5 smart ways to repay education loans

When it comes to building a bright and prosperous future, nothing can replace quality education. However, there is a rise in the cost of education in India and abroad. That has propelled parents to opt for education loan. These loans are given to meritorious students so that nothing hampers their educational progress and they receive the best of education from institutes in India and abroad.
At the moment, almost every bank and NBFC offer the educational loans. It covers a wide range of curriculum from graduate, postgraduate, professional and doctoral degrees. An education loan in India covers not just the fees but also other aspects such as tuition fees, examination fees, associated expenses such as uniform, lab equipment, travelling expenses and laptop.

Some of the basic facts that people should be aware with regards to an education loan for Indian student are:

1) An education loan can be obtained by anyone who wants to study graduation, post-graduation, professional or degree courses
2) The loan cannot be given to the student alone, one of the parents should be a co-signor
3) Female students are offered lower interest rate or discount on education loan
4) The annual family income and the course pursued by the student are the primary determinants for education loan
5) Education loans worth INR 4 lakh do not require a guarantor
6) Education loan amount that is above INR 7.5 lakh does not need a collateral/security 
7) The amount cap for students studying in India is INR 10-15 lakh and INR 20 lakh for students studying abroad
8) The education loan repayment tenure is between 5 to 7 years

How can you smartly repay an education loan in India? 

Generally, you begin repaying education loans after they are disbursed. Some of the easy and smart ways to repay the education loan are:

1) Interest amount repayment: You can start paying interest amount while studying. The interest rate is simple and does not burden you. Gradually, the bank will apply 1 per cent interest subsidy.

2) Tenure extension: Although the loan tenure is between 5 to 7 years, you can get it extended if you are facing a financial crunch. Consequently, your tenure will increase to 10-15 years and the EMI reduces. However, you will have to assure the bank that you will receive a secured job and will be capable of paying the loan off after the completion of your course. 

3) Moratorium period extension: An education loan for Indian student goes easy as you can extend the moratorium period (waiting period) to additional six months from 1 year. You will have to convince the bank that you do not have a proper job in place presently. This will better your credit history.

4) Top-up loan: If you wish to study further, you can go for a top-up loan. This will delay your repayment. However, be prepared to pay a hefty interest amount later.

5) Help from employer: While hiring you in the organisation, some company’s pay off a lump sum amount of your student loan. They, nevertheless, come with their disadvantages such as lower salary and other employment terms.

An education loan in India requires you to keep your bank informed about any financial constraints you face. If you do not do so, your credit score will take a backseat.

What is savings account? How to open one?

One of the most common types of bank account that all of us use on a day to day basis is a savings account. It involves basic kind of transactions such as depositing money, safeguarding money and withdrawing funds. Savings account generally pay interest to your deposits, which is lower. However, there are some savings accounts that pay a higher interest rate that allows you to grow your money quickly.

Why do you require savings account?

It is wise to have a savings account because where else will you save your hard-earned money? It is also unsafe to keep hard cash on loose. There is also a psychological benefit of having a savings account. By owning one, you can save the money for achieving your future goals. Today, banks assist you in having one by enabling customers to get an online saving account opened. This way you not just save time and effort but also secure the money sitting home.
Some other benefits of having an online saving account opened are:

1) Safety: Cash kept at home can get easily stolen or damaged by unforeseen circumstances. Savings account holds your money safely and allows you to withdraw cash once you are ready to spend. However, there are restrictions on outgoing transfers. Nevertheless, you can make unlimited withdrawals at an ATM or bank branch.

2) Steady growth: Savings account generally pay interest on your amount. There is a tendency the bank may make small additions to your account to keep up with the economic standard or compete with other banks.

How to go about getting an online saving account opened?

1) Almost every bank offers the same kind of savings account with some variations here and there. So, your first step is selecting a reputed bank by doing comparative analysis.

2) Once you have done your study, keep the following information of yours ready and add those in the application form:
- Full name
- Date of birth
- Residence address
- Transfer information for initial deposit
- Tax identification number
- PAN card

3) Choose the kind of account you wish to open: individual or joint. If you choose a joint one, you will have to add your family member/spouse’s details as well. Research about joint account before opening one.

4) Once you get an online saving account opened, you also have the choice of mentioning a family member who can access the account, in the event of your death.

5) You will then have to make an initial transfer either through wire mode or cheque deposit.

6) You can then create a login id and password for your account. Try to opt for a long password that has a mix of letters, special characters and numbers.
Before opening a saving account online, ensure the bank has easy access to mobile and website. This way you can electronically access your account on the go.

5 best UPI payment apps in India

Online payments have taken over the hard cash. Digital revolution has gripped India, and more and more service providers are thronging to this medium. The banking industry is at the forefront, and Unified Payment Interface (UPI) is one such payment transfer mode widely used by smartphone users. It is also backed by the Indian government and Reserve Bank of India (RBI).

What is UPI?

It is a fund transfer system that is used via the banks' mobile app. One of biggest advantages of this method is that you need not add your bank details. This way your financial data is safe and secure. All you require is the virtual payment address (VPA) that is similar to an email address. Other commonly accepted fund transfer mediums are NEFT, RTGS and IMPS. However, UPI stands out for its instant transfer of money.

Following are the best UPI payment apps used in India extensively:

1) Axis Pay: It has the cleanest interface amongst all the UPI apps. There are only two options you can find on the home screen of the app: one for sending and other for requesting money. Other options can be accessed by swiping left. You can secure the app with a 6-digit unique code. The Axis Pay provides a seamless experience which makes it user-friendly. Unlike other apps, you need to add the contact of the payee in the app for sending money. Moreover, Axis Pay also gives you the option of QR code.

2) SBI Pay: The app is easy to use and boasts of the simplest interface. The transaction can be done in merely 3-4 steps which makes it user-friendly as well. The main options of the app are available on the screen, and a single swipe to the left can help you access the other options. It carries all critical UPI services in it such as send and request money, balance inquiry, set/change UPI PIN, etc.

3) PhonePe App: The app is a UPI cum mobile wallet. It comprises of all UPI as well as digital app features. PhonePe is one of the nicest looking apps concerning interface. It also contains all the must-have features with additional options such as recharging and paying utility, phone bills, etc. It is also compatible on slow-speed data. Also, the app is available in the following languages like Hindi, Marathi, Bengali, English, etc.

4) HDFC Bank BHIM/UPI: Now transferring funds has become faster and hassle-free. With the help of your unique BHIM/UPI ID, you can transact through your mobile banking app. All you need to do is log in to your HDFC banking app, enter your customer ID and password, click on Account option and create a BHIM/UPI ID such as mobilenumber@hdfcbank, etc. You can transfer fund via your banking app by adding the BHIM/UPI details of the beneficiary, the amount and description. Plus, it has the smoothest interface.

5) Google Tez App: Although a late entrant, it made early inroads among the mass. The USP of the app is the Reward program. The interface is simple and is powered by Google with 4 stars. It also has a ‘Cash Mode’ feature. Through this factor, you can transfer money quickly to a person near you as it requires no details of the payee.

The above-mentioned UPI payment app are best used at the time of emergencies, especially for uncalled medical expenses.

Different kinds of credit and debit cards

With the advance in technology, the banking industry has evolved as well over the years. Who knew we would not have to carry hard cash anymore and a plastic card would suffice for all kinds of transactions. Indian banks and financial institutions offer various kind of cards that are custom-made for all your need and requirements.

These bank cards are divided into debit cards, credit card, ATM card and charge card. With the help of such cards, you can carry out many financial transactions such as depositing money, withdrawal of cash, transferring of funds, etc. All this can be done without standing in long queues. Same is the case with net and mobile banking.

Of these, debit and credit card have their variations:

Credit card:

You can purchase goods and services on credit, the money for which you have to pay at the end of the month. You can either choose to pay the full amount or a minimum fixed amount by the end of the month. Remember, if you pay a minimum amount, you will be charged interest on your outstanding dues. These cards function exactly like a loan. There are 15 types of credit bank cards. Let us learn about some of the important ones:

1) Business credit cards: The card is used to obtain funds instantly to run the business. They are also known as corporate credit cards. Some of the benefits a business credit card offers are insurance, business saving plans, lucrative travel, etc.

2) Balance transfer credit cards: It allows the credit card owners to transfer funds from one card to another. If you are facing a huge backlog, you can use this kind of bank cards.

3) Credit card for women: With women etching their mark in businesses as well, banks have started offering credit cards for them. The main focus of such bank cards is shopping rewards, cashback, etc. The card also offers insurance, surcharge waiver, etc.

4) Credit card for online shopping: If you are a shopaholic, then this card is ideal for you. It offers plenty of online shopping benefits such as e-voucher, discounts and option of shopping on EMI.

5) Classic credit cards: The main features of this card are global acceptance, interest-free credit period, card lost insurance and dedicated customer support.

6) Prepaid credit card: It is further divided into forex card and domestic currency. Prepaid cards are similar to debit cards. The issues such as clearance of dues are minimal under this card.

Debit cards:
Indian banks nowadays offer ATM cum debit cards that are associated with VISA or MasterCard. A debit card acts as a bearer cheque that is debited from your account immediately whenever you swipe the card at a retail merchant. Following are the kinds of debit bank cards offered:

1) VISA debit cards: They are issued in association with VISA payment services and can be used at all VISA online merchants.

2) VISA electron debit cards: These bank cards are similar to VISA debit cards. However, they do not carry the overdraft feature.

3) MasterCard debit cards: It can be used worldwide, especially for online transactions through the MasterCard SecureCode platform


4) Maestro debit cards: Maestro is an international debit card service from MasterCard. It is a popular debit card adopted at over 13 million locations. You can easily acquire funds from international ATMs and online resources with the help of Maestro.

6 advantages of cashless payment solutions

Introduction of demonetisation called for the urgency of transferring funds. Whether you are comfortable or no, online payment has become part of everyone’s life since. As a part of ‘Digital India’ campaign, the Indian government are constantly upgrading the way a consumer can transact. Mobile payment app is one such medium.

What do these mobile payment apps do?

Also known as a digital wallet, a mobile payment app is similar to a bank account where you load money and conduct transactions as and when required. Unlike bank accounts, these online payment solutions do not offer any interest. You can transfer funds with ease.

The other payment modes include SMS and NFC payment. However, it is the mobile payment mode that has widely gained recognition. Following are the benefits offered by digital wallets:

1) Accessibility: The payment process has become simple and less complicated. You can transact anywhere, anytime with the help of a secure data connection on your smartphone. Customers can purchase products from around the country without swiping the card or paying hard cash. This has simplified the online shopping experience as well.

2) Easy load of money: With the help of credit, debit or net banking, you can add money to your mobile payment app. It is also safe as details need to be entered only once. When you have to reload the amount, there is no need to re-enter the bank details.

3) Varied usage: Right from recharge of your smartphone to DTH to paying utility bills, all can be done via these digital wallets. The reach of digital wallet has gone far and wide as you can also purchase groceries from the Kirana shop today.

4) Spilt bill facility: Just like we split the bill with friends at a restaurant, you can split the bill in a digital wallet as well. This feature is particularly useful for those staying as paying-guest or in a rented apartment. You can divide the bill by merely entering the amount and the number of people who are expected to pay the share.

5) Timely payment: The online payment solutions come with auto pay facility as well. In case you miss the payment date, the app automatically debits the amount from your account.

6) Incentives: Digital wallets also go light on your pocket. These apps run various cashback offers, deals, discounts, etc. that reduce the bill amount at the time of payment. Ensure to make optimum use of the promo codes in the offer section.

Mobile payment app benefits both customers as well as businesses. Precisely why even banks are introducing their apps. They have also started targeting smartwatch users by launching banking apps like Wear.

All you need to know about FASTag – the electronic toll collection system

Driving on the highway or moving from one district to another is not as hunky-dory as we all imagine it to be. You have to face a herculean task called the ‘toll plaza' to proceed to your destination. Paying toll has its set of challenges. The receiver will not have cash handy, or the cashier and receiver might indulge in a tiff. For solving these minute issues, the National Highway Authority of India (NHAI) launched FASTag in 2016.

What is NHAI’s electronic toll collection system FASTag all about? 

FASTag is a radio-frequency identification (RFID) card that can be availed through banks, authorised dealers and common centres near the toll plaza. These are affixed on the front screen of your vehicle. It is a pre-paid card through which users can pay toll. You can load around INR 100 to up to INR 1 lakh amount in the card. For every toll transaction, users receive an SMS alert. The card comes with 5 years validity period. Users can reload the card as per their requirement. In fact, the NHAI has introduced FASTag lanes in 370 toll centres across India.

Some of the benefits of using FASTag include:

1) Saves times, especially while paying highway toll, when you are heading to or returning from a holiday. It is a cashless transaction.
2) Cashless transaction means faster movement of vehicles. Less waiting time also means lower fuel cost.
3) One of the best advantages of FASTag is that it can be recharged through credit/debit/net banking. You can also reload the card via NEFT/RTGS payment methods.
4) You can obtain a periodic statement of your account on the issuer’s website once registered for the card.

Documents required for FASTag:

To get the account created, you have to visit the toll centre. You can also call on the issuer's customer care number to get the account done. Some of the documents you need to carry for creating an account in the electronic toll collection system are:

1) Vehicle’s registered certificate
2) Your passport sized photograph
3) Your KYC documents
4) ID and address proof
5) PAN and Aadhaar card
6) Voter ID
7) Passport

Note: A single FASTag can be used for multiple cars. In case of transfer, inform the issuer.

The NHAI have also launched mobile applications My FASTag and FASTag Partner for Android and iOS users in 2017. This has further eased the process as users can pay toll or recharge their FASTag accounts at the click of the button.

What is car loan EMI calculator? Its features and benefits

Having a car has become a necessity today. Investing your entire money in one go for a vehicle is not possible, especially for someone who falls under low-level to mid-level income range. In such cases, many opt for car loans. Affording a car loan is easy as minimal documentation is required. Car loans are applied only to purchase a vehicle. They generally come with shorter tenure in comparison to a home or business loan. The loan amount is also smaller than the other investments.

What is a car loan EMI calculator?

One of the best ways to decide on a suitable car loan amount is the car loan EMI calculator. This way your monthly finances are well managed as you can plan out your EMIs. An applicant can find this tool on their banks' website, financial and third-party loan comparing websites.

Determinants included in EMI calculator for car loan:

1) Principal amount: It is one of the crucial aspects while calculating your monthly EMI. If the amount is high, your EMI will also increase. Have a fixed budget in mind before applying for the loan.

2) Tenure: The tenure for car loans are anywhere between 1-7 years. If you choose a longer tenure, your monthly payment would be reduced. That will, in turn, increase the interest rate. Go for a balanced scheme that suits your requirements.

3) The rate of Interest: Unlike home loans, car loans have a fixed interest rate. The market fluctuations will not affect the interest rate throughout the tenure. Choose a loan with lower interest rate, which will in the process keep your EMI under check.

Benefits of using car loan EMI calculator:

1) It assists you in finding a scheme that is affordable and falls under your budget

2) An EMI calculator for car loan shows you a comprehensive view of the repayment of the loan. By opting for iconographic, which include pie chart or a table, the calculator displays the proportion of interest rate, principal amount, and the processing fee you will have to repay

Features of EMI calculator for car loan:

1) You achieve quick results by entering the determinants. Also, you can check EMIs for multiple car loans. This way you can receive the data with ease.
2) You receive the value of all above factors without any errors. Hence, it is entirely reliable.
3) You can enter the details as many times as possible. You can check the EMI with as many variations you want.
4) You can also conduct a comparative study as you are allowed to include multiple variations.
5) The interest rate on car loans plays an important role, especially when it comes to EMIs. The interest rate percentage might not be high when offered by banks and financial institutions. When it is calculated in the EMI tool, the value turns out to be massive. For these reasons, the EMI calculator comes in handy, especially for the first-time users.