Answer these questions before purchasing your car with a car loan

Purchasing a car has now become as easy as purchasing any other commodity. In fact, with the wide variety of cars available in the market, it has become easier to choose a car. An added advantage to this decision is the car loan.

Plenty of lenders are now offering car loans that are tied up with particular brands and models of cars. This not only makes it convenient for you, as a borrower, to consider the option of selecting a car but also to reduce the time and effort to shop around for one.

But while it may seem easy and convenient to opt for a car choice that comes tied up with a car loan, it is crucial that you review certain factors before you opt for one. Here are a few queries you need to answer before you opt for a car and loan for purchase:

What will you be using the car for?

A car is not about aesthetics. In fact, the different models and makes are designed to be suited to specific needs. This, in turn, influences the rates of the car loans. So if you will be using your vehicle for specific purposes such as travelling short distances within the city, then driving a compact car may be ideal. Similarly, if you will be covering long distances on long drives, you may want to opt for a car choice that is roomy and comfortable. Regardless of your daily itinerary, ensure that you go for a choice that is best in terms of fuel economy.

Who's going to be riding in the car?

If you are using the car for your own purpose, then you can always opt for a sleep sports car or a top of the line sedan. After all, it makes a great choice to go cruising down the highway or long roads. However, if you will be sharing your car with the rest of your family, then you might want to reconsider your choice of vehicle to consider their needs. In this case, a spacious SUV or van will make a better choice. Furthermore, since you will be driving your family around, you may also want to opt for a choice that comes with an advanced safety system. Since each model and make of the car influences the value of the loan, you may want to consider this choice before you apply for a car loan.

What car features would I want and need?

When you apply for a car loan, the loan value is calculated based on the basic components and specs of the car. If you need to add additional components such as a built – in navigation system or a voice activated controls feature, or even a top of the line audio system or improved environmental performances, the loan rates will increase. If you need to add these features to your vehicle, you may want to make a list and classify them on priority and usage.

All you need about the Personal Loan EMI Calculator

You may need urgent funds at some point in your life. But your friends and family may not be in a position to assist you. However, you still have an option of opting for a personal loan.

A personal loan, which is an unsecured loan will require no collateral or security unlike other types of secured loans. Furthermore, the end-use of the funds received through this loan can be used for several purposes. So if you need to finance a wedding, pay off any other loans or even sponsor a part of your holiday trip, the choice is yours.

Like other loans, the personal loan will be need to repaid back. In this case, you need to plan your finances beforehand. But how much do you need to keep? How much will you actually know how much will you be paying for the interest? This is where the personal loan EMI calculator will be useful. Given below are some of the commonly asked questions and answers pertaining to this financial tool.

What is a Personal Loan EMI?

Like any other loans, the personal loan comes with an EMI. EMI stands for equated monthly instalments. These monthly instalments are either fixed or floating, with a fixed tenure. Through this monthly instalments, you will be required to repay your loan. By using the personal loan calculator, you can easily calculate the EMI rates of the loan.

Why should you calculate the personal loan EMI before applying for the loan?

Before you take the personal loan, you need to assess whether you can afford the loan in the first place. At the same time, you need to ensure that you can afford the EMI, throughout the years required to repay the funds. Hence it is crucial that you calculate the approximate EMI using the personal loan EMI calculator. By using this tool before applying for the loan, you will know how much of a loan amount you can afford, settle for an interest rate that will suit and fix EMI rates that are affordable.

How to calculate the EMIs?

While you can calculate the amount manually, you can also use the personal loan calculator to calculate the amount for you. All that is required from you to input in the calculator includes:

• Loan amount: This is the first amount you will need to input. The loan amount is basically the value of the funds you will want to borrow.
• Interest rate: This is the rate which is calculated on the loan amount. Most lenders will already have a fixed base rate which can be increased to your preference.
• Tenure: This is the number of months you would require to repay back the loan amount and the interest rate.

As soon as you provide the required information, you can submit it for calculation. The result will be the calculated loan EMI amount.

All you need to know about the CIBIL score and Personal Loans.

When you apply for a personal loan, the lending institute will need to first consider whether you are worthy of receiving that loan. In other word, the bank would need to know and understand whether you are good with your finances. It will also consider whether you can repay the loan within the given time or whether you are prone to missing your payments.

Most lenders and banks will review your credit worthiness through your CIBIL score. This value is associated with you and your financial profile. It also indicated how responsible you are with your previous loans and credit cards. In fact, the CIBIL score is one of the primary parameters that is used to determine the approval of any loan.

Calculation of the credit score:

Your credit score is calculated on a specific set of parameters. In most cases, they include:

35% - The repayment history
30% - Amount currently owed to lenders
15% - Number of years of service debt
10% - Number and amount of recent loans taken or applied for
10% - Credit mix
Based on this, the score will be calculated within a range of 300 to 900.

How do you get a bad score based on these parameters?

There are various reasons as to why a potential borrower’s credit score can be affected. It includes the following:

• Defaulting in making on any of the repayments
• Extensively shopping for a loan but getting rejected repeatedly.
• No previous loan application
• No previous credit history for validation

When you need to avail a loan, a lender or bank will conduct a background check on the borrower. Through this check, they will ascertain if the applicant is capable of making payments and repaying their loan. Higher the credit score, higher will be your chance of availing a loan. Furthermore, you will get better loan rates in terms of a flexible tenure and better interest rates.


When it the right time to opt for a personal loan?

If you are planning to apply for a personal loan online or at your bank, you can consider these factors to increase your chances of getting the loan:

Sufficient time to improve the score: If you have sufficient time to improve your credit score, you can take the efforts and means to do so. A small loan or credit card repayment will help improve your score to the required acceptable one.

Good salary: If you earnings is good enough now, you can apply for this loan. At the same time, you will need to have enough capacity to repay your loans it will work in your favour no matter how low the CIBIL score is.

Consider your spouse’s CIBIL score: If your own score is low, you need not worry. Your spouse may have a better score than you. In this case, you can always apply for a joint personal loan online or at the bank. Banks will consider the combined credit score, thus increasing your chances of approving the loan.

How to consolidate your demat account into one account?

When you purchase any shares or securities in their electronic form, they are held in a dematerialized account, also known as a demat account. As a stock market investor, you may be familiar with the steps on how to open a demat account. In fact, as a frequent investor, you may or may not be in a position where you will hold multiple accounts.

But at some point in time, you may need to streamline the security holding that is scattered across all your accounts that have been opened at some point in your time. Furthermore, you may have to close the inactive or zero balance accounts. At this stage, you will also need to transfer all the securities in other demat accounts to only one account.

By doing so, this consolidation will help you save annual fees and charges, which you will normally incur on multiple accounts. However, to save you the trouble from visiting multiple DP offices or branches and submitting requisite forms and documents, you need to ensure that you are aware of the process.
Here is how you can merge the demat accounts into one:

Step 1: Get the delivery instruction slip
The delivery instruction slip (DIS) is like a cheque leaf. It enables the transfer of securities off the market, especially from one account to another. It will be required to be filled in and signed. Once done, it will be required to be handed over a depository participant’s office.

Step 2: Verify details on the DIS
The delivery instruction slip will hold the unique ISIN of the demat holdings to be consolidated. It would also include the name of the security and details of the source. It would also include the targeted demat accounts and DP ID. This delivery instruction slip will need to be signed by the demat account holder, as per the mode of the operations.

Step 3: Transferring the account
In the case of off-market transactions, it will put through the system. In case the target account hast the same account holders, there will be no tax implications. In this case, the demat account and the DP ID will be modified in records of the depository. However, the beneficiary owners will still be retained.

Step 4: Closing previous demat account

While you may the steps on how to open a demat account you will also be instructed on how to close the account. After the transfers have been completed, and the financial contents of the said accounts have transferred to the single demat account, the zero balances accounts will need to be closed by submitting an account closure form.

Once these steps are taken, you can easily use the single account for all your requirements. However, before you take this step, you should be aware that securities with a lock – in or lien cannot be transferred. Furthermore, securities transaction tax will not be payable for off-market transactions.

How many different kinds of current accounts do HDFC banks offer?

Let us first get to know what a current account actually is

This is a deposit account that mostly is aimed at professionals and businessmen. The current account has got a lot to do with liquid deposits and it also allows withdrawal of money and checks that are written against the balance in the current account and the number of transactions that can be carried out in the current bank account is not limited for a day.

HDFC banks offer myriad customised current accounts that serve the purpose of multifarious operations.

Ultima current accounts

This is an ideal current account option for any kind of businesses especially because they need features that go beyond even the most expensive products that are currently being offered in the current account market. The ultima current account is positioned to market specifically to large distributors, manufacturers, stockists, multi-speciality hospitals and dealers. The main benefits of an Ultima current account is that there is unlimited free local and anywhere cheque collections as well as payment facility and to top it all it also offers free RTGS / NEFT collections and payments.

Ezee current account

For savvy traders who operate across a number of cities the  biggest problem is the transaction costs, an Ezee current account  option will help reduce the transaction costs  but at the same time provide access to the most advanced and secure net banking ways and tactics.

Supreme current account

Large traders who operate from across the country face a lot of high transaction costs, the supreme current account help reduces the transactional costs and this offers free access to the most advanced and secured net banking and mobile banking ways and tactics. One also can avail the benefits of higher cash deposit limits at all HDFC bank branches across the country. Along with that with a Supreme current bank account one can avail fi free RTGS/NEFT collections and payments on all transactions.

Agri current account

This current account takes into account the seasonal nature of the agriculture-related industries; the Agri current account offers a lot of features that almost entire maximum return. There are a lot of other benefits as well, one does payment and collection of cheques at all bank locations. Another added benefit is that users of this current bank account can avail free monthly cash deposit at their home location up to Rs 10 lakhs.

Plus current account

Businesses that have suppliers and customers from across the country, the cost of transaction soars a lot higher and when one has a plus current account that cost is heavily cut down  and this current account also offers higher limits for a wide  range of transactions  resulting in a lot of money saving.

Everything you need to know about savings bank account

What actually is a savings account?
It is a bank account in a bank or a financial institution, where if one deposits money, it bears interest and at the same time the bank or the financial institution provides a modest interest rate on the money that is deposited over time. The banks or the financial institutions in which your savings bank account is might voluntarily limit the number of times you can actually do a transaction on your bank account and this might be a regular feature each month and at the same time they have every right to even levy fees if the required amount of minimum balance is not maintained in the bank account.

Let's get to the brass tacks of a savings account.

In sharp contrast with a savings bank account a checking account will allow you to write cheques and one could also use the electronic debit card to access your money and the best part is checking accounts don’t really have limits to the number of times of the transaction that one makes every month. Savings bank account is generally for saving the money and those us why one doesn’t really use them on a day to day basis.

What are the benefits of savings bank account?

One of the main benefits of a savings account is that the savings bank account pays interest and therefore in the long run the money that is put in the account will get you some extra money by just lying in the cabinet. Along with facilitating savings, a savings bank account it is also very easy to access your money through it

What are the disadvantages of a savings bank account?

The liquidity of the savings bank accounts is one of the main advantages of a savings account, however it is this very feature that makes money in the savings bank accounts very readily available and that is also a reason behind the temptation to spend them and the interest that they pay are not too much they pay a very nominal rate of interest.

How does the savings account work?

In order to get a savings bank account for yourself, you have to visit your nearest bank and at the same tie you can also set up a bank account online on the bank website. In order to make deposits you have to visit the bank in person and you could set up automatic transfers from your checking account or you could also have the option of getting a portion of your salary deposited into your savings bank account. In order to withdraw cash you have to either visit the bank branch or use an ATM.

All you need to know about gold loans

It is evident a gold loan is a loan amount that is given against gold. Gold loans are offered by a lot, any nationalised banks, private banks and a lot many financial institutions and these loans are offered to people who avail of the loan against gold at attractive interest rates. Many people avail of a gold loan so that money can be borrowed for a shorter tenure in order to meet the requirements of the children education or some emergency cash crunch in the family. While some people are of the opininon that instead of keeping the gold in the locker, it must be worked out for some added cash.

What are the advantages of a gold loan?

In order to avail for a gold loan you don’t require to show any salary or any income and for that matter one doesn’t even have to get hold of any credit report. This is the sole reason behind unemployed people being able to go for a gold loan.

In clear contrast to any other loans, for availing a gold loan one doesn’t require to submit many papers, just the nominal address proofs and ID proof are more than enough in order to get the loan amount.

The low-interest rates are the main benefit of a gold loan. Usually a gold loan is given at the rates of 12-16 % per year and this si much lower when compared to the interest rates of a personal loan which one can avail of at an interest rate of 15-26% per year.

In rural areas, in exchange for gold, agricultural loan too is granted  to every agriculturist at  more than nominal rate of interest of 7 to 8 % per year, however  in order to avail this loan, proper agricultural documents have to be submitted to the bank.

This is one of the simplest loans because unlike the procedure of other loans when availing a gold loan, you just have to pledge your gold with a bank or any other financial institution and then you can get up to 80% of the market value of the gold as a loan.

There is the option of paying only the interest during the entire term and after the tenure you can actually pay the entire principal amount altogether,
This is the only loan where the banks take just about 2 hours to complete the approval procedure for the gold loan and if we take the nonbanking financial companies into consideration, they at most take a few minutes to complete the approval procedure and one can get his hands on the loan amount almost immediately. Therefore in the case of immediate financial aid a gold loan is the best option.