4 factors to consider before taking a loan for a new car

Buying a new car is a momentous occasion in India. Your car can be a mark of success and stability. Therefore, people tend to put in a lot of thought while selecting their desired four-wheeler. However, picking the correct car loan for your car is just as important as choosing the best vehicle. Here is a look at things you should consider before taking a new car loan.

1. The amount you need to borrow
Just because you are about to purchase a new car, does not mean you should borrow as much as you want. While most car financers will offer up to 90-95 per cent of the vehicle’s price as a loan, you need to be smart while deciding the sum to borrow. You should only apply for as much of a loan as you are comfortable repaying. Keep in mind that lower loan amount will result in smaller equated monthly instalments (EMIs).

2. Rate of interest
Before you apply for a new car loan, check the rate of interest that the lender is charging on the lent sum. Once you determine the rate of interest, you can use the same to calculate the monthly payments you would need to make. Online car loan EMI calculators can help you make such calculations and comparisons. Choose the interest rate that you are most comfortable with before borrowing from the lender.

3. Documents required
Before you apply for a new car loan, check what documents are required to get the loan sanctioned. Make sure you have all the necessary documents so that the entire process becomes much simpler and streamlined. If you cannot ascertain what documents would be necessary, ask the lender to clarify the same.

4. Tenure for repayment
Car loans may have flexible repayment tenures ranging between 1 and 7 years. You must make sure to pick a tenure that you are comfortable with. Keep in mind that longer tenures would mean lower monthly instalments, but greater interest payable overall. Therefore, if you think you would be able to repay the money in two years, make sure you pick a loan that allows you to repay it within that time so that you can limit interest payments.

The new car loan application is simple and does not require any collateral, as the car you purchase is the collateral in this case. However, keep the factors mentioned above in mind to get the best loan for buying your dream vehicle.

5 mobile payment apps that have revolutionised money

In a bid to go cashless, India has embraced the mode of digital wallets. Furthermore, due to the popularity of smart devices, most banks and financial institutions in India have developed mobile payment apps. These applications can be used by anybody and do not require any lengthy or complicated payment procedure. Here is a look at the five best payment apps in India.

1. Paytm
One of the most popular mobile wallet apps in the country Paytm was launched in 2010. Through several difficulties over the year, the wallet has managed to retain the number one spot for itself regarding all mobile transactions. Apart from consumers, lakhs of merchants across the country today accept payments through the Paytm app.

2. Freecharge
Freecharge is another important and well-known mobile wallet in the country. It made quite a name for itself by offering great discounts and cash backs on transactions. While it can be used to make payments to vendors, the app is most popular among the customers for conducting mobile recharges and bill payments.

3. HDFC Chillr
A mobile payment app developed by HDFC Bank for its customers, HDFC Chillr offers plenty of unique features to users. With this app on your phone, you can pay anyone in your phone’s Contacts list without any added hassle. Apart from this, you can also use the mobile payment app to pay for utilities, pay for the products you purchase across e-commerce sites and to pay at certain merchants who accept payment from HDFC Chillr.

4. MobiKwik
With over 20 million customers, MobiKwik’s popularity is only second to Paytm’s. Furthermore, over 60,000 merchants in India accept payment from MobiKwik, which has further boosted the popularity of the mobile wallet app. It is the only app of its kind where cash collection at your doorstep is a feature. Apart from this, you can use this app to pay your monthly bills, purchase items through online shops and through certain offline merchants.

5. State Bank Buddy
As the name suggests, State Bank Buddy is the mobile wallet app from State Bank of India to its customers. It provides the basic facilities, through which customers can pay their utility bills, recharge their phone and conduct other transaction as well. Currently, the bank is in the process of improving the interface of the app to offer better services to clients.

Therefore, if you are looking to use a payment app, you should pick a wallet from the ones listed above.

A detailed guide on gold loan and its EMI calculator

Gold loan is the safest and easiest way to raise money. It is safer than most other kinds of loans because here the borrowed sum is offered against any gold articles or jewellery that you possess. Therefore, you are essentially mortgaging your gold items for the necessary funds. If you are unable to repay the bank, they will simply deduct the remaining money from the value of the gold.

If you are looking for a gold loan, you can use the gold loan EMI calculator available online.

What is the gold loan EMI calculator?
A number of reputed finance websites offer a digital calculator on their portal, through which prospective gold loan borrowers can calculate the monthly instalments they would need to pay based on factors, such as interest rates, principal sum borrowed and the tenure of repayment.

With this online gold loan calculator, you can mix and match the interest rates and the tenure of the loan until you find an EMI that you are comfortable with. Therefore, this calculator can be instrumental in determining the best interest rate for you.

Benefits of using the calculator

• Calculating numerous interest rates and tenures offered by the various lenders manually can be stressful. Furthermore, such calculations can turn out to be faulty. With the online calculator, you can perform the extensive calculation quite fast and rest easy knowing that the results will always be numerically correct.
• Gold prices are always changing. It is difficult to determine the current price of gold and use that to perform the calculation manually. However, gold loan EMI calculators take the current price of gold into consideration, while performing these calculations.
• You can quickly figure out the interest rate and tenure most suitable for you if you use the calculator. This is because you can enter the EMI you would be comfortable with along with the tenure to check the ideal interest rate for the loan. After you determine the interest rate, you can simply search online for a lender offering the loan at such interests.
• Lastly, after determining the EMI you would need to pay, you can check whether your monthly budget can be adjusted accordingly.

Therefore, before applying for the gold loan, make sure you take advantage of the gold loan calculator and figure out all aspects of the loan.

4 ways to get a two-wheeler loan with a low credit score

The first thing that banks check when you apply for a loan is your credit score and credit history. If you use a credit card or have borrowed before, your credit score will be based on how well and how timely you paid off your debts.

Banks generally reject two-wheeler loan applicants who have a poor credit score, since they are more likely to avoid repaying their debts. However, even if you do not have a good credit history, you can get a loan through the following means.

1. Compare the lenders
While getting two-wheeler insurance is easy when you have a good credit history, it is slightly more difficult with a poor credit track record. However, many lenders today have shifted their focus from credit scores to other things, such as the stability, income source and the social media profiles of the loan applicant. Therefore, you need to find a lender who considers these aspects along with the credit score, if you want to get a two-wheeler loan.

2. Negotiate with lender
A credit score is a representation of the past repayment history of loans. However, since then your economic condition may have improved greatly. You need to convince your two-wheeler lender of this fact so that the company understands that you will not default on making the payments on time this time around.

3. Pay the majority in down payments
Even with a poor credit history, if you manage to pay a large portion of the cost of the bike or scooter through the down payment, you would need to borrow less. The lender may think twice while lending bigger sums to a person with bad credit, but it will not reject the application if the loan amount is nominal. Use two-wheeler loan EMI calculator while determining how much you can afford to down payment. The two-wheeler loan calculator online will also help you ensure that you do not end up with huge monthly payments.

4. Get a co-applicant
A loan where you are the sole applicant may be rejected based on the low credit scores. However, if you apply for the loan along with another person, the banks may not be so fast in rejecting the application. In fact, if the co-applicant has a good credit history, it is almost guaranteed that you will be lent the necessary sum.

However, throughout the entire procedure of the application, make sure you use the two-wheeler loan calculator to determine how much you are comfortable borrowing.

NRI account types and its features explained!

An NRI account is the type of bank account meant for Non-Residential Indians i.e. Indians residing abroad. Most banks in India offer their customers NRI banking services. If you have an NRI account, you can deposit your hard-earned money and save it for future.

There are three types of NRI bank account. They are-

• NRE Savings Fixed Deposit Account
• NRO Savings Fixed Deposit Account
• FCNR Savings Fixed Deposit Account

Let us have a quick look at each type of NRI bank account and their exclusive features.

1. NRE Savings Fixed Deposit Account
With an NRE (Non-Resident External Rupee) account, the account holder can open a simple savings account but the balance will be maintained in the Indian currency only. Even if you make a deposit in another currency, it would be converted into Indian Rupee, before being deposited.

Features-
• You can withdraw money in the foreign currency, but first, you would need to convert the Indian Rupee into your preferred currency. The account holder has to bear the cost of the same.
• You can open a joint account with a fellow NRI, but not with an Indian resident. Nevertheless, you are allowed to transfer money to an Indian account with ease.
• You can send the entire amount in your account out of the country without the clearance from the Reserve Bank of India
• The deposits made as well as the interest earned in an NRE account is free from any income tax under the Govt. of India. However, the benefits of tax exemptions are only applicable to individual account holders and not for Overseas Company Bodies.
• Accountholders are eligible to apply for loans against the deposits in the NRE account
• Nominations are allowed in NRE accounts

2. NRO Savings Fixed Deposit Account
An NRO (Ordinary Non-resident Account) is any normal bank account held by a Non-residential Indian.

Features-
• You can make deposits into an NRO account from overseas
• The interests earned from this type of an account are not exempted from the Income tax in India
• An NRO account is non-repatriable, meaning accountholders cannot transfer their savings from this account into a foreign account without the permission of the RBI.
• You can deposit Indian currency to an NRO account
• Nominations are not allowed in NRO accounts
• You can open a joint NRO account with any Indian resident

3. FCNR Savings Fixed Deposit Account
FCNR (Foreign Currency Non-Resident) account is only useful for keeping fixed deposits for a certain period, ranging from one to three years.

Features-
• You can deposit amount as fixed deposit for at least one year and up to a maximum of three years
• You can transfer the principal and interest earned to an account overseas in the same currency or you can convert it to any other currency
• The interests earned on the fixed deposit amount are liable to tax exemptions under the Income Tax Law in India
• Nomination facility is available with an FCNR account
• You can get an overdraft on your current account or savings to account against the FCNR fixed deposit
• You cannot hold joint accounts with an Indian resident

If you are looking forward to opening an NRI account in India, make sure that you understand the features of each of these three accounts and choose one according to your needs.

Atal Pension Yojana- All you need to know

What is the Atal Pension Yojana Scheme?

The Government of India launched the Atal Pension Yojana Scheme in 2015, to inculcate the habit of saving amongst daily wage workers. According to this scheme, they can save a considerable amount of money for their pension once they retire. Not just daily wage workers, people who have private sector jobs can also enjoy this scheme’s benefits.

What is the eligibility for applying for the Atal Pension Yojana Scheme?

If you are looking to invest in the Atal Pension Yojana Scheme, then you will have to fulfil the required eligibility criteria-

• The applicant must have a valid and registered mobile number
• The applicant must be aged between 18 years to 40 years
• Applicants, who have a valid and fully functional savings account, can only qualify for an APY account

What are the features of Atal Pension Scheme?

Before you apply for an APY account, read on to know the several features of the scheme.

• Customer contribution- If you start contributing from the age of 18 years, then you will have to pay 42 INR every month to score a pension of 1000 INR. You can also go for the auto-debit option. In case, you decline to make a payment then you can re-enter the scheme by paying the due principal amount and interest rate.

• Contribution by the government- In order to drive more people to invest in the Atal Pension Yojana, the government also contributed for the duration of 5 years i.e. from 2015 to 2020. All the contributions are to be sent to the accounts activated between June 1, 2015, to December 31, 2015. All the active customers must keep in mind that they will not be covered under the Statutory Social Security Schemes.


Additionally, they should not be income taxpayers. If you are looking to secure the government’s investment, then you will need to invest regularly and on a monthly basis during the entire course of a year. If you are successful in doing this, then the Government of India will invest 50% of their monthly contribution in your account.

•Subscriber enrolment- If you have a functional and valid bank account, then you can use the auto-debit service for making payments to your APY account on a monthly, quarterly and half-yearly basis. However, keep in mind that you will have to make all your payments on time; otherwise, you will have to pay penalties. Additionally, in case you do not make any monthly investments, then the government will discontinue your account. In addition, all the money that the government provided you will be subject to penalties.

The Atal Pension Yojana Scheme is considered a godsend for many. This step by the government has been received with a lot of support and encouragement. Moreover, it is highly responsible for ensuring monetary stability for the post-retirement lives of wageworkers. 

Sukanya Samriddhi Account V/s Public Provident Fund: the difference

When it comes to ensuring your family’s financial security, often people get confused as to whether they should save their hard-earned money in a bank or invest it in a scheme. In recent times, two of the most popular financial tools in India are the Sukanya Samriddhi scheme and the Public Provident Fund.

Here is a look at the schemes, their benefits and how they differ from each other so that you can make the most of your wealth!

What is Sukanya Samriddhi Account Scheme?

The Sukanya Samriddhi account scheme is a Govt. aided scheme that aims towards securing the girl child’s future by providing education to them.

You can open a Sukanya Samriddhi account in one of the authorized commercial bank branches or in a post office. People, who belong to the lower-income wage group are also eligible to open an account for the Sukanya Samriddhi scheme, as this is a government-backed scheme and will ensure many benefits for the girl child.

What is Public Provident Fund Scheme?

The Ministry of Finance introduced the Public Provident Fund (PPF) Scheme in 1968. The primary objective of the scheme was to encourage people to save more and build a retirement corpus for the golden years.

How does Sukanya Samriddhi account scheme differ from the PPF scheme?

Both the schemes differ from one another on the following grounds-

• You can expand the tenure for any number of times, each time for a 5-year long period, upon the maturity of your PPF account. You must do so within a year from the maturity date.
For Sukanya Samriddhi account, an expansion of 14 years is allowed, but only up to 7 years.

• You can deposit money in the PPF account via cheque, cash, demand draft (DD), and online funds transfer.
Sukanya Samriddhi account only accepts deposits in the form of cash, cheque and DD.

• The account in Sukanya Samriddhi scheme can be opened only under the name of the girl child. No one other than the girl child is eligible for any of the benefits of the scheme.
Any Indian resident of age 18 years and above can open a PPF account. There is no restriction on the upper age limit for opening this type of an account.

• Sukanya Samriddhi account scheme allows you to withdraw money partially. You can withdraw a small amount only after you turn 18 years old and use it to fund your education. You can withdraw 50% of your funds from the account after turning 21 years.
If you have a PPF account, you will be allowed to withdraw your fund completely on the maturity.

• The Sukanya Samriddhi scheme offers an interest rate of 8.6%, which is the highest when compared to other small savings schemes.
The interest rate earned on funds in PPF account as on October 2018 is 8.0% per annum.

Both PPF and Sukanya Smariddhi Scheme have their own advantages and disadvantages. However, it is best to analyze the intricate details of both the plans before putting your money in any of the schemes.