How a Loan EMI Calculator Helps in Your Financial Decisions

Financial decisions like buying a house, car or other investments are crucial steps in one’s life. It is essential that one weights every pro and con before taking the final call. Most of the people go for different types of loans in such cases. However, it is important that you choose the right kind of loan and check your repayment options using a loan EMI calculator. This is a digital computing system that gives you the breakup of the Equated Monthly Installment (EMI) payable for any loan that you take up. Here is more on getting the right loan and how this calculator can help you out with various financial processes.

- A loan calculator will help you gauge the amount of loan that you are capable of borrowing based on your income, interest rates and other factors. It can be quite a challenge to calculate the EMI payable manually. This is where the calculator saves your time and energy by simplifying the whole process. Once the computing is done, you can decide on a feasible amount to be borrowed for your needs.

- A calculator also provides a graphical representation of all the data regarding your monthly payments, in the form of an amortization table. This way, you can easily get a clear idea about the amount payable by the end of the loan’s tenure, the payable rate of interest, span of the loan and processing fee.

- You can also plan to customise your loan or repayment process with the help of the loan calculator. At times, you might experience an increment in your income, which might open up the option for you to prepay a part of the loan. The calculator takes such factors into consideration and gauges the amount payable in such a scenario.

- Using the loan EMI calculator for your financial decisions ensure accuracy and an error-free outcome. This will also save a lot of your time and make the process all the more quicker.

- You can also make a loan repayment plan using the calculator in advance and be ready with all the required documents and then apply for the loan. It helps you be sure of, which loan suits your needs the best.

You can make quick, smart and sorted decisions with the help of the loan EMI calculator. Whether it is a personal loan, home loan or any other kind, you can be sure of the amount you can borrow from the bank and the exact amount to be repaid per month. This is the best way to avoid complicated calculations and a messed-up plan.

Why internet banking is the future for cashless banking?

The world is rapidly moving towards the age of digitalization. It has taken over almost over all our fields in our lives, right from shopping, education, banking, groceries or even bill payments. It is also easily accessible, with your smartphone, laptop or even your desktop.

But one of the most progressive features of this digitalization is internet banking. More and more individuals are preferring to use digital cash payment methods as opposed to carrying hard cash around. But is it beneficial enough to become a cashless banking option? Here are a few factors that support this causation:

Can be used to make online purchases: When it comes to traditional purchases, you would first view the product, analyse it and then make the decision to purchase it. However, the product for purchase would be restricted by limited options and limitation in quality. For intangible products, such as services, you would have to ask around, by word of mouth, before you can get the service and then make the required purchase. But now, you can easily go online and make any purchase you want. You can even review the different available options, their prices and their qualities before making a decision. Once your choice is made, you can easily use your Net Banking facility or any of the banking cards to finalise the online purchase. This is an ideal choice for those who want to make retail purchases or even purchase services such as hiring transport.

Can be used to make online transfers: Money transfers have always been a requirement for individuals who have travelled and settled abroad. But while sending cash in the form of cheques, drafts or even physical cash, would be a risk as well as time-consuming, online money transfers have now made this process easy. Through the internet banking process, individuals can now make real-time money transfers as required without the need to withdraw funds or draw DD’s or cheques to send back home. Additionally, you can even track the transfer, which is especially beneficial for those who are living in the rural areas.

Can be used to make online termed deposit applications: Plenty of individuals are now finding themselves in a situation where their income is lower than their financial demands. In this case, they would opt for a loan to satisfy their financial requirements. But through the traditional means to apply for the loan, one would be required to submit a set of documents in order to apply for the loan. However, in recent times, as a part of the account opening process, you will need to submit a set of documents, which come under the ‘know your customer scheme’ (KYC). These documents are also the same for the loan. But through the Net Banking facility, you can easily opt for a loan, especially if you want to open a recurring or fixed deposit. Through this process, the funds from your account will be easily transferred to the required deposit without you even having to move your seat from home.

Credit utilisation ratio: How to use multiple credit cards to reduce this ratio

Credit cards are one of the ideal ways to make payments. Not only do they offer the convenience to make any transactions, but it also offers a mean to track your record. It also shows your availability of credit on tap. However, this can be optimally utilised only if you maintain a prudent use of your credit card. This is also the place where the credit utilisation ratio can be used as a parameter, to keep a tab on your credit card use.

The credit utilisation ratio (CUR) is an outstanding credit balance expressed in a percentage that is compared with the total credit limit across all your credit cards. As a card holder, it is crucial that you keep this ratio as low as possible, as most lenders and financial institutions will use this as a parameter of an individual’s credit management. Given below are some of the factors pertaining to the CUR and why should you be aware of it:

Why a high CUR is not good for you: Running up your credit card will not only lower your credit score, but it will also make your CUR look credit hungry. It will always make you look like you are in a financial crunch. When your CUR is high, lenders will assume that you are defaulting on your payments. This can affect your credit score negatively. This, in turn, will affect you especially if you are planning to apply for a loan. Therefore, as a precaution, you should keep your credit expenditure less than 30% either by using multiple cards or paying off your debt as soon as reaches its limit. Ensure that you do not overuse any of your cards, especially on a regular basis.

How can you benefit from using multiple cards?:While it is a good practice to make your expenditures through your bank cards, it is an ideal option to split your expenditures through multiple cards. This helps reduce the CUR for each credit card. As mentioned previously, this card is calculated separately and collectively on each credit card that is allotted to you. You can easily use these cards judiciously in order to maintain a healthy CUR. All you need to do is identify your monthly spending patterns and plan your expenditures accordingly to minimise your CUR or even the use of your credit cards. If you think you are spending a bit too much, opt for a higher credit limit.

When should you use these multiple cards? No doubt, it may be easy to opt for these credit cards when you are in a financial crunch. However, it is important to consider using these cards only when you need it. Opt to use the cards wisely, only to increase your purchasing power. Compare the different cash back offers and rewards for specific products, and then use the appropriate card to optimise your shopping experience.

Questions you need to ask yourself before opting for a personal loan

For any emergency or miscellaneous financial requirement, you can always opt for a loan, especially a personal loan. This loan, comes under the classification of unsecured loans, meaning, you need not submit any collateral in order to apply for this loan. Additionally, it can be used for several purposes, such as paying off several debts, medical purchases, planning a vacation, and many others more.

But unlike other loan types, the personal loans have a high risk associated with it. For one, it has a high-interest rate. Additionally, it also comes with a tenure that can be short. By any chance, you cannot pay back the borrowed funds along with the interest rate; it will affect your credit score. Keeping these factors in mind, it is crucial that you be aware of the requirements and factors pertaining to personal loan. Here are a few questions you need to ask yourself before opting for this loan:

Why should I consider this loan?
Different individuals will have different financial profiles and different requirements. In the occasion that an individual requires quick and easy finance, such individuals can easily take a loan against whatever available assets they have. However, for individuals who do not have sufficient or any asset, as a matter of fact, can opt for a loan without such requirements. The personal loan is one such option. However, depending on your profile, you may or may not get the loan amount to satisfy your needs. Nevertheless, you can always check with your lender on how much of credit you can avail through this loan.

Can this loan affect my credit score?
When it comes to any loans, it is crucial that your credit score is as high as possible. The reason behind this is that lenders will check your credit score to see if you are a low or high-risk candidate when you apply for this loan. While this can be applicable before your loan application, this is also crucial when you already have an existing loan which you are repaying. Any delay in the repayment will affect your credit score. Since the personal loans are already a high-risk loan, you need to consider a proper repayment strategy when it comes to this loan, as taking on such a loan will have a chance of affecting your own.

Finally, is the personal loan right for me?
In reality, the personal loan will suit any individual. However, this should be considered only if other financial options are unavailable. Additionally, if you do not have the required assets to liquidate for a loan, this would be the ideal choice. Nonetheless, it all depends on your financial requirement and the urgency for it. Would you be opting for this loan to pay back previous debts, or would you be using it to pay off a purchase for a car or bike? Keeping these factors in mind, it is crucial that you opt for this loan only if it feels right.

How can you benefit from an EMI calculator for your loans?

At some point in one’s life, you will face a financial crunch or a requirement for a larger financial amount that goes beyond your income. At this point in your life, you can either opt to borrow from your friends or family, or you can either opt for a loan from a financial lender. With the latter option, not only will you get plenty of options to consider, but you will also get plenty of benefits along with these options.

But while you may or may not get the required amount when borrowing from your friends and family, you can be well assured that you will have a higher chance of getting the required funds through a loan from a financial lender. But before you can take this loan from a lender, it is crucial that you first take the necessary steps to plan your loan. Tools such as the EMI calculator will help you plan your loan, as well as take the necessary step to repay the borrowed funds. Here is how this loan will help you:

Know how much of interest rate one is eligible for: Different loans have different interest rates. Additionally, each applicant will have a different financial profile, meaning you, as an applicant will be eligible for a different interest rate which may be above or below of what is offered for that loan. No matter the loan type or amount you borrow, opting for the right interest rate is crucial as it determines how much you are eligible to pay back to the lender, along with the principal amount. You would not want to be in a position where you end up paying more for you an interest rate, as compared to the principal amount, would you? This is where the EMI calculator will assist you, as it will it help you determine how much of an interest rate you are eligible for and how much you can afford. Since it also tied up with the tenure of the loan, you will also know how long you will be paying for the loan and the added interest rate.

Know how much of a tenure one can afford: As mentioned previously, the interest rate is tied up with the tenure. At the same time, each loan type will have different repayment tenures. For example, the home loan has a tenure of 10 to 30 years, which is a considerably long time, especially with a high-interest rate. But can you afford such a long tenure, especially if you will be taking on additional debts in the near future? Therefore, it is crucial that you are aware of your loan tenure so that you not only know how long you will be paying the tenure but also how much you can afford. Using any of the online EMI calculators, you can calculate the ideal amount that will suit your requirements.

Apart from these benefits, there are plenty more which you can consider. However, you must remember, that your lender may or may not provide you with the loan rates you have calculated through any of the online EMI calculators. But you can always use the information you get through the calculator to leverage for better loan rates.

NRI Banking: Key aspects of the account and the benefits you can gain from it

The NRI banking accounts are one aspect of the Indian banking system that is useful for NRI’s and OCI’s living or travelling all over the world. For those who are looking to invest back in their home country and yet remain flexible with their foreign funds, the NRI accounts can be a handy vehicle.

Given below are some of the key aspects of the NRI accounts and the benefits you can get from it:

Status when opening the account: When it comes to opening the NRI accounts, there is one major prerequisite for the application. An NRI or OCI status is required to be qualified to open this account. To be applicable for either status, you need to satisfy certain criteria as per the government’s requirements. You can always check the government’s website to know more about this pre – requisites.

Bank selection: There are plenty of banks that cater to the NRI needs while providing global services. As an NRI, you can always opt for an NRI banking account or service based on your personal or geographical preferences. If you need to compare the different options, rates or even offerings, you can always check their online website or call their representative to know more. However, ensure that the bank you have opted for is authorized by the Reserve Bank of India for NRI accounts.

Account type: One of the many benefits of the NRI banking is the different account types offered to NRIs. These different accounts cater to different needs while offering different features and rates. Most of the major banks provide plenty of information pertaining to the account and how it will match your financial requirements, along with the country you are residing in. You can always check out the different schemes available to the NRI’s on the official RBI website.

Account application:Traditionally, you would be required to approach the bank and fill out a form in order to open an account. However, keeping in mind the requirements of applicants who have settled or travelling abroad, major banks are now offering online applications. You can easily get the complete list of documentation requirements on the website apart from the account rates and banking rules. At times, there is an online account calculator that will help you calculate the ideal outcome you would want with adjustable rates.

The benefits of NRI banking account includes:

• Convenience: Your NRI account would provide access to the banking system, depending upon your local or foreign needs. This means that you can make a quick transfer of funds or exchange of currencies when required.

• Time saving: You can easily access your funds online. Now you don’t need to run to the bank before closing hours or even before the weekend.

• Interest: Most major NRI bank accounts allows the functionality to compare interest rates and potential earnings between home and abroad.

FCNR (B): All you need to know

While the financial market is known for its volatile trends and conditions, one of the upcoming trends that have captivated investors is the FCNR (B) schemes.  The FCNR (B) was a three-year foreign currency deposit scheme, which was held by Indian banks, sourced from NRIs in 2013. It was set to mature between back then and December 2016. While the RBI has taken the necessary precautions and steps to prevent a volatile outcome, there is a concern that the outflow could lead to an increase in demand for dollars. This, in turn, may lead to rupee unpredictability.

What is the FCNR (B) scheme?

During the financial year of 2013, the value of INR had dropped down to an all – time low of 68.85 Rs. against the USD. To bring about stability in theshaky, exchange rate, the RBI initiated a ‘swap programme’, which encouraged banks to attract sizeable dollar inflows in the form of the Foreign Currency Non-Resident (Bank) deposits.As a part of this programme, banks were encouraged to convince their NRI clients to deposit surplus USD at a fixed interest. At the same time, the RBI promised to shield banks from the exchange rate risk. On receiving the USD deposit in 2013, banks were allowed to switch these funds with RBI for a period of three years. At the same time, they would be required to pay a fixed cost of 3.5 % per annum. An amount of $26 billion was raised from the FCNR deposits to the RBI, in order to receive the rupee equivalent under this scheme.

What happened in the process?

Assuming that Rs. 60 per dollar was the exchange rate that was fixed for the swap agreement, an amount of Rs. 1, 56,000 crore would be given to the banks by the RBI. However, this would only happen after receiving the $26 billion from them under the swap agreement. After the three year period was fulfilled, banks have an obligation to swap back the sum that has tobe raised with the RBI. In turn, the central bank will provide the dollars needed for banks to repay their NRI depositors.

Why is it important for you as an investor?

In reality, the redemption amount of $26 billion, would be an enormous outflow of foreign currency. At the same time, the RBI has a build an immense reserve of approximately $367 billion, while bringing forward contracts on the USD to repay the banks. However, if the parties who have already sold these forward dollars to the RBI are unable to afford the payments, they will be required to step into the open market to purchase dollars. This in turn may spark an unpredictable volatility in the currency markets sooner or later. At the same time, the sudden outflow of capital from India could also restrict the domestic market liquidity during a short period.

Conclusion: If you were an NRI lucky enough to invest in the FCNR (B) deposits, you would have earned a comfortable ROI, especially with the strengthening of the dollar against the rupee. However, if you have had any foreign obligations, in the later part of the year, you might face a slightly weaker rupee value.