Loan calculator and bikes: Get the best loan rates

In India, a two wheeler has become quite a necessity especially in the cities, because people have to travel very long distances for work, business etc. While a lucky few can afford a two-wheeler say an Activa or a Royal Enfield, there are many individuals who have to diligently save for a very long time in order to purchase a two wheeler.

But with the introduction of two wheeler loans or bike loans, owning one has now become extremely easy. An individual in urgent need of a two wheeler can apply for a bike loan and become the proud owner of the two wheeler of his choice.

Now when it comes to availing a loan, be it for bike, plot of land or even a home, one has to ensure that they get the best loan rate along with minimum overhead charges. In this case it is important that one acquires ample information on the various types of bike loans that are being offered by different banks and non-financial institutions.

The best way to get hold of information about two wheeler loans is through family and friends who have already opted for a similar loan, or the internet. One can check out various online review portals, where a number of individuals offer comments on loan interest rates, tenure and EMI. One can also find out information on the EMI, interest rate etc. being offered by different banks in order to make a fair comparison.

When comparing the loans terms and conditions of different banks one can take the help of the bike loan calculator. A bike loan calculator will not only make calculation easy and accurate, but also allow you to make an effective comparison of the different interest rates that banks are offering. All one has to do is fill in the necessary information and hit ‘calculate’. This, way one can choose the lowest interest rate or the interest rate that suits them the best.

When considering interest rate, also note the overhead charges and fees the banks demand. Many a times banks offers a low rate of interest but their overhead charges and fees are quite high, which amounts to the same as those banks offering a much higher interest rate.

The bike loan calculator will allow you to effectively calculate the EMI and interest rate that will suit you best. Such calculators are easily available online on the websites of various banks.

Apply for a two wheeler loan today with the help of a bike loan calculator and get the best interest rates available in the market.

Steps to open a share trading account

An Indian citizen needs a Demat and trading account if they want to start trading in the share market or stock market. Two depositories, known as NSDL and CDSL provide Demat and trading accounts in our country and this is done through brokerage firms which are also known as share brokers or stock brokers. The trading account is the account where a person can place bids to buy or sell orders while the demat account holds the shares in dematerialized form. Opening a trading account is relatively easy if you follow these easy steps:

• The first step of opening a trading account requires you to find a stock broker or firm. There are two types of brokers- full service and discount. In India, people generally go for full service brokers. The services rendered by such a broker in addition to buying and selling of shares are market research and also providing advice for retirement and tax-planning. Discount brokers are new to our country. They provide a no-frill account and also charge a much lower fee when compared to full-service brokers.

• You should always compare brokerage fees before opening a trading account. This is because all brokers charge some fees or take some commission processing your investments. The charges also vary from one broker to another. Some brokers also charge fees on the basis of the amount of the investments that they handle. Some others also give discounts if the amount is high. Thus, you need to keep in mind all these factors before choosing a stock broker.

• Finally, you need to complete your KYC or Know Your Client form. This form needs to be filled up and submitted along with your documents like Voter ID card, PAN card, birth certificate, passport and others. You will receive your trade account details after the application has been checked and verified.

After opening an online trading account, a person can start trading i.e. he/she can start buying and selling shares or stocks. It can be done over the phone or via the internet.

A demat account is required for a person to trade as it holds all his/her shares in electronic or dematerialized form. A person will not be able to trade in the stock market if he/she does not have a demat account. A demat account offers benefits like reducing the risks of deliveries, reduces costs associated with stamp duty, makes it much easier to hold and there is no fear of damage which can occur in case of paper certificates and  also acts a common bank where you can keep your debt instruments in addition to shares.

Why you need to know about UPI payments?

UPI or Unified Payments Interface is all set to revolutionize the economic sector of India and you must know the nitty-gritty of this game changer. Campaigns like Demonetization and Digital India have given the objective of a cashless India a huge boost. Now, the development of UPI technology is set to give the digitization of a growing economy like India an even bigger impetus.

UPI is a technology that has been developed by the NCPI or National Payments Corporation of India adhering to the rules and regulations set by the Reserve Bank of India. The UPI technology allows you to transfer funds from one bank account to another in a cashless way through a mobile app. Now you may think that one can do the same through internet banking or mobile wallets like Paytm. That's not quite right. If you want to use online banking (i.e NEFT, RTGS or IMPS) to transfer money to an account, you must know the recipient's account number and the said bank's IFSC number. In a mobile wallet like Paytm, you can just enter the beneficiary's mobile number and instantly transfer money but only to the person's Paytm wallet and not to his bank account. UPI has struck a balance between these two transaction methods. With UPI, you can make instant transfer of funds from one bank account to another by simply entering the recipient's registered mobile number or VPA (Virtual Payment Address) and without the involvement of any third-party payment wallet. No wonder UPI has been dubbed the 'Whatsapp moment' in the banking sector of India with its instant money transfers.

Unlike RTGS or NEFT, you can avail the UPI technology 24×7 and also on public holidays. So, in case of any emergency, you transfer funds as and when needed. Unlike online wallets, UPI lets you keep your money in the bank thereby accruing interest on the sum. UPI payment is also supposedly more secure than third-party mobile wallets.

There are many UPI apps available in the market right now. The first and foremost, of course, is the BHIM UPI app developed by the NPCI itself. It is most probably the simplest UPI app available and perhaps the fastest. PhonePe is a UPI app that also doubles up as a mobile wallet. This app too is very popular and provides a great user experience. Many banks like the Axis Bank, SBI, Canara Bank and PNB have also come up with their own UPI apps. Now, it is not necessary for you to use the app of the bank in which you are an account-holder. UPI apps are independent of banks, and so you can go ahead and choose the app that will suit your requirements the most.

What are the factors that can affect the fixed deposit rates?

Money is precious to all of us. We work hard to earn money and most of us wish to save it for the future. It is due to this very reason that we invest our money in a long term fashion in fixed deposit programs. It provides high interest funds on your regular savings account till the time of maturity. The interest rates differ from bank to bank.

We understand that you wish to have the best deal of interest for your hard earned money. It is due to this reason that we understand it is imperative to understand and figure out the factors that can affect your fixed deposit rates.

We have put down 4 different reasons which may influence the fixed deposit rates of your bank account:

1) The RBI policies:


The RBI is the regulating body of all the banks in India and has the power of imposing many norms and restrictions to a maintain credit control and inflow of cash in the nation. It is due to this reason that your fixed deposit rates can be altered even though you do not expect it to.

2) Recession:

Recession is a temporary period of time in a nation’s economy when industry and trade activities diminish. It mostly happens when the GDB crashes or falls rapidly for two consecutive quarters. Due to the shutdown of the economy at the times of recession, the RBI imposes reduced rates on bank interests to release capital into the market system. This can therefore tamper with your interest rates on a fixed deposit.

3) Inflation:

Inflation is completely different from recession, where the government starts printing more money and the prices of goods increases rapidly. Due to this, often the value of the currency decreases in the world market. In situations like this, one can expect their interest rates in the fixed deposit banks to go higher.

To calculate what is going on in your fixed deposit account, several banks provide instruments like fd calculators. It considers inputs such as the deposit amount, rate of interest, and deposit tenure to find out the amount you will receive during the time of your fixed deposit maturity.

Along with that, the fixed deposit calculator gives you the chance to compare the deals given by each bank so that you can deduce which plan is the best for your money.

How to choose the best option from the NRI accounts?

A Non-Resident Indian or NRI often faces a situation where they need to maintain an account in India in Indian currency. There may be two reasons to open such an account. The NRI may want to repatriate the money earned in the foreign country back to India. Or the NRI may want to keep money earned in India in the country. NRIs can open a Non Resident Rupee (NRE) account, or a Non Resident Ordinary Rupee (NRO) account to do this. NRO accounts can also be opened by an Overseas Citizens of India (OCI), or Persons of Indian Origin (PIO).

NRE and NRO accounts’ similarities:

Both NRE and NRO accounts may be opened in Savings or Current accounts form, and are both Indian currency accounts. The average monthly minimum balance of Rs 75,000 needs to be maintained in both these accounts.

NRE and NRO accounts’ differences:

1. NRE accounts are repatriable freely, both the principal and the interest earned on it. However, the NRO account has a ‘restricted repatriability’. Remittance is permitted from NRO account up to net USD 1 million of taxes applicable in a financial year. This too is possible only after the account holder gives an undertaking, along with a certificate by a registered chartered accountant.

2. NRE accounts are free of tax in India. No income tax, gift tax, or wealth tax is applicable. The interest earned from NRO account and credit balance, on the other hand, is subjected to appropriate income tax brackets. Wealth and gift taxes are also applicable as a present.

3. If the income of the NRI originates in India, for example, salaries, dividends, rents, etc., they are allowed to deposit this in the NRO account only. Such deposits cannot be made in the NRE account.

4. NRE accounts may be held jointly with other NRIs, but not with another resident Indians. NRO accounts, on the other hand, can be held jointly with both NRI as well as another resident Indians.

With the above comparisons in mind, you can now choose the best option for NRI account for you. In short,

Choose NRE accounts if you:
• Need to keep your overseas income converted to Indian Rupees remitted to India.
• Need to maintain savings in Rupees, but in liquid form rather than as assets.
• Need to open a joint account with other NRI.
• Need your savings in Rupees to be freely repatriable.

Choose NRO account if you:
• Need to keep India based income in India in Indian currency.
• Need an account where income from India may be deposited.
• Need to open an account with a close relative who is a resident Indian.

What are the features of the NRO account and what are its advantages?

An NRI account or Non-Residential Indian account is such an account that is maintained by an NRI with a financial institution that is authorized by the Reserve Bank of India to render such services. There are two different types of bank accounts in India by which NRIs can manage their income earned in India. The two accounts are the Non-Resident External (NRE) account and Non-Resident Ordinary (NRO) account. A person can open both these accounts in the form of savings, current, recurring or fixed deposit accounts based on his/her requirements. An NRO account is basically a savings or current account to manage income that he/she earns from dividends, rent or pension from abroad. Any NRI can open a NRO account. The NRO account is generally used for domestic or local sources of income.

The benefits of NRO account are:

• It provides higher returns after tax deductions. This can be done by availing the DTAA benefit facility.

• An NRI can maintain this account by keeping a monthly balance as low as Rs 10000.

• A NRO account allows for hassle-free transfer of money through a number of online and offline modes.

• An NRI can earn from favorable interest rates. This account provides 4% p.a. interest rate if your end of day balance is equal to or greater than Rs 50 lakhs. The interest rate for end-of-day balance less than Rs 50 lakhs is 3.50% per annum.

• The interest that you earn in the current financial year is fully repatriable after deduction of taxes. For a bona fide purpose, funds in an NRO account can be repatriated up to 1 million dollars in US currency.
Unlike a NRE account, a NRO account is taxable at the applicable rate. This account also does not allow you to send money to a foreign country. The various features of a NRO account are as follows:

• NRO accounts are taxable and so various taxes like income tax, wealth tax and gift tax are applicable. However, the Double Taxation Avoidance Agreement provides some relief from taxation.

• A NRO account allows you to deposit funds from a foreign country and also those funds that originate in India. You can only withdraw in Indian National Rupees from this account.

•  Unlike a NRE account, a NRO account can be held with another NRI as well as a resident Indian. Generally, the resident Indian is a close relative of the person and this benefit is defined under Section 6 of the Companies Act 1956. Furthermore, a person can transfer funds from an NRO account to another NRO account. But a person who holds a NRO account cannot transfer money to another NRE account.

• NRO accounts are not subject to exchange losses like day-to-day fluctuations in the value of INR and conversion loss. Thus, your money is absolutely safe in a NRO account.

Is the NRE accounts the best choice for an NRI?

Non-Resident Indians or NRIs often face a situation where they need to maintain a rupee account in India while they themselves stay and work in a foreign country. Primarily, there are two reasons for this, either to repatriate money earned overseas back to India or to keep income based in India within the country. In such situation, two choices are available to them, the Non-Resident Rupee (NRE) account, or the Non-Resident Ordinary Rupee (NRO) account. Both these accounts can be current or savings accounts and are in Indian Rupees. The minimum average monthly balance needs to be Rs.75, 000 in both. While both these accounts have their own advantages, the NRE account provides some more benefits over the NRO account to NRIs. Here are some reasons why the NRE account is actually the best choice for an NRI.

Repatriability: Repatriability is the ability of assets of a citizen or investor of one country generated in a country to be moved to the home country. The NRE accounts are repatriable freely. This means that both the principal and the interest earned on such accounts are completely repatriable to a foreign account without any limit. In comparison, the NRO accounts have ‘restricted repatriability’, repatribility is allowed only up to a fixed limit.

Taxability: NRE accounts are tax-free in India. This means NRE accounts are completely exempt from income tax, wealth tax, as well as gift tax in the country. This makes for a good way to save money for emergencies as well as for future plans free of tax. Money deposited in the NRO account is taxable at a rate of 30% according to the Income Tax Act of 1961.

Apart from the above two principal benefits, NRE accounts can be opened jointly by two non-resident Indians, while NRO accounts can be opened jointly with a resident Indian as well as another NRI. NRE accounts provide a way for savings to be stored in the country in a liquid form. Funds generated in foreign countries can be deposited in both these accounts. However, funds generated in India in Indian currency can only be deposited in the NRO accounts.

Withdrawals from both NRE and NRO accounts are in the Indian currency. NRE accounts are subject to fluctuations in the international currency rate.