Why personal loan has become a popular option for financial aid?

A personal loan is availed by individuals who need money urgently to meet their financial needs. While other loans, like a home loan or a car loan are given against some sort of security, a personal loan can be given without a security. Most banks only see if the borrower holds a credit card to approve a personal loan.

Here are some advantages of a personal loan that make it one of the best options for people seeking financial aid-

Can be used for various purposes

While a home loan can only be used to finance a home, or an auto loan can only be used to buy a car, a personal loan can be taken to meet any financial requirements. It can be used for a variety of purposes such as meeting medical expenses, organizing travel plans, educating children or even getting them married. Sometimes a personal loan is also taken in order to make home renovations and improvements.

Can be availed easily

One can get hold of a personal loan very quickly. In case of some banks, the loan approval and sanction of the amount takes about 24 hours only, depending on the urgency of the loan. Thus, in case of a sudden emergency it is best to get a personal loan.

The documentation required is minimal

As compared to a home loan or an auto loan, which require a number of documents to be produced at the time of loan application, a personal loan requires very little. Thus, the loan processes faster.

Unsecured loan

This may be one of the biggest benefits of a personal loan, it is unsecured. One can get hold of a personal loan without offering any security. The term of the loan is also shorter when compared to a housing loan or an auto loan. This ensures safety of assets.

Moreover, a personal loan also greatly improves one’s credit score as well as history, in short it enhances one’s credit profile to a great extent.
 
But while opting for a personal loan, one should also keep in mind that they should only borrow the amount that they can afford to repay. One should also try to clear their personal loan well before their tenure comes to an end, in order to maintain a good credit history.

Before opting for a personal loan, it is important to consider how urgent the money is and the purpose of use. While the loan can be easily availed and is quite convenient, default of any payment can result in problems.

EMI Calculator: Using this tool to calculate the ideal loan amount

EMI, which means Equated Monthly Instalments, is a sum of money that has to be given every month in order to clear a loan. The EMI is generally fixed, but the amount of principal or interest that has to be paid varies from one month to another. During the first few months of clearing the loan one is likely to pay more of the interest as EMI than the Principal amount.

When it comes to taking a loan, the first step involves calculating the loan amount that one requires and preparing for loan approval. The cost of the loan needs to be calculated and it can be best done with an EMI calculator.

A loan calculator will effectively help an individual calculate the amount of EMI that he will need to pay, along with the rate of interest that will be charged on the loan. Once this calculation is effectively done and the loan amount is fixed, an application to the respective bank should be made.

How does an EMI calculator function?

One needs to provide information like the loan amount one wants to acquire, the tenure of the loan, the rate of interest and the overall loan processing charges, in order for the loan calculator to calculate the EMI.

Once the above information is provided to an EMI calculator, it will offer the EMI that will have to be cleared, the entire breakup of the loan payment and will also offer view of the amortisation table, which will include the amount that needs to be cleared after every year of the loan tenure.

Some more advanced type of EMI calculators may also show a pie chart, offering the entire breakup of the loan.

Benefits of using a loan calculator

• An EMI calculator offers accurate numbers in a matter of seconds. One just needs to feed in relevant information into the calculator to get a clear breakup of the loan amount that needs to be paid back.
• It helps simplify the hassle of manually calculating the EMI of the loan and other related numbers. Thus, it effectively reduces the borrower’s confusion when it comes to complex calculations.
• An EMI calculator is a great tool when it comes to managing and planning finances. Comparisons can be easily made between the various interest rates and other offers given by different banks. One can put in a number of different combinations and choose the bank that offers the best deal.

A number of different loan calculators are available on the website of various banks online. One can easily take the help of this calculation tool to plan his loan.

What are the different channels through which you can send money to India?

Staying abroad? Wondering how to send money to India? Today a number of different services and means of sending money to India have come up. These services are not only cheap but even fast and extremely reliable.

It has now become easy for NRIs to send money to their family and friends living in India, or corporate businesses abroad to pay their business partners or employees in the country. For those wondering how to send money to India, here are a few different channels that work best-

Online transfer

The world of internet is fascinating and makes things easy. When considering how to send money to India, one can opt for simple online transfers. It is without a doubt one of the easiest methods of sending money to India. One has to get in touch with their bank and opt for online transfer services, once this service is activated transferring money to India is possible with just a few clicks of the system keyboard. This way of transfer is especial recommended for those who send money to Indian regularly.

ACH transfer

Automated Clearing House (ACH) transfer is a method by which the money is transferred electronically. One only needs to transfer the money via their bank account through ACH transfer and it will reach India in about 4 working days. This system of transfer involves no extra fees or frequent banks visits.

PayPal

Known to be one of the largest in online payment processing, PayPal is an easy and fast way to transfer money to India from overseas. This type of payment method is mobile friendly, thus the transfer can be done anytime anywhere. While no transaction fees are charged through this medium of transfer, the recipient of the amount may have to bear a small fee.

Money orders

This method is quite safe and cheap, when sending small money amounts to India. Almost all banks deal in money orders at a small charge.

Wire Transfer

The traditional way of transferring money to India, wire transfer is a service being offered by banks since 50 years and running. One has to pay a couple of visits to the bank in order to wire transfer the amount to India. This process takes time, but transferring money is fairly simple.

Bank drafts

A practical option, as the cheque can be immediately cashed by the recipient in India. This type of transfer method is costlier than others, but if the money is lost during transfer it can be tracked down conveniently.

Other transfer services include Transfast, Xoom, MoneyGram and personal checks.

Applying for car loans? Here is what you need to know

In India everyone wants to build their own home first and then invest in a car. One can definitely make this purchase faster and easier with car finance options. A number of banks and non-financial institutions not only offer goof homes loans, but excellent car loans as well. 

Car loans today, come with low interest rates, feasible tenures and affordable EMI payments. Thus, with a number a car finance options many are able to enjoy the comforts of their very own car while effectively balancing their monthly budget.

Here are a few facts that one should know when opting for car loans-

Availability of car loans

Car loans can be availed when buying a brand new car and even on a car that is pre-owned. In both cases the rate of interest varies. The rate of interest on a new car loan varies from 9.25% to 13.75%, while on a car that is pre-owned, one may get an interest rate ranging from 12.5% to 17.5%.

Eligibility criteria

An eligibility criteria exists for all kinds of loans, and car loans are no exception. One needs to fulfil some conditions in order to avail an auto loan. Some factors that influence eligibility are age of the borrower, monthly salary, and type of employment as well as resident address.

Here is a list of some of the documents that a borrower will have to produce at the time of loan application-

• Identity proof, for instance a copy of your PAN card, driving license or passport
• Proof of address
• Proof of age
• Photographs
• Documents of the car
• Proof of income which may include salary slips of minimum 3 months, or a recent income tax statement

Some banks or lenders even require a copy of the car insurance at the time of submitting the loan application.

Approval of loan amount and interest rate offered

The amount of loan that may be approved, and the interest rate offered on the loa.n generally depends on the age as well as income of an individual. Most lenders give around 80% to 90% of the loan amount that has been applied for. A few may also be ready to offer 100% of the amount that is applied for.

The rate if interest charged on car loans is mostly fixed. Some individuals also opt for a floating rate of interest with the hope that the interest rate may fall soon. In case of car loans, some lenders also offer discounts on the rate of interest to women. Thus, go through the details when considering various car finance options

How can your international travelling benefit from multi – currency cards?

Multi – currency cards are known to be pre-paid cards that one can opt for when travelling to various countries at the same time. Banks generally allow one to load major world currencies like the US or the Canadian dollar etc. These cards do not work in India, Bhutan and Nepal.

Multi – currency cards can be extremely beneficial for business travel and even holidaying at various exotic destinations. Here are a few uses of such cards that one should be aware of-

Easy access to various currencies

One can load Multi – currency cards with a number of foreign currencies depending on the various currencies that their respective banks allow. For example, 16 currencies are allowed to be loaded in Multi – currency cards offered by Axis Bank Ltd, while ICICI Bank Ltd allows about 15 currencies and HDFC bank allows 20 currencies. These currency cards can be used at outlets to make payments or at the ATM for cash withdrawal.

Transactions are straightforward and simple

While international credit cards involve transactions fees as well as high maintenance fees that is generally paid on a yearly basis, there is no such hassle involved with Multi – currency cards.  With Multi – currency cards, one will only have to pay the expenses that they clear with the help of the card.

Fixed rate of exchange on purchase

While the rate of exchange keeps changing on a day to day basis, it will remain fixed in your case at the time of purchase of the card. Thus, one may enjoy a cheaper rate of exchange even if it has increased substantially.

Thorough protection

Multi – currency cards are well protected, thus they offer security of money. In case of card loss, just inform the bank and the card will be blocked immediately. Moreover, a replacement card will be issued in the next 48 hours.

Avail great deals

There are a number of Multi – currency cards that also offer great discounts and benefits on flight travel and holiday packages. Most cards also offer travel insurance, which include situations like a lost card or insurance on delayed baggage.

Minimal paperwork

One can easily avail Multi – currency cards through their bank. Just submit a copy of the flight ticket, an A2 form, PAN card information and a valid passport. On the basis on these documents the travel card will be issued in a short period of time.

Multi – currency cards have made it extremely convenient for business men and corporate companies to undertake exchange and payment in foreign countries. All details should be read and understood before availing a travel card.

Guidelines to investing in NRI accounts

The full form of NRI is Non-Resident Indian, that is, a person who has Indian citizenship but lives overseas. All banks have certain benefits and features that aid NRIs in maintaining various types of accounts in the country, so that they can control their funds effectively. But there are certain rules and conditions when opening NRI accounts in the country.

Essentially an NRI can hold 3 types of accounts with Indian banks. They are-

1. Non-Resident (External) Rupee (NRE) Account
2. Foreign Currency (Non-resident) Bank Scheme (FCNR (B) Account)
3. Non-Resident Ordinary Rupee (NRO) Account

Here are a few facts that you should know when opting for the above mentioned NRI accounts-

• Eligibility to open NRI accounts
In case of NRE and FCNR (B) accounts, a NRI or PIO (person of Indian origin) is allowed to open such accounts. Pakistani and Bangladeshi residents have to first get approval from the Reserve bank of India (RBI) before they are allowed to open such accounts.
In case of NRO accounts, Pakistani and Bangladeshi residents have to first get approval from the Reserve bank of India (RBI) before they are allowed to open such accounts. While NRIs dealing in bonafide Rupee transactions can open this type of an account.

• Eligibility to hold joint NRI accounts
All the three accounts can be held jointly by 2 or more PIOs or NRIs. An NRI can also hold a joint account with a relative who is a resident in India.

• Currency that can be deposited
In case of NRE and NRO accounts, deposits can be made in Indian Rupees only. In case of a FCNR (B) account, any type of foreign currency that can be easily converted is allowed.

• Various types of accounts that one can hold
In case of NRE and NRO accounts, you are allowed to open a savings account, current account, fixed deposit account and even a recurring deposit account. In case of a FCNR (B) account, you can only hold a term deposit account.

• Term for Fixed deposits
When it comes to a NRE account, one can maintain a fixed deposit account for a period of 1-3 years. The bank may allow a fixed deposit for more than 3 years depending on the asset-liability of the customer.
In case of a FCNR (B) account the period of a fixed deposit is always more than a year but should not exceed above 5 years.

A NRO fixed deposit account can hold any term depending on the resident account.

These are the few basic guidelines when it comes to holding NRI accounts, for more details one should consult the bank he wants to open an account in.

Know these smart facts about the NRO account

In case of NRIs (non-residential Indians) the easiest way to handle their earnings and funds in the country is via a NRO account. Thus, the Non-resident Ordinary (NRO) account may be opened either as a savings bank account or a current account. Just like the NRI account, the NRO is an Indian Rupee account.

In order to open an NRO account, one initially needs to provide documentation proof that they have gained NRI status. The documents that banks generally ask for include identity proof, proof of NRI status, foreign address papers and a couple of photographs.

The resident proof that is generally offered to banks are employment papers, student status, details of dependent visa, or a print out of the overseas resident permit. The proof that you provide should be attested either by the embassy of India, notary or a bank with a branch that operates overseas.

For smooth and fast transfer of account, one can also provide an Indian address proof along with the other documents. Once the application along with the documentation is submitted, it is reviewed by the authorities and if all is in place, the savings bank account will be transferred into a NRO account.
While opening an NRO account there are certain other facts that should be kept in mind. They are-

1. An NRO account is not only meant for NRIs. Persons of Indian origin (PIO) as well as overseas citizens of India (OCI) can open this account and enjoy its benefits.

2. In order to maintain an NRO account or for that matter even a NRE account, you have to have a minimum of Rs75, 000 in it.

3. Restricted repatriability has been initiated in case of the NRO account, this means that only 1 million $ can be remitted from the account annually.

4. While one does not have to pay taxes on the amount saved in the NRE account, the NRO account is subject to tax payment. Thus, the interest earned on the amount deposited in the NRO account and the credit balance too are subject to income tax clearance.

5. One can hold a NRO account with another resident Indian as per Section 6 under the Companies Act 1956.

Thus, opting for a NRO account will be beneficial in order to save funds in the form of dividends or rent coming from the country itself. A number of benefits are also offered to customers who hold this account. In case of a NRO joint account with an Indian resident, one can also hold it as a fixed deposit account, thus keeping his savings safe and sound.