How to land a good car loan in these easy steps

Are you not able to decide which car loan you should go for to buy your dream car? You must be looking for the one that will not strain you financially among the plethora of car loans available in the market. Take a look at a couple of tips that will help you to zero in on the best car loan out there.

1. Check your financial condition

The first and foremost thing you should do is checking your credit score. If you have a high credit score, the banks usually lend you money at a lower interest rate and you can easily avail auto loans. Hence you should try to improve your credit score to get a car loans at a cheaper interest rate and a longer tenure.

2. Decide the loan amount

This is a very important thing to consider. Car loans offered in the market range from as low as 1 lakh to 75 lakhs for imported cars. But, that does not mean you should go for the full value of the car as car loan. The value of a car decreases with time and so does its resale value. Therefore, you should consider how much down payment you can make, what the maintenance charges are and how much EMI you can pay based on your income and determine the loan amount accordingly.

3. Check the car loan interest rate

Usually the rate of interest on car finance varies between 8.4 to 13.5% depending on the automobile segment, loan tenure and loan amount. For a given car segment, select that loan which has the lowest interest rate keeping in mind the tenure in which you can repay the loan. Additionally, you should also check out whether the interest rate is fixed or floating. Floating rates are usually lower then fixed rates but fixed rates protect you against market inflation. So, think your requirements through and see if the rate of interest is something that complies with your plan.

4. Compare the charges in the loan

Apart from interest rate, there are other charges like pre-payment charge, processing charge associated with car finance. Processing fee varies from bank to bank and is usually between 0 to 2% of the entire loan amount. While some banks don’t have pre-payment and late payment charges, some do include them in the terms and conditions. Therefore, you must definitely look out for these and select the loan with minimal additional charges.

Buying a car is a huge financial investment and to make a decision that does not financially destabilize you is extremely important. Following these steps will help you in making the right choice for car loan.

Why is it important to know the IMPS charge before making a transfer?

IMPS (Immediate Payment Service) is the best fund transfer system out there. It takes only seconds to transfer money through IMPS and you can do fund transfers at any time you like, even on days that are declared bank holidays. Additionally, there is a need for you to give the bank details of the beneficiary for fund transfers. You just need to login through your net banking portal or the bank’s mobile banking app, provide the amount, the registered mobile no. as well as the 7-digit MMID (Mobile Money Identifier) of the beneficiary and that’s it – your transaction is complete.

However, IMPS fund transfer has certain charges associated with it. The reason for this is that for IMPS, systems and servers need to be setup and maintained which cost the government as well as the banks. Thus, some negligible charges are put on these transactions towards recovering those costs. For instance, Rs. 5 is charged on IMPS fund transfers of up to INR 1 Lakh. It is important to know about these before you do a fund transfer because of the following reason

• Knowing what the charges are for IMPS fund transfer helps you in situations where you want to go for a low-cost fund transfer option. Usually fund transfer systems have different charges for different ranges of amounts. Knowing the IMPS charges will help you compare IMPS with other fund transfer systems to help you find the one that is apt at that point for that particular transaction.

• Sometimes, in rare cases, additional amounts get deducted as charges from your accounts due to unforeseen technical issues like server failure/restart at time of transaction, etc. If you know the IMPS charge rates, then you can identify such deductions and notify the bank, who will then refund the additional amount into your account.

The benefits of IMPS fund transfer far outweigh the modest charges it incurs. Apart from being a cashless transaction method, it can be used anywhere on the go through your smartphone, laptop, etc. While other transaction methods such as RTGS and NEFT can be conducted only designated business hours on working days, all IMPS transactions can be conducted round the clock and on public holidays as well.

With two-factor authentication mechanism that asks for a pin as well as a transaction OTP, it is also the most secure form of electronic transfer as well. You need to be aware of the IMPS charges and why you are being charged so that you can do your transaction without any difficulties.

Are you aware about these benefits of the UPI payment?

Are you in a pickle thinking about how you are going to transfer funds on a public holiday? And how many times has it happened that you left home for a trip with friends and forgot the wallet at home? Don’t worry as UPI is here to save you in such situations from now onwards. With UPI, you can do any transaction with a few taps on your smartphone anywhere, anytime. There is no need for carrying any cash or waiting in the long queues at banks either to conduct an important transaction. UPI (Unified Payments Interface) is a payment system developed by NPCI (National payments Corporation of India) for conducting instant money transfers between two accounts that may belong to the same bank or two different ones. While the advantages of a quick and cashless transaction are evident, there are some other benefits that you may not be aware of. Take a look-

1. In online transaction through debit/credit cards we have to give out details like card number, CVV number, etc. Similarly in net banking you need to give bank account details. But for UPI payments, you only need the beneficiary's Virtual Payment Address (VPA), which is usually in form of xyz@bankname. Thus, it helps protect your bank details by not exposing them unnecessarily and also saves your time as you don't have to enter the account number, IFSC number, MICR number and other such details for each transaction.

2. If you have multiple accounts in different banks, you need not install an UPI app for each of them. You can link multiple accounts to one UPI app and can use it to make UPI payments through the account of your choice.

3. You can schedule payment reminders through UPI. When you want to collect money from someone at a later date, you can set a time limit for the other UPI user to authorize payment. If the other user exceeds the time limit you can also send reminders to them for authorizing the payment. When the other user authorizes the transaction, the transfer will occur instantly.

4. Usually, when you register for online transaction systems such as net banking, you have to wait for a period varying from 30 minutes to 24 hours before you can conduct any transaction. For UPI there is no such waiting period and you can start transferring funds immediately after registration itself.

5. While ATM withdrawals for more than 5 times a month have charges around Rs.20, in UPI payments no such charges are deducted. UPI is also comparatively cheaper than NEFT and RTGS.

The benefits mentioned above make UPI the preferred mode of bank transactions for many. If you want to make hassle-free and cheap transactions round the clock at from possibly anywhere, then UPI is just what you need. So, if you are not using UPI already, start now!

What are the steps you need to take for an online savings account opening?

If you are looking for a way to open a savings account without making multiple trips to the bank, then opening savings account online would be the perfect option for you. Additionally, you can get information on benefits, rate of interest etc. related to different types of saving account online. Here are some quick steps you can follow for opening a savings bank account online.

Step -1: Zero in on the type of savings account you want

There are four types of savings account – Regular savings account, money market account, checking account and certificates of deposit/fixed deposit. When selecting a savings account you should consider the following to identify which savings account will suit you the best-
• The goal of opening the account
• The minimum balance to be maintained
• The interest rate offered
• The inked charges
• Features of the credit/debit card

If you prefer taking out or putting in money as and when you like, then go for checking account instead of fixed deposit where you can't do so. If you want to have an account with less minimum balance level, then go for a regular savings account. But if you want high returns and do not have a problem with maintaining a high minimum balance level, then opt for money market accounts.

Step -2: Apply for the account online
After selecting the type of savings account, the next thing to do is applying for it online. There are fraudulent websites that might try to steal your personal information by impersonating the bank. So, when applying online, ensure that you apply on the official website of the bank by checking the links and the lock symbol (which should be green) in the address bar. In the application form, fill all the details correctly and keep scanned copies of required documents like ID proofs, etc. ready, so as to upload them wherever required.

Step -3: Verify yourself with the bank




After application, the bank will send you a mail on the registered email id to verify your identity. Follow the instructions in the email to verify yourself. This is important because unless you verify yourself, the bank will not approve your application. After verification, the bank will approve your application, set up your account and send you the linked debit card and other documents.

Step -4: Set up strong pins and passwords
Once you have received the net banking and debit/credit card details, immediately login and change the default passwords and pins. Because passwords like name, date of birth, phone number and alphanumeric patterns like QWERTY, 1234, etc. can be guessed easily by hackers. So, you must avoid using such passwords to keep your personal details and hard-earned savings safe. Use a combination of special characters, upper and lowercase letters, numbers etc. In your password. Additionally, keep changing your passwords and pins regularly.

You can follow these steps for opening savings account online quickly, seamlessly and without any complication.

Online Recharge Mobile: What are the different options?

Mobile phones have become the most common electronic devices on the planet. So, it is only natural that the procedure for recharging the devices has also become simpler with time. There are several options when it comes to online recharge mobile; here is a look at some of the best options for mobile recharge.

1. Paytm
Paytm is perhaps the best and most popular app used for recharging mobiles. Generally, people use the app for making payments for purchases, but the same may also be used to recharge mobile. The app has been downloaded more than 7 million times and it has over 20 million registered users. Due to its overwhelming popularity, many telecom providers such as Airtel, Vodafone and others provide discounts and deals on mobile recharge through Paytm.

2. MobiKwik
MobiKwik is another mobile app and a third-party payment option for any kind of payment related to product purchase or bill payments. Mobile phone recharge is one of the options that people have while using MobiKwik. Just like Paytm, MobiKwik also offers certain discounts on online recharge mobile.

3. Bank app
Almost every bank has a mobile app these days and it is likely that your bank will also have one. Download your bank's app and sign into your own account. Through this app, you will be able to pay off the bills and will also be able to make mobile phone recharge. If you have internet banking facilities activated for your linked account, you can also conduct other transactions using this app.

4. Telecom company website

The telecom company that provides the connection to your phone will also have a website. When you access this website, there will be an option through which you would be able to pay outstanding bills for your phone. It will also allow you to recharge your phone in case of a prepaid connection as well.

Many other websites and portals exist and they offer the same facilities. However, it is better to recharge your mobile from a trustworthy site. This will ensure that you are not duped and the money is used for the phone recharge itself. You can also link your credit/debit card details to such a portal and then you don't have to separately submit your account details for the subsequent transactions. Check for offers and discounts that such online recharge services provide, as there are often attractive cashback options available online. So, not only does the online recharge of mobile phone help reduce the hassle, it also saves your money on many occasions.

What is consumer durable loan?

Loans may be the best way of coming out of a financial pickle. Home loans and education loans can help with the purchase of your dream home and pursuing higher education, respectively. However, a new form of loan has become popular in the last few years, which is known as consumer durable loan. These loans are taken in order to buy household products and consumer items which can help improve the quality of life.

Here is a look at all you need to know about a consumer durable loan and what you can use it for.

1. What can you take the loan for?
The loan is mainly taken to finance electronics used in most households. For instance, the loan money can be used to purchase a refrigerator, washing machine, air conditioner, microwave oven, laptop, desktop, smartphone, TV and a cooking range. In case of desktops and laptops, the lender may set a limit for the amount of money sanctioned.

2. What is the maximum sum that you can borrow?
There is no set limit for the amount of money that you can borrow. Usually, a consumer durable loan may be anywhere between a few thousands and Lakhs, depending on the product that you are looking to purchase. Before taking the loan, you would need to disclose the reason for the loan to the money lender.

 3. Tenure for repayment of the loan
For a consumer loan service, there can be a varied tenure for repayment of the borrowed money along with the interest on the sum. Usually, the tenure may range from anywhere between 8 months and 3 years. The time allowed for the repayment varies from one lender to the next. It may also depend on the amount of money borrowed.

4. Interest charged for the loan
The interest rate charged on a consumer loan service also varies from one lender to the next. However, in India, it is generally around 15 to 22 percent. The rate depends on whether you are a salaried individual or a self-employed person. The rate is always higher for self-employed people, when compared to salaried individuals.

5. Eligibility criteria for the loan
Consumer durable loan is only available to people aged between 21 and 60. Apart from a valid identity proof, loan applicants will also need to provide a proof of income, so that the lender can ensure that he/she is capable of paying back the borrowed money along with the interest.

RTGS Transfer: Factors you need to know

Real Time Gross Settlement or RTGS is a form of electronic money transfer where the money is transacted in real time. It is often considered a better option than other similar forms of payment such as NEFT and IMPS. Here are some of the factors of RTGS money transfer that you should be aware of.

1. Minimum and maximum value of transfer
RTGS transfer is used in case of large transactions. This is because, the mode can only be used in case of transferring more than Rs. 2 Lakh at a time. However, the maximum limit of transfer at once is set at Rs. 10 Lakh. So, if you want to transfer money within this range, ensure you choose the RTGS method.

2. Type of settlement
The money is transferred on a one-on-one basis which is always convenient. In NEFT method, the payment occurs in batches, which means that there is a delay when it comes to the transfer. Furthermore, the settlement occurs immediately in case of RTGS payment and not hourly, as in the case of NEFT transfers.

3. Timing for RTGS  
RTGS transfer is not available at all times. For instance, during weekdays the available time for RTGS payment is from 8:00 am till 4:00 pm. On Saturday, the timing is from 9:00 am to 4:30 pm. However, the same form of transfer is not available on Sundays and public holidays. It is important for you to know the timings if you want to conduct RTGS transactions.

4. Cost of RTGS transactions
The fee for RTGS transaction depends on the amount that is being transferred. If the amount is between Rs 2 Lakhs and Rs. 5 Lakhs, the transaction cost will be Rs. 25. If the amount is greater than Rs. 5 Lakh, the transaction cost is Rs. 50. Therefore, the cost for RTGS is quite reasonable and easy to afford.

5. Online and offline transaction
The most convenient factor for an RTGS transfer is that it can be conducted both online and offline. So, you can simply visit the bank’s website or open the bank's app to initiate a transaction. From there you can easily conduct the transfer by providing the necessary details of the beneficiary’s account. This will help you save money and avoid any hassle that may crop up in the offline process.

Now that you know all the basic but important details concerning RTGS transfers, keep them in mind to initiate and conduct such a transaction smoothly.