Bike Loans and its Benefits

In recent years, two wheelers have become the most preferred modes on transport in cities. They are cheaper as compared to cars, easier to maintain, and help wade through traffic congested roads. They also have better resale value and are super convenient. But most two-wheeler companies require a one-time direct cash payment for purchasing these vehicles. In such cases, financial institutions have started to provide two wheeler vehicle loans, to make it convenient for customers to purchase their dream vehicle. Bike financing is easier to acquire, as compared to other loans provided by banks.

Some of the advantages of availing a two-wheeler loan instead of going with an all cash transaction are:

1. It reduces the burden in times of a financial crunch. Since the money to be paid back is at a nominal fixed interest rate, it makes it easier on the pocket to repay a small sum every month.

2. There has been an increase in the number of commuters who prefer to travel via two-wheelers. Due to this, interest rates have been facing a downward slope over the past few years. Interest rates mostly vary from 12-27%, depending on the bank, income range, bike specification, etc.

3. Getting a two wheeler vehicle loan approved is not a very difficult task as it is not mandatory to have an annual income salary within the taxable income range. A basic two-wheeler costs between 55,000-75,000. When a loan is taken up, the amount repaid each month will be lesser as the cost of the vehicle is lesser and there are also very convenient offers, which include low EMI outflow, and only interest.

4. Previously, borrowers needed to wait months before their loans were sanctioned to them. Now, it happens within a day! The process of repaying the amount has also become easy as the time period now varies between 12-48 months. And in case the borrower is unable to pay back the bike loan, an extension for 60 months can be availed as well.

A two-wheeler does not have to be a luxury that one cannot afford, anymore. With the help of loans from financial institutions, 90% of the marginal cost is covered and only 10% is the down payment, which is a very nominal amount, to purchase a bike. Such improvements have made the process of bike financing, hassle-free for the common man.

All you need to know about education loan – its criteria and benefits

The function of education is to teach one to think intensively and to think critically. Intelligence plus character - that is the goal of true education,’ – Martin Luther King, Jr.

For a successful and complete life, quality education is a must. For many students, it is about graduating from top college. However, the cost of education is increasing rapidly. Simultaneously, the price and quality of education in reputed colleges is growing dramatically. To provide the best training to their children, parents take up mutual funds or fixed deposits for long-term purpose. Despite all this, some might face shortage of funds. That is when education loan is taken to cover up the deficit. 

What is education loan?

An education loan bridges the gap between scarcity and required amount. It assists students to study in reputed colleges in India by providing financial aid. With education cost increasing at an average of 15 percent per annum, attaining an education loan in India is easy.

With education loan provided to students who do not possess enough expense, the primary education loan eligibility is the students’ academic excellence and achievements.

Criteria for an education loan

Some of the essential education loan criteria are:

- The student must be resident of India
- He/she must have confirmed admission in a recognised institute in India or overseas
- The age bracket of the student must be within 18 to 35 years
- He/she should be undergoing a graduate/postgraduate course
- The student must secure admission in a college affiliated by UGC/Government/AICTE, etc. 
- Students who are intending to pursue full-time courses need to have a co-applicant. They can be either parent/guardian or spouse/parent-in-law.
Now that you know the criteria let us understand education loan in detail. Why should one opt for it?

What are its benefits?

1) The student on whose name the loan has been taken can claim a deduction for the entire interest under Income Tax Act section 80E. However, this can be availed if the investment is made from a specified financial institution that is listed on behalf of the Central Government. Also, it can be taken only when the student is pursuing higher education.

2) The education loan not only covers the deficit amount but almost the entire study expense like tuition fees, library and exam fees, cost of uniform and books, and travel costs.


3) Banks generally offer 0.5 percent discount on the education loan interest rate for female students, who are pursuing higher studies.

4) One receives a holiday period of 6 months to 1 year known as moratorium period under which you do not have to repay the loan. It means the repayment does not begin immediately after the conclusion of the course.

Education is a way of inculcating culture in children, moulding their behaviour, and eventually guiding them to their role in the society. In short, education is the tool to shoo away the evils of the societies.

7 Reasons why the gold loan is best for your financial needs

‘All that glitters is not gold’ goes the well-known proverb. Gold and its craze in India is prominent. There are even auspicious occasions where one specifically purchases gold in India like ‘Dhanteras’ and ‘Akshaya Tritiya.’ India are the biggest importers of gold in the world. But were you aware that this gold can act as a financial aid during emergencies? Be it medical, child education, business expansion or holiday with your family, gold comes to the rescue in financing these expenses.

What is gold loan?

Several banks and non-banking financial companies (NBFC) offer gold loans. They are the most hassle-free and quickest way of getting cash. Lower middle-class segment makes use of the gold loan in their lockers for funding their child’s education or wedding, till date. One can acquire the credit against any piece of gold like jewellery, gold coins or gold biscuits.

Gold loan in India comes with specific benefits: 

Faster processing of loan:

Banks are receiving physical gold as collateral for the loan; they tend to happily disburse the mortgage right away. Value of the gold is determined on the spot by an expert. Based on the examination, banks provide the loan in few hours or maybe even 45 minutes, if the process is conducted swiftly. Brownie point: no processing fee is applied. 

Fulfils short-term goals:

Want to head to that dream destination but facing lack of funds? Loan on gold is provided for short as well as long-term goals. The tenures for short and long-term is 6 months and 2 years respectively.

Borrow in thousands or lakhs:

Personal loans are usually not offered if the amount required is not more than INR 1 lakh. When it comes to a gold loan, one can borrow anywhere between INR 50,000 and INR 50 lakhs. Thus, both small and large financial requirements are fulfilled. 

No credit issues:

Unlike other loans which are issues based on your high credit score, the case is different with the gold loan. Since the gold is used as collateral, the bankers are not worried about low credit score.

Lower interest rates:

As these are secured loans, the interest rates are lower than unsecured loans like a personal loan. If you attach another collateral along with gold, the interest rate can be reduced further. The interest rate begins from 13 to 14 percent as compared to personal loan rate that starts at 15 percent.
No requirement of income proof:
While equity loans have made it mandatory to provide income proof, loan on gold requires just address, identity proof and passport size photographs. 

Special gold loan schemes:

Certain banks offer special gold loan schemes for women and agriculturists. In case you are eligible for the same, one can contact the financial institutions to avail them. Some banks offer loan against gold on discounted rates to many. Some schemes are streamlined for people in business and small and mid-sized companies.

Some of the best banks that offer gold loan in India are:

- Muthoot Finance Gold Loan
- Manappuram Finance Gold Loan
- Union Gold Loan
- HDFC Gold Loan
- SBI Gold Loan

Pre-owned Car Loans and All You Need to Know About Them

Getting your dream vehicle is not too far away. Second-hand or pre-owned cars have become popular among consumers these days, due to the reliability of a number of establishments in the country. They ensure that the pre-owned vehicles are certified and well maintained and is a perfect working condition. Despite being pre-owned, these vehicles don’t come cheap. Sometimes the allocated budget might not be enough and this might be a huge hassle for customers looking forward to purchasing their own vehicle. At times like this, financial institutions provide an easy option of taking up a vehicle loan in order to make such a purchase.

Following, are the benefits and features of opting for a car loan for used cars:

1. The bank finances up to 80%  of the value of the car, therefore reducing the burden of arranging for and shelling out huge sums of money

2. Loan for used cars is available for almost all car models

3. The used car loan can be availed up to 3-6 times of the borrowers annual income

4. The bank will finance cars of any make manufactured in India, as long as the car is not more than 10 years old

5. The repayment tenure is flexible and varies from 12 to 60 months. So depending on the repayment capacity of the borrower, one can choose a longer tenure with lesser EMI, or a shorter tenure with a larger EMI

6. Car loans up to Rs. 50 lakh can be availed, therefore helping buyers purchase popular and newer models, at better rates
The vehicle loan can be availed by salaried individuals as well as self-employed ones. For salaried individuals, the minimum age is 21 and maximum age is  60, for applying for the used car loan. For self-employed individuals on the other hand, the minimum age is 25 years, and maximum is 60.

The following documents are required, in order to apply for the vehicle loan:

1. Age proof (Passport/Aadhaar card/PAN card/Voters ID/Driving license0
2. Identity proof (Aadhaar card/Passport/Voters ID/Ration card)
3. Proof of income (Latest salary slip/Latest form 16)
4. Address proof (Ration card/ Passport/ Telephone bill/ Electricity bill)

Benefits and challenges of Private Banking

Private Banking means personalised financial and banking services to the high net worth individuals (HNWI). Usually, HNW individuals are usually those who own a business, acquire more wealth as a result of it and therefore require the expertise of wealth management services with access to alternative investments. As such, private banks act as mediators and offer their assistance to such individuals regarding their investments.

Private Banking services include exclusive investment-related advice, protecting and growing assets in the present, providing specialised financing solutions, planning retirement and passing wealth on to future generations.

Benefits of Private Banking:

1) Privacy: The services offered by private banks remain highly confidential between the institution and the consumer. Their approach is providing exclusive services to their customers so that the competitors don’t lure a potential client with a similar solution.

2) Customized services: Prominent banks make sure that the HNWI clients receive personalised services tailored as per their assets held. An account or relationship manager is assigned to each customer who allows the customer to access mid-level upper management directly. This easy access minimises any obstacles for providing inputs regarding wealth management decisions, and the bank can strategise the decisions according to the client’s financial decisions.

3) Incentives:
HNWI act as main clientele for banks, solely because of the substantial assets they bring to the institution. They are often rewarded with special private banking services like tax preparation and planning, traveller's checks, or corporate checking at discounted rates.

4) High returns:
Most of the HNWI clientele receive higher returns from their investments that outperform the market.

Challenges:

1) Regulatory restrictions:
Regulations in India are not adequately equipped to deal with the kind of products and services that private banks sell. Few investments are not regulated by an authority making it difficult for the investors to redress their grievances.

2) Lack of Infrastructure:
Lack of appropriate IT infrastructure is one of the significant challenges facing the private banking sector in India. Bank branches are not well equipped to cater to HNWIs who require such high-profile services. Wealth management services currently in use are basic and are used more as instruments for generating reports rather than for financial planning.

3) Lack of expertise:
Private banking needs financial analysts who build strong, lasting and trust-worthy relationships with HNWIs following any financial crisis. There is a shortage of experienced and trained private bankers. Hence, recruiting, training and retaining highly qualified professionals is a high priority for most banks. Private banking services targets retaining the customers, when it should be focusing on training the right individuls for the job.

Private Banking in India:
According to an article published in April’18 by a popular daily, ICICI Bank, HDFC Bank and Axis Bank are India’s top private banks in which the majority of investments are undertaken by foreign investors even though management control is with Indians.

Top 6 Safe Investment Options in India

Boiling long-term wealth is a mammoth task. Saving money and investing it wisely requires a lot of research, not to mention the availability of sufficient funds. Most people prefer to build their wealth the traditional way by investing in safe options that guarantee returns with minimum risks, which is why they prefer safe investments options.

What is a Safe Investment?
Safe investments are those that involve minimal risks. It is always tempting to look for investment vehicles that promise ‘higher returns’, however, one must have the risk appetite for that as well. Safe investments are ideal for investors who know that money is saved for long-term and will gain slow but sure returns.

We curated a list of top best investment options in India where you can find one suited for your needs:

1) Public Provident Fund(PPF):
If your company/business does not offer you the protection of provident fund, it is a good idea to open a PPF account. You can invest anything from Rs.500 to Rs.1,50, 000 in a financial year. Keep in mind that the PPF accounts comes with a lock in period of 15 years and you can withdraw money only after the 8th year. As per the new Government mandate, the rate of interest in PPF accounts changes every quarter.

2) Sukanya Samriddhi Yojana:
If you’ve dreamed of gifting your daughter with an opportunity to excel in life, the Sunkanya Samriddhi Yojana is a plan that helps you build a corpus for your daughter’s education. The account is easily accessible at the nearest post office and commercial banks. You can invest as less as Rs. 1000 in a year and the maximum period of investment is 21 years.

3) Post office schemes:
Post office schemes are one of the best investment options in India, ideally suited for investors looking for safe and long-term investments. The monthly fixed income for this investment is parked at the rate of 8.5% per annum. The minimum investment amount is Rs. 1500 and maximum can go up to Rs.4.5 lakhs.

4) Mutual Funds:
Mutual funds are considered as one of the best investment plans to gain higher returns from a long-term perspective. Mutual funds act as a common pool of money where multiple investors invest in bonds, equities and other money market instruments. Debt mutual funds are a good option as they park the money in government bonds and securities, commercial papers, etc. which naturally make them safe.

5) Initial Public Offerings:
IPOs are the types of offerings by newly launched companies where they invite public to buy their shares without listing on the stock exchange. Initially, companies issue the shares at low cost, but once they get listed on the stock exchange, the prices go up high.

6) Investments in Gold:
Investments in gold are the evergreen investment products. The government of India issues Sovereign Gold Bonds that is an alternative to holding physical gold bonds. Gold bonds offer transparency and are ideal for small investments. These securities, unlike physical gold, do not entail storage costs.

Top 5 best digital wallets in India

When Demonetization shook India in 2016, the country was forced to fall back on options that enabled cash-less transactions. Doing anything without cash, whether it was buying rations of food, paying electricity bills or phone and dth recharge became a hassle. The unavailability of cash in banks and ATMs caused some inconvenience, but forced the country to wake up to the digital age of mobile banking. The digital wallet industry, which focused on larger cities, saw new subscribers even in the tiny hamlets of India, thus contributing to the birth of digital India in the real sense of the term. 

What is a digital wallet?
A digital wallet is an online service that allows an individual to make electronic transactions. You can directly transfer money from your bank account to your e-wallet and forget the hassle of carrying your debit-card or physical cash as most merchants have provisions for payments via e-wallets. One can buy groceries, do online DTH recharge, or even book flight tickets through these wallets. All you need to do is download the app of the digital wallet of your choice from the app store and load it with as much money as your require.

Freecharge: Launched in 2010, Freecharge gained momentum in the post demonetization era in India. Freecharge is one of fastest growing online payments platform today, thanks to its fantastic cashback offers, ranging from 10-25% per transaction, thus allowing you to save a lot of money.

Paytm: One of the most popular e-wallets in India, Paytm is perhaps the most widely used e-wallet. Paytm services are used by the biggest shopping malls and even small vegetable vendors, and local grocery shops. Furthermore, you can use PayTM to pay your electricity bill and phone bills. Online DTH recharge and phone recharge is also possible with Paytm. The company is known for offering good discounts and great cashback offers.

Mobikwik: Regarded as the pioneer of the e-wallet industry in India, Mobikwik made its debut in 2009, but was quickly overtaken by the likes of Freecharge and Paytm that entered the market in 2010. Mobikwik today is known for its great cashback offers. It is also tied up with several e-commerce companies and offers additional discounts on online purchases of food, apparel and bill payments.

PayZapp by HDFC: Although PayZapp by HDFC Bank entered the market as late as in 2015, it has captured the attention of the smart, digital age spender. Despite being a product of HDFC Bank, PayZapp can be downloaded by everyone. The wallet offers great discounts + cashback on everything from dth recharge offers to offers on restaurants, taxi services, bill payments and so on. 

Chillr: Another app launched by HDFC Bank, the Chillr e-wallet has tied up with over 50 banks across India and is known for providing multi-bank connectivity. You can manage all you bank account with this single digital wallet and continue to make purchases and payments through it.