All you need to know about consumer durable loan

After all these years, your lifestyle could do with an upgrade and a consumer durable loan is the best way to get it done. With IPL season round the corner, you might want to cheer for your favourite team while watching it on a large screen LED TV. Or you might want to relieve yourself from the chore of washing clothes manually by purchasing a new washing machine. But not always do you have the extra cash required for such indulgences.

A consumer durable loan helps in financing purchases of household necessities, when you don’t have money to pay for it, at least for the short term.

The loan usually covers a range of products from luxury gadgets like smartphones to household products like a washing machine. A few products covered by the loan include:

• Cooking range
• Air conditioner
• Refrigerator
• Washing Machine
• Laptop, desktop, tablet
• TV
• Smartphone

Types of consumer durable loan

Consumer durable loans can be divided into 3 parts:

Digital Finance - This loan is used to finance laptops, smartphones and gaming consoles. The tenure such loan is set between 8-24 months. A digital finance can also be used in case of purchases through EMI.

Lifestyle Finance –Lifestyle finance covers the purchase of luxury products like utility appliances, fitness equipment and other products like furniture. The loan tenure is 8 – 24 months.

Durable Finance – This comprises of durable needs like LED TVs, washing machine, refrigerators, microwave oven etc.

Part and parcel of the deal

While purchasing a consumer deal loan, there are a few attributes that come along with it. Being aware of these can help you make your decision of purchasing the loan with ease.

Processing fee and down payment - Down payment is the money paid right after the approval of the loan application. Since financial institutions cater to about 80%-90% of the actual price, the down payment usually sums up to 5%-20% of the product price. Thus, before hopping onto a durable loan deal, be assured of the loan amount provided by the lender.

Documentation - Consumer durable loan is easy and fast to apply. They are in most cases instantly approved and require just the basic documentation:

1. Income proof
2. Address proof
3. Identity proof

The rate of Interest - The presence of the rate of interest in case of these loans is optional. There are stores that offer interest-free loans, which mean they are making use of their marketing budget to pay your interests. Today’s market offers you several interest-free schemes. Understanding the scheme of interest gives you clarity about the loan.

These loans are undoubtedly the best ways to get your necessary household requirements funded. Make sure that you explore all the options that you have and settle for the best.

What is the Difference between NEFT and RTGS transfer?

Perhaps one of the most widely used banking services is that of online transferring of money. It is one those services that people have to use, though not always frequently but from time to time.

The reasons for making use of this service is many and varied, some people use it for business purposes while others use it for personal reasons such as sending money to children who are studying abroad or grownups who are living and working in a different city or country. Mostly the kinds of money transfer services available at your disposal are; IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer).

What is the difference between NEFT and RTGS transfer you ask?

It is as follows:

NEFT

• NEFT is available for use on all days excluding Sundays and bank holidays.

• NEFT money transfer works in batches. It works in settlement basis which means that the money can get transferred in 12 settlements between the bank timings of 8am and 7pm. Similarly, on Saturdays the transfer takes place in settlements of six between the time 8am and 1 pm.

• The value for a NEFT money transfer can be as nominal as one rupee.

• The processing fee for a NEFT money transfer is very nominal. If both the banks, i.e., the sender bank and the bank that receives the money are NEFT enabled then fee can be pretty standard.

• A NEFT money transfer has no maximum transfer limit. This feature makes NEFT very cost-effective and allows for larger usage by the public.

Well, that goes for the NEFT transfer, now we come to RTGS transfer system.

RTGS

• The RTGS system has a minimum transfer limit of two rupees.

• It also has a maximum transfer limit of ten lakhs.
• Both the banks need to be RTGS enabled in order to get this money transfer service in motion.

• The service is very fast-paced as the recipient can get the money in his or her account in a matter of 30 minutes of making the rtgs payment.

• The rtgs transfer service can be availed  between 9 am and 4:30 pm on a weekday and between 9 am a 2 pm on a Saturday.

These are some of the basic differences between a NEFT money transfer and a RTGS payment method. RTGS is, most of the times , favoured for its wider availability of scope and speed whereas others prefer NEFT for its cost-effectiveness and no-limitation freedom.

What are the available banking cards and their features?

With a humongous advance in modern methods, banking cards have proved to be an efficient means of the transaction for individuals. They don’t just spare you the hassle of running around for cash but also aids you at times of immediate purchases.

Bank cards are specifically classified on basis of their usage, issuance and the payments made by the cardholders. The cards are of three types:

• Credit Cards
• Debit  Cards
• Prepaid Card

Credit cards

You walk into a gadget store and lay eyes on a fascinating high-end smartphone. But to your agony, you are not carrying the amount of cash required to purchase it. Well, all you need to do is get your credit card swiped. A list of few basic features of a credit card will include:

1. Through credit cards, also known as plastic money, a person can withdraw amount beyond what they have in their account. However, there is a certain credit limit up to which the extra money can be withdrawn.

2. The cards can be used for transferring money to the debit card, bank accounts and prepaid cards within the country. They can also be used to make transactions through the ATM.

3. The amount of money withdrawn via a credit card must be paid back along with the necessary interest charges applied by the card issuer within a limited time span.

4. E-commerce/Point of Sale (POS) purchases can be made with credit cards through Interactive Voice Response (IVR) or Mail Order Telephone Order (MOTO). They can be used both internationally as well as domestically.

Debit Cards

Debit cards are a good alternative to paying cash or while shopping from your favourite online store.

Prominent features of a debit card include:

1. Debit cards are specifically linked to the customer’s bank account and are issued by the respective banks. Therefore, you can only withdraw money based on how much you have in your bank account.

2. You need to have sufficient balance in your account to make transactions using a debit card. They can be used for withdrawing cash, purchase of services and goods at E-commerce/Point of Sale (POS) both internationally and domestically.

3. Debit cards are useful for domestic fund transfers among individuals.

Prepaid Card

A prepaid card is the best plastic alternative to carrying around cash. Also called ‘everyday cards’ you can pre-load them with money and use as required. Once the amount gets exhausted you can opt for a top up. The basic features of a prepaid card are:

1. For getting a pre-paid card issued, one needs to pay the money in advance. Thus, these cards cannot be linked to your bank accounts.

2. Prepaid bank cards are issued by both banking and non-banking entities.

3. Prepaid cards issued by banks are called Open System Prepaid Cards and can be used to make withdrawals from ATM, purchase services and goods at E-commerce/POS and for domestic fund transfer.
Different types of cards have made life easy with their on-spot transactional features. Relieve yourself from the hassle of cash payments and get your bank card issued today!

Why Banking Services Are on the Rise?

Meeting financial responsibilities are a very important aspect of life. Whether it be saving money for long-term requirements or  transferring money from one account to the other either for professional or private purposes, bank services are extremely necessary, especially in this age of globalisation.
Many of you reading this article may be wondering what are the various banking services that people are opting and why are they slowly on the rise.

Here is a list of pointers telling you why:

• The digital revolution has brought about a sea of change in the world. Shopping is a necessary part of everyone’s lives. Whether it's grocery shopping or clothing, everything can be done at the click or tap of a button. Almost all of these online shopping websites give you the option of paying online with credit or debit cards or also pay cash on delivery; most of the times people pay online in order to avoid the hassle of keeping loose cash with them in order to pay after the items have been delivered.

• The ease of accessibility is stupendous these days. Accessing the internet has become easier and easier as now smaller devices such as smartphones and tablets come equipped with various applications that enable you to conduct banking services on the go. The ‘omni digital’ group of people are now turning to their devices more and more for numerous banking services instead of physically going to the banks. 

• Transferring money is more easy. Studying abroad is now no longer a far-off dream for many people. With the countless number of scholarships, grants and loans so easily available, more and more people go abroad to study. This makes it necessary for guardians to send money to their children from time to time. With various types of money transfer services- IMPS, RTGS and NEFT, transferring money are easy and fast.

• Similarly, when people go outside of their city or country, they often end up sending money to their family back at home from time to time. Easy transfer services are a huge relief especially if the need is a dire one.

As already mentioned above, in the wake of the digital revolution, there has been a massive paradigm shift in the world of bank services. There is a little requirement of physical presence nowadays as everything is shifting to the virtual sphere.

Banking has become not only easy but also fun with zero requirement of standing or waiting in long queues at the expense of time because digitalization in terms of banking services is rising at a breakneck speed.

What are the benefits of mobile bill pay?

Almost every individual on the planet owns a smartphone. With the rise in popularity of these devices, several companies have also devised methods of conducting monetary transactions through them. Now, paying bills from your phone has also become quite simple. Apps such as Paytm, MobiKwik and others have further increased the popularity of this mode of payment.

Here is a look at some of the benefits of paying bills through your mobile phone.

1. Saves time
Under normal circumstances, you are required to visit the service centre for which you are paying the bill. For instance, if you want to pay the electricity bill, you would have to visit the electric office to clear out the dues. However, with the emergence of mobile bill pay, you can choose to pay off the bill from within the confines of your home or your workplace.

It also saves you the effort of having to travel to the electricity office just so that the bill amount is cleared. In some cases, the office may be located at quite some distance from your home, which would make travelling there a hassle.

2. Saves paper
In the normal method of bill clearance, you would have to inspect the bill papers and then make out the payments in cash. It also involves keeping track of all the prior bills as well, which amounts to a lot of paper. Using the mobile bill pay option however does not involve any hard copies of the documents. Instead, you can check the bill online and clear it out online. The transaction is saved for future reference and you can check it out from your phone itself.

3. Secure payment option
You may feel that online transaction involves a lot of risk. However, in reality, paying the bill through your phone involves much lesser risk when compared to the dangers of carrying the cash amount to the bill clearance office. Online transactions these days are protected by SSL encryptions, which cannot be decrypted by anybody else, apart from the beneficiaries.

4. Much more organized
In mobile bill payments, bill clearance is much simpler. An email quotes the bill amount that needs to be paid. After the amount is cleared, the customer receives a confirmation by mail. The payment is almost instantaneous and can be made at any time. This means that you are free to make the bill payments on the last day as well, without having to worry about defaulting.

Mobile payment apps and methods are slowly replacing the cash payment system that was followed previously. Try out the different online bill payment options and you will surely notice the difference.

How to pay toll through the comfort of your phone

If you own a car and travel a lot through highways and expressways, you must have come across the toll booths. Here, you have to pay the toll fee, which is a type of tax you pay to the government of India.
For convenience, several newer procedures have come into effect through which you can pay toll online. Here is a look at some of the methods through which you can pay the toll through your phone.

FASTag

Several apps allow users to transfer money into a virtual wallet. While passing through a toll booth, the user needs to scan the QR tag from their smartphones. This will directly transfer the required amount of money from the virtual wallet to that of the toll company. Many banks offer this facility, so you should ask for the same. This method of payment is often known as FASTag payment.

ToneTag

Paying toll usually takes a lot of time. However, through a ToneTag app making toll payments has become easier. Through this app, you simply have to unlock your mobile phone to make the payment. Users need to sync the ToneTag account with that of their virtual wallets, payment bank and UPI apps.

Benefits of paying toll through phone

• Paying toll usually requires you to carry cash. However, with the emergence of online payment options, you can pay toll even if you are not carrying cash physically.

• Since, this cashless process is much faster, cars can move on without having to stop near the toll booth. This helps reduce fuel consumption.

• Recharging the FASTag is very easy, since users can transfer funds using debit card, credit card, RTGS, NEFT and net banking.

• Once you sign up to FASTag, you can avail the service for 5 years without needing to sign up again.

• Using this cashless method for toll payment, you can receive cashback and discounts up to 10%. This means that you have to pay less if you opt to pay highway toll online.

• Lastly, you can save a lot of your time if you pay toll online. This will cut down on travelling time and ensure you reach your destination sooner.

So, the next time you are on the expressway and you have to pay highway toll, be ready with your FASTag app.

PayZapp: Take advantage of instant and convenient online payments

HDFC Bank which is the best private sector lender launched additional payment platforms for is POS (Point-of-sale) terminals which can be used to perform transactions. One such popular payment app through which one can carry out transactions is the PayZapp application.

HDFC Bank has a staggering network of around 3 lakh merchants and 4 lakh POS machines all set to be converted to DigiPOS. Presently, HDFC accounts for 3/4th of the total transactions made through various POS terminals, which implies that every third monetary transaction is done by using an HDFC card or HDFC payment options. 14 crore transactions are done every month through HDFC Bank. PayZapp acts as customer acquisition strategy for the company and easy way of handling finances for the public. Moreover, HDFC is a very trusted bank, so this new app is a safe and efficient way of carrying out your finances.

PayZapp combines features of hundreds of e-commerce platforms as well as characteristics of a bank. It ensures the protection of a customer wallet and personal details and makes sure that HDFC retains its dominance over the retail segment. Customers who have an account in HDFC Bank no longer need to separately download apps from other companies like Expedia, Goibibo, MakeMyTrip, Cleartrip, BookMyShow, BigBasket and Flipkart. All these important apps will just be one click away if you download PayZapp. It also compares prices and shows you the best deals which suit your pocket and desires. It facilitates all the monetary transactions of thousands of merchants across the country. With loads of bright minds sitting in Silicon Valley and working hard to give us the best experience, physical banking is soon going to be obsolete. There is no need of standing in long queues outside the bank, your work can be done with just a click of a button.

Indian banking has reached its crossroads with apps like PayZapp shaking the behemoths of two hundred years of traditional banking. The best part about this app is that it is free and just a working internet plan on your phone is enough to help you with all your transactions. The PayZapp app will allow you to book airline tickets, movie tickets, do grocery shopping, book hotels, pay bills easily, recharge your phone and send money.  Within PayZapp, HDFC offers Smart Buy which is basically a virtual marketplace to suit all your needs. You can buy whatever you want at a discount; this will increase your savings at least 10% to 15% a month.  PayZapp is the future of internet banking as HDFC Bank ranks number one among all the private banks if we consider mobile payment apps.