NEFT fund transfer – everything you need to know

There was a time when sending money from one account to the other was a tedious task.  Whether in the same or another city, you had to take the cheque with the desired amount and put it either in the drop box or get it done manually through a bank representative. And the movement of money took an eternity.  Fast forwarding to 2018, transfer of funds is just a matter of minutes.  All thanks to a money transfer system called – National Electronic Funds Transfer (NEFT).

What is NEFT?

It is an electronic system by which you can move money from your account to any other bank account in a safe and hassle-free manner. All NEFT transfer is done batch -wise. You can send money to any bank that is NEFT-enabled. Not just individuals, but also firms and corporates can move funds with the help of NEFT.

For using the NEFT system,  you have to enter specific beneficiary details:  
        
- IFSC code
- Payee name
- Beneficiary’s account number
- Bank branch

A step-by-step process of NEFT: 

The NEFT transfer is done only online. You have to follow the procedures:

1) Login to your net banking site using your customer ID and password
2) Click on the ‘transfers’ option on the homepage. You will find 3 choices here: transfer within the bank, transfer to other bank and transfer via card. Choose the desired option
3) Include all the deta ils mentioned  above of the  receiver. Post that you will get a one-time-password on your phone to confirm the beneficiary’s details   
4) Generally, it takes 24 hours to activate the recipient’s account
5) Select the NEFT mode and enter all the recipient information again inclusive of the amount and the reason for transferring cash
6) Confirm and submit. The recipient will receive the amount in 1-2 working days

What are the timings  for NEFT transactions?

All NEFT transfer is done on an hourly basis.  Usually, 6 and 8 batches operate on a weekly basis. However, they are done within a specific time: 8:00 AM to 7:00 PM (Monday to Friday) and     8:00 AM to 1:00 PM on Saturdays (except for the second and fourth Saturday of the month). This NEFT money does not get credited on bank and public holidays as well.  
    
What are the NEFT charges associated with the transaction?

If you are transferring an amount below INR 10,000, no charges apply  to the  sender. However, if it goes beyond the said amount, the following are the fees:
      
Note: These charges are subject to change

Transaction Amount
Amounts up to INR 10,000
NEFT Charges
INR 2.50 + Applicable GST

Transaction Amount
Amounts above INR 10,000 and up to
NEFT Charges
INR 1 lakh INR 5 + Applicable GST

Transaction Amount
Amounts above INR 1 lakh and up to
NEFT Charges
INR 2 lakh INR 15 + Applicable GST

Transaction Amount
Amounts above INR 2 lakh and up to
NEFT Charges
INR 5 lakh INR 25 + Applicable GST

Transaction Amount
Amounts above INR 5 lakh and up to
NEFT Charges
INR 10 lakh INR 25 + Applicable GST

To know more information about NEFT system, you can visit the Reserve Bank of India (RBI) website.

Car loan EMI calculator – everything you need to know

Everyone wants to get their hands on the latest shiny set of wheels  and unlock a new milestone in their life. However, in India owning a car is a costly proposition, one that demands high dependence on banks and other financial institutions. Enter car loans. They are the means to make your dream a glorious one in the most friendly, affordable and hassle-free manner. By tick marking aspects like income, credit history and financial stability, you can be the owner of a brand-new car.  

What is car loan EMIs?

Lenders provide a car loan at an attractive interest rate  which the borrower repays in equated monthly instalments (EMIs). Car loans are secured loans where you have to keep your bike as collateral until the end of the repayment tenure. If you fail to pay the money on time, the lenders will sell your bike and cover the amount. 

To avoid these complications, you can use the car loan EMI calculator that is available on all the lenders' websites.  It helps you manage your monthly budget.

How does the EMI calculator car loan function?

Three parameters determine if you are eligible to get a car loan:   

1) Principal amount: It is the overall loan amount that the lender sanctions. The higher the amount, the higher the car loan EMIs

2) Tenure: You can choose your mandate. It is the period taken to repay the loan amount. The longer the tenure, lesser the EMIs 


3) Interest rate: It is the additional amount you pay to the principal loan.   The interest rate may vary from person to person. This is where your credit history and income come into the picture. The higher the rate of interest, the higher the EMIs. 

A car loan EMI calculator assists you in the following ways:

1) It lets you determine if you are eligible to take a car loan. If not, you can work on bettering your credit history and apply for the same
2) By entering the primary loan amount, you can get comprehensive information
3) You can use the car loan EMI calculator numerous times as it helps you make an informed choice 
What are the benefits of car loan EMI calculator?
1) You receive immediate results by entering the details mentioned above
2) Conventionally calculating your EMIs  could lead to erroneous conclusions.   With the EMI calculator, you will receive an outcome quickly   
3) Most of the lenders’ EMI calculator car loan is free of cost   
4) It also helps you in comparing other loan options as well

Thus, before applying for a car loan, you have to carry out your research thoroughly. This way you can narrow down to an affordable option.

What is an NRE account? What are its benefits?

Moving abroad for employment is a huge milestone. After persistent effort and rigorous hard work, you finally achieve your dream of settling overseas. However, that is not your ultimate goal. You still have to think about your future regarding family, children, etc.    So, what are your investment options?  

India boasts of a high savings rate. As a Non-Resident Indian (NRI), you might want to consider the options in India as it is beneficial for you and your family back home.  But before divulging the investment options, how do you classify yourself as an NRI? You should have completed staying in the overseas country for at least 182 days to be termed as an NRI. Also, you should possess a PAN card for indulging in any of the investments.

Banks in India offer NRIs plethora of investment options. Before opting for any of     them, you need to have a bank account to carry out all the financial dealings. Under this category, NRIs are presented with 3 choices:    

1) Non-Resident External (NRE) Account
2) Non-Resident Ordinary (NRO) Account
3) Foreign Currency Non-Resident (FCNR) Account
Considering you and your family would need money in Indian currency, the ideal option would be an NRE account.

What is NRE account?

NRE accounts are either savings, current or term deposit accounts. You can keep your foreign earnings in the form of Indian rupees. Also, the interest that you earn through this account is  tax-free. The account holder can also repatriate the money anytime from the account.
 
What are the NRE account benefits that you can enjoy?

1) Tax-free account: The reason an NRE account is a high yielding investment option is because the interest earned through this account is tax-free. Even if you hold some income in India, they would not be counted in your taxable income.

2) Minimum balance: One of the important NRE account benefits is that you can maintain a balance as low as INR 10,000. Considering several banks are offering an NRE account, the minimum balance requirement has dropped drastically over the years.

3) Interest rate: The best part about holding an NRE account is that you earn high-interest rate. This could, however, vary from bank to bank. You receive the interest on a half-yearly basis. If you check the third-party websites, you can conduct a competitive analysis to see which banks offer a high-interest rate.

4) Joint account: Another crucial advantage of owning an NRE account is you can open it jointly with another NRI, i.e. with your wife or your children.

5) Mandate holder: You can appoint a mandate to handle your account on your behalf. He/she could be anyone from your family or your friend. Banks, generally, provide chequebooks and ATM card to the mandate holder. Most of the times, NRIs select their parents as mandate holders.

An NRE account is a unique investment option that offers you a plethora of advantages and  streamlines your finances appropriately.

How to open a bank account in India?

The first question that arises in the minds of the salaried employees is what to do with the left-over cash from their first income. Should I invest them in the form of fixed deposits or mutual funds or the stock market? Should  I deposit them in a bank account that is easily accessible? If you know you might require the funds at the time of emergency or for day-to-day usage; then bank accounts are the ideal option.

However, it is not just depositing money and withdrawing them. You have to prepare a bit and give it some thought. Banks in India offer different types of bank accounts such as savings, current and salary. There is also a bank account for various segments like women, children, senior citizens and NRIs.

The bank jargons are not as intimidating as they may seem to be. Following are the steps to open a bank account in India:

1) Eligibility: You have to fulfil specific bank terms and conditions before opening an account.    Some of the criterions are:
  
- You must be an Indian citizen
- You must be 18 years old and might require your parent’s signatures as a consent
- You should have a minimum amount of money to invest in the account. The amount could vary from bank to bank

2) Banks: Not all banks follow the same principle when it comes to bank accounts. Ensure to seek information from your local bank   to understand the type of account they offer, their features, etc. You could also know from your elders which bank follows a hassle-free application process. Banks are generally categorised as large chain banks and the local ones. The large chain banks are spread out in different cities and towns. The local ones are known to offer personal and human experience. They tend to be friendlier.   

3) Bank account: Now, select the type of bank accounts you want to invest in. They could be either current or savings. Each of these accounts boasts of various characteristics. A current account is useful if you will need cash for daily purchases. A savings account comes handy during a medical emergency or for fulfilling your long-term goals. You can also check the aspects of such accounts online before approaching the bank.

4) Documents: You need to have your files in place if you want the application to get approved immediately. The essential ones are:

- PAN card, Aadhaar, passport, driving license, voter’s ID, ration card, etc. These are used as your ID and address proofs
- You also have to furnish your employment details like payslips, ITR papers, etc.
- Application form
- Recent photographs

5) Open the account: Visit the bank branch and open the account. Those who are opening an account for the first time should visit the bank and get it done. The  advantage   of doing so is that you can clarify your queries instantly.  The bank representative also approves your application quickly.   Depending on the type of bank, you can also open bank account online or over the phone. By opening the account online, you can scan and upload the documents. If you open it via phone, the bank representative collects the papers.     

6) Account essentials: Once the bank approves your application, they will send you all the papers related to your bank account such as debit card PIN, your bank account number, etc as a part of the kit. If you find any error in any of the details, contact your bank representative right away.

Follow these 6 simple steps and streamline your finances today!

What is a car loan? What is the document required for salaried and self-employed professionals?

A four-wheeler was considered a luxury item in the olden days. It was more of unlocking a milestone as you would have to shell out lump sum money without any financial aid such as loans. Today, possessing a car has become a necessity. With different types of models being introduced by automobile companies almost every day, the costs of these four-wheelers have increased and almost inaccessible for lower as well as the middle-class segment.

You need a car for your daily work commute, duties or leisure. Therefore, considering the rise in the price and new cars, banks and other financial institutes have started offering loans for the same. You can either opt for a personal mortgage or a  car loan.
  
What are car loans?

Known as four-wheeler loan, is a secured loan where you have to keep your vehicle as collateral. Based on the type of vehicle, the lenders offer you the loan amount. In this case, the interest rates are less as you provide security to the lenders. If you do not repay the loan on time,    the lender will sell off your car to cover the loan amount.  
 
To get  the loan, you have to fulfil certain conditions. The car loan requirements are: 

1) You must be an Indian national to apply for the loan
2) You should be a salaried, self-employed or business owner to avail of a car loan
3) The minimum age to apply for the loan is 21 years. The maximum limit is 65
4) Salaried employees should be in employed in their current job for at least a year. On the other hand, self-employed professionals should be operating their existing business for minimum 2 years 
 
What car loan documents should the salaried and self-employed people produce to the lenders?

Lenders seek for various documents from the applicants mainly to gauge their credibility and repayment capacity. Most of the lenders prefer to provide loans to individuals who are creditworthy. For this purpose, lenders check the applicants' credit history and  financial profile. Some of the components could vary from borrower to borrower. The car loan documents are slightly different for salaried and self-employed professionals. They are as follows:

1) Salaried employees:
• ID proof such as Aadhaar, PAN card, driving license, passport, voter’s ID, etc.
• Address proof like Aadhaar, PAN card, passport, utility bills, life insurance policies, ration card, etc.
• Age proof comprises of  birth certificate, school certificate and likes
• Income proof should include your last 3 months payment slips, past 6 months bank statement
• Signature proof
• You will also have to show the proforma invoice that contains the price quoted by at the time of purchase of the car. The car loan amount will be based on the cost of the vehicle 
 
2) Self-employed professionals:
• ID proofs such as Aadhaar card, PAN card, driving license, passport, voter’s ID, etc.
• Address proofs like Aadhaar, PAN card, passport, utility bills, property papers, ration card, etc.
• Age proofs include birth certificate, school certificate, Aadhaar, etc.
• Your bank statement should be of past 6 months
• You have to show your previous 2 years income tax return. Besides, you also have to furnish the   documents such as audited balance sheet, profit and loss statement, etc.  
• Office proofs like maintenance bill, utility bills and business registration copy
• You will also have to show the proforma invoice based on which the loan amount would be provided

These are some of the car loan documents required to get your loan quickly. If each of these is in place, then car loans are the ideal solution.  If you are unsure about the documents, you can always call the lender's customer care number for reconfirmation

5 benefits of student forex card

Getting through the coveted university calls for celebrations. However, it is after the news is sunk in that we realise the actual work is yet to begin. From to-do list to arrangement of documents, everything has to  be settled. But we forget the foremost thing – finances. How are you going to manage food, entertainment, tuition and other such expenses?  
This is where a student forex card comes into the picture.  They offer numerous facilities that make students life easy.

What is a student travel card?

Apart from the homesickness issue, students face several financial challenges. They also have to follow a certain protocol  when studying abroad. A student travel card covers all the prerequisites. They are offered by all banks and some non-banking financial companies (NBFCs). Some lenders charge a nominal fee of INR 100-250 while some provide it for free.

These cards cover the following expenses:
- Day-to-day purchases abroad
- Flight tickets
- Accommodation
- College fees

However, countries like The United States of America (USA), The United Kingdom (UK), Canada and Australia allow limited withdrawals from their ATMs in one go. Some banks charge for withdrawals.

The benefits of carrying a student forex card along are:

1) No exchange rates: Students can get past the fluctuating exchange rates as they are fixed at the time of purchase of the card. Nevertheless, you will have to keep a tab on the prices when you   are preparing for your travel. When the currency of that concerned country is strong, you can lock your rate as that would be considered the same when you conduct transactions there. 

2) Wide acceptance: Student travel cards are widely accepted in the international online merchants. You can use the card for your stay and paying the college semester fees. You can even shop at the most luxurious mall overseas by just swiping the card, and all this include no exchange rates.

3) Reload the card: With the invention of the internet and smartphones, it is possible to reload the forex card on the move.  All you need is relevant balance in your account for seamless transaction abroad.

4) Security: Imagine a scenario where you have lost your cash, especially when you are in abroad to study? Scary, right? The reason why ISIC forex card eliminate that fear is that it is not linked to your bank account. Also, it is encrypted with a pin and chip that makes it  all the more secured means of managing finances.   

5) Replacement cards: Another crucial benefit of owning a forex card is that banks offer a replacement card in the starters kit. You need to first block and report on the stolen card.  Then you can continue using the replacement card. 

HDFC Bank offers ISIC student  forexplus card that gives you a wide range of discounts on food,   travel, accommodation, etc. You can also reload it anywhere, anytime. To enjoy a stress-free educational experience abroad, apply for a student forex card today!

What is life insurance? 6 types of insurance policies

When it comes to financial planning, you are presented with an array of options to choose from. Most of the people in India are moving to a nuclear family concept. Insuring you and your family members takes precedence over everything else. Agents offer different types of life insurance policies to their customers. Before learning in detail about each of them, let us understand what a life insurance policy is and what is its significance. 

What are life insurance plans?

It is a shield that protects your family even after your death. It provides lump sum money to the nominees of the policyholder. It also keeps the financial plans of your family on track.

What are the types of life insurance policies?

When you ask about life insurance policies to your agent, be prepared to receive an avalanche of information. As mentioned above, the primary function of life insurance is providing protection. However, some plans allow you to plan your future and helps in building your wealth. The types of life insurance plans can be classified as:  

1) Term life insurance: This plan provides a death benefit to the beneficiaries only if the policyholder dies  during a specified period. If the insured person lives on beyond the time frame, you cannot make a death claim. It acts as an income replacement for a few years and is affordable.  It is further broken down into 3 parts: 
- Level term life insurance
- Decreasing term life insurance
- Increasing term life insurance

2) Whole life insurance: It offers your coverage throughout your lifetime. But the policy should be an on-going one. It also consists of a cash value that can increase over time. You can either withdraw the cash value or take a loan out of it.

3) Endowment policy: One of the important life insurance plans is the endowment policy where the amount is payable to the insured, in case he/she is alive until the maturity date. It is a long time financial as well as a savings plan.  If the insured dies during the policy term, then the nominees get the   bonuses, participating profit, etc. 

4) Savings and investment plans: This policy assures you a lump sum money for future expenses. Apart from fulfilling your long and short-term goals in the form of savings, it also offers you an insurance cover.

5) Retirement plans: It is the means through which you receive income during retirement. It helps you build a retirement corpus. Upon maturity, these plans are invested for generating regular income that is termed as a   pension. They are further divided into: 
- With cover or without cover plans
- Immediate annuity plans
- Deferred annuity plans   

6) Child insurance policy: One of the types of life insurance plans that parents are investing upon nowdays is child insurance. It meets your child’s future financial requirements. From the time your child takes bir   th, you can start investing.  Once the child turns 18, you can withdraw the savings. Some insurance plans do not allow immediate withdrawals at specific intervals  
  
So, life insurance plans are not about fulfilling yours and your family’s day-to-day expenses. It is a way to aid your family financially after the death of the breadwinner. It is recommended to opt for two different types of life insurance plans at various phases of life.