Best car loan: Benefits of pre – qualifying for a car loan

Shopping for a used or a new car may be an impending adventure waiting to happen. However, when it comes to financing the purchase, it can be a tedious job, especially when it comes to arranging the auto loan. So how do you keep a minimum time in your lender's presence? The easiest way to do so is through the pre – qualification of the car loan.

Given below are some of the benefits of the pre – qualifying for a car loan which makes it the best car loan you should take advantage of:

Get better interest rates: While dealer financing is convenient, you will always be a risk for car loan rates that have been marked up. This means, that you are more liable to pay 1to 2% more than the current market rate. While this may seem like a small figure, in the long run, you may end up paying more than usual. By getting a pre – approved loan, you know you will get the best of the loan rates you can qualify for. Additionally, you will also be able to judge whether the dealer is offering you a good deal or not.

Set a realistic budget: One of the main drawbacks of a car purchase is the budget. When it comes to purchasing a car, you may have a fixed value in mind. But many a time, your dealer may convince you to opt for additional features, such as add - on or insurance, which can increase your overall loan amount. One getting a pre – approved loan amount, you get not only a fixed interest rate but also a realistic budget. You can even take into consideration other loan factors such as the add-ons, insurance, down payment, trade-in amounts amongst other expenditures to know what your budget will be like.

Simplify your dealership experience: A dealership experience can be a pleasant, exhausting or discouraging one. But a simple factor, such as a pre – qualified loan will make a considerable difference in your dealership experience. In other words, a pre – approved loan will be the best car loan you can use to finance your car purchase. For one, it makes your dealership experience simple and convenient. This is because, a dealer will see you as a buyer with cash in hand, and someone who can easily walk away from negotiations at any time. In other words, they do not have fixed rates that can be turned in their favour and against yours.

Negotiate more effectually: When you bring a pre – approved car loan, you can always ask the dealer to beat your interest rate. Very often, dealers have access to cheaper financing through captive lenders. These are banks that are set up by car dealership companies just so that they can produce auto loans. It will work in your favour if you fill out a loan application at the dealership to see what special deals and incentive you are viable for, especially if you have a strong credit.

What are the factors you need to consider before opting for auto loans?

Auto loans, just like its mechanical namesake, comprises of plenty of complications and multiple parts. However, as compared to the loan, there are plenty of individuals who have a better understanding over maintaining a car than a loan.

While there are considerable differences between both aspects, several factors that are common between them one of them includes the perception that both the car and loan are indispensable to their lifestyle. While a large population do own cars, when it comes to financing the purchase, auto loans in India have become the most viable option. But in order to avoid any possible complications or financial drawbacks after applying for the loan. Here are a few factors you can consider when it comes to applying for this loan:

How much to put down?

‘No down payment’ is one factor that you may have come across when applying for a loan. But is it in your best interest? While this may seem like an attractive offer, a down payment will go a long way to saving funds, especially in a loan application. That is because higher the down payment, the lesser of interest you will need to pay. Additionally, since the value of new cars depreciate as soon as you operate them, you will end up owning more than the car’s worth for the time being. In other words, if your car gets stolen or gets into an accident, your insurance may not be able to pay off the complete loan amount.

How much of a term length to opt for?

Loan terms differ based on the type of loan. Auto loans can last anywhere between 10 to 15 years. However, lower the monthly payments, the more you will need to pay, especially regarding interest expenditure. However, since vehicles do have a depreciative value, you may end up with a longer loan that a car, which normally has a shorter useful life. If you do not want the loan to outlive the car, opt for a loan duration that will suit your needs.
How to get the best rate of interest for the auto loans in India?

Loan interest rates vary on different factors and conditions. The best way to get the best interest rates is to compare lenders before settling on a loan offer. You must be aware that loan rates are typically higher on longer loan. Therefore this is another incentive for choosing a loan tenure that is shorter.
Opt for a direct or indirect lender?

There are two ways you can finance the purchase of your vehicle. One way to do so is by getting the loan directly from a financial institution. The other option you can consider is through the car dealer. While it may be convenient to opt for financing from a dealer, you may be on the receiving end of high markups on loan rates. Don’t forget to compare them to loan rates offered by a financial institute before making a decision.

Are you aware of these services provided by your ATM card?

When it comes to accessing your funds directly, there are certain means wherein which you can access it. The ATM card is one such means where you can access your funds at the ATM terminal.

However, recent progress in banking facilities has allows bank card holders to use this card as means of other services, such as given below:

Open or access a fixed deposit: Fixed deposits are a great way to store your ideal funds, and a popular means to invest funds for a fixed time, with a good return. Through this card, you can now easily open or withdraw funds from your account. All you need to do is access your ATM card near your closes terminal. Select the ‘open fixed deposit’ account menu, and then select the duration. Don’t forget to select the amount you would want to invest in. At the same time, confirm the other necessary details you would want.

Recharge your mobile: There are plenty of occasions where you will find yourself in a situation where you lack balance on your pre-paid mobile phone to make any call or access the internet. Using you’re the ATM card like a debit card facility, you can recharge your phone. At the same time, you can even recharge the phone of your friends and family member in the same manner. All you need to do is access your card at the terminal and enter your mobile number and confirm your recharge amount.

Deposit cash: While you can withdraw funds from a terminal with your ATM card, you can also deposit cash in the ATM kiosks, just like a debit card facility. The amount that one can deposit will differ from the banking institute you are depositing. Some banks allow an amount of Rs. 49,000 with certain denominations of Rs. 100, Rs. 500 and Rs. 1000.

Pay insurance premium: Certain banks have now extended their facilities and tied up with insurers to facilitate premium payments through ATMs. All you need to do is keep your policy number at hand. Once you access your card at the terminal, you can pay a bill, through the selected insurer. You will need to enter your policy number and date of birth, along with mobile number. You will need to enter the premium amount and confirm the details.

Personal loan application:

When applying for a loan, you will need to approach the appropriate banking facility to get the funds. However, if you want to avail a small personal loan, you need not approach your bank. Selected bank sectors offer pre – approved personal loans for customers where ATM terminals are used as a point of disbursal. However, advanced analytics will be used to take into account the customer’s transaction details, account balance, salary credits and other banking card repayments. 

Are you aware of these factors before applying for a business loan?

Plenty of individuals have pursued their dreams of opening their own business by financing it through a business loan. Established ventures have also used this loan to finance their working, or certain specific functions of their business. Lenders have also different packages of loan for business in order to satisfy a particular function of the business.

But like specific loan application, a lender will review specific factors before approving your application. Therefore, to ensure that you have a high chance of an approval on your loan, here are a few steps you can take:

Prepare yourself properly: In today’s time, lenders will look at all the aspects of your business before approving the loan. This review will be considerably stringent as compared to the previous processes. While most applicants will aim for a lender that provides the highest security possible, this security will only be provided if the applicant provides all the relevant details. Therefore, it is necessary that you prepare yourself properly to face all the queries of the lenders because their priority will be to select worthy candidates.

Lenders look for a strong credit history: A strong credit score is another factor that lenders will review before approving your business loan application. Your credit score will always provide you with one step ahead of others. Therefore, it is crucial that you build a strong credit history before exploring your options for a loan for business. A good credit history will indicate your ability to deal with any debt or credit issues in a timely manner. While providing your credit history, do ensure that you also include your equity in your proposal.

Consultation with an accountant:For those who are preparing for a new business loan, you may not be aware of all the important facts regarding the loan. The best way to ensure that are completely aware of all the factors surrounding the loan is to consult an expert accountant. The accountant will suggest how much you need to apply for and how much your business requires to function. The accountant will also help you design your business plan.

Income statements:While you apply for a loan, you must also ensure that you have the means to pay off the loan. Lenders will check the ability of the candidate before sanctioning the business loan. This means that, lenders will want to see whether the applicant will be able to pay off the loan in time or not. This can only be addressed with your income statements. By your income statements, your monthly income will decide whether you have the ability to afford the loan or not.

Calculate your net worth: Before you approach the lender for the loan, it is necessary that you calculate your net worth you actually own. This is one way to ensure that you are aware of your liabilities. A weak financial base with unknown previous liabilities will create problems in the duration of your loan repayment, making the loan a liability itself.

How to get the best deal on your card when planning a foreign trip?

With the holiday season coming around the corner, you may be bombarded with a multitude of different discounts and offers regarding investment opportunities, travel packages as well as bank card offers. No doubt, this would also be the perfect time to plan a quick escapade with your loved ones or your family for a much-deserved vacation. And what better holiday vacation you can take than by travelling to a foreign destination?

Undoubtedly, with any choice of destination you make, it will come with a hefty price. Additionally, you will also need to take into consideration the expenditures you will need to undertake when at the destination itself. But instead of losing out an opportunity to collect souvenirs or sample an exquisite yet local dish, there are ways and means where you can actually indulge in guilt free expenditures. This canbe done with the right banking card. Amongst all the different available choices, the multi-currency card is one of the most popular choices.

With this card, you only need to invest a few your funds in the local currency, which in your case, would be the rupee. Once you travel abroad, you only need to swipe the card whenever required, and the funds will be deducted from the account in the local currency value. But this card is only as beneficially saving, as the deals, you will get on it.  Here are a few tips you can keep in mind when it comes to getting the best deal on your multi-currency card:

Look out for changing financial trends: Financial trends often change with certain factors, one of which includes the international festive and holiday seasons. Depending on this factor, currency values may either increases or decrease. While the trend itself may be unpredictable, you can always look out for predictions pertaining to these change. This will not only give you an idea what to expect, but also allows you to take that split second decision to invest in a currency right now, or wait for a longer period of time. Since the currency value will be fixed when loaded on the card, you can make most of the change in currency value, especially if it works in your favour.

Avoid unnecessary fees: One of the major advantages of using the multi-currency card abroad is the avoidance of unnecessary fees. When using a normal banking card abroad, you will normally have to pay fees such as conversion fees, service charges amongst many others. Overall, this can add a financial burden to your expenditures when travelling abroad. However, when opting for the multi-currency card, the value of the currency will be fixed. Additionally, as a part of the application for the card, you can review the terms and conditions, which also specifies the charges you will have to pay along with your expenditures, giving you the required transparency to avoid any potential setbacks.

Get the best of businesses privileges with the current account

One of the crucial requirements of owning a business is incorporating a convenient and flexible financial channel. This financial medium should benefit not only your business, but also your clients.

But amongst all the available financial products available, one of the most convenient options is the current account.  Plenty of business, both startups as well as established ones, has opted for this account, to handle their daily transactions or any other clientele transactions. Here is how you and your business can benefit from this account:

Payments and collections through NEFT: The current account uses the National Electronic Funds Transfer (NEFT), which is a nationwide payment system that facilitates a one to one fund transfer. Through this channel, individuals, firms and corporate can electronically transfer funds from any bank branch to an individual, firm or corporate bank account in any branch in the country. This makes it easier to manage business transactions between businesses, especially on a monthly basis.

RTGS collection: The real time gross settlement system also known as the RTGS system facilitates an online transfer of funds between bank customers and different banks. Not only can this system be used for transfer high-value funds, but it is also done on a real time basis.

Multiple transactions: One of the main factors of a business is the transaction to be made in with another client or business or even your own employees. Any restrictions on these transactions will affect the business development or any current business relations. This is where the current account will prove to be beneficial. It is through this account that you will be able to make multiple transactions that will ensure a smooth functioning and disruption free channel.

Multiple location transfers: For businesses who have branches in different locations will have restrictions in terms of dealing with multiple clients that have been scattered around the country. This is where the multiple location transfer feature of the current account will work for your business. Along with this feature and combined with NEFT and RTGS, you can now easily make business transactions from any bank branch to facilitate a smoother and faster transaction.

Overdraft benefits:  As a business that thrives on each financial transaction is makes, it is crucial that it has the required flexibility to make transaction even if there are insufficient funds in the account. This is where the overdraft facility will benefit businesses, allowing them to over withdraw funds in the event it is required, in order to facilitate a smooth financial transaction.

Apart from these factors, there are plenty more that can benefit you and your business. As it is crucial that you opt for a financial product and channel that will assist your business and let it flourish, this account will go a long way to help you achieve your dream.

What are the vital products you need to have before investing?

When it comes to investing, you will require stringent discipline to match your goals, and also have a strong intent to match your requirements. You will find plenty of recommendations from the RBI, several banks, investment and service providers.

However, the eligibility to invest in the first place and the efficiency which the investments are made and managed will depend on the following factors:

Bank account: Most investment products will require payments and receipts that will need to be routed through a banking system. In most cases, cash as a form of payment is often regulated. However, the cash amounts are often accepted to certain limits. Other products such as mutual funds do not accept checks that are issued from outside accounts. In other words, any capital market transactions made are only routed through the investor’s bank account.  Any dividend, interest, maturity redemption checks are made out to the investor’s name, wherein which a bank account will be required to process it. Additionally, the direct transfer of funds or even modes such as the NEFT and RTGS systems allow a transfer of funds from the account of the remitter to a recipient only.

Permanent account number: This alphanumeric identity needs to be furnished and produced at the time of commencing any financial transaction. Whether it is opening a bank account or a demat account, making or redeeming any investments or deposits and many more activities, you will be required to furnish the PAN number. However, you may not have to provide this number, if your transactions are below a prescribed value for certain products. In the event a PAN is not available, you will need to make a declaration in Form No.60 under the Income Tax Rules 1962, wherein which particulars of the transactions and proof of your identity and address will be required.

KYC norms: Under the PML Act 2002, you would be required to provide your identity details in order to make financial transactions. This is done under the Know Your Customer (KYC) norms. With this, banks, depository, participants and other similar institutes and financial intermediaries will conduct this compliance process, the first time an investor makes a transaction. If the KYC procedure has already complied with any capital market intermediary, the acknowledgement can be used to invest in others.

Demat account: Any securities that have been purchased or going to be sold will be held in a dematerialized or electronic form, known as the demat form. Certain investments such as shares, debentures and government securities will mandatorily require you to open a demat account. Other investment products such as mutual funds and small saving schemes can also be held in this account. Investors can open a demat account with any depository participant that is associated with the NSDL or the Central Depository Services Ltd (CDSL).