All you need to know about co – signing a loan

A loan is often a practical solution for most financial situations, along with offering plenty of benefits. Through these bank loans, you can easily repay back any financial debt, purchase a home, finance an education degree or even just finance a car purchase.

But while there are plenty of loan types available in the financial market, the fact remains that once the funds are borrowed, it must be repaid back at some point in time. Very often, this can be a sticky situation, especially if there is a chance that the borrower may fail to repay back the funds. Furthermore, the borrower’s financial profile may not allow them to get the ideal loan rates, and ultimately the financial aid to help get out of a financial issue.

This is where a co – signer will help. A co – signer, also known as a joint loan holder will share the responsibilities of receiving and repaying the borrowed funds. This has plenty of benefits as well as disadvantages. For one, with a property repayment strategy and sufficient funding, both applicants’ credit score will improve. If not, not only will both applicant’s score will drop down, but the mark of the debt will remain until the loan is fully repaid.

So if you are planning to become a co – signer for any bank loans, here are some tips you need to keep in mind:

Know your borrower: As a rule, you should keep your finance safe and avoid any risky options. This is equally applicable for when you become a co – signer. At this stage, you need to know your borrowing partner very well. This is including family members and close friends. No matter how closely intimates you are the borrower; you need to be careful before you sign up as a co – signer for the bank loans. After all, this is a debt both parties will share and bear until the loan is repaid. Only if you have absolute trust in the repayment capabilities of your borrower should you proceed with the co – signing.

Review your budget: When investing in the loan as a co – signer, both parties will be responsible for repaying back the borrowed funds. This also includes ensuring you have sufficient funds for the repayment. In the event the primary borrower defaults on the loan, you should be well prepared for the added strain on your budget. However, before taking this step, you should ensure and insist that the other borrower also maintains a sufficient budget to repay the debt obligation. This help assesses and maintains some level of confidence in their ability to repay back the debt. If it looks like there is a possibility that either budget will give way, review your budget strategy for better loan rates.

Get copies of everything: As a co – signer, you will get copies of the loan documents. But you must insist on duplicate statements. If you must, ensure that you get the required login credentials, so both parties are aware of the status of the debt payments.

What are the insurance policies to opt for in your early 30's?

You may be used to the finer things in life, thanks to your well - earning partner. But at any point in your life, you may be reduced to a situation where you will need to struggle to get even the basic of a meal. That is what happens to most individuals who rely on other earning members to maintain their lifestyle.
This is why it is crucial that you insure yourself. With the right insurance cover, brought at the right time in your early life will not only offer a good coverage but also save funds.

So if you are planning to opt for any insurance policies, here are the important three policies you need to opt for:

Term life Insurance: A life insurance may not seem much at a young age. However, there is a possibility at that point in your life; you may be repaying a loan. You may even have parents who are about to retire and who may be partially or fully financially dependent on you. In such a situation, a term life insurance will help in any case of any eventuality. In fact, the younger you are, the cheaper you can buy your term life insurance cover. Experts recommend purchasing a cover that is at least 10 to 15 times more that one’s annual income.

Personal Accident Insurance: Another one of the insurance policies that must be purchased is the personal accident insurance. This is one insurance cover that no individual should ignore, as most working individuals especially in the urban area, is prone to accidents given the required lifestyle. It has plenty of covers that offers a nominal pay, in the event where disability or death occurs. Barring any adventure sports and self-inflicted injuries, this insurance covers plenty of accidents that arise in the normal course of life. 

Health insurance covers: The incidences of hospitalisation may be low at a young age, but it cannot be ruled out completely. In fact, a hospitalisation caused by dengue can cost anywhere between Rs. 50,000 to 1 lakh. While your health cover may be covered by employers providing a health insurance cover, the high propensity of jumping jobs will reduce this likelihood. Furthermore, if you join a start-up, there is a high chance you do not even get the health insurance, putting you at a complete risk. The ideal health insurance cover for such individuals can be anywhere between Rs. 2 to 3 lakhs. As you progress in your job or age, you can then include covers with hospital cash, critical illness or any covers that include specific diseases.

Before you opt for any of these covers, you should use the service of online websites and check all the available options in the market. Avoid considering one factor, such as premium payable, before you make your decision.

Multi – currency card: How to pay less for foreign currency

In preparing for a trip abroad, it is crucial that you explore currency exchange. While your trip may be fully sponsored by an agency or your company, there will come a time where you may need to spend from your own funds. At this time, you still need to be aware of how much you will be spending if ever the time came you need to spend from your own pocket.

But instead of opting for your own banking cards, or relying on expensive foreign local funds, you can always opt for the multi – currency forex card. This card functions like any other banking card, but it is mainly used to access foreign currency. To make the most of this multi-currency card here are a few factors you can keep in mind:

Check conversion rates from a genuine source: The value of foreign currency is always in a state of change. Plenty of companies and lenders who offer currency conversion facilities also offer values of the current currency exchange mostly through their websites. In order to get an idea of a fixed value you will be investing, you can check these websites out. But how do you know which is the right value? Certain government based websites offer the day’s current conversion rates. You can check out these rates, thus giving you a ballpark figure of the best rates to invest foreign cash.

Shop around: Most banks offer foreign currency rates with wide gaps. In other words, the value of a single foreign currency will be different for different banks. For example, the British pound has been undergoing plenty of changes ever since Brexit, with the difference in values such as 0.9 pounds. Plenty of banks is offering different conversion rates based on this factor. By shopping around, you can get an idea of what to expect with a particular foreign currency value.

Exchange rates are constantly changing: It is difficult to predict the exact value of the foreign currency. A few months before you can monitor the value of the currency for a while and make an invest in your multi – currency forex card when the time is right. Don’t worry if the conversion rates increase after you invested in this card. Once you load the funds on the card, the conversion rates are locked at the time of loading.

Access to physical cash: In certain cases, you may want to access physical cash. This multi-currency card will help you access funds from any ATM or bank. All you need to do is approach the cash dispersing machine, and put in your PIN. Once this is done, you can easily withdraw a number of funds you want. This will help eliminate the need to access funds from your other debit or ATM cards, which will be charged at international conversion rates.

Debit card: Teach your children to be financially smart with these tips

Being financial literate is no longer an option, but rather a necessity. As adults, you will face several financial incidences, which require appropriate decisions, strategies and planning. At such a time, being financially ignorant will not only cost you but will also allow you to lose out on an opportunity for better financial investment.

The best to be educated about finance is by starting young. Your kids, in fact, have a better opportunity to become financially aware and experienced at a young age. All you need to do is introduce the debit card to them. But how will this bank card will work in their favour?

Here are some tips that can help them:

Learning all about account fees and minimum value: Most of the debit cards are linked with a bank account. This an ideal opportunity to acquaint your child with how banking accounts function. Most banks allow joint accounts with a minor. Therefore you can also invest a small amount of funds now and then. At the same time, you can teach your child about maintaining the minimum balance and maintenance fees. This way, your child can learn to manage and limit withdrawals from the joint account. Similarly with the fees, get your child to understand the fee structure and how the funds in the account will be charged for them. Encourage them to communicate with the bank on how to manage the fees and how to reduce them.

Managing funds: Urge your child to get into the habit of reviewing his or her debit card statements, physically or online. Suggest that they sign up for email or text alerts, especially if the bank account funds dips below a certain value. You can even opt for apps that can help track account balances, which will go a long way to managing spending and budgeting.

Explore the card features: Most of the different types of debit card comes with various features. For example, certain cards come with protection, which helps provide protection against unauthorised purchases or even reduce the unlikelihood of fraud. You may even sign up your child for ID theft alerts. Some cards even come with price protection which means, if your child has found a product with a lower price on an item within a specified amount of time after purchasing it at a high price, you can get the difference between the price you paid and low advertised price.

Debit versus prepaid card: While there plenty of different types of debit card that can be used, there is also the choice of prepaid cards. A prepaid card is an independent card minus the link to a bank account. You only need to load the funds on the card for spending purposes. There is a benefit of your child not racking up overdraft fees with a prepaid card. However, it also restricts their financial learning.

How to save up for a financial goal with the recurring deposit calculator

Savings your funds for the future is the need of the day. You may be earning more than your sufficient needs. But there will come a time where you will stop earning, and rely on your savings for survival. Furthermore, if your savings are not used for one purpose, can be used for several others, without harming your initial investments.

But to save, you need the ideal investment option and the ideal investment rates. Furthermore, you need also to calculate how much you need to save on a daily basis and what is the final amount you require. All these queries will be answered with the recurring deposit; a simple termed deposit that requires a fixed deposit every month till the tenure is met.

To help you calculate the ideal investment amount for this termed deposit, you can easily opt for the recurring deposit calculator to assist you. Here are few factors you will need to consider before using this tool for your RD investment:

Financial goal: This is the main factor you will need to consider when opting for recurring deposit. While it may be simple to start investing without any goal in mind, it will not serve any purpose. Furthermore, by setting a goal, all the factors of the investment will be set accordingly. For example, you need to save up for a family function or even a purchase of a particular product. Through this RD calculator, you can set up the amount needed to be met, along with the tenure that will be required to meet it. Accordingly, you can also opt for an interest rate that will suit the investment.

Income: Your income is another factor that needs to be taken into consideration when investing in this termed deposit. Once you have paid off your monthly expenditures and any other debts, your remaining disposable income can be used for your own leisure. But instead of indulging in a carefree expenditure, a small sum can be used to invest in the recurring deposit. You can use the recurring deposit calculator to calculate the ideal amount from your income to invest. Accordingly, you can adjust your income to be invested for the desired result.

Interest rate: The interest rate is normally the amount that is deposited at a fixed tenure. This based on the lender’s offered rate, along with the tenure you will be opting for. Higher the investment amount, higher the interest rate, the more will be the return on the investment. By using the RD calculator, you can easily calculate the ideal interest rate that will give you the preferred rate and outcome.

Tenure:  Tenure plays the most important role when it comes to this investment. After all, it determines how long the rates will be locked in. Furthermore, longer the tenure the more you will receive regarding return on investment. Using this tool, you can calculate the ideal tenure that will offer you the outcome you want.

Step up your investment savings with a recurring deposit

Savings up on your investments may seem like a challenge. After all, on a daily basis, you will be facing burgeoning inflation in addition to the steady increase of lifestyle aspirations amongst many other factors. All these factors will disrupt your means to accelerate your savings in order to attain your goal.

The best way to step up your investments is through a recurring deposit account. Here is how this termed deposit will help you double your investments in no time:

Automate your deposits: The statement, ‘well begun is half done’ is also applicable to your investments. Instead of waiting for a lump sum to conveniently accrue over months, you can prioritise your savings through a recurring deposit. Don’t worry if you have a hard time to commit to saving your funds. With this termed deposit, your can easily set aside the required amount of funds to meet your financial goal. In fact, you can easily automate the transfers with your bank, jut by giving standing instructions. Once this is set, you only need to stay alerted when the funds are being transferred and deposited.

Financially fast for a fixed period: This cathartic experience will guarantee a financial epiphany. So what does a financial fast entail? It involves spending a less as possible for a premeditated period. This period can include a week, month, or even a quarter. In fact, if you are determined enough, you can even make it for a year. But no matter the tenure, you need to have a start and end date, while truly coming yourself. Once the period of fasting is done, you need to take stock of your funds you’ve saved. This can include eating out less, choosing a less expensive movie theatre for your weekly outings, or even frequenting your favourite deli. Deposit your saved funds over time in the recurring deposit account which can be opened for this specific purpose.

Avoid getting caught up in the lifestyle creep: You may be tempted to opt for that fantastic deal you’re getting for that Bali vacation package. You may also be getting a great deal on your dream car, even though own a perfectly good and functional one. But in either way, you need not overleverage yourself to keep up the high life. Your priority should be your investment, which in this case is the recurring deposit with the access being used for your lifestyle indulgence. You’ll be relieved to realise that you have eliminated all possibilities of stress just by saving enough funds for a future loan repayment, or even a down payment.

Lower your fixed monthly costs: You will be surprised to know that you are most likely to overpay, through your routine expenditures just out of habit. A few simple steps will help eliminate this problem. For example, you can opt for a cheaper broadband connection, or even cancel a TV package that you never use. You can even contact your mobile telephone company as a request for better options that are in line with your usage. Once you’ve calculated the funds you have saved overall, you can reinvest this funds in the termed deposit.

Get the best of loan rates with the two wheeler loan EMI calculator

Two wheeler are a common sight in the country for various reasons. For one, it offers an ideal solution for the economical and logistical conditions. In fact, most Indians prefer owning this two wheeler as a means of conveyance, especially in terms of travelling. Furthermore, with the introduction of several international brands in the country, two wheeler fans are spoilt for choice.

But no matter the choice, the fact still remains that, in order to finance this purchase, you can either fund the purchase from your pockets, or you can borrow from your friends. But while either option is available, they are not favourable for everyone. This is where the two wheeler loan will be the ideal choice. Most of the banks in the country offer loans, thus giving users a wide choice of financing options to consider.

But which is the best loan rates you can opt for? After all, no two user’s financial history will be the same, creating a difference with their financial habits too. The two wheeler loan calculator will provide the relevant assistance here.

What is the two wheeler loan EMI calculator?

This EMI calculator is an online tool that is designed to calculate the EMI amount that will repay the borrowed funds. You only need to fill in the required details to get the required loan details that will assist you. Once you enter all the appropriate details, the resulting auto – computed EMI amount will reflect your financial requirement. In addition to the EMI value, you will also get additional details that can aid you to choose the most suitable terms.

Here is what the two wheeler loan EMI calculator will offer you:

Helps in recognising the EMI value: The chief use of this tool is to know the precise amount you will be paying every month. By knowing the hands beforehand, it will help you plan the appropriate loan rates along with help segregate your monthly budget. It also eliminates the needs to manually calculate each result, while ensuring accurate results.
Aids in choosing the term: Once you have calculated the ideal EMI amount to suit your needs, it becomes much easier to choose the tenure of the loan. If you feel that the loan value is a burden within the given tenure, you can extend the tenure proportionally bring it down the value.

Helps in comparison: The two wheeler loan calculator is also ideally the best tool to compare competitive rates. You can use the tool to compare the costs involved in the loan, helping you choose the most suitable loan offer. You can get a quote and jot down the outcome to compare with other offerings.

Helps in negotiating: Once you are armed with the basic details for the loan, you can use to leverage for a better loan rate. Factors such as rate of interest, processing fee and other similar factors can be easily negotiated.