What is the fastest way to send money to India?

A lot of people living abroad have friends and relatives in India. Sometimes individuals living abroad may need to wire money to India for personal or business purposes. With the banking sector having a global presence in the current times, it has become quite easy to send and receive money to and from any part of the world. With more and more people working abroad the amount of money being sent to India from other countries has increased over the years.

There are several ways of sending money to India, but the fastest and the most popular ways have been mentioned below:

1. Online Transfer:
If one wants to send money to India, they can do so through online transfer. You only need some basic information about the recipient to do this. This includes the name, address and bank account details of the recipient in India. If you have internet connection and online banking facilities transfer of money to India can be done from the comfort of your own house.

2. Paypal:
Paypal is a money transfer service which allows one to transfer money easily and quickly. Paypal service is mobile friendly and the sender does not have to incur any transfer fee though the recipient is required to pay a minor cover fee at times.

3. Xoom:
Xoom is a money transfer service which has recently gained popularity among those NRIs who send money to India from the United States of America. This transfer service assures that the money is transferred to the recipient in India in just a few minutes. Once the amount has been transferred to the given bank account in India, a message is sent to the registered mobile number.

4. NRI/NRE accounts:
This is one of the safest ways to transfer money to India. To transfer money in this manner one must first open an NRE account.  Through this method one can basically deposit a given amount in say US$ and the authorized recipient in India will receive it in the bank account in Indian rupees. This kind of transfer may not be instant. It usually takes a few working days for a successful transfer but then this kind of transfer is not only safe but non-taxable as well.

The four most popular, quick and safe methods of transferring money to India have been explained above. Now the choice of the best method, depends on the urgency of the transfer and the purpose of the transfer as well. If the transfer is not urgent and one does not want to incur any transfer charges, they can opt to use NRI/NRE account transfer.

How to avoid getting a rejection on your home loan application

Everyone dreams of owning a home which they can call their own. But the reality is that with real estate prices rocketing sky high, this dream may take some time and lots of effort to come true. But a home loan can help one in fulfilling this dream.

A home loan is basically a loan which is given by a bank to the borrower to buy a house or a property. The loan amount sanctioned depends on several key factors including the credibility of the borrower, the collateral which will be deposited by the borrower and his/her credit history.

There are several simple techniques which a borrower may use to assure that his/her loan application is not rejected. They are-

1. Ensuring no faults in the paperwork: In order to apply for a home loan, one needs to submit some essential paperwork which involves identity proof, income proof, current financial statements and other statements as the bank may require. The simplest way in which one may assure that the loan is not rejected is by checking and re-checking their paperwork so that it is complete and is in accordance with the requirements of the bank.

2. Assuring that one has a decent credit score: Every bank considers the borrower’s financial history before even considering the home loan application. This is done by calculating one’s credit score.  One should maintain a credit score that is above 600, in order to ensure that their home loan is approved.
There are several activities which can negatively affect one’s credit score, including delayed credit card payments and outstanding debts. Even if your guarantor has a bad credit history or a backlog of payments the credit score suffers. So, one must keep in mind to that they have a respectable credit score for a quick home loan apporval.

3. Stability of income: To assure that the loan is sanctioned one must be able to prove to the bank that they have a reliable and a steady source of income.  A new job or an unreliable one may lead to rejection of the application.

4. A proper location and a clear land title: A bank will always assure that the property that one is planning to purchase with the loan amount has a clear and a well- marked title. This is to ensure that there is no dispute regarding its ownership in the future. This is a basic criterion which must be fulfilled.

If one fills in their loan application by keeping the above points in mind, their loan application will surely not get rejected.

Reasons why health insurance is a necessity today

Good health is the key to a happy and successful life. But with a hectic and stressful schedule and unhealthy lifestyle most individuals are not very fit. One often avoids dealing with they own health issues. Considering all these factors, it becomes essential that one has health insurance as it is as basic as having a bank account or being educated.

Hospital bills for very minor to major ailments can put a strain on one’s finance. Sometimes medical bills hamper the savings of an individual. Getting quality and timely treatment for cure can also become a major problem due to lack of finances. All these problems can be easily solved by having a health insurance.

Having a health insurance will assure that an individual and his loved ones have access to quality healthcare in case anyone suffers from an ailment at any given point of time.  A health insurance covers medical bills and in lieu of this one is required to pay an annual premium. The sum depends on the health condition of the insured while the policy is made, the total amount of coverage provided and the scheme that the individual opts for. The following expenses are usually covered under a regular health insurance scheme:

• Pathological tests and other investigations prior to hospitalization
• Ambulance costs
• All hospital costs including room charges, consultation fees, charges for various procedures performed, cost of medicines, charges for medical tests and investigations including blood tests, scans and any other form of diagnostic tests.
• Charges incurred post-hospitalization for recovery of the insured individual, which includes cost incurred for investigations, medicines, procedures including physiotherapy and other such treatment usually for up to two months post-hospitalization.

With healthcare becoming more and more expensive each day, hospitalization may cost a person a few lakhs and this may severely affect their savings and may even lead to debt. This will negatively affect one’s financial condition. Here the role of health insurance becomes important. By paying a given sum to the insurance company every year one can ensure that when they fall sick and require hospitalization their medical bills are taken care of by the health insurance company.

In fact, there are many health insurance schemes that provide cashless benefits to their insured customers. These companies have direct tie-ups with several hospitals and so the company pays the bills without one requiring to spend even a rupee to clear the hospital dues.

Based on the benefits mentioned above one must consider getting a health insurance if they do not already have one.

Here is how to use your ATM card smartly

Almost everyone have ATM cards these days. It is commonly used for making payments and paying bills. The main benefit of using ATM cards is that one does not require to keep cash with them. This means they one saves time by not waiting in long ques to withdraw cash from the bank as well. ATM cards can be used to make online payments and withdraw cash from ATM machines which are found almost everywhere today.  Most people have one or more ATM cards, but do not use it efficiently.

There are a few ways through which one can use his ATM card efficiently.

1. Increase the credit limit of the credit card:
As a customer of the bank you may ask the bank to increase the maximum credit limit on the credit card. This will help make more withdrawals and purchases in a month without immediately paying the amount spent.

2. Always claim rewards:
As a customer one does get several advantages or reward points when some specific expenses are made, depending on the terms specified by the financial institution. The benefits may involve availing higher discounts on purchasing by using collected reward points, access to airport lounges or even en-cashing reward points. As a smart customer one must try to use their credit card in a manner which helps them accumulate these reward points and avail greater benefits.

3. Pay dues on time:
Making complete payments on one’s ATM card and clearing existing dues assures that you do not have to pay any late charges. If you think you may not remember to clear the credit card bill on time, one may also opt for direct deduction of the bill amount from their account to avoid late payment charges.

4. Check your credit card bill:
An intelligent and a smart customer will always check his ATM card bill before making any payment. One should carefully review and scrutinize their credit card bill each month to assure that they are only paying for what they have spent.

5. Secure ATM card information:
The internet is filled with hackers and scammers who may misuse debit or credit card information. To avoid such a mishap always assure that when you are making an online payment it is authenticated and secured. In case of any anomaly one should immediately contact their bank.

By keeping these little tips in mind and following them, one can smartly and efficiently use their ATM card and avail maximum benefits and perks as a valued customer of the bank.

Did you know how the education loan will benefit you?

Education plays a pivotal role in the success of a person. Individuals who opt for graduation and higher education may often find it difficult to self-finance their studies. It is in this situation that an education loan comes handy.

Education loan is a kind of loan which is given by banks to students who apply for it after taking their credibility and merit into consideration. An education loan is given to parents, students or the spouse of the student for higher education. Higher education here maybe defined as education one seeks after higher secondary level. 

An education loan usually covers the tuition fees, examination fees, laboratory charges, hostel security, caution money, travel expenses and approximately 90% of the total expenses which need to be incurred by students for the completion of a course.

Education loans have certain benefits. They are as follows:

• Under section 80 E of the Tax Act one can file for an income tax deduction in case they have taken an education loan. (the deduction will be on the interest rate and not the principal amount)
• Approval of a student loan or education loan means that though a person may not have the required cash to complete his/her higher education, he/she may be able to complete the course. This is because the course fee is paid by the bank and the borrower who is a student will start the repayment of his/her education loan only after completing the course and obtaining employment.
• Another important benefit of a student loan is that the student does not have to depend on his/her guardian for the course fee and this does not become a financial burden on them.
• Approval of a student loan to a certain extent depends on the merit and capacity of the student himself. This means that if the borrower is academically meritorious it will be helpful in getting the loan sanctioned.
•  If you are a female student then banks offer an education loan at a relatively lower rate. The interest rate is usually 0.5% lower for a female student than her male counterparts.
• Another major advantage of student loans offered by several banks is that there is a holiday period of anywhere between 6-12 months after the completion of the degree before the actual loan repayment begins. Though, if the borrower is able to get a job early he/she may start the monthly EMIs earlier.

Education loan is a blessing for those individuals who aim to pursue higher education but who do not have the financial means to fund it.

All you need to know about corporate banking

The term corporate banking has recently gained much popularity in the banking sector of the country.  Corporate banking refers to customized and tailor- made facilities, which a commercial bank provides to large firms, listed companies or corporations who happen to be their customers.  Such corporate customers enjoy certain special facilities and services from banks, because of the large quantity of business they provide. The most important function of corporate banking is the management of working capital of the corporation that is a customer of the bank.

The main point of difference between retail banking and corporate banking is that in case of retail banking the bank deals with an individual customer and his/her individual account, but in case of corporate banking the bank is concerned with multiple accounts of the listed company or large firm together with the accounts of its employees.

The following are some of the major features of corporate banking:

• Commercial banks provide foreign exchange transaction facilities to its corporate customers. This involves currency transactions and services involving foreign investments.
• Insurance facilities are provided by commercial banks to the staff and management of the corporations apart from insuring several activities of these large firms.
• Banks provide financial advice to corporations regarding merger, taxation, expansion of functions and other such issues.
• Financing existent and new projects of the corporations by sanctioning loans, is another facility which a bank provides to its special corporate customers.
• Banks also provide regular audit facilities to large firms to keep the financial statements of the corporation in order.
• Asset custody is another important service provided by banks to corporate companies. The bank manages the bank accounts of its corporate customers. This often involves issuing status reports of the financial state of these large firms on a quarterly or annual basis.
• Banks also often buy shares of its corporate customers so that the firm is able to enjoy greater liquidity required for its functioning.

Corporate banking is one aspect of the banking sector which is gaining greater importance each day.  Corporate banking is a crucial requirement in the running of a large firm or a listed company because proper management of finance is the key to a successful company. It ensures that the business runs smoothly, helping in short run as well as long run expansion and greater profits of the company.

Corporate banking services are a basic necessity for a large company to manage, invest and diversify its existing monetary assets. It makes every day money management much easier and more effective for the company and its owners.

How to decide which banks will give you the best loan?

Banks are financial institutions who perform several key functions. Among these an important one is providing loans to its customers. An individual will opt for a bank loan when he is in need of money. Loans are of different kinds and depend on the purpose of the loan and the terms on which a loan is provided. The different types of loan include a personal loan, home loan, car loan, business loan or a secured and even unsecured bank loan. There are a variety of banks in the country that provide loans.

In order to decide the bank that provides the best loan deal, there are a few factors one must consider before-

• Minimal paperwork:
 Most people who seek a bank loan for various purposes are aware of the amount of paper work involved. This may require a lot of time. But again, certain banks are customer friendly and approve loan applications with minimal paperwork. Those banks who seek only essential paperwork before approving a loan may be opted for.

• Quick processing:
It is seen that there are certain banks who are quick, efficient and transparent while providing loans while others are not so. It is always better to opt for a bank loan from a bank which has transparent processing to avoid favoritism and partial treatment of customers.

• Repayment options:
From the point of view of the borrower a bank which provides simple and customer friendly repayment options is a bank which provides the best loans. It is seen that certain banks are more flexible with their repayment options, which means that the time provided for monthly payments is longer or the amount to be paid each month is slightly flexible. Here, the late payment penalty is also a factor. A bank which charges less penalty for late submission of the monthly EMI is better than a bank which penalizes the customer heftily.

• Interest rate:
A bank which charges a lower interest rate is better than a bank that charges more, assuming other factors like the principal amount, time period and collateral provided is the same. Often when borrowers consider different banks before seeking a loan they discover that certain banks are better in terms of loan provision because they charge a lower interest rate. Though, the difference may not be much it may matter a lot to the customer when the total amount of interest to be paid is considered.

Before opting for a bank loan, one must definitely consider the above factors to assure that they choose effectively.