Top 3 premium credit cards in India and what makes them premium

A credit card is convenient. It allows the users to borrow money from banks for large and small purchases. The borrower must pay off the money taken on credit, back in time so as to avoid paying interest. Most credit cards come with several benefits, but users can get exclusive benefits only on premium credit cards. Sure, the user has to pay substantial annual fees for the premium cards, but the benefits offered make them worthwhile. While some common benefits of premium cards include complimentary airport lounge access, travel insurance and concierge services, many other exclusive privileges differ from card to card. Let’s find out the Top 3 best credit cards in India.

Standard Chartered Bank Ultimate credit card: The SBC Ultimate card is one that matches the holder’s premium lifestyle. It offers the best reward point value along with exclusive travel and dining privileges. This card is available for an annual fee of ₹5000. Here’s what makes it premium:

• Discounts of 25% at more than 250 restaurants in India
• 5% cashback on duty-free expenses
• Free priority pass membership which allows access to over 1000 airport lounges worldwide
• 24*7 concierge service
• Free air accident travel insurance worth ₹1 crore
• 25- 35% savings on international car rental with Hertz and Avis respectively

HDFC Regalia Credit Card: HDFC Bank’s luxury card, the HDFC regalia has some of the finest privileges on offers. You pay a small annual fee of just ₹2,500, waived off on annual spending of ₹3 lakh and above. This card is ideal for people who love to travel. You can also apply credit card online for HDFC regalia. Privileges on this card include:

• Free air accident travel insurance worth ₹1 crore
• Emergency hospitalization cover worth ₹15 lakhs overseas
• Option to convert reward points into air miles
• Exclusive dining privileges at top fine-dine restaurants in India
• 12 Complimentary accesses to airport lounges per year on the lounge program and additional priority pass membership
• 24*7 travel concierge service

American Express Platinum Reserve Credit Card: One of the best credit cards in India, American Express Platinum Reserve Card is a super-premium card. Card holders must shell out ₹5,000 as annual fees for the first year, and ₹10,000 as fees from the second year onwards. It is one of the premium cards for business travellers who require air travel and hotel benefits.

Here’s what makes the AmEx Platinum card a premium card:
• Multiple benefits and savings on booking travel packages via MakeMyTrip.com
• Privileges at some of the most luxurious hotels in India and abroad, including the Taj Group of Hotels, Oberoi Hotels and resorts and several other luxury hotels
• Free access to airport lounges especially designed for AmEx card holders
• Free Priority Pass membership
• Special wellness and health benefits at health care centres like Fortis Healthcare and Max Healthcare
• Complimentary access to several premium golf courses in India
• 24*7 dedicated concierge services for round the clock assistance on the credit card

Unified payment interface – an attempt to understand this revolutionary method of banking

In 2106, India moved one more step closer towards becoming a cashless economy. It was the year when, the then RBI governor Raghuram Rajan, first launched the Unified Payment Interface, better known as UPI. This new payment method revolutionized the traditional way in which we pay money, eliminating the need for us to carry our wallets everywhere we go. With this modern method of payment, the smartphone doubles as the virtual debit card which can be used to make payments. Yet, a majority of the masses remain unaware about this revolutionary payment system. Here’s everything you need to know about UPI.

What exactly is UPI?

UPI payment is an online payments solution that facilitates the instant transfer of funds between two or more people, simply with the help of a smartphone. You can use UPI to receive as well as send funds. The UPI can be thought of like the e-mail ID for your money. It is a unique identifier, used by your bank to transfer funds and make payments using the immediate payment service or IMPS. 

How does UPI work?

You can start using UPI simply by downloading the UPI app from the Play Store, on your internet enabled smartphone. This service is offered by most Indian banks. After downloading the app, you have to register your details and create a virtual address. You must also link your mobile number to the unique mail address created. Once you have created the account, you can start sending and receiving funds up to 1 lakh, from other users who have set up the UPI payment method on their phones. The transaction can be done distantly, but to ensure your account’s safety, it is authenticated by your bank.

How is UPI different from other electronic payment methods?

While other electronic methods of banking like NEFT, IMPS and RTGS require the user to register on the bank’s website and add the beneficiary’s banking details, all this is eliminated while making payments through UPI. As we mentioned above, the only things necessary are the senders and receivers’ phone numbers and virtual mail IDs. There is no need to share each other’s bank account details to make the transaction. Furthermore, UPI payments can be made 24X7, throughout the year, whereas NEFT and IMPS payments go through only during banking hours. Plus, there are limitations on fund transfer through NEFT and IMPS. You do not have to enter other details like the bank’s branch and IFSC codes.

What is the main objective behind UPI?

The Unified Payment Interface was introduced to help the country adapt to and move towards a cashless economy in the long term. The objective was to reduce the amount of cash in the system and create transaction trails, boost revenues and decrease tax evasion by bringing peer to peer payments for even the smallest of amounts online.

4 common loans you can apply for in India

In today’s day and age, finding finance for your dream home or your dream car is no big deal. The same is true for purchasing just about anything; be it consumer durables, a vacation or for simply renovating your home. Banks and non-banking financial companies are ready to finance your needs, so long as you know where and how to look for it. All you have to do is simply find out which institutions offer the money at the lowest interest rates and apply. Here are the most common types of bank loans that you can apply for in India.

Home loan: Owing your own home is not only one of the biggest life goals; it is also one of the biggest investments that provide you and your family with financial security. And to procure a home loan, you need access to a large amount of funds. The good thing about a home loan is that you can get flexible repayment periods, along with decent interest rates. Getting a house on loan makes much more sense that investing all your life savings into purchasing/building the house.

Loan against property: Also known as close-ended secured loans, loans against property require the borrower to follow a set payment plan or schedule and the loan must be repaid over a stipulated period. To avail this loan, the borrower must mortgage his property; be it residential, commercial or even industrial. Loan against property is popularly availed by many borrowers since the interest rates on these are comparatively low and a loan can be passed for anywhere from 40% to 70% of the market value of the mortgaged property. Bank Loans against properties are ideally taken to expand business, purchase property, purchase new machinery and for personal expenses like education, home renovation, marriage etc.

Personal loan: A loan procured for personal purposes is regarded as a personal loan. Such a loan is usually taken for small or medium sized, personal expenses which include repayment of debt, wedding expenses, festive expenses, vacation, purchasing electronics and home appliances, paying for unexpected medical conditions and so on. Personal loans are offered to the borrower on the basis of his credibility and his capacity to repay the amount and are typically unsecured. You can also apply for loan online, to avail this loan from several banks like HDFC Bank, Axis Bank, ICICI bank etc.

Business loans: There are times when businesses require funds to expand and purchase new assets. Businesses can get these funds by applying for a business loan from banks and other non-banking financial institutions. A business loan can be taken by a business owner or a self-employed professional and is unsecured in nature. A term loan, a loan for women entrepreneurs and a working capital loan are the three most common types of business loans that can be availed in India.

FAQs about FCNR accounts

The importance of saving money cannot be undermined. No matter, what part of the world you are in, it is integral to have savings tucked away. While most of us in India, can park our savings into several different savings accounts, Non Resident Indians, looking to invest their money in India, can do so by opening a Foreign Currency Non Resident or FCNR account. This however, is not a savings account but a term deposit account, which can be maintained by both, NRIs and Persons of Indian Origin (POIs). Here are some common FAQs about FCNR accounts answered.

In what currencies can I maintain my account?
The account can be maintained in any of the major foreign currencies including the US, AUS, Canadian, Singapore Dollar, UK Pound, Euro, Japanese Yen, Swiss Franc etc.

How can I open this account and transfer funds into it?
The funds in your foreign currency account can only come from your overseas income/funds, and the FCNR account can be opened online. Once you’ve opened the account, you can directly transfer funds from your overseas bank account. This can be done either through a cheque transaction or a wire transfer. Furthermore, you can also transfer funds from your existing Non Resident Rupee (NRE) account. You can also open this account on your visit to India by depositing travellers’ cheques or foreign currency notes.

What is the tenure for the account?
Typically, you can open this term deposit account for a minimum of 1 year, whereas the maximum tenure is 10 years.

Can I make a premature withdrawal?
Yes, investors are allowed to withdraw money from the FCNR account, before the completion of the selected term. However, premature withdrawals are subjects to a 1% penal interest. Also, the bank is not obligated to pay interest on the deposit if you choose to make the withdrawal within one year.

Can I use my funds from the account for local payments while I’m in India?
Yes, the balances in the account can be used for making local payments in India. However since this type of account is a term deposit, you must first transfer the necessary amounts into your NRE account and withdraw from the NRE accounts to make the payments.

Can I hold a joint account?
Yes, it is possible to hold a joint foreign currency account with other NRIs or with resident Indians you are related to. In the case of the latter, the resident relative may operate your account, serving as its power of attorney.

Is there a facility for nomination?
Yes, there is a facility for the account holder to nominate anyone he chooses. The nominee can be both, a resident Indian or an NRI. In the case of the unfortunate death of the NRI holding the account, the balance in the account can be credited to the NRI nominee’s FCNR account and the funds can be freely repatriated.

Important steps for getting a business loan

Money is important for a business to survive and thrive. If you have a business idea and are looking to build it into a full-fledged business, you must begin by investing some capital. Once you reach some sort of stability and feel you have proof of sustenance, you can make your business grow by acquiring a business loan. But in order to do so, you must follow the below steps.

Understand the different kinds of business loans available: Depending upon your business needs, term of loan and the length of loan, you can choose from several types of business loans. The most common types of these loans include demand loans, term loans (working capital and corporate), and loan against securities, gold loans and cash-credit facility among others.

Research about the available lenders: In this current age of start-ups, banks, financial institutions and entrepreneurs are willing to lend new businesses money, now more than ever. Loans can be acquired from large commercial banks, local community banks, non-bank finance companies (NBFC) and even investors. Also, a quick google search of your credit scores can help you find sites that offer a business loan online. Banks like HDFC, Axis and Kotak Mahindra are among those that offer this loan online.

Be prepared for the lender to view your credit/risk profile: Your lenders will consider accepting or rejecting your loan application basis your credit and risk profile. A lender often looks at factors like your credit score/report, outstanding loans and cash flow, assets invested in the business, time invested in the business etc., before sanctioning the loan. He may also take a look at the other investors and your financial statements. 

Get your financial statements in order: Since the lender considers your loan based on your financial statements, you must get them in order. Ensure that your income and loss statements, balance sheet and cash flow statements are thorough when you apply for business loan. The lender will analyse your cash flow, gross margin, accounts payable, debt-to-equity ratio and so on. Also ensure that these statements are audited by a certified public accountant.

Present details about your loan and specify the amount you wish to borrow: Apart from statements, you lender will also want to understand the detailed information about your business which include its name, tax ID, legal structure (LLP, LLC etc.), state filings, business plan etc. Furthermore, the lender also attempts to understand how much funding you’d require and how you intend to use the funds provided; for equipment, capital, expansion, hiring, inventory, marketing, R&D and so on.

Determine your collateral: A lender is concerned with the borrower’s ability to repay the business loan. As such, he may ask for a security interest on company assets like equipment, accounts, property, receivables etc. Some lenders may also for collaterals like property documents, while others may insist upon personal guarantee of the business owner to pass your loan.

Opening a PPF account – here are a few things you must know

Public Provident Fund is one of the most sought after tax saving investments that benefits anyone who holds this account. Besides being a tax-free mode of investment, you can also earn interest on the savings you park in this account. The scheme, instituted by the Government of India, is one of the best ways to park away your savings for retirement, while also being the safest. One can open a PPF account in almost all Indian nationalized banks like SBI, Bank of India, and Central Bank of India as well as private sector banks like HDFC Bank, ICICI Bank and Axis Bank.  Here’s a list of things you must know about opening this income-tax saving account.

Who can and cannot open this account?

Indian citizens; self-employed, salaried or unemployed can open a PPF account, whereas Hindu Undivided Families and NRI cannot open this account. However, if an individual opens a PPF account, but later becomes an NRI, he can continue to park his savings in this account.

How much are you allowed to invest?

Resident Indian account holders can invest up-to ₹150,000 annually; in 12 instalments or a single deposit. NRI account holders can invest ₹70,000 annually. You must deposit money into this account, at least once a year, for 15 years.

How many accounts can you have in your name?

You are allowed to hold only one PPF account in your name. In case you’ve opened a second account in a different bank, the bank is obliged to close your account and return only your principal amount, not your interest.

Can you hold a joint account with another individual?

Since these accounts are not like traditional savings accounts, one cannot open joint accounts when it comes to PPF. However, you can nominate more than one individual as a nominee, but the nominee cannot continue to park his savings in the account. If a nominee is not registered, the bank hands over the money to the account holder’s legal heirs.

What is the minimum deposit amount and how much interest do you earn on your savings?

As per the PPF scheme, an investor must deposit a minimum of ₹500 in a financial year to continue earning interest. Failure to do so can lead to your account being discontinued. The account can be regularized by paying the necessary default fees with subscription arrears. Investors can earn an annual interest rate of 7.60% as of 01.01.2018. This is applicable to all your savings and is compounded annually.

What is the maturity period and when can I start withdrawing?

A PPF account ideally comes with a maturity period of 15 years. However, you can start making partial withdrawals from the account after completing 7 years. After the completion of 7 years, you can withdraw 50% of your deposits. You can also choose to withdraw the entire amount at maturity and close the account or extend it for a block of 5 years each time.

7 benefits of loan against shares

There are loans available to fulfil all kinds of requirements such as the wedding, education,  home renovation, setting up businesses, etc. These fall under the unsecured category as they do not require you to pledge any collateral as security. Then there are secured financial investment such as the gold loan, property loans, etc.  They need you to keep gold or your properties as   security. The loan amount is also dependent on the rate of your gold or estate. Another type of secured investment is a   loan against shares .   
 
What is a  loan against shares?

Simply put, investors can get funds from lenders against their existing investment portfolios. The invested money can help you in getting a loan. Often people spend on such a loan    as it is a short and long-term investment option. The securities that you can invest, however, differ from lender to lender. The lenders, in fact, have a list of securities to choose from. 
 
Who can opt for a loan against shares ?
1) Traders
2) Industrialists
3) Businessmen

What are the benefits of opting for a loan against shares?

1) Interest rates: As compared to the unsecured loans the interest rates are generally lower for the    secured ones. In secured loans such as loan against shares, there is some kind of asset kept as secur  ity  that the lender can liquidate in the event of non-payment . Also, you have to pay interest only for the money you utilise and not for the entire loan amount.     

2) Flexibility: Loan against shares function pretty much like personal loans. They can be used for all kinds of purposes.

3) Hassle-free application process: This loan does not require a guarantor. If you have your documents in place such as application form, bank statement, ID proof, address proof, signature proof, age proof, income proof and your photograph in place, then processing of this loan is quick. If you have a  Demat account, then it is an added advantage. Many firms send their representative to your residence to collect the documents and you are done.

4) Instant liquidity: Loan against shares also come handy to fulfil immediate requirements such as medical expenses, unplanned expenditures, etc. Instant money is always beneficial in such circumstances.

5) Short tenures: The tenure period is anywhere between 7 days to 1 year. Some banks also extend the time-frame. Also, if you wish to pay the entire amount before the stipulated period, no pre-payment charges are implemented.

6) Additional benefits: Considering you are the owner of the shares, you will reap its benefits. You will receive the perks from the stock, bonuses, dividends, etc. You get more value for your investment.

Some of the banks that offer the best loan against shares are Axis Bank, ICICI Bank, HDFC Bank, State Bank of India and Bajaj Finserv.