Everything you need to know about Atal Pension Yojana

The primary aim of Atal Pension Yojana is to promote saving for retirement. It especially targets the unorganised sector that has little to no retirement fund to fall back on. Announced in 2015, Atal Pension Yojana enables the non-tax paying daily wageworkers to enjoy the security of receiving a pension. Under this scheme, the benefactors receive a pension of Rs. 1000, RS. 2000, Rs. 3000, Rs. 4000 or Rs. 5000, once they attain 60 years of age.

Atal Pension Yojana Eligibility

To be a benefactor under the Atal Pension Yojana, a person must check all the following criteria-

• Must be a citizen of India
• Age at the time of application must be between 18 years and 40 years
• Should be able to contribute to the pension fund for a minimum of 20 years
• Must have a bank account that is linked to Aadhaar
• Must possess a valid mobile number
• All previous benefactors of Swavalamban Yojana receive automatic migration to Atal Pension Yojana

How to Apply for APY Scheme

• Applications are accepted at all nationalised banks, post offices as well as through the online mode
• Banks accept applications to the APY. You must fill out the form available with the bank. You may also download and submit the form online.
• Applications are available in English, Hindi, Bengali, Gujarati, Kannada, Marathi, Oriya, Tamil, and Telugu
• Submission of a photocopy of your Aadhaar Card is mandatory
• Ensure linking your valid mobile number to your bank
• A confirmation message approves the success of your application

How Does It Work?

• You must pay a nominal monthly contribution towards your pension fund depending on the amount you want to receive each month and your age at the time of entry. Refer to the APY table to find out your monthly contribution.
• The earlier you enter the scheme, the less you need to pay per month. Monthly contributions are extremely small and vary from Rs. 42 to Rs. 1454.
• The scheme charges a penalty if you fail to pay your monthly instalment. The amount of penalty depends on your monthly contribution amount. It ranges from Re. 1 to Rs. 10.
• There is no provision for exiting the scheme unless in extreme cases of terminal illness or death. Even if the original benefactor dies before 60 years, their spouse can continue the fund and enjoy the pension benefits.
• On attaining 60 years, you can draw the pension from your bank or post office. However, you must first submit the request to draw the pension.
• In the event both the spouse and the benefactor dies, the corpus amount will pass on to a nominee.

The Atal Pension Yojana aims to assist the poor in their old age through nominal periodic contributions. It is a part of the National Pension Scheme and seeks to provide support for 88% of the workforce who have no financial support whatsoever. The Scheme empowers the several poor people and helps them take care of the health and other needs. In other words, it gives the elderly population their self-respect and security.

Things to keep in mind while applying for a car loan

Everyone dreams of purchasing a car of his/her own at some point in life. Owning a car gives you a sense of satisfaction and confidence. Moreover, it makes your life comfortable. You can commute to work in your own vehicle and need not depend on public transport. You can also travel to distant locations and enjoy a peaceful, leisurely weekend, and so much more.

Earlier, purchasing a car was difficult, since one had to spend a lump sum amount. Today, buying a car is much easier. Commercial banks and Non-Banking Financial Companies (NBFCs) offer an auto loan with EMI options, which do not strain your budget.

If you are keen on purchasing a car and wish to take a loan, here are five things you need to keep in mind-

• Interest rate
Depending on the car model, loan tenure, and your monthly income, the rate of interest on car loan varies between 8.5% and 14% per annum.

• Loan EMI
The car loan EMI depends on two factors- loan tenure and loan amount. Before you take a car loan, you must consider your current income status, any existing EMIs on previous loans etc. Ideally, the car loan EMI should not exceed 40% of your monthly income.

• Processing fee
This is a non-refundable fee that the lender charges to cover the incurring cost while evaluating the loan application. The fee amount can range between Rs.1000 to  Rs.10,000.

• Pre-payment charges
It is wise to pay the loan amount in advance since the value of the car depreciates over time. However, loans with a fixed rate of interest have high pre-payment charges that can go up to 5% of the outstanding loan amount. Some lenders have restrictions on the total amount and number of pre-payments allowed in a year or during the loan tenure.

• Loan amount
The lender determines the loan amount. It is advisable that you pay the maximum amount out of your pocket on the car as down payment. That will reduce the loan amount.

• Loan tenure
Most auto loan lenders offer loans for a period of 7 years. The longer the tenure, higher will be the rate of interest. One should try to repay the loan as early as possible since cars are depreciating assets. However, if you choose to go for a shorter tenure, you will have to pay higher EMIs.

• Credit score
A credit score is a major factor when it comes to the approval of your car loan. Usually, a credit score of 750 and above is desirable if you are planning to apply for a car loan. Many lenders use credit score to determine the rate of interest.

• Documents required
Before taking a loan for your car, make sure you have these documents in hand-
 Proof of Identity such as PAN Card, Driving license, Passport etc
 Proof of Address such as Voter ID, Passport etc
 Age proof
 Photographs
 Documents of your newly purchased car
 Income proof such as 6 months’ bank salary account statement or 3 months’ salary slip

Once you are familiar with the various parameters of a car loan, applying for the same seems convenient. To get the best deal on car loans, compare various offers from different lenders. You can also apply for a car loan online since it is timesaving and hassle-free.

8 things to know about Sukanya Samriddhi account scheme

The Sukanya Samriddhi Yojana is a small-deposit scheme, introduced by the Govt. of India under the ‘Beti Padhao, Beti Bachao’ campaign. The scheme aims to educate girl children and secure their futures. If you are concerned with the future of your child, then Sukanya Samriddhi Yojana account scheme is what you need to ensure her financial security.

Before you open your account with the Sukanya Samriddhi Yojana scheme, here are eight things you should know about-

• Opening an account
The parent/guardian of the girl child can open the account on her behalf at the post office or an authorized commercial bank. One girl child can have only one account in her name. If you have two daughters, you can open two different accounts, one for each child. In the case of triplets, this facility is extended to the third daughter.

• Age
You can open an account for your daughter during the time of her birth. The maximum age limit for opening the Sukanya Samriddhi Yojana account is 10 years.

• Rate of interest
Every year, the Government revises the rate of interest for Sukanya Samriddhi Yojana account for the current financial year. This interest is compounded annually, which means it will also be credited on a yearly basis. Currently, the revised interest rate is 8.6%.

• Deposits
Earlier, a mandatory deposit of Rs.1000 was required for opening and maintaining the account. Now, the minimum deposit amount is Rs.250. A maximum amount of Rs.1.5 Lakhs can be deposited in a financial year. You will have to deposit a certain amount (preferably in the multiples of Rs.100) every year, starting from the year you open your account. The deposits can be made to this account for the next 14 years. Ideally, you should make the deposit before the fifth of every month in order to get the highest interest rate.

• Penalty
If the minimum deposit criteria for a financial year are not met, a penalty of Rs.50 will be levied on an annual basis. If the account holder fails to pay the penalty amount, the amount deposited will receive an interest rate of 4% only.

• Maturity
The account will reach maturity when the girl child completes 21 years, or when she gets married, whichever is earlier. When your account reaches its maturity age, you will receive all your money along with the accrued interest.


• Withdrawal of money
50% of the deposited amount can be withdrawn once the girl child turns 18 years old. The amount withdrawn can be utilized to fund the child’s higher studies. The remaining amount can be withdrawn when she turns 21. The money withdrawn can be used to meet her marriage expenses. Once the girl completes 21 years of age, the account must be closed.

• Tax benefits
If you are an account holder with the Sukanya Samriddhi Yojana scheme, you are eligible for tax exemptions under Section 80C of the Income Tax Act. You can avail of these exemptions on interest and during the time of withdrawal.

The Govt-aided Sukanya Samriddhi Yojana scheme is a boon to many parents, especially low-income people, who cannot afford to provide their children with basic education. Apart from education, the scheme also helps regulate child marriage and encourages girls to move ahead towards a prosperous life.

Features and benefits of taking a loan against LIC policy

Life Insurance Corporation (LIC) is the largest public sector company in India offering life covers to people who are looking for insurance. Founded in 1956 and headquartered in Mumbai, LIC has more than 2000 branches and lakhs of agents across the country. In addition to insurance policies, the company also provides loans against LIC policy. Currently, a loan against an LIC policy is one of the simplest and easiest loans to avail in the finance market.

Key Features

Here are some of the key features of a loan against LIC policy-

• This loan can only be availed by LIC endowment policyholders
• The given loan amount is an advance on the surrender value
• The interest loan on the loan varies between 9-11%
• The loan amount, which you can borrow, depends on the LIC policy’s surrender value
• The LIC holds the insurance policy as collateral. In case the applicant/borrower fails to repay his/her loan, the company can withhold the insurance policy
• The company has the right to terminate the insurance policy in case the loan amount exceeds the surrender value
• In case the LIC policy matures before full repayment of the loan, the company can deduct the required amount before passing over the proceeds of the policy to the policyholder
• If the applicant fails to pay the interest before its due date, the interest amount will automatically be added to the principal. Accordingly, the new interest will be calculated.

Benefits of Taking Loan against LIC Policy

Here is a look at some of the benefits of taking a loan against LIC policy-

• The interest rate is relatively low on loan against LIC policy. Usually, the company charges a rate varying between 9-11% on the loan in comparison to banks those charge interest rate ranging from 16-24%.
• LIC does not check the applicant’s credit score before issuing the loan. Therefore, a loan against LIC policy is beneficial and convenient for those who have a low credit rating.
• Unlike banks, LIC does not charge any amount on loan pre-payment of loans or as processing fees.
• If the applicant is able to repay the existing loan against a LIC policy successfully, the company allows him/her to apply for loans in the future
• LIC allows financial flexibility. The applicant can pay the interest on the loan amount semi-annually.
• Since the policyholder is technically borrowing his own money, the process of loan disbursal is faster
• The applicant can apply for a loan against LIC policy online, which makes it more of a convenient option for you

The Life Insurance Corporation of India is one of the most reputable companies in the finance market. If you are considering taking a loan, you can certainly apply for the same with LIC. However, keep in mind that not all LIC plans offer loan against the insurance policy. Therefore, you need to look at the policy carefully before applying for one.

How to claim your home insurance online

Investing in a property ensures financial security in the years to come. Therefore, having a comprehensive home insurance policy to protect your property is of utmost importance. While purchasing an insurance policy for your home, you must be aware of the inclusions and exclusions in order to initiate a smooth and hassle-free claim process. The claim process includes a few steps, following which you can register your claim with the insurer.

This is how you can file a claim for your home insurance online-

• Contact your insurance provider
In case of an accident or any damage, the first thing you need to do is contact your insurer and inform him of the same. You can get in touch with him over phone or email.

• Lodge an FIR
The next step is to lodge a complaint at the nearby police station. In the event of an accident or a burglary, you will need to inform the policy before filing your home insurance claim.

• Get evidence of the damages
You should take pictures of the damages sustained by the property, if possible. This helps speed up the claim process.

• Get the damage evaluated
In case of an accident, you should immediately have the damage evaluated by an authorized representative of the insurance company.

• Submit all supporting documents
In order to proceed with the claim process, your insurer will ask you to submit essential documents that are necessary to support the claim, based on the nature and extent of the damage. Therefore, it is advisable that you keep your policy documents handy.

Once you register your home insurance online and follow the above steps, the insurer will verify the claim. You will be provided with a suitable reimbursement once the claim is validated.

Documents required at the time of raising a claim-

You will need to submit the following documents in order to support your home insurance claim process-

• A duly signed claim form
• Evidence of the event- the extent of damage and nature of loss
• A copy of the FIR
• Repair bills and receipts
• Invoices of belongings owned by you
• Policy details- address and identity proof, policy number etc.
• KYC form attached with a photocopy of any of the KYC documents such as Aadhar card, Voter ID, Passport etc. for all claims that amount to Rs.1 Lakh and above
• NEFT details along with a cancelled cheque

If you want your home insurance claim to settle favourably, you must be careful while registering the claim online. Make sure that the details entered by you are correct and authentic.

The online procedure is much more convenient and quicker so you need not wait long for the claim to be settled. In case you face any difficulty, you can call on the helpline number and seek assistance from the customer care executives.

Everything you need to know about IMPS fund transfer

Due to its swift service, Immediate Payment Service or IMPS has become one of the most convenient modes of money transfer in India. It allows you to send money with just a click, whenever and wherever you want. Read on to know more about IMPS fund transfer.

What is IMPS fund transfer?

IMPS is an electronic method of transferring money immediately to the beneficiary or payee account. An IMPS transfer can be done anytime and anywhere, including on Sundays or on bank holidays through various mediums such as ATMs, SMS, internet banking, mobile banking etc.

Registration for IMPS fund transfer

In order to start transferring money through IMPS, you will have to register yourself in the following manner:

• You must register for the mobile banking service of the respective bank
• You will be required to have the Mobile Money Identifier (MMID) and Mobile Banking Personal Identification (MPIN) from your chosen bank. The beneficiary should also have this.
• You can download the application for mobile banking from the respective bank, or you can also utilize the SMS facility if the bank has an SMS IMPS facility.

IMPS fund transfer through net banking

If you want to transfer money through net banking, you will have to register the person you want to send the money to, by providing his/her IFSC code, bank account number and the bank name. Different banks have different transaction charges, and it mainly depends on the amount of money you will be sending. The rates start from Rupee 1 to Rs.7, but most of the banks generally do not charge more than Rs.5 for each transaction.

IMPS fund transfer on your phone

In case you want to carry out an IMPS fund transfer on your phone, then firstly, you will have to log in to your bank’s application. Keep the valid mobile number of your beneficiary and MMID ready and select the IMPS option. You will have to provide the beneficiary’s mobile number, MMID, amount of money, along with your MPIN for transferring the funds. After you are done with all this, you will get a text message notifying you of the money being debited from your bank account. Remember to keep the transaction reference number for future references.

How can you receive money through IMPS on your mobile phone?

In order to get money through IMPS on your mobile phone, you will have to provide your mobile number and MMID to the payee. Once the payee has transferred the money, you will get a text message on your phone informing you about the amount credited in your bank account. Make sure that you keep the transaction reference number for future purposes.

IMPS fund transfer is one of the safest and secure ways for transferring money. Apart from its convenient and easy nature, it makes sure that you get your money as soon as possible.

How can you open an NPS account online?

After you retire, it is important that you have a stable financial condition so that you get to live your sunset years amongst peace and harmony. The National Pension Scheme is a scheme, which was launched by the government of India, with the motive of expanding the retirement fund to all the people, who apply for this scheme. It is managed and regulated by the Pension Fund Regulatory and Development Authority (PRFDA).

Types of NPS account

Generally, there are two types of NPS accounts:

1. Tier-I account- The tier-I account is a non-withdrawal permanent retirement account. However, according to the new rules and regulations, account holders can make premature withdrawals after they complete 15 years in the service.

2. Tier-II account- The tier-II account grants you permission to make unlimited withdrawals and functions as a savings account. The only catch is that withdrawing money from this kind of an account is comparatively more cumbersome than withdrawing money from a savings account.

How can you open an NPS account online?

There are two ways, through which you can open an NPS account online and they are:

1. Registration through PAN card

• Your KYC or Know Your Customer will be handled by the bank, and because of that, your savings account must be in an NSDL empanelled bank.
• The details that you provide in your form should completely match the details that are already with your bank. If your details do not match, then the bank has every right to reject your registration application and then you would have to contact the bank personally.
• Make sure that all the compulsory areas are duly filled
• Upload your signature and scanned picture
• In order to make the initial monetary contribution, you will have to do it through Internet Banking

2. Registration through AADHAR card

• Your valid AADHAR card should be linked to your valid mobile number
• You will receive an OTP on your registered mobile number. Once you provide the OTP number, your KYC will be done and authenticated.
• Once your KYC is done, your picture and all your relevant information will be extracted from the AADHAR database and used for your NPS online form
• You will have to fill out the remaining compulsory fields online
• You will have to upload your signature in a jpeg or jpg format, for registration purposes. Remember that the file size should be between 4 kb to 12 kb.
• You can make your initial contribution to your online NPS account through debit card or credit card

Opening an NPS account is one of the best things you can do for yourself keeping in mind the years to come. Retirement does not have to signify financial trouble and that is why the National Pension Scheme has become an imperative option for many.