5 innovative mobile payment apps

India is slowly moving online. With the increase in e-commerce companies and apps, transacting from a mobile phone is not a unique phenomenon. It is in fact convenient to use a payment app to ensure all bill payments are done in time.

It is not just making payments for purchases or bills, but even money transfers and banking has become mobile. There’s no need to even enable net banking because payment apps take care of payments between people. It is very easy to make payment using a mobile application.

There are several different types of apps in the Indian mobile ecosystem.

5 innovative mobile payment apps are:

1. BHIM-UPI:
UPI stands for Unified Payment Interface. This means that it is no longer necessary to use a bank account number and IFSC code to make payments. By simply creating a UPI ID, payments can be made between two parties. It is one of the most revolutionary mobile payment apps in India. The UPI app has a very user-friendly interface. The UPI payment app can be used to pay a wide variety of bills as well.

2. PayZapp:
HDFC Bank launched this innovative mobile payment app. One need not be an HDFC customer to use PayZapp. It is possible to link credit and debit cards from any bank to PayZapp and make payments from it. It is possible to use this app to shop online, book movie tickets, buy groceries, use travel portals and pay any types of bills.

3. Google Tez:
This is Google’s app for UPI. It is one of the most widely used mobile payment apps in India with a very minimalist interface. It makes transferring money very convenient between two parties. Using a UPI ID, Tez transfers money between two parties. It is also integrating bill payments in the system.

4. PayTM:
PayTM was one of the first wallet companies to start in India. It gives users many options such as online shopping, booking air tickets, movie tickets, and paying bills etc. PayTM made it simple to transfer money from one mobile number to the other, either directly or via QR code. It is possible to use PayTM to make payment directly to a bank account.

5. Vodafone m-pesa:
This mobile payment app supports cash withdrawals by the user. It is a very dynamic app that can be used to send money to people. The money sent via the app can be withdrawn or received at one of the many m-pesa agents across the country. The app is very simple to use and is configured for laymen. It can also be used for typical wallet functions such as payment of bills, recharge, online shopping etc.

Personal loan: It’s benefits and types

One can never anticipate when the requirement for funds may arise. Getting a loan for these expenses, such as wedding expenses, or home improvement expenses, is not easy. Different types of loans involve hassles, lengthy documentation requirements, and slow loan approvals. In such cases, a personal loan is the best choice.

A personal loan is an unsecured loan. It is one of the best loan instruments. If you’re applying for a personal loan, you don’t need to put up any collateral. Speedy approvals make it easy to get an instant personal loan.

Benefits of personal loan:

1. Quick disbursement of funds:
Funds from instant personal loans are quickly disbursed. After a personal loan is approved, the funds are disbursed within 4 hours for some lenders, up to 7 days for funds to get credited.

2. Online account access:
These days, it is possible to get an instant personal loan online. Right from application, to approval, to loan management, every aspect of the loan is online. This makes it very convenient to access account details at any time.

3. No restrictions on fund use:
The best quality about personal loans is that there is no restriction on fund use. The funds can be used for whatever purpose you want. You can use it for personal expenses, or business expenses. These loans do not come with  conditions.

4. Rate of Interest and Tenure negotiable:
If you show strong repayment capability, you can negotiate with the lender on the rate of interest and tenure.


Types of personal loan:

1. Personal loan for weddings:
These loans are given out to meet expenses arising on a wedding. In India, weddings are a costly affair. If you’re planning an elaborate wedding, an instant personal loan can be a great option to get funds for the wedding. Since the disbursal of funds is quick, apply when you need the funds.

2. Personal loan for education:
In case a standard education loan falls short of the expenses you need for education, then a personal loan is the best option. These loans are offered at attractive interest rates.

3. Personal loan for travel:
If you’re planning your dream vacation and need funds, a personal loan is the perfect loan for you. Depending on your eligibility, you can avail the best personal loan from among the different options available.

4. Personal loan for home improvements:
If you’re planning to renovate the house, you can take a personal loan to meet any shortfall of expenses. Since the approval for personal loans is speedy, apply as close to your fund needs as possible.

5. Personal loan for other purposes:
A personal loan is an excellent option for other requirements such as business expansion, medical emergencies etc.

Top 5 travel insurance policies in India

Travel is uncertain, filled with risks. Visiting an entirely new place is exciting, but is also risky. For all the expenses incurred on travel, especially foreign travel, having it go awry because of unpredictable situations would be the worst, especially without insurance. Incurring medical costs is a big burden in India, and to incur these costs when you are travelling abroad is a huge hit to the pocket.

That’s why buying a travel insurance is of great importance these days. Travel insurance covers a range of losses during travel such as:

• Trip curtailment
• Trip cancellation
• Accidental death and dismemberment
• Accident & sickness medical expense reimbursement
• Dental relief
• Emergency medical evacuation
• Repatriation of remains
• Baggage delay
• Loss of baggage
• Loss of passport
• Flight delay
• Hijacking
• Theft of baggage, documents

Depending upon the insurer, the number of risks covered are added or subtracted. With travel insurance, you don’t have to worry in case of emergencies. At least to the extent of insurance, medical and other costs are covered.

Choosing a good insurance plan is very easy these days. There are several insurers providing comprehensive insurance plans. Buying travel insurance online is very convenient, and based on the sum assured and the items covered, you can choose the best travel insurance policy.

To make the choice of buying travel insurance easier, here is a list of the Top 5 travel insurance policies in India:

1. HDFC Ergo Travel Insurance:
HDFC Ergo has a wide range of travel insurance plans for people in the age group of 6 months to 70 years. They even offer student travel policies, annual multi trip policies and family floater policies that cover the applicant, spouse and children. HDFC Ergo offers cashless hospitalization. It is easy to get this travel insurance online.

2. Tata AIG Travel Insurance:
Tata AIG is one of the largest travel insurance companies in India. They provide travel guard plans, student travel plans, asia travel plans and domestic travel plans. They cover most of the losses during travel and also provide accident and hospitalization cover.

3. Bajaj Allianz Travel Insurance:
Bajaj Allianz covers individuals, senior citizens, and families travelling. It provides enhanced medical coverage up to $5,00,000 and $1500 as emergency cash. It has cashless hospitalization and can be purchased online.

4. Bharti Axa Travel Insurance:
Bharti Axa provides single trip and multi trip insurance for individuals and families travelling multiple times a year. It covers all the losses during travel, and medical expenses.

5. Religare Travel Insurance:
Religare offers comprehensive travel insurance plans. It has different plans based on location the individual or family is travelling to: Asia, Africa, Europe, and Canada. It has Explore Gold and Explore Platinum travel insurance for worldwide travel.

Electronic fund transfer: Its types and benefits

Electronic payments have become the norm, especially after demonetization. Banks offer several different options for transferring funds online. Such transfer of funds online is called Electronic Fund Transfer.

Electronic fund transfer is the transfer of money without the involvement of bank staff. Fund transfers can be done across multiple banks or in the same bank.

Types of Electronic fund transfer:

1. National Electronic Fund Transfer (NEFT):
This is the most popular mode of electronic funds transfer. In NEFT, transactions are settled in hourly batches throughout the day. The beneficiary has to first be added before money can be transferred. Banks may set daily limits for NEFT transactions. Charges for NEFT typically depend on the amounts transferred. NEFT fund transfer can be done either online or at the bank branch.

2. Real Time Gross Settlement (RTGS):
RTGS is a type of electronic fund transfer used for high value transactions. A typical RTGS transaction amount is above Rs. 2 lakhs. Each transaction via RTGS is settled individually which means the funds transferred are immediately credited to the other party’s account. The RTGS system is maintained by the RBI.

3. Instant Money Payment System (IMPS):
IMPS is a type of electronic funds transfer system started by the National Payments Corporation of India (NPCI). IMPS involves a mobile money identifier code, which when input, allows the user to transfer money. IMPS is available 24x7. It is now possible to transfer money directly via IMPS by using bank account number and IFSC code.

4. Unified Payment Interface (UPI):
This is also a type of electronic funds transfer system started by NPCI. To use UPI, a user has to create a unique UPI ID and set a code. While making a transfer, the user has to input the UPI ID of the recipient and the decided code and funds are transferred immediately.

5. SWIFT remittances:
These remittances are interbank transfers between countries. They are used for foreign exchange remittances.


Benefits of Electronic fund transfer:

1. Reduces time taken to make payments:
Electronic fund transfer is convenient and payment usually gets credited on the same day.

2. Hassle free process:
It reduces the effort taken to transfer funds. There is no need to personally visit the bank.

3. Provides a trail for payment:
All electronic fund transfers leave a trail on their transfer. This makes it easy to access the records from the bank and find out details about payments.

4. Cost effective to transfer funds:
Transferring funds has become very cheap using electronic fund transfers. The transaction costs for NEFT are almost negligible as compared to the time and effort to personally deposit cheques. UPI is a free mode of transferring money.

How does car loan EMI calculator work?

What is a car loan?

A car loan is a loan where the funds are used for purchase of a car. There are three types of car loans:

• New car loans:
These loans are taken to buy a new car. Up to 100% of the value of the car is given out as a loan.

• Pre owned car loans:
These loans are for buying a pre-owned car. Some lenders provide up to 100% finance on the value of pre-owned cars as well.

• Loan against car:
In this type of loan, funds are raised keeping the car as collateral. These loans are like personal loans, which mean there is no condition for use of funds.

Most lenders work out an EMI system for repayment of car loan. Before you apply for any type of car loan, it is beneficial to use an EMI calculator for car loan, which will help you estimate the monthly outgo to repay the loan. Only if your financial capability is good enough to absorb the monthly outgo on loan repayments should you apply for a loan. This can be ascertained from a car loan EMI calculator.

How does the car loan EMI calculator work?

The formula for calculating EMI is:

P x R x [ (1+ R)^ N] / [ (1+ R) ^ N-1]

Where:

P= Principal or loan amount
R= Rate of Interest on loan
N=Tenure of loan in years

The car loan EMI calculator does not display this formula or its calculation. When you input the loan amount, the interest rate and tenure, it shows the monthly outgo or the EMI. Some car loan EMI calculators also show an amortization or repayment schedule for the loan.

The EMI consists of interest on the outstanding principal amount and principal repayment. During the initial period, the interest burden is more and towards the later part of the tenure, the principal repayment is more.

To find out the EMI, you have to input 3 things in the calculator:

• Loan amount you intend to borrow
• Rate of interest for the loan
• Tenure or duration of loan

The best part about an EMI calculator for car loan is that you can change any one input and observe the changes in the EMI. For example, the loan amount can be increased or decreased depending on the model of the car. The rate of interest can be changed depending on the interest charged by the lender. Thus a car loan EMI calculator helps to find out which lender’s loan will be beneficial in terms of EMI outgo.

There are many EMI calculators for car loan available online. Using them is beneficial while planning to take a car loan.

What is NRE account? Its features and benefits

While considering a move abroad, one of the considerations is what is to be done with assets in India. There are strict rules on sale and repatriation abroad in normal course. And if an NRI wants to invest in India, he can’t open a regular savings account to manage spends. For such transactions, an NRI will have to open an NRE account online.

NRE stands for Non Resident External account. An NRE account can be of two types:

• NRE Savings account
• NRE Current Account

An NRE account helps to conveniently repatriate funds abroad. It is also an account to pool in foreign earnings to invest in India.

Features of an NRE account:

1. An NRE account has no restrictions on repatriation of funds. The funds in the account and the interest earned on it can be repatriated at any point of time without any certificates from accountants.
2. This account is maintained in Indian Rupees. The bank where an NRE account is opened will convert foreign exchange into Indian Rupees at the applicable foreign rates.
3. Interest on NRE savings account is paid quarterly on the balance in the account
4. Funds from an NRE account can be transferred to another NRE account for bonafide purposes. It is possible to open an NRO account with the funds in an NRE account.
5. Foreign earnings deposited in an NRE account can be used to invest in Indian assets such as shares, mutual funds, provided the NRI fulfills other requirements.
6. An NRE account can be opened jointly with another NRI. It is not possible to open this account with a resident
7. However, a resident with a proper mandate/letter of authority can manage the NRE account.
8. Funds from sale of assets can be pooled in the NRE account and repatriated after payment of applicable taxes on them.


Benefits of an NRE account:

1. Tax free interest:
The interest earned on an NRE account is tax-free. However, interest may be chargeable to tax in the country the NRI is residing.

2. Easy operability:
Operating an NRE account is very convenient. Most NRE accounts come with NetBanking and PhoneBanking operations. It is even possible to open NRE accounts online.

3. Convenient repatriation:
There are no limits on funds that can be repatriated from an NRE account. The funds that have been brought from abroad and invested can also be repatriated after paying applicable taxes on earnings. The repatriation is done at market exchange rates.

4. Low minimum balance:
The minimum amount to maintain an NRE account is Rs. 10,000. This makes it very convenient to open an NRE account online since the funds required to maintain the account are not huge.

Bank account and its types

In today’s times, having a bank account is one of the essential requirements. A bank account represents funds that an individual keeps with a financial institution with the explicit understanding that these can be withdrawn at any time. A customer can go to the bank at any time and withdraw cash from his account. A bank account also gives customers other services such as direct payments, depositing cheques and drafts to receive payments, drawing cheques to make payments among others.

A bank account can be opened both online and offline. The offline procedure is to personally visit a bank, collect the account opening form, complete the details, and submit the form with the required documents.

The online bank account opening procedure is a lot simpler. Most banks have online forms that have to be filled up, and the relevant documents can be uploaded online. Some banks deliver cheque books and a welcome kit to the customer’s residence in a few days. These days, it is not only private banks, but several public banks also have online bank account opening for new customers.

There are different types of bank accounts that can be opened depending upon the needs of the customer. It is best to find out the features of each account and pick the one that best serves the customer’s needs.

The types of bank accounts are:

1. Savings:
This bank account is usually opened by individuals and hindu undivided families as a place to park their funds. Savings bank accounts earn a nominal rate of interest. These accounts offer fund withdrawal, debit cum ATM cards, cheque processing, and other facilities. Most banks offer net banking facility for savings bank accounts. Savings bank accounts have to maintain a minimum balance. If the minimum balance is not maintained, a certain charge is applied.

2. Salary:
Companies open salary bank accounts for employees who may not have bank accounts. It is also possible to convert a regular savings account to a salary bank account.  A salary account is similar to a savings account, except it has no minimum balance requirements. To make this account attractive for the employees, banks offer employees instant salary credits, phone banking, free internet banking, and other facilities. These facilities and benefits are not uniform and are offered depending on the company that opens salary accounts with the bank.

3. Current:
This is the most popular account for companies and businesses. This account does not restrict the number of transactions in a day. The charges for services on current accounts are lesser than savings account. No interest is paid on current accounts. Businesses can take overdraft facility to help with working capital needs.