Take advantage of these benefits of gold loan when you apply online

Gold loans have been quite popular in the country as a majority of Indian households owns this valuable metal that can be used as collateral. This is one of the many reasons why we consider gold to be such as an asset. Now, add to the gold loan the convenience provided by online banking and there you have a winner of a combination. Most of the major banks have come up with a plan in which you can apply for a gold loan online and thus enjoy the bst of both worlds.

Why should I take a Gold Loan?

The benefits of taking a gold loan are multifold:

 Transparency
The commercial houses which are entitled to give gold loans have a strict policy of Transparency. They don’t indulge in any hidden charges whatsoever. All the terms and conditions are straight forward and all the information is provided clearly.

 Low interest rates
The interests on gold loans are reasonable. The commercial houses uses gold loan EMI calculator. This calculator helps you find out how much EMI you would need to pay for the borrowed amount against the gold.

 Flexibility in repayment
Commercial houses have a policy of flexibility with the EMI schemes. A consumer can take an additional loan after a certain period of time simultaneously with the current loan amount and if they want to clear off their dues, there are no extra repayment charges.

 Doorstep services
The commercial houses aims at maximizing customer care facilities. With a sensitive asset like gold, the commercial banks/financial institutions offer doorstep services to ease out the trouble. 

Procedure:

 Meeting the eligibility criteria
The eligibility criterion of a gold loan is not stringent at all. If a person who is at least 21 years old with a valid identity proof can prove his/her claim of owning the gold, he/she will be eligible for a gold loan. 

 Reserve rates
Financial institutions have a flexible reserve rate against gold. This is the rate which deducts a certain amount from the value of the loan because of fluctuating market risks and incase if the consumer fails to pay the amount, the loss needs to be accounted for. 

 Quality inspection
Finally the loan is sanctioned when there is an approval by the authorities about the purity and weight of gold according to which the loan is sanctioned for.

Other advantages of gold loans:

 Security
Gold is an asset which can be stored for future use, it can be liquefied whenever the owner deems so. The rates are fluctuating and there’s a possibility that in the future the value of it might double. The gold that is mortgaged can be used over and over again for a long period of time.

 Low risk
Being emotionally attached to a gold ornament in a household, the borrowers end up either pre paying the amount or clear all EMIs on time which is an added advantage.

 Speedy sanction
Gold loans do not require days and months to get sanctioned. It’s only a few minutes job. No long procedures are required. The complete process of approval and sanction of the loan depends on the quality of the gold provided and its verification.

Car Loan: Why Applying A Car Loan Online Will Benefit You

Buying a car is one of those special occasions that call for a round of celebrations. It is a grand affair not only because it signifies a certain degree of stability in life but also because a lot of investment goes into it.

An investment that is just not just a one-time thing but something that is life-long. You can make the process of your car investment a little smoother by opting for a car loan. If you are only ‘thinking’ about taking the loan online, then let us tell you that there are many benefits of carrying out this process online. Some of these are;

• First and foremost, a car loan enables you to pay monthly instalments instead of making a one-time payment. Many banks will give you hundred percent financial help on the ex-showroom cost. Plus online loans give you the benefit of making a quick application. This means that you can buy your dream car right away.

• When you say online car loan application, the first thing that pops into your mind is ‘convenience’. The online process is simple and hassle-free; you don’t need to wait in long queues and go through hours and hours of paperwork. You can fill out the online car loan form while sitting comfortable on your couch or bed with a steaming cup of hot beverage beside you.

• When you apply for a car loan online, chances are that it will get approved faster, as most bank services that are online based are less nitpicky when it comes to the point about credit scores.

• When it comes to car loan interest rate, it is much simpler when the application process is carried out online. An online car loan interest rate will be lower and will also give you the chance of negotiation. And since online loan services tend to bother less about credit scores, the possibility of a low credit score affecting the interest rate will also be less.

• Online loan applications mean that there will be 24*7 hours service. So, in case you make an impulsive decision to get a car by the end of the week with the help of a car loan, you should ensure this happening online, as it will save time, save you hassles and will also end up getting the car you ‘actually’ want instead of settling for a compromise.
The points stated above are only a few of the benefits that have been mentioned that will act as your starter pack for applying for that car loan. The thought of a tricky car finance process shouldn’t deter you from buying something so important in your life.

Why investing in NRI accounts will benefit you

Non-residential Indians can invest in India just as easily as the residents do. Not only is the investment easy to manage, but it also offers a range of benefits. If you are an NRI, you should be aware of the benefits that non-residents get when it comes to investing in India. Here are some advantages-

1. No taxes levied on interest

If you are an NRI signed on to either a NRO or NRE account, you should start investing in mutual funds. Currently, most banks offer around 9% interest on these investments. While the rate of interest is attractive enough, the real bonus is that the Government of India does not levy any taxes on the interest earned from these investments. This means that you can keep the entire amount to yourself.

2.  Profit in the currency of your choice
 
If you have a repatriable NRE account or a non-repatriable NRO account, you can convert the income from your investment into the currency of your choice. For instance, if you are residing in the US and are investing in mutual funds in India, you can directly earn the profit in US Dollars, which makes the entire process much simpler and streamlined.
However, keep in mind that for mutual fund investments, the principal sum needs to be in Rupees and not in any other currency.

3. Equity investments

The Reserve Bank of India has noted that all NRI accounts can invest their money in Indian equities. However, to do the same, they need to operate either an NRO or an NRE account. You would also need to open a DEMAT account, along with a trading account from a SEBI registered brokerage.
While there are certain limitations for NRI equity investors, these investments still, provide a great method to earn quite a bit of profit.

4. Power of Attorney

After the initial investment capital is paid, you as an NRI account holder can grant Power of Attorney privileges to family members or relatives residing in India. The bank will contact this PoA holder in case of any requests or enquiries. This practice can severely reduce your stress of managing the investment from abroad. Your PoA contact can also make beneficial decisions in your stead in such cases.

Apart from these benefits, individual banks may sometimes offer special discounts or interest rates for NRI investors, which make the entire prospect more attractive. Make sure you compare the rates offered by the different banks and choose the one, which seems the best suited to your needs.

How can you benefit from the foreign currency account?

Foreign currency account is a type of account that allows the account holder to keep foreign currencies as well as currency from the home country. This account can be maintained in an off-shore country as well as in the home country. The foreign currency account can be pretty much maintained in the same way as any regular account. There are many benefits of a foreign currency account. These are:

• The foreign currency account does not levy any charges on the non-maintenance of the quarterly balance that needs to be managed on a minimum basis.
• The foreign exchange that is earned as a result of exporting goods, honorarium and royalty can be deposited in a foreign currency account.
• When someone who is not an Indian is visiting India and decides to gift someone in monetary value, the foreign currency can be of use at this time.
• One can make money transfers from their NRE account.
• The foreign currency account can be beneficial when presenting someone with gifts at the time he or she is making a visit to any country outside  India.
• The foreign currency account can be useful to carry out short-term requirements of cash-flow.

The permission to open, hold and maintain a foreign currency account was a very important step on the part of the Reserve bank of India. It allowed for liberalisation of facilities pertaining to foreign exchange matters.

The Foreign Currency Account puts up the following eligibility criteria:

• All those who are residents of India are eligible to open a foreign currency account.
• The money that the account holder wishes to keep in the account can be a form of the pension money or any other kind of monetary value received from the employer outside of India.
• When something is received as a gift or is inherited from someone who is outside of India.
• When money is obtained after converting assets from outside of India.
• If the proceeds of the concerned assets where in foreign currency value.

Foreign Currency accounts are especially useful for those people who are in business trade. It allows them to save money in different forms of currency. This makes conducting business with clients from different nationalities and backgrounds so much simpler and convenient. Perhaps one of the biggest perks of a foreign currency account is that it helps you to avoid the fees levied as a part of the conversion process. This saves money and cuts down on hassle.

What is the difference between telegraphic transfer and SWIFT?

You may have heard the terms SWIFT and telegraphic transfer from investment bankers and traders. However, you may not be aware of what these are and how the two differ. So, before listing out the differences between the two lets understand what SWIFT and telegraphic transfer mean.

What are SWIFT and Telegraphic Transfer?

Swift stands for Society for Worldwide Interbank Financial Telecommunication. This is a service offered to banks and other financial institutions all over the world. Through Swift these institutions can freely and securely send transaction information from one place to the other. It is essential to note that SWIFT is not a method of transferring the money itself, but the information regarding the funds.
Telegraphic Transfer or TT is a method through which interbank funds exchange takes place. Prior to the introduction of the telegraphic transfer, banks had to send a direct Telex message to the destination bank in case of fund transfers.

Differences between SWIFT and telegraphic transfer

• SWIFT is not a fund transfer system. It merely lets institutions send electronic information regarding transactions. Telegraphic transfer, however, facilitated the transfer of funds from one bank or institution to the other.

• SWIFT is an electronic process which does not require wireless connections between the two institutions. Therefore, it works similarly as mobile phones do. TT, on the other hand, required telegraphic wires and the use of Telex to function. Both the beneficiary bank and the sender institution needed to have the telex system handy.

• SWIFT is a handy tool at present, and most traders use it in case of transfers and transactions. This messaging service came into existence after the 1990s. Prior to 1990 however, banks relied on the Telex system, which involved telegraphic transfers. Therefore, telegraphic transfers have almost ceased these days, with more and more banks opting for simpler transfer methods.

• SWIFT is far more secure than the older telegraphic transfers. During the TT days, there was a higher risk to the institution's money than there is now after the introduction of the SWIFT procedure. This process does not transfer the funds, but instead sends the payment orders that must be settled.

SWIFT has quickly replaced the older Telex system and in just 25 years, most banks have stopped the telegraphic transfer of money. Simpler forms of transfer have taken its place, which are both more convenient and safer.

Redesignate your account to NRO account when leaving India

Are you thinking of relocating to a foreign country and becoming an NRI? Have you transformed your savings account to an NRO account? If you have not done it yet, you should.

What is an NRO account?

A Non-Residential Ordinary account or NRO is a savings account for people who are Indian nationals, currently categorised as a non-residential Indian. In such an account, you can keep money in the Indian and foreign denomination.  

Here are some reasons and features why you should switch out your accounts before leaving India.

1. NRIs are not allowed to keep normal savings account

You are designated as a non-residential Indian if you stay abroad for more than 182 days in a fiscal year. In such a case, you are not allowed to operate a savings account in India. So, it is best to change your savings account into an NRO savings account.

2. Making payments in India

If you are an NRI and operate and NRO account, you can easily make payments in India from your current place of residence. This feature is useful in case you have EMIs to pay back in India or other financial responsibilities to take care of. An NRO account will ensure that you can freely make these payments without having to transfer funds, which would act as an extra burden on you.

3. Essential in case of income source in India

You may have moved to a foreign country, but you may still have a source of income inside India. This can be a monthly rent or income from a business establishment. These funds can only be saved through an NRO account. This again saves a lot of hassle and lets you keep all of your earnings without needing to lose some of it in transfers.

While NRO accounts are quite advantageous if you have an income source in India, the same is not that beneficial for all. In fact, people who do not have any income or savings in their Indian accounts, they can transform their savings account into an NRE account. An NRE account only allows you to deposit foreign denomination.

There are several other financial matters, which you should handle prior to changing your status to NRI. These changes will make the transition process much simpler for you to handle.

After your status has been updated to NRI, remember that any savings in your NRO account will likely be taxed as per the standard. However, foreign currency kept in an NRE account cannot e taxed in India.

NRI Account: Which is the best?

“Which account should I open?” is the first question that crosses the mind of a NRI who wants to open an account in any of the Indian banks. There are specifically two kinds of accounts that NRIs can opt for in India – NRO (Non-Resident Ordinary) and NRE (Non-Resident External).

Both these accounts provide different features and facilities. The choice of opening either of these strictly depends on your need/purpose. All prominent banks across India offer the facility to open both these accounts as per your requirement.
A few prime differences between an NRE and NRO account are:

Mode of deposit – The initial difference between NRE and NRO account lies in the mode of deposit. You can only deposit foreign currency in an NRE account while only Indian rupees can be can be deposited in an NRO account.

The difference in taxation – An NRE account in India is tax-free. On the other hand, the credit balance, as well as the interest earned in a NRO account, falls both under the specific income tax bracket which is 30% as per the Income Tax Act 1961, as well as wealth and gift taxes as applicable.

Joint account holding – NRE accounts can jointly be held with another NRI, but you cannot hold one with a non-resident Indian. An NRO account can be held both with an Indian resident as well as an NRI as Section 6 of the Companies Act 1956 states.
Deposition of rupee fund generated in India – Earnings of an Indian like rent, salary, dividends etc. is strictly allowed to be deposited only in an NRO account. An NRE account does not permit the deposition of such income.

An NRE account is a rupee-denominated. You can only make a deposit in the can only be made through inward transfer of funds. Deposits are compulsorily made through foreign currencies, which get converted into Indian rupee during the deposition process. The rate of interest to be paid is determined by the bank itself.

In case of an NRO account, NRIs are free to convert their existing savings account into an NRO one, with just their status being changed from a resident to a non-resident.

If the bulk of your net income is accumulated in India and you wish to take care of it in the country itself, you can always choose to apply for an NRO account. Nonetheless, an NRE account is the best option when it comes to transferring foreign income to India and evading any kind of tax liabilities for the same.