Questions you need to answer before applying for a persona loan

When there is a financial requirement, and you are not in a position to borrow funds from your peers or family, you can always opt for a loan. The personal loan has always been an ideal choice for individuals who are seeking financial aid in the form of the loan. Not only does it require no security to be provided, but it also requires minimum documents to be provided.

However, as easy it can be to acquire this loan, there are certain questions you must first answer yourself before beginning the application process. These questions ensure that you have a clear understanding of your requirements as well as to be aware of how much funds you are eligible for. These questions include the following:

Q1. Is it necessary to spend or purchase now?

You find that the LCD TV you’ve always wanted is suddenly on sale or even the vacation trip you’ve been eyeing for a long time is suddenly available to you at a discounted price. This perfect opportunity is only available now, and only needs an amount which you can afford through a personal loan. At this stage, you may be compelled to purchase a product or a service, but it may not be necessary. Such requirements may be under the category of luxurious spending. However, if you do require urgent funds for situations such as medical emergencies, then it is best to opt for this loan. Therefore, before you opt for this loan, consider your requirement and its level of urgency and priority before opting for it.

Q2. Can I afford the loan EMI?

This is one of the crucial questions that demands an honest answer. For if you are unsure of the response, you must wait till you are truly confident of it. Personal loans may be easily accessible. However, they demand a stringent repayment schedule. Additionally, you will also need to pay off high-interest rates with this loan. If you have the means and the income to repay the borrowed funds during the tenure, then you can proceed with this loan.

Q3. When is the ideal time to take on a personal loan?

When taking the responsibility of a loan, you need to consider different factors. Do you have a steady income? Do you have a steady job? What is your debt income ratio? How many individuals in your home are dependent on you? Is the loan that I need a small one or a large one? When you answer these questions, you will get an idea of whether you can afford your personal at any time.

Q4. What do I need to do if I can’t pay back the loan?

As a precaution, you would need to consider your future requirements before applying for any loan. But at times, you may not be prepared for all eventualities. If such an event affects your ability to pay EMI’s, you will need to require a backup plan. For one, you will need to access a source of funds that will help repay back the funds. Alternatively, you can approach your lender to review the terms of the loan in order to provide an alternative way to repay the borrowed funds.

PayZapp: What are the benefits of this app?

With the digital world slowly becoming integrated into our daily lives, it comes as no surprise that plenty of apps have been designed to provide a means and convenience to manage daily activities. Amongst the various launched and established apps, comes the PayZapp app.

The PayZapp app, launched by one of the largest financial card issues in the country, has gone one step ahead, by creating a virtual relationship manager through this mobile application. This app is designed to store all your banking card details in a dematerialized form, thereby allowing the account holder to use them for electronic payments. Under this app, the account holder can use a scan and pay option or even the mobile phone’s capability to tap and pay for purchase at the point of sale terminal. The account holder can also send funds to any peers through the app by using the IMPS platform.

Apart from these benefits, there are plenty that is offered by this app. They include the following:

Incentive programs: Plenty of apps have integrated loyalty-based incentive programs that motivate mobiles users to either refer the app to others or increase the utility of the app. Instead of having users inputting their card details every time they need to make a purchase or refer to someone, the information is already stored on the application. At the same time, businesses or merchant outlets that use technology to link several payments to points or other loyalty programs, while adding value to the customers. This encourages the customer to return, which increases the revenue. 

Ability to offer banking card payments: Plenty of individuals are opting for card payments over physical cash payments. However, not many business and merchant outlets are equipped to accept banking card payments. Not only would this affect the business, but customers would also be at a disadvantage. However, businesses are becoming more technologically economic and integrating mobile payment programs, in their system. Therefore, it allows business to charge customers through this app, which will benefit both the customer as well as the business.

Multiple banks can be used through this app: One of the main benefits of this account is that it can be used for other bank details too. Although primarily it was designed only for one bank, it can now be accessed by applicants who use other banks. This makes it easier for applicants to use multiple facilities and features which may or may not be provided by their bank. Take, for example; the bank may not offer cashback facilities through the card alone. But through the PayZapp app, you can get a small amount of funds as cashback.

How to plan your child’s financial future with a recurring deposit

Today, every individual is slowly becoming financially aware. Plenty of these individuals, especially parents are prioritizing financial planning for their whole family, especially when it comes to their children. But with so many financial options to consider, what are the best options that will not only provide the parents with the convenience to manage the funds but also the flexibility for their children to access the funds at the right time?

This is when the recurring deposit will make the ideal option. This termed deposit functions in such a manner where it allows the account holder to deposit a fixed amount of funds on a monthly basis until the tenure is met. Once the tenure is completed, the interest will be deposited along the recurring amount that has been invested. The invested amount can be anywhere as a much as Rs. 100 to Rs. 10,000 depending on the institute you are applying to. Additionally, you can even use the RD calculator to get the required amount that you would need to invest, and even the outcome that will come out of it. So how can you use this account to benefit you and your child?

• Fix a goal

As you grow older, you will notice that your financial requirements will increase over time. For one, you will need to set aside funds to run the house. Or you may also need additional funds to plan for a family event such as a birthday or a wedding. What better way to spend for such events, than by saving for it right from the begging? For such a requirement, you can open a recurring deposit for this purpose alone. Additionally, you can open several recurring accounts with different rates and tenures to match different financial goals. You can even use the RD calculator to calculate the ideal amount and interest you would want for this purpose alone.

• Fix a tenure

Like the financial goal, you can fix the tenure of the recurring deposit. The tenure of the recurring deposit can be a minimum of 6 months to a maximum period of 10 years. Once this tenure is met, you can either reinvest the amount in another account or renew the tenure for the same or different tenure. Fixing the tenure allows you to also fix the interest rate of your investment. Longer the tenure of the period, higher will be the interest rate. Since the interest will also be deposited at the time of maturity, you can use the extra funds in the same account.

• Fix a nominee
As a part of one of the functions of this account, the account holder is allowed to select a nominee. You can open an account under your name, along with your child’s under the minor category. Once the child reaches the required major age, the account holder can transfer the account to the child’s name, or make it the primary holder of the account. This allows the child to use funds as per one’s requirement, while also allowing them to maintain the account for a long term purpose.

All about NRI Banking

What Exactly Is NRI Account?

As the name suggests, Non-Resident Indian, an NRI account is basically a person that has an account in an Indian bank but is not an Indian resident. An NRI banking account is offered by a number of banks. It is a great option for all your banking needs. In fact, it is a handy tool.

Banks offers various NRI banking options. Various products and services are provided that help in your NRI banking. There are a number of benefits associated with NRI banking. Some of them includes:

• Convenient banking solution – One of the significant advantage related to NRI banking is that it offers access to the banking system completely depending on the foreign and local needs. Furthermore, you can rely on it for quick financial transfer and even currency exchange.

• Time-saving – Another benefit offered by NRI banking is that it offers quick and easy access to the funds. This further ensures that you do not have to ring your Indian friend for any financial needs.

• Interest rate – You should also know that NRI banking accounts also offer an ability to compare the interest rates. It also provides an excellent earning potential between both abroad and home. 

Types of NRI Accounts

There are two major types of NRI banking accounts such as:

• Non-Resident External Account (NRE) – This type of account is defined when you deposit foreign currency while opening your account in an NRE account.

• Non-Resident Ordinary Rupee (NRO) – This type of account is called when an Indian who is going abroad with the intention of becoming an NRI.
What to Consider When Opening an NRI Account?

Following are the steps one need to consider when opening an NRI banking account:

• Choosing a bank – This is one of the major and the first step towards opening your NRI account. With so many banks offering this option it is wise to make a right choice. Choose the bank that meets your banking needs and requirements. One major aspect you need to keep in mind is to know whether the bank is authorized by the Reserve Bank of India (RBI).

• Account type – Now that you know there are two major NRI account types, choose the one wisely. Keep all your aspects in mind when making a choice.

• Online and offline banking experience – You will find banks offer both online as well as offline NRI banking solution. Ensure you apply for online banking too as it is convenient and hassle-free.

You will have a lot of people calling to open an NRI making. Stay away from these people as they might be fraudsters too. One of the best ways to open your account by visiting the bank. No matter which foreign place you reside in, the NRI banking solutions ensure you have economic links forever.

What should you do when you transfer money to the wrong account?

Transferring fund from one location to another requires careful consideration. This is no different for those sending money to India. But there will come a time, where there is a chance of sending funds to the wrong account. This can occur due to human error, discrepancies in the account number, IFSC code or both, or even a technical glitch from the banking institutes end. In this case, the most important thing to remember is that if a transaction has been made, it cannot be reversed without approval from the beneficiary.

When this occurs, surely you would not want to run around from pillar to post to get the transaction reversed. So what do in when this occurs? Here are the steps you need to take:

Take a quick action

The first step you need to take is to inform the bank or the bank manager as soon as the transaction has been made. In the occasion you have entered a bank account that does not exist, the funds will automatically be returned to the account. However, if the account number you have entered exists, then you must contact your bank manager. You must then provide relevant evidence that you transferred your funds to the wrong beneficiary’s account. If the unintended beneficiary and the intended beneficiary share the same name, you will need to prove the transfer itself was wrong, even before the bank could provide assistance. The action that bank will consecutively take will also depend on the type of bank account you have sent to. If the unintended bank is of the same bank, the bank will act as an intermediary to transfer the funds back to the original account or reverse the transaction. However, if the beneficiary is of another bank, then you would be required to approach the bank and meet the manager to get the ideal solution. During this process, ensure that you detail all the steps and process you have undertaken. Emailing the details to the respective parties is one way to keep yourself and everyone in the loop.


What if the wrong beneficiary refuses to return the funds?
If you are sending money to India to an account, where the account holder refuses to send funds back home, here are a few steps you can follow:

• The first thing you must remember is that you cannot take back the funds without the consent of the wrong beneficiary. In this case, the beneficiary must accept that the transaction made was a mistake.
• In this case, you must contact your bank immediately and ensure that they are aware of the update.
• Keep track of your complaint
• You can then seek legal help to gain back the funds if required. This will be a complicated process, especially for international transfers.

The best way to avoid such a situation is to be aware of all the data you are inputting before you make the transfer. Additionally, always cross check all the details before going ahead with the transaction. After all, it is your hard earned funds.

RFC: the ideal financial solution for returning Indians

As Indians who are traveling back home permanently, considerable planning would be required to be undertaken. This is no different for the financial investments one has made. But instead of transferring all the funds to the local account, you can convert the account into a resident foreign currency account, also known as RFC. This foreign currency account is ideally the best choice for NRI’s who want to park their foreign funds in India while availing its advantages on returning home.

Given below are the attributes which are specific to this foreign currency account and how it can benefit a returning NRI:

Who is eligible to open the account?

Banks and financial institute’s only offer this account if they satisfy certain eligibility criteria. They include:

• Any resident Indian can open this foreign currency account in any freely convertible foreign currency.
• Returning NRI individuals who have stayed abroad for a continuous period of a one year or more.

What are the different foreign currencies that can be maintained in the RFC account?

As previously mentioned, the RFC account can be open in any freely convertible foreign currency. They include currencies such as the Australian dollar, Canadian dollar, Euro, Great Britain Pound, Japan Yen and the US dollar amongst many others.

What kind of funds can be deposited in this account?

Funds from selected sources could have been deposited in this account. They include:

• Any funds retained in any foreign bank account, in the local foreign currency.
• Any funds that are earned through business or employment abroad. This can also include income earned through interest or dividends.
• Any funds received in the form of superannuation or pension received from a foreign employer.
• Foreign exchange funds that have been received from the sale of assets such as shares, bank accounts, immovable property or any other form of investments held by individuals outside India.

What is the range of interest rates that can be expected in the RFC account?

The RFC account can be held in different forms. Depending on the different forms the interest rate will differ. It also depends on the tenure as well as the currency. This account can be held in:
• term deposits
• current accounts
• saving accounts

What are the tax implications credited in the RFC account?

As per the Income Tax Act, Section 10(15)(iv)(fa) of the Income Tax Act,the interest earned on foreign currency deposits in any Indian Banks is exempted for non-residents and Resident but not Ordinarily Resident. Most returning NRI’s are considered as RNOR’s till their status is changed to resident.

What is Money2India?

There are plenty of services that allow you to send funds from different countries to your home country in India. Amongst these various options available in the financial market, the online money transfer service is one of the most popular services.

Plenty of banks are offering this service, through the transfer platform known as the Money2India. As the name suggests, it specializes in offering online transfer services from several yet selected countries abroad to India. As compared to the other online services, this platform has plenty of benefits and other additional services, which have been mentioned below.

How can you send money overseas with Money2India?

Plenty of banks within India possess this platform, which allows you to connect from one bank to another. Thus, you can easily send funds overseas, by using this Money2India platform, to over 100 Indian banks. The first step you need to take is to open an account, by filling a registration form and providing:
• Details of your resident country
• Details pertaining your identity
• Contact details

How can you send money to India through this platform?

There are two methods wherein you can send your funds back home. They include:

• Express online transfer: This service is normally offered to selected users. You can use this service to transfer funds to the account within the same bank, or to another bank. However, the time take for each service will be different. You will also have additional benefits depending on the amount of funds you are sending. For example, if you send more than 50, 000 INR you can get a transfer free service. However, any amount less than that will attract a small amount of transfer fee. To opt for this kind of transfer, you will need to log into your account and select the relevant option. You will also need to fill in the relevant details of the recipient and enter the details of the funds you would want to send. Once the transfer has been made, you can review the details of your transfer and send your funds. You will also be given a tracking number that will allow you to monitor the progress of your transaction as per your convenience.

• Normal online transfer: The e – transfer offer is nothing but an automated clearing house transfer option that provides a guaranteed transfer. Normally, it offers the same fee structure as the previous option wherein you will need to log into your account, and provide bank account details of the sender and receiver. The platform will then initiate small transactions from the sender’s account in order to verify your details. Once this process has been completed, you will be provided with details of your transactions.