HDFC Bank

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Looking for easy travel procedure? Consider these 5 user friendly apps

Are you planning your next vacation? Are you wondering where you can make bookings for your travel? With the advancement of internet, travel bookings have shifted from offline bookings to online bookings. It is possible to make all bookings on the internet. With most users shifting to smartphones, there are a range of travel booking apps that can be used for making these bookings.

A travel booking app is an app that provides a user access to hotels or flights for bookings. These apps store a limited inventory of hotels and have access to flight, bus and rail servers to help with bookings. Using apps for travel reduces the hassle of finding an agent and figuring out the authenticity and veracity of a hotel or a package. Most travel apps also have a review system which further helps travellers.

When it comes to Indian travellers, what are the best travel apps that can help with easy travel procedure?

Here are 5 apps to help you with your travel bookings:

1.     TripAdvisor:

TripAdvisor is one of the largest websites that helps millions of travellers with their travel bookings. This site not only has attraction, hotel and restaurant reviews, but it also searches for hotel availability and prices from different websites. By simply entering the days of your stay, you can find out the site offering the cheapest rate and proceed to book from that site. The reviews on TripAdvisor help the traveller decide attractions and this app also has an offline version.

2.     PayZapp by HDFC Bank:

PayZapp is fast emerging as one of the best travel apps. This app allows the user to book tickets and hotels through SmartBuy. SmartBuy is a travel portal by HDFC Bank which pulls information about hotels, flights and other transport. But the important distinguishing factor about SmartBuy is that it shows one column with the base price and in the second column it shows the total price charged by the travel portal. This helps the user find out the service fee that the portal is charging and save. It also gives cashbacks and redemption points to HDFC card users along with cashbacks in the PayZapp wallet.

3.     Yatra:

Yatra is one of the popular travel booking apps in India. It allows the user to book hotels, flights, tours, trains, buses and activities. Yatra offers ecash on bookings which can be redeemed on future bookings or redeemed for vouchers from ecommerce portals like Zivame, Myntra, Urban Ladder etc. This is one of the easiest travel booking apps with a clean interface.

4.     MakeMyTrip:

MakeMyTrip is one of the biggest apps for travel in India. It is listed on NASDAQ, a US stock exchange. MakeMyTrip provides flight bookings, hotel bookings, train bookings, bus bookings etc. This travel app gives deep discounts to its customers for travel bookings and travel plans.

5.     IRCTC:

This app for travel is operated by the Indian Railways. It provides flight and train bookings. It is also possible to book tour packages offered by Indian Railways through this website. This is one of the best travel apps because of the low service fees. Service fees for booking air tickets is only Rs. 59 per ticket and there is no charge for booking train tickets.

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5 reasons why food order apps are in demand

The smartphone penetration in India has shot up with the easy availability of phones at affordable rates. This has led to a rise in apps that cater to each aspect of the customer’s life. In recent times, food ordering apps are finding great demand from customers.  

These food ordering apps allow a customer to pick a restaurant and order dishes available on their menu. Once the order is submitted to the restaurant, it accepts the order and finally, a delivery executive delivers the food to the given address.

This simple procedure to enjoy food from restaurants has made these apps extremely popular. Let us examine what exactly makes these apps so popular among users.

Here are 5 reasons why food order apps are in demand:

1.     Convenience:

Food ordering apps have provided great convenience to people. It is possible for a customer to get his favorite dishes from a restaurant delivered right to his doorstep. It is possible to order food online as long as the restaurants are open. These apps are also extremely simple to operate. The user interface is sleek. The apps filter restaurants based on different criteria and it is possible to find a restaurant near the user and order food online.

2.     Offers:

One of the biggest reasons for ordering from food delivery apps are their offers. One of the biggest reasons to order food online is the offers. Sometimes, these offers make it cheaper than ordering directly from the restaurant itself. The delivery charges on the food are also reasonable.

3.     Delivery:

It is possible to get the ordered food delivered to any address. It is not necessary for the customer to be physically present at that address. This makes it convenient for a third person to order food at any point of time. Apart from that, most food ordering apps allow customers to select the option of delivery near me which shows restaurants in the vicinity that will deliver food fast. This option helps the customer order food that will reach him quickly.

4.     Personalized solutions:

One of the best advantages of ordering from food ordering apps is the customer service that they provide. In case of late delivery, quality issues with the order or any other problems, the app’s customer service team provides a proper resolution.

For people who order food online frequently, the app provides options for new and noteworthy restaurants. The app may also have a loyalty program and offer points on orders.

5.     Real time tracking:

Food ordering apps generally provide real time tracking for their delivery personnel. This makes it very easy to find out where the order has reached.

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5 reasons to shop through shopping apps

With a digital revolution, there is an increase in the number of items that can now be done online. Many customers have shifted to smartphones which has led to an explosion in the number of apps for smartphone users. These apps have converted most of a user’s daily activities online. Whether it is bill payments or fund transfers, it is all done online now.

But one of the biggest revolutions that these apps have brought about is in terms of shopping. With a large number of shopping apps related to every aspect i.e grocery make up, clothes, there is an online shopping app for anything that a person may need.

Using shopping apps has completely transformed the whole shopping experience. But why shift to shopping online using an app?

Here are 5 reasons to shop through shopping apps:

1.     Convenience:

The biggest reason to shop through shopping apps is convenience. It is possible to get everything you need at your fingertips using an online shopping app. These apps are extremely simple to use and people who haven’t shopped online can easily adapt and learn. This app reduces all the effort involved in visiting a store, picking out products and buying them.

2.     Offers and discounts:

With a lot of apps in the marketplace, it is possible to find great offers and discounts for different products. For the best deal online shopping is recommended. It is very common to check the product price offline first before buying it through an online shopping app. There are different discounts and cashbacks on payment as well since most of these apps tie up with banks. There are many different online shopping offers. Some apps come up with these offers to coincide with festival dates such as Republic Day, Independence Day, Holi, Diwali etc.

3.     Payment options:

A user shopping on an app has different options for payment i.e. cash on delivery, net banking, credit or debit cards, EMI, UPI or wallet-based payments. These options are available for each order. The customer can choose a different payment option for each order.

4.     Membership and loyalty:

Most shopping apps have some form of membership or loyalty program. These programs give points on each purchase which can be redeemed on future orders to give further discounts on products.

5.     Variety of products:

The biggest advantage of using an online shopping app is the variety of products available on it. Be it a makeup shopping app or a fashion app, there is a wide range of products available for all types of shoppers. These apps make it easy for anyone to become a vendor and sell their products online through this app. The variety in the products is one feature that brings people back to use the app.

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5 benefits of doing online grocery shopping

With almost every aspect of life getting simplified because of apps, it was only a matter of time till it got to groceries. In fact, with several departmental stores coming out with apps, online grocery shopping has become a reality that is changing the lives of many consumers.

These apps allow a user to buy groceries online along with other items such as toiletries. Some apps even stock fresh perishable vegetables along with dried pulses, snacks, flours and other kitchen items.

There are many such apps in India and choosing the best grocery app is difficult. But why should you switch over to a grocery app when you can get items from the market at any time that you want?

Here are 5 benefits of doing online grocery shopping:

1.     Convenience:

There is no need to visit the local markets and hunt for the best produce. With a grocery shopping app, it is possible to get almost everything available in the market at your fingertips. These apps work 24x7 which means it is possible to place an order at any time. The app processes the order and schedules delivery based on the availability of delivery personnel. Finding everything required in one grocery app greatly reduces the time and hassle involved in continuously shopping in the market.

2.     Offers:

Using a grocery app for shopping can turn out to be advantageous because of the multiple offers. Not only do these apps offer products at a discount, but tie ups with different cards gives the user a discount on payment as well. This discount can be in the form of a cashback or even reward points on a credit card.

3.     Delivery:

The best advantage of grocery shopping online is that the items ordered are delivered to the given address. Apart from that, some apps give the customer an option of picking up the products from a nearby delivery location. In fact, online grocery shopping allows the customer to schedule the delivery based on his convenience.

4.     Variety in products:

Online grocery shopping is a boon for people who don’t get many products available in their areas. Most grocery apps have a wide range of products that are made available. These include products from all parts of the country and abroad that may not be available in local shops.

5.     Grocery app shopping experience:

Using a grocery app is very easy. The user interface is clean and easy to understand even for people who have not used it before. These apps generally have an intuitive software which shows items that have been previously ordered to make the shopping experience better.

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3 services movie ticket booking apps offer

With most people switching to using smartphones, there are apps for every aspect of life, especially entertainment. There are several apps with quality content for users to stream online. Along with this, there are apps for movie ticket booking.

Now, it is possible to book a movie ticket completely online. There’s no need to rush to the movie theatre to confirm availability or check the seats. All of this is possible with movie tickets booking app.

These apps are easy to use and provide a lot of convenience to the user. Forget collecting a physical ticket, it is now possible to watch a movie with online movie tickets without the need to even print physical tickets. This is possible because of a QR code that helps theatres to identify the seats booked on entry.

Here are 3 services movie ticket booking apps offer:

1.     Booking movie tickets:

While this might seem obvious, but the best service that a movie tickets booking app provides is booking tickets down to selecting the seats. For people who would like a particular seat, online movie ticket booking allows them to select seats or pick a theatre. Movie ticket booking has become very convenient because of these apps. It verifies the movie timing in the theatre and also shows the seats that are booked and those that are available.

One of the advantages of online movie tickets is the different offers that come with such online bookings. These are usually offers associated with the mode of payment. Most offers either give a discount on the ticket amount or some form of cashback into a wallet. This helps to reduce the overall cost of the ticket. Some credit cards tie up with movie tickets booking app and give offers such as a one plus one free ticket which gives a certain number of free tickets a month.

2.     Booking snacks:

One service that you can avail on online movie ticket booking is selecting snacks that you want to have during the movie. Pre-booking snacks allows you to get snacks either during the movie or during the interval. This eliminates any need to stand in line waiting to get a snack. These apps also provide different offers on snack booking as well.

3.     Making donations to charities:

This isn’t the primary service that movie ticket booking apps offer.  However, if the user wants, he can pay a small amount over and above the ticket price to a specified charity. However, this charity is fixed and decided by the app. This amount is optional, and the user can opt out of this as well.

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5 reasons why mobile banking apps are popular

The advancements in technology, especially in banking have completely altered fund transfers. Cheques and cash transfers have become outdated. It has become so simple to use internet banking methods to transfer funds. Some of the most popular ways to transfer funds are:

·         National Electronic Fund Transfer (NEFT)

·         Real Time Gross Settlement (RTGS)

·         Immediate Payment Service (IMPS)

·         Unified Payment Interface (UPI)

However, from using internet banking on a laptop or personal computer, it is much more convenient to use an online money transfer app. Mobile banking application has made it possible to use a money transfer app to send money. Modes like IMPS and UPI transfer money immediately between two accounts.

Using apps can take a little bit of practice. Not everyone will be proficient in using them for conducting fund transfers. But why should one use a fast money transfer app instead of using the banking website?

Here are 5 benefits of net banking apps:

1.     Mobility:

The problem with using internet banking is that it presupposes that the user has a working internet connection in the form of WiFi or a LAN connection. Using an all bank money transfer app on your smartphone means you’re completely mobile and you can use the app to transfer funds anywhere and anytime. In case of NEFT and RTGS, the transfers will happen during banking hours. UPI and IMPS transfers are processed instantly.

2.     Convenience:

As compared to visiting the bank for conducting fund transfers, doing them using a money transfer app is extremely convenient. There is no need to stand in queue or maintain any documents. Everything gets done online without taking any additional efforts.

3.     Bill payments:

The best benefit of using a fast money transfer app is that it allows you to pay off bills. It is possible to pay bills in just a few clicks using a bank’s mobile banking application. Utility bills and telecom bills can be paid instantly and the information has to be entered only once for such payments. The app automatically picks up the bill information, which makes future payments even more convenient.

4.     Bank passbook:

Printing out a passbook is unnecessary since an online money transfer app also allows users to debit and credits into the account. Generally, these transactions can be checked for the past two or three months at a time. This allows users to verify transactions instantly.

5.     Instant Money transfers:

Even though a money transfer app gets used for other purposes such as bill payments or passbooks, the primary use is for making instant money transfers. IMPS is a form of fund transfer that can exclusively be used on an online money transfer app. Most banks have their own version of UPI apps that also transfer funds instantly.  

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Switching from internet to mobile apps for bill payments? Consider these 5 apps

The methods of making bill payments have evolved rapidly over the past few years. From making offline payments using cash or cheque at a payment collection center, bill payments have gone completely online. It is now possible to pay every bill online using a variety of methods such as internet banking, mobile money transfer app, QR scan to pay type methods, credit card payments etc. To encourage online bill payments, many vendors give discounts and offers. Online bill payments are quick, and the payment gets credited instantly without any chance of fraud.

If you’re wondering how to transfer money online for bill payments, you need to follow these steps:

·         Select the mode of payment i.e. internet banking, mobile banking, money transfer app, credit cards etc.

·         Visit the website of the vendor and pay your bill by entering your customer number and bill amounts. You can make these payments using the different payment modes described above.

·         It is also possible to directly make payments to vendors using a mobile money transfer app.

Mobile money transfer apps make fund transfers extremely simple. The bill payments are simplified to the point where the customer does not need to add any more details after the first payment is made. The money transfer app automatically pulls in the details from the vendor using the customer code or number. These payments can be made through the app using either UPI or credit cards or mobile banking.

If you’re looking at using an app, this guide will help you with the best money transfer app in India.

These are 5 apps to consider for bill payments:

1.     Google Pay:

This app was earlier known as Tez. Google Pay is one of the most popular mobile money transfer app for UPI. Google Pay offers other payments such as bill payments, payments to the Government etc. This mobile money transfer app also gives scratch cards as rewards for using the app. Each transfer or payment gives the user a scratch card or rewards. Payments using Google Pay are extremely simple to manage. All you have to do is select the type of payment, the vendor, add the details and make the payment.

2.     BHIM UPI:

This money transfer app is operated by the National Payments Council of India (NPCI). NPCI pioneered the UPI form of fund transfer in India. BHIM provides easy payments for bills such as utility bills, gas bills, DTH bills, telecom bills etc.

3.     PayZapp by HDFC Bank:

PayZapp is one of the best money transfer app in India. It provides cashback when used to pay bills. It also has offers for grocery shopping, discounts on travel bookings and movie bookings. These offers get credited to the PayZapp wallet in the form of cashback. This cashback can be used to pay future bills. PayZapp operates these offers in the form of a promo code which has to be entered on the payments page. Once the promo code is applied, the cashback gets credited.

4.     PhonePe:

PhonePe is one of the popular apps for money transfers and bill payments. It allows the user to pay all types of bills such as mobile recharges, DTH, utility bills, telephone bills etc. It even allows payment of water bills and municipal tax bills. This app is now a part of Flipkart which makes it very easy for customers to pay using this app.

5.     PayTM:

This is one of the largest wallet-based apps in India. It is an effective money transfer app since it uses phone numbers or QR codes to transfer funds. PayTM allows the user to not only pay all types of bills, but it also allows flight bookings, train bookings, bus bookings, shopping on the PayTM mall. It is possible to even pay credit card bills using PayTM.

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5 ways to transfer money online

With the evolution of smartphones and the internet, transferring money has become very simple. From traditional modes of cash, cheque or draft transfers, we have come to using internet banking and even mobile applications to transfer funds. There are several different ways to send and receive money.

Transferring funds online is extremely convenient and simple. All it takes is a few clicks for the funds to get transferred. These funds get credited in the recipient’s account either instantly or in a couple of hours. Online fund transfers are also secure with most fund transfers requiring additional authentication by banks which bars unauthorized users. These transfers can be done anytime from the comfort of your home. It doesn’t take much effort to make these transfers.

Are you wondering how to transfer funds online? Let’s take a look at the different options that people have to transfer their funds.

Here are 5 ways to transfer money online:

1.     Using internet banking:

Internet banking was one of the first ways of sending money online using the internet. This allows you to log into your bank account and send money to a third party. There are two ways of transferring funds using internet banking:

·         National Electronic Fund Transfer (NEFT)

·         Real Time Gross Settlement (RTGS)

In NEFT, fund transfers are settled between banks in batches throughout banking hours, whereas with RTGS, transfers directly happen in the RBI books and funds are credited immediately. Most businesses use either one of these to make fund transfers to their employees and vendors. The cost for such transfers is nominal i.e NEFT costs between Rs. 10 to Rs. 15 per transfer whereas RTGS costs between Rs. 15 to Rs. 25 per transfer. The cost depends on the amount of transfer.

2.     Using mobile banking:

Most banks have mobile banking applications through which customers can transact with the bank. These bank money transfer app have most of the functions that are available to customers through internet banking such as fund transfers, passbooks, bill payments etc.

3.     Using money transfer apps:

These include wallet-based apps which can be used to transfer funds to people. Some money transfer apps are PayTM, PhonePe, PayZapp by HDFC Bank, Mobikwik etc. These money transfer apps started out as wallets but have evolved to provide a range of other payment solutions to customers.

4.     Using UPI apps:

UPI or Unified Payments Interface is a way of transferring funds from one person to the other using a UPI ID and a PIN as verification. There is no need to use a bank account number for such transfers. UPI transfers happen immediately with funds getting credited immediately to the account of the recipient. UPI transfers are completely free of cost. There are many UPI based apps. Banks also operate their own independent UPI apps along with BHIM which is managed by NPCI. With so many choices, it is difficult to decide which is the best money transfer app.

5.     Using payment gateway websites:

These include websites like PayPal, Payoneer, etc. which can be used to transfer funds from one person to the other. These payments may not necessarily happen through a bank account. However, these websites give the recipient the option to withdraw funds into their bank account or use the gateway website to make other payments without withdrawals.

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5 reasons why internet banking is gaining popularity among money transfer apps

Money transfers are one aspect of the banking industry that have seen a rapid change over the years. From erstwhile cash transfers and payments for goods and services, we have moved to online fund transfers. It is even used for foreign transfers using international money transfer app.

Internet banking is a broad term that includes any type of fund transfer that happens electronically over a network. This includes mobile banking and even transfers made using a bank money transfer app. Since these apps use internet or data connections, they can be clubbed under the broad head of internet banking.

Internet banking, and specially money transfer app has gained immense popularity among customers. With the introduction of Unified Payments Interface (UPI), there is an explosion in the number of apps that allow a customer to send money online instantly.

Here are 5 reasons why internet banking is gaining popularity:

1.     Convenient:

Internet banking in all its forms is extremely convenient. The customer can use a money transfer app and send money online instantly without doing anything else. Using an app means these transfers can happen even without a laptop or desktop to log into internet banking. There is no need to visit a bank branch to make fund transfers. Using apps saves time and effort.

2.     Secure:

Internet banking is generally very secure. You require logins to use either mobile banking or other banking apps. Once the transaction is submitted, it is confirmed using a PIN, OTP or a mobile identifier in case of IMPS. This means no unauthorized person can use the account to make payments. However, it is recommended to not transact on unsecure public networks.

3.     Timely national and international fund transfers:

Using internet banking i.e fund transfer websites and international money transfer apps, it is possible to send funds to any corner of the world instantly. The same goes for domestic transfers. Most of the money transfer app make the transaction happen immediately. This is a marked departure from the earlier transfers using cheques since cheques take 2-3 days in clearing.

4.     Low cost:

All forms of transfer using internet banking are low cost. UPI is absolutely free of cost. NEFT, RTGS and IMPS have a low cost depending on the amount transferred. Transfers using international money transfer app has low costs and zero commissions. This helps reduce costs associated with the transfers. Especially when it comes to international transfers, the number of companies offering low cost transfers is high which means it is possible to send funds cheaply and fast.

5.     Bill payments:

Internet banking and money transfer app allow customers to pay off their bills such as utility bills, telephone bills and even pay municipal taxes. This makes it very convenient to pay such bills instantly without any hassles.

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5 advantages of transferring money via apps

The way India transfers funds now are remarkably different to how it used to transfer funds even 10 years back. From cash and cheque transfers to internet banking, the ways to transfer money online have completely changed. With most consumers shifting to smartphones, transferring money using a bank money transfer app has become extremely simple.

There are a few different ways to transfer money using apps:

·         Mobile banking

·         UPI money transfer app

·         Wallet based online money transfer apps

Mobile banking provides the same benefits as internet banking. It is possible to use NEFT, RTGS and IMPS for transfers through mobile banking. With the introduction of UPI or Unified Payments Interface, it is possible to transfer funds just using a UPI id without any need for bank account details.

There are also wallet-based apps which can be used to make transfers to another wallet or directly to a bank account or credit card.

Using a bank to bank money transfer app has several advantages over using other methods of fund transfer.

Here are 5 advantages of transferring money via apps:

1.     Instant transfers:

With modes like NEFT or RTGS, there is a lag between the time payments are made and the time they are credited into the bank account of the recipient. With an online money transfer app, payments are made instantly.

 2.     Convenient:

Using a bank money transfer app is extremely simple. Making a fund transfer through these apps is simple and easy even for beginners. These apps have clean interfaces with big buttons to indicate fund transfers. There is no need to visit a bank or even log in to your internet banking account to make the transfer. Since most of these apps use the recipient’s phone number or a virtual payment address, entering these details into the app is also hassle free.

 3.     Low cost:

The biggest advantage of using a money transfer app is the low cost associated with transfers. UPI transfers are completely free of cost. NEFT, IMPS and RTGS have a minimal cost depending on the amount transferred. Transfers made between wallets are also free of cost. However, withdrawing funds from such wallets may be charged.

 4.     Secure:

There is no fear of theft or loss of cash or cheque while transferring funds. Using apps to transfer funds is secure since most apps request a verification. UPI requires a code to verify the transaction. IMPS require a mobile identifier code. NEFT and RTGS transactions done through mobile banking require an OTP. This way, bank to bank money transfer app include inbuilt security procedures to ensure safety.

 5.     Offers:

Transferring funds using apps is advantageous because of the offers that these apps have for their users. For example, there may be cashbacks and discounts while using apps to make payments.

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Planning to take an education loan? Consider these 5 tips

Building a corpus for higher education is not the only way to get admission you’re your dream course. One way to easily finance your dreams of studying is to opt for an education loan.

An education loan is a type of loan where a lender finances the cost of education. The typical expenses covered in such type of a loan are:

·         Tuition fees

·         Library fees

·         Term fees

·         Any other education expense

·         Accommodation expenses

These charges are directly paid by the lender to the educational institution.

If you’re considering taking an education loan for your education or your child’s education, here are 5 tips to remember:

1.     Joint loan:

Educational loans are not given for the entire amount of tuition fees. The loan amount depends on the course, the educational institution and also the income of the applicant. This is why it is advisable to take a joint loan to improve the acceptance of the loan application. Another thing to remember is that these loans have to be taken by the student and can be taken jointly with the parents to enhance the income limit. It is better to check education loan eligibility on the lender website before applying for this loan.

2.     Moratorium:

Educational loans are not immediately repayable. This means lenders consider the fact that the student has to graduate from their course and find a job to start working. This is factored into the loan and repayments generally begin a few months to a year after graduation. Till then, interest is charged on the principal amount and added to the loan outstanding.

3.     Confirmed admission:

Education loans are only given out to students who have confirmed acceptance in a course. This is one crucial education loan eligibility criteria. The student must have an acceptance letter from the educational institution. Since the lender pays the tuition fees and other costs directly to the educational institution, this requirement is absolutely necessary.

4.     Tax benefit:

There is a benefit of the education loan interest rate. Any interest paid on an education loan for courses both in India and abroad get a deduction under Section 80E of the Income Tax Act. There is no limit on this amount of deduction. This benefit is available for 8 years from the time of repayment of the loan.

5.     Scholarships or schemes:

For students considering education loan in India, the Government has different interest subvention schemes. There is a portal called Vidya Lakshmi where students can search for educational loans under 110 different schemes.

One important thing to remember for an education loan is that it is generally unsecured. However, the lender may require some form of security to lend a high amount.

Before taking an education loan, it is recommended to find out education loan eligibility by visiting lender websites. This can help make your loan application stronger and increase acceptance.

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What is a gold loan? 5 benefits of applying for one

A gold loan is one of the popular ways to raise funds. This mode has become very popular in recent times with several lenders specializing in giving out gold loans.

What is a gold loan?

A gold loan is a loan where gold is hypothecated to a lender in exchange for funds. In this type of loan, the lender gives funds based on the value of gold hypothecated. Different lenders will accept different purities of gold i.e. 18 carat, 22 carat, 24 carats, so it is important to find out what purity is accepted before applying for a gold loan.

To get a loan against gold, you need to take your gold to the lender to get it valued. Once it is valued, the lender will calculate the amount that can be disbursed and deposit that into your account. The gold will however be kept with the lender under lock and key till the time the loan is completely repaid. The gold acts as a security for the loan.

The entire value of gold is not given out as a loan. Generally, the loan to value ratio for these types of loans ranges between 60% to 80% depending on the lender.

A gold loan far outranks other loans, especially unsecured ones. There are several benefits of a gold loan.

Here are 5 benefits of applying for a gold loan:

1.     Low interest rate:

Since this loan is secured, the rate of interest is quite reasonable as compared to other unsecured loans. The affordable rate of interest makes it a popular choice for people. Since most Indian families have some gold, it can be hypothecated to raise funds at a reasonable rate of interest.

2.     No prepayment fees:

This is the best advantage of a gold loan. These loans are short term loans that are given for up to 2 to 3 years. However, since there is no prepayment charge involved, the borrower can repay the loan at any time without any financial impact in the form of prepayment fees.

3.     Flexible repayment options:

Some lenders may only charge interest on the loan and take repayment at the end of the tenure. Others may give the borrower the flexibility to fix installments and repayments. It is also possible to make part repayments and prepayments.

4.     Minimal documentation:

A gold loan requires minimal documentation. To apply for gold loan, the only documents required are KYC documents and the actual gold that has to be hypothecated. No income documents are required. Your credit score is also not relevant to this loan. The KYC documents accepted are:

·         Identity proof (PAN card, Passport, Aadhar Card, Voter Id, driving license)

·         Address proof (Passport, Voter ID, Aadhar card, Driving License, Gas bill, Electricity bill, Telephone bill, Lease rental papers, Rental Agreement, Home loan papers, etc.)

5.     Unconditional loan:

A loan against gold is unconditional. It can be used by the borrower for any purpose. This makes it akin to a personal loan, except the rate of interest is lower than personal loans.

To find out the monthly installments under a gold loan, you can use a gold loan EMI calculator which is available for free on lenders websites. This calculator uses a formula to bring you the installment amount instantly.

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What are business loans? Know their 7 types

Finance is very essential for a business. It isn’t possible for businesses to grow and survive on their own without borrowing money. Borrowed funds can help a business expand, fulfill orders, purchase assets and generate more income from their assets. The type of finance given to businesses is called business loans.  

Business loans are loans given businesses to grow. However, not all businesses have the same requirements for funds and the evolution of different businesses has led to a variety of business finance that lenders offer. These loans are generally very specific loans which can be used for the restricted purposes that they have been lent for.

The business loan interest rate depends on the type of loan that is given out. It also depends on the eligibility of the business for such loans and the financial strength of the business to repay the loan. Most lenders clearly specify business loan eligibility on their websites and these can easily be checked before applying.

These are the types of business loans:

1.     Equipment finance:

Equipment finance can be either a lease agreement between the equipment manufacturer and the business. Generally, high cost assets are taken on lease.

It can also be a type of loan taken to avail assets such as vehicles or computers. Equipment finance is given on the entire purchase price of the asset and the repayments consist of a portion of the purchase price plus the interest.

2.     Term loans:

These business loans are long term loans given to acquire fixed assets like land, building, heavy machinery, or acquire parts to build assets. These loans are repaid over long tenures i.e. 15 years or 20 years.

3.     Overdraft:

Most businesses own current accounts with banks to help them with additional liquidity in their day to day operations. Overdraft facility can help the business withdraw additional funds from the bank without paying a high cost on it. The interest on overdraft is charged only on the amount by which the account is overdrawn.

4.     Cash credits:

Lenders give out cash credit finance to businesses that hypothecate their inventory. This type of funding is given based on the value of the inventory secured.

5.     Invoice discounting:

This type of business finance is given by specific lenders who provide finance based on the value of debtors appearing in a business’s balance sheet. The invoice value less interest is provided to the business and the factoring agency collects the debtors instead of the business.

6.     Trade finance:

This is the finance extended by lenders to importers and exporters. This includes financing for export purchase orders, letter of credit and bank guarantee for payments among others. Trade finance is a vast network of different lenders working together in international trade.

7.     Working capital loans:

Working capital loans are a type of business finance given by lenders for the day to day operations of the business. These loans are short term and temporary loans.

It is possible to apply for a business loan online directly through the lender’s website these days. To apply, you just need to fill up a form and a customer care executive from the lender will contact you for further procedures.

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Everything you want to know about a two wheeler loan

Getting your dream two wheeler is not that far away. You can opt for a two wheeler loan and buy the bike that you’ve always wanted. Before you apply for bike loan, here are some things you need to know and consider about this type of loan:

1.     It is a secured loan:

A two wheeler loan is a secured loan. This means the two wheeler is hypothecated to the lender till the time the loan is completely paid off. Even though you’re allowed to use the two wheeler, the lender can repossess the vehicle and dispose it off in case of default in paying installments.

One important thing to remember is that since the two wheeler is hypothecated to the lender, the lender’s name appears as the owner in the registration certificate and insurance papers. After complete repayment of the loan, it is important to get a fresh registration certificate with the names changed so that there are no problems in the future, especially for insurance purposes.

2.     Loan to Value:

This means the value of the asset that is given out as a loan. When it comes to a bike loan, between 70% to 80% of the ex showroom price of the bike is given out as a loan. The remaining amount has to be paid by the buyer at the time of purchase. The loan amount is directly paid to the dealer.

3.     Short repayment tenure:

A bike loan generally has a repayment tenure of between 3 to 5 years. The tenure usually depends on the borrower and can be fixed by the borrower at the time of signing the loan agreement.

4.     Depends on the two wheeler:

The value of the two wheeler loan is based on the ex showroom price of the two wheeler. This depends on the make or the company, the model number, the engine variant which play a part in determining the total cost.

5.     Bike loan interest rate:

The interest rate on such loans depends on a few factors:

·         Income of the borrower

·         Outstanding loans

·         Repayment capacity

In case of higher disposable income, it is possible to negotiate with the lender for more favourable terms. Generally, the bike loan interest rate ranges between 9% to 20%.

6.     EMI calculator:

It is not necessary to wait till the loan is sanctioned to find out the monthly payouts associated with the bike loan. Each lender has a two wheeler loan EMI calculator on their website available for free for their users. This calculator can be used to find out the monthly installment amount and even the borrower’s eligibility for the loan. It is recommended to use a bike loan calculator to find out the EMI and plan finances before making a loan application.

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Applying for a car loan? Here are 5 tips to increase eligibility

With the increase in lenders offering car loans, buying your dream car can now become a reality. A car loan is one of the most popular loan offerings today. It is a secured loan where the lender gives funds to purchase a car. Since this loan is secured, the car loan interest rate is lower than other loans.

Before opting for a car loan, it is important to check your eligibility for such a loan. Most lenders have their eligibility criteria clearly displayed on their website. However, to double check, you can use a car loan eligibility calculator to find out the amount of loan that you are eligible for. Once you find out this number, you can decide whether that amount is enough to get you your dream car or not.

However, the number that a car loan eligibility calculator decides is not the final word on the actual amount that the lender will disburse to you. There are things you can do to improve your eligibility for this loan.

Here are 5 tips to increase car loan eligibility:

1.     Joint loan application:

In case you don’t have enough income to apply for a higher loan amount, consider making a joint loan application. In joint loan applications, incomes of both the applicants are clubbed which helps to raise the loan amount that can be sanctioned.

2.     Repay debt:

Outstanding debts are one major factor that lenders consider while approving loans. Standard financial prudence dictates that not more than 50% of the monthly income should go towards loan installments. Lenders check not only the amount of installments but also the type of loans. Generally, loan applicants who have a lot of unsecured loans such as credit card debt and personal loans are riskier to lend money to. One way to increase eligibility is to prepay such loans and reduce the general loan outstanding.

3.     Make a larger down payment:

Lenders do not finance the entire amount of the car’s price. The loan to value for such loans is between 70% to 80%. This means the balance amount has to be paid by the loan applicant. One way to improve eligibility is to make a larger down payment and apply for a smaller loan.

4.     Improve your credit score:

Your credit score is a snapshot of your repayment history in terms of loan installments, credit card debt etc. It is recommended to check your credit score and detailed credit report in case any mistake needs correction. Your credit score can also be improved by paying loans and dues on time.

5.     Check for pre-approval:

Existing banks may pre-approve customers with whom they have a good banking relationship. If you’re looking for a car loan, you can try approaching your existing bank to see if you’re pre-approved. Pre-approval does not guarantee a loan acceptance, however.

Most lenders have a car loan EMI calculator on their website. This calculator will help you plan your installments for the loan. These calculators also check your loan eligibility since one input in these calculators is your income. Some lenders have specific car loan eligibility calculators on their websites. Before you apply for a loan, remember to do this due diligence.

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How does National Pension Scheme work?

The National Pension Scheme (NPS) is a scheme to help the contributors build a corpus for their retirement. Under this scheme, regular contributions made have to be invested in different funds. The funds will mature when the subscriber reaches 60 years of age. At that time, the corpus can be used to buy an annuity plan that will provide a monthly pension.

Who can open an NPS account?

Anyone between the age of 18 years to 65 years can invest in the NPS. A special NPS account has to be opened in either the post office or a bank branch. The account can be opened online through the National Pension Scheme website or offline through a Point of Presence Service Provider (POP-SP)

Types of NPS accounts:

There are two types of NPS accounts: Tier I and Tier II accounts.

Tier I account:

A Tier I account is the basic mandatory account that has to be opened for the purpose of the National Pension Scheme. Investments made into this account qualify for a tax benefit under Section 80CCD. The investments made in this account are locked in till the time the subscriber reaches retirement. This account is charged the account opening and account maintenance fees. The minimum contribution under this account is Rs. 500.

Tier II account:

This account is an optional account that can be opened under this scheme. The minimum investment in this account is Rs.1,000. The funds in this account can be withdrawn at any time. However, since this is an optional account, no tax benefit is available on this.

Tax benefits on NPS:

Any investments made in the NPS get a tax benefit under Section 80CCD of the Income Tax Act up to Rs. 50,000. This is available only on the Tier I account. Furthermore, on maturity, 60% of the corpus can be withdrawn while 40% has to be used to purchase an annuity plan. The 60% of corpus that is withdrawn is completely tax free.

Where to invest?

The subscriber to the scheme gets different choices to invest funds in. Either the subscriber can be active, which means he handles all the investments, or be passive, where the National Pension Scheme switches investments between funds depending on the age of the subscriber.

The different asset classes available are:

·         Equity or E

·         Corporate Bonds or C

·         Government Securities or G

·         Alternative Investment Funds or A

The investment in these funds can be made based on the risk tolerance of the investor. Switching between these funds is also possible.

NPS withdrawals:

Withdrawals from the NPS can be made pre retirement, on retirement and defer the withdrawal till the time the subscriber reaches 70 years of age.

Premature withdrawals can be made only after the NPS account is 3 years old. This withdrawal is restricted to 25% of the subscriber’s contributions. No tax is charged on these withdrawals. These partial withdrawals are only allowed 3 times during the scheme’s operation. The minimum gap between such withdrawals must be 5 years old.

On maturity, 40% of the proceeds have to be used to purchase a plan that will give the subscriber a monthly pension. 60% of the corpus can be withdrawn tax free.

On the other hand, the subscriber can defer withdrawal and stay invested till the time he reaches 70 years of age. On reaching 70 years of age, 60% corpus can be withdrawn and 40% has to be used to purchase an annuity plan.

What to do in case of death of the subscriber?

In case of death of the subscriber, 100% of the proceeds accumulated in the National Pension Scheme account are allowed to be withdrawn without any conditions.

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How is interest calculated on a fixed deposit?

A fixed deposit is one of the most popular investment options. In a fixed deposit, funds are locked in for a fixed period and they earn a fixed return. These fixed deposits can be opened for tenures ranging from as low as 7 days to 10 years. The rate of interest depends on the tenure of the fixed deposit. Each bank has their own fixed deposit rates and rules, but most of them offer flexible tenures and flexible amounts of deposits, subject to their minimum rules.

The interest calculation on a fixed deposit depends on the tenure of the deposit.

1.     Deposit tenure shorter than 90 days:

In such a case, the interest is calculated using the simple interest formula. The simple interest formula is:

Interest = Principal * Rate of Interest * Number of Days

2.     Deposit tenure more than 90 days:

For deposits that have a tenure longer than 90 days, interest is calculated quarterly.

However, the interest calculation also depends on the mode of interest payment. A depositor can opt for three different modes of interest payment:

·         Monthly interest payment

·         Quarterly interest payment

·         Reinvestment of interest

In the third option, any interest calculated at the end of a quarter on the fixed deposit will be added to the investment amount. Interest for the following quarter will be calculated on the original principal amount as well as the reinvested interest. Choosing this option will give a higher interest as compared to choosing an interest payout option. This is because the interest amount will also earn interest. This will lead to higher earnings. This is known as compounding and is one of the best ways to grow capital.

In case of monthly or quarterly interest payments, interest will be credited to the depositor’s savings account at the frequency chosen by him. In case of monthly interest payment, the interest is calculated quarterly, however, it is paid monthly.

These three payment options are not valid for deposits shorter than a quarter. In case of short tenure deposits, the whole amount of fixed deposit and interest matures at the end of the deposit tenure.

If you’re looking to calculate the interest on a fixed deposit, it is no longer required to invest in an FD and then find out the earnings on maturity. With advances in digital banking, most banks provide a fixed deposit calculator on their websites. This calculator is free of cost for the user and allows the user to calculate the maturity value of a given fixed deposit.

An FD calculator requires three main inputs:

·         Principal amount

·         Tenure

·         Rate of interest

Some FD calculators may have the rate of interest already factored into the calculator. This will automatically select the rate of interest based on the tenure of the deposit. Others may ask the user to input the rate of interest. The user will also have to select the method of interest payment. Once these are fed into the calculator, it will show the maturity amount of the fixed deposit.

Using a fixed deposit calculator is extremely simple and helps with investment planning. There is no need to remember tedious formulae or calculate it manually. Instead, by using an FD calculator, you can find out the maturity value of a deposit within seconds and plan the best tenure for your fixed deposit.