All one needs to know about personal loans

Personal loans are one of the myriad other kinds of loans that are available and one can borrow from a bank. These loans don’t just fulfill any specific purpose, these loans can be used to meet any individual end. The amount that is shelled out to in the form of personal loans can be used by you in order to buy anything, to pay off an existing debt, start a new business so on and so forth. It is very difficult at times to get personal loans and at times they are offered by the banks upfront. If in case you are considering of getting yourself personal loans , these are some of the points you should keep in mind.

1.These are unsecured loans – unsecured loans are loans that don’t require any security money or collateral. If in case you don’t pay an instalment of a personal loan or you delay paying an EMI for the personal loans the lender of the loan cannot take away your property as payment for the loan. This is why personal loans are at times very difficult to get. Even though the lender doesn’t have the option to seize your home or your car there is alot other action that they can surely take in order to get back their amount. They can simply report the late payment to the credit bureaus or a collection agency; they can file a lawsuit as well against you.

2.They usually have fixed interest rates – the interest rate on a personal loan is more often than not locked and it doesn’t change for the entire tenure of the loan. The loan amount that is approved for you in the case of a personal loan depends a lot on your credit score and the interest rate that is fixed on your personal loan too is decided because of your credit score. If your credit scores are good then the interest rate that you might get is less, and vice versa. Lower interest rates are always good because the cost of the personal loans is much less.

3.Personal loans affect your credit score - Most lenders or banks and financial institutions report your low credit scores to credit bureaus. At that time when you are applying for the loan your credit score is checked and your financial details are dived into in the minutest of detail. All this is done to be sure that you are in a position to repay the loan in the stipulated period of time. The key to maintaining a good credit score is to make the repayment on a monthly basis without delay.

These are some of the core points to keep in mind when going in for a personal loan.

What is an EMI?All you need to know about EMI calculator

The full form of EMI is equated monthly instalment which is a fixed amount of payment the borrower has to make to the lender at a specified date on a monthly basis EMIs have your principal amount and the interest amount that you are supposed to pay every month.

Here’s all you need to know about an EMI calculator

Say for instance you have decided that you are about to take a loan, it might be a car loan, or ahome loan or personal loan. The first step of taking the loan is nothing but just sitting down and making a serious calculation of how much is it going to cost you. This cost is calculated in the terms of the monthly payment that needs t be done towards the loan and these are called the EMIs or the Equated monthly instalments.

Once you need to get the exact EMI, you need to calculate the amount borrowed and the interest that you are supposed to be paying on the principal amount and the processing fee for the loan that you have taken.Once you have all this information you have to sit down with a pen and paper to see how much will you have to pay monthly for the amount of loan that you have taken or the amount of loan you have decided to take and you will also have to take into consideration that tenure of the loan i.e. the period through which you are going t pay the full amount of the loan. One that is done , it might strike you that the EMI is way too big and you will reduce it in some way or the other in order to do it you have to either lessen the tine period of the loan i.e. the loan tenure or you have to borrow less. When that is decided, you have to calculate all over again. One you have the right EMI, you have to start looking at the banks and other financial institutions that are ready to give that amount as a loan. When you find an institution they will give you a quote and you will once again realise that you have to do the calculations over again. Doing the calculations over and over again is tiring and there is a chance that you might goof up. You have to make sure that while doing these loan calculation you do not make any mistake at all. Therefore there are many websites of banks and other financial institutions that offer EMI calculators that do it for you.  These EMI calculators have slots which you need to fill in. You have to fill in the amount of the loan, the tenure of the loan and the interest rate. Once all of this basic information and other information that is asked for is filled in the EMI calculators will calculate your monthly EMI fast and accurately and will save you the time and effort of it.

Therefore in order to do the loan EMI calculations in an efficient and accurate manner it is always advised to use an EMI calculator.

Do you know how to send money to India? These are some easy ways!

If you are an NRI you have to send money to India one in a while. It becomes a compulsion while living abroad. Whenever you are sending money to friends and family or transferring money back home in order to manage finances at home there are myriad methods to send it. Listed below are few of the options through which the money can be sent.

Money transfer companies - Money transfer companies offer a lot of money transfer services which includes the option to send money to India. They offer a secure, fast and comparatively inexpensive ways of how to send money to India from abroad locations and they are often come with alot of benefits. These benefits include better exchange rates, lower transfer fees and excellent customer service. There are multifarious money transfer companies to choose from and you can select the best company depending on their exchange rates fees and other features and benefits.

Wire transfer – Wire transfers are extremely common for international money transfers and most of the banks abroad offer wire transfer services. With a wire transfer t as well.

The funds are transferred directly to any foreign bank account and most of the time it just takes a few days. The charges for the wire transfer services vary from bank to bank which is why the fees need to be checked.

NRI and NRE accounts – NRI and NRE accounts are a tried and tested ways of sending money to India. In order to send money to India through an NRI or NRE account, first you must open an NRE bank account. With this method you can deposit foreign currencies in your account and the authorised recipient bank in India can withdraw the amount in Indian rupees. The transaction process usually takes a week’s time and is not taxable.

Personal cheques – You can write a personal cheque to the recipient who can then deposit it in their bank account in India. Some banks though do not accept foreign cheques and even if they do there is more often than not a delay in encashing the cheque because the bank has to first verify the deposit. The recipient may also be required to pay a certain amount to encash the cheque.

Cashier’s cheques, money orders and bank drafts – All of these options can be purchased through a bank. Also there are fees to purchase these but these fees are much less when compared to the wire transfer fees. With cashier’s cheques, money orders and bank drafts you can buy the amount you want to send in the Indian currency. Be sure to make a copy of the money order and the bank drafts and keep it with yourself for the records.

Here are some of the benefits of an NRI account

According to the Foreign exchange management act or the FEMA it is illegal for NRI’s  to have any resident savings bank account  in India. As an NRI you will require changing your resident savings bank account into an NRI account and you have two choices in that, it can either bean NRO or an NRE account. If in case you carry on using your resident account, you will be penalised heavily. You can either convergent your existing account or close your existing account and open a new NRO or NRE account.

NRE or NRO is a savings bank account for the Non-resident Indians These two accounts can be opened by any NRI. MRE stands for Non-resident Indians there are many differences between them and depending on their features you can choose to open whichever account that suits you.

The NRE account lets you keep money in Indian rupees. This account then further lets you open one of the best-fixed deposits  investment option known as the NRE fixed deposit which currently provides a fixed and interest rates and very good returns  on NRE fixed deposits.

Since many NRI’s are not aware of these feature NRI account benefits and advantages, here are few of the benefits shared below:

1.Tax benefits: One of the major NRI account benefits is that the interest earned on the NRE savings account and the NRE fixed deposit is tax-free in India. They aren’t counted in the taxable income bracket and this is even when you have many sources of income in India.  Due to this feature the NRE fixed deposits are the most secure and high yield investment options that are available for the NRI’s

2.Low balance required – Due to the increased competition amongst the private and the public sector banks, the minimum balance required in order to keep the NRE account functional has dropped hugely. Nowadays many banks require just Rs 10,000 as a minimum balance to keep the accounts functional.

3.High-interest rate – Another significant benefit of an NRI bank account is the NRE fixed deposits offers high-interest rates even though the rates differ from one bank to another. The good part is that these interest rates are calculated on the daily closing balance and the interest is paid half-yearly in June and December and this too varies from one bank to another.

4.Joint Holding – Another key NRI account benefit is that you can jointly open it with another NRI. This might also turn out to be the way to manage funds because your partner can operate along with you.
These are some of the NRI account benefits.

All you need to know about NRE and NRI accounts

All Non-resident Indians whoare residing out of India have to open an NRE account  because NRI’s who have an NRE account are only permitted  to hold and maintain foreign currency earnings in Indian rupees and all the funds along with the accrued interest  are freely repatriable  and the interest that is earned is not taxable in India. An NRO account also lets the Non-resident Indian to maintain aRupee account in India.

Similar points to note between the NRE and NRO accounts

1.Repatriation – NRE account is free lyrepatriable i.e. the principal and the interest earned onthe other hand an NRO account has a limited repatriability i.e. permitted remittance is allowed  from NRO is upto USD 1 million net of the applicable taxes inthe financial year after submitting an undertaking and a certificate from a chartered accountant .

2.Tax treatment – NRE account is tax-free which means there is income tax, wealth tax and gift tax in India on an NRE account. On the contrary the interest that is earned inan NRO account and all the credit balances are subject to respective income tax bracket and the gift tax and wealth tax are also applicable.

3.Deposit of rupee funds generated in India – If a Non-resident Indian (NRI) or a Person of Indian Origin (PIO) or an overseas citizen of India (OCI) is earning income originating in India which might be salary, house rent or dividends so on and so forth, he or she is only allowed to deposit into the NRO account. Such earnings are barred from being deposited into an NRE account.

4.Joint Holding – NRE account can be jointly held with another NRI but with not a resident Indian. On the contrary the NRO account can be jointly held with another NRI as well as a resident Indian which has to be a close relative as defined in the section 6 of the Companies Act 1956.

5.You can choose an NRE account if your primary reason is to park  your overseas earnings remitted to India converted to Indian rupees or you want to maintain  savings in Rupees and want to keep them liquid or you want to make a joint account with only another NRIor you want your rupee savings to be freely repatriable.

6.Go for an NRO account only when your primary reason is that you want to park India based earrings in Rupees in India, want your account to deposit income earned in India such as rent, dividends so on and so forth or you want to open an account with another resident Indian who happens to be a close relative.

All you need to know about NRI accounts

There are a few different kinds of NRI accounts. Some banks offer the NRI bank accounts which have a number of features like you can withdraw Rs 40,000 from the ATM daily, you could enjoy personal banking benefits through specially designed account for the NRIs who do wish to get interest credited to their savings account.

There is also the option of multi-channel banking where through internet banking you could transfer funds, pay bills, view account summary in internet banking. Through mobile banking you could check balances transfer funds, request for cheque books and also you could make your utility bills payment using your mobile phone, you will also get SMS alerts and monthly e-statements and quarterly physical statements to keep a track on the bank transactions and other banking activities.

An NRI account would also get personalised cheque book every quarter. There is a host of other banking benefits and facilities, you could get special privileges on remittances from your relatives and friends abroad, you will also be able to keep a joint account, enjoy loyalty reward points.

You could also keep your assets safe, there are lost card liability and also purchase protection liability  up to a certain amount to protect against the fraudulent usage of the credit card, it could also be put to use during the damage or the loss of articles purchased with the debit card.

Along with that you also have the NRE savings account which can be opened by any person staying outside India. All the NRI’s who have an NRE account in India are given the permission to hold and maintain foreign currency earnings in Indian rupees. All the funds along with the accrued interest are freely repatriable and what’s more the interest that is earned is not taxable in India. The NRE account can be easily converted into a regular resident account with the relocation of the NRI back to India. The account is structured ina manner that is suitable for most people who are living abroad. He or she might be a professional who is deputed overseas or an entrepreneur moving all across the world to do his business. It is also very convenient to start off; you just need to submit a few documents to get started with your very own NRE account. There are lot many features that are for your benefit. Some features like low minimum balance requirement, tax advisory services, multi-city cheque books, online transaction options. There are all the features that are required by any Non-resident Indian to tactfully maintain their balances in India. Therefore it is very necessary to have an NRI account for any non-resident Indian.

All you need to know about NRO accounts

An NRO account is a non-resident ordinary account. It lets you park your rupee funds gathered from earnings in India. It also offers free money transfer at a competitive rate structure. You could also add an Indian resident as a joint holder to your NRO account so that he/she can operate your account. There would also bea free mandate card and chequebook for your family in India and this would give then anytime and anywhere access to your account.

Now let us have a deeply detailed look into what an NRO account actually is.

A non-resident ordinary account or an NRO account is a savings account essentially where you can maintain and manage your income earned in India for instance, the rent collections, the dividends, pension etc. Whenever you choose an NRO account you can be assured of and efficient management of your rupee earnings in India while you are staying abroad. There is also the facility of an easy redesignation of your account when your status is changed from resident Indian to a non-resident Indian.
There are a lot many benefits when you are going in for an NRO or a Non-residentordinary account. These benefits are enlisted below
You will get a higher yield post-tax: this can be done by availing the DTAA benefit facility.

You can also avail the benefits of low cost and hassle free money transfer which can be made available through various online and offline modes at extremely competitive exchange rates.

Very low balance is required in order to keep the account in the up and running status. The minimum account balance to be maintained is as low as Rs 10,000 only. If this balance is maintained, the account will be in the running status.

You will be able to access your account anytime and anywhere with domestic ATM cum debit cards, you will also have convenient and access to over 11000 ATMs, in the branches all over India and the phone and internetbanking as well.

You could also be benefitted from the interest rates that are calculated on daily closing balances at 4% per annum. The interest is paid half-yearly in June and December.

The interest that you earn in the current financial year is completely repatriable but only after the tax is deducted.

You can also avail simple and convenient money transfer tracking service with anonline transfer to more than a 100 banks in India.

The mandate holder would get a free chequebook and an ATM card so that he/she can access your account from anywhere and at anytime