Why the payment app is the need of the hour today?

The government of India introduced demonetization in November 2016. This move put 80 percent of the usable currency in the country into disuse. The government has been encouraging the use of online interfaces to conduct our financial transactions ever since. Although new notes have come into circulation and have replaced the older ones, the importance of payment apps has grown considerably. You can add your debit or credit card into an app and pay for goods or services as easily as you use your physical card. Payment through mobile refers to the payment services that take place under financial regulation and are performed from or via a mobile app.

The benefits of using mobile payment apps are as follows:

• Your information is secure – Do not worry about your personal information getting leaked or your bank account getting compromised as these apps have built-in security features. Your real card number is never stored in your phone or with the retailer. When you make a purchase, the system hides your number by assigning a random number or token for each purchase.

• It is convenient – Would it not be nice if you could just leave your wallet at home? Payment apps enable you to do just that. You do not have to cash when you go out for shopping. It would suffice to just carry your phone. These apps also provide an easier way to use your debit or credit cards.

• Good for small businesses – Small businesses previously did not accept payment through credit cards for want of infrastructure and as they were cash-only facilities. Now these mobile apps have made it possible for these businesses to accept payments from people who are short of cash. This has increased their business volume and also contributed to an enhanced customer base. The digitization of transactions also helps small businesses to understand the customers’ preferences.

• Cost and engagement – A mobile card reader or a barcode scanner is less expensive than a credit card terminal and therefore can be employed easily. The time required to complete a transaction is also reduced if shops use mobile payment apps. This allows a retailer or a shopkeeper to service more customers than he could have within a stipulated amount of time.

• Paying through these mobile apps would also cost you less as they charge you less than most credit card companies.

Thus, payment apps are the way forward now. In this era of globalization and digitization, it is surely beneficial to adopt new technologies and techniques that will make our lives easier. From paying taxi fare to shopping for groceries to paying the bill at a nightclub, everything has become much easier if someone uses these apps. No need to argue for the change that the auto-rickshaw driver owes you. Simply use the mobile app to pay the exact amount.

How to use your credit card offers smartly?

A credit card is a card that is issued by a financial company and which gives the holder the option to borrow funds, primarily at the point of purchase. They are usually used for short-term financing, and institutions which provide credit cards generally charge interest. A credit card can be used to make purchases, reduce the cost of expensive debts or to earn cash back and rewards. It is a type of loan that you avail from a bank or any other financial institution. Interest is added to the amount a person spends if he or she does not clear the balance at the end of the month. Furthermore, banks provide awesome credit card offers that more often than not lure users into spending more with their cards. This result in a person actually spending more than what they are actually capable of. A person should be careful enough not to fall into such a trap if he or she uses a credit card.

Some of the benefits of using credit cards are:

• Cash back: Banks provide credit card offers if you use your card to pay your bills or even if you make purchases of a certain amount of money. The most common of such offers is the cash back facility. You get a certain percentage of your spending debited to your online account which you can use later to buy something or avail any other service.

• Reward points: Banks also provide reward points for every purchase that you do with your credit card. The card company earns a fee from the merchant outlet every time you use your credit card. They share a part of these earnings with you in the form of reward points to encourage you to use the card more frequently. You can redeem these reward points at any partner merchant outlet or website. Generally, people use the reward points to buy air tickets or convert them into air miles.

• A credit card enables you to avail the EMI option when you are making any big ticket purchase like television, laptop or a car. It allows you to make the purchase even if you do not have the entire amount required to buy the thing at that time.

• Grace period – One of the primary advantages of using a credit card  is that banks offer a grace period of about 50-60 days before you need to start paying back. This helps you to plan your expenses accordingly.

• Credit cards are safer than debit cards.

There are credit card offers to meet the needs of everybody. From flier miles to discounts on purchase of automobiles to various perks when you shop, credit card companies are putting in all the efforts to keep their customers happy. The credit card offers often come with an expiry date. The most convenient way to redeem these offers is by making some purchase online as you do not have to contact the bank to help you out with this.

Best car loan: How to get the best loan rates

Car loan or auto loan is one of the easiest and best ways of owning a car. In India, car loan industry is on constant rise for the last decade or so and is expected to rise furthermore in the near future. It is also one of the most sought after loans in India. Due to extremely large number of borrowers in India and an equally large number of lenders, the car loan industry is nothing short of a fish market. In this cut throat competitive market you must be street smart before opting for a car loan so that you get yourself the best car loan.

The loan amount and the interest rate on auto loans depend on your monthly income, credit score, type of car and the down payment, which may vary from 9% to 13%. The tenure for car loans in India may vary from 2 to 10 years. So if you are thinking of buying a car in the near future, here are some of the points you should consider in order to get yourself the best car loan:

• Don’t go for any pre-approved loan offered by car dealers. You should shop for loans in different financial institutions to give yourself the best possible option.

• You should limit your loan shopping for a period of two weeks. Applying to loan brings down your credit score.  One of the rarest known fact but the loan enquiry made over a period of two weeks is considered as one. So your credit score is affected only once if you stick to this.

• You should also time your car loan to perfection. Try to visit banks at the start and closing of the month, as banks have monthly targets there is a high chance of you getting a better deal at the end of the month.

• Always consider a high down payment as it not only brings down the loan amount but also the interest rate and the total interest to be paid during the loan tenure.

• Choosing a car model can also affect your interest rate and the loan amount. The interest rate for less popular and outdated car model is higher as compared to those in the popular or premium category.

• You should know your credit score before applying for any loan as it not only makes you realize your financial status but also makes you aware of the interest rate that you are eligible for according to your credit score.

Shopping for loan and car separately is always an added advantage. All of this combined with a little hard work and a bit of patience is definitely going to help you in getting the best car loan.

How to make car buying easier with auto loans

The young working class of India rides on their own set of wheels as soon as they land up with a good job. Due to this reason, the auto loan India industry has grown by leaps and bound in the last decade and is still growing at a rapid rate. If you are thinking of buying a car, you need to be able to finance it in order to enjoy its comforts and at the same time relive yourself from the pressure of spending a large amount of money at one go. An auto loan is one of the most sought-after loans in India and hence it is also easily available.

Auto loans are loans given to individuals for purchasing automobiles against their monthly income. Auto loan India is a very huge market with lots of direct (banks) and indirect (auto loan financer) financial institutions ready to help you buy your first car. The interest rate varies from 10% to 13% depending on the person’s income, the choice of car and his/her credit score. Auto loans in India generally cover up to 85% of the total cost of buying a car.

Auto loans are definitely a savior when it comes to buying a car. Mentioned below are some of the reasons on how auto loans make it easier for you to buy a car:

• The first and the foremost reason is that you don’t have to pay a large amount of money in order to own a car. The auto loan can finance up to 85% of the total cost of the car.

• The tenure for loan amount generally varies from 2 to 10 years which makes it easier for you to pay the loan back in easy monthly installments over that period. The ideal EMI for a loan applicant is around 20% of their net salary.

• As compared to other loans, the interest rate of auto loans is quite low as it is secured against the car itself. So you don’t have to pay a large amount money on interest and can buy the car at the lowest price possible.

• If you are buying a car from a company which is also financing it, you can avail extra benefits such as free road tax for six months, free services etc.

• The entire procedure is a hassle free process as everything is done at one place, saving you the time and energy required for multiple visits.

All these points combined with the fact that coming up with a large amount of money to purchase a car at one go is not possible for everyone. This is where opting for an auto loan is a good idea. But it is also equally important to consider all the possibilities before opting for an auto loan.

Protecting your ATM card: All you need to know about bank card skimming

Bankcard skimming is the latest crime of the 21st century where you don’t have a clue that you are being robbed. It is called skimming because your debit card or credit card gets skimmed using a device similar to a card reader by attaching it to the ATM machines. This method is widely being used by fraudsters all over the country to steal money from your bank accounts.

The device generally consists of two important hardware; a camera to see your ATM pin and a magnetic card reading device to capture your details and clone your card. However, there is always a new method being developed to carry out skimming such as the use of any piece of material to jam the enter button of the ATM. So once you are done with making the transaction, it will not process as the enter button is jammed. Once you leave the ATM thinking it to be not working, the skimmer would remove that material and hit enter to process your transaction.

It is almost impossible to notice such minor tricks in your daily busy life. However you can always take precautions in order to avoid such incident. Here are some of the easiest ways to protect you from such crimes:

• Always check the card reader before inserting your ATM card. If it moves then something is not right as ATM machines have card reader attached to it which is fixed and doesn’t move.

• You always check the ATM machine before using it. If you find anything out of place or any additional piece of equipment then it’s a no go.

• Always protect your ATM pin by placing a hand over it while entering your ATM card password. This will block it from the view of the camera if it’s placed inside.

• Never lose the debit card out of your sight if you are using it at a restaurant or retail stores for making payments. It can easily be copied or used to make extra payment.

• You should always take a good look inside the ATM especially at the machine to check for any cameras or if you notice anything unusual such as the keypad, lower bottom of your screen.

• You should also take a good notice if a person inside the ATM is just standing idle and pretending to do a transaction.

• Last but not the least is that you should always monitor your bank account. Keeping a regular check on the transactions is always a smart thing to do

What are the requirements to secure a business loan?

What does a person do when he wants to start a business or expand his existing one? And what happens when the person cannot arrange for the money himself? The most plausible course of action would be to apply for a business loan from a financial institution. This loan is also availed by established businesses to fund for startup expenses or pay for expansions. Business loans are actually borrowed capital which a company is obligated to pay according to the loan’s terms and conditions. A potential lender will surely want to know how a business intends to spend the borrowed amount. So business owners should surely have a clear outline regarding his plans on how to utilize their loans.

The basic requirements to avail a business loan are as follows:

• Bank statements – Bank statements provide lenders with an insight into how well you manage the cash which comes into your business. Lenders get to calculate your average bank balance, and this helps them to understand that whether your business is sustainable and whether you can pay back the loan amount with interest. This is particularly true for small business lenders.

• Balance sheet – A balance sheet helps the lender to understand what you have and what you owe, and this helps them to understand how well you manage your assets and liabilities. Business lenders often scrutinize these documents carefully.

• If you have a new business and it is relatively small, it can prove to be a bit difficult to get a loan for the business. Lenders want to have a look at your personal tax returns. This helps them to understand how well you are managing your own finances and help them to decide whether you are eligible for a loan or not.

• You should build cordial relationships with the people at the lending institutions even before you actually apply for the loan. This is because people generally do business with people they know and trust.

• You should have a clear idea of how you are going to utilize the money. And you should also work out the exact amount of money that your business requires. Underestimating the amount of money that you need will lead to lack of working capital and thus prove to be detrimental for your business.

• You should thoroughly and carefully prepare a loan application package (which is the paperwork) that is to be submitted to apply for a loan.

• Lenders often take into account the time period for which you have been running your business. In case of a small businesses, longer the period that the business is running, better are your chances of getting a loan.

Thus it is evident that there are a number of essential prerequisites that you need to complete before you can apply for a loan. Having a sound financial record is of utmost importance. Planning in advance and having a clear idea in your mind can put you in good stead to get your business loan approved.

Travel financially smart on your travels abroad with the multi-currency card

A multi-currency Forex card is a prepaid card in which multiple currencies can be loaded. They are front-loaded cards that offer a traveller who is going overseas the convenience of using it as a normal debit or credit card. This card provides protection and security from currency fluctuations, cross currency transaction charges and also allow for minimum charges to be levied on using this card at overseas ATMs. This multi-currency card saves a person the trouble associated with finding currency exchanges, cashing traveller’s cheques or carrying a lot of cash when he or she is travelling abroad.

The benefits associated with the multi-currency card are as follows:

• If a traveller is travelling to multiple countries, he does not have separate cards for different currencies. Only one card would suffice.

• There is no need to search for any outlet to encash the amount loaded in the card or to convert currency.

• You can use the card at merchant outlets as well as for regular e-commerce transactions.

• It enables you to withdraw cash from any Visa or MasterCard outlet with minimal charges.

• Do not worry about paying your bills when you are dining outside or indulging in any form of entertainment as this card will take care of all that.

• Furthermore, this card is widely accepted by merchants and ATMs.

In addition to these features, this multi-currency card have other benefits like:

• You can have a pleasant shopping experience when you are abroad. This is because it enables you to pay in the currency with which you are most familiar and help you take informed decisions.

• There are no hidden charges. Whatever you spend is reflected in your card statement as it is.

•  These cards are actually less expensive than credit cards when you are travelling abroad. This is because in case of credit card, the rate of exchange rate applied is the day’s rate. While for this card, the rate of exchange is fixed the day you purchase this card.

• It will be difficult for somebody else to use this card even if it is lost or stolen because the card is protected by a Personal Identification Number.

Today, more and more people from India are travelling abroad every year. What they require inevitably is foreign currency before they embark on their trip. The multi-currency card has made foreign travel much easier and hassle-free. This card can be used even in remote areas of a country which you are visiting and where the Dollar or Euro is not so prevalent. This helps the local traders and allows you to have a holiday experience like no other. Some cards also offer good deals on air tickets and holiday packages and even provide you with travel insurance. This means it is a win-win situation for you.