned is highest under this option.

2. Quarterly payout:
Under this type, interest is calculated at the end of every quarter and paid out to the savings account linked with the fixed deposit. This is one way to ensure some income from the fixed deposit.

3. Monthly payout:
Under this type, interest is calculated at the end of every quarter and paid into the savings account linked with the FD on a fixed day every month. This option is generally preferred by senior citizens who need regular and consistent income.

4. Simple interest for Short term FDs:
For fixed deposits of a very short duration, banks generally calculate interest on a simple interest basis. Even for fixed deposits longer than a quarter but less than 6 months, interest is calculated for the entire tenure of the deposit on a simple interest basis.

Using a fixed deposit calculator is both simple and free. With it, you can plan your investments so that you get the maximum income from your investments.