Why should you opt for the fastest option to send money to India?

There was a time when many struggled to send money to India while living across the seas. It entailed high exchange rates, long wait and risk. But today, it has become very easy to send money to India to one’s parents, family, friends as well as business partners. One does not have to wait in never ending lines at the bank in order to transfer money overseas. These days the internet has become a rage, and things have become quite easy, from shopping online to even transferring money to India.

When one is considering ways to send money to India, they look for options that are fast, cheap as well as reliable. While the exchange rate and reliability of the online transfer service, bank or Transfer Company are important factors that should definitely be considered, always make sure you choose the fastest method of sending money. This is primarily because one can stay assured that they will be able to transfer money anytime or at the time of any emergency without worrying that it will not reach on time.

Thus, when choosing a transfer company or bank, or even an online method to send money to India, here are a few factors that should be carefully considered-

1. Time taken to transfer- This is quite an important factor that should be considered. If the transfer needs to be done quickly choose a service that does it in just a matter of minutes. There are services that complete the transfer in a span of 2-5 business days as well.

2. Exchange rates offered- exchange rates vary from bank to bank and services to services. Find out the exchange rates that are offered by various services, tally them properly and choose the deal that suits you best.

3. Transfer fees- In most cases transfer services do not charge any fees. But banks and some online services do. In case of online services the transfer fee is very low, but banks do tend to charge high fees. For example, in case one has to transfer money from U.S.A to India, some banks charge as high as 25$ for every transfer.

4. Minimum amount that can be transferred- The minimum amount that can be transferred also varies from service to service. While some transfer services in the U.S allow one to send money to India as low as 10$, there are others that only allow transfers that are 200$ or more.

5. Customer service and reputation- Choose a service that offers good customer care. This is because if there is any problem with the transfer one can follow up with questions.

How to transfer funds from an NRO account to an NRE account

Sometime back, Non-resident Indians, that is, NRI’s could transfer cash from their NRE to their NRO account, but vice versa transfer was not allowed until the year 2012, when the government made such types of cash transactions possible. 

A NRE account stands for- Non-resident external account, whereas the full form of a NRO account is Non-resident ordinary account.

While it is quite simple to transfer cash from NRE to NRO account, some norms have to be adhered to while transacting cash vice versa. Currently, only about 1 million dollars can be transferred from a NRO account to a NRE account. The following steps should be kept in mind when transferring cash-

1. A FEMA declaration has to be made

The document essentially declares your eligibility to transfer money from a NRO account to a NRE account. If one does not produce this document the bank can refuse the transfer of the cash.

2. Fill the form 15CA

Filling the form can prove to be a bit tedious, but patience is the key. Log on to the website of the income tax department, using your pan card and login credentials. Read the instructions regarding the form 15CA and fill up accordingly. Once the form is filled submit it and get hold of a print out which you have to present to the bank.

3. Get hold of form 15CB from your chartered accountant

One also needs to submit the form 15CB and can avail the help of a chartered account to do so.

4. Submit all documents to the bank

Once the forms are filled and submitted, ready the various documents that have to be submitted to the bank. Make sure you have a copy of-
• Form 15CA and form 15CB
• Demand draft or a cheque with the amount that needs to be transferred
• Request letter for transfer, or a form depending on the requirements of the bank
• Other documents that the bank has asked for

5. Transfer of amount

Once the bank verifies all the documents that have been submitted, it will proceed with the transfer of money from your NRO account to your NRE account.

When endeavouring to transfer cash from NRO account to a NRE account make sure to find out relevant information from the bank. This is because the steps of transfer and documents required may vary from bank to bank. Also make sure that no mistakes are made while filing both the forms. Any error may prolong the entire process of transaction.

Transfer of funds from NRO account to a NRE account should be done fast to reduce tax payments and enjoy other benefits.

Precautions to take in order to avoid a personal loan debt trap

Known to be an unsecured loan, a personal loan helps one during a financial emergency. One does not require to place any security or collateral to avail the loan. Moreover the loan can be flexibly used to serve one’s purpose, be it paying medical bills, travelling, clearing educational fees of children or even getting them married.

Personal loan in India is quite sought after because it can be easily availed and is quite flexible. One may opt for a personal loan, especially if they need the money for a short period of time. But a personal loan in India as well as other countries, generally comes with a high rate of interest, thus certain precautions have to be taken while opting for this loan. Any type of default in the repayment of a personal loan can lead to major outgo and in many cases heavy debt as well.

Thus, certain precautions should be kept in mind while opting for a personal loan in order to ensure timely repayment of the amount-

1. Do not opt for multiple loans

Sometimes, a desperate need to acquire funds because of a financial crisis may compel borrowers to apply for multiple loans from various banks. This action, will greatly reduce chances of loan approval and sanction. When an application for a loan is made, the banks first go through the entire credit history of the borrower. If you have availed more than one loan, it may adversely affect the credit score. A person who does not have a very high credit score is generally charged a higher rate of interest, as compared to a person who has a good score.

2. Only borrow the amount that can be repaid

One can avail an instant personal loan from a number of banks today. Many borrowers take a hasty decision and avail the personal loan without considering if they have the potential to repay the loan in time. To ensure timely payment of the EMI, see that it does not surpass about 35% to 40% of the monthly income.

3. Loan tenure should be chosen after considerable thought

In order to reduce the burden of personal loan repayment, choose a short loan term. More the tenure of the loan, higher will be the total cost of repaying the loan. This is primarily because a higher tenure means a higher interest amount to be paid on the whole. Also keep in mind that you choose a loan tenure according to your capacity to repay the loan.

Apart from the above mentioned points, also make sure that EMI’s are paid on time and defaults should not occur. Moreover, the documents should be thoroughly read and considered before availing the loan so that no hidden costs are missed.

All About Business Loans

A business loan is always the answer to several financial problems and crises, small businesses and start-ups usually face Getting a business loan is a lengthy process and these are few of the ways one can get a business loan.

You have to come up with and present a good business plan – your business plan has to very succinctly and clearly bring out what your business entails because this is the first and foremost requirement for all the banks who will be giving you the loan. When you have a plan that is very clear int terms of stating the business goals you plan to achieve and how you would you be utilising the money that would be lent to you, you are more likely to get a quick approval for the loan. Especially, in case of small setups, business plans are the only thing to rely upon and they therefore assume great importance.

Check your Credit Score – You have to be very careful and be completely aware of your credit score before you even think of applying for any loan for that matter. Your credit score is the deciding factor and it is one of the most important factors that banks use when they are judging one’s capability to pay off the borrowed amount. Therefore, when your score matches the eligibility criteria of the lending institution, your chances of getting the loan approved increases and you end up getting the loan.

Know how much you need and why: All banks and other financial institutions have two main  categories namely good reasons and bad reasons, and both these reasons purely depend upon what you need the money for. So make sure to keep in mind all the expenses for real estate, or in case it is for software development and buying of necessary equipment because these are usually the good reasons. The bad reasons are requirements for building offices, acquisition of non- essential business assets and supporting any financial loss. Therefore, before moving towards a bank or a financial institution for the business loan, you have to weigh your requirements and reasons properly. You also have to set your financial projections right and get an accurate estimate a proper budget for all your plans, and all of these should be done much before you apply for the business loan. You also have to now how much amount you would be borrowing

You have to get all your documents in place- if your documents are in place and all of them are arranged in order, getting the business loan gets a lot easier and the disbursal is quicker. The foremost documents that you would require are your ID proofs, address proofs, balance sheets, requisite business documents and permits, cash flow statements, and income statements. These documents are essentially required by the banks or the institutions to prove that you are credible enough and you have the ability to pay back the loan on time to bank and without delay.

It is best to compare all your lending options– When you have your document in place, you have to find out which banks and financial institutions are lending business loans to customers. This is the stage when you need to do an extensive research of what all borrowing options are there in front of you? You can then make a list of banks and lending institutions that shell out business loans and give you the best rates for the loans and pick the most suitable one.

What Is A Demat Account?

Have you made up your mind to buy shares this year? Or have you decided that at least a part of the initial public offering is what you desire? If your answer is yes then you need to open a Demat account. Then there are a few questions that need to be addressed.

Do you know the difference between a depository and a depository participant?

A depository is a place where the stocks of the investor are held in an electronic format. This is more like a bank. The head office where all the technology is present and the details of al the accounts held is like the depository. And the DPs are like the branches that cater tp the individuals.

There are just two depositories in India namely the National Securities depository Limited which is also known as the NSDL and the central depository services limited  also known as the  CDSL. There are more than a 100 DPs

What is a Demat account?

Demat account is a Dematerialised account. When you want to save money pr you need to make a payment in cheques you need to open a bank account and when you want to buy and sell stocks you need to open a Demat account. Therefore is like a bank account where the actual money is replaced by shares. You have to approach the DPs which are like bank branches to open your Demat account. For instance if your portfolio shares is more like 40 shares o Infosys, 25 of Wipro, 45 of HLL and 100 of ACC, everyone will show in your Demat account.

Therefore there is no need for you to possess any kind of a physical certificate  that show you  that you are the owner of these shares. They are there present in your account in an electronic format. Whenever you buy and sell the shares they get adjusted into your account. This is more like a bank passbook or an account statement, the DP will provide you with statements of your holdings and statements from time to time.

Do you want to know whether the Demat account is a must or not?

Nowadays all trade have to settled in a Dematerialised form, although the market regulator, the securities and exchange board of India also known as the SEBI has allowed trades of upto 500 shares to be settled in a physical format, however the case is that no one wants a physical share anymore and it has now become a thing of the past.

In order to begin you have to first look for a DP to ha an account with. Sometimes the banks are the DPs and some banks are even brokers. You can choose your own DP.

These are few elementary points pertain to the Demat account

Different Types Of Debit Cards In India

Get a thorough knowledge about debit card is?

A debit card is a card that is used for monetary transactions instead of cash. It is also called plastic cash, bank cards so on and so forth. With a debit card you can easily access your savings bank account in any bank from ATM’s you can deposit and withdraw cash whenever you want to and this would even save you the hassles of standing for hours in a long queue. A debit card can also be used in mobile and internet banking.

Do you know about different types of debit cards are available in India?

Visa debit cards: 
Such debit cards are issued with the bank’s tie-up with Visa payment services and this is why they also provide the Verified by Visa platform for online transactions.

MasterCard debit cards:
A MasterCard cirrus card or a MasterCard Maestro Card gives worldwide access to the funds of the customers and this is why they can easily carry out online transactions using their bank accounts by making use of the MasterCard SecureCode platform.

Visa Electron Debit cards:
Visa electron debit cards are absolutely similar to the Visa debit cards and the only feature that is missing from these are that these cards do not provide the overdraft feature.

RuPay debit cards:
NCPi had introduced this card as a domestic card scheme. These cards help to carry out online transactions on the Discover network and ATM transactions under the National Financial Switch network.

Contactless debit cards:
Just a tap or wave of the contactless debit cards enables the customer to make a payment near PoS terminals as these cards work on Near field technology also known as NFC therefore making any electronic payment transfer is safer and secure.

Maestro debit card:
Maestro from Master Card is a premier international debit card. It was founded in the year 1992.It is a service that has been popularly adopted at over 13 million locations that has been overspread across more than 100 countries across the globe. The signature logo on every Maestro partner card makes them easily identifiable. And this popularity instantly enables the customer to gain immediate access to his or her money  through a network of compatible ATM’s, POS outlets and online resources that are at once international and at once robust.

Do you know there is a difference between an ATM card  and a debit card?

The main difference between an ATM card and a debit card is that ATM cards can be used just in ATM machines to withdraw cash whereas a debit card can be used in ATM machines and in stores and restaurants as well for online payments.

All About Internet Banking

Internet banking or E-banking implies that any user or a bank customer who has a personal computer and a browser to his or her bank account through the website of his or her bank so that they can carry out any of the virtual banking procedures. In the internet banking system the database of the bank is centralised and is web enabled.  All the services that the bank has allowed to carry out on the internet are displayed in the menu of the bank website. Out of these services the desired service can be selected, going further the interaction between the computer and the internet banking website is dictated by the kind of service that is being performed. The conventional model of a bank is now being replaced by alternative delivery channels and ATM networks.

Once the branches of the banks are connected together by the satellites links there would be no physical bank branch.  It would be more of a border less entity that would allow anytime anywhere and anyhow banking.

This is how the internet banking in India works –

1. Information only system – general information for instance the  interest rates, bank products, branch location, loan and fixed deposit calculators are provided for in the bank's website. There are also facilities for downloading various kinds of application forms. The communication between the customer and the bank is normally done through email. There is absolutely no interaction between the customer and the bank’s application system. And the best part is that in this system there is no possibility that any unauthorised person will get into the bank system through the internet.
   
2. Electronic information transfer system – The internet banking system in India provides customer specific information which includes account balances account summaries and bank statements. The information is largely in the read only format. The customer is identified and authenticated through a password. The information that the customer is looking for us fetched from the computer system in an offline mode or a batch mode.
   
3. Fully electronic transactional system - This system in the internet banking allows bi-directional capacities. The customer can submit the transaction for online update. This system calls for a huge security and control and in such an environment the web server and application systems are linked to secure infrastructure. A technologically advanced computerisation, networking and security, intra-bank payment gateway and legal infrastructure are what it is comprised of.
   
4. ATM or the Automated Teller Machine – it is designed to perform the most important function of the bank. It is made operational by a plastic card with special features and this plastic card cuts down on the cheques, banking hour restriction, long queues, paper verification and other formalities. These are electronic debit cards

These are a few points that are worth noting when it comes to internet banking.