What are the steps for the visa credit card payment?

Credit card is often a necessity for people who like to shop around but do not want to spend the hard-earned money in their bank accounts. With credit cards, you can freely shop and purchase products without having to use your debit card or making transactions in cash. Usually, visa credit cards are issued by most banks and the card holders essentially take a small loan from the banks to purchase items.

So, it is essential to settle the credit card bills at the end of the month which is similar to paying off a loan. Here is a look at some of the easy methods through which you can make visa credit card payments.

Credit Card statement

The first step in paying off your credit debt is to acquire the statement from your bank. This statement is usually sent through the mail to your house or office. However, you can choose to download the statement from the online portal of the bank in question. This statement will provide you with the necessary details of your credit card usage and will also let you know exactly how much you need to pay to settle your bills.

Online method of bill settlement

Since the internet is one of the most important modes for any payment now, credit card bills can also be settled online. For instance, internet banking can be used to clear off the debt. For settlement through internet banking,
• Log into the account and access the Credit card payment option on the portal.
• Enter the credit card number and the account which you want to be debited for the payment.
• Enter the amount that needs to be paid and click on the submit button. This is perhaps the simplest form of Visa credit card payment in which you do not even have to leave the confines of your home.

Similarly, NEFT and IMPS payments can be made online as well. Just access the bank’s site and choose IMPS/NEFT transactions. Following this, enter the name of the beneficiary, name of the bank, branch name, 16-digit credit card number and the IFSC code for your branch.

Offline bill payment methods

If you want to clear your credit card bill offline, you will need to write out a cheque or create a draft of the said amount and send it over to the bank. Some banks also allow you to clear the bill using any Visa ATMs in the country. Lastly, banks also allow for the cash payment of the credit card bills, but in such a case, you would need to visit a branch of the bank in question.

Are you aware of the Government Limits Charges on Electronic Fund Transfer?

In this day and age of virtual operations, you might be all too familiar with the convenience of transmitting funds over the internet. This process of electronic fund transfer, although remarkably efficient and simple, is often laden with unpleasant charges that you could not have anticipated. Thus, it becomes imperative to learn of all the charges that could be taken out of your account so you can be prepared to make the most informed financial decision.

The finance ministry, in a bid to encourage the use of electronic fund transfer, has now asked public sector banks to reduce the fees associated with Immediate Payment Service (IMPS) as well as Unified Payments Interface (UPI) so that it stands in accordance to the rates listed for National Electronic Funds Transfer of Rs. 1000. This includes Unstructured Supplementary Service Data transactions, for which the ministry has directed a discount of 50 paise per transaction. The National Institution for Transforming India has also introduced certain schemes, namely Lucky Grahak Yojana and Digi Dhan Vyapar Yojana that are set to cover small transactions between Rs.50 and Rs. 3000.

These decisions have been announced as a collective effort launched by the finance ministry to incentivize digital transactions between individuals as well as businesses. Not only do these methods include the transfer of funds through debit/credit cards between accounts, they also handle online bill payments, direct debit operations and direct deposit payments. These modes of electronic fund transfer have transformed finance dealings across the nation and now form an integral part of the national economic identity.

If you are able to master the technical aspects of electronic transfers, these online transactions could be done in the matter of a few minutes between concerned accounts. Additionally, most banks and money transfer firms contain your history of transactions so that you are able to organize and record your transfer information for future decisions. These electronic payment systems also charge a rather low commission charge on your transfer; some companies even offer flat fees so that you are persuaded to make large transactions through this method without the nagging worry of service fees. As the populace becomes more and more familiar with virtual transactions, it is natural for you to gradually adopt digitalized methods of fund transfer. It helps that most of the websites offering these options are top of the line and showcase interfaces ideal for the average user. Thus, the government announcing a reduction of charges on these transfers should allow for a larger intake of customers going forward.

Why should you opt for a credit card in your early employment days?

The early employment phase can be characterized by stressful decisions, unprecedented expenses and complex responsibilities. For many individuals, this ascent from being a naive, energetic student to being overworked, tired and often saddled with unexpected financial expenses can be quite challenging. Though being allowed to draw credit is not guaranteed to solve all your troubles, the best credit card would extend a range of options to your benefit and alleviate some of your immediate financial demands. Here are some of the many reasons why you should opt for a credit card, especially during the early employment period.

Convenience

Living in an economy that brings in unforeseen charges at every inopportune moment, you have to be prepared to part with any amount of money at any given time. Having cash in your pocket is oftentimes not sufficient or safe for conducting large transactions that accompany a new living or working space and thus the convenience of a credit card can assist you in those desperate times. Although it is borrowed money and you are required to pay it back by a fixed date, it can be a quick and easy solution for an emergency. 

Protective Features

Due to the many difficulties associated with navigating early employment, you may be quite vulnerable to dubious scams or expensive moneylending schemes. The best credit card programmes will protect you from unauthorized charges from your account and will not hold you liable for them. Additionally, your company might activate electronic security systems that alert you of suspicious activity involving your card, verify your identity through chip card technology as well as photo identification.

Incentives to Save

You might be inclined to believe that a credit card discourages you from accumulating savings but many companies provide credit scores and history that might actually facilitate loan applications and borrow money in the future. Some banks also offer certain reward points, discounts; cash back offers that might incentivize you to make smarter savings.

Organization

The early employment phase is marked by a breakdown of your organization skills, especially in terms of managing your finances. A credit card is not only a swift way to align all your payments and transactions but also to categorize them on the basis of time, type of transaction and amount. This could help you to plan and prepare how you wish to be spending your money on a monthly or yearly basis and thus facilitate some sort of a personal budget formation.

Features of the NRI Accounts you need to be aware of

NRIs or Non-Residential Indians are allowed to open and hold savings accounts in India. However, these accounts are not the same as the ones that are offered to residential Indians. There are three types of NRI accounts that one can take advantage of if he/she wants to maintain a bank account in the native country.

Here is a look at the three types of accounts and the features pertaining to the same.

1. FCNR Account

FCNR account stands for Foreign Currency Non Resident account. This particular kind of account is only useful for keeping fixed deposits for a certain period of time, ranging from one to three years. The features of such an account include-

• Depositing FD amounts for at least one year and up to a maximum of three years.
• The principal and interest earned can be transferred to an account overseas in the same currency or it can also be converted to any other currency as well.
• The interest on the FD is exempt from any income tax in India.

2. NRE Account

NRE or Non-Resident External Rupee account allows an NRI to open a simple savings account. However, the balance is maintained in the Indian currency only. Even if a deposit is made in another currency, it would first be converted to INR, before getting deposited. The features of the account include,

• Withdrawals can be made in the foreign currency, but is such a case, the account holder needs to first convert the INR into the currency of their choice. The cost for the same must be borne by the account holder.
• The deposits made in such an account as well as the interest earned is free from any income tax under the laws of the Indian government.
• The entire amount in the account can be sent out of India without requiring any clearance from the Reserve Bank of India.
• Account holders can also apply for loans against the deposits in the NRE account.

3. NRO Account

Any normal bank account held by a Non-Residential Indian is known as Ordinary Non-Resident Account or NRO account. The features of an NRO account include,

• Making deposits into the account from overseas.

• This account is non-repatriable. This means that account holders cannot transfer their savings from this account into a foreign account without the permission of the RBI.

• The interest earned from these accounts are not exempted from Income tax in India.

If you are an NRI looking to open an NRI account in the country, ensure that you understand the features of these three accounts and choose the one that best suits your needs.

What is the difference between private banking and wealth management?

Banking is tailored to specific demographics and not every method suits the general populace. For instance, there is a vast difference between private banking and wealth management systems. You may not be aware of the distinction between the two, but these differences are vital for you to choose the right form of banking.

Here is a look at some of the differences between private banking in India and the wealth management systems.

1. Service range
Private banking mainly deals with business asset management. However, the services that fall under it include banking, brokerage and overall asset management. It also offers simple tax consulting services.

Wealth management, however, deals with deeper concerns when it comes to business finance. The service deals with asset allocation, tax planning, family arbitrage, pensions, estate planning and even philanthropy.

2. Choosing services
Private banking offers select packages for people considered to have a high net worth or for people considered to be having ultra-net worth. These packages cannot be modified to suit the needs of a particular client.

In case of wealth management systems, however, the bank offers a consultant who deals with the needs of each client individually. For instance, one client may require philanthropy consultation while the other may be more concerned about estate planning.

3. Options offered
Private banking in India usually deals with limited services that the particular bank may be offering. This means that as a client you are bound to sign up to one of the services offered by the private bank you are affiliated to.

A wealth manager on the other hand is a person who does not work for any particular bank. So, he/she will consider the services offered by all banks and choose the one that is best suited for you and your needs. This is why people who sign up for a wealth management service may use several banks at once.

4. Focus on client’s needs
Since private banking offers just a few choice packages, there is very little need to understand the individual needs of the client and form a relationship with them. This means that there is very little interaction with clients and you, as a client, cannot seek special treatment from the bank.

However, a wealth manager begins his work by forming a deep relationship with the client. This gives them the opportunity to judge the financial situation and the needs of the client in question.

What are the available fund transfer options in this market?

With the advent of modern-day technology, numerous electronic modes of transferring funds have been made available to the general public. In addition to the familiar methods of money orders, cash and cheque payments and direct deposit drafts that can be reliably arranged by your bank, there also exist alternative options should you decide to cut costs, reduce complications and make fund transfer more efficient. Many of these forms not only allow daily transactions between domestic accounts but also international fund transfer between notable businesses and institutions.

In order to handle money transfers yourself, it can be useful to acquaint yourself with the spate of options available in this market. Below are some ideas on how you can most easily transfer funds over to your desired remittee.

Personal Bank Functions

Keeping yourself informed of the services offered by your bank is often the most effective way of being prepared to deal with fund transfers at any given time. It is quite likely that your bank representatives might be able to assist you with setting up net banking through which you will be able transfer money between accounts at little cost. Furthermore, your bank might be able to issue cheques to you that can enable you to transfer limited funds on a more physical level. They can also write money orders, fix up cash withdrawals and even coordinate with international financial institutions on how you can send your money to overseas accounts. If none of the above processes prove to be suitable for you, most reputed banks also offer a range of consultancy sessions that can provide solutions for your queries.

Online Transfer System

Should you choose not to wait in the long queues at the bank or pay additional bank charges, online payment systems like PayPal, Payoneer, Dwolla etc. may be the appropriate options for your transfers.  With just an email address and a valid bank account, you can become a member and thus be eligible to send money as well as make electronic purchases.
Not only  are these free services, the sites also provide coupons and promotions that can help you reduce shopping costs. The companies pride themselves on fraud-prevention and also resolve disputes between buyers and sellers, remitters and remittees through a specific resolution centre.

Money Wiring Companies

This financial service has laid out branches in key locations across the world and can offer to send your funds for you at a flat rate charged on the basis of speed of transfer, amount of funds and location of remittance. Though it charges a moderately high cable charge and also issues a disclaimer clearing the company of liability for failure to transfer funds, this form of fund transfer can be highly beneficent for emergency funds payment as it does not require identification or claiming.

What are the Different Factors That can Affect your Personal Loan Eligibility

Loans are very easy to get nowadays as banks offers a lot of incentives and low interest rates. However, the terms of a loan vary according to the type of loan taken by an individual. The most common types of loans available today are-

 Personal Loan
 Home Loan
 Car Loan
 Loans for business ventures and enterprises

Personal loans are basically unsecured loans that do not require any collateral. As the banks do not take any security or collateral for the loan, it becomes very high-risk. A personal loan is given at very high interest rates. Also, this loan can be used for any purpose ranging from travel, medical emergencies or any other personal use. Personal loans are taken by people requiring immediate cash. People opting for personal loans need to fulfill certain eligibility criteria to get the loan amount from the bank. These are:

• Age- A person’s age plays an important role when applying for a personal loan. For a salaried person, the age limit is between 21 to 60 years and for self-employed people, the age limit is between 25 to 65 years.

• Nationality- People applying for personal loans from Indian banks or banking institutions must be Indian citizens.

• Income- In a personal loan, the amount given by the bank will depend on your income.  The higher the income, the higher the loan amount that you will get. Also, having higher salary also helps in negotiating a lower interest rate.

• Employment Status- When applying for a personal loan, you need to be an employed individual. For salaried individuals, at least 2 years’ service with your current employer and for self-employed people, there has to be 5 years' annual earnings. However, it is completely the discretion of the bank whether to give you a particular loan amount or not.

• Housing- The eligibility of personal loans also depends on whether you stay in your own house or in a rented place.

• Credit Score- It is one of the most important factors for the bank. Two factors needed for calculating credit score are- 1. repayment of past or current loans and 2. repayment of credit card bills. Having a good credit score positively influences the tenure, loan amount and also interest rates.

• Employer- Having lower interest rates on your personal loan also depend on the organization you are working for. If you are working in a reputed organization, chances are you  will get favorable terms for your personal loans

• Maintaining a healthy relationship with the Bank- If you have been a loyal customer of the bank and have a good financial record, you will get a higher loan amount and lower interest rates.

These are some of the personal loan eligibility criteria that you should follow. So before applying for a personal loan, make sure you meet all the requirements.