5 ways to negotiate business loan offers

You have a successful business in place and you wish to expand it. However, you do not want to go over the board with your funds. Then business loans are your best ally. Banks and NBFCs offer different types of business loans based on the requirement of the company. Some of the reasons why companies opt for a business loan are:

• For establishing a new business
• For expanding the current business
• To purchase new equipment and machinery
• To maintain the cash flow
• Require working capital for the business
• To turn the loss into profits
• For repaying outstanding dues
• For running a seasonal business

However, you should apply for a business loan:

• When you have a strong business strategy in place
• When you foresee steady cash flow in the future
• When the capital flow is greater than a business loan interest rate

The major benefit of business loans is that it does not require any collateral. Also, most of the lenders sanction the loan with minimal pre-payment charges. However, the interest rates are on the higher side.

So, you need to possess strong negotiation skills if you want the desired deal. Some of the ways to get a better offer are:

1) Establish a negotiation strategy: Determine which financial aspects are important and which ones can you give up easily on. It is essential to put forth a strong point to the lenders. Once you decide upon your factors, you can create a strategy around it and implement them.

2) Know the business risk profile: Identify the weakness point of the business, so that the lender does not catch you for the same. Rectify those errors before approaching your lender. Once you recognise the risk factor of your business, you can talk to the financier accordingly.


3) Negotiate the interest rate: As mentioned above, the interest rates tend to be higher since business loans are collateral-free. While applying for the loan, choose between fixed and floating interest rates. These rates will have a massive impact on the monthly budget. Go for the lowest rate.

4) Clear out unnecessary expenses: While negotiating the business loan deal, try to save money wherever you can. Try to curb the expenditure where not required.

5) Know the prepayment charges: Every loan comes attached with additional fees, and most of them are unknown to people. There is more to this than meets the eye. Understand the terminologies associated with the business loans and pay what based on what the business needs. Ask the lender regarding the pre-payment charges.

Research various schemes on the third-party websites. Use the business loan EMI calculator, as it enables the customers to check the results of n number of schemes. Accordingly, avail of the loan that best suits the business.

Two-wheeler loans for students: everything you want to know!

The two-wheeler is the most popular mode of transport in India. It has become an essential commodity for an average Indian’s daily commute. In fact, India is the largest manufacturers of two-wheelers in the world. To constantly keep up with the desires of the young Indians, the manufacturers produce latest models. These new bikes are designed in such a way that they suit the Indian roads as well.

With the demand for bikes on the rise, especially amongst the millennials, banks and other financial institutions have started offering two-wheeler loans. While some bikes may be at your reach, some are beyond your budget. The two-wheeler loan comes with varying eligibility criteria. One of the most popular demographics are the students.

Students, of course, would not have the necessary finance to own a bike of their choice. So, lenders offer bike loan to them under specific conditions. This article talks in detail about how students can acquire the loan.

What is a bike loan?

It is the simplest way to purchase a new two-wheeler. You have to first pay a minimum down payment to the lender, followed by equated monthly instalments (EMIs). You receive plenty of financing solutions when you go for this route. The two-wheeler loan interest rate is affordable and can be managed with EMIs.

What are the highlights of bike loan for students?

• The repayment period for student two-wheeler loans are 3 years
• The income requirement is not as high as a regular bike loan
• You will have to provide a co-applicant when availing the two-wheeler loan
• The documentation procedure takes 3 days
• Two-wheeler loans for students are unsecured
• You can purchase any kind of bike under this credit

What are the eligibility criteria for acquiring student two-wheeler loans?

The conditions differ from lender to lender. The eligibility criteria for students are:

• You should be 18 years old for applying for a bike loan
• The co-borrower, whom you get along when applying for the two-wheeler loan, should earn a decent income
• The co-borrower should also hold good CIBIL score
• The applicant should have a permanent address in place

What documents are needed at the time of bike loan application?

The student proofs:

• ID proofs such as voter’s ID, passport, PAN card, driving license
• Address proofs like utility bills, passbook, LIC insurance, ration card

The salaried/self-employed co-applicant verifications: 

• Income proofs include last 6 months salary slips, past 6 months bank statement
• 2 years’ IT returns
• Last 1 year’s bank statement
• Business registration papers

If you want a better understanding of which bike loan will fit your requirements, you can use the bike loan EMI calculator. It will assist you with your monthly budget as well.

4 types of education loans available in India

If you want to build a bright and successful future for your child, quality education is a must. However, the rising cost of education in India and abroad is a growing concern for students, as well as, parents. If you wish to opt for an education loan, banks and other financial institutions offer them to only deserving and meritorious students. That way the students can fulfil their dreams without any hindrance.

At present, almost all Indian banks and NBFCs provide education loan to students who wish to pursue undergraduate, graduate, postgraduate, professional, and doctoral degrees.

What is the scenario of education loan currently?

Student loans are available at a relatively lower interest rate. Lenders advise students to borrow education loans as per their requirements. The repayment period of such loans can vary to a great extent, depending on the loan amount and the lender.

The benefit here is that you can pay the education loan interest rate after the completion of your course. The educational loan covers the following expenses:

• Tuition fees
• Purchase of books
• Accommodation
• Transportation costs
• Uniform fees

The education loan in India are classified as follows:

1) Undergraduate loans: If you have completed your secondary education, you can take up undergraduate student loans. The undergraduate courses span for 3 to 4 years generally.

2) Graduate loans: If you want to pursue advanced or higher education across the country, you can go for the graduate education loan. However, you have to complete your undergraduate course, to apply for them.

3) Career loans: You can avail such loans if you wish to attend an undergraduate course from a technical and trading school or colleges across the country.

4) Loans for parents: Banks and NBFCs offer unsecured loans for parents who wish to finance their child’s education, regarding the tuition fees, accommodation and other such expenses. Not only parents but any other adult relative can use the education loan to enrol their kids in secondary schools, military schools, religious, private or non-public schools in India.

Education loans are the most sought-after tool today, considering quality education is unaffordable. The education loan interest rate varies from lender to lender. Girl students are eligible for an additional 0.5 per cent discount on the rate offered to the boys. Select the type of loan based on the aspirations of your child.

A detailed guide on gold loan

If you have some gold handy and been scouting for a loan, then it is time to make optimal use of your jewellery. Gold has held sentimental value for Indians over 2,000 years. As a result, people prefer preserving it for special occasions. However, the perception is fast changing. More and more people are using gold to fund their short-term goals for cheaper interest rates. But as with all investments, complete knowledge is essential before entering the financial agreement.

What is a gold loan?

If you are a short-term credit seeker, then gold loans are your best buy. You get 80 per cent of the value for your gold. For this purpose, the banks and non-banking financial companies (NBFCs) check the metal purity. You can provide any gold: biscuits, ornaments and coins, as collateral. The gold loan interest rate is competitive and is usually repayable in 12-60 months. If you are over and above 18 years old, you can apply for the loan.

What are the advantages of the gold loan?

• You can get a gold loan despite holding a bad credit score since they are secured
• You have the option to pay off the interest first and the principal amount by the end of the loan tenure
• If you are from the field of agriculture, you receive further discounts on the interest rates
• The documentation process is hassle-free as you offer gold as security. You would only have to produce your ID and address proofs
• The good thing about a gold loan is that the fluctuations in gold rate do not affect the credit in any way

Points to remember before taking a gold loan:

• If there is a default in the gold loan payment, the lenders can sell your gold and recover the pending amount
• Also, if there is default payment from your end, the lender will levy additional interest charges on your loan amount

Is it better to take a gold loan from banks or NBFCs?

Before you decide whom to approach for your gold loan, check the various schemes online. Compare the interest rates using the gold loan EMI calculator. Zero down your desired loan and then apply for it. However, you have to consider the following points:

• Banks charge lower interest rates than NBFCs
• NBFCs provide your flexibility regarding repayment of loans
• NBFCs disburse the loan in as less as 5 minutes while banks take up to 4 hours
• Most of the NBFCs do not levy pre-payment penalty. However, banks do charge for the same

Hope all your queries pertaining to the loan are crystal clear. Happy gold loan hunting!

4 car loan thumb rules to remember

Purchasing a vehicle has moved from luxury to a necessity nowadays. So, car loans are offered by every bank and non-banking financial company (NBFC). However, it is important to choose a plan that fits your budget and provides you with hosts of benefits.

Make the following pointers your thumb rule before applying for a car loan:

1) Set a budget and research: You have to decide the budget for your car. Your income plays a crucial role here. Once you have your budget set, research for options. With a vehicle loan just a few clicks away, you can opt for a loan within your price segment by researching on third-party websites instead of opting for the conventional method. You should also examine the track record of your dream car and its reviews, to ensure you have made the right choice.

2) Check eligibility: One of the most important rules is the car loan eligibility. Lenders sanction your car loan based on two factors: income and credit score. Make sure the credit report is clear, sans default payments of credit card bills and existing equated monthly instalments (EMIs). You can request the CIBIL agencies to send you a report of your credit score. This is called a soft check. Your score should be anywhere between 750-900 for acquiring a car loan.

3) Compare all available options: One of the best things about online loan applications is checking in minutes which policy fits your bill. You can select a few good deals and use the online tool car loan EMI calculator to pick out the best offer that suits your requirements. Taking time to compare options, allows you to make an informed decision and provides you benefits as well.

4) Availability of documents: As with any other loan, lenders require the essential materials to approve of your car loan. Some of the critical papers you have to keep with you while applying are:

• Identity proofs such as PAN card, driving license, passport
• Address proofs like utility bills, ration card
• Income proofs include the last 3 months salary slips, employment letter, bank statement of the past 6 months
• Form 16

If you are self-employed, the documents could differ:
• Business ownership papers
• Profit & loss statement, income computation sheet and balance report of past 2 years
• 6 months’ bank statement
• Last 2 years IT returns, proof of turnover

If you do not follow these rules, you could lose out on your vehicle loan. Your aspiration of owning a car will only become a distant dream.

5 Reasons to Order Food Online

Home cooked food is the best. There is no alternative for the food prepared by our parents and family. But when the person stays away from the family for studies or job, or any other reason, food becomes a major issue.

The rise of smartphones and high-speed internet has allowed multiple food delivery apps to offer their services. The customer gets a variety of choice to choose from. Here we are listing five reasons to use food ordering apps :

1. Easy and Comfortable Interface
It is very easy to operate the app and order food online. They usually detect the location and display restaurants to choose from. The user can select food by browsing the menu. The order can be placed even at midnight subjected to the availability of eateries. The payment can be made on delivery or while placing the order. 

2. Home delivery
The user has to place an order with the desired restaurant, and the food will be delivered to his/her doorstep. The customer can track their order in real time. They can also talk to the person, who is delivering,  in case of any query.

3. Cashless payment
The customer has multiple options to pay for the food. Numerous digital wallets are providing their services. User-friendly interface enables quick and easy payment. Some of the methods of payment are :
● Digital payment apps
● Internet banking
● Debit Cards
● Credit Cards

4. Discount and offers
There are multiple discounts and cash backs offered by food delivery apps. They try to increase their sales volume by offering good deals to customers. There are several vouchers offered to regular and first-time users. Also, they offer separate deals to customers, and in most cases, you get assured cash back or promo codes which make purchasing the food cheap.
 
5. Save fuel, avoid the crowd
Most of the good restaurants are usually crowded. If a person likes to sit at home and enjoy the taste, an online food order app is boon for them. They also save the cost of fuel or travelling in a public transport.

 It's time to download an online food delivery app, choose the menu and enjoy the taste at home. In case, the user does not like the taste; they can always submit their feedback to the customer care. If there is some fault in the services, a complaint could be filed at the customer care for an immediate solution.

6 benefits of online cab booking apps

Traffic in the city is increasing every day, challenging people to travel from one location to another. Also, the situation of public transport systems in most cities is quite bad. Therefore, paving way to private taxi operators that could help ease commuting. However, you must know that most private taxi services provide their own application for bookings. And this is what’s gaining them a lot of popularity in the country.

Here we are listing 5 benefits of the taxi booking app:

1. Book from the convenience of your home
The user can book taxi online from the convenience of their home. They can choose from multiple operators and decide to use the services of their choice. The user is not required to go to the taxi stand or wait on the street and convince the driver to drop them to a particular destination. They can book the cab from whereever they are, wait for the vehicle to arrive and leave.

2. Know the estimated time of arrival
When the passenger boards the cab, they know their estimated time to reach the destination. This enables them to plan accordingly. In the case of a normal taxi, the user can only guess the estimated time of arrival as the route is not predefined. The driver can also take a longer route to make more money.

3. Easy payment options
There are so many payment options available for the online taxi booking app. The user can either prepay for the travel or pay after completing their trip. The user can also opt to pay via cash, debit or credit card, internet banking or any digital payment apps, depending on the option available with the cab service provider.

4. GPS mapping
The cabs booked online are equipped with GPS. This feature enables the user to keep track of the route. This also facilitates the customers who don’t know the exact way to reach their location.

5. Easy feedback
The user has got the option of giving feedback to the cab operators. They can rate the driver and the vehicle based on services. The passenger can also raise real-time alarms, in case of any discomfort or an emergency.

6. Discount and offers
Different cab operators come up with various offers and discount to attract customers. To promote cashless payment, they offer several cashbacks and gift vouchers. Digital payment apps also provide separate offers to promote their interface. This competition benefits the user.

So, book taxi online to make your travel easy.

5 BENEFITS OF BOOKING MOVIE TICKETS ONLINE

There is a significant increase in the number of movie screens in India. Hollywood productions are also releasing their films simultaneously, thus providing cinema lovers with a lot to choose from. With the introduction of digital payment applications and availability of smartphones, people have started movie ticket bookings online.

In such cases, the user purchases a ticket and gets a confirmation code via email and SMS. This message must then be shown at the check-in, to enter the theatre and watch the film. People can even book tickets while travelling to the theatre, in order to avoid a situation where tickets are sold out. They can also choose their favourite seats and book accordingly.

The five benefits of  online movie ticket booking are listed as under:

1. It Serves to be Convenient:
The user can book tickets anytime subject to availability. There is no need to visit the theatre and stand in a long queue. The customer has the option of choosing seats of their choice; they can even book their food and cola in advance. All of this could be done from any location provided you have an internet connection.

2. Avoids Wastage of Paper:
When the ticket is booked online, the user gets the acknowledgement via message or an email. This helps in saving paper that is usually wasted on printing the tickets. Booking tickets online is environment-friendly as well.

3. Provides Easy Payment Options:
When the ticket is booked via mobile tickets booking app, the user gets many payment options. These are completely safe and secure. The customer can pay by the following methods:
● Digital payment apps
● Internet banking
● Debit Cards
● Credit Cards.

4. Saves Time:
The user saves time if he/she books the movie tickets online. People often avoid going to the theatre and standing in long queues to watch their favourite blockbuster. They also save the cost of fuel, transportation and parking charges, also allowing them to visit the theatre just before the showtime.

5. Offers, Discounts & Cashback:
Users get amazing movie tickets booking offer. There are cash back and discounts applicable post payment. Regular users of digital wallet apps also get gift vouchers. Sometimes, the customer also stands the chance of watching the film for free.

The customer needs to be careful while booking the tickets online. Under no circumstances, they should share their passwords and OTPs. There will be a time when the payment is made from your side, but the ticket is not booked, in such cases, contact the service provider immediately.

9 BENEFITS OF ONLINE GROCERY SHOPPING

Online shopping is gaining popularity in India. People from all parts of the country, irrespective of income, are ordering groceries online. Here we give you nine reasons why purchasing via the grocery shopping app is a good idea:

1. Bulk Shopping with Ease:
In most households, grocery purchases are made at the beginning of the month. Shoppers often purchase goods that would usually last for a month. Online grocery shopping provides you with the option of free delivery. So, the products are delivered to the doorstep without paying any extra money for it and without you having to waste your time and energy touring the supermarket.

2. Freedom of Selection
The user has got this option to choose the same product from multiple suppliers. There is a wide range of products available online with different price ranges. The shopper has got the liberty to choose products that they want and avoid dependence on the local grocer.
 
3. Choose from Multiple Retailers
There are multiple brands that are available in online stores. The user has got the liberty to choose from different brands and multiple suppliers. There are times when the same product is sold cheaper by a particular supplier. The shopper can opt for the deal they wish for and order the product.

4. Cheap Deals
The exchange of goods and services is done directly between the seller and the buyer in most cases. This implies that the product becomes comparatively cheaper. There is minimal or no labour cost involved. So, if the user buys in bulk, they save a lot of money.

5. Cut Petrol and Parking Cost
Shoppers generally visit superstores or retailers for shopping. They either take the public vehicle or use their own means of transportation. In case, they use their own vehicle; they are required to pay for fuel and most often, the parking charges. When the user opts for online grocery shopping, they save the cost of for the same.

6. Shop from Anywhere
The user just needs to have an active internet connection and a device which can run the application to do to the shopping. The online stores provide the delivery service to the remotest part of the country. The user can enter the pin code of the area and see if the delivery is feasible.

7. Shop Anytime
Online stores are open for shopping at any given point of time. Normally, any grocery store is open in the business hour, but online stores are available 24*7. The user can shop anytime in comfort and leisure. This saves a lot of daytime to do other productive work.

8. Cashback and Discount
Online stores give a lot of offers and cashbacks, even in non-festive seasons. The shopper can save a lot of money when they buy groceries online.

9. Multiple payment options
The user has got multiple payment options to pay for the product. They are required to make the payment at once, even if the product is purchased from multiple sellers. The is an option of cash on delivery too, which allows the user to pay at the doorstep after the product is delivered.

FIVE REASONS WHY DIGITAL PAYMENT APPLICATIONS ARE ESSENTIAL

The Indian economy is highly dependent on cash transactions. The government is trying to promote an online payment solution. Post demonitisation, which happened in November 2016, the use of digital payment methods in the country increased. Even Google has predicted that the digital payment in India might hit to USD 500bn mark by 2020. The cashless payment methods will succeed only if the basic infrastructure for implementation is provided to the people. These payment apps are heavily reliant on smartphones and data connection. The availability of these phones with internet connection at affordable costs is required. Availability of Internet is the most crucial factor for digital wallets to work, and huge investment is required by the government to provide connectivity at a reasonable rate.   

Here are the five most important reasons why the digital payment system is essential for us:

1. Convenient
The digital payment applications are very simple to use, and no hard cash is required at the time of payment. The user just needs to have a smartphone with a data connection. The payment could be made by entering the phone number or scanning the QR code of the merchant — no need to carry any physical card or stand in a queue at an ATM.

2. Record Keeping
Digital wallet keeps track of the expenditure. All transactions are recorded. It is very easy for a person to acknowledge their spending. It could also help in filing Income Tax returns as it's easier to track the money spent on goods and services because of the availability of record.

3. Less Risky
Mobile payment apps are less risky. There is a chance that the cash could be stolen or dropped, but the digital payment applications could be accessed from nearly any gadget with an internet connection. The key is to store the login information secure and keep changing the password occasionally.

4. One Stop Payment Solution
Digital payment applications provide a user-friendly interface for the payment of all utility bills. This application enables the user to pay electricity, telephone, gas bills very conveniently. People who use these apps are no longer required to stand in long queues and waste energy and time to make payments.
 
5. Discounts & Coupons
There are many rewards and discounts offered by different digital wallets to promote their interface. They provide cash back and regular users get other coupons and gift vouchers as well. There are chances that the user might get back the amount they paid for goods and services as well.

5 reasons you should use mobile banking apps

Mobile banking is just the use of mobile phone applications for carrying out banking transactions is a feature offered by many financial institutions, where the financial institutions have released an application for their customers where they can conduct all of their financial transactions online through the application without having to visit the branch of the financial institution. A mobile banking app will make the process of banking easy for the customers. Mobile internet banking activities include getting text alerts from the financial institution on the various financial activities done by the customer. To handle the financial activities through a mobile banking app, the customer has to install the application on to their phone and have a good internet connection like a Wi-Fi or a 4G net connection.

Using a money transfer app is one of the most convenient ways of making financial transactions from mobile phones. In today’s digital age, almost everybody has a smartphone using which they can easily conduct their transactions through their mobile phones. The online money transfer app is directly connected to the financial institutions servers and it allows the customer to check their balance, transfer funds open or close accounts, order debit or credit cards. The mobile banking app allows the customer to handle and conduct their transactions from any place without any hassles.

5 reasons you should use mobile banking apps

1. Low costs:
Financial institutions do not need to maintain any physical branches if the customer is going to carry out their transactions over mobile phones. If the number of users who carry out their transactions over the mobile phones increase, then it will reduce infrastructure costs for building more and more physical branches.

2. Document sharing and assistance with other digital banking services:
Mobile internet banking allows the customer to share all of their documents through the application. This will allow the customers and the bank representatives to conduct real-time, document review and real time support with financial institutions app.

3. Efficient utilization of experts:
A financial institution can collect the pool of financial experts and use these experts for providing service to the customers who wish to use mobile internet banking. This means more access to different banking features from anywhere.

4. Increased accessibility to the underserved:
For the customers who live in remote areas and do not have a physical branch of the financial institutions in their locality, they can easily conduct all of their financial transactions through the online money transfer app.

5. Enhanced security:
With the advancement in technology every day, the apps designed for financial institutions have been improved over the years with a lot of detail to security. The inclusion of biometric security features such as fingerprint and face recognition, the mobile money transfer app offers more security and protection to the customers data.

Top 5 apps for mobile banking apps for money transfer

Mobile banking is the act of making financial transactions through a mobile device over the internet. These activities can include such as getting text alerts, usage activity of the bank account, or paying bills online. Mobile banking can be availed for carrying out any type of Banking activities online. In today’s digital age, where almost everybody owns a smartphone the act of carrying out transactions has become easy and convenient for their customers. Mobile internet banking has made it easy for the customers to track all the transactions to make it beneficial for the customer.

One main advantage of using an online money transfer app is that the customers can conduct their transactions from anywhere at any time without any hassles. All the transactions done by the customer through the mobile internet banking option are automatically updated to the customers bank account. If the customer wishes to track their transactions. A customer just needs a mobile phone and a good internet connection for handling transactions. The feature of mobile banking provides a wide range of services to their customers.

5 best apps for mobile internet banking:

1. Axis Bank’s mobile application:
The money transfer app that has been provided for the customers of Axis bank is famous because of the stability of the app. One of the innovative features that is offered by the app is that it will allow the user to schedule the credit card payment for a specific date. The app also offers the feature of converting the credit card payments to the EMIs, block the cards or temporarily deactivate the debit card or set limits on the debit cards.

2. SBI’s anywhere personal application:
SBI bank has a number of mobile banking apps for all sorts of services. The mobile banking app has all sorts of services. The mobile banking app has the mCash feature where the customer can transfer the funds to a mobile number or an email-id.

3. ICICI Bank mobile application:
The mobile app that was made by the ICICI is one of the best high rated mobile internet banking applications in India. The banking app also allows the user to transfer the funds, pay the credit card bills and also the utility bills, open fixed deposits and the recurring deposits and manage life insurance policies.

4. Bank of Baroda’s M-connect plus application:
The M-connect plus app is the upgraded version of the Banks official app for mobile internet banking. This app allows the customer to make card-less cash withdrawals from Bank of Baroda ATMs, they also provide an overall view of the account details.


5. HDFC’s Mobile bank application:
HDFC is one of India’s largest banks and the easy money transfer apps provided by HDFC is packed with a lot of features to make the lives of customers easy and convenient. The HDFC mobile banking app also allows the customer to transfer funds, make credit card payments and pay the utility bills.

5 advantages of using mobile banking

A money transfer app is one of the easiest and convenient ways of making financial transactions using the apps provided by the respective financial institutions. Mobile banking can be defined as the facility that is provided by the banks to their clients. Through Mobile internet banking, the customer can conduct all their financial transactions with their bank from the convenience of their home. In today’s digital age, any individual can take of their financial transactions from their mobile banking apps, all they need is a mobile device and a good internet connection to carry out their transactions. Transactions that place through mobile banking include online payment of bills, locating an ATM, fund transfer, list of latest transactions. An online money transfer app also offers advanced security by sending alerts or notifications on the registered mobile number, on the account’s activity.

An individual can easily track all their transactions online and provide the customers of tracking their transactions through the internet banking apps. Mobile internet banking will not provide a direct access to the ATMs, but they can make provisions for the customer to use the ATMs at different financial institutions and retail stores where they will reimburse the customers for ATM charges. The features of mobile internet banking include getting text alerts on all the financial activities of the customer making it convenient for them. Any individual who wants to use mobile internet banking will need just a device and good internet connection like a Wi-Fi and a 4G network. Internet banking through mobile devices has made banking easy, fast and convenient for their customers.

5 advantages of mobile banking:

1. Available all time from anywhere:
A money transfer app allows the customer to carry out a transaction at any point of the day from anywhere. Since the customer will just need their device with the app and a good internet connection, the customer can carry out the transaction from anywhere.

2. No paperwork required:
While making transactions or doing any type of banking activity from a bank the customer will have to fill out a lot a paper work to handle them. But, with a money transfer app the customer has to just know all the features provided by the app.

3. Super-fast service for customers:
With a good internet connection, all the transactions done by the customer will be done fast making it convenient for the customer.

4. Transactions updated instantaneously:
All of the transactions are updated as soon as they are completed, and the customer will easily be able to check all the transactions done by the customer.

5. Wide range of services:
Mobile internet banking provides their customers a whole range of services to ease their banking activities.

Best mobile banking apps for money transfers

The act of making financial transactions online through mobile devices is known as mobile internet banking. Mobile banking includes a lot of features that are offered by the financial institutions. Through mobile internet banking, a customer can conduct all their financial transactions, paying bills or send money abroad from the comfort of their homes. In today’s digital age mobile banking is a convenient option for the customers. Customers can conduct any activities of the bank from anywhere. Mobile internet banking has made it easy for their customers to make transactions from anywhere. The customer just needs a good device and good internet connection.

The feature of conducting transactions online through a mobile transfer app will provide their customers the option of tracking all their bank statements or transactions through net banking apps. An online money transfer app is fast and allow the transactions to be carried out between accounts with out any hassles, especially if the two accounts are held by the same financial institution. Internet banking allows the customer to provide direct access to the ATMs, but they can also make provisions for the customer to use ATMs at the other banks and the retail stores which will be reimbursed for the ATM charges.

Best mobile banks for money transfers:

1. ICICI Bank Mobile application:
The mobile app by ICICI is one of the best high rated mobile banking applications in India. This banking app allows the user to transfer the funds, pay the credit card bills and pay the utility bills, open fixed deposits and the recurring deposits and manage life insurance policies.

2. Axis Bank’s Axis Mobile application:
The money transfer app provided for the customers of Axis bank is famous because of the stability of the app. One innovative feature offered by this app is that it will allows the user to schedule credit card payments for a specific date. This app also offers the feature of converting their credit card payments to EMIs, block the cards, or temporarily deactivate debit cards or set limits on debit cards.

3. SBI’s anywhere personal application:
SBI Bank has a number of mobile banking apps for all sorts of services. This mobile banking app has the mCash feature which allows the customers to transfer the funds to a mobile number or email-id.

4. Bank of Baroda’s M-connect plus application:
The M-connect plus app is the upgraded version of the Banks official app for mobile internet banking. This app allows the customer to make card-less cash withdrawals from Bank of Baroda ATMs, it also provides an overall view of the account details.

5. HDFC Bank mobile application:
HDFC is one of India’s largest banks and the mobile banking app provided by HDFC is packed with a lot of features to make the lives of customers easy and convenient. The HDFC mobile banking app allows the customers to transfer funds, make credit card payments and also pay utility bills.

Best mobile banking apps for money transfers

The act of making financial transactions online through mobile devices is known as mobile internet banking. Mobile banking includes a lot of features that are offered by the financial institutions. Through mobile internet banking, a customer can conduct all their financial transactions, paying bills or send money abroad from the comfort of their homes. In today’s digital age mobile banking is a convenient option for the customers. Customers can conduct any activities of the bank from anywhere. Mobile internet banking has made it easy for their customers to make transactions from anywhere. The customer just needs a good device and good internet connection.

The feature of conducting transactions online through a mobile transfer app will provide their customers the option of tracking all their bank statements or transactions through net banking apps. An online money transfer app is fast and allow the transactions to be carried out between accounts with out any hassles, especially if the two accounts are held by the same financial institution. Internet banking allows the customer to provide direct access to the ATMs, but they can also make provisions for the customer to use ATMs at the other banks and the retail stores which will be reimbursed for the ATM charges.

Best mobile banks for money transfers:

1. ICICI Bank Mobile application:
The mobile app by ICICI is one of the best high rated mobile banking applications in India. This banking app allows the user to transfer the funds, pay the credit card bills and pay the utility bills, open fixed deposits and the recurring deposits and manage life insurance policies.

2. Axis Bank’s Axis Mobile application:
The money transfer app provided for the customers of Axis bank is famous because of the stability of the app. One innovative feature offered by this app is that it will allows the user to schedule credit card payments for a specific date. This app also offers the feature of converting their credit card payments to EMIs, block the cards, or temporarily deactivate debit cards or set limits on debit cards.

3. SBI’s anywhere personal application:
SBI Bank has a number of mobile banking apps for all sorts of services. This mobile banking app has the mCash feature which allows the customers to transfer the funds to a mobile number or email-id.

4. Bank of Baroda’s M-connect plus application:
The M-connect plus app is the upgraded version of the Banks official app for mobile internet banking. This app allows the customer to make card-less cash withdrawals from Bank of Baroda ATMs, it also provides an overall view of the account details.

5. HDFC Bank mobile application:
HDFC is one of India’s largest banks and the mobile banking app provided by HDFC is packed with a lot of features to make the lives of customers easy and convenient. The HDFC mobile banking app allows the customers to transfer funds, make credit card payments and also pay utility bills.

Benefits of mobile internet banking

Mobile internet banking is a way of conducting financial transactions online through a mobile device. The feature of mobile internet banking includes a lot of activities such as getting an update text from the financial institution on the usage activity or using the app to send funds abroad. Through mobile internet banking a customer can easily bank or make transactions from anywhere at any time. In today’s digital age, where almost everybody owns a smartphone the feature of using apps for mobile internet banking makes the process of making transactions convenient and easy for the customers.

Mobile internet banking also provides their customers the option of tracking all the transactions through the internet banking apps. Mobile internet banking does not provide direct access to the ATMs, but they can make provisions for the customer to use the ATMs at other banks and the retail stores where they will reimburse customers for ATM charges. For performing transactions online, the customers will need a device where they can install the application and they will need a good Wi-Fi and 4G network for making the transactions. The process of mobile internet banking is easy, convenient and fast for the customers.

Benefits of mobile internet banking:

1. Make transactions from anywhere:
An individual who wishes to make transactions do not need to visit the bank counters every time, with the introduction of mobile internet banking a customer can easily conduct all their transactions through applications.

2. Transactions at any time:
Any one who wants to make a money transaction or conduct any type of transaction with a bank may not worry about timings anymore. With the mobile internet banking apps, a customer can make transactions in the middle of the night.

3. Transactions updated automatically:
Transactions done by a customer will automatically get updated to the bank account and all the statements of the bank account will be recorded and updated, so if the customer has any query regarding their bank statements or transactions, they can just use the app to clear out their doubts.

4. Can use any device:
Customers can use the mobile banking apps through any smartphone device which has internet connectivity. A customer can use their phones without any hassles to conduct transactions with out any problems.

5. Wide range of services:
Payment of bills, transferring funds or checking the transactions of the account all of these can be done through internet banking apps. 

6. Track all transactions:
Through mobile internet banking, the customer can track all of their transactions, check their account balance at all times and keep an eye out for any false transactions.

4 factors to consider before taking a loan for a new car

Buying a new car is a momentous occasion in India. Your car can be a mark of success and stability. Therefore, people tend to put in a lot of thought while selecting their desired four-wheeler. However, picking the correct car loan for your car is just as important as choosing the best vehicle. Here is a look at things you should consider before taking a new car loan.

1. The amount you need to borrow
Just because you are about to purchase a new car, does not mean you should borrow as much as you want. While most car financers will offer up to 90-95 per cent of the vehicle’s price as a loan, you need to be smart while deciding the sum to borrow. You should only apply for as much of a loan as you are comfortable repaying. Keep in mind that lower loan amount will result in smaller equated monthly instalments (EMIs).

2. Rate of interest
Before you apply for a new car loan, check the rate of interest that the lender is charging on the lent sum. Once you determine the rate of interest, you can use the same to calculate the monthly payments you would need to make. Online car loan EMI calculators can help you make such calculations and comparisons. Choose the interest rate that you are most comfortable with before borrowing from the lender.

3. Documents required
Before you apply for a new car loan, check what documents are required to get the loan sanctioned. Make sure you have all the necessary documents so that the entire process becomes much simpler and streamlined. If you cannot ascertain what documents would be necessary, ask the lender to clarify the same.

4. Tenure for repayment
Car loans may have flexible repayment tenures ranging between 1 and 7 years. You must make sure to pick a tenure that you are comfortable with. Keep in mind that longer tenures would mean lower monthly instalments, but greater interest payable overall. Therefore, if you think you would be able to repay the money in two years, make sure you pick a loan that allows you to repay it within that time so that you can limit interest payments.

The new car loan application is simple and does not require any collateral, as the car you purchase is the collateral in this case. However, keep the factors mentioned above in mind to get the best loan for buying your dream vehicle.

5 mobile payment apps that have revolutionised money

In a bid to go cashless, India has embraced the mode of digital wallets. Furthermore, due to the popularity of smart devices, most banks and financial institutions in India have developed mobile payment apps. These applications can be used by anybody and do not require any lengthy or complicated payment procedure. Here is a look at the five best payment apps in India.

1. Paytm
One of the most popular mobile wallet apps in the country Paytm was launched in 2010. Through several difficulties over the year, the wallet has managed to retain the number one spot for itself regarding all mobile transactions. Apart from consumers, lakhs of merchants across the country today accept payments through the Paytm app.

2. Freecharge
Freecharge is another important and well-known mobile wallet in the country. It made quite a name for itself by offering great discounts and cash backs on transactions. While it can be used to make payments to vendors, the app is most popular among the customers for conducting mobile recharges and bill payments.

3. HDFC Chillr
A mobile payment app developed by HDFC Bank for its customers, HDFC Chillr offers plenty of unique features to users. With this app on your phone, you can pay anyone in your phone’s Contacts list without any added hassle. Apart from this, you can also use the mobile payment app to pay for utilities, pay for the products you purchase across e-commerce sites and to pay at certain merchants who accept payment from HDFC Chillr.

4. MobiKwik
With over 20 million customers, MobiKwik’s popularity is only second to Paytm’s. Furthermore, over 60,000 merchants in India accept payment from MobiKwik, which has further boosted the popularity of the mobile wallet app. It is the only app of its kind where cash collection at your doorstep is a feature. Apart from this, you can use this app to pay your monthly bills, purchase items through online shops and through certain offline merchants.

5. State Bank Buddy
As the name suggests, State Bank Buddy is the mobile wallet app from State Bank of India to its customers. It provides the basic facilities, through which customers can pay their utility bills, recharge their phone and conduct other transaction as well. Currently, the bank is in the process of improving the interface of the app to offer better services to clients.

Therefore, if you are looking to use a payment app, you should pick a wallet from the ones listed above.

A detailed guide on gold loan and its EMI calculator

Gold loan is the safest and easiest way to raise money. It is safer than most other kinds of loans because here the borrowed sum is offered against any gold articles or jewellery that you possess. Therefore, you are essentially mortgaging your gold items for the necessary funds. If you are unable to repay the bank, they will simply deduct the remaining money from the value of the gold.

If you are looking for a gold loan, you can use the gold loan EMI calculator available online.

What is the gold loan EMI calculator?
A number of reputed finance websites offer a digital calculator on their portal, through which prospective gold loan borrowers can calculate the monthly instalments they would need to pay based on factors, such as interest rates, principal sum borrowed and the tenure of repayment.

With this online gold loan calculator, you can mix and match the interest rates and the tenure of the loan until you find an EMI that you are comfortable with. Therefore, this calculator can be instrumental in determining the best interest rate for you.

Benefits of using the calculator

• Calculating numerous interest rates and tenures offered by the various lenders manually can be stressful. Furthermore, such calculations can turn out to be faulty. With the online calculator, you can perform the extensive calculation quite fast and rest easy knowing that the results will always be numerically correct.
• Gold prices are always changing. It is difficult to determine the current price of gold and use that to perform the calculation manually. However, gold loan EMI calculators take the current price of gold into consideration, while performing these calculations.
• You can quickly figure out the interest rate and tenure most suitable for you if you use the calculator. This is because you can enter the EMI you would be comfortable with along with the tenure to check the ideal interest rate for the loan. After you determine the interest rate, you can simply search online for a lender offering the loan at such interests.
• Lastly, after determining the EMI you would need to pay, you can check whether your monthly budget can be adjusted accordingly.

Therefore, before applying for the gold loan, make sure you take advantage of the gold loan calculator and figure out all aspects of the loan.

4 ways to get a two-wheeler loan with a low credit score

The first thing that banks check when you apply for a loan is your credit score and credit history. If you use a credit card or have borrowed before, your credit score will be based on how well and how timely you paid off your debts.

Banks generally reject two-wheeler loan applicants who have a poor credit score, since they are more likely to avoid repaying their debts. However, even if you do not have a good credit history, you can get a loan through the following means.

1. Compare the lenders
While getting two-wheeler insurance is easy when you have a good credit history, it is slightly more difficult with a poor credit track record. However, many lenders today have shifted their focus from credit scores to other things, such as the stability, income source and the social media profiles of the loan applicant. Therefore, you need to find a lender who considers these aspects along with the credit score, if you want to get a two-wheeler loan.

2. Negotiate with lender
A credit score is a representation of the past repayment history of loans. However, since then your economic condition may have improved greatly. You need to convince your two-wheeler lender of this fact so that the company understands that you will not default on making the payments on time this time around.

3. Pay the majority in down payments
Even with a poor credit history, if you manage to pay a large portion of the cost of the bike or scooter through the down payment, you would need to borrow less. The lender may think twice while lending bigger sums to a person with bad credit, but it will not reject the application if the loan amount is nominal. Use two-wheeler loan EMI calculator while determining how much you can afford to down payment. The two-wheeler loan calculator online will also help you ensure that you do not end up with huge monthly payments.

4. Get a co-applicant
A loan where you are the sole applicant may be rejected based on the low credit scores. However, if you apply for the loan along with another person, the banks may not be so fast in rejecting the application. In fact, if the co-applicant has a good credit history, it is almost guaranteed that you will be lent the necessary sum.

However, throughout the entire procedure of the application, make sure you use the two-wheeler loan calculator to determine how much you are comfortable borrowing.

NRI account types and its features explained!

An NRI account is the type of bank account meant for Non-Residential Indians i.e. Indians residing abroad. Most banks in India offer their customers NRI banking services. If you have an NRI account, you can deposit your hard-earned money and save it for future.

There are three types of NRI bank account. They are-

• NRE Savings Fixed Deposit Account
• NRO Savings Fixed Deposit Account
• FCNR Savings Fixed Deposit Account

Let us have a quick look at each type of NRI bank account and their exclusive features.

1. NRE Savings Fixed Deposit Account
With an NRE (Non-Resident External Rupee) account, the account holder can open a simple savings account but the balance will be maintained in the Indian currency only. Even if you make a deposit in another currency, it would be converted into Indian Rupee, before being deposited.

Features-
• You can withdraw money in the foreign currency, but first, you would need to convert the Indian Rupee into your preferred currency. The account holder has to bear the cost of the same.
• You can open a joint account with a fellow NRI, but not with an Indian resident. Nevertheless, you are allowed to transfer money to an Indian account with ease.
• You can send the entire amount in your account out of the country without the clearance from the Reserve Bank of India
• The deposits made as well as the interest earned in an NRE account is free from any income tax under the Govt. of India. However, the benefits of tax exemptions are only applicable to individual account holders and not for Overseas Company Bodies.
• Accountholders are eligible to apply for loans against the deposits in the NRE account
• Nominations are allowed in NRE accounts

2. NRO Savings Fixed Deposit Account
An NRO (Ordinary Non-resident Account) is any normal bank account held by a Non-residential Indian.

Features-
• You can make deposits into an NRO account from overseas
• The interests earned from this type of an account are not exempted from the Income tax in India
• An NRO account is non-repatriable, meaning accountholders cannot transfer their savings from this account into a foreign account without the permission of the RBI.
• You can deposit Indian currency to an NRO account
• Nominations are not allowed in NRO accounts
• You can open a joint NRO account with any Indian resident

3. FCNR Savings Fixed Deposit Account
FCNR (Foreign Currency Non-Resident) account is only useful for keeping fixed deposits for a certain period, ranging from one to three years.

Features-
• You can deposit amount as fixed deposit for at least one year and up to a maximum of three years
• You can transfer the principal and interest earned to an account overseas in the same currency or you can convert it to any other currency
• The interests earned on the fixed deposit amount are liable to tax exemptions under the Income Tax Law in India
• Nomination facility is available with an FCNR account
• You can get an overdraft on your current account or savings to account against the FCNR fixed deposit
• You cannot hold joint accounts with an Indian resident

If you are looking forward to opening an NRI account in India, make sure that you understand the features of each of these three accounts and choose one according to your needs.

Atal Pension Yojana- All you need to know

What is the Atal Pension Yojana Scheme?

The Government of India launched the Atal Pension Yojana Scheme in 2015, to inculcate the habit of saving amongst daily wage workers. According to this scheme, they can save a considerable amount of money for their pension once they retire. Not just daily wage workers, people who have private sector jobs can also enjoy this scheme’s benefits.

What is the eligibility for applying for the Atal Pension Yojana Scheme?

If you are looking to invest in the Atal Pension Yojana Scheme, then you will have to fulfil the required eligibility criteria-

• The applicant must have a valid and registered mobile number
• The applicant must be aged between 18 years to 40 years
• Applicants, who have a valid and fully functional savings account, can only qualify for an APY account

What are the features of Atal Pension Scheme?

Before you apply for an APY account, read on to know the several features of the scheme.

• Customer contribution- If you start contributing from the age of 18 years, then you will have to pay 42 INR every month to score a pension of 1000 INR. You can also go for the auto-debit option. In case, you decline to make a payment then you can re-enter the scheme by paying the due principal amount and interest rate.

• Contribution by the government- In order to drive more people to invest in the Atal Pension Yojana, the government also contributed for the duration of 5 years i.e. from 2015 to 2020. All the contributions are to be sent to the accounts activated between June 1, 2015, to December 31, 2015. All the active customers must keep in mind that they will not be covered under the Statutory Social Security Schemes.


Additionally, they should not be income taxpayers. If you are looking to secure the government’s investment, then you will need to invest regularly and on a monthly basis during the entire course of a year. If you are successful in doing this, then the Government of India will invest 50% of their monthly contribution in your account.

•Subscriber enrolment- If you have a functional and valid bank account, then you can use the auto-debit service for making payments to your APY account on a monthly, quarterly and half-yearly basis. However, keep in mind that you will have to make all your payments on time; otherwise, you will have to pay penalties. Additionally, in case you do not make any monthly investments, then the government will discontinue your account. In addition, all the money that the government provided you will be subject to penalties.

The Atal Pension Yojana Scheme is considered a godsend for many. This step by the government has been received with a lot of support and encouragement. Moreover, it is highly responsible for ensuring monetary stability for the post-retirement lives of wageworkers. 

Sukanya Samriddhi Account V/s Public Provident Fund: the difference

When it comes to ensuring your family’s financial security, often people get confused as to whether they should save their hard-earned money in a bank or invest it in a scheme. In recent times, two of the most popular financial tools in India are the Sukanya Samriddhi scheme and the Public Provident Fund.

Here is a look at the schemes, their benefits and how they differ from each other so that you can make the most of your wealth!

What is Sukanya Samriddhi Account Scheme?

The Sukanya Samriddhi account scheme is a Govt. aided scheme that aims towards securing the girl child’s future by providing education to them.

You can open a Sukanya Samriddhi account in one of the authorized commercial bank branches or in a post office. People, who belong to the lower-income wage group are also eligible to open an account for the Sukanya Samriddhi scheme, as this is a government-backed scheme and will ensure many benefits for the girl child.

What is Public Provident Fund Scheme?

The Ministry of Finance introduced the Public Provident Fund (PPF) Scheme in 1968. The primary objective of the scheme was to encourage people to save more and build a retirement corpus for the golden years.

How does Sukanya Samriddhi account scheme differ from the PPF scheme?

Both the schemes differ from one another on the following grounds-

• You can expand the tenure for any number of times, each time for a 5-year long period, upon the maturity of your PPF account. You must do so within a year from the maturity date.
For Sukanya Samriddhi account, an expansion of 14 years is allowed, but only up to 7 years.

• You can deposit money in the PPF account via cheque, cash, demand draft (DD), and online funds transfer.
Sukanya Samriddhi account only accepts deposits in the form of cash, cheque and DD.

• The account in Sukanya Samriddhi scheme can be opened only under the name of the girl child. No one other than the girl child is eligible for any of the benefits of the scheme.
Any Indian resident of age 18 years and above can open a PPF account. There is no restriction on the upper age limit for opening this type of an account.

• Sukanya Samriddhi account scheme allows you to withdraw money partially. You can withdraw a small amount only after you turn 18 years old and use it to fund your education. You can withdraw 50% of your funds from the account after turning 21 years.
If you have a PPF account, you will be allowed to withdraw your fund completely on the maturity.

• The Sukanya Samriddhi scheme offers an interest rate of 8.6%, which is the highest when compared to other small savings schemes.
The interest rate earned on funds in PPF account as on October 2018 is 8.0% per annum.

Both PPF and Sukanya Smariddhi Scheme have their own advantages and disadvantages. However, it is best to analyze the intricate details of both the plans before putting your money in any of the schemes.

Different types of credit cards in India

Credit cards can make your life very simple since you do not have to carry tons of cash with you for financial transactions. Just a single swipe of a credit card and you are done! However, before you get a credit card for yourself, make sure that you know which one is best suited for your requirements. Read on to know more about the different types of credit cards in India.

1. Gold credit cards- If you are someone who earns a lot, then going for a gold credit card from any bank is a good option. However, keep in mind that in order to get a gold card you must have a good credit score.

2. Silver credit cards- Silver credit cards are best suited for people who are salaried employees and have work experience of at least 4-5 years. It is imperative to have a good credit score in order to get a silver credit card. Generally, no interest is charged on such cards for the first 6-9 months in case of balance transfers and they have a low membership fee.


3. Credit cards for women- Some banks have introduced credit cards, exclusively for women. These credit cards mostly centre on cash back offers and shopping rewards, insurance, surcharge waivers, bonus reward points etc. Women who have these credit cards can also earn points while shopping or making purchases. A few credit cards additionally offer attractive travel benefits.

4. Classic credit cards- Classic credit cards in India are a good option for people who are looking for multiple features and benefits. Some of the features that come with classic credit cards are revolving credit, global acceptance, cash advance, rewards program, interest-free credit period, insurance, supplementary cards, and a 24-hour customer care helpdesk. Most of the classic credit cards do not have any joining fees or annual fees and are mostly provided at low finance charges.


5. Titanium credit cards- Titanium credit cards offer several benefits and privileges but the main feature of a titanium credit card is the Titanium Rewards program. This respective rewards program provides benefits such as cash back offers, accrual of reward points, revolving credit, overtax waivers, yearly fee reversals, interest-free credit period, add-on card facility, dining benefits, beauty and wellness offers, welcome gifts such as vouchers for shopping purposes, insurance, lifestyle benefits etc.

6. Balance transfer credit cards- Many banks offer the facility of transferring your balance amount on credit cards. In other words, you can transfer your bank balance from one credit card to a new one of a different bank. Most of the balance transfers do not charge any interest in the first 3 months of your repayment. However, once those 3 months are over, they start charging a considerable interest on the balance. 

Having a comprehensive idea about the different types of credit cards will make your search easier for a credit card best suited for your needs. Hence, before you buy one make sure that you do your research.

4 reasons why you should hold a home insurance policy in India

Health, life and motor insurance are the three most popular insurance products in the market today. All of the three insurances help keep you and your property safe. While life and health insurance deal with you and your family’s financial security, motor insurance provides protection for your asset.

However, you may be ignoring the protection of another vital asset in your life – your house.
Home insurance policies are extremely important, as it not only protects the structure of the house, but also the contents within it. Here is a look at the importance of home insurance plans in India.

1. Safeguard against liabilities
Your property insurance will cover you against injuries and other property damage inside the house. Furthermore, if guests or other parties suffer injuries while inside the house, you can claim help from the home insurer as well. Therefore, home insurance secures you against legal liabilities as well.

2. Protection against both natural and man-made calamities
Your house is liable to undergo damage from a number of sources. Natural disasters, such as earthquakes, floods, storms can cause excessive damage to the structure of the house. Such events can even lead to complete destruction of the property. Apart from natural calamities, man-made activities can also damage certain parts of the house. Any damage arising from theft, burglary, and riots also come under the coverage of home insurance plans.

3. Temporary living expenses cover
In case of accidental damage to your house, you will need to initiate repairs to the same. Under such a circumstance, where extensive repairs are needed, you and your family may have to arrange for alternative accommodation. Your property insurance will cover for the extra expenses that you incur while staying at hotels during such repairs at your damaged home.

4. Cover for loss of precious personal belongings
Apart from the structure of the property, the insurance also covers the assets inside the house. For instance, home insurance policy covers the important papers and jewellery, along with all other precious items.

Therefore, getting your home insured is essential if you want to protect your family and your property from unforeseen dangers lurking around every corner. The policy will ensure that the home you built remains standing at all costs.

How are demat and trading account related?

Demat account is the type of account that allows investors to deposit and hold their shares in an electronic form. Such an account transforms the physical shares into the electronic format, a process more commonly known as dematerializing.

Trading account, on the other hand, is used to sell or buy shares in the stock market. When different companies list their shares in the market, the trading account allows you to trade the same on an electronic platform.

If you are looking to invest in shares, then you must have a clear idea on the concept of trading and demat account and the relation between the two.

Features of demat account

• No charges are applicable for opening a demat account
• All the transactions are linked with AMC (Annual Maintenance Charges) from the second year onwards
• Waiver on the AMC for the first year
• No taxes are levied on documents like receipts, cheques, licenses etc. on the transfer of securities held in the demat format
• Auto credit of public issues/bonus/rights in the demat account through Electronic Clearing Service
Features of trading account
• Seamless transfer of shares and funds in the linked Savings and Demat account
• No need for bank transfer, cheques, or application forms for each transaction
• Option to invest in multiple investment schemes like Derivatives, Equity, Bonds etc. as per your need and risk appetite
• Allows you to invest at any time, from any place using the internet and mobile trading apps
• Allows you to carry out purchase and sale transaction in a seamless manner in bonds, mutual funds, and equity shares under one platform

How are the two accounts related?

Demat and trading account are closely related. Trading accounts work the same way as your current bank account, while the demat account works similar to your savings account.

Trading account links your demat account with the bank account. It withdraws your shares from the demat account and sells it in the stock market. Both the accounts are crucial if you wish to trade in the share market. As an investor, you are using the trading account to purchase the shares of a company, and you are keeping it stored in an electronic form using the demat account. In this case, the money that is debited from your bank account is credited to the demat account.

Similarly, when you are looking to sell your shares through the trading account, the money is debited from the demat account and is credited to the bank account once the shares are sold.

Therefore, in order to be able to trade in the stock market, having both demat and trading account is imperative.

How to invest in a national pension scheme? What are its types and charges?

Retirement can be a difficult time both physically and financially. With the slow deterioration of health, financial security can be attained if one is careful. A government-sanctioned pension scheme, known as the national pension scheme, is the simplest and cheapest way to ensure this financial independence post-retirement.

What is the National Pension Scheme (NPS)?

It is the least known government approved pension schemes in India. It is a specialized investment where people can deposit small sums of money over the years. The NPS would then offer a lump sum payout during the retired life of the investor. Therefore, the investor does not need to maintain other savings for his/her post-retired life.

Types of NPS

NPS is divided into two types or tiers, namely, Tier I and Tier II.

• Tier-I Account
In this type of National Pension Scheme account, the withdrawals are limited. If you are investing in the first tier of NPS, you can withdraw up to 20 per cent of the funds before reaching the age of 60. The remaining 80 per cent of the money is used for buying the annuity for you. Due to the annuity plan, you would need to pay a fixed sum of money until the scheme matures or until you pass away.

• Tier-II Account
It is a savings option where you save voluntarily. Therefore, from such an NPS account, you are free to withdraw whenever you like and as much as you like.
The charge involved with National Pension Scheme investments

• During the initial set up of the NPS account, you would need to pay the POP charges. Rs. 100 is charged as registration fee. Furthermore, 0.25 per cent of the initial investment is charged as a contribution. The minimum amount is Rs. 20 and the maximum is Rs. 25,000.

• For subsequent transactions, the subscriber pays a 0.25 per cent fee on the amount subscribed. The minimum payment is Rs. 20, while the maximum payment is Rs. 25,000.

• Any transaction that does not involve any subscriber contribution will result in a charge of Rs. 20.

Keep these factors in mind if you are planning to invest in the National Pension Scheme so that you can take advantage of the benefits from such investments post your retirement life.

What is the process of mutual fund investment? Its types and features explained

Investment is one of the simplest ways to increase wealth. However, most people are unaware of the intricacies of the markets to navigate investments profitably. Mutual funds investment is a specialized system where anyone can invest money. You do not need to have an extensive idea about the workings of the market as professional fund managers manage your investments. In exchange, you pay a minor portion of the profits you earn to these fund managers.

What are mutual funds?

Mutual funds refer to a pool of money accumulated through a number of investors. This accumulated fund is invested in various market schemes, such as debt funds, stocks and liquid assets. The profits and losses from this investment are shared equally among the group of investors. However, due to the involvement of professional fund managers, the risk of losing money is severely restricted.

Now that you know what mutual funds are, here is a look at the types of mutual funds investment you need to know about.

Types of mutual funds

1. Equity funds
In this kind of mutual funds, your money is invested directly into stocks and equities of various companies. These schemes provide high-risk high-return opportunities to investors.

2. Debt funds
Investments into company debentures, government bonds and fixed income assets are classified as debt funds. These mutual funds investment provide a limited return but are much safer than equity funds.

3. Money market funds
In these kinds of mutual funds, the money is invested in liquid assets, such as T-Bills, CPs and more. Such investments are safer and offer moderate returns. However, money market investments are best suited to people looking to invest a lump-sum amount.

4. Sector funds
Sector funds are those mutual funds investments where your money is invested in one particular sector of the market, such as infrastructure. The risk and return depend on the current performance of the sector where you have invested your money.

5. Index funds
In such an investment, your money represents a particular index on the stock exchange in a bid to determine the returns and the speed of the index.

6. Tax Saving funds
These mutual funds investments are preferred by those trying to save paying taxes on the profits earned through their investments. Generally, a large chunk of the profits are paid off as income tax, but investing in tax saving mutual funds will result in greater profits reaching your hands, as you are liable for annual tax exemptions.

If you are looking to invest in mutual funds, your choice is limited to these six types. However, seek advice from financial experts to understand, which one is the best option for your investment profile. 

What is a loan against credit card? Its advantages and top banks offering them

Emergencies are always just around the corner and you can never be truly prepared to handle them. Often, such situations will force you to spend a great deal of money. However, you may not have such huge sums lying around in your bank account. At such a time, a loan is your best option. However, most loan application processes are long and strenuous.

Therefore, you should consider a loan against credit card at such times.

What is a loan against credit cards?

If you require money and own a credit card, you can apply for a loan against the card. When you apply for such a loan, your bank will provide you with the required amount of money, which you would then repay through the credit card bills. Some people confuse loan on credit card with cash withdrawal using the card, but these two are different.

In case of cash withdrawal using the credit card, you can collect cash from a nearby ATM using your credit card. The rate of interest charged on such a withdrawal is generally high. However, in the case of loan against a credit card, the interest rates are lower. Furthermore, the money lent is generally greater than the withdrawal limit on the card.

Benefits of loan against credit card

1. The lower rate of interest than most other loans, including the interest charged on cash withdrawal
2. No document required for application of the loan. This is because, all necessary information is already in the possession of the lender, as you are using their credit card for taking the loan.
3. When you take a loan against a credit card, you get the money instantly. This feature is greatly handy for people who require the money immediately.
4. You do not need to visit the bank to apply for the loan. Instead, you can apply for the same from anywhere at any time.
5. The processing fee for such a loan is usually lower than the fee charged for the processing of other kinds of loans
6. You do not require collateral for loans against credit cards. Therefore, the procedure is simpler to handle. 

Banks offering loans against credit card in India

If you are looking for loans against your credit card in India, you have many options. You can avail such a loan if you have credit cards from HDFC Bank, Citibank, HSBC Bank and ICICI. HDFC Bank offers Insta Jumbo loans against their credit cards. If you apply for such a loan against your HDFC Bank credit card, the money lent will be credited to your account within 60 minutes. Thus, the processing of the loan is extremely fast as well.

5 reasons to choose business loan over the personal loan for your company

Starting a business can be exciting and hectic at the same time. The greatest problem is to accumulate enough funds to get the business off the grounds. While some people prefer taking a personal loan to finance their business, others opt for a business loan. However, a business loan is a better option if you are seeking money for your company.

Here is a look at why business loans are preferred over personal loans-

1. Large sums of money
If you opt for a business loan, you can apply for a greater sum from the lender. You can use this money for your business or company. At the start of the business, you need the additional money to establish good relations with your client along with the arrangement of proper space for your company. Different banks have varying maximum business loan limits, check online for more details.

2. Easy approval
While you will need to provide an outline for your business, along with extensive plans for the same, the approval process is easy to crack. If you have confidence over your own business model, you just need to convince the bank to support your vision. Most financial institutions will be eager to help you if they feel that your plan is profitable. Once approved, you will get the money within a few hours or days. You do not need to meet any special business loan eligibility for clearing the process.

3. No collateral required
For a personal loan, you would need collateral, but for business loans, no such collateral is required. This is an attractive benefit of business loans, which make the application procedure simpler and faster.

4. Affordable interest rates
Business loans are a better choice if you are trying to minimize the interest on your borrowed sum. Most business loans have a nominal rate of interest, which in turn will help you grow your business in the future.

5. Tax benefits
As per the Income Tax Act of 1961, certain business borrowers are liable for tax exemptions on the repayment of the loan amount. This is yet another way, in which business loans help new businesses to grow. The money saved on taxes can be used to improve the company.

Therefore, if you require funds for your company, it is always fruitful to take a business loan instead of a personal loan.

Cash or Forex cards: what should travellers consider?

While travelling abroad, one constant worry that people have is how much money to carry with them. Since you cannot withdraw money as and when you need while holidaying abroad, it is important to convert enough money to last for the duration of the trip. This can be difficult to comprehend, which is why forex cards have become so popular among tourists.

What are forex cards?

Forex cards are similar to debit cards, where you need to load funds so that you can withdraw the same money later. However, in the case of forex cards, the money you load on the card is converted into the local currency of the country you visit. Therefore, you do not need to carry cash with you on the travel. You can use the forex card at an ATM in any foreign country to get local currency.

Benefits of using forex cards

Now that you know what forex cards are, here is a look at the benefits of using them on your foreign trip.

1. Accepted widely
Forex cards are not only useful in hotels and restaurants but are convenient to use for the payment for transportation as well. Furthermore, if you are planning to travel to just one country, you can opt for a single destination currency card.

2. Safe to carry
Carrying cash over long distances is always risky. Due to theft or loss, you may lose a large portion of the money you are carrying. Not only does it lead to financial liability, but can also interfere with your plans for the trip. However, when you use a forex card, the risk of theft or loss of the money is restricted.

3. Cheaper than a credit card
If you use a debit or credit card issued in India for transacting in foreign countries, you would have to pay an additional 3-5% of the fee on the transaction. Most Indian banks levy this currency conversion markup for all foreign transactions. With a forex cards, you can avoid this additional expense.

4. Cheaper than buying foreign currency
Due to logistics and other intricate reasons buying converted currency is always more expensive than getting the same fund through forex cards. Even though the difference in prices between the two is limited, you should always prefer the least expensive option.

Keep these benefits in mind while planning a foreign trip, so that you opt for a forex card instead of relying on cash.

Things to consider before buying a health insurance policy

Living in 2018, you must have heard and come across the term ‘health insurance’ very often. This is because everyone recognizes the importance and necessity of having a health insurance policy. That is why they are choosing to invest their hard-earned money in these plans. However, before you also do the same, make sure that you consider the following factors-

1. Claims process- Before you buy a health insurance policy, make sure that you know how the claims process works. The claim process must be swift and easy to deal with, for ensuring that you get your money as soon as possible. Additionally, the claim settlement ratio of the chosen insurance company must be impressive; otherwise, you may have to face a lot of hassle to get your claim settled.

2. Sum insured- The most important part of buying a health insurance policy is to decide the sum insured amount. While selecting this amount consider your age, current medical condition, and medical history, and go for an amount accordingly. The younger and fitter you are lower will be your sum insured. Another component that you should consider is your current monthly income so that you select a sum insured that will be easily affordable.


3. Lifetime renewability- As you grow older, you tend to become more vulnerable to medical complications and ailments. It is during this time, that you will need medical and financial coverage more than ever. Hence, when you are scouting for a health insurance policy, look for one with the lifetime renewability option.

4. Waiting period- Almost all the insurance providers these days impose a waiting period for pre-existing diseases, which normally range from 2 years to 5 years. However, this varies from one insurer to insurer. If you purchase a health insurance policy when you are young, there are considerably fewer chances of you filing for a claim, and you will be able to clear the waiting period in no time.


5. Maternity benefits- Insurance providers have understood the importance of including maternity benefits in health insurance policies due to the increasing medical expenses during pregnancy and after childbirth. Before you finalize a policy, consider the sub-limits and the waiting period for claiming maternity benefits. The policy must also provide coverage for outpatient expenses.

6. Network hospitals- When you are going through several health insurance policies check the list of network hospitals. Network hospitals are those hospitals where you can avail cashless hospitalization and treatment. You will just have to show your health e-card at the hospital desk and your insurance provider will pay for the expenses directly. You will not have to pay a single dime.

Even though health insurance is necessary for ensuring stability, you must do proper research before buying one. If you end up buying a policy in a hurry and without checking it first, then you will be wasting your hard-earned money.

5 ways to organise and save more

Saving is an important habit to inculcate regardless of your earnings. If you cannot save money, you will end up broke at one point or another. However, if you do manage to save your hard-earned funds, you will be able to achieve all your dreams quite easily. If you are trying to save more, here is a look at some simple tricks that will help you in this endeavour.

1. Open savings account
Most people rely on their salary accounts, also known as current accounts, for all their banking needs. However, this is not a good idea. While the company you work for will likely open a current account in your name, you still want to maintain a savings account for conducting personal transactions and savings. With a savings account, you will be able to keep a track of every intricate expense of the month and stick to a budget.

2. Follow an airtight budget
Many people fail to meet their savings goal because they do not employ a good and strict budget. A monthly budget helps you keep a tab on your expenses and aid you to meet the monthly goal for savings. Furthermore, you can quickly identify useless expenses and stop spending money on such things. This bolsters your savings and makes it more organized.

3. Increase your income
One of the simplest means to save more is to earn more. While this may sound like a difficult prospect, investments and other avenues of side income should be explored if you are trying to save more. Just remember not to spend all of your extra earnings on books, clothes and jewellery and save a part of it for better things.

4. Make savings goals
Savings is generally easier if you have a goal to follow. For instance, you would be able to save more efficiently if your goal of saving is to fund your post-retirement life. Apart from the goal think of how much money, you would need for the same. This would greatly motivate you to save more and achieve your plans.

5. Do not use credit cards
Using credit cards can lead to huge debts, which in turn will increase your expenses and dwindle your savings. Credit cards allow you to spend money that you do not have in hand. Furthermore, greater interest rates will force you to pay huge bills. Therefore, make sure you use debit cards and cash so that you do not end up in debt.

Keep these pointers in mind to ensure that you achieve your saving goals. Furthermore, never rely on your current account and open a savings account immediately, if you have not opened one already.

What are savings accounts? Its types and benefits

Having a savings account has become a necessity in life. There is not a single bank, which does not offer such accounts. Due to the skyrocketing costs of goods and commodities these days, it has become more important to save money for future needs and emergencies. However, before you open a savings account you will need to have a clear idea about it.

What is a savings account?
A savings account is a type of account in which you deposit money with the intention of accumulating it and saving it for future purposes and needs. These types of accounts are interest-bearing deposit accounts by nature i.e. banks provide a considerable amount of interest.

What are the different types of savings accounts?
Prior to opening a savings account, it is imperative that you know how many types of account are there. This will help you decide which type is best suited for you and your requirements.

1. Salary based- Normally, big companies, who need to distribute multiple salaries every month opt for salary-based savings accounts. On the day of salary disbursal, the respective bank withdraws money from the company’s account and distributes it among the employees’ salary accounts. Keep in mind that there is no minimum balance requirement in such cases.

2. Minors and children- You can also open a savings account for your minor children in order to inculcate the habit of savings from a young age. The minor’s legal guardian or parents will operate these accounts until the child turns 10 years old. After this, the concerned minor can be responsible for the savings account. Additionally, when he/she turns 18 years old, the account will become a regular saving account with a minimum balance requirement.


3. Regular savings- A regular savings account is just used for storing money. When it comes to regular savings accounts, withdrawals are not that common as the money is deposited with the intention of saving rather spending.

4. Senior citizens- As the name suggests, these savings accounts are best suited for senior citizens with certain functions and benefits. A senior citizen savings account works just like a regular savings account, but with extra banking privileges and higher interest rates.


5. Women savings- Such a type of savings account is made solely for women to operate, offering benefits such as a waiver on demat account charges, low-interest loans, and discounts of specific purchases.

What are the benefits of a savings account?

The benefits of a savings account are as follows-
• Most of the banks these days offer a few attached benefits with savings accounts such as covers for death and personal accidents
• If you are able to maintain a minimum quarterly balance, then you will be eligible for discounts on locker rental facilities
• Savings accounts at any nationalized banks are very safe in nature
• If you open a savings account, then you will also earn a considerable amount of interest. You will earn more interest and save more money the fewer withdrawals you make.

A savings account can go a long way in helping you save a substantial amount of money, for future. In case, you come across any unforeseen emergencies you can easily fall back on your savings account to help you through it.