Best international credit cards in India

A credit card is a card, which can be swiped to make payments now, and the amount can be paid to the credit card company at a later date. Credit cards are a vastly popular way of making payments. With the increase in international travel, there is a massive demand in the country for an   international credit card.

An international credit card is a card that is accepted for payment at merchants all over the world. If the credit card is not an international card, it may get declined or may incur substantial charges for getting swiped in another country.   

For frequent travellers , taking an international credit card is very beneficial as they can swipe it whenever they travel without worrying about problems in payment. These world credit cards also enable swiping in foreign currency and repayment in Indian rupees.

These are some of the best international credit cards in India:

1. Standard Chartered Platinum Rewards Card:
This international credit card has meagre annual fees, which get waived off in case you meet the minimum threshold for transactions. The card offers 5 reward points for every INR 150 spent.       

2. HDFC World Master Card:
This world credit card has a renewal fee of INR 2,500, but that is waived off in the first year on hitting the minimum purchase requirements.   Annual fees for the next year are waived on crossing minimum purchases for the year. It offers 2 points for every INR 150 spent, and if more than INR 7,500 is paid in one cycle; you get 3 reward points.          

3. SBI Simply Click Credit Card:
This world credit card gives 5x points for online shopping with decided partners. These points can be redeemed online. 

4. ICICI Instant Platinum Credit Card:
This card is straightforward to get approved. I  t is the best option for people with low credit scores. However, you need to have an ICICI account to get this card.  

5. HDFC Infinia Credit Card:
This card is a super-premium card. It has benefits such as unlimited spending, complimentary lounge access at airports, tie up with Vistara airline, discounts at fine dining restaurants etc.     

6. SBI Signature Elite Credit Card:
This card charges minimal forex transaction charges. It is beneficial for someone frequently travelling abroad. The reward system is very generous.
The annual fee is INR 5,000.   

7. Citibank Platinum Credit Card:
There are no joining or annual fees for this card. You can earn 10 reward points for every INR 125 spent at  network retail stores and 1 point for money spent otherwise. 

5 mistakes to avoid while applying for gold loan

A gold loan is a favourite way of raising funds in India. In a   gold loan, gold ornaments are put up as collateral against the loan. These loans are short-term loans with flexible tenure. Most lenders require regular servicing of interest, and principal can be repaid at the end of the mandate. Depending upon the loan agreement, a loan against gold is given out.     

There are many takers for a gold loan in India . Since many people own gold, a credit against gold is a guaranteed way to raise money in case of needs. Banks  and Non-Banking Financial Companies (NBFC) both offer gold loans. 

There are a few important things to remember so that you avoid making mistakes while applying for a gold loan. These pointers make a lot of difference when it comes to repayment.

Following are 5 mistakes to avoid while applying for a gold loan:

1. Opting for a loan with the higher interest rate to get a higher loan amount:
One important term while applying for a gold loan is LTV Ratio or Loan to Value ratio. Most lenders follow an LTV of 65-75% while giving out a gold loan. This means 65-75% of the market value of the gold  is the loan amount disbursed. Some lenders may offer a higher LTV at higher interest rates. Be careful of such schemes from lenders, as the interest rate can be a burden.

2. Not knowing different charges such as interest rate, hidden charges:
The interest rate on a gold loan may come with terms and conditions. When applying for a gold loan, check all the terms and conditions. There may be hidden charges such as processing fees, penalties, prepayment charges, late payment charges. You can take a better decision about the gold loan once you know these charges.

3. Not checking the Repayment schedule:
Depending on the lender, the repayment schedule will change. Some lenders require interest to be paid monthly and the principal amount to be paid all at once. Some lenders take repayment in the form of EMI. Not checking the schedule will lead to problems if you can’t service the gold loan.

4. Checking the creditworthiness of the lender:
There may be many lenders offering gold loans, but before you apply for a loan against gold, it is better to check whether the lender is reputed in the market. During the loan tenure, your gold will be with the lender. This is why the lender should be trustworthy.

5. Checking the quality of gold needed to put up for the loan:
The quality of gold that each lender requires is different. Some give loans only for 22-c arat gold; some provide loans for 18-22 carat gold. 

Prepaid cards – Its types and benefits

Prepaid cards are cards that are pre-loaded with a particular sum. They ensure there is no hassle of carrying cash. These cards are popularly given to employees by companies to track their spends. Prepaid cards leave a trail of where the money was spent and also offer all the features of standard debit and credit cards.

Types of Prepaid cards:

1. Multicurrency Foreign Exchange Card:
A multicurrency foreign exchange card or forex card is a prepaid debit card. An amount is loaded on it, and whenever it is swiped, it works exactly like a debit card. It is possible to withdraw from an ATM using this prepaid card  and also swipe it at the point of sale machines. 

2. Gift Card:
These cards are used to gift people. They can be loaded up to a particular amount and then work just like a prepaid debit card. The gift card can be for a specific brand, or   a gift card containing cash for the person to use as he pleases. 

3. Food/Meal Voucher Card:
These meal cards have come to replace the traditional paper vouchers given out every month as food coupons. Having a meal card eliminates duplication and the effort to reconcile and collect reports. These prepaid cards efficiently provide   a list of transactions.

4. Corporate card for employees:
This prepaid card helps companies to credit reimbursements, allowances (for example fuel allowance) and other small expenses. Giving them out in the form of prepaid cards ensures there is a paper trail.

5. Travel allowance card:
For employees travelling for office related work, a prepaid debit card is the best option. This ensures there is a track on the amount the employee is spending and if additional funds are needed, they can be merely  be loaded to the card. 

6. Toll cards:
Toll cards are prepaid cards that help to minimise the time taken to cross a toll plaza. Banks offer them in partnership with the NPCI.  This card gets scanned, and the toll is deducted automatically.  

7. Medical benefit card:
These prepaid cards are designed explicitly for corporates to give medical reimbursements to their employees.   


Benefits of Prepaid cards:

1. Safe and secure:
Prepaid cards are inherently safe to use. It eliminates the need to carry cash. In case of theft, it can be easily blocked without causing much loss.

2. Paper trail:
Prepaid cards maintain an exhaustive report of transactions. It is easy to see where the money has been spent. It eliminates the need for supporting documents.

3. Chip-based security:
Most prepaid cards issued now have chip-based security. These encrypted technologies make it more secure.

4. Convenient to use:
They are also comfortable to swipe and use.

5 points to remember before applying for a personal loan

The requirement for funds can come up anytime, and getting a traditional loan can be time-consuming and cumbersome. That's why there are personal loans, which you can fall back on when you need funds. Today, it is straightforward to    apply for personal loan online. With speedy approvals and quick disbursement of funds, a personal loan is one of the best ways to get access to funds.  

What is a personal loan?

A personal loan is an unsecured loan. This means if you apply for personal loan, you do not have to mortgage any particular asset. Getting an online personal loan through various lenders is easy. Private loans do not have any restrictions on end use, which means the funds can be used for business expenses or personal expenses, or both. This makes a personal loan a very flexible loan instrument to raise funds.                  

Following are the five   points to remember before you   apply for a personal loan :  

1. Credit Score:
Personal loans are based on your credit score. If you want to   apply for a personal loan, it is recommended to call the lenders and find out rates. If you keep sending loan applications, the lenders request for your credit score, and such repeated requests for credit score adversely impact it. The higher your credit score, the better the chances of getting an  online personal loan.    

2. Personal finances or Repayment capacity:
Check your finances prior to applying for a personal loan. In case you are not able to repay a personal loan, it impacts your credit score. If you already have multiple EMIs currently going on, it is better to postpone the decision to    apply for a personal loan .     

If your finances are in place and can repay the loans on time, it is better to take a personal loan that serves your need. If you apply for a higher loan amount than what you need, it may cause problems while repayment, especially in case of emergencies.            

3. The rate of Interest and Loan Tenure: 
Different lenders have varying rates of interest on personal loans. If you possess good credit score and robust repayment capability, you can negotiate with the lender on these       parameters.       

4. Prepayment charges:
When you acquire a personal loan, check the prepayment and foreclosure charges. Every lender has these charges. That’s why, if you are planning to prepay your online personal loan, it is better to check these charges.

5. Check eligibility:
Each lender has different eligibility criteria with regards to minimum income, assets owned, whether a person is salaried or self-employed. These factors determine the loan amount sanctioned, interest rate and tenure. Before applying, check your eligibility and EMI through calculators.

Guide to get health insurance for women

Getting  health insurance is of critical importance in these times. Medical treatment costs are shooting up day by day. Getting quality treatment in any hospital can dent savings. A good health insurance plan ensures adequate and exhaustive coverage against different types of illnesses. Most of the plans also include some form of critical illness coverage. 

Women have health problems that are different from men. Women are more susceptible to different types of cancers, such as breast cancer, cervical cancer, uterine cancer etc. Women can also have other problems such as endometriosis, and other uterine problems, which require surgery. They are more susceptible to arthritis and have a risk of medical problems and complications during pregnancy.

As such, women need to buy health insurance that covers problems specific to women. What happens is, most women get covered under family floater policies, and those policies may not have specific coverage for health problems that women face. As a result, when it comes to claiming under the  health insurance plan, the medical treatment costs are disallowed.

Many insurance companies are now coming out with specific health insurance plans for women. These focus on giving proper coverage to medical costs related to women. Statistically, women live longer than men, and for most insurance companies, the premium for a woman is less than the premium on a similar policy for a man.

Here is a guide to get health insurance for women:

To get a comprehensive health insurance plan for women, it should take care of the following points:

1. The health insurance should cover critical illnesses as are included in a standard health insurance   policy.

2. It should cover specific cancers that women are diagnosed with,  i.e. breast cancer, cervical cancer, vaginal cancer, uterine cancer, ovarian cancer, fallopian tubes cancer.

3. It should cover maternity costs. Most families plan to have a child after marriage. Maternity costs are a significant expense that a family has to bear. A woman's health insurance policy should cover maternity costs, i.e  . hospitalisation costs, and expenses in case of emergencies during pregnancy.        

4. Ensure the coverage is adequate. Medical costs in case of hospitalisation can quickly go up to INR 5 lakh for treatment from a reputed private hospital. While buying a     health insurance policy, it is better to buy a plan which will provide adequate health cover even after 10-15 years of the plan.  
       
5. The health insurance plan should also cover daycare costs, for procedures that do not require hospitalisation  

6. Some health insurance plans also provide for free health check-ups. These health check-ups are exhaustive. It is beneficial and cost effective to pick a   health insurance plan that includes a comprehensive checkup.  

Recurring deposit and its benefits

A Recurring Deposit (RD) is one of the type of deposits where a fixed amount is invested every month for a   pre-decided period. The interest on the deposit is calculated monthly. If you invest in a recurring deposit, you can take advantage of the compounding effect. A recurring deposit is like a fixed deposit, where the same principle is spent every month. Each deposit plus the interest matures at the same time.        

The minimum tenure for a Recurring Deposit is 6 months. The maximum mandate is 10 years. The tenure increases in multiples of 3 months so that a   Recurring Deposit account can be opened for 6 months, 9 months, 12 months and so on till 10 years.  

The minimum investment amount starts from as low as INR 100 per month. The maximum investment goes up to INR 14,99,900 per month. You can open an RD with whatever amount you want to invest with, as long as it is within the investment limits.

An RD has other standard features of fixed deposit, such as nomination facility, renewal facility etc. You can also avail a loan against a recurring deposit.  Like a fixed deposit,  a recurring deposit account can be opened by resident individuals, Hindu undivided families (HUF), companies, trusts and societies. 

The benefits of a recurring deposit are:

1. Encourages monthly saving habit:
In a Recurring Deposit account, you invest a fixed sum regularly for a predefined number of months. This puts a commitment to your finances and encourages a minimum amount of savings for the month. For small investors, or people who don't have too many savings, investing in an RD account is beneficial since they can put in amounts regularly as compared to a lump sum amount at one time.   

2. The benefit of compounding: 
A Recurring Deposit earns interest on each installment. The interest is also added to the principal amount and earns additional interest in the following months. Thus, the account is a great way to take benefit of compounding.

3. No TDS if interest is under Rs. 10,000:
Interest on Recurring Deposit account is subject to TDS rules. But to ensure this does not hit small investors, the limit for TDS is set to INR 10,000. This will ensure that people who invest small amounts do not get hit unnecessarily by a tax that they are not liable to pay anyway.  

4. Low minimum contribution:
The Recurring Deposit is meant for people who have small monthly savings. Since the minimum monthly contribution amount is set as low as Rs. 100, it is possible for people of all sections of the society to invest in a recurring deposit account and build savings.

Demat account: How do you apply for one?

Are you thinking of investing in the stock market? Or maybe park some funds in mutual funds? Some of the requirements for investing, such as a functioning bank account, PAN card, are common among investors. But you need one more thing to ensure your investment transactions go through safely: a Demat account.

What is a Demat account?

The shares that are traded on the stock exchanges are in electronic form. This means that, unlike earlier times, when companies used to hand out share certificates for share purchases, all your purchases will now be online. The account to consolidate your investments is called a Demat account.

The word Demat stands for a dematerialised account. Dematerialization is the process to convert physical shares into electronic form. Most of the companies have now wholly converted their physical shares into electronic form, which makes it convenient to trade. 

A bank account and a Demat account share similar concepts. It keeps track of the instruments purchased and sold. You can get a balance statement, which shows the shares, mutual funds, and other devices you own as on a particular date. This makes it very convenient to keep records and to access them at any time. 

How to apply for a Demat account?

It is possible to open a Demat account both online and offline. The procedure for both is almost similar. The company who you will open a Demat account with is called a depository participant (DP). In India, two depositories maintain records for the investors: National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Each DP is affiliated with either NSDL or CDSL. 

Depending on the Demat account charges and services, you first need to select the DP you want to open an account with.

In the online application, you can apply on the DP's website, and someone from the DP will contact you to collect your documents and to sign a power of attorney (POA). A power of attorney is necessary because it allows the depository participant (DP) to make transactions in your name.

The DP will need documentation from you to fulfil Know Your Customer (KYC) norms. These documents are:

• Filled KYC application form
• PAN card of the applicants 
• Address proof for the applicants
• A recent photo along with the form
• A cancelled cheque for bank account details

Once the application form is collected and processed along with the documents, the DP will issue a Demat account number.

One important point to remember is there are Demat account charges, for account opening, purchase, sale, annual maintenance, and other costs. Reading about these charges before opening a Demat account is essential.