Vidya Lakshmi portal for education loans - everything you need to know

Students who wish to apply for an education loan can now apply online through Vidya Lakshmi portal. Vidya Lakshmi is a government run portal for the students who wish to get an education loan for studies in India and abroad. The government run website is maintained by NSDL e-governance and they are operated by the finance ministry, Indian Banks Association and the Department of Higher Education. The government has started this initiative to release a platform which makes it easier for the students who wish to get an education loan and scholarship. 

Students can research about all the other education loans that are offered by different financial institutions and make an informed decision about which loan do they want to choose. This government run website has all the information a student might need about the education loan schemes of the banks that have registered with NSDL e-governance like the education loan interest rate that will be offered, repayment tenure of the loan and the terms and conditions of the loan.

The Vidya Lakshmi portal aims at providing the students with transparency and the efficiency in the education loan process. Through the Vidya Lakshmi portal the students can get the information on the education loan that is offered by different financial institutions. Once they have all the information, they can make an informed decision. The maximum loan amount that the customer can get will depend on the financial institutions policy. The students who wish to apply for the loan may also be required to provide an asset to the financial institution in case of a high loan amount.

Benefits of a Vidya Lakshmi for Education loans-

1. Students can apply to three banks with a single form.
2. 34 public sector and private sector banks are offering over 71 education loan schemes through the portal.
3. Applying through this portal the education loan process is simplified and there is less paperwork.
4. The IBA has instructed that the loans should be processed within 15 days of receiving the filled application form.

 Education Loan eligibility criteria for students-

1. The student applicant should be of Indian nationality.
2. They should have completed their higher secondary school.
3. They should have secured admission in to a technical or a professional course through an entrance test.
4. If they are applying to a foreign university, they should have secured their admission.
5. The student’s parent or guardian should meet the income criteria which are set by the financial institution.

Personal loan vs. Gold loan: Which is better

The number of financing options which provide the flexibility of using the funds when the individual needs instant funding. However, there are certain types of secured loans like a gold loan which emerge as an alternative for personal loans including the benefit of minimal documentation and quick disbursal of the loan. Personal loans and gold loans, both have their own advantages and disadvantages which may prove beneficial or it might become a financial burden for the individual. Let’s look at the advantages and the disadvantages of both the loans so the user can easily choose the loan option which best suits their specific requisites.

Gold loan: Gold loans are secured loans. If the individual owns physical gold in any form like coins or bars. They are great options for short term money requirements if they are in the need for instant funding.

Advantages:

1. Easy processing:
The processing of a gold loan is fast and easy. The documentation involved in a gold loan is minimal and does not include complex documentation. The loan disbursement is completed in hours.

2. Credit history not required:
Customers who wish to apply for a gold loan do not need to worry about their credit history. Financial institutions would not need your CIBIL score or declare any debts, it’s a great way to improve the credit history.

3. Low interest rates:
Since gold loans are secured loans, the interest rates on them are low making it much more affordable for the customers.

4. Flexible repayment:

A gold loan offers flexible repayment options which are generally not offered by other types of loans.
Disadvantages: Since a gold loan is a secured loan, the customer has provided some asset as collateral to the financial institution. The customer is always at risk of losing their asset if they fail to make any of the repayments. Gold loans are offered for short tenures which will result in high EMI payments.


Personal loan: Personal loans are unsecured loans that are the most optimal solutions for generating funds. These types of loans are the best way of getting financial assistance for any situation.

Advantages:

1. No collateral:
The biggest advantage of availing a personal loan is that the customer does not have to provide any type of collateral to the financial institution. The customers will be provided the loan without having to provide any type of asset as collateral.

2. Minimal paperwork:
The amount of paperwork involved in getting a personal loan is minimal. Customers availing the personal loan have to just provide some basic information documents.

3. Quick disbursal:
The personal loan amount is provided is disbursed in to the customers bank account within 48 hours.

Disadvantages:

The customers will have to maintain a good credit history to be eligible for the personal loan as they are unsecured loans, they need some assurance that the customers won’t default on their repayments and the interest rates on a personal loan are high.

Gold loan - FAQs

Gold is treated as one of the most precious metals in the world. Its popularity in India especially, has remained consistent despite volatile market trends, recession and other economic factors.
Notwithstanding the ever-rising prices of the metal, gold is often purchased as a long-term investment; whether it is the form of jewellery, bullion (gold bars) or gold exchange traded funds. It is one of the few things people rely on during testing times as gold can bail them out of financial worries. That’s right; you can take out a loan against gold, in case you need funds urgently. In this article, we answer some frequently asked questions about this loan.

What are gold loans?

Gold loans are those loans provided by banks and NBFCs in which you can take out a cash amount in exchange of gold. The gold remains in the custody of the lender, as collateral, until the borrower repays the loan.

What is the loan repayment tenure?

Loans taken against gold are usually short period loans taken by borrowers in need of urgent cash. You can commit the repayment tenure to your lender. Typically you can repay the loan in as less as 1 day or up to a certain number of instalments (generally 48 instalments), depending upon the agreement you arrive at with the lender.

What is the typical loan disbursal time?

Loans taken against gold are generally disbursed instantly. However, to do so, the lender may ask you to provide proof of purchase or other necessary documents. Lenders may also need to verify the value of the gold before considering your loan application and amount that can be sanctioned.

What is the interest rate charged against the loan?

Lenders can charge a gold loan interest rate at their discretion. There is no set or base interest rate when it comes to these loans. Since it is a secured loan, banks typically charge a smaller interest rate on these loans, as opposed to non-banking finance companies and private lenders.

What is the maximum loan amount that I can get?

The maximum loan amount also varies from lender to lender. The borrower needs to fit a certain eligibility criteria of the lending institution. It is possible for one to get a loan against gold for as low as ₹1,500 to as high as ₹10,000,000 (1 Crore).

Is it safe to pledge your gold to a bank?

Yes, pledging your gold to a bank is extremely safe as banks exercise great precautions in storing your gold.
The gold is locked away safely until you return the loan amount in full, after which it is returned to you.

What documents do I need to provide to take out the loan?

You would be required to provide government approved ID and address proof documents such as your passport, PAN card, Aadhaar card, ration card, utility bills) as well as the original gold bills (proof of purchase) to get your gold loan passed.

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.