4 things to consider before using a car loan EMI calculator

Every person dreams of buying a car. Purchasing a car is a matter of great prestige for a lot of people. But a car doesn't come cheap. Depending on the make and model, a car can cost anywhere between Rs. 3 lakhs to Rs. 60-70 lakhs. Not everyone can buy a car out of their savings. With the increase in car sales, there has been a rapid increase in the number of car loans. Applying for a car loan is very easy with quick approvals. Most lenders take repayment in the form of EMIs or equated monthly installments set over a short tenure.

Before applying for a car loan, it is beneficial to check the EMI burden once the loan has been taken. But before you use a car loan eligibility calculator, it is important to know the following things:

1.Cost of the car:
Before checking the EMI on the loan, it is important to know the cost of the car. A car EMI calculator needs the loan amount as an input which is why it is important to know the cost of the car that you are looking to purchase. Since the loan amount usually depends on the value of the car, this is an essential point to be considered before checking the EMI calculation.

2. Rate of interest on the loan:
The EMI depends on the rate of if interest for the loan. Different lenders offer different rates for car loans. If you have a good repayment capability and a good credit score, you can negotiate to get a better rate of interest on the loan. Since the EMI consists of interest on the outstanding principal, a car loan eligibility calculator takes the rate of interest into account as well.

3. Tenure of the loan:
Before you use a car loan calculator, it is important to know the tenure for the loan. Most car loan eligibility calculators have a range to which the tenure can be adjusted. Knowing the tenure of the loan by different lenders will help to find out the EMI. One more thing to remember in terms of tenure is that the higher the tenure on the loan, the lesser the EMI. This is because in the initial stages, majority of the EMI services interest on the loan and small amounts go towards principal repayment. If you have the finances to quickly repay a loan, the EMI burden will be higher.

4. Repayment capability:
Before using a car EMI calculator, it is important to check the state of your finances. A car loan EMI is a committed monthly repayment, which may be a strain if you already have other loan repayments to take care of.

5 things to know before applying for a forex card in India

The number of foreign trips that Indians are taking is increasing every year. Unlike earlier, when foreign trips were rare, almost every person takes at least one foreign trip in his lifetime. Carrying currency for such trips becomes a matter of thought. Many people find carrying a forex card more convenient as compared to carrying cash.

A forex card provides the convenience of a debit card but is pre-loaded with foreign currency. This provides plastic cash at the hand of the traveller. It is very convenient to buy forex cards. Most banks provide forex cards, and there are companies that offer forex cards online.

As with every other type of card, there are few things that must be taken into consideration before applying for a forex card.

Here are 5 things to know before applying for a forex card in India:

1. Different types of forex cards:
There are different types of forex cards:
• Multicurrency forex cards:
• Hajj card
• ISIC student forexplus card:
Depending on the traveller’s needs, he can buy forex card. If the person is travelling to only one country, he can load currency from that country, or a universally accepted currency like the US dollar, British pound or the Euro. If travel to different countries is planned, then multiple currencies can be loaded.

2. Charges on forex cards:
Each forex card has different charges associated with it. When applying for a forex card, it is best to select the card with the least amount of charges, and also which provides the best service. Some of the common charges are:

• Forex card issue charges
• Service charges
• Balance inquiry charge
• ATM withdrawal charges
• Cross currency charge
• Replacement fee
• Statement charges
These are standard charges for a forex card, but all banks may or may not charge them. When you buy forex card, check which charges the bank levies.

3. Rate of exchange:
The rate of exchange while loading and emptying the forex card is the prevailing market rate at the bank. This means when you buy forex card, the bank will charge their prevailing selling rate, and when you unload or empty the card, the bank will charge their prevailing buying rate.

4. Chip based security:
All forex cards have chip security and are encrypted. This means that whenever they are swiped, a pin will have to put in the point of sale machine. It provides an additional layer of security. This means when you buy forex card, you will have to set a pin for it.

5. Reloading of funds:
It is possible to reload funds remotely to the card if there is shortage of funds. This money can be loaded on the forex card online.

5 reasons why you need an NRI bank account

When you’re thinking about moving abroad, there are a lot of considerations to be taken into account. One of the most important points that need urgent attention is banking.

Whatever country you decide to move to, opening a bank account there will be a matter of necessity. But that begs the question of what happens to your accounts in India. That’s where NRI accounts come into picture.

An NRI bank account is a bank account maintained in India by NRIs. These accounts have features that set them apart from normal banking accounts. These accounts can be used to maintain income earned in India. They can also be used to earn higher interest on foreign incomes. It is possible for you to open a fixed deposit account, by opening a Foreign Currency Non Resident (FCNR) account if you want to earn in foreign currency on your deposits.

The different types of NRI accounts are:
1. Non Resident External (NRE) account
2. Non Resident Ordinary (NRO) account
3. Foreign Currency Non Resident (FCNR) account

3 reasons why you need an NRI bank account are:

1. They can help to earn income on Indian assets:
Non-Residents can convert their regular savings account to an NRE account. This NRI account is useful for accumulating income earned from sources in India, such as interest income on investments, dividend income, rental income. Since non-residents are not allowed to hold normal savings accounts, they need an NRI bank account to ensure there is an account to accumulate all such earnings. It is possible to repatriate from this account once tax has been paid on the income earned.

2. It allows you to invest your foreign earnings in India:
For a non-resident to invest foreign earnings in India, they need to accumulate the earnings in an NRO account. If you plan to invest foreign funds in the stock markets, or purchase property, the right way to do it will be to open an NRO account. Having this NRI bank account will help you collect your funds from abroad and invest them in different investment avenues in India.

3. Non residents cannot maintain a regular bank account:
As per Foreign Exchange Management Act (FEMA), a non-resident is not allowed to maintain a regular savings or current bank account. If you are planning to move abroad, you will have to convert your regular savings account into an NRI bank account. It is possible for an NRI to open different NRI accounts to fulfill different purposes. Once you become a non-resident, you will have to convert your regular savings account to an NRO account and open an NRE account for investment purposes.

What is an NRO account? It’s features and benefits

One of the questions that comes up when someone is planning to move abroad is what to do with his existing bank accounts. Usually, individuals open a savings bank account to pool in earnings from various sources. But while moving abroad, a question arises about what can be done with these accounts.

The answer to this question lies in an NRO account. NRO stands for Non Resident Ordinary account. These accounts can be of two types:

1. Non Resident Savings account
2. Non Resident Current account

What is a Non Resident Ordinary Account?

An NRO account is the equivalent of a standard savings or current account. It is a good way for the NRI to collect incomes earned in India. Some of the incomes that can be collected in this account are:

1. Rental income
2. Interest on investments
3. Dividends
4. Pension

Interest earned on funds in an NRO savings account are subject to TDS at 30% plus 3% surcharge. It is possible for an NRI to take advantage of the tax rate specified in the DTAA or Double Taxation Avoidance Agreement. But to take advantage of this rate, the NRI will have to furnish a Tax Residency Certificate (TRC), which can be obtained from the tax authorities of the country where the NRI is residing.

The income earned in an NRO account is not repatriable until a certificate is furnished from a chartered accountant specifying that tax has been paid on the income earned. Free repatriation from the account is restricted to USD 1 Million.

It is possible to open an NRO savings account jointly with a resident, or non-resident. By submitting a Letter of Authority, the NRI can allow a resident to operate the NRO account.

Benefits of an NRO account:

1. Easy and convenient access:
An NRO account can easily be operated from abroad. It can be managed by a resident if the NRI gives a letter of authority. Facilities like net banking are also available for an NRO account. It is easy to make payments from the account and to receive funds from different banks both in India and overseas.

2. Low cost money transfers:
Repatriating money from an NRO account is not a costly affair. It is possible to get competitive exchange rates for transfers.

3. Minimum balance:
The minimum balance to maintain an NRO savings account is Rs. 10,000.

4. Reduced TDS through DTAA:
By submitting a Tax Residency Certificate, an NRI can avail lower tax rates as per the relevant Direct Tax Avoidance Agreement.

5. Joint account holding:
An NRI can open an NRO account jointly with either an Indian resident or with an NRI. It provides flexibility in that respect.

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.