Safe internet banking: Factors to keep in mind

Today’s progress in economy and technology has made banking easy. Through internet banking, you can now access the basic functions anytime and anywhere you would want. They are even accessible through your fingertips via your mobile phone.

While there are several benefits to this form of internet and mobile banking, the flip side of this coin also shows up. There are certain risks involved with this form of banking, which has remained a huge concern for users. In order to ensure that you enjoy secure and safe banking transaction, here a few factors you can follow:

Always use genuine anti – virus software: Very often it is your system that gets compromised through phishing, malware and virus software. This is also applicable for mobile banking.In order to protect your computer or mobile from such factors, you need to use a genuine anti – virus software. While you do get trail versions online, a completely anti – virus software will help detect and remove spyware that can allow outsiders to access sensitive information.

Avoid using any public Wi – Fi: One of the biggest threat of internet banking with a  public wi – fi network is that the hacker can sit between the end user and the hotspot and trace all the data with ease. With this easy access, the hacker can easily introduce malware or viruses into your device. So if you must use the Wi – Fi for any internet usage, avoid using it to access your bank details or make any payments. As a precaution, you can set up a VPN software on your computer to create a secure a tunnel between the computer and the internet.

Check for the latest update on your operating system: Whether you are using a computer, laptop or any mobile based device, you should ensure that your operating system is well updated with the latest security patches and updates. As far as possible, avoid using cracked OS’s or jail breaking or rooting your phone. You should also look to limit or restrict access from programs or apps that are being installed, to only what they really require.

Change your password regularly/keep a strong one:While this may sound clichéd and avoidable, it is important that you keep your account safe while maintaining confidentiality. The facts goes without saying you must not share these details with anyone. No bank will ask for your confidential information. Additionally, when you are changing your passwords, choose strong or long passwords. If you must, create different passwords for log – in and your transactions.

Subscribe for mobile notifications: It may seem like a nuisance to get constant alerts, but it will actually work to your benefit, especially if you get an instant notification if any suspicious transaction occurs. Whether the transaction exceeds the specific limit or within it, you will be aware of how much funds is remaining in your account. Additionally, you will also get alerts if there are any unsuccessful login attempts to your net-banking account.

What are the types of insurance available in India?

In your life, you will face unexpected risks, which can affect not only your, but also your loved ones. So how can you face these risks and yet stay protected? This is where an insurance policy will help keep and your loved ones protected. But with so many types of insurance policies available, how does one opt for the right one to get the optimum protection?

Given below are the different types of policies currently available that you can opt for:

General Insurance

• Personal Insurance: This is one of the most popular and generic types of insurance policies available. It covers several requirements such as health and coverage against death or injury by accident. Under this category, you can also cover your family members in an individual policy such as medical insurance, accidental insurance, property insurance as well as vehicle insurance.

• Rural Insurance: Rural insurance is an insurance policy that is designed to meet the requirements and needs have rurally based individuals or businesses. Normally, it focuses on coverage’s for life and health and even protection against natural disasters that can have a negative effect on businesses.

• Industrial Insurance: Businesses can opt for financial protection for any of their important projects, construction, contracts and equipment from situations such as fire, theft, damage or loss.

• Commercial Insurance: This insurance is designed to provide financial protection against theft, liability and property damage. This also focuses on injuries suffered by employees or even interruptions in the business.

Life Insurance

• Whole life insurance: Whole life insurance policies normally cover the entire duration of an insured’s life. A yearly premium will be required to be paid so long as the policy lasts.

• Endowment plans: This policy provides a lump sum amount once the policy holder dies or when the policy matures. In this case, there are certain types of policies that provide payment in case of critical illnesses.

• Money back plans The money back plans are used as a form of investment. It is used to produce ideal financial returns in the future for several purposes.
 
• Term life insurance: The term life insurance plans or term assurance plans are available to the insured, for a fixed period of time. Once the period of time comes to an end, the policy owner can opt to withdraw the policy or extend it.

• ULIP’s: United Linked Insurance Plans are policies where the financial worth of a policy reflects on the net asset value of the core investment assets that are related to it. They offer a unique feature, to policyholders, which is both flexible as well as protective.

Other Forms of Insurance

• Home insurance: Home insurance, also known as homeowner’s insurance of hazard insurance is taken to cover private homes against losses and liabilities.

• Travel insurance: Travel insurance policies can be availed to cover both long and short trips. It can also be used within or countries abroad.

How to tell if you are ready to purchase a car with a car loan?

Purchasing a car may seem like an easy feat as driving one, but on the contrary, there is a lot more to be done. Not only will you be required to provide paperwork, but you will also need to be on top of it to secure the high-ticket purchase. So how do you know when to wait, or go for the big purchase?

A car loan is one way you can go about purchasing your car. However, your lender will ensure that you do not cross 45% of your monthly income as payment. This would also include the other monthly liabilities. While this may seem like a small amount, in reality, it is quite big. As compared to other savings such as your monthly obligations, excluding childcare, college savings, and other savings in general, this is a large expenditure to take care of.

So if you find you’re unable to make those ends meet, chances are you may not be ready to buy a car. Given below are some means to keep your loan payments as manageable as possible:

Pay off previous debts: The first step you need to take is to pay off previous debts. You need to check if you have a workable down payment. If you have any debt payments that push your debt over the 45% mark, try to pay them off. Focus on the debts that have the greatest balance. In doing so, not only will it allow you to apply for car loan that is large, but most importantly it will allow you to afford a new mortgage payment.

Keep your monthly debts in check:Whatever current monthly debts you have, it will limit your purchasing power especially if you want to apply for car loan. Therefore, it is crucial that you reduce these debts on a monthly basis. You can make a repayment plan that focuses on repaying each debt within the given tenure. Alternatively, you can focus on repaying each debt one at a time. Once your overall debt to income ratio has increased, you can apply for the loan to purchase a car.

Avoid focusing on high-interest debts:It is not what you owe, but rather what you pay that counts. Lenders look at certain factors when it comes to your application for a car loan. Most lenders focus on the minimum payment that you’re obligated to make on credit payments of whatever interest rate you have. In other words, your 0% home loan can adversely affect your ability to borrow, especially if that payment is a few thousand rupees a month.

All you need to remember is that only you will be making the payment for the loan. So purchase a car if it only makes financial sense for you. While low rates are an attractive reason to purchase a car, you need to exercise financial prudence.

Debunking the top myths associated with personal loan

When it comes to investments, you would always look for options that are risk free, with a promise of high returns while also beating the demands of inflation. However, when it comes to investing a loan such as a personal loan, there will always be a fear that the loan will overwhelm you and your financial requirements, leaving you with an ever bigger debt.

But not to worry, we are here to debunk some of the common misconceptions about the personal loan and how to get the best deal:

Myth #1 – Increase in the interest rate would mean inflated EMI’s

It may seem like a simple math. Whenever a bank revises the base rate, it would only mean an increase in the personal loan interest rates. Of course, it would change your overall monthly budget, especially with your EMI’s. However, this is the biggest myth. In line with the changes of the interest rate, the tenure will normally change. In fact, most banks tend to adjust the tenure with a change in the interest rate, while keeping the EMI value the same. If you want to pinpoint the exact changes in your tenure, you can always use the personal loan calculator to assist you.

Myth #2 – All interest rates offered are the best deal

While the cheapest rate for a product score you a good deal, the same cannot be said for personal loan rates. You will need to dig deeper to ensure that you are getting the best deal that will suit your needs. You will need to check out the valuation charges, processing fee and other additional rates apart from the personal loan interest rates.  The initial glance over the rates may look tempting, but it may not be flexible for your requirements. The best way to avoid such a situation, is to review the personal loan features that will suit your finances and objectives before you zero in on a lender. Don’t forget to compare options before you apply for one.

Myth #3 – Borrowers should always opt for a shorter tenure

Most borrowers are under the assumption that a short loan tenure is the best route to avid any repercussions from an increase in any repo rates by the RBI. However, on the contrary, shorter the tenures would also mean higher EMI’s, which puts you in a position to face liquidity issues if you don’t manage your money carefully. Instead, try to save some funds side by side and invest in options that give you a good return at the same time. A diversified investment portfolio will help you pay off your personal loan as opposed to increasing your EMI, by reducing your tenure.

How to prevent your education loan from taking over your life

Over the last few decades, education has become a priority for most of the upcoming youth. Many of these individuals are aiming for education levels that go beyond the standard college degree. Some individuals have even contemplated pursuing degrees and higher educational levels abroad.

However, such educational degrees come at a price, especially if the said degree is an international one. But rather than losing out on such an opportunity, many individuals finance their education through the means of an education loan. However, lack of well-paying jobs, recession and demand for local workforce has often affected loan owners, who are looking for means to repay back the borrowed funds. After all, lack of income leads to lack of repayment. So how can you avoid a potential debt in your life while ensuring that you get an opportunity for the highest education? Here are a few steps you can follow:

Before you borrow

While the best way to avoid a potential debt is to avoid borrowing in the first place. This can be an impossible situation if you are seeking a high international educational degree with the help of education loan in India. So instead, you can ensure that you follow certain steps before you apply for the loan. They include:

Get a complete picture of your education goal: The reason why colleges and higher education might seem expensive, is the fact that half of the students graduate at the end of theterm. Most of these individuals either drop out, flunk out, or even switch their majors. Some even drop out midway because they get a job opportunity, only get stuck on the corporate ladder due to lack of a higher educational degree. To avoid this potential situation, you will need to focus on your education goal. This will help you understand what the potential financial expenditures are, in order to attain the position you want in your targeted industry

Take a year off:  Taking a year between your college and earning your masters or PHD will go a long way to assist you in planning your future. This year can be used to explore alternate career options or earn a down payment for your education loan.

After you borrow

Once you have borrowed funds through the education loan in India,  here are a few factors you can follow:

• Create a post-college budget
If you are going to borrow, you need to be aware of what you owe, how much you owe, and the time it will take to repay the funds. Calculate the monthly cost of your loan payment while you are still studying, so that you are aware of how much of a budget you will need to follow when you start earning to pay off the loan.
• Prioritise your repayment
As you start earning, it is important that you focus on prioritising your repayment. Ensure that you have sufficient funds to save, for your monthly requirements while paying off your loan at the same time. As far as possible, avoid taking on additional debts till you have paid off your loan considerably.

Factors that determine your eligibility for a home loan

When it comes to purchasing a home, there are plenty of options you can consider to finance this purchase. Amongst the several options, the home loan is one of the most popular choices. Not only are there several lenders who offer home loan in India, but they also offer it at different competitive rates.

However, each lender will have different criteria for evaluating a loan application. These criteria determines your eligibility for a loan application. Here are a few factors that almost all lenders will consider:

Disposable income: One of the most important factors that a lender will consider is your disposable income. It is derived by deducting your statutory deductions, regular expenses and existing EMI’s from your overall gross income. Overall, you home loan EMI should be within 40% of your monthly disposable income. If you individual income is low, you can always apply with a co – applicant to increase the overall gross income in order to get the loan amount you require.

Credit history: Your credit score determines your creditworthiness. Lenders consider your credit score as the means to judge your creditworthiness. A low credit score will indicate that you are a risky investment. It also indicates that you may have a current debt value that you need to pay off before applying for another debt, such as the home loan. The appropriate credit score of 750 and above is considered as a good score. However, other lenders may have different scoring patterns and a fixed yardstick for their own version of their acceptable good credit score.

Compliance with legal norms: When it comes to opting for any of the home loan in India, lenders will first verify details of the property which you are taking the loan. They provide loans to facilitate the purchase of properties that have been legally cleared by the local authorities, especially if they possess a clear and valid title. Some lenders even offer special loan packages or rates on properties that have been listed in their approved database of properties.

Occupation stability and continuity: A stable job or income source ensures a continuous and steady income. This income in turn, ensures that the borrowed funds are repaid in a timely fashion. Lenders for certain signs and factors that indicate a stable job or income source. They also consider how long you have been working with your present employer to calculate how steady you are in your employment. Switching too many jobs during your career will create a negative impression. Additionally, lenders give more preference to government employees over professional individuals in private sector companies.

Apart from the above mentioned factors, there are plenty more, that a lender will review. Keeping these factors in mind will go a long way to ensure that not only do you get the ideal loan rates in the market, but also allows you to negotiate for the best rates in the market.

Tools and tricks to pay off your loan debts faster

Amongst the different options you can consider to satisfy your financial requirements, loans have always been favourable options. Not only do you get to borrow a lot of funds, but you also get a convenient time to repay back the borrowed funds along with a small sum that conforms as the interest.

But overtime, without proper management and planning, your loan repayment will turn into a never ending loan debt. This is especially the case in long-term loans, such as home loans and business loans. Additionally, there’s a risk in the case of secured loans, where the collateral provided will be reclaimed if the borrowed funds are not paid on time.

The only way to avoid such a situation is to pay off your loan debts fast. Given below are a few tricks and tools such as the loan calculator in India you can use to aid you in this process:

Refinance your loan: High-interest rates and long tenures often make it difficult for a loan owner to repay the loan on time. However, refinancing the loan will help reduce the time spent to repay the loan as well as the original loan rates to a more favourable one. Plenty of lenders does offer to refinance loans at affordable rates. However, this is applicable only to certain loans. You will need to conduct appropriate research before you apply for a loan refinance. Additionally, you will also need to know how much of refinancing will suit your needs. Using the appropriate loan calculator you can easily calculate the appropriate amount.

Use any windfalls to pay off your loans: During some time in the year, you will come into extra funds through your body, holiday, annual bonus or even festive bonuses. At such a stage, you may get the urge to spend it on something exciting for you or your family. At such a stage, it is important that you resist the urge. Instead take the profit and convert it into a payment to pay off your loan debt. This will provide you with relief in your repayment. Additionally, you will be able to save more to pay off the loan faster.

Use the loan calculator to make a repayment plan
A strong repayment plan is one of the most important steps when it comes to repaying any loan debt. You must first plan a flexible baseline to your payments to know how much you will be able to pay per month within a given repayment tenure. You can do this by using the loan calculator.  You can use the different loan calculator in India for the appropriate loan you have applied for. You can even use a general loan calculator to calculate multiple loans.