Are you aware of these factors when purchasing a car insurance?

When it comes to purchasing car insurance, plenty of questions will arise. How much do you need, what do you need and how to decipher the jargon? In reality, purchasing a car insurance isn’t hard. All you need to understand is the lingo, know your rights and get the right coverage. The bottom line is, being informed will save your funds.

So if you are looking to purchase an auto insurance for the first time, or go shopping around for a new rate, you will need to be aware of these facts:

The way you use the car determines your car insurance rate:

Will you be using your car to commute on a daily basis or only on weekends? Will you also be using it for side money to drive for Uber? All these factors determine your insurance rates. So when you are shopping for this insurance, ensure the company known how well you use the car. This is because there is a considerable difference between personal use and business use. Your personal policy may not cover business use, especially if something were to happen to your vehicle while on the job. If you are agreeing to purchase a policy, be sure to clarify these points with your agent before agreeing to it. If you must, opt for an additional policy or supplemental coverage.

Be aware of the coverages that come under the insurance

There are plenty of coverages that can be included as a part of the auto insurance policy. In India, there are primarily three types of car insurance. It includes third party liability coverage, collision coverage and comprehensive coverage. Third party liability coverage will provide cover against legal liability to a third party cause when you were at fault. This is legally mandatory under India regulations. Collision coverage protects the insured financially against the damage of their own car. This does not include theft or vandalism. Comprehensive coverage is an extensive cover that includes damage to the car, theft of a vehicle, third party legal liability and personal accident cover. This coverage can further extend by opting for selected add - on. Each type of coverage will have its own cost associated with it. You will need to talk to your insurance agent to help you determine which coverage suits your needs and your budget.

Know your deductibles

As a part of the automobile insurance, you will need to pay a certain part as deductibles. The deductible is the amount you are contractually obligated to pay towards the cost of repairs, injuries and damages that are incurred as a part of a crash. The amount of a deductible is determined by the monthly cost of your auto insurance policy. In other words, if you pay a higher deductible, you will most likely need to pay a lower monthly insurance payment in the event of a collision. This is normally a part of the collision and comprehensive coverage.

What are the factors you need to consider when sending funds?

What was once a means to ensure survival and stability, has now transformed into an industry of its own. Previously, individuals who have travelled or settled abroad have always looked for options and means to send funds home, in the most quickest and convenient manner.

Today, the money transfer services have evolved, to offer more than just a convenience and fast service. They have also offered the means to track your transfer, get real time updates about your transfer and even opt for the means of delivering or receiving the funds. Additionally, money transfer services have gone beyond its primary function, which is namely money transfer. Now you can even transfer funds to purchase goods, to sell products, to donate funds to a charity or organization amongst many others.

But while there are plenty of services you can opt for, the fact remains that you will need to consider certain factors when opting to send money from any destination and for any purpose. The following factors you need to consider when opting for the best way to send money to India:

Time of the transaction
You may have heard how the financial market’s volatile conditions have affected monetary rates. This is no different for money transfer services. When sending funds from one country to another, the one factor that is taken into consideration is the currency conversion value. Therefore, when you are sending funds, you will need to take into consideration the time of transfer, as the currency conversion value will be locked in at that time. Additionally, you will also need to take into consideration the season when you are making a money transfer. Certain seasons before festival and auspicious times will have a higher demand of money transfers. Therefore, the charges for the money transfer will also increase during this time. 

Location of the transaction
Most of the money transfer institutes do offer global coverage. However, these global coverages will also have certain restrictions pertaining to the limitations of their own services. For example, an institute would have the means to make a money transfer from their own branch in the rural areas, but not to another institute. Additionally, while such institutes would offer the best way to send money to India to a rural area, they might charge an extra fee for locations outside their coverage. Therefore, you will need to consider the location from where you would be transferring or sending funds before opting to send money.

Customer Service
What happens when you want to know more about a particular transfer scheme but don’t know where to get the information from? What if you have queries about the rates of the transfer service, but don’t know who to contact? What if you need to know what steps to take before you make a transfer? Plenty of individuals have such queries but insufficient information on websites or other sources may not provide a satisfactory answer. This is where the customer service arises. Do check if the institute has a customer service, so that if you need any queries answered, you have the ideal source to contact.

EMI calculators: An essential tool to support the golden rules for loan borrowing

"In an ideal world, every individual would have sufficient funds for every needs. However, this cannot be said for the same in reality. In this reality, we would need to borrow funds to meet our goals, whether real or imagined. And with so many banks and financial institutes offering a wide range of options along with low rates, quick disbursals an easy processes, you may be become overwhelmed with the significance of it.

While the financial market and its conditions may change over time, the way loans are being disbursed and its prudent borrowing will remain unchanged for a long time. Any by following the golden rules of borrowing, you will get, only the best ideas possible. To assist you in this process, we provide you with the EMI calculator, and how it can assist you.

Don’t borrow more than you can repay:

The first rule you need to remember is live within your means. When taking on a loan, you must take one that is easy to repay. Certain statistics indicate that certain loans should not exceed certain percentage of your income. For example, the car EMI’s should not exceed 15% of your income. Similarly, a personal loan should not exceed 10% of your net monthly income. If your EMI’s consume a large sum of your income, it will impact other critical financial goals. To keep these percentages in check, you can always use the EMI calculator to calculate the ideal amount you need as EMIs for any loans, while protecting your income.

Keep your tenure as short as possible

May individuals are tempted to opt for long loan tenures when borrowing as they offer the convenience to repay the borrowed funds with ease. However, with long tenures, you will end up paying for larger EMI’s. Therefore, it is best if you take a loan for the shortest tenure you can afford. So how can you calculate the right loan tenure with the right outcome? By using the EMI calculator you can calculate the ideal outcome that will suit your need. If needed, you can adjust the loan tenure to suit your need when required. However, you must ensure you pay your EMIs regularly and in in a timely manner.

Avoid borrowing to splurge or invest

As far as possible, avoid borrowing funds to re – invest. Even if you take a loan against ultra-safe investments such a fixed deposits or bonds, the interest earned through these options may not match the interest you will pay on your loan. Alternatively, investments such as equities are too volatile. If you need to take a loan, take a loan to build an asset. But always use the EMI calculator to know much loan rates are applicable to you before proceeding with the loan application.

Important features to remember when sending money online

Money transfer has progressively risen over the last few decades. Previously, it was used a means for migrants to send money back home. Today, it is it used for various purposes, such as making online purchases, transferring funds for donations, and other similar financial transactions.

What previously was a means of living, has now become an industry of their own. More and more institutes, apart from banking institutes are offering this service all around the world. And while there are plenty of service options available, the technology used to transfer funds has also improved. For one, you can send funds through the online portal. No matter the destination, location or even requirement for a bank account or not, you can now easily send money online.

But like any other money transfer service, there are certain factors you will need to keep in mind when opting for this service.

Is the service reliable?
One of the main features of a money transfer service you need to always take into consideration is reliability. Is the money transfer institute or bank you are opting for, has sufficient years of experience? Do they have sufficient staff?  What is their success rate of transfer? How prepared are they to deal with delays or financial emergencies? The answers to these features determines how reliable the service is when it comes to sending money online. Once you have the answers to these questions, you will get a level of understanding of reliability of these services.

How convenient is the service?
Convenience is another key factor you will need to take into consideration when you want to send money online. Can you connect your bank account directly to the service? Or would you be required to create another account with the service itself and transfer funds to that account? In addition to the sender’s requirements and features, you will also need to take into consideration the receivers requirements. Does the receiver need an additional account? Can the receiver receive the transfer directly into the bank account? Is there a physical platform where the receiver can receive the funds directly? Getting a clear understanding on these factors will give you a better picture on the convenience of the service the financial or bank institute will offer.

What are the safety measures taken by the service?
While each institute may have its own reliability when it comes to money transfer, they must also have the means to ensure that the funds are safely transferred. This can be in the form of establishing secure log – ins, or even taking on strict measures to verify identities. Additionally, one should also take steps to track the transfer of funds, by providing regular and real time updates.

Apart from these features, there are plenty more that you can take into consideration. However, it is important that you are well aware of what the banking or financial institute is offering before you make the money transfer.

4 important tips to keep in mind when making a money transfer to India

Reliable, efficient and safe money transfer systems have become the demand of the hour for the money transfer systems. With the number of migrants workers, globalisation and the internet have all helped the money transfer service become an industry of its own. Additionally, this number is likely to increase over the coming years.

This, in turn, has led to more companies entering the money transfer market, providing individuals with more options and variety of service. However, while the choices may be plenty, you would still be required to ensure that you are following safe protocol with any transfer you make. Therefore, to ensure that you make a secured money transfer to India, here are a few tips you can consider:

1. Check the size of the company

If the institute you are applying to, making a money transfer to India is newly developed or comprising of a small staff, then there is a high probability of something going wrong with the transfer. A medium to a large-sized company would be a better bet in this case.

2. Check the size of the transfer you are making

If you are making a large money transfer, you must look out for transfer services that offer the safest transactions and channels. In such cases, it is recommended that you make money transfers through bank wire transfers. The reason behind this is the security features they take into consideration. For example, when making a money wire transfer, the customers will need to provide sufficient forms of identification. Additionally, the wire transfer that is being made comprises of a highly secure encrypted message, which is designed to be difficult to intercept and interpret.

3. Identify the sender before sending funds

If you are sending funds to a known person, you need not worry. However, if you are sending funds, to people who you haven’t met apart from digital communication, then you must be wary or identify the sender before you are sending funds. This is normally the case in online auctions, internet purchases, or even charity donations. In such cases, there is a high probability that someone will simply take the funds and run.

4. Look out for phishing scams

While you still may be careful with transferring funds from your end, there is a chance you may fall victim to a phishing scam. Phishing scams can exist in the form of an email from a genuine business, which requests your banking and financial details in order to proceed with the transaction or business progress. They may even ask you to click a link in order to proceed with the proposition or to click details for more interest. The best way to avoid such scams is to simply go directly to the merchants site and not through a link in an email.

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.