Enjoy the convenience of bank loan applications through your smart phone

There will come the point in your life, where you will be required to borrow funds. You may have an option to borrow friends from your close friends or family. However, if the amount is large, or need it on short notice, or even for a specific purpose, you can always apply for a loan from a bank. Applying for a bank loan offers plenty of options, if not benefits. Here, not only will you be able to get a loan amount of your preference, but you will also have a comfortable control and flexibility when it comes to repaying the borrowed funds.

But in order to access these funds through the traditional process, you will need to approach a bank and get your application processed. At the same time, you would be required to submit certain documents that need to be verified. Once all these documents have been accurately submitted and verified in accordance with the banks representative, will your loan application be processed? However, this application process has several shortcomings. For one, the application process is long which may not be the appropriate solution during any financial emergency. Additionally, applicants who may not have a bank branch located nearby may not be able to access the loan they want.

To counter these problems, banks are now offering loans through the smartphone apps. Technological progression and the fact that almost every individual in the country possesses a smartphone, allows banks to reach out to potential loan applications and satisfy their financial requirements. Here is how you can enjoy the benefits of a loan from a bank, through your smartphone application.

Convenience: One of the main benefits of applying for a loan through the bank is the convenience. No longer would you be required to approach a bank of your requirement, and put in an application for the loan. This eliminates other resulting features such as approaching the bank within the given working hours or standing in long lines to get your application approved. By applying for loans through the bank app, you can easily apply for a loan at any point in time. You can even apply for the loan from the comfort of your home, your workplace, or even when you have ample free time.

Fast process: Each type of loan from a bank will have different processing duration. Additionally, through the traditional channel, an applicant would need to approach the bank several times to get the loan processed. However, through the app, you can easily get your loan application approved in a mere matter of minutes of not an hour. You only need to provide relevant details such as your bank account details, your employment status and details of your income. Once this is processed, you need to check your eligibility and proceed with the loan application.

All you need to know about Understanding the Payment System Under GST

GST has been a major reformation in the Indian economy. It stands for Goods and Services Tax and its liabilities must be computed every month. The concept of GST payment revolves around removal of several indirect taxes such as excise duty, state tax, VAT, entertainment tax and luxury tax and others. It was passed in August 2016 and implemented on the 1st of July 2017. This will make the taxation system uniform and reduce the burden put on people by the payments of multiple taxes. Goods and services have been categorised into the following tax rate slots 0%, 5%, 12%, 18% and 28%. Rough and semi-precious stones and gold have a special rate of 0.25% and 3% respectively. The entire concept of GST revolves around subsuming all the indirect taxes into one single tax.

ADVANTAGES OF GST

1) Removing cascading tax effect.
2) Higher threshold for registration.
3) Composition scheme for small business.
4) Online simpler procedure under GST.
5) Lesser compliances.
6) Defined treatment for e-commerce.
7) Increased efficiency in logistics.
8) Regulating the unorganised sector.

IMPACT OF GST

Salaried employees- The term goods and services tax clearly demarcates the taxation area. It is applicable on business and salaried employees won’t be affected directly by this. Prices of most of the commodities shall change and this may indirectly affect this class.

Business- Doing business will be a much sorted affair with the elimination of a mesh of taxes and the creation of a single market. But these advantages shall only be visible on the long run.

Crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas shall not be taxed.

COMPONENTS OF GST

CGST- the Central Goods and Services Tax shall be levied by the centre.

SGST- the State Goods and Services Tax would be imposed by the State.

IGST- Integrated Goods and Services Tax shall be paid when goods or services of one state are being sold in another. This shall also be levied by the centre.

HOW TO PAY GST

GST payment is done on every level of value addition by the buyer. Every person involved in a business must file for a GST return. The following must be submitted by a registered dealer in this process:

1) Purchases
2) Sales
3) Output GST (on sales)
4) Input tax credits (GST paid on purchases)

The dealer has to file 3 monthly returns and one annual return amounting to 37 returns in a year. The variation between this output GST and Input Tax Credit shall be the amount either payable or returned by the government.

Steps to get the best personal loan rate with this Tool

Redefine the way you look at your personal expenditures by taking a personal loan, be it for the trip you had been longing for, a new phone, or that picture perfect wedding. Your dreams are just a few clicks away on a personal loan EMI calculator that will give you a clear picture about how little you have to spend monthly.

Always compare the rate of interest for a personal loan before applying for one. Also check for provisions of flexible payment schedules. You can calculate the EMI to be paid in different instalments by using the personal loan EMI calculator and it also saves you from visiting all these offices to get a detailed scenario, if you take a loan from there.

Spending Rs.5,00,000 instantly may seem to be a very difficult task for many but when this is broken into payments over 60 months at an interest rate of 7.75% the amount payable monthly would be Rs.10114. The personal loan EMI calculator changes the perspective with which we look at something expensive and makes it seem much more affordable.

The best thing about a personal loan EMI calculator is they give you an error free figure that is easy to understand. It also helps spare the need of running to the bank personally to know the status of your loan account. You can sit at home and have a clear view of how far you are in repaying your loan.

STEPS TO BE TAKEN WHILE APPLYING FOR A PERSONAL LOAN

Make a budget – According to your need plan a detailed budget. Over-borrowing may seem to be a safe option but in the long run you would be in a debt for an unnecessarily extended period of time. Similarly you would not even want to end up with an amount lesser than you need.

Realise your affordability – After considering your monthly expenditure make a note of how much money you are left with. Make full use of the personal loan EMI calculator to determine how much your monthly instalments shall amount to. Compare it with the amount you have extra every month and decide wisely whether or not to go ahead with the loan.

Scan the market for best rate of interest – Look for the lowest rate of interest on your loan. This scanning can be done easily sitting at home surfing the internet.

Find suitable time period for repayment – Also take into account the tenure of the loan and the policies related to paying it off early or extending it. Often banks have rules that do not allow paying off of loans before the loan period ends or they include a higher interest if you try to do so.

The Ideal Remittance Guide You Should Refer To

India has made an astounding progress economically in the last few years. Many who leave the country in search of better career prospects often feel the need to send money to India. In the previous year, India has surpassed China to become the highest remittance-receiving country in the world according to a UN report. When you remit to India you contribute greatly to the development of the country’s economy as the inflow of foreign money into the Indian economic clockwork means more funds for channelization in developmental projects.

DIFFERENT METHODS OF REMITTANCE

The different methods of remittance can be classified by the mode of transfer into two broad headings, manual deliverance of funds and electronic transfer of funds.

MANUALLY THE FUNDS CAN BE SENT IN THE FOLLOWING WAYS:

MONEY ORDER- You can buy a money order form the bank, certain retail stores and post offices and post it to the person you wish to pay. It is one of the oldest ways to remit to India. The receiver of the money order can either get it cashed or deposit it just like a draft or a cheque. Though it is a time consuming method, it is preferred because it is a secured way. In case it is lost or stolen it can be replaced. Also the advantage of being able to use a money order without having a bank account makes it very convenient.

FOREIGN CURRENCY CHEQUES- The simplest way to send money to India is writing cheques and posting it. The only disadvantage of this direct method is it takes a lot of time. But once it reaches, the receiver can simply go to his bank and deposit it or cash it as per his needs.

FOREIGN CURRENCY DRAFTS- This method is very similar to sending cheques from abroad. It is a method preferred by businessmen. There is no chance of a failed transaction like a cheque as sending a draft does not depend upon the balance you have in your account.

ELECTRONIC TRANSFER OF FUNDS CAN BE DONE IN THE FOLLOWING WAYS:

REMITTANCE CARD- This is like a debit card that can be used to pay for all the needs and requirements of the people in India. For using it, the person staying abroad has to recharge the card and the amount will be available for use in India. This saves a lot of time and is the most convenient option for those who are technologically sound.

DIRECT DEPOSIT- This method is the best possible option for those who transfer funds regularly to India. Here an Indian bank is authorised to withdraw money from that person’s account in the foreign bank. The money transferred can be collected by the recipient directly from the bank.

Make a smart money transfer to India with these tips

A responsible Indian never forgets his family and their needs where ever he/she may be in the world. He always looks for a way to provide for all the necessities and comforts even if he/she is staying away. The biggest task for those staying abroad is selecting a method for money transfer to India.

1) Realise who you are sending to – We may often need to send money to different people from different socio-economic backgrounds. There are still many people living in India who do not have bank accounts. To cater to the needs of such a person you would have to resort to an age old method of sending a money order. A money order is a payment certificate that you can buy from a bank, post office or some retail stores. The receiver of the money order can either cash it or deposit it directly to his bank account just like a cheque or a demand draft.

2) Make transactions when rupee value is higher – The value of one pound in rupee keeps changing with the fluctuating market rates. So if you transfer funds at a time when the rupee value is low the receiver shall get lees money as compared to then when the value is higher.

3)  Urgency of your transaction – If you do not have an urgency to make a money transfer to India you can take time and send it in the form of cheques, demand drafts or money orders. But if you are in a hurry the best option for you would be using a remittance card. All you need to do is, buy a remittance card on behalf of your family and recharge it regularly. Your family can use this card to withdraw money or make payments as and when needed. This is the most convenient option to carry out a money transfer to India from other countries.

4) Purpose of your transfer – If you are sending the money for an official purpose and specially in case of making payments in business that involves export and import of goods you should use the foreign currency drafts. This process takes time but is safer. Also you can avoid chances of transactions failing due to low balance in your account.

5) Open an NRE account for your transfers and earn interests – An NRE account stands for a non-residential external account. You can open one of these in an Indian bank before leaving the country (opening such accounts from abroad is possible but complicated and time consuming). You can deposit your earnings in foreign currency to this account and the bank shall pay you a good amount as interest. You can have this account in joint-holding with anyone from India or authorise a person in the country to operate your account by giving him a power of attorney. This shall reduce your problems faced for money transfer to India considerably and you will also earn a good amount as interest while taking care of your loved ones.

Looking to get an optimum result on your FD? Used the FD Calculator

Investing in Fixed Deposits is one of the best and most secured ways to let your money grow. It is a onetime investment that reaps interest monthly, quarterly or at a short term as per your choice. The safest feature of a fixed deposit is that it is not subjected to market risk. You get an assured return on your amount invested. The maturity amount and the interest earned when you open a Fixed Deposit account can be determined using an FD calculator. This gives you a clear picture of how your investment is working out.

To optimise your outcome from investing in fixed deposits you should always compare the rate of interest provided by the bank, the time period for which the investment is being made and at what interval the interest is being calculated. The FD calculator comes in handy while analysing where to invest.

It is wise to make multiple FD accounts than investing the entire sum at once. In case of an emergency, even if you withdraw from one of the FD accounts while the others stay intact. The bank in case of a premature withdrawal from a fixed deposit account levies a penalty that it deducts from the amount it pays you. The amount that you receive in such an instance is calculated using an FD calculator by the bank and it includes the principal amount and the interest earned till then.

Your FD might be your easiest way to get a loan from the bank. The bank where you have your FD account can provide you with a loan of nearly the amount of the value of your FD. The percentage given as a loan ranges from 85-90%. This loan is granted for a short period of time and under no circumstances can exceed the period of you FD. You can know your loan amount by calculating the value of your FD.

The FD calculator can be a good guide for determining the way to extract benefits of your FD. When the math is done we get a better grip on what we are heading to. The interest you earn out of your FD can either be reinvested or withdrawn.
Reinvestment provides you with a higher amount of interest than the previous year. If you keep withdrawing the same rate of interest is given every year until your FD matures. The interest earned from FD is taxable if it crosses a certain limit. There again FD calculator helps you to assess your interest amounts and aids in its management. It is a tool that simplifies the financial jargons and gives you an easier insight into your money and its management.

EMI VS SIP: Which is the better Options?

Our needs are changing every day. Gadgets, lifestyle objects and vehicles are now slowly becoming a part of our daily needs. To meet with these requirements we need to choose the mode of payment wisely depending on our income, affordability, price of the product and our other liabilities. Various fund management and payment methods such as SIP and EMI have come up that makes expensive goods affordable. With EMI calculators being available online we can now easily enter our required amount and suitable time through which we shall repay and voila we know much we need to pay every month sitting at home.

WHAT IS EMI?

Equated Monthly Instalments (EMI) is a method to repay a loan taken by a person from a bank. It is a fixed amount that a person pays to the bank each month to pay off the principal amount borrowed and also the interest acquired on it. EMI facilities are available on all forms of loans such as car, house, education etc. You can also use emi calculators to facilitate emi payments.

WHAT IS SIP?

Systematic Investment Plan (SIP) is used for a mutual fund scheme where you are allowed to invest small amounts over a period of time rather than paying a lump sum amount once. The amount payable at a SIP can be as less as Rs.500.

EMI VS SIP

The utility of EMI and SIP are case sensitive. They both have their advantages and dis advantages. While EMI increases the net amount paid by you for purchasing a product, SIP increases the time needed for you to be able to buy it. A SIP is useful when we want to develop a fund and have future plans to invest them. But for immediate needs EMI is a better solution.

EMI gives you the option of purchasing in the present instance. Situations like expenditure for your education cannot wait for you to slowly grow your fund. This has to be done immediately before you pass the eligible age. Here taking an education loan is a better option. Loan calculators help the process of determining monthly EMI’s by dividing the principle amount and interest acquired by the time over which it shall be repaid. But if you think from another perspective a student starting a career is burdened with the yoke of a pending amount. Here as a parent, you can start saving early in small amounts for your child’s future and education through SIP. 

It is intelligent to pay EMI for creating an asset such as building a house rather than for buying a product whose price depreciates over the period through which you pay the EMI such as a car, laptops, furniture etc.