Is the debit card the new cash system today?

There are plenty of banking cards available, namely, the ATM card, credit card and the debit card. Each of these cards has different features and can be used for different options. However, amongst these options, the debit card is one of the most favourable options.

Even then, most individuals barely use this card, other than to withdraw funds. While it can be used to withdraw funds, it can also be used to make an online transaction. Additionally, it offers several similar safety features, such as the PIN input, and the embedded chip system which encrypts your transaction data.
However, with the recent implementation of the demonization move by the government, more and more individuals are using the debit card for other purposes. Statistics have indicated that, ever since the move by the government, the usage of debit cards has increased almost 100%.
Here are the reasons why you should use the debit card:

You need to reduce your credit card debt: Using a credit card offers you plenty of financial flexibility, but the fact remains that you need to repay back the borrowed funds. This is often a big responsibility as very often, many of the card owners are behind on payments. Additionally, there is also the inclusion of interest rate on the amount borrowed. Any delay in repayment will increase the overall amount that needs to be found. Therefore, to reduce the reliance on the credit card, the debit card makes for a great alternative.

You get perks for paying debit: The ATM card does not offer reward points, whereas credit cards are not the only one who do so. Several merchants and retailers are offering incentives to consumers who pay off their purchase with a debit card. This is because the credit card attracts a processing fee, which merchants would love to avoid by switching to the debit card. Keeping with this trend, most lenders have also offered reward point systems for debit card users.

You will avoid any unnecessary fees: Several banks waive monthly checking fees, especially for account holders who opt for debit purchases each month. In other words, if you favour your other banking cards too much, it could mean you forfeit an opportunity to avoid this fee.

Save time: The problem with ATM cards is that it can be used only for one purpose. With the credit card, it will take time for the payment to be registered, this, in turn, will lead to several delays. In this way, you can save considerable time on all your transactions, especially if you need to get them done on an urgent basis.

Get a better foreign exchange: If you are a frequent traveller abroad and need to access physical funds urgently, you can opt for using a debit card over the credit card. This is because, you are more likely to withdraw funds from the foreign local ATM at a wholesale exchange rate, as compared to a percentage one.
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Are you aware of the risks associated with forex trading?

The forex market is one of the largest investment markets in the world. This is a liquid market is a place where currencies are traded, either for trade or business purposes. One of the main aspects of this international market is that there is no central place for foreign exchange. Rather, the currency trading is done electronically or via networks between traders from around the world, rather than on one centralised exchange. It is open throughout the day and at most five and half days a week, with the trading happening the major financial centres of several global cities.

As you can see, the foreign exchangetrading offers plenty of return with the right investment strategy. However, while the market does offer you plenty of benefits, there remain the risks. By being aware of it, you can ensure that you make the most of your investment while ensuring that you get optimum returns without considerable loss. Here are a few risk factors you can take into consideration:

Leveraged trading carries a high risk:You may have heard how trading with a leverage can be aprofitable route to stretch your capital. As a trader, you have the option to leverage the funds within your account and generate larger profits in accordance to the amount you invest. But while you may have an advantage, it also comes with a potential risk. With this foreign exchangetrading, your losses can also be greater than the total margin held. Hence, the reason why the leverage is often referred as a double-edged sword. But there are few steps you can take to mitigate these risks. You can identify the potential places where you can incur significant losses, especially when trading on a margin. Ensure you have a risk management plan such as the stop losses in place to prevent excessive loss.

Risks of Forex trading in multiple markets: There are plenty of forex trading around the world. By having a broad focus on several markets can lead you to miss out on the best opportunities. This normally occurs due to lack of focus. The best way to avoid this is to create a trading strategy that includes a narrow focus on a few markets. This will go a long way to monitor a suitable volatility. You can start with a shorter watch list of the forex markets. Focusing on the most liquid and volatile markets with tights spreads will be the ideal place to start.

Risks associated with a margin closeout: A margin closeout occurs when your account falls below the 50% mark of the initial margin. All your open positions will be immediately liquidatedin accordance with the current forex rates. This helps prevent any possibility of loss which exceeds your investment. In fast moving forex markets, your losses can exceed your capital. In multiple open trades, the risk of margin closeout will be high, due to the inability to follow several open positions simultaneously. To avoid this, you can reduce your account leverage; you impose a higher margin requirement on each trade. This keeps you further away from the possibility of a margin closeout.
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Demat account: Common FAQ’s answered

The stock market is one of the many potential places to invest your funds. Investing in the stock market is often risk, but it also offer plenty of high returns. With the right management and planning, you can take advantage of the stock market to secure your financial position and earn an income.

But in order to do so, you will need to open a demat account. But what is a demat account? This account is like a bank account that will hold your stocks and shared. Any shares and securities you purchase or sell are held in a dematerialized form in this account. As of now, it is mandatory for you to open a demat account, in order to carry out any transactions in the stock market. Once you have opened the account, you can easily purchase or sell your shares as required.

Given below are some of the FAQ’s and their respective answers about the demat account:

How to open a demat account?

Know you know what is a demat account, you now need to know how to open it. In order to open a demat account, you would first need to get in touch with the registered depository participant. This entity functions like a bank or broker. In order to get the list of registered DP’s you can check online. Once you access their website, you can easily download or collect an account opening form from the office or website. Once you fill out the form and submit it, it will usually take a week or two for you to open the account. Ensure that you add a nominee when doing so.

What are the charges that are levied on the demat account?
In most cases, the account opening charges will vary from institute to institute. Certain private banks do not charge an opening fee, while others may do so. However, certain institutes do offer a refundable fee. The other types of fee charged include annual maintenance free, custodian fee and transaction fee.

What is a depository?

The depository is an organization that is charged to hold securities such as your shares, debentures, bonds, government securities, and mutual funds amongst many others. It holds your shares and stocks in an electronic form. The securities are held at the request of the investors through a registered Depository Participant. This DP will also provide services related to the transactions in securities.

What is dematerialisation?

Dematerialisation is the process wherein which, the physical certificates of your investments are converted into an electrical form. It is then credited into the account that is held with your DP.

Can you open multiple demat accounts?

You can open several accounts under the same name, or with different depository participants. However, you will need to fill the KYC form for every account you will need to open. You will also need to submit certain set of documents pertaining to the KYC form that includes your proof of identity, address and PAN card.
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How can you benefit from using the two wheeler loan EMI calculator?

Having a two wheeler offers you plenty of benefits. For one, it offers you the means to travel conveniently through traffic. Additionally it goes a long way to be economically convenient for those who travel on a daily basis, and yet don’t want to spend much on fuel and servicing.

But in order to possess a bike, you need to purchase one. In this case, the financial options are many, ranging from borrowing from family or peers or opting to save up your funds for it. Alternatively, you can opt for a two wheeler loan. But how do you know if the loan aspects will suit your financial requirement. Additionally, will you be able to afford the loan once you get the approval for it, or will it compromise on your other financial requirements?

To answer all these questions, you can use the two wheeler loan EMI calculator to calculate how much of a loan amount you can apply for. Additionally you can know how much you will need to pay on the monthly basis. Here are some of the benefits you can get from using the two wheeler loan calculator:

Helps know the EMI value: The primary function of this tool is to know the particular amount you will be paying every month for the two wheeler loan. By getting the number in advance, you will be able to sort out your monthly budget. This will eliminate the need to manually calculate your loan while ensuring that you get accurate results at the same time.

It will aid you in choosing the term: Once you have a definite EMI amount after using the two wheeler loan EMI calculator, it will be easier for you to gauge how much of a tenure of the loan will suit you. In this way, you can reduce the burden on your wallet if you feel the tenure is short. Alternatively, a higher tenure will proportionally bring down the value of the EMIs.

Helps in comparison: It will be most beneficial if you approach several lenders to know their loan rates, as each of them will offer different loan options. You can use this tool to compare the costs involved, and understand the difference in what is being offered by you. In this way, you can choose the most suitable loan offer, based on different parameters.

Helps in negotiating: Once you are armed with the basic of the financials involved with the two wheeler loan, it will help in negotiating the terms of the loan. Certain components, such as the rate of interest, processing fee and others can be easily negotiated after you establish the foundation.

Provides a break up of costs:One of the major advantages of the two wheeler loan calculatoris that it not only provides the EMI value, but also offers additional useful information. It offers a breakup of the charges involved in the loan such as the interest and processing fee. Mostly, it offers it through an amortization table, which will be done in a month wise break up.
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Why getting a two wheeler on EMI is a good idea for you

You’d be surprise how useful a two wheeler can be for you. For one, you can zip through traffic with ease. You can even take trip up north, along with fellow bike riding groups. And the best part of it, it is one of the most economical choices of transport.

But while the two wheeler does offer you plenty of benefits, you still have the decision to make to purchase the two wheeler. But while there are plenty of options to finance this purchase, one of which, is the two wheeler loan. This 2 wheeler loan will allow you to purchase the two wheeler you want, and easily repay back the borrowed fund through flexible EMI’s.

Here are the different benefits you can get through the EMI’s:

Power to purchase:This is one of the beneficial factors of the EMI for the two wheeler loan.Through the EMI, you get the power to purchase two wheeler, which may have not been possible on your own. With the regular instalments, you can easily space out your income and payments without affecting your monthly expenditures.

Less burden on your pocket: By availing the 2 wheeler loan through EMI’s, you can easily purchase a two wheeler, wherein which, the repayment amount will be light on your pocket. Most two wheeler loans will require a pre – defined amount that will be required to be made as down payment. The rest will be required to be paid off over a fixed tenure. It is this payment through the fixed tenure that will be cost effective, as it will leave you with the liberty to pay small fixed amount every month. At the end of the loan application process, the purchase will be affordable, without leaving a big hole in your pocket.

Doesn’t block your credit card limits: When purchasing your two wheeler on EMI’s, you can pay back the borrowed funds in small amounts on a regular basis. You can also avoid having your credit card limit blocked. This makes for a smarter option as you can find the finance at the strategic time, when you want to purchase your bike. This will also leave you to use your credit cards in any emergency situations without having to be concern about the card limit.

Low costing associated with EMI’s: As previously mentioned, most loans including other automobile loans will require a down payment to be made at the beginning. The amount invested in the down payment, significantly reduces the overall cost of the EMI’s. In other words, the larger the down payment the lower the EMI’s. Therefore, before opting for the 2 wheeler loan ensure that you have the sufficient down payment. At the same time, ensure that you have sufficient leverage to opt for a fixed EMI, if your financial position allows you to do so.
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Business loan: Do you know the three C’s that make up this loan?

Like any other loan application, when it comes to applying for a business loan there are certain factors you need to be aware of. Based on these factors your lender will determine how much of a risk you and your business are. In turn, you can gauge how much of risk level you possess and improve your chances of getting the right loan with the lowest rate possible.

These factors are mainly divided into three different C’s, namely, cash flow, collateral and credit score. Based on these factors your lender will calculate the perceived risk as well the terms of the loan. Given below is the detailed discussion of these factors and how you can make the most of it to get your loan for business:

Cash flow: Of all the C’s, Cash flow is the most influential and most dominant one.Lenders will first look and evaluate your business’s bank accounts when it comes to cash flow. Factors such as in and out cash flows, accounts receivable and credit card statements, in particular, will be taken into consideration. The information they will gain from the documents will be used as a reference for your business loan application. One of the most common types of endorsing that lenders will go through is the account receivable in addition to the average daily balance, the volume of deposits in a month and the total amount of non – sufficient funds. Regarding cash flow, you should have a higher than average daily balance, larger number of deposits and lower number of NSF’s.

Collateral: Collateral in nothing but the asset you will provide as security when applying for a loan for business. In most cases, the collateral provided is the business itself. However, this depends on on the lender you will seeking compensation from. While some lenders will opt for tangible assets, others would also seek non – tangible assets. The longer the business had functioned, the more collateral value you, as an owner can gain. But it also depends on the size of your business.

Credit Score: Plenty loan applicants confuse the credit score between a personal one and a business one. But in truth, the business credit is rarely evaluated. Unless you, as an owner has been in business for more than five to six years, establishing a business credit, most lenders will look at the personal credit score. To a lender, a business owner’s personal record of financial management will be as important as their business’s record. They will perceive the creditworthiness as indicating of overall management and attention to every detail. If an owner cannot manage their finances correctly in the early stages, it can be clearly evident on the credit score.
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4factors to keep in mind to purchase a used car with a used car loan

Purchasing a car often indicates that you have reached somewhere financially in your life. In this case, you will have plenty of choices to consider. Additionally, you will also have a choice of opting for a brand new car or a used car.
Research has indicated that even though you can meet the expense of a new car, it is always best to go for a pre – owned car. So if you are planning to go for a used car, here are a few factors you need to bear in mind before you make the purchase:

Safety First: With a used car, you may be compromised on the kilometres the car may have travelled. However, you must not compromise on the safety features. Ensure that you do a detailed check to verify if the vehicle is up to mark, especially with the sturdiness of the body. Ensure it has the ability to respond to crashes and accidents. Once you have zeroed into a used car, ensure that you calculate the appropriate amount for the used car loan. If these factors are not up to the mark, re – calculate your loan to an amount that will allow you to purchase ad – on to improve the safety of the vehicle.

Look for the right size: The size of your car is another factor you need to keep track of. After all, you don’t want your family squeezed into a small car, or opt for one that is large, but economically a waste. Additionally, when considering the size of the car, it will also reflect on the used car loans. For familial uses, you can opt for a small hatchback. You can easily go for a bigger car when you know your needs, and your affordability would rise to a suitable value.

Keep track of the paperwork: Before you make the decision to purchase a car, you first need to check the original documentation and service records. You can request the owner of the car to hand over the car’s RTO tax receipts, insurance papers and the original purchase invoice. Additionally, don’t forget to obtain a finance NOC, especially if you are applying for a used car loan. Do check for the state where the car was registered. Look out a registration that indicated DRC, which means a Duplicate Registration Certificate, as it indicates a possible history of a misdemeanour.

Take a mechanic along for verification: You may have experience with an automobile, but a mechanic will get you a detailed insight into the conditions of the vehicle. A trusted mechanic’s judgement will assist you in your decision-making process, especially when it comes financing the purchase through used car loans. It won't matter if you’re purchasing the used car from a normal owner or even from a used auto dealership. All you need to ensure that your car is in top shape before it transferred to your ownership.