Key factors to consider to get a great auto loan

In order to ensure a successful automobile purchase, you need to get several factors correct. They include the right car, a good price and funding the purchasing in the most affordable way. One way to finance your purchase, is through an auto loan. This loan will help you purchase a car that costs more than you can afford wit cash. But before you opt for this loan, you will need to consider these key factors. They include:

Managing your credit

Like for any other loan, this is the first factor you need to consider before applying for the auto loan. The credit determines whether your lender will approve you for the loan, or even the loan amount you want. Your credit history indicates your history of borrowing from other lenders. This also indicates how much you have borrowed before, and whether you have repaid those loans on time. A good credit score will gives you a high probability of a low interest rate, higher loan amount and appropriate loan tenure. Therefore, before you apply for the loan, you must review and check your credit reports. Fix any errors that have affected your score before you proceed to the next step.

Be aware of your potential to expend

You must get a clear idea of how much you can spend in terms of down payments and monthly payments before you even start looking at cars. If you have got your eye on a vehicle even before reviewing your potential expenditure, you may fall prey to the beauty of it, and forget the fact that it might be out of your budget. Additionally, some salespeople will also make it appear that your car is affordable with carefully calculated maths and payment strategies. You must also be aware of your down payment, as larger the down payment the smaller the loan, and the more flexibility you will enjoy later through your monthly payments.

Focus on the big picture

You need to be aware of how the auto loanas it will equip you with sufficient knowledge and details to make a smart if not sound decision. As a buyer, when you lose perspective, you will end up focusing on your monthly payment as compared to the purchase price and total cost. Several dealers encourage on this, as it can easily be adjusted by lengthening the loan tenure. But a long tenure would mean additional interest. You may even focus on a vehicle with certain features, which may not fit your finances. Make sure you’re buying a car that you can truly afford while avoiding taking on a loan that will haunt you.

What are the NRI banking accounts that you should be aware of?

Many Indians who have travelled abroad and settled down, still have ties back to members back in their home country. This also includes the exchange of funds when required or on a regular basis. While this can be done through specialised NRI banking systems such as the NRI bank accounts, there will always remain the fact that most NRI’s are not completely aware of the different features of these accounts.
But why is it crucial to select the right banking account? For one, each account has different features and different requirements. It also has different means of taxations, which can affect your investments. To ensure that you are well aware of the different features of the NRI accounts and the NRI banking, given below is a brief review of the different accounts:

NRE Account (Non-Resident External Account):

• Any NRI can open this account.  It can also be held as a single account, or a joint account with another NRI. When opening this account with another NRI, the account holder may add the name of the Resident Indian in the account, with an added clause. This clause allows the primary account holder to use the account, wherein which, upon his or her death, theanother joint account holder has the right to operate the account.
• An NRI can open this account, but it must be held in foreign currency. It can also be used to remit funds in INR from abroad. The funds in this account are fully repatriable to the destination country where the NRI resides. However, the value of the currency is subjected to exchange rates of the currency at the time of such transfer
• The withdrawals made from this account can be used to make local payments.
• The account may be opened under the categories of savings, current or fixed deposit.
• The interest that is earned in this account is exempted from income tax
• The account holder can also take a loan against this account, in the INR currency.


NRO Account (Non-Resident Ordinary Account):

• Any NRI can open this account. It can also be heldas a single account or a joint account with another NRI. Alternatively, a Resident Indian can be added to this account.
• The account must be held in INR currency. The funds can be used to remit funds from abroad. The limit amount of up to One Million US dollars or equivalent can be repatriated to the country where the NRI resides. The value of the currency is also subjected to exchange rates of the currency at the time of transfer of funds
• The withdrawal from this account can be used to make local payments.
• The account may be opened under the categories of savings, current or fixed deposit.
• The interest that is earned on this account is not exempted from income tax.
• The account holder can also take a loan against this account, in the INR currency.

What are the questions you need to ask before sending money to India?

According to recent studies, India is the number one destination which receives a lot of remittance from other countries. This is mainly an achievement driven by millions of NRI’s who have settled abroad and yet have strong ties back home.

While it may seem like a simple procedure to select a money transfer service and send funds back home, there are important factors you need to consider. Given blow are some answers to frequently asked questions that will help provide you with some clarity:

Is the service reliable?

While it may seem like sending money to India may seem like an expensive affair, there are plenty of money sending options that is cheap while providing a fast delivery. One way to find out if this is true, is by checking out the reviews. Do the claims really hold true for what they claim? If not, you can always contact the customer service of that institute and get a better clarification.

Will my funds be delivered on time?

At times, you would want to send funds to a destination urgently. This could be to avoid an impending deadline, or any medical emergency that required a large amount of finances. In this case, normal delivery services may not be your ideal option. However, certain express services will send funds to your destination within a short period of time, for a higher price. However, you must ensure that your money transfer service stick to the delivery time claimed.

Is the exchange rate good for me?

The funds you will be earning may be in foreign currency. When you make a money transfer in foreign funds, it will be converted into the local INR value. When this occurs, the value of the INR per the foreign currency will be taken into consideration. Therefore, when you are sending money to India you will need to be aware of the current conversion value before you make a transfer. Most money transfer companies usually display their daily exchange rate on their website. All you need to ensure is that, it will match the official forex rate for the day.

Will the service delivery the funds to my home town?

Most of the money transfer services have now evolved to such a stage where they send funds either to your account or right to your doorstep. However, in certain cases and in certain states, most institutes do not extending this service. You can check with the list of delivery points for the services you have selected. Alternatively, you can always send it to the local post office or a corresponding agent, where the receiver can collect from, once they conform their identity.

While there are plenty more factors you can consider, it is important that you are completely aware of the services and its offering. Once you have made your choice, you can select the delivery institute you want and make the transaction.

What is the ideal foreign currency account you can opt for when returning home?

No doubt, when returning back to India after spending considerable time abroad, will require plenty of adjustments. If you have inculcated plenty of assets abroad, what do you do about it? What about the NRI accounts which you have created? What about the termed deposits you have invested abroad?

In addition to this, you will also need to take into consideration the change in your resident status. Once your NRI status changes to resident, which occurs when you return back, it can change your NRI accounts, investment and assets. You also need to take into consideration the FEMA (Foreign Exchange Management Act) and the Income Tax Act which is different for residents and NRI’s.

While this may be a lot to take in, you don’t have to do much. You only need to convert your current accounts into a Resident Foreign currency account( RFC ). Even your termed deposits will get converted into this account. Given below are all the details you will need to know about this account and how you can benefit from it.

What is a Resident Foreign Currency Account?
The RFC account is nothing but a foreign currency account, that can be maintained by a resident. This account is best used for NRI’s who are returning back home to India.

Who can open RFC account?
Individuals who hold a NRI status, for a continuous period of not less than a year, and have become a resident in India as per the FEMA conditions can open the RFC account.

How is the funds in the RFC account held?

The funds in the RFC account can be held in selected convertible foreign currency. It can also be held in different forms of savings, current and term deposits account.


What are the benefits of a RFC account?

As an account holder of the RFC account, you will have the following benefits:
• Funds in this account can be freely utilized for any bona fide remittance outside India as compared to other traditional channels.
• The funds, especially the balance is fully repatriable. In this case, the principal and the interest are fully repatriable.
• The funds that are repatriable can be made in foreign currency. This eradicates the risk of conversion rates. The currencies that are freely convertible in the foreign currencies of USD, GBP, Euro, AUD and CAD. However, this depends on the banking institute that you have applied for.
• The funds in the account can be freely remitted abroad or credited to the fresh NRE/FCNR account, if you regain your non – resident status.
What are the eligible credits to the RFC account?

The following credits are eligible to be deposited in the RFC account:

• Proceeds from the sale of eligible assets outside India
• Funds transferred from any other RFC or NRI accounts
• Remittance of funds from bank accounts that qualify as eligible assets outside India.
• Pensions or other similar monetary income from employers outside India
• Incomes such as divide, interest, profit and rent.
• Interest earned on RFC account.

What are the money transfer services available today?

Transferring funds by cash, check or bank draft may seem like the way of the old ages. These methods may seem like a less popular option today, especially when there are faster and more convenient means to transfer funds between accounts or even countries. However, it does not mean that they are still not viable options.

But each of these choices have different features and benefits, which work for different situations. So can you opt for the right one that will provide you with the means to transfer money and satisfy your needs? Here are a few money transfer services you can take into consideration:

Bank account

A bank account is one of the best money transfer services that any individual can opt for. It is also one of the many options that help you with any type of fund transfer you want, especially if it is one of the simplest ones. This is also the best option if you want to send funds from the same financial institution, especially at the lowest price possible. Additionally, several banks offer money transfer services, that allows you make transfers from one institution to another as long as you have the required bank account. You can even contact the bank for any queries or any assistance.

E-Transfers

Some financial institutions will allow you to make a money transfer online to another individual in the same way, you would pay a bill online. Through this service, you will need an account number and bank routing number. For international accounts, you will need a SWIFT or IBAN number. At the same time, you will also require the account holder’s name as it appears on their account. This can be a convenient mean to transfer funds, especially if you need to make regular or monthly transfers. It is also one of the cheapest form of money transfers in the market.

Western Union

The Western Union is a popular choice for many individuals who want to make a money transfer in the safest and secured way. It will provide you with a similar service that will allow you to transfer money to a different state, country or city. Through this service, a flat rate will be charged for the transfer you will need to make, based on the urgency, location and the amount of funds you are sharing. However, one of the major benefits of these services is that they tend to be both highly dependable and convenient.

Mobile Apps

With more and more individuals using smartphones and relying on apps to manage their daily lives, it comes as no surprise multiple financial apps have been created to facilitate the means to make money transfers. While plenty of banks have designed and created their own apps, other NBFC have also created these financial apps to make these transfers.

Money 2 India: Common FAQ’s answered

The need to transfer funds will always be a requirement in today’s day and age. Given that the advancements in today’s technology and e – commerce market, you can now easily transfer funds from one location to another in a mere click of a button. Additionally, there are plenty of money transfer choices available in the market, each offering competitive rates, valuable features and specialised service.

Amongst the different money transfer services, the Money 2 India is one such service. Through this service, you can send funds back to India and track its progress. Given below are some of the FAQ’s associated with this money transfer service:

Is Money2India safe to use?

Like any other money transfer services, Money 2 India employs a range of state of the art security features, keeping all your transfers and transactions from being access from any outsider. Some of the protective features employed by this service include regularly updated firewalls and 128-bit secure socket layer ( SSL ). Through these features, unauthorised access is restricted while ensuring all information that is exchanged remains confidential.

What are the different currencies I can transfer funds in?

When transferring funds Money 2 India you can use the following currencies to transfer in:
• Canadian Dollar
• US Dollar
• Great Britain Pound
• Sweden Krona
• Switzerland’s Swiss Franc
• Singapore Dollar
• Hong Kong Dollar
• UAE Dirhams
• Australian Dollar

Do I need to sign up for an account to use Money2India services?

Yes, you would need to create a Money 2 India account in order to use its services. Once you use the account for the first time, your details will be saved securely in order to save time and provide you convenience anytime you would want to make a money transfer in the future. You can be well assured that this information will not be shared or made available to anyone else.

How can you start using this service?

You only need to register for this service at the respective bank or financial institute you would want to apply at. Once you log onto the website and register for the account, you will be needed to provide information pertaining to your personal details, contact details, and other security features. Once you have provided the required details as well as accepted the terms and conditions, you must await the successful registration for the service. Once it is successfully registered, you can start using this facility for your money transfers.


How will I get my User ID and Password for my login?

When registering for the Money 2 India, you will need to register with an existing email ID. This email ID will be your login ID. At the same time, you will be required to create a unique password when registering. In the event you forget your ID or password when logging in, you can always use the help link to assist you.

Shifting abroad? Opt for an NRO account right now

As an individual who is travelling abroad, there are plenty of factors you will need to take into consideration. For one, the financial investments you have made for yourself as well as your family will be needed to be taken into consideration. But while closing down your investment schemes and the accounts may seem like a viable option, you can always convert your current account into an NRI account, which is namely the NRO account.

This account offers NRI’s the means to invest their income earnings such as the rent, pension, dividends and other selected forms of income, while settled abroad. The account holder can also transfer foreign currency into this account, which can be converted into the local INR currency when required. While this account has several other benefits and other constrictions that you should be aware of. Given below are some of the features you need to be aware of when opening this loan:

Purpose of the account:

As mentioned previously, the NRO account serves the purpose of allowing the account holder to accumulate and maintain a regular flow of income from India.

Account Holding

With this account, a joint account can be held, by both NRIs. In this account, the co – account holder can also be a resident Indian.

Income Deposit and taxation:

Theseare the main factors of anNRO account you need to be aware of. If you are a non-resident Indian and wish to save or operate money that is sourced from incomes generated within India, then you should opt for this account.Incomes generated from India such as the proceeds from the sale of property, rental income, interest earned on other deposits in India; dividend earned from stocks will need to be deposited in this account. However, in this account, all funds are taxable.

Currency Option for Fund Deposit:

One of the main differences between the NRO account and the other account is the currency option for the deposit. With this account, you can deposit both the foreign funds as well as INR funds. However, it will be held in the INR value in the account

Repatriation of Funds:

Unlike the other accounts, the NRO account has several restrictions when it comes to the repatriation of funds. For one, the account holder can repatriate only an amount of 1million USD during a single financial year.

Tax Imposition:

As compared to the other NRI accounts, the NRO account has tax impositions, which affects the income earned in the account. With this account, not only is the income taxed, but also the interest earned in the account. Taxes such as the income tax, wealth tax, gift tax, etc., are applicable tothis account. However, account holders do have a reduced tax benefit, which can be availed under the Double Taxation Avoidance Agreement (DTAA).