What are the basic types of insurance policies available to us?

Term insurance:

These are the most elementary form of life insurance. Term insurances provide life cover with no savings or profit component. The term insurance plan is the cheapest of all other insurance plans out there because the insurance premiums too are very cheap when compared to the other kinds of insurances out in the market. The lower insurance premiums are because of the pure life coer that are given by the online term insurances. The fixed sum that is assured is given to the beneficiaries if the policy holder expires during the policy term however if the death of the insurance policy holder doesn’t happen, no money is given to the beneficiaries.

Endowment plans

The endowment plans are very different from the term insurance particularly in the maturity benefit aspect. Term plan pays out the maturity amount along with profits earned only on the occasssion of the death pf the insurance policy holder and Endowment plans pay put the sum insured in the case of the survival or the death of the policy holder. While this definitely can be taken as a benefit, the down idea of it is that these endowment plans have a greater premium, higher fees and expenses. The profits are the premiums that we invested in the asset markets as equities and debts.

Unit link insurance plans

The unit link insurance plan is a little tweak on the conventional term insurance, they pay out the assured sum or the investment portfolio only if it is higher on maturity. The performance of the unit link insurance plans are linked to the markets. The insurance policy holders can select the allocation to the stock and debts. The value of the investment portfolio happens through the net asset value.

Whole life policy

Such types of insurance policy covers the insurance holder’s whole life. The main benefit of the whole life insurance policy as the name suggest is that the value of the cover is undefined and therefore the benefit of the insurance is enjoyed by the insurance policy holder for his entire life. The policy holder pays premiums until his death and on the occasion of his death the corpus is paid to his beneficiaries or his family. The expiration of the policy happens only in case of an eventuality because there is no pre-defined tenure of the policy.

Money back policy

This kind of insurance policy is a variant of the endowment policy. It gives out periodic payment over the entire term of the policy. A part of the assured sum is paid out at regular intervals. If the policy holder lives through out the, he is entitled to the balance sum assured, in the occasion of the death of the policy holder the beneficiary gets the complete sum assured.

Do you know what a two wheeler loan EMI calculator is?

India has the highest numbers of two wheeler in the world! Yes, it is a fact! The reason behind this is the economics and the logistics of the country. For the most of the citizens of the country the most convenient way of travelling is a scooter or a bike. Biking has become a huge business in the nation. In the last few years the nation saw the advent of many international bike brands in the country. There are so many that it is no almost a clutter and one doesn’t know which one to pick. There are so many choices on the platter that it becomes difficult to pick one. However not everyone has the finance to independently own one and hence it makes absolute sense to go in for a loan and own a two wheeler for yourself. Today almost all banks of the country offer two wheeler loans.

However before picking up a bank for a two wheeler loan, it is better to weigh the pros and cons of a particular lender. Because of the rise in the trend of online banking g today picking one lender who has good financial terms is not a difficult task. Banking has become far more convenient and easy and decisions are on a roll. The banking procedures have become extremely transparent.  And for a lot more convenience and ease, some of the bank websites and other financial institutional websites offer the option of a Two wheeler loan EMI calculator in which you can actually calculate how much EMI you have to pay on the loan amount that has been sanctioned for your two-wheeler.

Did you know what an Two wheeler EMI calculator is?

The two wheeler loan EMI calculator is an online tool that is made to calculate the EMI amount that has to be paid by you on the loan amount that has been sanctioned to you for your two-wheeler.  You require to put in the details of your loan and post which you will see the monthly EMI that has to be paid by you on loan amount.

It doesn’t just end there, along with that  you will also get a lot of additional information that will help you zero in on the most appropriate terms. Then once you know the EMI you have to pay every month, it will be easy for you to fix your budget keeping that in mind as well.

Some of the main upper hand of using a two wheeler EMI calculator

Using an two wheeler EMI calculator lets you know the EMI value, it helps you know more about the terms and choose the best suited for you, it also helps you in comparing the rates of other Two wheeler loans that are being provided by other banks or other financial institutions, it helps you in negotiation of the rates of interest, it also provides a break up of costs involved int eh loan such as the charges and the processing fees, it also provides the EMI amortization table  that provides a monthly break up of the principal amount and the interest charges levied.

Three main types of bank loans available in India

There are multifarious loans that are available for people in India. From buying houses to setting up a personal business all can be done wit the aid of loans that are available in the market today.

Let us have a look at the different kinds of loans that are available today

Home loans: home loans are availed by people who want to buy homes or make any construction or perhaps renovation and extension of their houses, apartments or flats. They can also be made use of while trying to procure land or payment of stamp duties. The home loans available in India have fixed and at times adjustable rate of Interest and the payment terms are fixed and adjustable too. There are various kinds of home loans as well. They are well categorised into the following groups.

1. Home purchase loans
2. Home construction loan
3. Land purchase loans
4. Home extension loan
5. Home renovation loan
6. Loan against property
7. NRI home loan

Personal loan

The individual who wants to procure a personal loan from a bank or a financial institution has to first get his credentials verified, his credit ratings are then checked. All of this is done based on the profession they are in and what is the source of their income and whether they have a regular income or not. The personal loan can be utilised for any personal purpose. It might be used for a wedding, personal expenditure, vacation spends so on and so forth. The personal loan requires no collateral and security. This is another reason why the interest rates of the personal loans are pretty high because of the stakes. The loan processing fees amounts to two percent of the total loan amount. The disbursement takes about a week from the date of the application of the personal loan and the interest starts off only when the disbursement of the loan has been done.

Educational loan

Education loan

Educational loans are mostly utilised by students in order to fund their education. This loan is generally availed for higher education. This loan helps the students with their fees of the institution that includes, examination and library fees;travel expenses for abroad, costs of books and equipment that are required. This loan also includes any insurance for the student. The loan also includes additional expenses of thesis, project work, educational tours so on and so forth. The terms of the educational loans are different with different banks. For studying in India Rs 10 lakh is the average and for studying abroad Rs 20 lakh is the average. For an amount of around Rs 4 lakh the parents should be the joint borrowers and for an amount that is above that a tangible asset security is required.  The repayment begins between six months and two years of the completion of the course.

Car loan

It is much easier to avail a car or a vehicle loan when compared to the other loans in the market They involve lesser paperwork and around a week’s time to be processed and getting the clearance.  The interest rates vary from various banks and that depends on their base rate,. Repayment is the same old EMI’s and it also has early repayment options.

Did you know these four facts about inactive savings bank accounts?

This comes to pass exactly during your no bank transaction period that extends for more than 12 months. When there is no transaction done in the bank account, the account automatically changes into an inactive account. The bank then waits for another period of twelve months for the customer to begin another transaction on the same savings bank account that have already been classified as inactive, but still if the customer fails to make a transaction on the account, the bank account then becomes dormant.

One thing worth noting is that the word ‘transaction’ in the banking lingo pertains to any business dealing that has been started by the bank account holder or the bank customer these transactions might be a debit card transaction, a money deposit transaction or a cash withdrawal transaction or internet banking. However the transactions that are initiated by the banks for instance, if any extra charge or fee is levied on your savings bank account, they are not taken into consideration while categorising your account into an inactive or dormant account. But this doesn’t mean that in a fixed deposit account any amount of credit that is earned by the customer is not regarded, it is and also lets you keep your bank account active.

What is the main reason behind banks to categories saving bank accounts into dormant or inactive ones?

With the amount of fraud and fraudsters increasing everyday,the banks too, wants to do away with the risks of any untoward happening in your savings bank account. Once they categories the account as inactive or dormant, the banks alert their staff about a likely contigency that might materialise with your savings bank account and before any fresh transactions can happen in the same bank accounts, they make sure that a thorough diligence check is done.

There are limitations on inactive and dormant accounts – What are they?

There are various limitations put by the banks on inactive or dormant accounts and yet these limitations differ in every individual bank. There are some banks who put a lot of check on phone banking and internet banking as well, there are some banks that put a lot of constraints on cheque transactions as well. An example would be HDFC bank. It bars internet transactions, ATM or Debit card transactions and phone banking as well on dormant saving accounts. HSBC being a global bank, in India it doesn’t allow internet banking, phone banking, issuing and renewal of ATM or Debit card, cheque book requests, cheque transactions, request to change the address and telephone numbers so on and so forth.

Did you want to know the procedure to reactivate your dormant or inactive bank account?

It is a cakewalk! To activate your inactive savings bank account, you just have to make a cash deposit in your bank account. To reactivate a dormant account you have to submit a written request to the bank branch and its authorities. Please keep in mind that the bank cannot levy any charges on you to reactivate your savings account.

All you need to know about personal loans

There are a number of loans that you can avail from a bank, personal loans are one such loans. Such loans are not meant for any specific purpose, you can use the loan amount for any purpose you want to. Sometimes it is very difficult to get a personal loan and require many supportive documents. Lets dig deep into what personal loans actually are:

They are unsecured loans

Unsecured loans implies that you don’t need to use an asset as a collateral for the loan. In case the repayment of the loan by you isn’t done, the bank cannot automatically take a part of your property as the payment. However the bank can definitely resort to other actions even if it cannot take your property or car for that matter. A lawsuit can be filed against you by them, they could hire a collection agency to collect the loan and interest amount from you, they could report you to the credit agencies as well.

The rate of interest in such loans aren’t flexible.

Once the loan is taken a particular rate of interest will be quoted by the financial institution lending you the amount. This rate will not be flexible, once it is decided upon, it will remain the same for the entire tenure of the loan.

The repayment period of personal loans are fixed

When you take a loan, it is up to you to set the time period through which you are going to completely repay the loan without any outstanding. This tenure may range from 1 year to around 5 years. But in case you are unable to complete the loan repayment in the number of years stated in your loan agreement, the lending institution can always charge extra fees on your interest amount. Always keep in mind that if the loan amount repayment period is long, yu always end up paying more to the bank.

Such loans can affect your credit score

Most financial institutions that are lending you the money inform the credit agencies about your loan and the amount you have borrowed. This means that everything that pertains to your loan and the repayment and the interest rate and how timely are you in making the repayment are all informed to the credit agencies and this makes up for your credit score. If you repay your loans without any hitches and delays and if you are not a defaulter in repaying your loans you have a good credit score, however, if you delay in repaying the loans and the interest amount is not paid by you regularly, you end up having a bad credit score. Therefore it is always sensible to maintain a good credit score by properly and timely repaying the loans you have taken.

Four important Personal Loan facts you need to know before you apply for one.

A lot of people in today’s day and age are opting for a personal loan for purchasing things that are costly. They also are frequently turning their monthly purchases into Easy EMI’s or equated monthly installments. If people experience any monetary constraints while buying a house or renovating a house for that matter or pitching in some money for the higher education of their children or perhaps having little or no funds during medical exigencies.

These are a few personal loan facts that will help you to know them better.

The first and foremost aspect about a personal loan is that unlike a car loan or a home loan, a personal loan doesn’t require any security. Therefore if you want the personal loan against your property or gold, that is not possible! This makes the rate of interest for the personal loans too high because of the risk involved while getting them sanctioned. If in case you end up being a defaulter in the repayment of your personal loan, it will reflect in your credit score and in future if you want to apply for a credit card, you won’t get one because of your low credit score.

What are the criteria for eligibility for a personal loan?

The eligibility criteria depend on the bank and different banks and different criteria. The main factors that influence your eligibility is your age, income, capacity to repay, loan, occupation and place of residence.  You have to be a salaried individual, or a businessperson. The credit history of the individual too influences the eligibility criteria.

What is the minimum loan amount?

The minimum loan amount too varies from one bank to another, however most banks have set a minimum limit to their personal loan

And that would be Rs 30,000

What would be the maximum loan amount on the bank personal loans?

The maximum amount for a personal loan differs from one bank to another, however before a final limit is set on your loan amount there are some aspects that are deliberated on.  A high credit score makes one eligible for a greater loan amount. Other than that a higher monthly income, your ability to repay the amount so on and so forth are all responsible in fixing the maximum personal loan amount.

What is the maximum loan time that I can take to dispose off the loan?

This is a big question that every borrower has in his/her mind. However the answer to this is pretty simple. The loan duration might be from one to five years. In case you want to know what is the Emi you have time calculate pay over the period of time you have chosen to dispose of your -personal loan there are countless EMI calculators that lets you see what is the EMI amount you need to pay every month.

How much time does it take for the banks to disburse the loan amount?

After the eligibility process is over and you have also checked your personal loan eligibility and things are finalised, the paper work id some and now all you wait for is to get the amount disbursed from the bank, it almost takes a week’s time from the loan application date to get the amount disbursed.

How is internet banking and mobile banking beneficial to one and all

Internet banking is also called mobile banking or online net banking. It is an electronic payment system that allows the customers of a bank or other financial institution to carry out a number of banking transactions. When doing internet banking the banking system available online will automatically connect to the central banking system and are able to access banking systems.

The first and foremost thing that a customer would require to access internet banking will require a computer with a working internet connection. Once that is established he/she has to register with the website of the bank in which his/her account is and that has to be done by a username and password and other credentials for customer verification purposes. The verification procedures are not at all similar to the verification procedure done on the telephone.

The banks provide a unique customer identification number to a customer which he or she can use in order to access the internet banking. The services that can be accessed via internet banking includes, fund transfers to other bank account and other financial institutions, keeping a track of the number of accounts in the bank and obtaining account summaries and transaction details, credit card payments, utility bill payments, opening a fixed deposit account downloading of bank account statements. The ,kind and amount of services that a particular bank allows through internet banking varies from every bank while the above services are quite common for internet banking facilities in almost all banks some banks might additionally let a customer to order a chequebook, change a telephone number or address, stop payment on a cheque and report loss of credit card.

Internet banking has been developed in order for the customer to enjoy the convenience of banking at his/her fingertips instead of having to visit the bank branch and wait for one’s turn in long queues. Nowadays the world has become a busy place and it is not feasible for anyone for that matter to be stand in long queues in banks in order to deposit a cheque for transfer of funds to another account or put a request for an account statement. With the advent of internet banking, all of these meagre works has become simple. Nowadays one can access every detail of one’s bank account in the comfort of one’s own home and all he ’she would require is the internet.

With internet banking a customer has a permanent access to his/her bank account, the transaction costs are less and less worrisome, one can access internet banking from anywhere, the time taken to do a banking procedure is reduced. One doesn’t have to be bothered about the security of these transactions as they are very secure and no personal information or password is divulged anywhere. The transfer of funds from one bank account to another is done safely, accurately and immediately and needless to mention internet banking allows security of the bank account as well.