The ideal NRI guide to purchasing a property in India

To a non – resident Indian, purchasing a property back home may seem like a perplexing step. The ever changing rules and methodology of making an investment will make any potential investor feel apprehensive about the outcome from such investments. Additionally, there are the different financial options to consider along with the taxation on the property as well as the financial option to consider. Given below are a few steps an NRI can refer to pertaining to property dealing within India:

Status of the individual: While the status of NRI may seem like a generic reference to individuals who are Indians who are not residing in India, it is classified only to a particular sector of non-residents. NRI’s are normally individuals who hold an Indian passport and are currently residing or have resided in another country for a consecutive of 180 days or more. In addition to this, there is anoverseas citizen of India (OCI’s). Depending on the status of the individual, the consecutive property options and financial options will differ.

Restrictions on the purchasable property: Not all types of properties are available for such individuals. Properties that are not agricultural, plantation or farmland property, are purchasable by such individuals.

Funding the purchase: NRI’s who hold an NRE, NRO or FCNR options are eligible to purchase the property. These individuals can also use NRI home loans to finance the purchase, by using these NRI accounts to repay back the borrowed funds. At the same time, an NRI can take advantage of the loan availability and tax benefits to save funds in the long run. Plenty of multinational banks has different schemes in place to provide home loans, which are subjected to the restrictions related to the country bound property purchase.

Power of Attorney (POA): NRI’s who do not have the capability or functionality to travel to India to facilitate the purchase of the property, can opt to issue a POA. A POA can be a close relative residing in India, who can purchase the property contract on his behalf while registering the same in his or her name. This mustbe done in the presence of a notary or consulate officer in the country of residence. The POA must further adjudicate the purchase within months from the date of assigning the power.

Repatriation of funds and tax implications: When the sale of the property takes place, the repatriation of funds takes place. This can be done through the NRI home loans through the NRI account. As per the Indian tax laws, any NRI that holds property in India is not liable to pay tax unless there is rental income that is accrued from it. However, if the property is sold, then the capital gains tax, depending on the short or long term. 

How to get the best credit card as your travel companion

Everyone has a dream to take a few weeks or months off to travel the world. No doubt, it would require plenty of expenditures and a lot of saving. Additionally, you will also have plenty of financial vehicles to choose from to assist you during your journey. Amongst the different options, the credit card is one such option.

All you need is the right card in your wallet with your travel plan. Given below are the step approach to make your travel dreams come true:

Start planning now: Whether you are planning your trip in the next month or the next 6 months, an advance plan will make a considerable difference to your overall expenditure. Begin by first planning your destination and the places you wish to visit. Next research about airline alliances that offer multi – leg bookings, along with lengthy layovers. Booking your flights through this process will be considerably less expensive and easy on your pockets. If you need to change your booking mid trip, you can do it for a small fee. 

Start saving now:You will face plenty of costs when you travel. You will also be giving up the income from whatever job you won’t be working during that time. Therefore, saving now is imperative. There are numerous ways you can reduce your costs every month ad yet save a substantial amount every month. If you have a budget, set it accordingly. If you don’t have one in plan right now, now is the perfect time to start.

Check Your Credit: This is also the perfect time to evaluate your credit. If it needs to be worked upon, now is the perfect time to improve it. A good credit, makes it easier to get a rewards credit card, which is the best credit card in India you can afford for your trip. Check for a free review of your credit score and update it every 14 days. Make a personalized plan to improve your credit scores if required.

Evaluate Your Credit Cards: Does your current credit cards earn you sufficient miles, cash back or other similar rewards? If it does not, it is a good idea to consider alternate options that will help you achieve your dream trip. Look for the best credit card in India that offers good travel rewards, redeemable miles or even new credit cards that offer sign up bonuses. You can also opt for offers that offer cash back on restaurants, gas station or other purchases.  Importantly, it will help you improve your credit if you manage it properly, allowing you to qualify for other credit cards with better rewards.

Evaluate Your Card As a Travel Companion: Once you have got a good reward credit card, along with sufficient savings, you are almost ready to go. Now you only need to ensure that your credit card is internationally supported. Confirm whether your card is well insured or that you are not required to pay international transactions fees anytime you use it. You can even check if the reward points collected on your card can be redeemed in an entry to airport lounges which can benefit you during delays.

What are the credit card offers you need to take advantage of with a bad credit score?

Not many are aware that the credit score plays an important role when it comes influencing your financial profile. For one, it affects your ability to borrow funds. Additionally, it also helps improve your credit score with the right usage. This is no different when applying and using a credit card.

But if you are planning to opt for a credit card when you already have bad credit, there are certain factors you need to keep in mind. For one, your low credit score will make a difference on whether your application is accepted or rejected. Additionally, it also determines the rates of your credit card. But with the right usage of the credit card, you can easily correct your credit score to an acceptable rate.

So what are the credit cards offers you need to take advantage of to improve your score? Given below are a few suggestions:

Secured credit cards: This is one of the most beneficial cards you can use when you have a low credit score. Although credit cards come under the category of unsecured options, secured credits cards can be obtained, if you only provide an equivalent collateral. However, in this case, the credit card rates will be considerably low, as compared to the other ordinary credit cards. You will also have a lower credit card expenditure limit, which may restrict your expenditures. However, with the right implementations and usage, you can easily limit excessive expenditures and improve your credit score at the same time.

Credit tracking apps: While there are plenty of means that your credit score can be affected, one of the main cause for it is over expenditure. Although a credit card can be very convenient to use, very often card holders get carried away with the expenditures and end up overusing it. This leads to high debts as compared to the income, which in turn affect one’s credit score. Credit tracking apps are one way you can keep track of the expenditures you are making. You can easily download the app when you apply for the credit card, which will be synced to your account. Once you make an expenditure, it will automatically track it thus providing you with insight on your expenditures.

Upgrade to co – branded cards: While your secured credit card will offer you a safety precaution against over expenditure while improving your credit score, it is only a short term solution. During the duration of the usage of the card, you will need to provide collateral. However, you can always upgrade to a co – branded card that will work towards your benefit. For example, if you frequently travel between cities, you can opt for a travel credit card that allows you to collect points. Similarly, this can work for the purchase of retails products or even movie tickets. Such credit card offers will go a long way to improving your credit score while allowing you to save on your expenditures.

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.