Demat account - how to open one?

We all hold multiple bank accounts, be it savings or current or salaried account. And if you are an entrepreneur or business person, you might be interested in Demat account. They act like a DigiLocker. Just like how a DigiLocker saves all your essential physical documents safely, a Demat account manages your assets (bonds, debentures, shares, etc.) If you are someone who purchases shares from the market frequently, then you should open Demat account right away.

What is a Demat account?

A Demat Account’s functions are similar to a DigiLocker. Now, if you want to buy or sell your stocks, you should have a Demat account with a Depository Participant (DP). Who are these entities? Just like the Indian government operates DigiLockers, the DPs manage your Demat account. Unlike a DigiLocker, the depositories facilitate transactions, though.

At the moment, three entities are handling the Demat accounts in India: Securities and Exchange Board of India (SEBI), National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

How to open Demat account?

You cannot directly open an account through CDSL. You have to open Demat account through a DP of CDSL. Following are the steps to open one:

1) You must first choose a DP based on your budget and convenience
2) You have to fill a Demat account application form along with the following documents:
- Age and address proofs
- Bank account details
- PAN card
3) Prior to opening your account, you have to sign an agreement that includes the rights and obligations of both, the DP and you
4) Upon opening Demat account, you will receive a beneficial owner identification number that should be used for future transactions
5) You will also be allotted a unique Demat account number that ensures debit/credit of securities
Note: You can open Demat account can be maintained even with a nil balance

What are the benefits of owning a Demat account?

1) You do not have to pay stamp duty, which in turn reduces your transaction cost
2) Convenient and instant electronic settlements
3) Less paperwork concerning transferring of securities
4) The chances of fake certificates and theft get reduced
5) Can sell n number of shares
6) You can also invest via your Demat account, courtesy internet

Remember to open a trading account as well when you open Demat account to conduct buying and selling of shares. Go to your closest bank and get one now!

5 reasons to take up personal loans

Money plays a huge role in shaping our lives. They have the potential to turn our dreams into reality. However, there is one hurdle that stops us from nearing our goals – the financial setback. Lack of funds can be detrimental on several occasions. Nevertheless, there are many avenues by which you can secure your dreams. One such solution is a personal loan.

What is a personal loan?
Simply put, a personal loan is an unsecured loan that requires no collateral as security. These can be taken from banks or non-banking financial companies (NBFC). Personal loans are available with much ease and provide flexible options. They offer immediate financial relief as well.

What are the personal loan eligibility criteria?

Those who take up personal loans need to fulfil conditions based on income level, repayment capacity, employment history, etc. The criterions are as follows:

1) Age: You should fall between the age group of 21-60 years

2) Income: To avail a personal loan, you should earn a minimum salary of 20,000. This is applicable for salaried employees. If you are self-employed, you should be drawing at least INR 2 lakh per annum


3) Employment stability: You should have been in your current business or organisation for at least 3 years

4) Credit score: Your rating plays a crucial role to determine if you can   pay back the loan on time. You must have a rating anywhere around 650-700 
   
Although personal loans are taken to fund your requirements, there are times people use it for impractical events. It is imperative to know when to avail of a personal loan:

1) Holiday: Lengthy working hours, stressful work environment, improper eating habits, are some factors that contribute to our health problems. To counterbalance all this, a vacation is an ideal solution.  If you cannot afford the expenses of the ho     liday entirely, you can always take up a personal loan for the same.  Banks do not back out from offering loans for such reasons, provided you have your trip documents in place.       

2) Wedding: A wedding calls for expenses that could leave a hole in your pocket. Considering weddings are a one-time affair, people do not hesitate in spending lavishly. Indian weddings involve several ceremonies, and that adds on to your budget. In such scenarios, you can   opt for a personal loan. These loans are generally quick in nature and ensure the wedding takes place smoothly. 

3) Clear existing debts: There are times we need loans to meet some of the other financial emergencies. That leads to multiple investments in our name.    It is better to clear them off with one single loan, i.e. a personal loan. Most banks do not refuse to sanction personal loans to clear existing debts.  

4) Health: Let’s be honest, medical emergencies are erratic. The cost of healthcare is too much to handle. Health insurance could bail us out for that  moment, but additional expenses could emerge. At such times, a personal loan comes to the rescue. It offers some amount of relief and is an extremely viable option due to its immediate processing.      

5) Home renovation: No house is complete if it does not give you a homely feeling. We always want the best amenities for our home. Whenever you want to make some changes to your home or purchase new equipment, a personal loan acts like your best ally.

Regardless of the reason, a personal loan should be treated with respect as it always provides us with relief from a significant burden.

Top 5 benefits of purchasing a two wheeler loan online

With the magic of the internet, the entire world has become smaller and smaller. Things that looked impossible a decade ago have suddenly become the new norm. While it was understandable that one could buy clothes, accessories and even food online, no one thought that a day would come when people could purchase bank loans online. That’s right, in this modern, 21st century; online shopping has been taken to a whole new level where you can apply for bike loan online. Here are a few benefits of purchasing your loan off the internet.

You can get lower interest rates: As we all know, online aggregators are highly competitive. You get discounts not only on the product, but there is also a good chance that purchasing a loan online can result in a lower interest rate percentage. If you visit a bank or a financier’s office, you will mostly find them offering the loan, at say 14% for 3-4 year tenure, whereas, when you apply for the loan you may get a 2% discount on the bike loan interest rate, resulting in a lot of savings.

Additional discount on processing fees: Most online aggregators try to win your business by giving you as high as 20%-50% discount on processing fees, further reducing the total price you pay. The rates are reduced further if you purchase the bike during festive seasons. Some will adjust it to lower one entire EMI, allowing you to save a lot more than you would have, had you visited the dealership to purchase the bike on loan. Plus, they would also throw in free bike servicing for the first year.

You can use an EMI calculator to check your

eligibility: Before you apply for the loan, you can do a quick check of the loan amount and interest you would be eligible to pay, on the bike loan EMI calculator. You simply have to answer a few questions such as your personal details and provide a few documents like your salary/income certificates, pay-slips etc. In just a few seconds, the algorithm will tell you the interest you can pay as per the tenure you select.

Your loan gets approved faster: Once the eligibility check is completed, you can get the two-wheeler loan approved much faster, eliminating any reason to visit the branch. Note that if you opt to apply for the loan online from a bank with which you have a working relationship (current/savings account), your chances of getting the loan approved increase further. The bank sends over an agent to complete the formalities, saving you a lot of time.

You can get 100% financing: Since most bikes are not that expensive, you don’t have to think a lot before taking out a loan. What’s more, you can get 100% bike loan, so you don’t have to worry if you initially had a low budget.

The Advantages of Sending Money Online Instantly

Moving funds around via cheques, pensions and financial brokers is so “old school”. Exorbitant commission fees and lots of time goes in this process. The process of the money being transferred through these methods is painstakingly slow. Thanks to the advancement of technology, it is now possible to send money online instantly with the help of online money transfer apps. This is also a saving grace for those who want to send money immediately to different countries, as the current exchange rates are shown during the process or transfer. Online transfer of funds is also beneficial for those who want to make instant bill payments.

These transfers can be done online or with the help of online money transfer apps on the mobile phone

Some of the benefits of transferring money online are:

1.    Need for Speed
One of the most significant advantages of online funds transferring is that is it quick and hassle-free. Cheques take weeks to be processed and going through a financial manager is also time-consuming. The fast speed of online money transfers makes it easier to manage finances and make bill payments on time, saving you from the late fee penalties.

2.    Safe and Secure
Sending money in the mail or through another person can always be risky as there is a possibility that the money might get stolen and not reach the recipient. Furthermore, if cheques are sent by mail, and these get stolen, thieves can gain access to the account listed and drain your bank account. To avoid such situations, online money transfer apps are a much better, and safer option.

3.    Flexible
Several accounts can be set up in different banks, and money can be moved back and forth from the accounts at one's own will. To make an expensive purchase, the ability to transfer money online from one account to another will come in handy, as every account has a spending limit. This process of sending money online instantly also comes in handy in emergency situations, and to avail higher interest rates from different banks.

4.    International Transfer
Gone are the days when one needed to carry loads of cash with them when travelling abroad. Now, if anybody runs short of money, friends or family can instantly use an app to transfer money from different banks, and across seas when the other person is in need of it. This makes the process simple and hassle-free.

Top 3 online shopping offers during the festive season in India

The sale might be over in the malls, but you have plenty to shop from the online portals. The sale periods on sites like Amazon, Flipkart, etc. never stop. They keep running deals and offers on a frequent basis. India runs  online shopping offers on two occasions: end of season and festivals. End of season sale last for a more extended period, approximately for two months. Then you have the festiv e deal  that lasts for not more than 4 to 7 days.
        
During this period, you have offers on electronics, clothes, accessories, etc. There are also offers on essential commodities such as day to day groceries and even,    gomutra (cow urine)! To  avoid unmanageable traffic on one day, e-commerce websites release deals occasionally. They also have some strategies in place before coming up with these discounts. Some of the upcoming  and ongoing online shopping offers in India are:  

1) Flipkart: From August 10, consumers can enjoy a limited period sale  on Flipkart which is also called the ‘Big Freedom Sale.’ They will run till 12 August midnight. Their primary focus is on smartphones.  Some of the deals during this phase are: 

- There is an INR 3,000 off on Honor 7A. The phone initially costs INR 10,999 for a 32GB model.    The phone was launched in April 2018  
- You will also get the iPhone SE for INR 17,999, the actual cost for which is INR 26,000
- Flipkart is giving away Honor 9 Lite for INR 10,999. They have chopped the rates by INR 6,000
- Google Pixel 2, the phone on demand, will be sold for INR 41,999. The original price was as high as INR 61,000 for a 64GB variant

2) Amazon: The big players who are providing offers on online shopping are Amazon. They have already begun their sale from August 9 and will be on until August 12. This sale is conducted on the eve of 72nd Independence Day. Amazon is offering over 20,000 deals  across categories that include electronics and smartphones. They are also offering huge deals on Amazon products such as Echo, Echo Dot, Echo Spot, Fire TV Stick and Kindle. Depending on the popularity of the product, Amazon is changing offers almost every day.   

3) Paytm: Going by the ‘freedom’ theme, Paytm are running the ‘Freedom Cashback Sale.’ It began on August 8 and will go until August 15. Paytm in connection with 1,000 other brands are promoting this offer. People can select from an array of options  for an attractive price offer during the Paytm sale.
Make maximum use of the online shopping offers and flaunt your purchase in style this Independence Day.

What are the Best Mobile Money Transfer Apps in India?

We have all reached a phase where we cannot make do without technology, so much so that we even depend on it for our necessary calculations. Though it is not the best solution, technology was what we all opted for during demonetization, when we didn’t have money in our pockets. These mobile money transfer apps send money online instantly and have changed the way we make payments in our country today. They are slowly replacing every other means of payment, including cash. The app store and google play store are full of online money transfer apps, so the choice is not very limited for customers. Today, every bank has it’s own mobile banking app for customers, to make the process hassle-free and streamlined.

Here are some of the most user-friendly mobile money transfer apps available online:

1.    PayTM:
One of the most popular Indian online e-commerce payment systems and digital wallets, this company was founded back in 2010. It is commonly used for bill payments, travel expenses, event bookings, mobile recharges and so much more, on just one portal. Merchants, as well as customers, depend on this app for payments. This app has also partnered with educational institutions to introduce cashless payments for fees and other expenses.

2.    Airtel money:
With this app, people can easily recharge their prepaid accounts or pay their postpaid connection bills. It is also possible to shop online if the Airtel money wallet ahs cash loaded. The net banking app is also extremely safe as it requires a secret 4-digit pin for authentication.

3.    Citrus Pay:
One of the top e-banking apps in India, this portal offers a wallet for customers and as a payment solution for businesses. The app currently has a solid base of over 800 million customers all over the country, which has made it a preferred choice of digital wallets.

4.    Freecharge:
This e-commerce website also provides the ability to recharge any prepaid mobile phone or make bill payments online, recharge DTH services, and data cards, all across the country. Axis Bank now acquires it after being founded back in 2010. The online money transfer app targets the youth with all of its promotions and gives coupons for every recharge made. This makes it a great option to save money while making payments instantly online.

5.    HDFC PayzApp:
This app by HDFC makes digital payments simplified with a single click, which is what makes it a preferred e-wallet to send money online instantly, in India. Users of the app can compare ticket rates, buy music and even make bill payments through the app. It’s an all-in-one solution!

6 ways in which a business loan can be a boon

We’re living in the era of start-ups. Everyday a new entrepreneur comes up with an unconventional business idea, and before you know it a new business is born. The millennial entrepreneurs are not afraid to take a few risks and start their own businesses, fresh out of school. With a little seed money, some funding from investors and a bank loan for business, these entrepreneurs are taking the World Wide Web by storm. And why shouldn’t they? Such loans can go a long way in helping businesses flourish. Here are 6 ways in which business loans can be a boon.

It keeps your savings intact: Most entrepreneurs begin their businesses by liquidating their savings. These savings, which are meant to come in handy in emergency situations, can remain untouched if the entrepreneur just takes out a loan for business. This way, you can keep your savings aside. In fact, the savings cushion should come in handy during a business emergency, but liquidating it to start a business is not the greatest idea.

It is hassle-free: We’re living in an era where banks like HDFC bank, ICICI bank, Punjab National Bank and other boast of disbursing loans in a matter of a few minutes. Several banking and non-banking financial companies do not even ask for guarantors or collateral against new business loans. Both new and established business owners can easily avail the necessary funds required to meet their cash flow, keeping their businesses running smoothly.

You get lots of options and better flexibility: Business owners can choose from various types of loans as per their requirements. Whether it is a working capital loan required for operational expenses, a term loan to fund the business in the near future or an overdraft facility; the entrepreneur can choose the loan that best suits his requirement. These multiple options give the borrower the flexibility, while continuously creating the timely flow of cash for the business.

Loans can be availed online: Business owners need not visit the bank anymore with their huge files and tedious documents. With the advent of technology and internet banking, it has now become possible to apply for business loan online. Furthermore, you can access significant loan details like payment schedules, interest certificates and repayment history, online.

They help your business grow and sustain: While loans for business help smoothly manage your business’ operations, they are especially beneficial should you choose to expand or diversify your business. The cushion of money from the loan, if used wisely, helps your business grow and move higher up in the value chain.

They’re affordable: Contrary to popular belief, business loan interest rates are not excessive or exorbitant. They are rather calculated on the basis of such criteria as the business’/borrowers’ financial situation, credit scores, loan tenure and the business’ overall market dynamics. Also, the processing fees and commissions for these loans are minimal. Funds for business can therefore be borrowed at relatively low interest rates.