NRO account – all you need to know

Getting a job and settling in abroad is all fine, but how are you managing your funds or shares/securities back home? Are there enough funds to support your family financially? If you send them money, how can they deposit it? Where can they get them done?

These are some fundamental questions that arise the moment you work overseas. Now, the pressure is eased off thanks to banks offering different bank accounts for the non-resident Indians (NRIs). They have three options to choose from: NRE account, NRO account and FCNR account. While NRE and NRO accounts are rupee dominated, FCNR accounts allow only foreign currencies. Each of these accounts varies in parts. Let us learn in detail about   NRO accounts.
      
What is an NRO account?

This kind of account can be opened either by non-resident Indians (NRIs) or Person of Indian Origin (POI), except for people staying in countries like Nepal and Bhutan. You can open an NRO savings account or NRO current account or NRO recurring deposits or NRO term deposits. It is best suited for those NRIs who have existing income in India such as rent, dividends, pension, etc.

Many banks also offer debit and ATM cards for NRO accounts so that it is easier for the family members to withdraw cash from selected merchants across India.

What are the document requirements to apply for an NRO account?

1) Passport copy
2) Employment visa copy
3) Address proof
4) Age proof
5) Income proof

More information on NRO savings account:

1) If the foreign money received is convertible to Indian currency through regular banks   
2) You can also open the account if you have legitimate local dues such as dividends, rent, etc. 
3) The interest on NRO accounts varies across banks. The investor should thoroughly check the rates before approaching the banks 
4) Unlike the FCNR and NRE accounts, the interest on NRO accounts are taxable
5) Two NRIs can open an NRO joint account  unlike an NRE account   
6) An NRO account is safe from exchange rate fluctuations such as daily variations in the value of rupee as well as conversion loss
7) You can only transfer money from an NRO account to another NRO account
8) Funds originating from abroad can be deposited on the NRO and NRE accounts. However, funds available in India can be stored only in the  NRO savings account  

Managing your income is the most crucial matter as it needs to be dealt with utmost care. NRIs have surely several options, but NRO accounts offer them benefits in terms of

Top 5 mobile payment apps in India

If you have a smartphone, you do not require an alarm clock, a television, a torch, a compass, a computer, today. Nowadays, smartphones are hogging the limelight that once was ruled by debit/credit cards. Mobile transactions are on a rapid rise, especially in emerging countries like India and China. The mobile payment app category is growing fast, and users are presented with a wide variety of choices to select from.

You can now split bills, order food, book movie tickets, send and receive money, by just a click. Following are some of the apps that are reigning in the Indian market over the years:

1) Paytm: This app has risen exponentially since its launch in 2010. It is the leading mobile payment app in India. Paytm did have competitors amongst its category, but they stood out offering deals almost every day in categories such as recharge, DTH services, entertainment, etc. Today, several merchants have Paytm as a payment option.

2) Freecharge: They always come with exciting offers that make them the most likeable mobile payment app in India. Freecharge stands head-to-head with Paytm. Usually Freecharge is handy for doing mobile recharge and making online bill payments.

3) MobiKwik: They have got more than 20 million users and 60,000 merchants who have them as a payment option on their portals or app. What differentiates them from the other mobile payment app players in the same category is that they provide cash collection facility at your residence. You can also pay your electricity, gas and other utility bills through MobiKwik. They are currently expanding their merchant base rapidly.

4) PayZapp: With the help of this app, customers can make instant payment online, enjoy great deals on entertainment, send money to their friends, etc. With the HDFC PayZapp, you no more have to make card-based transactions. Some of the salient features of using PayZapp are:

- Your PayZapp is connected with your savings account. This makes it easier to transfer money
- You can avail of attractive travel deals and offers
- You can pay utility bills, purchase movie tickets, etc.
- You shop groceries online and have them delivered to your doorstep
- You can pay your cab money

5) Google wallet: It mainly helps in transferring money to anyone in the fastest and easiest fashion. You can sign up for Google wallet through your debit card or Google account. The best part about this mobile payment app is that the recipient need not have the same app.

Having a mobile payment app is now so necessary that it is equivalent to having a telephone connection. It assists you in spending less time in the long bank queues.

7 things to remember before applying for an education loan in India

With the rise in the number of  educational and professional opportunities across the globe, more and more aspirants desire to study abroad. Studying abroad comes with promises such as a high-flying career,  more income, etc. Universities in abroad offer an array of courses  and have specific programs related to the kind of education you wish to pursue. Also, many universities offer scholarships and financial aid, keeping in mind the profile of the students.

Funding a child’s education is a daunting task. It is dependent on the course that he/she wants to take up and the institution they wish to study in.  The form of tool available to make all this a reality is to avail an educational loan. Indian banks provide various schemes with flexible repayment options, moratorium period, etc. 

Following are the essential features of an    educational loan in India:  

1) You should be anywhere between 18 to 35 years to request for an education loan

2) You can obtain the credit for courses such as  management, engineering, medicine, graduate, post-graduate, architecture, arts, hotel management, etc. 

3) An educational loan covers additional expenses such as tuition and exam fees, lab and library fees, caution deposit, travel, books and equipment, projects and study tours

4) The educational loan can be paid  in monthly instalments via ECS or post-dated cheques

5) Educational loans are granted for 7 years inclusive of the moratorium period

6) Borrowers have to pay interest during the moratorium period

7) If you are applying for an educational loan for a full-time course, you have to select a co-applicant. They could be your siblings, parents, spouse or any other family member

8) You can apply for a loan amount up to INR 20 lakh with the moratorium period and maximum INR 10 lakh without the moratorium period

9) No collateral is required for loans taken up to INR 4 lakh. However, you have to give third-party security if the amount is above INR 4 lakh. You might have to produce tangible collateral if the loan is above INR 7.5 lakh  

Following are the tips you need to keep in mind before obtaining an educational loan in India:

1) Choose the right bank. Go for a bank that offers the right moratorium period, interest rate and the correct terms to pay back the amount.   Also, check if you can pay through EMIs in advance or part payments

2) Know about your course and loan thoroughly. You should be aware of the VISA costs, ticket charges, airport interviews, cost of the loan, interest rates, repayment schedule, your program, etc. Also, be aware of the family and personal details

3) Go for a balanced educational loan policy. If you choose for lengthy tenure, your EMI will inevitably reduce  , but the cost of the loan and interest rates will get higher

4) Moratorium periods are good as they ease off the pressure from your shoulder. They generally last for a year or 6 months. Interest will, however, accumulate. So, pay off the interest during this holiday period as it will lessen your burden

5) Strategise on how to repay the loan. Once you complete your studies and start earning, you can  decide on what needs your attention and let go of the unimportant  things 

6) You can avail of the tax benefits under section 80E of the Income Tax Act on your educational loan. In order to use this benefit, you should have bought the loan from an Indian scheduled bank or a gazetted financial institution

7) Banks understand if you are unable to repay the loan on time. This could be due to unemployment or any other genuine reason. It might be tough to persuade the banks initially, but you can explain to them the situation if it true. Banks in such cases might extend your moratorium period  or repayment schedule

Before taking an educational loan in India, understand its implications as well. Be ready for the best and worst.

6 ways to get the best travel insurance

When you plan your trip, the things that you generally search for on the internet are about the ticket and hotel charges, places to visit, cuisines to try, etc. We do not care much about travel insurance. However, if you are a wise traveller, do not ignore the same, especially if you are travelling abroad. You should be spending as much time you spend on the nitty-gritty of your holiday. Depending on the travel agent is not enough. You should be aware of the aspects of the insurance as well.

1) Look for a scheme based on destination:  If you are visiting countries like Italy or the United States of America (USA) or United Kingdom (UK), the visa rates, the ticket prices , vary. Similarly, the international travel insurance plans also differ from place to place. The medical charges in each country are different. Some might be affordable while others can get expensive. 

2) Analyse the duration and tenure of the trip: Choose a plan based on the length of your travel.   The longer the travel t  erm,  the higher the premium. Some travel insurance companies require a minimum duration or may include your trip only to a specified period.   So, go for a plan based on the length of your travel.     


3) Go for group deals: Discounts lure the Indian customers every single time. And nothing gets better than travel deals, even if it is an insurance plan. If you are headed for a family trip, you can opt for the family international travel insurance schemes. You get them for affordable rates than the individual plan. This plan is also perfect for employees who head for corporate trips.

4) Pick a plan based on your itinerary: Suppose you are travelling to New Zealand, you are bound to try the adventurous activities in the country. Now, what if you require medical attention when attempting one of the adventure activities? The expenses are high in a country like New Zealand. You will need an appropriate travel insurance for the same.   Thus, when purchasing the insurance, keep your itinerary handy.   

5) Take your age and health into account: Say if a middle-aged man is travelling to Switzerland with an itinerary that includes attractions such as Jungfrau or excursion through the Swiss Alps, the insurance lender will ask for the patient’s past medical records. If the middle-aged man is a heart patient, you might not get travel insurance or may receive lesser coverage. Similarly, you have to mention the correct age as well. 

6) Evaluate the policy thoroughly: After examining the above points, remember to check the premium and policy features carefully.    Your travel insurance premium is based on the following factors:   

- The insured sum
- The plan you consider
- Add-ons on the scheme
- Your health and age
- Your travel duration
- Your travel destination
Once the lender calculates the above aspects, he offers you  plans with best premiums.

In a nutshell, ensure to buy the international travel insurance from a reputed and trusted company. With the perfect policy, you will be able to enjoy your trip thoroughly.

All you need to know about NEFT transfer

There was a time when sending money from one country to the other, was a  lengthy process. It used to take an eternity to move the money from your account.  Today, it is done by just a click. Cash reaches to your near and dear ones  in a few minutes or maximum few hours . Banks are offering three kinds of electronic fund transfer facilities such as RTGS, NEFT and IMPS. This article, however, concentrates on how NEFT functions?

1) What is NEFT?

National Electronic Fund Transfers (NEFT) is used nation-wide that allows individuals, firms and corporates to transfer funds electronically from one bank branch to the other.  Remember, the transfer is permitted only within the country.

2) Are all banks part of the NEFT network?

Not all branches of the banks are part of the NEFT funds transfer network. To  use NEFT, you have to check which banks offer these services. 

3) Who can use NEFT transfer?

Any individual, corporate or firms having accounts with their bank can use the NEFT system. Individuals who do not have an account with the concerned NEFT-enabled bank can also transfer the amount. Such people are given a separate code in the NEFT system. Thus, without the need for a bank account, you can move cash swiftly.  
    
4) Who can receive funds through NEFT?

If the person, organisation or corporate office has a NEFT-enabled bank account, they received the cash. You can also transfer money to Nepal under the Indo-Nepal Remittance Facility Scheme. You can transfer the funds from any   NEFT bank branch regardless of the receiver holding a NEFT account.  
 
5) Is there a limitation on the amount?

One of the important  advantages of using NEFT is that there is no limitation of funds. However, those who do not have a NEFT-enabled bank account, as well as those remitting funds under the Indo-Nepal Remittance Facility Scheme,  have certain limitations.  

6) What are the timings for NEFT transfer?

NEFT functions on an hourly basis. There are around 12 settlements that begin from 8 AM to 7 PM on weekdays. On Saturdays, there are six settlements between 8 AM to 1 PM.

7) What does the NEFT system function?

Follow the simple steps to transfer money instantly to your near and dear ones:

1) Procure all the details of the receiver before transferring the funds such as name, account number, account type and Indian Financial System Code (IFSC)

2) Log in to your net banking using your customer ID and password

3) You will find many options on the screen such as ‘transfer within the bank’, ‘transfer via card pay’, etc.

4) Select one of the options and add the beneficiary’s details

5) Once you add the beneficiary's features, two more options appear on your screen:    ‘add beneficiary within the bank’ and ‘add beneficiary of another bank.’  

6) If your friend/family member is of the bank account, go for option one. Else, opt for the second one

7) The activation process takes few minutes or 24 hours. It varies from bank to bank

8) Once the activation process completes, you will receive an SMS

9) You can now send money with ease by merely adding the amount  and confirm
  
10) NEFT transaction charges are minimal. It mostly depends on the money  being transferred

Car loan EMI calculator – all you need to know

After the cycling era came the two-wheeler era. Almost every  middle-class individual owns a two-wheeler, be it a scooter or a bike. As the world is continuously progressing towards a modern lifestyle, there is a need for a four-wheeler.   That has led to the demand for car loans.  Car loans act as the best ally for those who do not have enough monetary resources. It also comes handy for those individuals who do not wish to invest their entire money in one go.   
 
When you decide to go for an auto loan, you can select the best investment through the car loan EMI calculator. This tool enables you to make a choice that is suitable for your needs. It assists you in planning your EMIs and works smoothly. You can find this tool on all the banks’ portals as well as on third-party loan websites. 

What are the advantages of an auto loan EMI calculator?   

1) An EMI calculator allows you to calculate your monthly instalments well in advance. It will guide on which scheme matches your affordability

2) It gives a comprehensive view of your loan repayment

3) It gives you a thorough understanding if you are eligible to get a car loan or no

What are some of the essential features of a   car loan EMI calculator?

1) Once you add all the details, the EMI provides all the information immediately. In case you want to compare various loans, you can make multiple entries

2) There are no chances of errors. You receive the exact value, and hence, it is completely reliable

3) You can do comparative analysis promptly as the auto loan EMI calculator allows you to calculate multiple times with different amount

4) You can also gauge the prepayment factor with the help of the EMI calculator. You have to provide the prepayment amount along with prepayment charges

5) You can calculate with as many variations as you wish in the EMI calculator tool

How does the car loan EMI calculator function?

The EMI calculator is based on three determinants:

1) Principal amount: It is the primary parameter. The amount plays a crucial role as this can make or break your EMI calculation
 
2) Tenure: The tenure of the loan also plays a vital role. The longer the mandate , the lesser the monthly instalments. However, the interest to be paid will increase if the time-frame is longer. Thus, go for a balanced scheme

3) Interest rate: Banks and financial institutes offer a different  interest rate on car loans. Based on the interest rate, you should use the auto loan EMI calculator to decide on your monthly instalments. If the interest rate rises, EMI will increase as well   
Now that you know every bit of car loan EMI calculator go to your bank’s website and choose the right plan.

What type of bank accounts can NRIs invest in?

Being an NRI has its plus points and drawbacks. While you do get to pursue your dreams and aspirations, you also have to ensure your family members are safe and sound not just physically but also financially. Indian banks have a plethora of investment options to offer  the non-resident Indians (NRIs) such as different bank accounts, investments in the forms of securities and debts, and investments in immovable properties like real estate.

Bank accounts are generally the safest options as you can either open them individually or in joint form. The types of accounts that NRIs can operate are NRE account, NRO account and FCNR account.

Let us learn in detail about each account:

1) NRE accounts: You can save money in rupees on this account.  You can also freely move your asset from a foreign  country to your home country through NRE accounts. They can be in the form of savings, current, recurring or fixed deposits. Since it is a rupee dominated account, you have to change your foreign currency to rupees before depositing. Also, whenever you wish to transfer the funds to your overseas account, you have to convert them to the respective country currency.

Some of the critical features of an  NRE account are: 
- You can freely move your NRE balances
- The balance held, and interest earned through NRE accounts are tax-free
- You can withdraw deposits prematurely from NRE accounts
- NRE accounts can be operated through power of attorney, although for a limited period, for the purpose of withdrawal and remittance

2) NRO accounts: This is also a rupee dominated account. You can invest in such accounts if you receive income in India such as rent, dividend, commission, etc. Such revenue cannot be deposited in   an NRE account. Unlike the NRE accounts, the interest earned through NRO account is taxable. Any NRI or Person of Indian Origin (POI) can open the NRO account barring people from countries like Nepal and Bhutan.  

3) FCNR account: The Foreign Currency Non-Resident (FCNR) account allows only foreign currency. It is similar to a fixed deposit on which interest is paid. You can open a joint FCNR account with other NRIs as well as with Indian residents. One of the significant   advantages of opening an FCNR account is that they do not have to bother about currency fluctuations. Moreover, the interest earned via FCNR account is exempted from tax. You can deposit the following currencies in the account:  

- US dollar
- Australia dollar
- British pound
- Euro
- Japanese Yen
- Canadian dollar
Some other investments options for NRIs include shares and real estates. Make a wise decision and be rooted in your country in a hassle-free manner.