HDFC Sales

Pioneers of the Indian Financial Distribution Industry

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How to Renew Your Lapsed Two Wheeler Insurance

Synopsis

A lapsed two wheeler insurance policy can be renewed online.

It takes only 3 minutes and 5 easy steps to renew your vehicle insurance.

Avail a No Claim Bonus discount for timely renewal.

Get a full insurance claim without deduction of depreciation.

Insurance is a legal requirement for anyone who owns a two-wheeler in India. All general insurance plans need to be renewed on time. HDFC two wheeler insurance plans can protect you by providing personal accident as well as third party coverage. It is advisable to renew your HDFC 2 wheeler insurance policy 15 to 30 days before the expiry of the policy. Timely renewal of your policy allows you to avail of the No Claim Bonus, which is a discount on the premium, if you have not made any claims during the term of your HDFC bike insurance policy.

What to Do If Your Two Wheeler Insurance Policy Has Expired?

HDFC will send you a renewal reminder by email or SMS at least a month before your two wheeler insurance policy expires. This gives you sufficient time to apply for renewal. However, if you missed the expiry date, you can still renew your lapsed HDFC motor insurance online.

What Insurance Policy Should I choose?

There are four types of HDFC 2 wheeler insurance to choose from:

Comprehensive Two Wheeler Insurance

This policy provides all-round protection to your vehicle against accidents, fire, theft, natural calamities, personal accidents, and third-party injuries. You also have a choice of add-on covers. For example, a zero depreciation cover is where no deduction is made on any depreciation on your two-wheeler. You will get the full amount towards the insurance claim. You can also add on a round-the-clock emergency road assistance services cover that will support you in times of dire need. HDFC also offers a 3-year insurance coverage that frees you from yearly renewals and fluctuations in premium due to inflation.

     2. Third Party Insurance

This policy is meant for those who are not regular bike users. It provides protection against personal accidents up to Rs.15 lakhs, physical injury to third parties, and damage to their property. This is the most basic vehicle insurance policy and takes care of any claims raised by a third party. Claim settlements are also done quickly by the team at HDFC. 

     3. Standalone Own Damage Insurance

This policy can be taken to provide protection against damages to your own two wheeler. It can be taken by anyone who already has a valid third party insurance. The plan covers theft or damage to one's own vehicle caused by accident, theft, fire, and natural calamities. Even if you already have third party insurance with another insurance provider, you can still take a standalone OD Bike insurance with HDFC.

    4. Insurance for Brand New Bikes

This policy too can be taken by anyone who already has a third party insurance. It offers a year’s coverage for your two-wheeler along with a five-year cover against damage to a third party or their property.  The insurance covers personal accidents, thefts or damage to your bike caused by fire or natural calamities, and injury to third party or damage to their property.

How to Renew Your Expired Policy?

You can easily renew your lapsed insurance policy online by following these simple steps: 

Visit HDFC ERGO website.

Enter details of your bike, such as its registration number and existing policy details.

Select the type of HDFC two wheeler insurance policy you want. 

Make the payment for the renewal of your HDFC motor insurance policy using online payment modes provided.

Once payment is made, and the renewal process is complete, we will send you the renewed policy via email. 

Benefits Of HDFC Motor Insurance

To us, what matters is your safety on the road. 

HDFC ERGO’s two wheeler insurance provides easy online renewal of your vehicle’s insurance, which can be completed in 3 minutes. Renew your bike insurance with HDFC Sales today.  We’ve got you covered! 

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How Can Women Start Their Investment Journey?

Synopsis

 ●    It is an easy and ingenious method of earning income and securing the future.

●     It provides multiple benefits:

       1.    Long-term Returns

       2.    Outperforms inflation

       3.    Provides a regular income

●     Take your first step to becoming an investor today.

 In today’s world, financial independence for women has become a necessity. For women, it is no longer sufficient to rely on a single source of income. Investments are increasingly becoming the best source of secondary income. While women’s financial stability has increased with better job prospects, the idea of women as investors is still somewhat of a new concept. To encourage women to invest, the government introduced many schemes, including:

 ●     Long-term investment ideas like mutual funds

●     National Pension Scheme (NPS)

●     Public Provident Funds (PPF)

●     Fixed deposit plans

●     Fixed-income investment ideas

●     Small investment ideas

  Mentioned below are ways that further elaborate on how women can take charge of their finances and begin their investment journey.

How can Women Secure their Future?

1.   Learn

 Success is the sum of efforts and knowledge. Before beginning your investment journey, you must have a good understanding of investments, the process of investing, how much to invest, and how to acquire the money to invest. The easiest way of gaining this knowledge is to read and follow current investment trends and ideas. Only after having their basic concepts solidified can one begin this journey.

2.   Set Goals

 After acquiring knowledge, you must set goals. Start small and stick with it. Invest regularly and continuously in what you know and understand. With practice and experience, you will eventually grow. It would be beneficial to divide your plans into long-term and short-term investment strategies. Make sure that you are insured. Here are some of the safest investment ideas:

 ●     Mutual Fund Schemes, India

 Due to the availability of comprehensive information, risk diversification, and detailed analysis, mutual funds are one of the safest investment methods. Transparency and easy access to information help build trust in the investors.

 ●     National Pension Scheme

 It allows you to plan for longer retirement, while offering several tax benefits on NPS. Professional managers invest your money in diversified portfolios - government bonds, bills, corporate debentures, shares, etc. Your contributions grow over the years, and you earn returns depending on the investment type.

 ●     Fixed Deposit Plans

 Fixed deposit plans offer a wide range of investment options, from monthly to a long-term tenure. This makes it an ideal investment option for homemakers and older women looking to save up for their children’s future education and marriage plans.

3.   Review and Implement

 Financial planning is a dynamic process, and you need to be on top of your game consistently to receive incredible returns over time. After implementing your plans, you need to monitor and adjust them constantly. You can also seek expert help if needed. Continue to invest, evolve your portfolio, and secure your future.

Takeaways

 With the high cost of living and the problem of inflation always looming around the corner, it is necessary for women to ensure that their future is secured. Choose the best company,  invest your income, build your portfolio, and generate big returns for a steady future.

  If you want to explore more investment ideas and financial tips for women investors, visit the HDFC Sales website today!

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How to Apply for a Home Loan as a Single Mother

Synopsis

* Home loans for single mothers in India.

* Stages of home loan:

       1) Documents 

       2) CIBIL Score

       3) Eligibility

       4) EMI Calculator

       5) Disbursement Process

Buy your first dream home with HDFC home loans.

With government and corporate schemes aimed at empowering women, now is the best time to own your dream home as a single mother. HDFC provides a special home loan for single mothers buying their first home.

What You Need to Know to Apply for a Home Loan

HDFC offers home loans for single mothers at attractive interest rates starting at 6.90% p.a. You can repay the home loan over a period of 30 years. However, your home loan will be disbursed only if the bank deems you eligible. Your home loan eligibility depends on various parameters like your employment status, age, credit score, and monthly/annual income, to name a few. Depending on the eligibility conditions, the bank will finalize your loan amount and approve your application.

Let’s break this information down further. Here is everything you need to know about applying for a home loan as a single mother.

Documents

You need to provide the following documents to the bank:

                 1) Application form with photographs.

                 2) Identity and residence proofs.

                 3) Last 6 months’ bank statement.

                 4) Processing fee cheque.

                 5) Latest salary slip.

                 6) Form 16.

CIBIL Score

It is a score given to an individual after gathering information about their financial history. This includes their previous loans and credit card information from leading banks and other financial institutions in India.

Eligibility for the Loan

A CIBIL score ranges from 300 to 900, 900 being the highest. Generally, individuals with a CIBIL score of 750 and above are considered responsible borrowers. So, maintaining a good CIBIL score will help you apply for home loans easily.

EMI Calculator

Taking a longer repayment duration will help lower the EMI and ensure that your other financial obligations are not compromised. For years, the home loan interest rates have favoured low-income single mothers.

     Applicant’s Age                                           Maximum Eligible Tenure

           21 – 35 years                                                     30 years

           36 years                                                             29 years

           37 years                                                             28 years

           38 years                                                             27 years

           39 years                                                             26 years

           40 years                                                             25 years

           41 years                                                             24 years

           42 years                                                             23 years

           43 years                                                             22 years

           44 years                                                             21 years

           45 years                                                             20 years

  HDFC Home Loan Eligibility Based on the Value of the Property

              Property Value                               Loan to Value Ratio

              Up to Rs. 30 Lakh                            90% of property cost

          From 30 lakh to Rs. 75 lakh                 80% of property cost

             Above Rs. 75 lakh                             75% of property cost

  HDFC Home Loan Eligibility Based on the Credit Score

               Rating                                             Credit Score

                 Good                                              750 and above

                Average                                           600 – 750

                 Poor                                                Below 600

Disbursement Process

This is the last stage of the loan process. The bank will pay the money either in stages or in totality to the builder on behalf of the single mother depending on the applicable terms and conditions. For the full payment of money, there will be a deduction of money from the client’s account on an EMI basis from the month following in which full disbursement has been made (one can check for the EMI schedule in the home loan agreement).

Takeaways

Applying for a home loan as a single mother is a big life decision, and it needs to be well-informed. Home loans require meticulous financial planning. HDFCs competent and compassionate staff ensure that your journey to owning your dream home is hassle-less and rewarding. Our diversified home loan options are designed mainly to cater to the needs of single mothers buying their first homes from diverse backgrounds.

Visit the HDFC Sales website for more information about home loans.

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Get Big Savings On Taxes By Investing In NPS

The NPS offers a choice of four classes of assets and permits the financial investor to plan their portfolio. If you're not sure how much to put into each asset class, you can choose from one of the three reserves (forceful and moderate) that contribute based on your age. The NPS additionally offers financial backers the adaptability to change the resource blend.

Assuming you have depleted the ₹1.5 lakh charge saving venture limit under Section 80C, you can save more assessment by putting resources into the National Pension Scheme (NPS). There is an extra allowance of up to ₹50,000 under Sec 80CCD(1b) for interest in the benefits plot. Assuming you put ₹50,000 in the plan, your duty will decrease by ₹15,600. Many NPS benefits are available to all classes of people.

What is NPS, and how does it work?

National Pension System (NPS) is a willful, characterised commitment retirement reserve fund intended to empower the support of retired individuals on ideal choices in regards to their future through deliberate reserve funds during their working life. NPS aims to instil in people the practice of putting money aside for retirement. Opening an NPS account helps track down a manageable answer for the issue of giving good retirement pay to each resident of India.

The plan urges individuals to put resources into an annuity account at regular intervals throughout their professional life. After retirement, the endorsers can take out a specific corpus level. As an NPS account holder, you will get the leftover sum as month-to-month benefits post your retirement.

At first, the NPS plot covered just the Central Government workers. Presently, be that as it may, the PFRDA has made it open to all Indian residents on an international premise.

How can you save taxes through NPS?

Tax benefits on NPS include:

1) Representatives receive further tax advantages on speculation guided through their manager under the corporate NPS scheme. Such undertakings are deducted from available pay up to 10% of salary (basic + Dearness Allowance) to the extent of Rs 7.5 lakh u/s 80CCD (2) of the Income Tax Act, 1961.

2) Representatives who contribute to NPS are eligible for a tax deduction of up to 10% of their remuneration (Basic + DA) under Section 80 CCD(1), up to a maximum of Rs. 1.50 lakh under Section 80 CCE. Area 80 CCD(1B) allows for a tax deduction of up to 50,000, well beyond the overall ceiling of Rs.1.50 lakh set by Sec 80 CCE.

3) Qualified for a fee exemption on the acquisition of annuity after reaching the age of 60 or superannuation under area 80CCD(5). The annuity's next payment is subject to taxation under section 80CCD(3).

4) Fee exemption on the amount withdrawn up to 25% is available under     incomplete withdrawal tax incentives, subject to the criteria and limitations set about by PFRDA under area 10. (12B).

Conclusion

Significant benefits of NPS are that it is a low-cost speculating option and a solid plan for post-retirement requirements. Under segment 80CCD(1B), one can get an extra tax break up to Rs 50,000 a financial year.

You can easily apply for NPS online via the online site. If you want to know more about NPS investments, check out our official HDFC website.

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Top 5 Reasons to Invest In Mutual Funds Today

Investing your money the right way is likely to fetch you heavy returns in the long run. One such investment method that ensures to deliver positive results is mutual funds. And choosing the most suitable mutual fund plans depending on your needs will guarantee financial freedom for the rest of your life. 

However, many people are worried about facing losses and are hesitant to invest mutual fund schemes in India. If you're one of those, here are the top 5 reasons how calculated mutual fund investing leads to financial freedom.

Why should you invest in mutual funds?

1. Access to diversified portfolios

Mutual funds allow people to invest in a wide range of shares and financial instruments. With the same amount of money, a person can invest in a mutual fund with various stocks or bonds rather than buying timid shares with the same amount. This diversity is an advantage when it comes to managing the portfolio when the market is volatile and also helps to reduce losses due to uncertainties. 

2.  Exposure to different types of mutual funds 

Unlike other modes of investing, mutual funds allow you to choose from a wide range of funds depending on your needs and budget. Some of the most common funds are stock funds, bond funds, sector funds, balanced funds, and money market funds, and each of these has its own benefits. In addition to this, one can also choose between an active portfolio for active management of funds or passive funds where there is no interference from a manager. 

3.  In-depth transparency about your investment

Mutual funds offer their investors the freedom to access their portfolios, helping them gain clarity on their investments. As an investor, you can also view the underlying securities that their portfolio holds, along with all other necessary and relevant information. This feature allows you to keep track of your money and make prompt decisions. 

4.  High level of liquidity

If you wish to withdraw your money at any time, mutual funds allow you to do so. Unlike most other investment modes, mutual funds offer high liquidity to their investors, giving them the freedom to access their money and withdraw it. You can get cash from most mutual funds from your brokerage account just within a few days. And if you wish to sell any mutual fund, your profits are available within 24 hours for withdrawal. 

5.  Power of hiring experienced managers

Highly experienced managers are hired to handle your mutual fund portfolio, thus reducing the chances of losses. A mutual fund company maintains records and results of each fund, along with several factors like returns, volatility, and risk factors. This feature helps investors trust the investing process and provides satisfaction that their money is in the right hands. 

Conclusion

A calculated mutual fund investment might need extensive research for financial freedom in the long run. With the wide range of mutual fund schemes in India, it is essential to choose the best mutual fund company to build a successful portfolio. 

If you are confused about mutual fund NAV calculations, or which company to choose, you can check our website for our mutual fund services. Happy investing!

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Benefits of Tax-Saving Fixed deposit scheme

Fixed deposit is one of the people's most widely used plans to save and invest money. There are several fixed deposit schemes to choose from, and many people go for tax-saving fixed scheme options to save income tax. Under section 80C of the Income Tax Act, 1961, the deposits locked in these fixed deposit plans for five years are eligible for a tax deduction.

The account holders can claim a deduction of up to ₹1.5 Lakh in a year, but the interest earned is taxable. The RBI oversees these bank-backed investments, assuring the investors of safety and low risk. These were just some points, and there are other benefits of having a tax-saving fixed deposit. What are they? Let's find out.

Benefits of a tax-saving fixed deposit scheme

● Returns on investment

The fixed deposit interest rates range from 5.5% to 7.5% and change from bank to bank. These are higher than the rates of savings accounts. The interest compounded over the period of the investment makes it grow faster. Many banks offer a 0.50% increased interest rate to senior citizens. The interest earned is also subject to tax deducted at the source.

● Tax exemption

Residents, Indian citizens, and HUFs can invest in this scheme to avail themselves of the tax benefit. The entire original amount deposited by a taxpayer is exempt from tax liability. However, the interest earned on the investment is subject to tax liability under the heading 'Income from other sources.' If the interest earned is ₹40,000 or more across all the accounts held with the bank, then TDS is deducted by the banks.

● Security

A fixed deposit scheme is a more secure option than investing in shares or mutual funds. The market does not influence the interest rates of the fixed deposit. It remains fixed for a long time and until maturity. This means that you don't have to worry about the return you'll get on your investment when there are ups and downs in the market.

● Lock-in period

The Lock-in period is the time period for which investment is 'locked,' which means you can't sell, withdraw or redeem the investment for a specified period. The lock-in period in fixed deposit plans is five years. In this time period, investment remains the same, and you can earn interest on the original amount. However, after five years, banks allow premature withdrawal to the investors.

● Joint accounts

Fixed deposits also allow the investors to open a single joint account for two investors. In this case, both parties can deposit and withdraw amounts from the account. But only the primary account holder is eligible for tax benefits.

These benefits make the tax-saving fixed deposit scheme a lucrative and secure investment option for people who wish to invest their money with minimum to no risk. If you are considering investing in a fixed deposit, then HDFC Sales is the right option for you. We provide you with a number of fixed deposit plans with great service and enhanced customer satisfaction. Explore our plans to select the right one for you!

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Myths and Facts about Education Loans in India

There are many myths about Education Loans in India that often leave students very confused and frustrated. They ponder over decisions repeatedly to make sure they have made the right decision. It is, at times, impossible to tell the difference between myths and facts, and it is very important to go through each one and make an informed decision. It is also crucial to explore all the Education Loans offered to choose the right one for you.

What are the myths and facts?

Myth- The terms and conditions for Student Loans are the same no matter what course you choose.

Fact- This is incorrect as the student applications are processed by Education Loan financers who give the loans based on the student’s academic scores, country, university , course, parent , collateral if required and much more. Each loan is unique.

Myth- Education Loans cover only tuition fees.

Fact- This also doesn't seem right. Education Loans to study abroad often cover not only the tuition fees but also living expenses, books, periodicals, and at times, travelling.

Myth- EMIs begin soon after you apply for the loan.

Fact- This is another incorrect statement as EMIs usually start after a grace period, which ends a few months after graduation or when you start your employment.

Myth- I have secured a loan, so I will not be able to apply for a scholarship!

Fact- An Education Loan endorsed by the Bank does not affect any scholarship you may wish to apply for, as they are authorised by universities, private companies, or the Government.

Myth- Self-funding is a better option.

Fact- While choosing whether or not to apply for an Education Loan completely depends upon the student, it may be better to get some financial aid than using the funds that can be saved and used in the future. It helps the students build a good credit score while studying which can help him take other loans for starting up their own business or even a home loan etc plus their parents can enjoy the 80 E tax benefit 

Myth- Education Loans do not affect your credit score.

Fact- This is untrue, as your repayment record can help you build a strong credit history for your financial future.

Myth- Loans are more expensive abroad.

Fact- Loans are cheaper while working overseas. This is because students who study abroad have a higher chance of getting a job in the country they have studied in. Thus, they have a chance of earning in foreign currencies, most of which have a higher value than the Indian rupee, lowering the amount to be paid off.

Myth- There are Education Loans free of interest.

Fact- While the Education Loan interest rate varies from one Bank to another, the average rate is 8.68%. While there are no Education Loans free of interest, In India, there is a chance that you can nullify the Education Loan interest rate by applying for 0% interest scholarships or Government financial-aid schemes.

The terms and conditions vary for each student as each has unique requirements and qualifications. Education Loans to study abroad cover not only the tuition fees but also many other aspects. Choosing to apply for an Education Loan helps you save for the future and helps build your credit history for your financial future.

Working abroad after graduation will make paying back your Education Loan cheaper, as you are earning in a foreign currency. The Education Loan interest rate can be cancelled out or reduced by applying for various subsidy schemes and scholarships. To get help, contact us.

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A Guide to Home Insurance and How To Choose the Best Plans

The value of home Insurance plans is apparent when you understand what home insurance implies. Home insurance is a type of property insurance that covers you against various damages and dangers such as accidents, thefts, and peril damages. 

Like any general insurance plan, a home insurance plan is relevant only till a stipulated tenure of your choosing. Your home is likely your costliest asset. Assured security from unexpected dangers is undoubtedly paramount. How should you go about creating such financial stability for the future?

Standard benefits of taking home insurance

In the unfortunate event of damage incurred by your house, having a comprehensive insurance plan can be highly beneficial. The event can cause major emotional as well as financial suffering. The security of a home insurance plan saves you from the tedious and draining restoration process. The pros of having decent home insurance are listed below:

Liability coverage

Home insurance plans protect against personal injury and property damage incurred by guests while residing in the insured residence. Liability coverage ensures protection for you and your home from any legal troubles.

Coverage against calamities

Natural calamities such as floods, storms, or earthquakes can cause significant damage to your house. Unnatural disasters and anti-social events are covered under home insurance plans. In such an event, you receive assistance financially recovering from the loss.

Temporary living expense coverage

In case of damages, your insured house may become impossible to reside while repairing or renovating. Your insurance can cover the expenses you may make for renting another space until the rebuild is complete.

Coverage against loss/damage of valuable assets

Your home insurance policy likely covers more than just the house's structure. Your personal belongings are also secure in the event of loss or damage within an insured home. Documents, jewelry, appliances, and other valuable or expensive items are also covered.

Home loans are easy to avail of at the bank.

You are a more attractive candidate for loans from banks if your home is insured. It is often one of the major categories for financers in this regard.Home insurance plans offer many other added features or clauses that may be within your priorities for coverage. You can compare policies to find the one most suitable for you.

Steps to compare home insurance plans

Before choosing your home insurance policy, the first and most important thing to consider is comparing plans. Varying needs lead to varying. Focus on evaluating your needs, comparing costs, and determining the capability of insurance policies.

Evaluate the policies

Policies offer coverage on various damages or events. Since you are not likely to have plans covering all things, note what is missing just as you note what is covered. It is possible to buy coverage for specific events separately.

Make cost comparisons

Begin with comparing your deductible and premium offered. Depending on your financial planning, you may want a higher premium and a lower deductible or vice versa.

Liability limits on home insurance policies vary. Some policies may also exclude or deny coverage on specific scenarios. 

Apart from standard benefits, home insurance offers various features customisable to your requirements. Assure a safe and secure life for you and your family by insuring your home. Recuperating from unexpected damage expenses can be daunting. Buying an HDFC home insurance is convenient, user-friendly, offers instant policy issuance and secure payment options. 

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Why Is Health Insurance Best for Saving Money on Taxes?

Tax saving is one of the most vital determinants you need to contemplate while devising your Insurance Investment Plan. Regardless of your income, you must develop an Investment Plan as it not just enables you to save money for the future but further empowers you to produce a significant corpus over a fixed time. 

Also, these Tax-Saving Insurance Plans serve as a primary means for several investors to curb the depletion of the aggregate income earned. 

What makes Health Insurance the top tax-saving scheme in India?

Health risks are an inevitable component of any person's life. Also, keeping in mind the skyrocketing medical costs and rising number of severe ailments, it is imperative to hold the financial buffer to safeguard yourself against medical emergencies. Investing funds in Health Insurance Plans is a transcendent way to lessen the tax burden by knowing their advantages and shortcomings to make profitable investment decisions. 

Health Insurance covers pre and post-hospitalization expenses. People owning a Medical Insurance Policy can receive tax exemptions of up to ₹35,000 under Section 80D of the Indian Income Tax Act, 1961. 

Apart from this, the Union Budget 2018 provided tax relief for senior citizens who have increased medical expenditures. The Budget has amended the policies under Section 80D of the Indian Income Tax Act, which permits a deduction for health expenditures incurred on Health Insurance Plans for senior citizens. Also, this deduction can get claimed either by the senior citizens themselves or the older adults. 

Section 80D of the Indian Income Tax Act, 1961 also provides an exemption of ₹5000 for payments made towards preventive medical check-ups. This exemption will remain within the prevalent limit of ₹25,000 or ₹50,000, as the claim may be, and the individual himself, spouse, or kids can claim this amount.

Some of the provisions for availing tax benefits under Section 80D of the Indian Income Tax, 1961 are as follows: 

Provision 1: The maximum deduction amounts available for a Health Insurance policyholder, including their spouse and kids, is ₹25,000. Also, the insured person can claim Income Tax deductions of up to ₹25,000 for their parents below 60 years of age. 

Provision 2: If the parents of the person holding a Health Insurance Policy are above the age of 60 years, they can claim deductions of ₹50,000. 

Provision 3: If the policyholders and their parents are both above the age of 60 years, the person owning a Health Insurance Policy can claim deductions of ₹1,00,000 (₹50,000 each, insured person and parents). 

Also, to give you a better overview of tax benefits under Section 80D of the Indian Income Tax Act, below is a tabular representation. 

The bottom line

If you are looking for a Tax-Saving Health Insurance Policy, feel free to visit us.

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What are Commercial Property Loans?

A comfortable and positive working environment is a must to achieve efficiency. Also, with a workplace tailored to your particular business, you can take your dream business to a whole new level. However, given the skyrocketing real estate prices, it can become challenging for many people to purchase a commercial property. This is where Commercial Property Loans come into the picture and help you get close to your business objectives.

Understanding Commercial Property Loan 

A Commercial Property Loan, also known as a Real Estate Property Loan, is a credit option available for people who want to purchase a commercial property. In addition, you can also take a Commercial Property Loan if you need to give your property on rent.

 Apart from this, you can avail a Commercial Property Loan for the following purposes:

 ·       Buying a new office

·       Buying a new store or a clinic

·       Expansion/ renovation of an office/ store/ clinic 

·       Development of marts 

·       Development of business infrastructure and work premises for SMEs

·       Buying a property for conducting business

·       Development of properties to rent them to SMEs

Who can apply for a Commercial Property Loan?

Self-employed working professionals such as Chartered Accountants, Doctors, and Lawyers remain eligible for a Commercial Property Loan. In addition to this, business owners also qualify the eligibility criteria to apply for a Commercial Property Loan. 

What makes Commercial Property Loans beneficial for accomplishing business goals?

Mentioned hereunder are some of the advantages of a Commercial Property Loan that makes it the best financing option to attain your business goals. 

Capital gains

Real estate costs have been on an expanding trend for an extended time, so there are higher odds that the worth of the commercial property you purchase could increase.  

Therefore, you can receive a lump sum amount when you market the purchased property. You can then invest this acquired sum in your business ventures to make them more profitable or attain your business objectives. 

Reduced interest rates 

When compared to various unsecured borrowing, Commercial Property Loan interest rates are more affordable. In addition to this, while computing your business expenditures, getting set monthly repayments will facilitate better and timely loan repayment. 

Hence it might not be wrong to say that these reduced loan interest rates are one of the most significant advantages of a Commercial Loan that help you take a step closer towards attaining your business goals. 

Conclusion

Obtaining a Commercial Property Loan is not much more challenging than availing a regular Mortgage or a Housing Loan. A higher capacity to repay your Commercial Property Loan given its shorter loan duration add-ons to the borrower's eligibility. At HDFC, you can get an effective Commercial Loan to kickstart or develop your business and accomplish all your short or long term goals. 

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Should you Refinance your Student Loan?

Student Loan Refinancing simply means exchanging your current Student Loan with a new Student Loan that has a low Education Loan interest rate. 

Though Student Loan debt sounds daunting, private Student Loan rates are lower, making refinancing your Student Loan a profitable option. You get the liberty of lower monthly payments, and your loan can be paid off faster. 

Moreover, your debt-to-income ratio decreases with lower monthly payments, opening up space to qualify for a mortgage. However, refinancing your Student Loan has some drawbacks too and should be considered in certain situations only. Read ahead to find out. 

When should you consider Refinancing your Education Loan?

Refinancing, though beneficial in ways, can be demanding too. Even if you decide on taking up a new Education Loan, you will need to qualify certain factors imposed by the lender. You can proceed to refinance your Education Loan when:

You find an opportunity to save

Refinancing can be profitable only if you are paying a low interest rate. First, calculate your savings on an Education Loan Refinancing Calculator and see how much you will save. If it is not sufficient, wait for the right time. 

Qualify the Refinancing criteria

To qualify for refinancing, you need to be eligible with the following criteria met:

High credit score

Stable income

Existing Education Loan to study in India and abroad

Completion of studies and initiation of loan repayment

A Debt-to-Income Ratio of 50% or less

Diligent credit history

However, if the existing loan is from a PSU Bank, then the rates may be lower than HDFC Credila to compare with but if it is with any other NBFC, then the parents’ CIBIL Scores  and the student academics are checked whether it is up to HDFC Credila’s underwriting standards.    

Your finances are persistent and stable

Consider Refinancing your Student Loan only if your finances are rock solid and you will be able to make payments without worry. A steady financial situation avoids the risk of default. 

Besides your credit history, the private lenders will check whether your income is sufficient to qualify for Refinancing. They will ensure that you are capable of repaying the loan, and that is why new graduates hardly qualify for Refinancing. 

Major benefits of Refinancing your Education Loan

The benefit of saving money remains at the top of the list. Nonetheless, there are other advantages to Refinancing your Education Loan. Instead of paying different interest rates for different Education Loans, you can consolidate your loans into one and pay one low rate of interest.

Additionally, if you are unable to pay your Education Loan by the end of the loan tenure, you can refinance and extend the repayment period. The EMIs will be lower; however, the total interest paid might go up. 

Conclusion

Refinancing your Education Loan can lighten your debt burden. If you are looking for Refinancing your Education Loan, an HDFC Credila Education Loan without collateral is the loan for you.

For more Details please visit our website : https://www.hdfcsales.com/education-loan

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Tips for Buying Your First Home at a Young Age

For young people, buying a home is like accomplishing a life goal. Especially for those who are willing to buy their first house, nothing is more exciting than finally having the key to your house in your hand. To fulfill your dream, Banks and other financial institutions provide Home Loans and other facilities to help you build your wealth, which is really important for the future.

As such, it is very necessary to know about the basics of Home Loan eligibility criteria. Listed below are some necessities that need to be accomplished before applying for a Home Loan.

The applicant's minimum age plays a significant role in determining the Home Loan eligibility criteria; the restricted age for the loan term is 30 years (subject to the age of retirement e.g. 58/60).

The present and future financial position also have a significant role in determining the loan amount.

A good Credit Score will surely affect the loan eligibility of an individual. 

Let's move ahead with the intuitiveness to understand more about buying a property at a young age.

An ideal time for buying a home

House prices rise, fall and are influenced by several factors allied to the demand and the economic context.

Choosing the ideal time to buy your first home is intrinsically related to Home Loan costs. Times when rates are attractive, and the bank's interest rate reductions are always a good opportunity.

Significance of EMI in your first property

Owning a home without a Home Loan appears to be impossible today. You'll have to pay EMIs every month, which is likely to be much higher than the rent you're currently paying. 

So, to have a better idea, you can use a Home Loan EMI Calculator to figure out how much you'll need to set aside each month to repay the Home Loan. This will give you a precise figure regarding savings and investment returns.

The role of a good Credit Score in a Home Loan

A good Credit Score (above 750) is an important aspect of Home Loan eligibility criteria. This not only makes your Home Loan disbursement easy but also increases the chances for lower interest rates. Therefore, if one has a good Credit Score, then the chances of getting a lower interest rate increase.

You can improve your Credit Score by clearing all the dues of Credit Cards and not using a Credit Card to purchase goods in a short period. Also, it is essential to cross-check Credit Report errors before applying for a Home Loan.

A stitch in time saves nine

Getting a Home Loan itself is a big responsibility on your shoulders. It is imperative to analyze everything carefully, learn what you can, and consider all the alternatives beforehand, especially for Home Loans, as repayment will take a long time.

Initially, one should be clear about the costs related to other expenses related to a home purchase, such as taxes and EMIs associated with Home Loans. It would be best if you take the help of the Housing Loan Calculator to calculate the accurate EMI you need to pay.

Relevance of an Emergency Fund for future

If an unforeseen incident affects your primary source of income, then a plan-B can be your savior. Therefore, to overcome any change in circumstance, it is crucial to have money on hand for emergencies. Ideally, it will be able to cover the monthly installments of the Home Loan.

For more assistance, reach us at http://www.hdfcsales.com/.

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PPF vs. FD: Which is a Better Option for Savings?

Introduction

Fixed Deposits (FD) are financial investment instruments offered by Banks and Non-Banking Financial Companies (NBFCs) that allow investors to deposit money and get a higher rate of interest than a normal Savings Account. The banks offer different Fixed Deposit Schemes. The various types of Fixed Deposits are Normal Fixed Deposits, Tax-Saving Fixed Deposits, Senior Citizen Fixed Deposits, Cumulative Fixed Deposits, Non-Cumulative Fixed Deposits, and Flexi Fixed Deposits. 

The Public Provident Fund (PPF) is a long-term investment option with a reasonable rate of interest and returns on investment. PPF is a type of Provident Fund. Other types of Provident Fund include Statutory Provident Fund, Recognized Provident Fund, and Unrecognized Provident Fund. So, which is best for you: PPF or FD?

PPF vs. FD

Both the Public Provident Fund and the Fixed Deposit are safe investment and savings instruments. However, there are substantial differences. Some of the differences are-

PPF is issued by India Post and other authorized Banks like HDFC, whereas almost all Banks and NBFCs issue FD.

Eligibility criteria for PPF include Residents of India Only, whereas eligibility criteria for FD include Residents, HUFs, Trust, Corporation Firms, etc., including NRIs.

PPF only allows for a tenure of 15 years. This implies that with PPF, your invested amount will be locked in for 15 years. FD tenure are flexible, so you get to choose the investment period.

Premature withdrawal is permitted after 5 complete financial years of deposit in a PPF Account, which means you can withdraw money in the 7th running year. Banks let you withdraw Fixed Deposits but depending on their policy, they may impose a penalty if the deposit is withdrawn too soon.

Loans against the PPF can be taken out starting in the third year after the account is opened.  When it comes to FD, most Banks offer the Overdraft option that can reach up to 90% of the balance.

Joint Account is not allowed in PPF but allowed in case of FD.

The maximum amount that can be deposited in the case of PPF is limited to Rs. 1.5 Lakhs per year, whereas in FD, there is no upper limit on deposit amount.

The Government sets and revises the PPF interest rate on a quarterly basis. Financial institutions determine the interest rates on Fixed Deposits.

Conclusion

When choosing between PPF and FD, one should carefully consider the benefits and drawbacks of both products. Also, the decision generally depends on the needs of the investor.  If you want a low-risk investment with good returns and the flexibility to prematurely close the account, FD is a far better choice. However, PPF will be advantageous if the objective is to keep the money safely locked in for a long period or is to be used at a later stage in life.

Watch our Video for More Details.

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NPS Withdrawal Rules you Should Know About

The National Pension System (NPS) is a federally backed National Pension Scheme. In January 2004, it was made available to Government employees for the first time. The NPS began with the Indian administration's decision to terminate defined benefit pensions for all employees hired after January 1, 2004. While the program was originally intended for Government employees, it was expanded to include all Indian residents in 2009. The National Pension System (NPS) is the endeavor to establish a pensioned society in India.

What is NPS?

The National Pension Scheme (NPS) was established by the Indian Government with the aim of providing individuals with a stable retirement fund once they retire. Enlisting in a plan is frequently noted to be simpler and easier than quitting a plan. The National Pension Scheme, on the other hand, offers a variety of withdrawal choices. Following a few simple guidelines will make withdrawing funds from your National Pension Scheme as straightforward as the post-retirement lifestyle you envision.

Withdrawal rules for different classes of NPS investors:

On retirement, for subscribers in the Government sector.  

At least 40% of the money must be put into an annuity, with the option to take the rest in a lump sum payment. A user's lump sum withdrawal can be deferred until he or she reaches the age of 70.

On voluntary retirement, for subscribers in the Government sector. 

At least 80% of the money must be put into an annuity. If a person's cumulative pension is less than Rs. 1 lakh, he or she might opt to withdraw the entire sum.

On retirement, for subscribers in the Private sector. 

At least 40% of the money must be put into an annuity, with an option of taking the rest in a lump sum payment. A consumer's lump sum withdrawal can be deferred until he or she reaches the age of 70. If an individual's cumulative pension is less than Rs 2 Lakhs, he or she might choose to withdraw the entire sum.

On voluntary retirement, for subscribers in the Private sector. 

A person's account should have been active for at least ten years. Annuities should have been purchased with 80% of the money. If a person's cumulative pension is less than Rs. 1 Lakh, he or she might opt to withdraw the entire sum.

Conclusion

NPS rules have become much more flexible now, and you can make full or partial withdrawals as per your needs. However, you will have to invest a part of the corpus in an annuity that provides a pension. Many withdrawal options are now available to meet the needs of subscribers with different priorities.

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Top 5 Things you Need to Know Before you Earn your First Salary

Introduction

It's always exciting to get your first pay-check. For anyone who has recently started working, receiving a notification about their salary credited to their account is an overwhelming feeling. If it's the first time you've ever received a pay-check, you're probably eager to spend it, that’s understandable. However, how you spend your first pay-check might reveal a lot about your financial strategy. Rather than making hasty decisions and spending on things that only provide temporary pleasure, consider how to make the current beginning worthwhile. 

Here are some valuable tips on how to make the most of your first income in this post.

Start with making a budget plan

Splitting your money into various sections is what smart budgeting entails. Your expenses, such as rent, food, bills and other essential requirements, should receive 50% of your pay. The remaining 30% can be spent on entertaining things since you definitely deserve it. The remaining 20% should be put into investments. Having a budget does not always imply a rigorous, no-fun existence. It actually makes it simpler to prioritize since you have more control over how you spend all your pay-check.

Pay off your debts

Student debt is among the most significant debts that recent graduates go through. It's impossible to pay off your college debt right away, but don't put it off any longer. Not paying your college loans on time will lead to severe consequences, whereas paying them on time, or even paying extra, will result in no penalties. That's why you should get the repayment initiated as early as you get a steady paycheck. If you feel you can afford to cover more for a specific month based on your personal finances, go ahead and do it.

Create a Rainy-Day Fund

Rainy Day Funds are monies that you save up for when life throws you a curveball. For instance, you're involved in a small auto accident and are required to use a primary source of income to pay for the damages. You then have no money left at the end of the week to get through the rest of the month.

Start Investing

You shouldn't let a lack of fundamental financial understanding keep you from expanding your money early. Invest as soon as possible to take advantage of compound interest. Mutual Funds, SIPs, and Fixed Deposits are all appropriate places to start. Mutual Funds in India have a low risk and high return, making them a fantastic place to start. Another advantage to investing now is that it allows you to put your capital to work for you. Saving your money in the bank and leaving it in liquid form for years is risky since inflation will eat away at its value or service charges will rise. You may make a considerably bigger return if you make investments instead.

Obtain an Insurance

As life is frequently unpredictable, having the correct insurance while you're young is crucial. When events don't go as planned, it may have a major financial impact. You will be able to preserve money for future economic targets as well and provide financial stability for dependent aged parents or family members with the correct insurance.

Conclusion

It's tempting to think that because you're young, you'll have more time to prepare for the following five decades of your life. However, it's always best to be ahead of the curve and begin your path to financial independence right now!

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How to Make Smart Financial Decisions When Buying a Car

There is nothing compared to the feeling you get when you drive your new car back home, from the showroom. It gives you a sense of accomplishment. 

This does not just bring you joy but also a sense of responsibility with it; responsibility to keep it well maintained and away from all kinds of damages just like a newborn. However, this responsibility magnifies when you have purchased the car with a loan. 

The future is surely uncertain. To safeguard oneself from future mishaps is only rational. Financial strain in unfortunate situations can be avoided by getting insurance. There are all kinds of insurance available - life insurance, health insurance, property insurance, to name a few.

There is auto insurance for cars, motorcycles, and other road vehicles. As per the Motor Vehicles Act, it is mandated in India for cars to get vehicle insurance.

What is Car Insurance?

If you are a car owner you must be familiar with the importance of getting your car insured. It’s a contractual agreement between you and the insurance company that protects you from financial loss in unprecedented events like accidents, theft, etc.  

Some policies even compensate for the damages caused due to natural calamities like floods, earthquakes, to your car. It even covers third-party liability where you have to pay damages to another vehicle owner. 

Needs cum Benefits of Car Insurance

1. Coverage For The Accident: Car insurance covers the bills of vehicle repairs for the damages caused due to the accident.

2. Coverage for Natural Calamities: damages occurring due to natural calamities like floods and earthquakes are also compensated (subject to the policy norms)

3. Coverage for Legal Expenses: Legal fees and expenses in respect of claims for personal injury or death as a direct result of a car accident are covered by the policy.

4. Other Than Accident Coverage:  Car insurance also covers for the damages caused to the car, other than accidents like theft, fire, snow, etc.

5. Third-party Liabilities: It even covers third-party liabilities where you have to pay for the damages to another vehicle owner.

6. Windscreen Coverage: If your car windows and windscreen are accidentally damaged, then the cost of repairing or replacing these as well as the cost of repairing the resultant scratching of the bodywork, are also covered by the insurance company.

7. Traveling Abroad: it also covers the minimum insurance required while driving the insured vehicle in any member country of the EU or a country set out by the European Union Commission, provided your intention to travel is informed to the insurer.

Conclusion

We frequently question the necessity of having an insurance policy, whether it is life insurance, health insurance, or even car insurance, but with an increasing number of wheels on the road each year, it is essential that your vehicle is protected.

However, one must do proper research as well as read the terms and conditions mentioned in the policy before choosing and investing in an insurance policy to ensure proper utilization of money.

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Does an NPS Scheme help you to save Income Tax?

Issues with your income tax can be an alarming concern. Taxpayers have a paralyzing fear while filing their taxes, even if the fear is often unjustified. Our composite tax code has instilled a sense of fright in the otherwise ordinary people’s minds.

The National Investment Scheme or NPS is a long-term plan for investment, curated by the Central Government of India. This initiative run by the Indian Government is regulated and administered under the PRFDA Act 2013, by PRFDA (Pension Fund Regulatory and Development Authority). The objective is to provide retirement benefits to the Indian citizens, also coming from unorganized sectors.

The NPS in India is specially designed for people who envisage a stress-free, idyllic, laid back life post-retirement. After retiring from the 9 to 5 grind, the NPS bestows the Indian citizens with the ‘big bank balance’, that was arranged to complete the bucket list. 

This flexible scheme provides an array of beneficiary factors for its subscribers. The NPS tax benefit factor is one of the major advantages that its user can avail out of the many. Let’s check out whether the NPS scheme India actually saves you income tax or not. 

Tax Benefits of opting for the NPS Scheme

1. There is no getting away without paying taxes, but thankfully there are provisions to lessen the tax outgo. The subscribers of this particular scheme, irrespective of whether he or she is a government employee or self-employed or worked for a private organization, can demand deductions against contribution under Section 80CCD of the Income Tax Act. But the maximum deduction amount one can claim cannot exceed Rs.1.5lacs in a Financial year.

2. All the taxpayers are allowed to claim funds worth Rs.50,000, for an additional self-contribution, which therefore allows a total tax deduction of up to Rs. 2L limited to 20% of the gross income.

3. In case you are not happy with your fund manager's performance, you always have the option to change the scheme of the pension and the fund manager. 

National Pension Scheme Benefits

1. The NPS is voluntary, which means its subscribers can contribute any time during a Financial Year and also has the liberty to change the amount he desires to set aside and save each year.

2. This flexible scheme supplies a wide range of investment options and Pension funds to its subscribers through which they can see their money grow.

3. The subscriber goes through a simple and hassle-free process when opening an account with NPS, which only has the Permanent Retirement Account Number(PRAN), and it is kept with the user for a lifetime.

4. Account maintenance charges are comparatively lower, and the assembled pension revenue to the subscriber in due course turns out to be immense.

5. PFRDA regularly monitors and regulates the NPS, with transparent investment criteria and performance review of fund managers by NPS Trust.

6. An NPS account can be opened through the eNPS portal, and the account is manageable online, providing easy access to its subscribers.

Conclusion

The NPS, which the Government of India primarily designed for government employees in 2009, Government made this scheme available to all between the age group of 18-65. The NPS has been made entirely tax-free, whereby the entire corpus gets away with tax at maturity.

To sum it up, Yes, NPS Scheme actually helps you save taxes. So if you are looking forward to a safe and guarded future, NPS can be a very lucrative possibility.