Top 4 Tips to Follow Before Applying for a Personal Loan

A lot of individuals often rely on personal loans as it is one of the best ways to bear any expenses whether for education, wedding, medical and so on. Though personal loans serve to be a better option, it is wise that you apply for the one that is right for you. A number of factors require your attention for the same. To make it easier, mentioned are personal loan tips every individual need to follow to avoid any problems later. Get help from the personal loan EMI calculator to know more.

Opt for Emergencies Alone

It is quite understood that personal loan is a feasible solution as it can be used for end number of things. Furthermore, it requires minimal paperwork and requires no securities.  However, you are advised to apply for the same during emergencies alone. Consider personal loans to be your last option. One of the major reason for the same is because personal loans are expensive after credit card loans. You are highly recommended to apply for a personal loan when you want to get out of an expensive debt.

Know the Interest Rates

You should know every bank offers different interest rates. Considering this aspect, it is important you compare the interest rates and choose the one that meets your requirements.

A small tip: A big loan for a longer period of time tend to reduce the monthly repayment amount, but the interest rates tend to be larger than the one you buy for a shorter term.

To get an idea of what percentage of interest rate you will be paying, you can use the personal loan calculator. It will give you a rough idea thus helping you make a wise decision.  

Do Not Send Too Many Applications

While you are searching for the best personal loans, you are highly advised not to send too many applications. Though you might find this easy as you think at least one of the bank or lender would accept it, it is not a feasible option. When you send too many applications for the personal loans, it tends to affect your credit score. Furthermore, it shows you are applying for personal loans with many banks with the hope to get more loan amount. This is one of the major reason why a lot of personal loan applications gets rejected.

Do Not Forget the Foreclosure Clause

Banks and other financial institutions tend to offer personal loans but, do not admit on the partial repayment of the loan. Banks want their customers to continue paying the Equated Monthly Installment (EMI) as the high-interest rate is charged. Keeping the same in mind, it is wise you review the prepayment charges with each bank. This is application especially if you prefer to pay off your loan amount in lump sums. Use EMI calculator for a personal loan to get an idea of how much of loan amount you will be paying on a monthly basis. This will help you be prepared and keep the desired amount ready.

Benefits of Current Bank Account for Businesses

Banks offer you with numerous options when it comes to securing your finances like savings and current account. Each of this account type offers benefits. Savings account work in favour of individuals who want to save to meet their financial requirements in the future. While current account works great for individuals who want to support their regular and frequent transactions. This is one of the primary reason why the current account is majorly considered by businesspersons to carry out their regular banking transactions.  

Apart from businessmen, the current account is also used by freelancers, sole proprietors and so on. Some of the major benefits of having a current account include:

Professionalism in Business:

Professionalism is what is needed when you deal with business acquaintances. This further helps in enhancing your business image and grow effectively. Having a current account for business makes it easier for every transaction. Furthermore, you can have a cheque with the name of your company.

Separate Business Finance from Personal Finance:

When you have a current account, it makes easier to know what belongs to your business alone. A lot of people tend to neglect the importance of opening a current account thinking they can use their savings account for the same. However, when you are dealing with a business acquaintance, it becomes important to have a different account. Hence, the importance of current account. It further helps in separating your personal finance from business finance. This actually works to the benefit of the businesses making it easier to plan your finances. Other than this, it also helps you know how much your business is earning.  When you use your savings account for both business and personal use, you do not get to recognise whether the business is running at a loss, or if your personal finances stable.

Know the Credit Score:

There are times when lenders and creditors tend to ask for your credit worthiness or score before advancing with the credit. Hence, operating a current account makes it easier for this process. You can easily check for your credit worthiness using the inter-bank connections.

Overdraft Facility:

Another vital benefit of a current bank account is that an individual can avail the overdraft facility without any hassle. In short, the account holder can easily overdraw the balance in the account, but on a temporary basis. You can say, it is like a short-term borrowing. The same facility cannot be availed when you have a traditional savings bank account. Having a current account helps in meeting your need for money on a short-term basis.

These are just some of the benefits associated with having a current account in a bank for businesses. Get in touch with the experts for more details.

Top Reasons to Invest in Fixed Deposits

Life is full of uncertainties and hence saving money is of paramount importance. This is where the importance of fixed deposit comes into the picture. Before you continue, it is wise you know what a fixed deposit is. In simple terms, fixed deposit is basically an instrument in which the investor gives a certain amount of money to a bank. Furthermore, the bank pays the amount with interest on the deposit. The rate of interest tends to vary depending on the tenure and the amount. A fixed deposit calculator can be your perfect guide in helping you understand the interest rates. Fixed deposit is a lucrative investment option as you stand to earn great interest with the tenure:

Mentioned are some reasons that tell why fixed deposits are a great investment option:

Great returns:

One of the greatest benefits of fixed deposits is that it offers great and guaranteed returns. It is not the same as investment in the commodity or stock market. You should know fixed deposits are not a risky investment as the returns are not dependent on the fluctuating market rates. In simple terms, investors can rest assured that the investment is in safe hands. It is guaranteed that the investment gets the designated amount at the tenure end. 

Flexible in nature:

Fixed deposits can be taken based on your needs. Some take it for a tenure of one month or even one year or 10 years. In simple terms, the fixed deposits can be invested for any tenure you want. You should know, if you choose a fixed deposit of five years, then it will be kept for that many years alone. The interest for the same depends upon the years you choose. For the same, you can use the fixed deposit interest calculator. It will give you a brief idea on how much of interest you are entitled to based on the years you choose.

Easy Withdrawable:

Though it is said that fixed deposits cannot be withdrawn within the tenure, you should know you can withdraw them, but with a small penalty. It can be due to any reason, whether to meet the financial emergency for marriage, education, medical purpose and so on. The penalty for the same is much less than what is there in the stock market. Fixed deposits can be withdrawn anytime, but an individual stand to lose a certain interest income.

You are highly advised to invest in fixed deposits with different banks. In this way, you do not break one fixed deposit for any emergency. Apart from this, also remember to choose the right tenure as an individual will have to consider the lock-in period too. If an individual withdraws the amount before the tenure, then the returns tend to get lower. Make use of the FD calculator to know how much you will earn from it. Furthermore, it also helps you identify the maturity amount and the interest earned when you open a fixed deposit.

NRI Fixed Deposit – All About It

What exactly is an NRI Fixed Deposit?
Every individual tends to have a fixed deposit as it serves as security in times of need and emergencies. The same applies to Non-Resident Indian (NRI) fixed deposits. It is opened in one of the banks of India. You will find a number of banks offer various and customised NRI fixed deposit schemes and NRI fixed deposit rates. This further works as a perfect tool for savings. However, you should know as compared to a traditional savings account, NRI fixed deposits are high interest yielding financial products. The interest rates of the fixed deposit are paid until a specified maturity date. Several banks offer NRI fixed deposits at competitive interest rates for different tenures. You can choose the one that meets your needs.

Eligibility for NRI Fixed Deposits:

When talking about NRI fixed deposits, it is wise to know the eligibility criteria for the same:
• The NRI fixed deposit can be opened jointly or individually with other Non-Resident Indians.
• Only a Non-Resident individual of Indian nationality or Indian origin is eligible to open an NRI Fixed deposit account. 

Some Vital Things to Know:

• The interest rate is calculated on a quarterly basis, for all the fixed with tenure of six months and above.
• Interest is calculated at simple rates for the fixed deposits schemes tenure of below six months.
• All the interest earned during the previous quarter is later added to the principal for interest calculation.
• The interest rates for fixed NRI deposits is calculated on every quarterly basis.

Benefits of Investing in NRI Fixed Deposits:

There are great benefits associated with NRI fixed deposits. Some of them include:

• An individual stand to earn great interest rates on the savings than traditional savings account by investing in NRI fixed deposits
• There are certain NRI fixed deposits are non-taxable. Say, for example, a fixed deposit when opened through an NRE account is non-taxable.
• With prior notification, banks offer premature withdrawal of Non-Resident fixed deposit. However, you should know, the deposit is qualified for interest only when it is carried on for a certain period of time as designated by the bank.
• Apart from this, several banks also offer loan against certain NRI fixed deposits. Say, for example, an individual or NRI can get loan against the NRE fixed deposits
• An NRI fixed deposit can be easily renewed on maturity.
• Account like Foreign Currency Non-Resident (FCNR) and Non-Resident Ordinary (NRO) are eligible for tax concession

Now, that you have all the details needed, the next step is getting in touch with any bank and open your NRI fixed deposit account.

NRI Account – All You Should Know

With the number of Indians staying abroad, it has become important for them to have a Non-Resident Indian or NRI account. No matter whether you are residing abroad for business, employment or vocation purpose, it is vital to have an NRI account. When it comes to opening an account, ensure it is authorised by the Reserve Bank of India (RBI). There are great benefits associated with opening an NRI account. One of the greatest benefits is that it helps you earn tax-free interest in India.

Who can Open an NRI Account?

As the name suggests, it is solely made for Non-Resident Indians. In simple terms, individuals who are living abroad for employment should open an NRI account. Furthermore, the account can be maintained either in the rupee, or any currency, like the dollar, pound, euro, sterling and so on. An NRI can easily, maintain, hold, open and maintain various banks accounts with an authorised bank. It makes easier to deal with the foreign exchange. 

Know the Different Types of NRI Accounts

Non-Resident External (NRE):

One of the different types of an NRI bank account is Non-Resident External (NRE). This account type can be opened as current, savings, fixed or even recurring deposit account. Maintained by Indian Rupees (INR), all the deposits of foreign exchange done at NRE account are converted to Indian Rupees by the banks at the buying rate. One of the greatest benefits of NRE account is that the interest earned from this account is completely exempt from the income tax. Furthermore, this account type can be held jointly by more than one NRIs.

Non-Resident Ordinary (NRO):
The funds or money held in Non-Resident Ordinary (NRO) are in Indian Rupees just as NRE account. Furthermore, this account too can be savings, fixed, term or current. A regular bank account too can be converted into an NRO account in case the person becomes an NRI. The main difference between NRO and NRI account is that a person cannot repatriate money from the NRO account. In simple terms, the funds held in the NRO account has to be used for local payment and in Indian Rupees.

Foreign Currency Non-Resident (FCNR)

Another type of NRI account India is Foreign Currency Non-Resident (FCNR). This account can be opened in the form of term deposit. The maturity of this account ranges from one to three years. The currency used in this account is US dollars, Euro, Pounds Sterling and Japanese Yen. All the interest and principal earned on this account can be transferred outside India in the same currency or convertible currency. FCNR account can be opened either jointly with a close relative or survivor basis.

These are the top three types of NRI accounts. Choose the one that best meets your needs.

All You Need to Know About Portfolio Investment Scheme

Non-Resident Indians are always looking for investment options that will prove beneficial in the long run. If you are too one among them, then portfolio investment scheme is an answer for you!

What is Portfolio Investment Scheme?

Portfolio Investment Scheme (PIS) is basically a Scheme of Reserve Bank of India that helps both Non-Resident Indian (NRI) and Overseas Corporate Body (OCB) to sell and purchase shares and convertible debentures of Indian companies on a documented stock exchange. It allows NRIs to invest in the shares of the Indian companies in the secondary market, under non-repatriation and repatriation basis. It covers a number of securities like bonds, stocks and other types of investment vehicles.

You should know, Portfolio Investment Scheme is all about reducing risks than growing returns. An investment can be easily made under both repatriation and non-repartition basis, but then it is important for the NRI to open a Non-Resident Rupee (NRE) and Non-Resident Ordinary Rupee (NRO) with any of the bank. The sale that is acquired of non-repatriable investment should be collected in NRO account only. Furthermore, it is important for the NRI to have a separate bank account, especially for PIS purposes.

Some of the key features of the NRE portfolio investment in India includes:

• When it comes to investments, it is essential for an NRI to have a PIS account. The same account will be used for investments in the secondary market on repartition basis. When it comes to investments on non-repatriation basis, it is vital to do it directly from the NRO savings bank account. Non-Resident Rupee (NRE) PIS account is independent which can be used by NRIs for their needs. All the sale and purchase transactions are well captured and are further reported by your bank to the RBI.

• It is wise to know that NRIs cannot hold more than one PIS account with multiple banks. An NRI should submit all the original sale and purchase contract notes within 24/48 hours of contract execution to the designated bank with whom your PIS account is maintained.

• Another vital aspect an NRI should know is that all the shares that are purchased on the stock exchange under the portfolio investment scheme cannot be in any case should be transferred by way of sale under private arrangement. Furthermore, it should also not be given as a gift to a person who is a resident of India or outside India without prior permission from the RBI.

• NRIs that hold valid PIS permission can trade in convertible debentures and shares of the Indian companies that are recorded on recognised stock exchanges, whether on repatriation or non-repatriation basis.

• Your PIS account can be operated by your friend or relative only when you avail the mandate of power of attorney facility. This makes easier for your relative or friend to conduct the transactions on your behalf.

Get to Know Different NRI Investment Options

Indians who have settled abroad have the right to invest in India. There are a number of safe NRI investment options in India. However, before you invest, it is of paramount importance to understand the tax implications, including both capital gains tax and income tax. One of the major reason why Non-Resident Indians (NRIs) prefer investing in India is that of the higher returns on conversion. NRIs are eager to invest in India considering the fact it is emerging country. Mentioned is the list of the investment options for NRIs:

Direct Equity:

If you are someone who wants higher returns on your investment, then Direct equity is the answer. Investing in stock markets is one of the best options for lucrative NRI investments. However, it is wise that you keep track of the stock market for best results. These markets are sensitive and observing it regularly is of paramount importance. In order to invest in the same, all you need is bank, trading and demat accounts. As you are an NRI investor, you might even have some special services.  You either have the option to invest for a short-term or long-term. The returns depend on the investment and trading strategies you use. You should be prepared for any risks as the prices tend to fluctuate in the stock market.

Mutual Funds

Another NRI investment option is mutual funds. Mutual funds do the work of safeguarding your assets. However, before investing, it is wise to check the asset management’s company’s rules. A lot of mutual funds offer NRIs with Systematic Investment Plan (SIPs) that further allows an investor to break the total investment into either quarterly or monthly investments. It is wise to invest on the repatriable or non-repatriable basis. Have a Non-Resident Rupee (NRE) or Foreign Currency Non-Residential Account (FCNR) account with a bank in India, if you plan to invest on a repatriable basis. In this, the investment money is sent through usual banking channels. While if the investment is made based on non-repatriation, it offers funds from the Non-Resident Ordinary Rupee (NRO) or NRE/FCNR account of the investor. 

Realty Investment

Real estate investment plays a major role in ensuring you get high returns. As compared to direct realty investment, Real Estate Investment Trust (REIT) is more liquid. An NRI can invest in either commercial or residential property, but cannot invest in agricultural lands.

NRE / NRO / FCNR Fixed Deposits
An NRI can easily invest money in a Non-Resident External (NRE) or Non-Resident Ordinary (NRO) account. It is one of the most considered NRI investment in India. The money held in these two accounts is in rupees. An NRI can access this as a term deposit account, a normal savings account or even current account. You can even consider investing in FCNR account in which the money is deposited in foreign currency.