Why you should use a gold loan calculator before applying for one

Gold is an essential part of almost all Indian families, big or small. Taking loan against gold has been an established practice even before formal banking was established. Until today, it is among the best options for taking a loan against collateral. It is easy to get approval and comes in handy during emergencies.

A lot of banks and non-banking financial companies offer gold loans at lower rate of interest compared to a personal loan. Other advantages include flexible tenure and minimal document requirements. However, you must always use a gold loan EMI calculator before applying for one.

How to Use a Gold Loan Calculator

• Since gold prices fluctuate, the value of your jewellery will determine the value of the loan you can get
• To get your jewellery back, you must be able to repay the principal amount as well as the interest in the form of Equated Monthly Instalments (EMIs)
• With data such as loan amount, the rate of interest and tenure, you can get an accurate idea of the EMI you will have to pay each month
• Instead of the amount, some calculators allow you to input the details of each of the gold jewellery you wish to use as collateral. You have to enter details such as the weight of the jewellery and the purity of the gold.

Why Should You Use a Gold Loan Calculator?

Here are some of the reasons why you should use a gold loan calculator before taking a loan against gold-

• It makes tedious calculations fast and free of human error
• With the calculator, you can play around with various combinations of the three (the principal, the rate of interest, and the tenure) until you find the EMI you can afford to pay without taking additional financial burden or risking defaults
• You can compare the EMI you have to pay for different lenders and choose the lender accordingly
• The gold loan EMI calculator uses the prevalent valuation of gold for the calculations
• You get an idea of the Loan to Value ratio (LTV ratio). The higher this ratio is, the more risk you are taking with your gold.
• The calculator gives you a break-up of the repayment structure of the loan
• By knowing the EMI before you take the loan, you can make necessary adjustments to your budget to accommodate the loan

Since the gold loan is a secured loan, it does not usually require income proofs or CIBIL score. However, you must be careful with the collateral otherwise, the chances of being duped are real. Do your research on the lender and check LTV ratio and EMI with the gold loan calculator. Making an informed decision helps you easily repay the loan by budgeting accordingly. So never skip the crucial step that can jeopardise your treasured gold jewellery.

Advantages of using RD interest calculator

A recurring deposit is a form of investment that enables investors to save money through monthly payments. This money reaps attractive interest and is generally more flexible in comparison to fixed deposits. If you want a safe investment that allows you to save money for rainy days, this proves very convenient. However, if you earn an interest of more than Rs. 10,000 in a year, you attract a 10% tax deduction at source.

How to Use an RD Interest Calculator

Here are the steps to use an RD Interest Calculator-

• You can calculate the amount you get on maturity, i.e. the sum of principal and interest you get at the end of the recurring deposit term
• You must input values such as deposits every month, tenure, and rate of interest to get an instantaneous result
• Recurring deposits are compounded on a quarterly basis. The rate of interest varies between 7% and 9%. The interest may be higher for senior citizens.
• The formula used for calculation is M = Rx[(1+i)^n-1]/[1-(1+i)^(-1/3)]. Here M stands for the amount you will receive on maturity. R is the instalment you pay every month and ‘n’ is the number of quarters. ‘i’ stands for the rate of interest.
• You can alter the values of the variables to come at a target maturity amount that meets your financial goals
• There is no restriction on the number of times you use the calculator
• The RD interest calculator will not show the TDS eligible for deduction

Advantages of Using an RD Interest Calculator

The multiple advantages of using an RD Interest calculator are-
• You can calculate the instalments you need to meet every month to fulfil any upcoming financial requirements
• You can calculate the time for which you need to open a recurring deposit to meet a short-term goal
• If you pay Income Tax, using an RD calculator helps you predict the changes in the amount of taxes you must pay
• You get an idea about how much you can grow your wealth with a recurring deposit
• You get to compare the recurring deposit schemes offered by various banks and can choose the one, which profits you the best

If you are saving for a financial goal such as annual education fees, a recurring deposit is a very suitable choice. Although your liquidity is limited, you get the opportunity to accumulate every month. Using the Recurring Deposit calculator, you can ensure that you meet the financial goal within the time constraint. An incredibly handy tool, you can use an RD calculator free of cost.  Since the calculation of maturity amount is the same irrespective of the bank in which you have your account, it has a universal application.

Process and benefits of using NEFT fund transfer

NEFT or National Electronic Fund Transfer is an easy and convenient process, which allows any individual or company to transfer money from a bank to another over the internet. It is relatively fast and on an average takes 1 hour for successful transfer.
Although there is no limit to the number of transactions you can do in a day, there is a maximum limit of Rs. 50,000 per transaction.

The transfers are extremely secure and take place in batches. The transfers take place in about 12 batches on a weekday between 8 am and 7 pm and around 6 to 8 batches between 8 am and 1 pm on a Saturday.

The process of NEFT Transfer

• Transactions through NEFT are only possible when both the remitting bank as well as the destination bank is a part of the NEFT network
• You must first ensure that you have net banking facility active on your bank account
• Log in and go to the relevant section of your profile that deals with NEFT transfer
• Enter the details of the beneficiary such as their name, account number, IFSC code, and address in the relevant fields
• On accepting the terms and conditions and confirming the data you just provided, a security password will be sent to your registered mobile number
• Once you enter the security password, a link between you and the beneficiary’s account gets active up to 16 hours
• Remember to select Inter Bank Transfer and NEFT as the type of fund transfer. Finally, enter the amount and confirm the transfer.
• You get intimation on the successful transaction

This process is also possible offline by filling up a NEFT form available at all banks within the NEFT network.

Benefits of NEFT Transfer

• It is a time-saving process
• It makes banking so much more efficient. No longer do you have to wait in long queues and count cash for doing a transaction.
• You can transfer a large sum over a secure network
• Since the process is paperless, there are fewer chances of fraud or theft. Moreover, it is environment-friendly.
• Money transfers can take place from the convenience of your home or office

NEFT is a system of fund transfer that has simplified banking. It has also revamped the image of banks from time-consuming to efficient. The high security of this process of fund transfer makes it all the more attractive. If you are in a hurry to make a payment or cannot go to the bank, NEFT is a blessing for you.

How to use car loan EMI calculator

A car is a commodity that modern-day lifestyle demands. Not only does it make everyday travel hassle free but also considerably safer. However, it is not always possible for a middle-class family to accumulate a lump sum that will help them afford a car of their dream. This is where a car loan plays a significant role. Nowadays getting a car loan is not a huge challenge. Many institutions offer car loans through a simple and transparent process.

However, before availing a loan you should make sure that you are able to pay the Equated Monthly Instalments (EMIs) without excessive financial burden or risking your solvency. The best way to ensure this is by checking your EMI for a combination of principals and tenure on a car loan EMI calculator.

How to Use an EMI Calculator

• It is a tool available free online and at any bank. You have to provide information such as principal amount, tenure and rate of interest.
• The principal is the total money the banks lend you. The EMI increases with the increase in principal.
• Since you will pay the EMI every month, calculation of the tenure is done in months and not in years
• The rate of interest varies from bank to bank, depending on the type of loan
• On entering the data, the calculator will instantaneously show you your EMI. You can play around with the variables until you reach an EMI you know you will be comfortable paying.
• You also get an amortisation schedule or your schedule of payments over the tenure of your car loan with an EMI calculator
• The formula the calculator uses is [P x R x (1+R)^N]/[(1+R)^N-1]. Here P stands for principal, R stands for rate of interest and N stands for tenure.

Benefits of Using an EMI Calculator

The key benefits of using an EMI calculator for car loan are as follows-

• You can make an informed decision with respect to your existing financial condition
• You can determine the amount you are taking as a loan and evaluate how long will it take to pay back without burdening your family’s expenses
• You get an opportunity to rearrange your budget to accommodate the car loan EMI before taking the loan
• You can compare car loans of different banks and choose the one that offers the best rate to suit your needs
• The results are accurate and instantaneous. This saves you time and ensures there is no human error.
• It is a free tool that you can use innumerable as many times as you need

A car loan EMI calculator is a generic tool that is widely available and can help you prepare yourself financially before buying a new car. Not predicting how a loan financially affects you can have terrible long-term consequences for you. 

It is crucial that you calculate your EMI on a calculator and compare the EMI of different institutions to make the most profitable decision. Otherwise, you may be in for unpleasant surprises, which you are not prepared for.

Types of NRI banking services available in India

An NRI or Non-Resident Indian is a person who lives abroad for a long time for job or business purposes. As an NRI, you cannot use the regular account. There are different NRI banking accounts that deal with foreign currency where you can open and maintain your account. You can also invest in shares and stocks through these accounts. The details of the various accounts used for NRI banking services in India are as follows-

Non-Resident Ordinary Rupee Account (NRO Account)

• You can deposit in denominations of Indian Rupee in this type of account. You may also open such an account jointly with a resident of India.
• The types of accounts you can hold include savings account, current account, recurring deposits, and term deposits
• This account pays a large interest. The interest is taxable and includes all surcharge and educational cess.
• You may choose to convert your existing account in a bank to an NRO account by declaring your status as an NRI and vice versa
• Nomination facility is available with this account
• The money in this account is non-repatriate. You cannot transfer the funds of this account to your NRE account or any account you hold abroad.
Non-Resident (External) Rupee Account (NRE Account)
• The account may be in the form of savings account, current account, recurring deposit or fixed deposit
• Only an NRI can open this account. No resident, even with a Power of Attorney can open this account.
• You may maintain the account jointly with another NRI but not with an Indian resident
• The deposits in this account are eligible to be freely repatriated
• The balance and interest are free from income tax and wealth tax
• You cannot deposit or withdraw Indian Rupees from this account. However, it is stored in Indian Rupees at the prevailing exchange rate.
• Transactions between other NRE accounts and accounts in banks abroad are possible through this account
• You can get loans against your fixed deposit or a security
• The account facilitates nominations
• You can convert your NRE account to a regular account on returning to India

Foreign Currency Non-Resident (Bank) Account (FCNR (B) Account)

• You can only open term deposits with a maturity between 1 year and 3 years
• You can maintain the account in a foreign currency
• Transactions in Indian Rupees are not possible through this account
• You can transfer money from this account to anywhere outside India in any foreign currency
• You may choose to receive the money in Indian Rupees at buying rate
• The deposits in this account receive tax exemption benefits
• A resident with a Power of Attorney can operate this account. You can also open the account jointly with a resident.
• Nomination facility is available

Understanding the fine differences between the three types of NRI banking accounts makes it easier for you to save money in your home country or send money to your relatives. The easy conversion of a regular account to an NRI account makes banking very convenient for millions of NRIs all over the planet. In this way, you can easily maintain your wealth in India while you are abroad.

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.