Personal Loan: 3 Unique ways to use an unsecured loan

Deciding whether or not to take a personal loan can be a tricky. This is mainly because personal loan is the only loan where the lender does not restrict you to use the money in a certain manner. For instance, education loan money can only be spent for education, while car or house loan can be used to only purchase a car and home, respectively. However, you can spend the money acquired through a personal loan for anything that you feel like.

Another unique feature of a personal loan is that you do not have to put up a collateral for the loan. So, rather than spending the loan money on a wedding or a vacation, you can try out these fun and unique options.

1. Adoption

When we think about a personal loan, we never think about the prospect of adoption. However, in India, the cost of adopting a child can be anywhere around Rs. 30,000 to Rs. 40,000. Aside from that, you would also need to hire a lawyer, which can also be an expensive prospect. Taking a personal loan can help you out in this regard and help save your own money, which can be used to care for the adopted child in the future. However, make sure that you only borrow as much as needed and not more.

2. Flipping a home

People with a penchant for business can take a personal loan in order to flip a house. Flipping a house means giving it a complete makeover. You can try to purchase an old or dilapidated house at cheap rates and use the loan money to renovate the structure. After the remodelling is complete, you can sell the house at a much higher rate than what you originally paid for it. So, apply for a personal loan if you think you can succeed in such a venture.

3. Starting your own food truck business

Food trucks are a common enterprise in the western countries but it is still an emerging market in India. The advantage with such a food truck is that you do not need to lease or purchase land for your eatery. You only need to purchase a big enough truck that can house the kitchen and food preparation counters. You can apply for a personal loan to set up such a business with ease, the profits generated by the business can then be used to pay off the loan.
No matter how you plan on using the personal loan money, remember that you should only loan as much as required. Going overboard may result in unnecessary hassle while paying it back i the future.

How credit card EMI calculator will help you keep your credit in check

Credit cards have a completely different functionality when compared to debit cards. While debit cards let you spend money that you have saved in your own account, credit cards let you spend money that you borrow from the bank. In a way, a credit card lets you loan small amounts of money each month for expenditures.

Although a credit card can be quite beneficial under certain circumstances, you need to keep an eye on the money that you spend using the same. Since this money is a loan, banks charge a substantial interest on it. If you are unsure about how much you would need to repay for a certain amount of credit card expenditure, an EMI calculator can be quite helpful. Here is a look at some of the benefits of credit card EMI calculator.

1. Understanding the connection between rate of interest and credit card bill
Most people tend to feel that they can spend as much as they want when they have a credit card. However, this is not true for two simple reasons. Firstly, each card comes with a credit limit, which you cannot cross each month. Secondly, if you reach the credit limit, chances are that you would be met with a huge credit card bill the next month.

So, it is very important to understand the interest that the credit card companies charge on your each and every purchase using the card. A credit card EMI calculator will allow you to understand how much interest you would have to pay when you spend a single buck using your credit card.

2. Determining how much you can afford
Once you understand the concept of the interest levied, you will also come to appreciate the fact that you cannot afford monumental credit card bills each month. With the credit card interest calculator you are given the opportunity to determine the maximum credit that you can take, without going overboard on your finances.

3. Picking the right card
Each credit card company offers a variety of credit cards to customers. However, not all of them will be suitable for you. Before selecting a card, you need to perform an extensive research regarding the benefits, offers and rate of interest charged on the spending. The credit card EMI calculator will aid you in narrowing down the best card for you, by helping you compare the cost of the card.

So, it is highly recommended that you take advantage of a credit card interest calculator prior to taking a card.

Health Insurance Plan: Key Factors You Need To Be Aware Of

A health insurance is a very important financial investment that almost everyone makes in order to secure the well- being of the concerned individual’s near and dear ones. Medical expenses are very steep and once a medical need arises in the family in the form of a surgery or therapy you can expect to incur a good amount of expenses. In such a situation you will not only have to pay for the cost of the surgery or therapy which will be quite high to begin with but you also need to purchase an array of medication both during the pre-surgery as well as post-surgery period, coupled with that are gazillions of tests that you will be asked to take by the doctor. So, taking into account that there will be a lot to consider, you might as well put in considerable amount of time researching about the different market products as well their features.

Key Features of a Health Insurance Plan Includes:
• Efficiency of Claiming- When you thinking about purchasing a health insurance for your family try to find out the ratio of the claims settlement and also the speed of it. If both are on the higher side then you are rest assured that the insurance company is doing one heck of a job when it comes to claims.

• Networking of Hospitals- This is where you need to look up if the health insurance plan features the facilities that you are likely to require often. Also, take note of the fact that if in the future you are required to shift then the travel insurance will also go along with you. Cashless facilities are another feature that you need to see are available in the networked hospitals.

• Pre and Post Hospitalization- The medical expense that you will have to take care of both during the period; before and after your hospitalization is known as pre and post hospitalization. These include follow-ups as well as medications that you will be asked to take.

• Gratis- Try to search for health insurance plans that provide you with a free health check-up option. These check-ups will not reflect upon the premium on the return of the policies for renewal.

• A Lifetime of Renewals- Look for policies that can be kept on renewing. This kind of a health insurance plan will not have any age limit policy when it comes to the time of renewal. This helps when you have elderly parents to consider and include as part of the policy.

Although these aren’t some of the limiting factors to consider when looking for health insurance policies, these are certainly some of the key factors.

Online toll payment: The convenience of paying toll online.

If you are working in a corporate house you must be aware of the RFID (Radio frequency Identification) card that you use every day to get access to your office. An RFID reader recognizes the tag which remains installed within the card. It works using a touch and go system whereby once you place the card on the reader, you are allowed access. RFID tags work well in any place where mass data collection and tagging is involved. Did you know that you can use the same technology to pay highway toll? And the best thing about it is it allows you to pay toll online hassle-free. It is surely a one-stop-solution if you have to pay toll tax on a daily basis while commuting.

FASTag is the newest device from the house of Radio Frequency Identification Technology. The tag remains attached to your vehicle’s windscreen and once you link it to a prepaid account, the tag becomes active. The toll fares are deducted from your rechargeable prepaid account automatically, every time you cross the toll plaza. No, you would not require waiting in front of a toll plaza if you are the proud owner of this technology. You just drive pass it seamlessly.

These are some of the benefits that you will enjoy if you pay toll online.

FASTags saves your time:  A person who needs to pay toll tax on a daily basis is best suited to understand the pains of waiting in the long queues that often form in front of toll plazas.  If everyone, beginning from public transport drivers to owners of personal vehicles starts using FASTags, imagine the amount of time that will be saved on your way to your destination.

Reduces traffic jams in front of toll plazas: All of us are aware of the painful traffic jams that form in front of toll plazas on the freeways. Most of that happens because trucks and heavy-duty vehicles use the highway to ply between different parts of the country. But if none of the vehicles pays highway toll physically and the process becomes completely automated, the traffic jams will also be brought down significantly.

Transparent: It is a transparent method which allows no extortion. This technology will play a major role in regularizing the collection of toll taxes on every part of the country. If FASTags become the only existing system, a no-escape policy will work soundly.
Convenient: Often you don’t have change and the collector refuses to take a note of a higher denomination; cue for a mild altercation in front of the toll counter, more traffic jams and angry drivers honking behind you. All these can be eliminated with a FASTag. 

Currently FASTags are being used in 350 toll plazas across India. Know if your nearest toll plaza has implemented the latest technology and if it has, get your FAStag fast.

Stock trading and demat accounts: All you need to know.

Before letting you on about the difference between a demat account and a trading account, first we would begin by throwing in a few details about how the stock market works. In simple words the stock market is a commercial hub. Here, the companies that are registered to conduct stock exchange, commence the process with a public offering against the stocks that the companies wish to sell to potential buyers. This is followed by bidding and the buyer acquires a stock after a final price is negotiated between the buyer and the seller.

Why do you need a trading account?

So, as has been aforementioned, whenever a company gets registered with the stock market, its shares become automatically open to the public. In other words, the public can now trade in these shares on the stock exchange. In earlier days before the advent of technology, bidding used to be a chaotic affair full of hue and cry. But, today, thanks to computers and the virtual realm, you can easily gather details related to stocks like the market price, and the ensuing trade process from within the comforts of your home or your work place. However, in order to get the privileges of the stock market, you must open a special account, called a trading account, first thing, that will allow you to conduct all the transactions. You can open a trading account conveniently, online. On opening the account you will receive an exclusive ID that will be used for trading.

What is a demat account?

If the trading account acts as a license to all your transactions, a demat account works as a wallet, where all the stocks that you buy get deposited. And if you are selling a stock of your own, this same demat account is used, from where the stock is picked up and sold.

Opening a trading account and a demat account online

A trading account can be opened online very easily. Use your discretion while choosing a firm. Compare the brokerage charges and make sure that the broker acts as soon as you place an order. One you choose your broker, you have to contact the responsible person who will collect all the personal details from you, like your PAN/Aadhar card details, address proofs etc. This will be followed by a verification process, after which you will get the trading account details, and, you are all set to conduct transactions.
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Likewise, you can also open demat account online. You simply need to link your demat account to your trading account and all the details pertaining to your trading account will be accumulated through the linked demat account. You can also open demat account online and ascribe a nominee to it. The nominee will receive all the securities of your demat account in case you are no more to claim it.

How to make the most of RTGS transfer

RTGS or Real Time Gross Settlement is an online fund transfer method that is overseen by the Reserve Bank of India. Through this method, people can transfer funds from one account to another in a real-time basis. Usually, RTGS payment involves a large amount of money and the minimum transaction should include more than Rs. 2 Lakhs. This is why RTGS transfer is reserved for business transactions and transfer of funds from one bank to the next.
RTGS is often considered to be a better option for fund transfer than the NEFT mode, where the clearance does not happen on a real-time basis. Here is a look at some of the ways in which you can take advantage of the RTGS method of payment.

1. Real-time settlement
RTGS transfer is the only option that involves real-time clearance. This means that as soon as you initiate the transfer, the beneficiary accounts will receive the funds instantaneously, without having to wait for the transfer. This is quite beneficial and is different from the NEFT method. In NEFT, the fund transfer is cleared in hourly batches. This means that there is a delay of a few hours from the time that you initiate the transfer till the time that it clears.

2. Online and offline method
RTGS payment can be made online and offline as well. If you are unsure whether you should proceed with the transfer online, you can do the same through the offline procedure as well. This will involve visiting the bank branch, filling out a remittance form and submitting it. However, the online procedure is much simpler, as you will not have to drop by the bank and the entire transfer can be conducted using the internet.

3. No added costs
All other means of fund transfer usually involve an additional cost, known as the processing fee. For instance, in case of fund transfer using demand draft, you would need to first pay for the draft to be created. This is an added cost that you would not have to bear if you choose the RTGS transfer method.

4. No upper limit to transfer
While you cannot transfer an amount lower than Rs. 2 Lakhs using the RTGS payment, the RBI has not imposed any upper limit to the amount that you can transfer. This is very useful for business purposes, as many large companies need a safe and secure way to transfer Crores of Rupees. RTGS offers this option to businesses, unlike all other modes of transfer.
You should take advantage of the RTGS method if you have a business and need transfer funds from one account to another instantaneously. The method can also be used to payy off the salaries of your employees.

Wholesale Banking: What do you know about it?

Wholesale banking refers to the financial system of monetary transaction between two big institutions. Under wholesale banking, services are provided only to government agencies, funds for pension, corporations having strong financials, and institutional customers. These services include cash management, leasing of equipment, big loans, merchant banking as well as trust services. Wholesale banking between two institutional banks takes place on the internet market which often involve huge amount of money.

In addition to traditional retail banking services, many standard banks offer wholesale banking and function as merchant banks. This basically implies that an individual in search of wholesale banking could join in the same bank where he controls his very own retail banking instead of going to a special institution. Modern wholesale banks engage in the following:

• Underwriting
Large specialist monetary organizations like banks and insurance houses offer these services whereby payment in case of any financial loss is guaranteed and they accept the monetary risk for accountability that may arise from such guarantee. An underwriting settlement is usually created in situations like insurance, issues related to securities in primary markets. 

• Wholesale financing
Banks usually rely on customer deposit to offer money that it can give away as loans to its borrowers. With the help of wholesale financing banks borrow additional money that can later be used to expand the business of lending funds above the level of deposits and accelerate interest earnings.

• Market making
A market maker, often termed as a liquidity provider, is an individual or a company that cites both buying price and selling price in a financial instrument in order to make profit on the turn.

• Mergers and Acquisitions (M&A)
These are transactions which combine the ownership of companies, business organizations, or their operating units. M&A allow an enterprise to grow, shrink, and change the nature of their business or competitive position.

• Fund management
Fund management basically means any system that monitors and maintains valuable things to an entity or group.

An easy way to think of wholesale banking is to consider it as a discount store that deals in such huge sum of money that it can present special prices or lowered fees. Large organizations, institutions with huge amount of asset, or business agreements usually benefit more from wholesale banking than from retail banking.