How to add a joint account holder to your NRI Account?

More and more Indians who have settled abroad are taking advantage of a double income. This includes earning an income through the foreign currency and investments in the home country.

This multiple complex financial functioning has been made possible through the introduction of the rules and regulations of the NRI account. Non – resident Indians are now allowed to open either the Non-Resident (External) or the Non-Resident (Ordinary) account based on one’s requirements. However, the repatriation rules for each of these accounts are different. For example, the NRE accounts are freely repatriable, whereas the NRO accounts are conditionally so.

Similarly, the requirements for adding a joint account holder to the account is also different. An NRI can be a joint holder with any resident Indian only on a former or survivor basis. However, the NRI can only add a non - resident mandate holder to his NRE account. In the case of the NRO account, an NRI or resident account can hold a joint account holder.

But why should you add a joint account holder to the different NRI account? There are several reasons, which includes convenient access and management of the account. It could also make the transfer of funds easier, especially of the recipient is a member of the family, where the funds repatriated are used for household maintenance.

In order to add a joint account holder to your NRI bank account, here are the steps you will need to follow:
Form: You will need to approach the bank where you have opened the NRI account, and request for a joint applicant inclusion request form. You can either get a physical form or down the form from the bank website. Follow the instructions on the form and fill up the respective details. If the customer is already an existing customer of the bank, he/she should also include the customer ID. 
Documents: As a part of the application process for the NRI bank account, the following self-attested document copies must be provided:

• Passport: Normally the first and the last page of the passport is required.
• Visa: Current visa is required
• OCI/Resident Permit
• Overseas address proof
• Initial paycheque of the joint applicant’s overseas account. If unable to do so, the passport and visa copy must be duly attested. It should be done by a foreign notary or Indian consulate general in the foreign country.

In the event the documents cannot be provided, alternate KYC documents permitted by the bank can be submitted.

Submission: Once all the forms have been completed and signed, along with the necessary documents, it can be given either at the overseas bank branch or the Indian branch. Alternatively, the documents can also be dispatched to the bank at its head address in India. In this case, most of the banks provide a PO box facility for these overseas activities. Once the documents are received and ascertained to be in order, it would take around 10 days for the process to be finalized.

Stay smart with your education loan with these 5 factors

No individual should begin their earnings with a debt to repay right in the beginning. In fact, this is a primary fear that prevents students from applying for a loan, in order to achieve their potential. After all, to start one’s earning paying off a previous debt will not leave one with sufficient funds for any other crucial expenditures.

On the hand, the education loan offers plenty of benefits, especially since it elevates the burden of spending one’s saving to gain a high education degree. By opting for this loan, a student can easily get the financial boost to apply for an education degree, which will not only promise a potential return but also put one above the competition.

Furthermore, the loan will help the student to save funds for any unforeseen or additional expenditures without putting a financial burden on them.

But while the educational loan will seem like debt, it, in fact, takes a proper requirement and strategic planning to efficiently afford the loan and repay the borrowed funds back. In order to ensure that your savings are kept safe, here are a few factors to keep in mind before you begin the application process:

Factor #1 – Availability: The education loan is normally available to Indian nationals only. These individuals must have a secured admission to a professional or technical course in India or even abroad. The selection process must be done through a merit-based procedure.

Factor #2 – Loan amount: Most banks offers a loan amount of Rs. 10 lakhs for courses in Indian colleges. For courses abroad, the amount can go up to Rs. 20 lakhs for studies abroad. However, the amount that will be finally provided will be in line with the norms provided by the Indian Bank’s Association.

Factor #3 - Co-applicant requirement: For the application of the education loan, a co – applicant is a must. It can include either parent, spouse or sibling. This is a precautionary step for both the applicant and the bank so that the combined financial profiles will offer a higher loan amount, and the bank will receive an assurance that the funds will be repaid back eventually.

Factor #4 – Provision of collateral: If the educational loan is less than Rs. 4 lakh then no collateral is required. For any loan amount that is higher than this amount, a personal guarantee is required from an individual who has an acceptable income and repayment capacity. For loan amounts higher than Rs. 7.5 lakhs, the lender will require a collateral security

Factor #5 – Repayment commencement period: The repayment procedure is not initiated right in the beginning. The process will begin six months to a year after the completion of the course. This is to keep the simple interest charged during the moratorium period.

Investing a portfolio investment: All you need to about investing

A portfolio investment scheme comprises of a passive investment of securities in a portfolio. This portfolio is made with the expectation of earning a return, in direct correlation with the portfolio’s expected risks.

Most of the schemes for the portfolio investment in India span a wide range of asset classes which includes, stocks, government bonds, corporate bonds treasury bills and real estate investment trusts. It also includes real estate investment trusts, exchange-traded funds, mutual funds and certificated of deposits.

The investments made in a portfolio depend on the investor’s individual circumstances or certain factors. These factors such be weighed against the investor’s goals and time horizon. In most cases, the factors include the following:

Creating a portfolio investment scheme roadmap: Before making any investment, you need to be aware of your entire financial situation, especially as a first timer. You need to understand your goals and risk tolerance. As there’s no guarantee that you will make money from all your investments, getting the right facts and details about your savings and investing will help you create an intelligent plan backed by the right financial security. In this way, you can enjoy years of benefits of managing your money.

Evaluate your comfort – risk zone: All investments, including the portfolio investment in India, involves some degree of risk. In the event you need to invest in a portfolio, it is important that you understand all the influential factors before you lose some or all of your funds. Not all investments schemes are protected by insurance. In certain investments, you could lose your principal. However, the reward for taking on risks offers a great potential for higher investment returns. If you have a financial goal with a long time tenure, you will have a chance to make more funds by investing in asset categories with fewer risks, as compared to investing in assets with fewer risks. Alternatively, you can also invest in cash investments that are appropriate for short term financial goals. However, there is a concern that investing in these cash equivalents will also include inflation risks, which can outpace and erode returns over time.

Consider the mix of investments: A portfolio scheme comprises of different investment categories, whose returns variate under difference market conditions. With this different conditioning within a portfolio, you can get the ideal protection against significant losses. In reality, the returns of three major asset categories such as stocks, bonds and cash have not fluctuated at the same time. That is because, market conditions will cause on asset category to do well, causing the other asset category’s returns to be reduced. By investing in more than one category of asset, you will help balance the investment risk and ensure an overall investment return. In this way, asset allocation, is important, as it will go a long way to meet your financial goal.

Advantages and disadvantages of sending money to India through mobile apps

When making a money transfer to India, there are various options you can consider. Some of the traditional channels of money transfers include in – house bank accounts, wire transfers, email transfers and even cheques.

However, with digitisation take up a prominence, more and more banks are offering services to send money to India through specialised apps. These apps are designed to be specifically used on the smartphone platform.

Some of the benefits of this platform includes:

Easy to use: It’s like a one touch pay, with no requirement to fill in your card numbers and passwords every single time. You can easily link your banking card or account details to the app and make the payment immediately.

No inconvenience regarding transfer amounts: When you make a money transfer to India through these apps, you need not worry about making a money transfer with amounts that have to be fixed. You can send any amount of funds, as per your requirement. This can be in even or odd amounts.

Make instant payments: It will be possible to make instant payments. This is especially useful for cases where a financial emergency occurs. Additionally, it also eliminates the lengthy waiting periods, which normally occurs during the traditional money transfer channels.

Everything under one roof: Through these apps, all your data from multiple platforms will be synchronised through one channel. Right from your bank accounts, banking cards, mobile accounts and bills, they will be interconnected on one platform. This will make it easier to manage and access, as it will be all under one roof.

Some of the disadvantages of this app include:

Mobile network connectivity: Mobile network connectivity is always the biggest impediment. Furthermore, both the sender and the receiver will need a fast, secure and reliable network connection to make a successful money transfer.

Mobile security: Alongside connectivity, security issues are also now on the forefront. Plenty of occurrences of money being misused through these apps has to make rounds, creating doubts and suspicion in the minds of users.

Insufficient support infrastructure: Indian still has to reach its peak potential when it comes to its infrastructure and financial literacy. Unless this requirement is met, there is no use in focusing on advanced technologies when the base is not strong enough.

Customer service is not up to mark: India does not have such a solid dispute resolution process. In the event an individual as an issue with the app, considerable time and effort will be taken to resolve the issue. Furthermore, the experience of most individuals with the customer service agents hasn't been encouraging.

While there may be disadvantages present through this channel, the advantages overweight them. By being aware of these disadvantages, you will know how to make the most of this money transfer services and make the most of this service.

NRI Banking: Tips on how to open your account and understanding the benefits of it

The NRI banking system has been designed to offer the best of banking facilities for those Indians who have been residing abroad, under the status of an NRI. Since most of these individuals earn in the foreign currency, the NRI services allow these individuals to invest their earnings and utilise them for both their foreign financial needs as well as their residential needs.

Some of the benefits of this service include:

Convenience: Most of the NRI accounts provide access to the banking system, depending on the financial needs of the NRI. Through these services, you can make a quick transfer of funds, or even make an exchange of currencies through a quick channel.

Time-Saving: NRI services gives easy access to your funds, whether physically or online. You don’t need to run to your local foreign bank or call a friend for a favour to access funds.

Diversification: For those are concerned about financial risks and the volatile conditions of the market, such as in Europe and America, this is one solution to diversify your investments and savings.

Interest: The NRI banking services allow you to compare the different interest rates of the different investment options. This will help you get the best of the interest rates and earning potential between your local country and the one you are residing in.

Currency Hedge: The currency hedge provides an advantage of minimising the currency risks, mainly the fluctuating rates. In the event, your savings are invested in the rupee, while the rest in dollars, then you will be effectively hedging yourself against any fall in the dollar value. This will also work against the value of the dollar if it goes up.

Keeping these factors in mind, you can now open your NRI bank account to invest your earnings and get the best out of your earnings. To open your NRI account, you need to:

Step 1 — Know your status: There is a considerable difference between holding a status of an NRI and holding a status of a PIO. As this factor is an important pre — requisite for most account applications, it is crucial that you have the necessary documents to qualify for it.

Step 2 — Select your choice of the bank: You can choose the bank that will offer you the financial services that you require. To know more about the bank services available, you can always check out the bank details on their website. However, ensure that the bank is authorised by the Reserve Bank of India.

Step 3 — Account type: Most of the banks offer information about the different types of bank accounts available, and what type of bank account you will need to opt for based on your financial requirement and situation. Once you are aware of the requirements, you can now easily begin the application process for your bank account.

Send money to India: What is the best solution?

If you need to transfer money to India, the good news is that, you have plenty of options you can consider. These options offer different features, right from low costs, safety, and quick service. You can even choose different transfer mediums, right from physical to digital transfers.

In order to choose the best services for yourself, you will need to balance out the following considerations:

• The amount to be sent
• The speed of the remittance
• Costing of the service
• Transaction safety
• Rate of exchange
• Fee for currency conversion
• Channel through which the recipient will receive the funds.

Once you have fixed these conversions, you can now opt for the different channels through which you can send money to India. Some of the popular options include:

Bank remittance: Bank remittance will always be one of the safest way to send money to India. Most of the major banks have money transfer services that will allow you to send funds from one location or country to another. In the occasion you need to send money fast, you can always opt for wire transfer. They are very cost effective, especially if you need to end large amounts. Through these mediums, you can easily transfer funds to the recipients bank account or banking card.

Online money transfer services: This is one of the most convenient and popular ways to transfer money to India. You can make this transfer through the computer, laptop and even your smart phone. In addition to this platform, you will also need to secure and uninterrupted internet connection. This option is best for those who want to send small amount. Depending on which online service you opt for, a percentage of the money to be transferred will be charged. Additionally, it may also differ based on the location or country you will be sending it to.

Money Transfer Operators: Certain money transfer operators, function as private money transfer services, with branches all over the world. They offer a convenient transfer service, which does not require the recipient to have the same money transfer channel as the sender. For example, the receiver does not require an internet connection in order to receive the funds. Getting the funds this way will also be convenient, since they have several branches in most countries. To avail this service, you will need to provide relevant details about your account details and the funds you will need to transfer. Furthermore, since the recipient can pick up the funds in person, precaution must be taken to ensure that the appropriate individuals pics it up.

When making the money transfer tips, you need to:

• Be aware of the sender you transferring your funds to
• Always check for hidden fees in the fine print
• Avoid giving out any personal information
• Keep proof of your transaction in the event you need it
• Check with the receiver if they have received the funds.

Why your credit card should be your best friend

When it comes to accessing funds on short notice, the credit card makes for a great benefit. This is beneficial, especially in situations where cash is difficult to be carried or used. This card offers the convenience of making payments and managing your cash situation.

Through this banking card, you can easily borrow funds through the lending bank, and repay pay it back as per your convenience. However, credit cards can either become an easy and convenient money tool, or the evil in your wallet which can easily turn into the root of all your money troubles. You need to exercise caution when using the card, so as to prevent it from harming your financial profile. Here is how it can be done:

It is a convenience, not a source of income: Through the credit card, you can easily access funds borrowed from the bank, as long as you stay within the credit card limit. This limit can be anywhere between minimum amounts of Rs. 2000 to a higher amount of Rs. 20,000. With this, you can easily swipe the card for your purchase, without having to fork out cash immediately. It will give you the feeling that you can spend freely, if not endlessly. However, at the end of it all, there will be a credit card bill you will need to pay for, wherein which, you will require the funds to pay for it. To avoid this situation, you must limit your expenditure to a certain limit, or until you can pay it off. This will help you avoid any unnecessary expenditures or even any additional interest rates.

Risks associated with failure to read T&C: The biggest risks associated with credit cards is the failure to understand the terms and conditions that come with the issuing of the card. In reality, this banking card is nothing but a cost-free, short term, which will benefit you so long as you pay the credit card balance on time. If you fail to do so, it will turn into a high-cost debt. To avoid this situation, you will need to take the time to know all the details about the card. This will include, how the interest that is payable is calculated, the conditions where the interest rates will increase and what type of card usage will attract fees. By knowing these facts, it will help you use the card properly.

Avoid pitfalls: You may think that paying off the minimum amount on balance will mean that you are done with your obligations for repayment. However, till the dues are fully cleared, you will need to pay in large amounts. For one, you will be charged a high rate of interest on the outstanding balance, in addition to all the purchases you make in the future till all your dues are cleared. At this point, if the dues are not cleared, you will not have any free credit period anymore, with all purchases being charged with interest immediately.