What are the benefits of the UPI money transfer system?

With the aim to digitise India financially, new and convenient methods to transfer funds is now being introduced into the market. One of these measures, is the introduction of the unified payment interface.

Known as UPI, this payment system allows money transfers between any two bank accounts, by using your smartphone. This is becoming a popular choice for many individuals who have settled abroad and needed to send money to India. Furthermore, there is no requirement to input any details pertaining to your card details, IFSC code or even your net banking or wallet passwords.

But how does this benefit you? You can take advantage of the following advantages:

Cheapest way to make a money transfer to India: UPI is becoming one of the cheapest methods to make a money transfer. If you are making a transfer through NEFT, you will need to pay a minimum amount of Rs. 2.5 for each transfer. Similarly, with the IMPS charge, you will need to pay a minimum of Rs. 5. But with the UPI charge, you will only need to pay less than 50 p for each transaction. Because of this low cost, UPI now offers the mean to make small money transactions without incurring a heavy transfer charge.

No requirement to submit details: One of the greatest inconvenience when it comes to making a money transfer to India or even from one bank to another account, is the task of inputting bank details. As this is a meticulous task, which requires you to carefully input all your details into the transfer, it often turns into a tedious job. Furthermore, any net banking transaction you make, by inputting the details, will increase the risk of exposing your bank account details. In the case of card transactions, you will be required to input your card number, validity period and CVV number. However, UPI solves this problem. You only need to provide the virtual payment address, which is quite similar to your email ID. Once you input this ID, there is no requirement for you to input any other details.

Comes with security features: Plenty of individuals, especially those who do not have any previous experience with this form of money transfer, are reluctant to opt for this kind of money transfer. After all, not everyone will have a card, or even use net banking for online payments. Furthermore, the lack of experience will lead to security concerns. After all, someone may take a look at your PIN number or even steal your net banking details. This is where the UPI will minimise this concern. When you want to send money to India or any local bank account, you only need to provide the virtual payment address, which gives no indication of your bank account. The authentication will take place only on your smartphone, which requires you to input two different PIN’s.

5 tips to consider when applying for your car loan

Gone are the days where a four-wheeler was considered as a luxury. Today, it stands as a symbol of essentially for most individuals as they travel to and fro from work. But while the car has become a solution for those who want to save up on time and resources, one inevitable factor remains. That is, how to financially afford the car?

Does one save up on one’s disposable income? Can one borrow from close friends or family? While these may be variable choices, the ideal choice lies in the car loan. With this loan, you can easily get access to funds to purchase the vehicle, along with the added essential and insurance. Furthermore, you can also easily repay back the loan in installments, over a fixed tenure of 10 to 15 years, which is ample amount of time for any loan repayments.

But like any other loan, the process to apply for a car loan will require certain considerations. After all, a loan is a debt that must be carefully considered, lest it turns into a lifelong repayment. Here are a few tips you can consider when it comes to applying for the car loan in India:

Tip #1 - Explore options: You must first shop around for the car loan like you would do with any other purchase. As there are plenty of banks and financial institutes that offer this loan with different rates, shopping around will give you an opportunity to consider all your options. You can approach the financial institute or even a car dealership to get an idea of what to expect in your loan for a car purchase.

Tip #2 – Nail down your research: Take your time to learn about the car – financial industry. Research about the loan rates on the open market. Know your financial history, and determine the deal you would get. If you take the time to understand the current scenario, you will know the appropriate time to apply for a car loan and get the best deal.

Tip #3 – Get your credit report: It is best to arm yourself with your credit report before you negotiate for a car loan in India. If you are aware of how good your credit score is, you will be able to push your lender to offer some concessions.

Tip #4 – Consider old models: Most of the dealerships are determined to get the older models sold before the new models hit the market. If these dealerships are tied up with the bank you consider for a loan, you will be able to pull off a better deal and complete the deal in-house with the right strategy.

Tip #5 – Know the brief terms: Don’t be convinced you’re getting the better deal with lower monthly payments, especially on longer loan terms. You must consider the overall annual rate you’ll end up paying. If you can't, calculate the effective interest rate, ask the loan provider to explain it to you.

Are you aware of the truth and myths surrounding personal loan?

Taking on a loan, such as the personal loan, will offer you plenty of benefits. For one, it offers you a lump sum amount. Furthermore, you can repay the borrowed funds, over a considerable period, on a monthly basis.

However, when you apply for personal loan online or even offline, you may have come across considerable information regarding this loan. While this information will play an important role in your decision-making process, facts are often lost in the abundance of the information. So how can you distinguish what is the trust and the myth?

Given below are a few facts and myths regarding the loan:

The interest rate is the most important factor to consider: When it comes to loans, there are plenty of factors you will need to consider. Amongst the different factors, the interest rate is one such factor that you will need to take into consideration. However, it is seldom the most important one to take into consideration, as other factors will also play an equally important role. Take, for example, the tenure of the loan. The tenure in accordance with the interest rate will determine the EMI value. If the tenure is too short a term, the EMI’s will be high. Similarly, all the influential factors will be required to be taken into consideration before you apply for the loan.

Personal loans will assist you in being financially stable: Owning to the nature of the personal loan, it is one of the loans that can be used to help you stay financial stable. It can be used to pay off a huge debt. It can also be used to for future financial expenditures, such as a purchase of the electronic device or even financing a holiday. Furthermore, you can repay the borrowed funds, over a fixed monthly plan, along with the added interest, through EMI’s. These EMI’s are carefully calculated,  in accordance with your income, your expenditures, current debts and your savings. This can be done before you apply for personal loan online or even offline, thus ensuring that you can afford the loan right at the beginning itself. Once you have experienced the process and repayment of the personal loan, you will have sufficient experience to take on other loans in other ventures of your life.

Personal loans can be used for several purposes: Unlike other loans, personal loans don’t have an extreme restriction on its usage. The loan can be used for several miscellaneous usages, such as purchasing a gadget like a phone, TV, laptop or other similar electronic device. It can also be used to pay off any previous impending debt, like a previous loan, bill payments, borrowed funds or more. Furthermore, it also is used to finance future endeavours such as a personal trip or even a holiday. However, this loan cannot be used for agricultural purposes.

Why should you opt for a single credit card over multiple bank cards?

Banking cards offer you plenty of perks, especially on the type of banking card you will be opting for. For example, ATM cards best used to withdraw physical cash, whereas debit cards can be used for online purchases.

No doubt, the best way to make the most of these card perks is to opt for multiple cards. While it does offer you several opportunities to save on your funds while getting the best deals, you also have the responsibility to keep track of all the cards you will be using along with the different limits or interest rates on it.

This is where credit cards comes handy. Unlike the other banking cards, you can borrow funds from the lending bank through this card. Furthermore, you can repay back the borrowed funds, with a small added interest, within a flexible period of time. Furthermore, the amount you can spend on this card can be controlled by the credit limit, which often reflects the income you earn.

So why should you opt for a single credit card? Here is how the benefits of the card will assist you:
Shopping decisions are made easy: Shopping with your banking cards will offer you plenty of reward points, deals and discounts. At times, banking cards have been known to tie up with certain retail outlets, giving you more deals and benefits. However, you will need to juggle all your cards before you can make a shopping purchase. But with a single credit card, you can easily make all your purchases on one card, and enjoy the benefits of collecting reward points and discounts on the same card.

Bill payments are made easy: Bill payments come on a monthly cycle, which makes it easier to pay especially if you set up automatic payments with credit cards. However, it will take the time to set it up and make sure you have sufficient time in your account. Furthermore, you need to ensure that you have the time to make sure things are running efficiently. However, doing it for several banking cards will be tedious. Therefore, it makes it very convenient if you opt for one credit card for this purpose.

Manage you expenditures: Having multiple banking cards especially if you like to splurge a lot is equivalent to an alcoholic in a bar. You always assume you have enough funds on your other banking cards to compensate for your expenditures. However, in the end, you may end up spending more than paying, putting you in a debt that can last for a long time. However, with one single credit card, you will be able to keep track of your expenditures. Furthermore, using the data that you get from your expenditures, you can reduce any unnecessary expenditures whenever and wherever possible.

6 Tips To Choose Right Life Insurance Plan

Financial emergencies arise anytime. This is one major reason why having insurance for you and your family is important. You will find there are different insurance policies available. You are advised to choose the one that meets your needs. Out of different insurance policies, the one that is most considered is life insurance. As the name suggests, life insurance policy is basically a contract with an insurance company. An insurance company offers a lump sum amount of money on the premium payments you make, either on the monthly, quarterly or yearly basis. Before you take a life insurance, some aspects need your attention. It includes:

#1 - Know Whether You Need It:
You are highly advised to go for the life insurance if there is someone say for example your relative or family dependent on you financially. You can easily purchase a life insurance policy by submitting all the required documents. The coverage depends on the type of insurance you choose. Apart from this, if your family relies on your salary to pay the mortgage, support the family and so on, then life insurance is definitely made for you.

#2 - How Much of Life Insurance You Need?
Well, you cannot actually judge this aspect, as it depends on various factors including your source of income, the dependents you have, the debts and more.

#3 - Know the Types of Life Insurance Policies
You should know there are different types of life insurance plans. You are advised to choose the one that meets your needs and requirements. Some of the major types include whole life plan, term life plan, endowment plan and so on. 

#4 - Know the Coverage or Sum Assured
Another vital aspect one needs to keep in mind is know the coverage or the sum assured. You definitely do not want to commit a mistake of under-insuring yourself, right? The best way to determine the same is by following the thumb rule, which is approximately 8-10 times your gross income.

#5 - Choose Right Insurance Company
When talking about life insurance, it is wise you get in touch with a reliable company. Ensure the company you are applying with offers all the details needed to make a wise decision. Ensure the agent is well-versed and knowledgeable with all the details in place. Ask as many questions you have regarding the policy. It is one of the best ways to know whether the company you are applying with is reliable.

#6 - Consult A Financial Advisor
You should know it is all about your money and hence taking a right decision is important. You can get in touch with the financial advisor if you have any questions or queries regarding the life insurance policy.

Top Three Insurance Policies Everyone Should Have

Life is full of surprises. You do not know what will happen to you tomorrow or this very instant. Considering this aspect, it becomes important to be financially stable, especially in the case of any emergency. This is where the importance of insurance policies come into the picture. They are your saviour and works towards helping you get out of any emergency. It further ensures you are secured even during a financial crisis. All your financial needs are well taken care of by an insurance policy. This is one reason why you will have people telling you to have different insurance policies. When talking about the same, mentioned are top insurance policies every individual should have:

Life Insurance:

As the name suggests, life insurance helps in protecting the people that are financially dependent on you. In the case of death, your parents, spouse or children can use your life insurance policy in case of any financial hardship. You are advised to purchase a life insurance policy keeping in mind the number of years you plan to earn, and years you plan to remain employed. Always remember the life insurance policy should be able to replace the income in case of any emergency event. Life insurance is basically to secure oneself and also family when the ability of the person lessens or is unable to earn

Health Insurance:

Another insurance you need to consider is the Health Insurance. It is one of the vital insurance plans and should be considered by people of all age groups. With the increasing rates of medical care, people now prefer having health insurance in place. It has become a necessity as it takes care of all the medical expenses incurred during your hospital stay, surgery and so on. You can procure benefits of the health insurance for injuries that require surgeries, or for injuries or illness that requires a hospital stay. It helps in covering the medical costs. Health insurance plan is created with healthcare expenses estimate a person might face. Premiums are further determined by such estimates.

Automobile Insurance:

Also, referred to as vehicle, car or motor insurance, automobile insurance helps in securing a person in case of any road mishap. Accidents happen without any notice. A person is liable and is subject to a lawsuit in case you are involved in an accident or if someone is injured or the property is damaged. However, having an automobile insurance helps in covering all the costs. Automobile insurance is bought for securing various road accidents from motorcycle, truck or car.  

Other than the ones mentioned, there are also other insurance plans one can consider. These are further available with different features, benefits and prices. You are advised to choose the one that best meets your requirements and preferences.

Debit Cards – All You Need to Know

When demonetization happened, it was debit and credit cards that helped you go through this situation. They were basically your saviours. You can rely on them to meet your everyday needs. Among credit and debit card, it is a debit card that is most considered for the fact; the processing charges are less. Furthermore, it is convenient to use. This has further led to the growing demand for debit cards. To meet the increasing needs, banks are now offering different types of debit card with different and interesting features. The features can be availed by the Cardholder with the offers or with the buyers.

Having a debit card is a relief when you run short of cash. All you need to do is swipe and use the card at any outlet, whether restaurant, shopping centres and more. Your debit cum ATM card can be used in ATMs too to withdraw cash. Having a debit card works in your favour. Some of the benefits include:

• Cheaper – One of the greatest benefits of having a debit card is, it is cheaper. In short, an individual stand to earn some amazing discounts, whether on shopping, fuel, entertainment, dining, or travel and more.

• Smarter – Cannot find an ATM with cash, worry not as you can now use your debit card for end number of purposes.

• Safer – Transacting through debit card is completely safe as it is protected by a pin. Furthermore, all the online transactions too are safe as they are verified, and a one-time password is sent to the person to continue with online transactions. Other than this, they are offered with chip cards for added security.

Types of Debit Cards

Online Debit Systems:
As the name suggests, these cards are majorly used for online transactions. These type of debit cards require electronic authorization for every transaction you do. Furthermore, the user is notified of the transactions immediately. For added security, the transactions are secured with Personal Identification Number (PIN). In this, the user is required to input the pin on every transaction. Apart from this, for added security, a user also must add the CVV number which is majorly at the back of the debit card. It helps you enjoy cashless shopping experience whether in the store or online.

Offline Debit Systems:

Offline debit cards majorly hold either of the two major logos, Visa or MasterCard. Some of the major debit cards also hold Maestro in the UK. This type of debit card comes with a daily limit or in simple words, maximum limit. It takes around 2-3 days for all the transactions done on the offline debit card to be reflected in your account.