Car loan for new vs used car: key aspects

When it comes to buying their first car, most people are confused about a few things. Many believe that it makes more sense to purchase a used car as opposed to a new one. After all, a used car costs much lower than a brand new one. But what you need to remember is that while a used car may cost almost half the price of a new one (depending upon the age of the car), you may have to spend quite a lot of money on servicing and maintaining it. You may also end up paying higher insurance premiums. These are just some key aspects of new vs used cars. Now, let’s take a look at the key aspects affecting new vs used car loans.

The amount of the loan: Individuals buying a new car do not have to worry about the unknown history of the car. New cars also come with manufacturer warranties and guarantees for almost up-to 4 years or the number of miles clocked. Banks and NBFCs take this factor into consideration while providing the car loan. The disbursed amount of the loan for a new car is generally higher as opposed to an old car, which costs less. In case of used cars, the loan-to-value ratio is much lower. Also, you may get up to 100% finance for the on-road price of a new car, whereas for used cars, you may get only about 70%-80% finance of the car’s value.

The rate of interest charged against the loan: It does not matter whether the car is old or new, if you purchase it on a loan; you have to pay a certain interest rate. It may surprise you to know that the rate of interest charged on a used car loan is higher than the interest charged on a new car, that too by a whopping 5%-7%. One of the main reasons for the high rates of interest is that the loan amount is much smaller in comparison to new cars. Also, lenders find it less risky to provide loans on new cars, because the resale value and demand for new cars is higher.

The duration or tenure of the loan: If you buy a new car, you are usually provided with longer tenures of 5 to 7 years. However, when it comes to used cars, most lenders provide repayment tenure of 3, or at best 5 years. The loan tenure of used cars is determined basis the age of the car as well as the loan amount. Lenders are usually comfortable offering car loans for used cars which are aged within eight years. For instance, if a used car is four years old, then the car loan tenure is typically under 4 years, however if the age of the car is more than 5 years, the tenure of the loan is usually within 3 years.

5 factors that affect car loan interest rate

Buying a car on loan has become relatively easy in today’s times thanks to the various bank and NBFC lenders who offer loans at competitive interest rates. It is also possible to do an easy, comparative analysis of the various loans offered by the various lenders, simply by doing a quick google search.

However, there are certain factors that are also in the control of the borrower which can affect the interest rates charged on car loans to a great extent. Let’s find out what they are:

The credit history of the borrower: Lenders today ask borrowers to provide their CIBIL or credit scores while considering a loan application. Borrowers, who can prove their credit worthiness with a credit score of 750 points and above, are more likely to get their loans sanctioned. Such individuals can also negotiate the car loan interest rate offered to them. If your credit scores are less than 750 points, you may have to pay a higher rate of interest on your loan.

The income of the borrower: You should be able to convince the lender that you have the capability to repay the loan. As such, your income is a detrimental factor that affects the loan taken. Lenders are more than willing to disburse loans to individuals with low debt-to-income ratios since it shows them that borrowers would not default on EMIs. The income of the borrower serves as an assurance to the lender that the loan would be repaid within the chosen tenure.

The down payment: The size of the loan you take is another factor affecting the interest rate. If you opt to make a higher down payment, you are automatically reducing the size of the loan. The higher the down payment you make on your car loan, the lower the interest rates offered by the lender. Opting for a higher down-payment assures the lender that their risk is reduced considerably, while also assuring them of your strong financial position.

The tenure of the loan: Loans for cars are offered for up-to 7 years, so that borrowers can pay them off in affordable equated monthly instalments or EMIs. However, you can get a lower rate of interest if you choose lower loan tenure. Ideally, you can get the best interest rates if you opt for a mid-term, 3-4 years tenure loan.

The age and model of the car: The model and age of the car is also considered by lenders when the interest rate on the loan is determined. The latter is especially true in the case of used car loans. The rate of interest offered on brand new cars, especially new models marketed aggressively by auto dealers, is comparatively lower since there is a sales agenda attached to it. In case of used cars, the interest rates increase according to the age of the car. Interest rates of older cars are higher.

5 top movie ticket booking apps in India

We Indians love movies, be it Bollywood, regional or Hollywood. Movies that cater to our plethora of tastes are released every week and we wait expectantly to watch our favourite stars in action on the silver screen. A survey revealed that Indians watch on average three movies a month!

In the old days, you would have to set out for the movie theatre well in advance of the show time because you would have to queue up outside the ticket counter for hours to get your hands on that coveted ticket. Sometimes they would run out of a ticket and you would have to return home disappointed.

However, all these hassles can now be evaded with an online movie ticket booking app. Here are the top five movie ticket booking apps in India-

1. BookMyShow: This movie ticket booking app is right at the top of the chart of movie apps in India. This mobile app is every bit as popular as the website. If you want a seamless ticket booking experience then look no further. It gives you the latest information on movies and plays.  You can search by city and location and book tickets in any multiplex of your choice. This app, with a rating of 4.3 on Google Play, is available in Android, iOS, Windows and Blackberry.

2. Cinepolis India: It is yet another popular movie ticket booking app in India. With this app, you can book tickets anywhere in India where there is a Cinepolis movie theatre. When you book a ticket with this app, you earn points. When you have collected sufficient points, you can redeem them on your next purchase. It lets you choose your preferred sets and show timing and gives you a wide choice of payment options. The payment gateway is 100% secure.


3. Paytm.com: Planning to watch the first-day first show with your friends? Paytm.com can make it happen. This app is very user-friendly and even the most technologically hobbled person can use it. You can have your pick when it comes to seats (especially beneficial if the whole gang is going and you do not want to be separated), show timing and an array of movie theatres to choose from. Moreover, this app allows you to make use of Paytm loyalty cash back and discounts.

4. Justickets: This app is a one-stop option for all your ticketing requirements. You can book tickets not just for movies, but plays, concerts and sporting events. This app has collaborated with all major multiplexes to give you the best value for your money.


5. Ticketnew.com: This app is giving BookMyShow a run for its money, and is rated 4.0 on Google Play. It has become interchangeable with speedy and convenient ticket booking. To reward its faithful clientele, this app gives attractive discounts and deals.

Online Movie Ticket booking apps are a godsend to movie buffs because not only do they eliminate the need of standing in line for prolonged stretches of time, but also each of this app comes with attractive rewards.

All you need to know about RTGS transfer

Real Gross Time Settlement or RTGS is a mode of electronic transfer through which transfer of money happens on a real-time basis. In India, RTGS transfer is used for high-value transactions. The minimum amount that needs to be transferred is INR 2 Lakh. The beneficiary account receives the amount immediately i.e. in real time. RTGS payment is becoming very popular in India, because of its speed and convenience.

The chief difference between NEFT and RTGS is that in NEFT, the transaction takes place in batches whereas with RTGS the gross amount is transferred in one go. If you want to use RTGS, then you need an Indian Financial System Code (IFSC). Both the bank branches, the initiator and recipient, need to be RTGS enabled for the transaction to proceed.

If you have an online bank account, then you can utilize RTGS to make transactions by yourself.

Here is a breakdown of how RTGS works-

The whole process of RTGS transfer starts with you adding a beneficiary. If your transaction is online, then enable both Third Party Funds Transfer and internet banking facilities.

Here is how you add a beneficiary for RTGS payment-

1. Log in to your bank’s net banking website with your customer ID and password
2. Click on the Funds Transfer tab
3. Click on Add Beneficiary
4. Then click on Transfer to other Bank
5. Click on Beneficiary’s IFCS using the bank and branch names
6. Click on Add
7. Then Click on Confirm
8. After you authenticate yourself, you will receive a confirmation message

This is what you need to do to make a transfer through RTGS-

1. Click on the Funds Transfer tab and select Transfer to other Bank
2. Then select the account, your Beneficiary and enter all the relevant details
3. Click on ‘I accept the Terms and Conditions’
4. Go over the details of the transactions before you complete the transaction

Further information on RTGS transactions-

• Because of security reasons, The Beneficiary will be activated after 30 minutes. Your beneficiary will be displayed in the ‘View Beneficiary’ segment
• RTGS transactions will take place 24 hours after Beneficiary activation
• You can add or modify a maximum of 10 beneficiaries in the span of 24 hours

RTGS is a revolutionary technology that is immensely helpful in transferring a large consignment of money in real time with no hassles.

Documents required when you apply for a new car loan

You have decided to buy a new car. You have gone on multiple test drives, and you have finally zeroed in on the car that suits you.  Now you need a new car loan. With affordable EMIs, reasonable interest rates and hassle-free paperwork, more and more people are opting for a loan these days. With a car loan, the dream of having your own car is no longer far-fetched.

Before you head off to the bank to apply for a new car loan, you should know if you are eligible for a car loan and which documents you need to present to be granted a loan.

Are you eligible for a car loan?

Every bank has its own set of criteria through which they decide if you are worthy of being given a loan. They will want to look into-

• If you earn the minimum salary they stipulate to give a loan
• The yearly turnover of the company you work for
• The number of years for which you have been employed. If you are a salaried employee, you need to be employed for 2 years before you can apply for a loan.
• If you are self-employed, or in case of proprietorship partnership, your company should have a turnover of INR 300,000

Which documents do you need to produce to the bank authorities?

The documents that a bank will require depend on your source of income. You should consult your bank to get an exhaustive overview of the documents you might need. A bank wants to know if you have a good credit score to determine whether you would be able to repay the loan. Your income and your credit score also determine the interest rate that you will be charged.

Usually, these are the documents that you should have at hand if you are thinking of getting a new car loan-

• Proof of Identity (Aadhar, Telephone/Electricity bill, Passport)
• Proof of Address  (Aadhar, Telephone/Electricity bill, Passport)
• Proof of Income (Bank statement for the last 6 months, Salary slip and form 16, Income Tax Returns for self-employed people)
• Passport sized photograph
• Signature verification proof
• Pro forma invoice
Post-sanction paperwork and documents-
The paper trail does not end with the loan being granted. The follow-up paperwork includes-
• The loan agreement signed and sanctioned
• Margin money receipt
• Standing Instruction or SI, Post-dated Cheques, ECS Form, Security Cheques for SI and  ECS form etc

The documents that a bank needs proof that you are an Indian Citizen and that you are creditworthy enough to apply for a loan that you can pay back in due course. Do not hesitate to apply for a new car loan; it is about time you indulged in yourself and brought yourself that new car you had been longing for.

Features of NRO account you need to be aware of

If you are an Indian citizen living abroad on a permanent or long-term basis, you can still use banking facilities in this country. However, you will not be able to use the regular facilities available to resident Indians. There are special accounts that suit residents of India who live abroad better. An NRO account or Non-Resident Ordinary Rupee Account allows you to save your earnings or savings in India, in Indian currency. They are especially suitable form NRIs who have investments in stocks in India or another form of income where they earn Indian currency.

NRO Account Features

The key features of an NRO account are as follows-

• Deposits in denominations of Indian Rupee are allowed in this type of account
• You can open such an account jointly with a resident of India
• You can hold your NRO account in the form of savings account, current account, recurring deposits, and fixed deposits
• This account pays an attractive interest. The interest is not free from taxes, including all surcharge and educational cess
• You can convert your existing account in a bank to an NRO when you settle abroad. On returning to India, you can transfer the account back to a regular banking account
• The account allows nomination facility
• It is a non-repatriate account. Therefore, you cannot transfer money to or from this account to your NRE account. Neither can you transfer money to any account you hold abroad. However, you can transfer money to a different NRO account or a resident’s account.

Benefits of an NRO Bank Account

The benefits of an NRO bank account include the following-

• You are eligible for free chequebook and ATM card on opening the account
• Interest rates in an NRO account are higher than regular resident accounts
• Your existing investments in India can continue to reap returns as usual
• If you have a source of income in India, it can only be stored in an NRO account and not in any other type of NRI account
• You can keep your income in India and that abroad completely separate through an NRO account

Since it is illegal to hold a resident account if you are an NRI, an NRO bank account is compulsory to hold your income in Indian Rupees. With the advantages of jointly holding the account with a resident, you can ensure your loved ones in India have regular access to cash even when you are not in the country.

Most NRO accounts offer complimentary facilities and added benefits that you can enjoy all over the globe. It certainly makes banking simpler and convenient for Indians residing abroad.

5 best payment apps for easy money transaction

A Unified Payment Interface or UPI is a payment portal that allows easy money transfers almost instantaneously. It eliminates the need of visiting banks and saves time by saving your sensitive information. The regulation of the interface by the Reserve Bank of India makes it incredibly safe. More and more payment apps are being developed and improved to make payments simpler and convenient for people across the country. Here is a list of the best performing payment apps that make money transfer super easy and quick.

1. Paytm
This is the largest platform for payments. It has a digital wallet the lets you make payments quickly without having to input too many data. With Paytm, you can pay your bills, buy everyday utilities from shops, book tickets for travel, movies etc. You can also transfer money from one Paytm wallet to another Paytm wallet easily.

2. BHIM App
The BHIM App is among the simplest payment apps that suits a large population of people in India. Developed by the National Payments Corporation of India, it is available on Play Store free of cost. The attractive blue icons on a white background make the app simple to navigate and user-friendly.

3. PhonePe
When it comes to features, PhonePe has several attractive ones. You can pay using your UPI ID, mobile number or bank account details. You can use this app to make payments, recharge phone and buy tickets.  For, every transaction, you get cash backs and rewards. It has features that allow you to make payments, check balance, reset your UPI PIN, and even add as many bank accounts as you wish. The interface is very simple and first-time users can handle the app with ease.

4. HDFC Chillr
This app by HDFC Bank allows you to transfer money instantaneously. You can make payments or transfer money to anyone in your phone book, a feature unique to this app. This makes the payment process faster as you do not need to waste your time adding a beneficiary. Through this money sending app, you can make payments, send or request money, recharge and split bills. However, the services are available to the customers of HDFC Bank only.

5. Tezz App
This is Google’s take on payment apps and is becoming popular rapidly. The app is very simple to use and incredibly user-friendly. The app is very secure, with a fast payment. The reward program offered by Tezz attracts many people to use this app. You must link your bank account to the app to make payments and transfer money. The unique cash mode sets up a wireless connection, just like Bluetooth, so you can make payments to a beneficiary in the same location.

With these payment apps, you can easily transfer money and get rewards on every transaction. These money sending apps combine efficiency, security, and speed, which is perfect for luring several people.

The apps not only save your time but also money. They eliminate the need to carry cash that you may lose or that might be stolen. If you are considering shifting to digital modes of payment, you can well consider using one of these apps to make your payments.