Gold loan V/s loan against property: which is better?

Unforeseen situations may arise at any moment in your life and it may put immense stress on your personal finances. If you are not careful, it may leave you in huge debts, which you would not be able to repay easily. The simplest way to avoid such stressful situations is to take secured loans, instead of unsecured ones. For instance, gold loans and loan against property are easier to handle for the borrower than unsecured loans, such as personal loans.

While picking between gold loans and loan against property, you need to determine the best one. Here are some factors that you need to consider in order to understand which of these two loans suits you better.

1. Collateral
Gold loans and loan against property are secured loans because you need to keep an asset as collateral for taking the loan. If you are unable to repay the money borrowed, the lender recovers the outstanding amount from the collateral that you keep with them. In the case of gold loans, the collateral is any gold items and jewellery that you possess. Similarly, in case of loan against property, you are required to use a property or house that you own as collateral for the sum borrowed.

2. Rate of interest
When you take a loan, the very first thing to consider is the rate of interest. For gold loans, the interest is fixed, while for a loan against property the rate can be either fixed or floating. A fixed interest rate is better since there is no risk of having to pay more due to the appreciating rate of interest.

3. Eligibility criteria
The next thing you have to determine is whether you qualify for a particular loan. For gold loans, there are hardly any requirements. If you own gold, you are eligible for such a loan against the said gold articles. On the other hand, lenders will want extensive documentation of age, income, property papers, stability and credit history, if you apply for a loan against property. Therefore, the procedure for gold loans is more convenient and fast. Furthermore, online gold loan application has made the procedure even simpler.

4. Repayment tenure
Repayment tenure refers to the duration that the lender allows for repayment of the loan. In the case of gold loans, this tenure is limited to just one year. However, for a loan against property, you can opt for repayment tenures of up to 20 years. Keep in mind that lower tenures will result in greater monthly instalments, and vice versa.

Keep these factors in mind before taking one of the loans. You need to consider your requirement and specific situation before taking a decision. However, gold loans are better if the amount is limited, while loan against property is recommended if you need a large chunk of money.

7 types of forms required to open a PPF account

Having a public provident fund account is one of the best things you can do for your finances. This is because it ensures that your hard-earned money is in safe hands and with full transparency. However, in order to open an account under the PPF scheme, it is important that you understand the different types of forms that come with it. Listed below are all the forms necessary for opening a PPF account.

• Account opening form- This type of form is used for opening a public provident fund account. You will have to state your name, residential address and the amount of the initial cheque for opening a PPF account. In case you are opening an account for the minor, you would have to state the relationship you share with the respective minor. Additionally, you will also have to provide a declaration that you do not have any other public provident fund account, except for the minor’s account.

• Contribution form- In this type of form, you will have to mention the account holder’s name, the PPF account number and the amount of money that is supposed to be credited. Additionally, you can use this form to pay late fines or fees, loan interest, and a loan you have obtained against the PPF account.


• Partial Withdrawal form- In order to make partial withdrawals, you will have to mention the respective account number and the amount of money that you are looking to withdraw. You will also have to state the number of years that have passed since the expiry of the year of opening an account under the PPF scheme. This is due to the fact that, you can only make partial withdrawals post 5 years of opening the account. If the account is for a minor, then you will have to provide a declaration of the amount and submit the passbook with the form.

• Loan form- If you wish to get a loan from the PPF account, then you will have to submit a PPF loan form. You will have to mention the loan amount and the PPF account number, and provide with undertaking that you will pay off the loan with interest within 3 years. Additionally, you will have to submit your PPF passbook with the PPF form.


• Change of nomination- Nomination forms are used generally for modification, cancellation or change in nomination. Make sure that you state your name and your nominee name, your PPF account number and the date of the original nomination in the cancellation form. Additionally, state your nominee’s date of birth, address and if the nominee is a minor. This is important because, if your nominee is a minor then, you will have to mention the address and the name of the person who will receive the minor’s amount, during his/her minority.

• Claim form- The claim form is used for making claims for the PPF account. If you are the nominee, then you will have to submit the succession certificate, letter of indemnity, letter of disclaimer on the affidavit, death certificate, PPF passbook and the affidavit along with the PPF form. You will also have to sign a receipt of acknowledgement and attach a revenue stamp of Re 1 to the form. In case, there are no nominees, then legal heirs can also claim the PPF amount.


• Extension form- An extension form is used to expand the amount of the PPF, once it has the attained maturity of 15 years. After you have submitted the form, you can continue contributing towards the account and earn interest on new contributions. The expansion is done once in 5 years, and in case you do not submit the form within a year of maturity, then you will be unable to make new contributions.

Once you have a clear picture regarding what you need to do for opening a PPF account, the whole process becomes a lot easier. Hence, make sure that you are well informed about all the aspects of the PPF forms.

4 tips before taking an education loan

Many people are unable to afford the best courses and education even though they may be good at studies. Lack of money is no reason to stop your education mid-way and this is precisely why banks offer educational loans to deserving candidates. Even though these loans are greatly useful, you should follow the tips mentioned below, if you want to enjoy a stress-free lending and repayment procedure.

1. Compare the different lenders
Each lender offers education loans of varying nature. Not only does the amount of loan differ, but also the interest charged and the duration of repayment may differ from one lender to the next. You need to compare the offers from the reputed banks and determine which one suits your situation and condition the best. This comparison will ensure that you do not end up with a loan that you cannot repay.

2. Borrow only as much as you need
The worst mistake you can make while taking an education loan is to borrow a hefty sum, even though you may not require as much for the course you are about to pursue. Keep in mind that higher loans will also result in higher monthly payments during the repayment period for the loan. Paying excessively high loans can be a burden and can prevent financial security. Therefore, try to borrow just the course fees and the accommodation costs (if you are planning to relocate for the course). For all other expenses try to rely on stipends and/or money you make through internships and part-time jobs.

3. Follow instructions precisely
Taking an education loan involves a lot of paperwork and submission of documents. If you are unsure about the things you would require, clarify with the bank. Follow the instructions relayed to you, if you want to ensure the entire process is smooth. Similarly, keep in mind when you would need to repay the money and make sure you pay the loan back in a timely fashion.

4. Check before signing loan papers
Do not blindly sign the educational loan papers presented by the bank. Instead, read the paper thoroughly, so that you are aware of all the terms and conditions related to the loan. Make sure that the bank sticks to the agreed upon stipulations before signing. If you spot any errors in the papers, make sure you bring it to the notice of the bank, so that they can issue fresh documents.
Education loans are useful and can help you achieve your dreams. However, keep these things in mind, so that the entire process of borrowing money is smooth

Prepaid credit cards: its function, benefits and types

Credit cards are very useful in some cases, especially during emergencies, when you require a large sum of money. Furthermore, in the absence of cash, credit cards are an effective way of handling transactions. However, if you own a credit card, it is very easy to go overboard with your expenditures and land up in huge debt to your bank. This is why prepaid credit cards have become so popular in recent times.

What are prepaid credit cards?

Unlike conventional credit cards, prepaid cards use the money that has been pre-loaded into them. On the other hand, in regular credit cards, the money you spent is actually borrowed from the bank. You need to repay this money to the bank within a stipulated time.  However, prepaid credit cards use your own money, so there is no risk of being debt-ridden.

Benefits of prepaid credit cards

• The biggest and most important benefit of prepaid credit cards is that there is no risk of debts, as you would be spending your own money and not the money lent by the bank.
• Prepaid cards are available to all irrespective of credit rating, income and age, all of which would be required to attain a normal credit card.
• Prepaid credit cards can be acquired through the online application. Furthermore, there is no hassle of paying bills and no stress of late payment penalties.
• Unlike conventional credit cards, prepaid credit cards allow you to set the spending limit for the card. Therefore, such a card guarantees that you would stick to the budget.
• Some prepaid credit cards can be used to withdraw money from ATMs, just like a debit card.

Types of prepaid credit cards

• Open looped prepaid cards
Most merchant outlets accept the most common type of prepaid card present in the market today, open looped prepaid cards. Furthermore, these cards can be used to withdraw cash from ATMs.

• Closed loop prepaid cards
Closed loop cards are those cards, which are accepted at limited vendors and merchants. For instance, gift cards are valid example closed-loop prepaid cards.

• Semi-open looped cards
Semi-open looped cards are those prepaid cards that work across vendors of a specific outlet or company. For instance, certain prepaid cards offered by your convenience stores will work across all outlets of the same organization.

• Reloadable cards
Most prepaid cards are reloadable; wherein you would have to load money once the preloaded sum is exhausted.

• Non-reloadable cards
These prepaid cards cannot be reloaded once the preloaded sum runs out. For instance, most gift cards fall under the category of non-reloadable cards.
Once you have all the information regarding prepaid credit cards, contact your bank to avail one and enjoy all benefits of a credit card, without facing the risks normally associated with credit cards.

International debit cards and top banks offering them

When you travel, you do so because you want to get away from all the chaos of daily life or maybe to relieve the workload. In order to ensure a problem-free trip, carrying a debit card is the best option. More so because carrying multiple wads of cash can be an inconvenient and risky affair. However, did you know that there are international debit cards designed especially for foreign trips? Read on to know more about that and which banks offer the best international debit cards.

What is an international debit card?

As the name suggests, an international debit card is used for making financial transactions outside the country, including cash withdrawals from ATMs. Almost all the major banks in India offer international debit cards.

Which banks offer international debit cards?

Listed below are some of the major banks that offer international debit cards, which you should

1. YES Bank (Silver and Gold)
YES Bank Gold Debit Card and World Debit Card do not ask for any extra charges if you buy fuel with your Yes Bank Debit Card. The daily shopping limit is Rs.75,000 in case of Gold Debit Cards and Rs.25,000 in case of Silver Debit Cards. However, keep in mind that your debit card must have the MasterCard logo. In case of transactions made with your debit card, you will get regular and immediate updates.

2. Axis Bank
The benefits of having an Axis Bank debit card are reward points program, fuel overcharge waivers and privileged access to the lounge. The daily cash withdrawal limit is Rs.2 lakhs and the online and retails shopping limit is Rs.6 lakhs, in case of Privee Debit card and Burgundy World Debit card. The different debit cards offered by the Axis Bank are Privee Debit card, Burgundy World Debit card, Priority Platinum Debit card, and Wealth Debit card.

3. ICICI Bank
You can withdraw money for up to Rs.15,000 per day with ICICI Bank debit cards. The ICICI Debit card can be used to carry out financial transactions on a global basis at Foreign ATMs. Any person having a Current account or a Savings account will be provided with a debit card. The retail and online cashless shopping limit is up to Rs.25,000.

4. HDFC Bank
With the EasyShop Platinum Debit card offered by HDFC bank, you will be eligible for a Free Accidental Cover up to Rs.10 lakhs and fuel overtaxes waivers. The cash withdrawal limit is Rs.1 lakh and the shopping limit is up to Rs.2.75 lakhs. Additionally, you will also get 1% cashback if you use your debit card.

With HDFC EasyShop Imperia Platinum Chip Debit card, your daily withdrawal limit and shopping limit will be Rs.1 lakh and Rs. 2.75 lakhs respectively, along with a fuel overtax waiver. You will also get 1% cashback up to Rs.750 monthly if you shop with the debit cards. The yearly fee for this debit card is Rs.750 with additional GST, which will be subtracted if you are a participant of the HDFC Bank Imperia Premium Banking Program.

Lastly, with HDFC EasyShop Titanium Royale Debit Card, you will be eligible or a Free Accidental Death Cover up to Rs.10 lakhs and you will also get 1% cash back if you shop with your debit card. The limit for daily withdrawal of cash will be Rs.75,000. Along with Fuel Overcharge waivers, you will also be eligible for accountability for damage/loss.

In order to ensure that you have a relaxing trip while travelling abroad, you must have an international debit card with yourself. This will make the financial aspect a lot easier and non-problematic for you.

Understanding personal loan EMI calculator

If you are someone who has taken a personal loan, then you must know that you will have to pay EMIs every month. In order to know how much you will have to shell out every month, you will need the help of a personal loan EMI calculator. Read on to know everything about this crucial EMI tool.

What is a personal loan EMI calculator?

In order to ascertain the monthly payable amount in the best way possible, you will have to use a personal loan calculator. This will help you find out the equated monthly instalments (EMI) you will have to pay. For calculation, you only need to put in the interest rate of your loan, loan repayment duration and loan amount.

How does a personal loan EMI calculator works?

In order to use a personal loan EMI calculator, you will need to have a clear idea regarding how it works. Initially, it might seem a bit complicated, but after using it once or twice, you will be able to use it like a pro.

• Loan amount- You will have to enter the amount of your personal loan, in the edit box or the slider, you are looking to borrow. In order to plan your finances in a better manner, make sure that your EMIs are not more than 40% of your monthly income.
• The rate of interest- This is the rate of interest that is charged on the total amount of money you have taken as your personal loan and is a monthly reducing balance.
• Duration of the loan- Then, you will have to select the period for which you want to take the personal loan. Keep in mind that the tenure of a personal loan normally ranges from one to 5 years.
• Processing fees- Every bank charge a certain amount of money as processing fee, for giving out a personal loan. Such fees generally range from 1-5% of the total loan amount.

What are the features of a personal loan EMI calculator?

A personal loan EMI calculator has several features, which makes it the best tool for calculating your EMIs. They are as following-

• Time saver- Doing calculations on an actual calculator is much faster than doing it on pen and paper. Hence, it does not just help you do your calculations accurately; it also saves you a lot of time.

• Processing fees are accountable- Basic EMI calculators generally take into account only interest rate, loan amount and loan tenure. Whereas, a personal loan calculator also takes into account your processing fees, and informs you how much EMI you will have to pay every month.

• Accurate- Personal loan EMI calculators will always provide you with the right result and there is hardly any scope for error. Even a tiny mistake can affect your EMI amount; hence make sure that you always do your calculations on a personal loan EMI calculator.

• Easy to compare- When you are scouting for a personal loan in different banks, you will come across different loan tenures and amounts. It is not possible for you to sit and calculate all the figures by hand, and the slightest error can lead to the incorrect loan amount. Hence, the best way to come up with the right answer is to use a personal loan EMI calculator.

The whole process of looking for the right personal loan can be gruelling, so make sure you use a personal loan EMI calculator and just breeze through the process.

Car loan down payment and its effects

When you decide to buy your dream car, you must be familiar with terms like car loans and car down payments. These two terms play a huge part in the whole process of buying a car and so having a good understanding about these can help make the process easier. Read on to know more about car loan down payments and their several effects.

What is car loan down payment?

The cash that is paid up front, prior to buying a car is known as a car down payment. When you choose to opt for a car loan, you will have to pay a portion of the money from your own pocket and your bank will pay the rest.

What are the various effects of a car loan down payment?

A down payment on your car loan can have several effects, which are as follows-

• Loan tenure- While purchasing an auto loan, the duration of your loan repayment will have a direct effect on your EMIs. If your loan repayment plan is more widespread over the next few years, then you will have to pay less EMI every month. On the other hand, if you have paid a large amount of money as your car’s down payment, then you will have to take a small amount as your loan. This will hike up your repayment capacity and you will pay off your car loan in no time. Additionally, the sooner you pay off your loan, lesser will be your interest. In another scenario, if you pay a large amount of money as your down payment and pay the same EMI, then you will be able to purchase a car of a higher amount.

• Car loan- Car loans and down payments are inversely proportional to each other. The higher your down payment amount, the lesser will be your loan amount. This will also help you pay off your car loan faster. Additionally, if you take a loan of a lesser amount then you will have to pay a reduced amount of money every month as instalments. Therefore, paying a huge sum of money as your down payment while buying a car makes it easier for you to take a car loan without burning a hole in your pocket.


• Interest rate- Just as the car loan down payment affects your loan duration and loan repayment, it can also affect your interest rate. Your chances of getting a loan approved highly increase when you choose to pay a large portion of the money of the car’s price up front. This is because the level of associated risk will be comparatively less. Normally, in most cases, if you take an auto loan of a higher amount, then the probability of defaulting increases. Hence, banks are more likely to reject a loan in case you have not made a less payment or zero payment up front. Another benefit of paying a big amount of money off the total price is having a good credit score.

Down payments aid you in taking a smaller car loan and repay it in a shorter span of time. This makes sure that you do not come under a lot of financial stress and get to buy the car you want.