6 tips before applying for an education loan

Securing a degree from a premier institution is a dream for many students. Earlier, children coming from the lower segment were unable to fulfil their aspirations as they faced financial restrains. Nowadays, students can take a loan from the bank and secure their dreams. This kind of loans are called as education loans.

Students avail an education loan to pursue their higher education from a reputed institution of their choice. However, before approaching a bank for acquiring the loan, there are some points to remember:

1) Evaluate expenses: One of the critical factors before applying for an education loan is to gauge the costs involved such as the value of the course, availability of financial aid, contribution of family members, etc. Also, check out for deals from the banks. Draw comparisons between different banks and then apply for the loan.

2) Check for financial aids: Ensure you have the necessary financial documents such as scholarship, grants, etc. in place. These provide enough financial support and need not be paid, unlike education loans. It is advisable to take up mortgages when you face a financial crunch.

3) Check for options: Certain banks and financial institutions are associated with some colleges and courses that they provide an education loan for. In case the lender does not have the desired college, you can check for other options.


4) Need for a security/collateral: Students are the primary borrowers. However, banks ask for co-signor. They could be one of your parent’s or your guardian. If you are married, your spouse can act as a co-signer. If the loan amount is high, you will have to provide collateral in the form of fixed deposits, etc.

5) Choose an appropriate tenure: Some borrowers take a loan with longer tenure because of lower EMIs. However, that increases the interest rates. If you believe there are chances of better job prospects after the conclusion of your course, you may opt for shorter tenure. This way the loan will be less expensive, and you can repay them quickly.

6) Make payments during and after the course: This factor comes into picture especially if wish to study abroad. Generally, such students work for a living and earn in dollar or pounds. It will help you to repay the loan amount instantly at the same time it will add up to your work experience. It could also decrease your interest rate.

The education loan procedure is simple and convenient. Following is the eligibility factor:

1) You should be an Indian national.
2) You should have secured admission to a diploma/post-graduate course in India or overseas.
3) You should be within the age bracket of 16 to 40 years.
4) You can avail a loan amount of INR 10 lakh for studying in India. If you study abroad, the loan amount can go up to INR 20 lakh.

The society we live in values education and consider it to be a matter of pride. While an education loan can be the ticket to your dream college, it is better to get your facts right and then enrol for the right one.

5 best gold loans India

Whenever we are in dire need of money, we resort to investments. If you have a decent credit score and know can repay the amount on time, then there is no better investment than personal loans. From absolute transparency with the policy to flexibility in returns, personal loans are easily the best type of loan there is. However, when it comes to gold loans and loan against property, you get a further advantage.

They come with longer tenures as you provide either gold or property as a security. Many opt for these loans than the unsecured ones. Banks and other financial organisations provide gold loan. They can be in any form – gold bar, gold jewellery, etc. The lender can auction your gold if you do not repay the loan amount on time.

Some of the salient features of a gold loan are:

1) Since it is a secured loan, the processing time is sometimes less than an hour or maximum 3 hours
2) No salary proof needs to be provided while enrolling for one
3) Documents such as Voters ID and PAN card would suffice while availing the loan

Several public/private sector banks and non-banking financial company have the right kind of gold loan to woo their customers. We have jotted some of the best gold loan offered in India:

1) HDFC Gold Loan: For immediate fulfilment of personal or business requirements, a gold loan is an ideal solution. HDFC’s gold loan has a hassle-free procedure in place and provides secure storage. They disburse the loan in 45 minutes and offer flexible interest rates.

2) Muthoot Finance Gold Loan: Their portfolio is the largest in India as well as across the globe. Over 2 lakh people avail Muthoot Finance service per day. Within minutes Muthoot Finance generates gold loan for quick funding purpose. They also have in-house gold valuation process before disbursing the loan.

3) SBI Gold Loan: You can acquire SBI’s gold loan by pledging any gold including coins. They provide competitive interest rates and require minimal documentation. Any individual who is 21 years or above can apply for SBI’s gold loan. The loan repayment tenure is 36 months.

4) Manappuram Finance Gold Loan: The kind of power that gold loans provide, you do not require personal or business loans. Manappuram processes the loan within minutes and requires only government-issued identity proofs. Customers can choose from a range of schemes to meet their requirements.

5) Axis Bank Gold Loan: One of the best features of Axis Bank's gold loan is that consumers get to choose their tenure. They process the loan in a day’s time and charge no extra expenses for foreclosure.

Gold loans are affordable in comparison to personal loans. If you require immediate funds, a gold loan will be your best ally. They are processed quickly and are the most reliable loan in the market today.

What are car loans? 5 tips for first-time buyers

Earlier, owning a car fell under the luxury category. Today, it has become more of a necessity. You need a car to avoid the crowd that throng on local transports. You require a vehicle to go on long weekend drive/trip with your family. And if you do not have enough expenses to meet the above requirements, you can always go for a car loan.

What are car loans?

It is a personal loan that allows the potential user to purchase a car of their choice by paying monthly instalments. However, if the borrower fails to make timely payments, the lender can take away the vehicle until the debt is paid off. For first-timers, it is always difficult to make a choice. Therefore, thorough research and planned budget plays a crucial role while purchasing a car.

Apart from the mentioned points, there are specific tips before applying for car finance: 

1) Have a fixed budget: ‘Can I repay the amount?’,
‘Do I have enough credit score to make timely monthly instalments?’ If your answer is ‘yes’ for the above questions, then go for the car loan. Know your repayment capacity. Also, do not opt for a higher mortgage just because you are eligible for one.

2) Stick to a particular lender: Multiple applications can bring down your credit score. It will show you as a credit hungry borrower. This, in turn, increases the chances of your application getting rejected.

3) Compare loan options: You can acquire car loans online as well. That gives you the privilege to compare various schemes. You can check the interest rates offered by different banks and opt for the one that fits your bill.

4) Make a right down payment: This is the part that first-time car loan buyers have to be careful about. Pay an initial loan down payment that minuses a part of your overall loan amount. It will reduce your total interest payouts at a later stage as well.

5) Choose an appropriate tenure: Lastly, go for a mandate that is within your reach. Shorter tenure usually an ideal solution. Longer tenure leads to higher interest rates over the duration of the loan.

Are your eligible to opt for car finance?

The criterions might vary lender to lender. However, you will have to fulfil the following car loan eligibility rules:

1) You should be a resident of your current area for a year
2) You should fall within the age range of 18 to 75 years
3) You should receive a monthly income of INR 10,000
4) You can be a salaried or self-employed individual
5) You should be employed with/run your current organisation/business for at least 3 years

You can avail the best car loan from top banks such as HDFC, Axis Bank, SBI, ICICI Bank, Dena Bank and Andhra Bank.

Business loans for women: Eligibility criteria and various schemes

Venturing or starting a business is not a new concept in India. In fact, a range of services is offered for start-ups. Even though you spend all your capital in your new business, money is required for other purposes as well such as expanding operations of smaller firms, purchasing machinery and equipment, repayment of other loans, turnaround of an ineffective business, etc.

We live in a generation of start-ups and women are leading the pack as well. There are numerous business options for women such as launching a fashion boutique, education classes, tours & travels, beauty clinics, etc. For this very purpose, certain banks provide business loans for women. Some of the schemes available are:

1) Cent Kalyani by Central Bank of India: The objective of this scheme is to encourage women entrepreneurs to take up more new projects or expand their existing business. At present, the options to take under Cent Kalyani include overdraft/cash credit and lower term loans.

2) Shree Shakti scheme by State Bank of India: The SBI aims at supporting business women by offering certain concessions. To avail this loan, women have to hold 50 per cent of an enterprises’ capital.

3) Synd Mahila Shakti from Syndicate Bank: With regards to financial empowerment of women, the Syndicate Bank launched Synd Mahila Shakti. It offers credit facilities to those women who do not earn regular income from their business. The loan is available for short term up to 10 years or as cash credit to meet the day-to-day business requirements.

4) Shakti Scheme from DENA Bank: Under this scheme, the following activities are covered:

- Agriculture and allied operations
- Small enterprises
- Retail trade
- Microcredit
- Education
- Housing
The maximum loan term might differ from business behaviour and action.

5) Udyogini Scheme by Punjab & Sind Bank: This scheme caters to women who are involved in business activities such as tiny SSI sector, business enterprises, retail traders, professional and self-employed women, etc. The scheme requires one or more women to share capital of at least 51 per cent.
Banks like HDFC bank provide small business loans to every budding entrepreneur including women who have an established company but require a slight nudge.

Business loan eligibility criteria for women:

When women apply for business loans, the rules differ from that of businessmen.

1) Age: Should be between the age group of 18 to 60 years 
2) Ownership share: Should have 50-51 per cent of the capital share
3) Loan amount: Can apply for a loan amount anywhere between INR 50,000 up to INR 5 crore
4) Loan term: This varies from bank to bank.
However, it generally last between 1 to 10 years

Women do everything on their own and are very strong-willed when it comes to proving a point to the society. Banks above have understood the needs of women entrepreneurs. One can expect more renowned banks to come forward and provide further provisions through their business loans scheme.

All you need to about PPF account

Every month we have a certain amount of income left out. Everyone follows some or the investment option to save the balance amount. Apart from keeping it as cash or depositing in the savings account, others prefer investing in a manner that provides them returns to increase their wealth. There are avenues such as fixed deposit, mutual fund, etc. Another such investment option is Public Provident Fund. 

What is Public Provident Fund?

It is a tax saving instrument launched by the Indian government. The Public Provident Fund Act of 1968 governs the PPF scheme. Any deposit made on PPF can be claimed as a deduction and the interest on these are tax-free. The objectives of PPF schemes are to cultivate saving habit be it small or big. It also aims to secure the future of the individual post-retirement by saving a lump sum amount.

You can open a PPF account at the post office or public/private sector banks. Some benefits of holding a PPF account is:

1) There is no major fluctuation in interest rate
2) Investment, interest earned, and maturity proceeds are non-taxable
3) You can make pre-mature withdrawals after 7 years. In case of emergencies, banks allow pre-mature withdrawals before the 7-year period

Who can hold a PPF account?

1) Anyone who is a resident of India can have a PPF account
2) You can be a salaried, self-employed or belong to any other category to own a PPF account
3) For minors, either of the parent’s can open a PPF account
4) PPF account to Hindu Undivided Families has been stopped since 2005
5) NRIs are not entitled to a PPF account as they do not reside in India
6) A person can manage only one account. Holding multiple accounts is prohibited. Also, opening joint PPF account is not allowed.
7) Grandparents cannot open a PPF account for their minor grandchild. Similarly, both parents cannot open different accounts under the name of the same minor.

What documents are required to create a PPF account?

1) PPF account form that can be obtained from the bank branch or online
2) ID proofs such as PAN card, Aadhaar, passport, Voter’s ID, etc.
3) Address proof such as ration card, etc.
4) Your photograph
5) Nomination form

How to apply for a PPF account?

You can create a PPF account by either visiting the post office or online. Let’s understand it in detail:

1) Post office: Carry the application form along with other supporting documents to open a PPF account. An initial deposit of INR 100 has to be made to the account.
2) Online: You can visit the banks' website and open an account. You can save time and effort by opening a PPF account online. It comes with additional benefits such as checking statements, transacting funds and linking other savings accounts.

What are the features of a PPF account?

1) The PPF investment account is a 15-year product and comes with lock-in period of 16 years.
2) You must hold investment of minimum INR 500 per annum. However, the maximum investment limit is INR 1.5 lakh. The deposit can be made monthly or annually.
3) Earlier, the government had a fixed rate of interest for the tenure of the account. Now, the RBI guidelines say new interest rates will be announced quarterly.
4) You can also apply for a loan against PPF during the 3rd and 6th year. However, these loans can be availed on 25 per cent of the balance in your account.
5) As mentioned, it is necessary to invest INR 500 every year. If you fail to do so, your account will be discontinued. Also, you will have to pay a penalty of INR 50 and subscription outstanding of INR 500 annually to regularise your account.

7 facts about NRE accounts

You cracked the job abroad; your visas are done, and the remaining preparations are on. Before you board the flight and bid adieu to your family, have you thought about how you are going to manage your funds in India? Have you made arrangements as to how your loved ones can access those funds in your absence?

Some of the appointment letters provide the time frame as to when you will receive an NRI status. Whether you are or not an NRI, you can create an account in the bank. Banks call you ‘First Time Travellers’ and assist you in opening an NRI account.

Types of NRI accounts:

According to Foreign Exchange Management Act (FEMA) guidelines, it is illegal for NRIs to hold savings account in India. To manage their funds in a secured place, banks offer the provision of NRO and NRE account. By owning these accounts, NRIs can send the money they earn overseas to their family and can retain their assets from India in the residing country.

What is an NRE account?

The NRIs can hold Indian currency investments such as savings, current, recurring and fixed deposits in this account. Your foreign currency gets converted into INR while depositing in an NRE account. The account is tax-free as well.

Also, transferring money from the overseas country to India is free. Another benefit is that mutual funds get instant and easier if NRE account number is linked. NRIs also have the liberty to conduct financial transactions on the banks portal. If you open NRE account online, you can get the operations done on the go.

Points to remember before opening an NRE account:

1) The account should be maintained in Indian denomination
2) You can have a joint NRE account only if both the members are NRIs
3) NRE accounts can be opened as savings or current account. The average monthly balance to be maintained in the account should be around INR 75,000
4) Interest rates offered NRE account differs from that of NRO account. Currently, banks are offering similar rates on both the accounts
5) Exchange rate fluctuations can result in loss of currency. With that in mind, NRE accounts are open to two kinds of loss: daily volatility in the form of rupees and conversion loss.
6) An NRI’s primary concern is fund transfer. Through an NRE account, NRIs can not only transfer money to one NRO account but to n NRO accounts.
7) Income earned in a foreign country can be deposited in NRE account. Withdrawals are, however, made in INR.

Before you head overseas, open NRE account online and add a mandate holder who can handle your financial dealings while you are away. Once you start earning in dollars, you can remit the amount in your NRE account. If you handle these basics, you can head to your destination with no pressure.

Bank accounts and its types

With technology constantly improving, banks are offering custom-made services to the customer based on their needs and budget. These are in the form of different accounts, bonds, debentures, investment schemes, etc. Such products vary as per the user’s age, income and gender. Not just that, there are services offered to non-resident Indian (NRI) as well.

Let us learn in detail about the different bank account offered in India:

1) Senior Citizen Savings Bank Account: As the name suggests, it caters to customers who are over 60 years old. You can make pre-mature withdrawals here. However, a minimum penalty is levied. Regular interest is paid on the account. The account mainly focuses on fulfilling the needs of senior investors such as guaranteed returns, capital safety, etc.

2) Women Savings Account: Women are increasingly having a say in the businesses nowadays. Some run their show in the form of boutiques/business such as travel, beauty, etc. Such bank account is offered by private banks and provides several benefits such as internet banking, online bill payment, insurance cover, child account, etc. Besides, they also offer shopping and entertainment benefits.

3) Basic savings account: Everyone owns such an account today. An average quarterly balance needs to be maintained in such accounts. If a minimum balance is not found in these accounts, a penalty is charged by the banks. They come with features such as passbook, net banking, chequebook, debit cards, etc.

4) Student savings account: It handles all the financial transactions of the students. This account is particularly useful for those who are away from their family and need to manage their expenses. Only a few banks offer this service. No minimum balance needs to be maintained.

5) Current account: Another very commonly used bank account, especially useful for those who run businesses. Such account can be opened in public/private banks. Such accounts are ideal to carry day to day businesses.

6) Salary account: They are nothing but a type of savings account. Bank offers more benefits to those owning a salary account because it is the most used investment tool today. Every month a fixed amount of income is transferred to the account.

7) NRE savings account: Such kind of bank account caters to NRIs. In these accounts, rupee denominations can be maintained. The account can be run individually or jointly, provided all the account holders are from India.

8) NRO savings account: This also allows rupee denomination and are generally in the form of current, savings, recurring or fixed deposit. It can be in the name of the individual or joint account. It can be managed jointly by people residing outside India as well. You have the liberty to transfer money from an NRO account to any other account.

The banking industry is incorporating all technologies and methods into their scheme of the affair to make financial transactions smoother for users. With the trend of smartphones and online banking in the rise, you can also get an online bank account opened in a jiffy. All you have to do is get your bank customer ID and password in place for the same.