Demat Account – Know the Working and Its Types

When talking about shares, the best ways to hold it is by having a demat account. It is a great way to hold all your securities in the easy and secure way. It further eliminates the risk of any theft, loss, damage or forgery of the certificates.

What is Demat Account?
It is basically an account which is used to hold all the shares in dematerialised or electronic form. It is just the same as any other accounts. A demat account does the job of holding all the certificates like bonds, shares, government securities, exchange-traded funds, mutual funds and more. An individual cannot trade in a stock market, unless, a person has a demat account. Upon approval, all shares and securities are transferred to your demat account directly. All the information regarding your demat account is readily available online by logging into your account. So, instead of physical possessing of all the important documents, it is wise to have a demat account.

Types of Demat Account

There are two major types of demat accounts:

Repatriable Demat Account – In this, the repatriable funds are deposited in another bank account like Non-Resident External (NRE) account. The funds in this account can be transferred abroad. All the investments done using these funds are maintained in the Repatriable demat account.
Non-Repatriable Demat account – The non-repatriable funds are deposited in a separate bank account, majorly Non-Resident Ordinary Rupee (NRO) account. These funds cannot be transferred abroad. All the investments done from these funds are deposited in your non-repatriable demat account.

Working on the Demat Account
Trading through demat account is same as physical trading. The only and major difference is that it works through electronic means. Through your online trading account, you can place an order to begin trading. For the same, it is important to link demat and trading account. The exchange will process the order only when the order is placed. Before final processing, the order, the demat account details, availability of the shares and market price of shares is verified. Shares are further reflected in your holding’s statement once the process is completed. In case, the shareholder wants to sell the shares; it is vital to provide the delivery instruction with stock details. Furthermore, the shares are debited and your trading account is credited with the equivalent cash amount.

Opening A Demat Account

When it comes to opening a demat account, it is vital to fill up the account opening form along with the required documents like PAN card as identity proof, existing financial balance sheets, a copy of residence proof and passport size photograph. For verification, it is wise you carry the original documents too. Typically, it takes a week or two to open the account. But, the period can extend to 15-20 days if the processing is taking longer than expected.

A Complete Guide to Car Loan EMI Calculator

Buying and owning a car is every individual’s dream. However, the increasing rates of the same make it difficult to own one. If lack of finances is what is holding you back to buy your dream home, then car loan is the answer for you. As the name suggests, it is a great choice to buy the car you had always wanted. No matter, whether you want to buy a new car or a used car, you can blindly rely on car loans. Several banks and financial institutions offer them with attractive interest rates and flexible repayment tenures. Before you apply for a car loan, it is wise you check your Emi using car loan EMI calculator:

Car loans have gained immense popularity, all thanks for making it possible for people to own their dream car. Before you apply for a car loan, knowing your eligibility plays a major role. For the same, your income level and your credit score are well taken into consideration. A poor credit score can lead to rejection of your car loan application. When talking about car loan paying the whole amount at one go becomes difficult. This is where the importance of Equated Monthly Instalment (EMI) comes into the picture. It is basically the amount that one needs to pay on a monthly basis to the bank or the financial institution. It is important for the borrower to pay the loan completely. It also includes interest rates which are offered along with the principal amount.

When it comes to calculating your car loan amount that has to be paid on a monthly basis, you have advised to us the car loan EMI calculator. It is one of the best ways to know the exact amount that has to be paid to the bank or the financial institution. Mentioned are some parameters that play a major role when using the car loan EMI calculator. It includes:

• Interest rate
• Loan amount
• Tenure periods
• Processing fees

A car loan calculator simplifies the whole process of applying for a car loan. It further helps you to choose the loan that best meets your needs and requirements. This further makes it easier to manage your monthly budget to handle the car payments. Apart from helping an individual know the interest rates and the loan amount, the car loan EMI calculator also tells whether or not the loan amount will be available. The EMI calculator does the job of calculating the assets and the condition to determine the repayment liability better.

In short, a car loan calculator is a perfect guide to help an individual understand the policies, plans and the payment procedures.

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.