Bike Loan – Travel smart and save time

As a professional, the saying ‘time is money’, could not be any truer. Our professional and lifestyle has been created in such a manner where every minute has been utilized to its full potential. Whether it is used to earn more money, or even to look out for other opportunities to further your venture or even catch up on some ‘me’ time, each second counts.

But when you are caught in unnecessary traffic, you spend hour’s just wasting away, waiting for the vehicle in front of you to go ahead. What would have taken a half an hour drive back home, takes you forty five minutes more. That is plenty of opportunities if not time, that is wasted away.

But while there are not many means to avoid traffic during peak hours, there is one way you can go through it. One way you can do so, is by traveling by a two wheeler. Most two wheelers are designed to provide a good mileage and the means to travel through narrow and tight gaps, such as the ones you will find in traffic.

So how can you purchase a two wheeler? One way to do so, is through a bike loan. Most banking and financial institutes provide this loan, making it easier to purchase a two wheeler in a short time. Here is all you need to know about the two wheeler loan and how it can benefit you.

Quick loan processing:

One of the main benefits of a bike loan is that, it has a short loan processing tenure. As a part of the loan processing, the documents that you provide will need to be verified. Additionally, the documents pertaining to the collateral, as in this case, the bike itself, will need to be verified. If you are getting a two wheeler from a bank or financial institute that is tied up to a dealership, the document processing will also take a shorter time.

Economically beneficial in the long run

When it comes to purchasing bike or any vehicle, there are financial factors you need to consider. For one, you need to take into consideration the fuel expenses, the scheduled servicing, and the insurance amongst many others. While independently, these factors may be expensive. However, under the schemes provided with the bike loan these factors are covered. Additionally, when taking a loan from a dealer, you can get additional benefits, which in the long turn can work financially in your favor.

Financially viable

When it comes to purchasing a bike or any other vehicle, you will require a large number of funds to facilitate this purchase. However, while you may have the means and facility to save funds to facilitate this purchase, you also have to face the probability that a financial emergency may arise during some course of time, which will require to utilize these saved funds. But with a bike loan, you can get the borrowed funds to make the purchase, and yet have the means to repay back the borrowed funds without causing any financial distress.

What are the available loan options for an emergency financial fund?

You’re planning your son’s marriage when you suddenly realise you don’t have sufficient funds to cover it. You’ve also realised that need to pay the premium for your insurance. Your fellow family members, who have already pitched in financially, do not have additional funds to assist you. In this case, what do you do?

For one, you can opt for a loan. Through a loan, you can opt for financial funds that will not only cover your current financial requirement but also provide you with additional funds to satisfy any unforeseen financial requirements. At the same time, you will also have a flexible repayment tenure that will allow you to pay back the borrowed funds and interest rate with ease. But to satisfy such a criteria, you have two loan options you can consider, namely the loan against property and the personal loan. Here are the differences with between the two loans and how it can work in your favour:

Processing time:

For any emergency financial situation, the first factor you need to consider is the processing time. Each loan has a different processing time, as both loans come under different categories. For example, the personal loan comes under the category of unsecured loans, wherein which, no collateral is provided. Therefore, the processing time will be short. However, with the loan against property, the processing time will be a bit longer as the lender will need to consider the collateral provided through this secured loan.

Loan amount:

Depending on your requirement, you can always opt for a loan amount that will suit your needs. Through the personal loan, you can always apply for a loan amount that is high. However, with the loan against property, you can only opt for a loan amount that is fixed to the value of the property. In other words, you are eligible to get only 70 to 80% of the value of the property. However, the lender will have the last word on how much funds you are eligible for depending on your financial profile. So this is one factor you must take into consideration.

Loan tenure:

Loan tenures differ based on the loan category one is applying for. For the personal loan, the loan tenure can last anywhere between 5 to 10 years. For a loan against property, the loan tenure can be anywhere over 15 to 20 years. While a loan tenure may bring down your EMI’s, it also increases your affordability for big-ticket loans. However, long tenures would also increase your interest payout.

Interest rate:

When applying for any loan, the interest rate is one factor you need to take into consideration. For one, it determines how much additional funds you will need to pay along with the borrowed funds. In secured loans, such as the loan against property, the interest rate is normally as low as 11 to 15 %. However, in an unsecured loan such as the personal loan, the interest rate is as high as 24 %.No matter the differences in each loan, you must consider all the available factors to know what you are eligible for, and whether it can satisfy all your emergency financial requirements.

Gold Loan – Unlocking funds for any financial emergency

You’ve suddenly realized that you need extra funds to furnish you newly purchased home or use extra funds to finance your own start – up. But while you may have exhausted all other financial options, there is always the gold loan you can opt for.

For most Indian’s this loan is one of the most viable options, for one reason. Indian cultural beliefs consider gold as one of the gifts that must be passed on from one generation to another. Even auspicious and special events call for the purchase of gold items and jewelry, which is then further passed on to their respective generations. In such cases, the gold itself can be used as a collateral, for a small amount of funds, whenever required.

So if you need any emergency funds, how can a gold loan work in your favor? Here is how:

Short processing time:

One of the main benefits of the gold loan is the short processing time. Since the gold loan comes under the category of secured loans, the provided collateral would be required to be verified. As compared to other secured loans, the gold collateral is easier to verify. Most gold lenders have been equipped with experts who have the experience and qualifications to verify the value of gold in a short period of time. Once the verification process is done, the lender will provide the appropriate loan value rate. Therefore, you need not wait for a long time for your loan to be verified.

Loan to value rate

Different lenders will have different values. However, as compared to other secured loans, the loan to value ratio for gold loan is considerably higher. For one, the range of gold loan values lays between 65 to 85 %. In addition to this, the value of the gold will also differ on several components, such as the current value of gold in the market, exclusion of making charges, the weight of the precious stones embedded in jewelry or even the hallmarked gold items.

Affordable interest rates

Interest rate for gold loans vary across banks and NBFCs. In most cases, the level of interest rate will depend on the tenor, the loan amount, LTV and of course the base lending rate. However, in order to compensate for the high risk associated with lending funds, the interest rate is normally charged at a level appropriate to the borrower’s profile. In most cases, the interest rate for gold loan lays between 9 to 11 %, which compared to other secured loans is considerably lower.

Tenure of a loan

The tenure of the loan primarily plays an important role in determining the EMI’s of the loan. Therefore, the longer the loan, the less EMI’s you will need to pay. However, at the same time, you will end up paying more of the interest rate. For a gold loan, the tenure is not more than a year, making it one of the most affordable loans for any individual.

What are the advantages of having a forex card?

Travelling abroad offers plenty of opportunities. For one, there are plenty of employment and career options. Additionally, if you are looking for short term visits, you can always tour different locations around the world.

But no matter the reason for your travel, there are plenty of factors you need to consider when travelling abroad. For one, you will first need to consider your financial requirements. Not only are you restricted to carry a limited amount of funds abroad, you will also need to take precautionary steps to protect the funds you have. Additionally, if you exhaust your funds during that period, you will need to access additional funds.

Keeping these factors in mind, what are different options you can consider when it comes to taking funds abroad? For one, the forex card is one option. This card, is a form of prepaid banking card that allows you to store foreign currency. When you travel abroad, you can use this card to make purchases, transactions or satisfy any other financial requirements. Apart from this, there plenty of other advantages you can take through this card. They include:

Transaction 24/7:

One of the main advantages of this prepaid banking card is that it can be used anytime around the clock. Therefore, if you need to make a transaction at a merchant outlet during the day, you can use the card. If you urgently need to pay a bill when studying or working abroad, you can use this card for any of your transactions. Thus, the forex card will provide you with sufficient financial protection anytime, a financial emergency arises.

Low conversion rates

One of the main features of the card, as well as advantage to its user is the ability to use foreign currency at a low conversion rate. When you load this card, you load it in a currency value at the time it is being loaded. Therefore, when you use the card anytime in the future, the currency conversion value will be locked on the card. In this way, you can save funds on currency conversion in the long run, especially if the financial market works in your favour.

Multi – currency

Another feature of the card you can use to your advantage is the multi – currency feature on the card. Most card lenders offer such a card, which can be used in multiple countries and in their local currency. This not only helps you save funds in the long run, but also allows you the financial flexibility which is not offered by other types of banking cards. Therefore, while you have access to common international currencies such as Australian Dollars, Euro, Japanese Yen and the USD, you can also have access to other rare foreign currencies such as South African Rand, Sweden Kronor, Saudi Arabia Riyals and New Zealand Dollars amongst many others. However, you will need to check with your card lender to know more.

Demat account: A beginner’s guide to all you need to know

Over the last few decades, the stock market segment has progressed to great heights, allowing investors the opportunity to invest small amounts and get good returns. In keeping with this progress, the stock market segment is now progressing to a digital platform, allowing potential investors to easily access their shares and equity, with a quick turnaround, and even updated news regarding the market deals.

As a first step into stock market trading and transactions, there will be a requirement to first open a demat account. It functions similarly to a bank passbook. Using this account, you can easily purchase or sell shares of different stocks, which can only be done through the account. When you make a purchase or sell, the stock is converted from a paper form into an electronic form, known as dematerialization. The reversion of the process is known as rematerialization.

How to open a demat account

In order to open a demat account you must follow these steps:

• You must first approach a depository participant ( DP ). The function of the DP is to act as the intermediary between the investor and the depository.Ensure it is registered with the National Securities Depository Ltd. (NSDL) andthe Central Depository Services Ltd. (CSDL).
• The manager from the DP will provide you with an application form that will need to be filled and deposited back to them. You will need to provide certain mandatory documents, such as identity and address proof. You will also need to provide an original PAN card during the process of account opening.
• Once the documentation is processed, your DP will provide you with a unique account number, also known as the demat account number. You will also be provided with a unique log in ID as well as password. This allows you to access the account anytime you need to make a transaction.
Once this process is done, the DP who also functions as a stock broking firm, bank or even a sub – broker will demand a minimum cheque in your name. This is a normal protocol which allows you to begin purchasing shares.  In this case, the DP will purchase dematerialized shares in your name and save them into your account. You will also be charged a minimum broking charge for this transaction.

What are the advantages of trading through a Demat account?

Through the demat account, you will have access to:

• High security in transactions
• Timely delivery of shares
• Reduction in the probability of fraudulent transactions
• Trading in huge volumes
• The cost per transaction is comparatively lower to physical trading, due to the reduction of the costs associated with paper usage or stamp duty.
• Mobility and ease of working from any location
• Investing in IPO’s, ETF’s of gold

Why should you ditch your car for two wheeler today?

Traveling all over the place will offer you plenty of benefits. No doubt, you will have the luxury and comfort to travel from one destination to another in comfort. That is until you get stuck in traffic. Not to mention the large bill you will need to pay a month on month for fuel, maintenance, and insurance.  Very soon, a two-wheeler will look more of a favorable option as compared to a four wheeler. So why should you ditch your car today? Here are reasons why:

Easy to divert through traffic

One of the main benefits of a two wheeler is the ability to maneuver through traffic. Major cities that possess a high level of professional industries will have regular traffic congestions, especially during certain hours of the day. Highways, flyovers and even expressways are normally filled with traffic, especially during peak hours. While you may not be able to avoid it all the time, the best way to go through it and still be punctual is by opting for a two wheeler. Two wheelers are designed in such a manner where it is easier to maneuver through traffic with ease. Additionally, it is equipped with quick speed, so traveling will not take much time.

Affordable

A two wheeler is not only about traveling through traffic, but it also offers a good affordability. In other words, even a common man can afford a two-wheeler, if he has a steady income and a steady for at least the next few years if not months. Most two-wheelers come in a range of 1 lakh to 5 lakhs depending on the company and model you are buying. Additionally, you can purchase your two-wheeler with the help of a two wheeler loan. In most cases, the loan lender will have tie-ups with certain outlets, wherein which, a purchase from this outlet, will provide you with plenty of other benefits such as discounted insurance, free 1-year service and even deals on add – on.

Economically viable in the long run

While purchasing this vehicle with a two wheeler loan and using it may seem easy, there is also the responsibility to maintain the bike on a long term basis. This means, you will need to ensure that it is regularly serviced, insurance must be renewed in time, pay for replacements parts when needed, while also keeping in mind the regular expenditures such as fuel. While the same factors apply to a four wheeler, it is often more expensive as compared to two wheeler. Additionally, if you are using a two wheeler for a single individual, it is easier for a single earner to maintain it.

Apart from these reasons, there are plenty more. However,in the end, it depends on your decision to purchase the bike and maintain it.

Strategies to pay off your education loan

Getting a higher education is one way to ensure that you get better prospects in your professional life. However, higher education degrees come at a high price, which may be within your means, but at the same time, not in your current capacity. In other words, you may need to an education loan to sponsor your education, which you can repay back later.
However, this loan may be a means of borrowed funds, but it is also a debt that you will need to repay at some point in life. Any delay in this repayment will affect your other loan applications and your current credit score. The best way to ensure that your future financial profile is not affected, there are certain strategies you can incorporate that will help pay off your borrowed student loan with ease. They include the given:

Pay off your current debts

Paying off your current debts will help you focus on your primary debt, which is the education loan and the added interest rate. There are two methods through which it can be done. One method is the snowball method. Through this method, borrowers can pay off any previous debts will small balances first. At the same time, you can pay a minimum requirement on the rest of the other debts. The other method is the debt – avalanche method, which includes the means to pay off accounts with high-interest debts while paying off the minimum on the rest of the debts. Depending on your requirements, you can opt for the ideal strategy that will suit your needs.

Calculate the daily interest to stay aware

Being aware goes a long way to understanding the progress of your education loan repayment and what changes would be required in the process. No doubt, seeing a debt that will take ten years to repay with an additional interest to pay will seem discouraging in the long run. But as times goes by, the progress and reduction in your debt will help keep you motivated until the end, to get out of your debt. This will also help you stay focus on your goal to get rid of your debt as quickly as possible.

Get a side income

Earning one income will seem troublesome. But earning additional income will seem like an added burden. But if it goes a long way to repaying your education loan faster, it will work for your benefit. At the same time, you can live on a budget which is as minimum as possible for you so that any excess expenditure will be eradicated allowing you to have sufficient funds for repayment.

Make multiple payments throughout the month

Another effective way to pay off a loan is to opt for multiple payments over a single payment, within the month. For example, instead of paying one single payment in the month, you can opt for biweekly payments. This allows you to divert any spare funds to debt payment, without risking it being used for other expenditures.