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4 Hacks To Build A Great Credit Score

Loans are an essential part of the modern human being’s life. They help you fulfil your requirements without worrying about exhausting the savings. Building a rock-solid credit history is paramount for approval. You need to submit the purpose of borrowing and discuss other terms with the lender before selection.

If you successfully maintain a high credit score, your quality of life takes a massive turn as you pay for all the luxuries for yourself and your family. All lenders consider your eligibility, income, repayment capacity, and CIBIL score before approving your Loan application. If you want to get the best offers and increase your score, use these hacks:

Timely repayment

A consistent and regular repayment of your Credit Card dues and equated monthly instalments helps you build a good score. You must repay your dues timely to reduce penalties and default on payments. You can also pay your dues online for saving time and conveniently increase the score.

Credit Card usage

Use your Credit Card in a limited capacity. Try spending only up to 40% of the credit limit to keep the balance low. It helps repay the total amount on the due date without compromising your needs. Planning your budget is key to sustainable spending.

Limiting applications

Too many credit inquiries on your profile by banks for Credit Cards or Loans brings down your score. Ensure to apply for credit only when necessary. Select a Credit Card and bank after researching blindly applying for credit with them.

Regular checks

Never lose the benefits for which you have worked. It is better to be proactive about your financial health. Measure your creditworthiness regularly by conducting a CIBIL score check to manage your economic life. Tracking it is essential and helps you stay on top of your credit report quarterly.

You can build a good credit score by blending these simple steps and following them diligently. It is better to remain free of too many debts than struggle last minute, thereby impacting your score. If you have a good repayment history, you get the best possible deals from lenders and negotiate the Loan amount and interest rates.

Conclusion

Fulfil your aspirations by applying for a Loan to buy a vehicle, house, send your children abroad, or even consolidate debts. If you save today, you build an emergency corpus tomorrow. You can use the money for meeting medical expenses and other priorities without borrowing from relatives, friends, or colleagues.

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What is a Credit Card Loan?

Credit Cards in India come with a specified pre-approved credit limit which you can use in a month. However, if you urgently need cash, most banks offer you Loans against Credit Card facilities. Here, you can take a Loan against the credit limit. Once the bank approves your request, the limit gets credited to your account.

Banks charge a specific interest rate for the repayment of the Credit Card Loan. You can repay this through equated monthly instalments for a specified tenure. Different banks offer comprehensive schemes when it comes to Loans against Credit Cards. Consider these features:

Pre-approval

Since most of the Loans on Credit Cards get pre-approved, you need not submit extra documentation. The Loan processing and disbursal are quick, safe, and reliable.

Bill payment

It is essential to initiate the Credit Card bill payment to your bank on time to avoid penalties and other charges. You can pay it off through the banking app or website without physically visiting the branch.

Balance transfer

Some banks also offer Loans against another bank’s Credit Card through balance transfer on EMI. Here, you can transfer the outstanding balance on other Credit Cards to one and pay the EMI.

Affordable instalments

With EMI schemes offered by issuers, you can break into expensive purchases by repaying the Loan in easy and affordable instalments. It reduces your financial burden and helps you plan your finances better.

Eligibility

Most Credit Card Loans do not require collateral and are unsecured. Hence, select cardholders get the benefit. Issuers have stringent eligibility criteria for granting Loans on a Credit Card. You need to have a commendable credit and repayment history for repaying the Loan.

Quantum

The quantum of Loans on a Credit Card usually depends on the credit limit. Some issuers also offer Loans above the credit limit where the amount availed is unblocked against the credit limit. You can convert your purchases to Loans and pay them as EMIs starting from a minimum purchase amount of Rs. 2000.

Working

Credit Card bill payment is necessary since you are essentially borrowing from the issuer. You can also apply for Loans on your credit limit and pay a specific interest on the borrowing.

Advantages

Most of the Loans are pre-approved and unsecured. You do not submit collateral or documents to the bank to avail it. You also have the option of converting your expensive purchases into easy monthly instalments. Additionally, you do not require a guarantor or post-dated cheques for Loan applications.

Conclusion

You need to pay a certain processing fee on the Credit Card. Also, you pay a pre-payment penalty for foreclosing the Loan.

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Factors To Note While Reviewing Your Credit Score

When you apply for Loans or Credit Card, lenders evaluate your application on various parameters. They do this to understand your repaying capacity and avert risks. Some essential aspects include your income, employment, age, existing debts, financial standing, etc. This helps them judge your eligibility. A good practice is to go through the evaluation process yourself to refine your profile.

While doing so, consider your credit score besides the mentioned factors. It is the most significant aspect. Lenders learn your repayment history through this three-digit number. The borrowing amount, interest rates, and tenure depend on your ranking. Hence, review the same before applying. It allows you to correct any discrepancies and improve eligibility. During the process, consider the following factors:

Credit utilisation ratio

It is an important parameter determining your credit behaviour. The ratio reflects the utilisation from the credit limit. Banks prefer to lend borrowers with CUR below 30%. If you find yourself surpassing this, manage your borrowing amount. Another approach is to ask the issuer to increase your credit limit. This is an excellent way to handle your credit utilisation. But you must take steps to improve your spending habits.

Outstanding debts

A significant benefit of the credit score check is the opportunity to fix discrepancies. When you review your credit history, you get an idea of negatively affecting it. Often, these are your untimely repayments and outstanding debts. Clear them before applying for a new Loan. This way, you fix your repayment history and boost the ranking for better interest rates in the future.

Report enquiries

Lenders perform a detailed analysis of your credit ranking. Besides the score, they also check your credit report. This is to understand your borrowing behaviour and repayment record. The section typically includes the lender's name, application date, types of credit, and other details. Such analysis is called 'hard enquiries'. As your every Loan application gets listed here, lenders form an opinion. Hence, it is best to apply for credit sparingly.

Personal information

The details you provide while applying for Loans plays an important role. Lenders check this against every document. Besides the ones submitted by you, they also match the information with the credit report. This includes personal details like your name, PAN number, contact information, age, etc. Ensure this information is correct while reviewing your credit score. If not, correct it to avoid any complications for easy Loan approvals.

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Considerations to make before opening a Savings Account online

Banks have enabled us to secure our funds instead of stacking them away at home. This protects from threats like theft and other losses. But that is not the only use of having a Bank Account. By opening a deposit with a bank, you get exposed to various services. They help you manage your finances and utilise them for different purposes. Hence, even if your main aim is saving your funds safely, banks equip you to become financially strong.

The primary mode to start your banking journey is Savings Account opening online. This account serves as a nest to build a corpus. It develops a discipline to increase savings and utilise it for shopping, making payments, clearing bills, transferring money, etc. This covers the essential day-to-day transactions. If you want to enjoy these indispensable benefits, you must choose the correct account. Here are some factors to consider:

Interest rate

The main motive of using a Saving Account is to teach a saving habit. It allows you to stash away surplus funds. Hence, it is not meant to generate returns. That is why you should not expect higher income from it. What you get is the nominal interest. However, comparing the interest rates lets you land the highest interest available in the market. Therefore, ensure to check your options before selecting a bank.

Minimum balance

Most public sector banks provide accounts at zero balance. This is to promote banking among the masses. But private sector banks are profit-oriented and offer specialised services. Hence, you need to maintain a minimum balance of Rs. 2000 to keep your Bank Account open. Some commercialised institutions extend this requirement to Rs. 10,000 to Rs. 20,000. It is best to check the same as this amount remains locked throughout the account's existence.

Service charges

Banking involves the usage of a host of services like SMS alerts, cheque book, automated teller machines, etc. Besides, transactions also come with a limit after which you get charged. It is essential to learn about these charges before opening an account. This way, you avoid surprises later, which reduce your account balance.

Network of banks

The ability to access funds from anywhere is noteworthy. This helps you when you require emergency financing. While Digital Banking lets you do this conveniently, some services require physical access. For such instances, it is best to choose a bank that has a wide physical presence. Most commercial institutions focus on this aspect. Hence, if presence is your priority, ensure to check this before Saving Account opening online.

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What affects your credit score?

Loan application has become an easy process. Just complete a few steps, and it gets approved. This is the result of online Loan portals. They make your application process hassle-free. Through easy-to-understand instructions, they guide you through each step. As a result, you feel more confident when availing of one.

But many applications get rejected for one main reason. It is the low credit score. A poor score restricts your Loan options. It impacts your interest rates. To avoid this, you must keep regular track of your score. More importantly, you should be aware of what affects them. Here are some of them:

Payment record

This is the most critical aspect that affects your score. Pending Credit Card bills have a negative influence on your score. To maintain a high score, you must clear all payments and Loan equated monthly instalments. Inability to do so shows that you struggle to keep your credit healthy. This likely affects your lender’s decision. Lenders tend to run a CIBIL score check before approving the Loan.

High credit utilisation

Sometimes, you may have already applied for the Loan. It could also be that you own multiple Credit Cards. These alone do not affect your credit score. However, your credit utilisation ratio does. A high utilisation ratio suggests increased debt. It indicates that you may turn into a defaulter. To avoid this, you should only utilise approximately 40% of your credit limit. Also, keep track of your credit expenses. This prevents you from maxing out the limit.

Credit duration

Your credit history determines how long it has been since you opened your account. The repayment records in this duration matter the most. If you have a good balance of unsecured and secured Loans, your score increases. Having a healthy credit mix also does the same. It indicates that you are good at managing different accounts.

To get the Loan approved quickly, you need to appear as a low-risk borrower. For this, hold a long but decent credit history. It should reflect good repayment behaviour. So, start building it as early as possible. This way, you can secure House and Car Loans quickly in the future.

Hard enquiry

While calculating your score, credit enquiries are also taken into account. Whenever you apply for a Loan, the lender assesses your credit report. This is known as a hard enquiry. If the report shows numerous credit requests within a short span, your score decreases. To avoid this, spread out your credit applications. Do not try to make them simultaneously.

Author bio

Neha Sharma, a finance student, loves to write in her free time. She has spent considerable time researching credit score. Through her work, she lists factors that affect them

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What Should You Know Before Opening A Bank Account

Everyone is keen to open a Bank Account, So, before you visit the bank, you should know a few important items beforehand. It assists and enlightens you with the proper knowledge and study. Before you open an account, this article has some insights.

Things to know

Determine the amount

The most critical move is to decide the amount you can afford to open a new Bank Account. If it is not a Zero-Balance Account, the banks need a minimum balance account requirement, and you need to manage it. The banks charge a penalty if you do not comply with it and begin deducting it from your account.

Know the fees and penalties

The charges are other important things to be mindful of. Many banks impose different fees, and fines that people believe are free of charge. Often banks offer a few services, but only for the promotional duration. Some still want to use such services later, without recognising that they are paid services. So, by learning and reading the terms, keep yourself informed. Before opening the account, ask the bank executive these questions.

Online facility

Ensure that your bank provides Internet and Mobile Banking facilities. Online Banking offers many benefits and has become increasingly popular today. You can access your Bank Account, apply for Bank Account online, check your balance, make a purchase, pay your bill, recharge your phone, and use your mobile to do many other things in a second.

Save funds

You need to keep the money with you in cash or cheque when you open a new Bank Account. Banks ask you to pay for some account services, such as Debit Card fees, internet facilities, and other such charges. However, banks have started offering these services free to draw more customers and make the deal lucrative. But if you take some spare cash with you, it is safer.

Locating nearest branch and ATM

It is nice to have the bank branch and ATM nearby. While banks have ensured that every location has an ATM, it is best to check these beforehand to prevent future problems and disappointments. If the ATM is not open in your vicinity, but it is there at the place where you travel frequently, you are good to go.

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Requirements To Consider For Car Loan Eligibility

With Indian manufacturing companies producing good cars, the world's top vehicle manufacturers compete for space on Indian roadways. The Indian consumer, whose tastes are now equivalent to those of his Western counterparts, only benefit from stiff rivalry between Indian and foreign businesses.

So, how to apply for a Car Loan in India?

What is a Car Loan?

Those who want to buy a brand-new four-wheeler apply for a Car Loan. They are available for different vehicle types and amounts. For the used market, such loans are applicable. They need to be less than three years old, and pre-owned Loans vary depending on the type. Cars that are more than 10 years old are frowned upon, and no loans get granted.

An Auto Loan is best for new cars. The new ones tend to get used as collateral as such Loans are unsecured.

What are the eligibility criteria?

Should be around 21 years old at the time of application and no older than 58-60 years old.

The minimum annual income required to apply for a Car Loan is Rs. 1 lakh to Rs. 2.5 lakh, depending on the bank. The average loan amount is three to six times the annual income of the borrower.

Income tax paperwork for salaried or self-employed is applicable as income proofs. The most recent salary slips as form 16 gets also comes under income proofs. Address proofs include passport, driving license, PAN card, Aadhaar Card, ration card, and utility bills.

Must be employed for minimum years and with the current employer for at least a year. Certain banks need a minimum of two years of continuous work with the current employer.

The annual interest rates are approximately between 10.5% and 12 %. It goes up to 16% if specific criteria get met.

How are financial vehicles in India?

It is best to research the interest rates for your brand-new car. The vehicle type essentially decides the interest rates and repayment duration. If you are an established customer, you get lower rates. Maintain an excellent credit history to qualify for low-interest Loans. A third-party guarantee, usually close people, is important in Auto Loan.

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Which Are The Top Instant Bank Accounts in India

Since March 25, 2021, when India declared a state of emergency due to the Coronavirus outbreak, life has halted. However, using any of the following Instant Bank Accounts provides you with hassle-free banking and free digital transaction services. Your important financial transactions do not require rework.

You get access to your Instant Bank Account from your phone or desktop, whichever is convenient. Besides the standard banking services, these accounts frequently include a Zero-Balance Account, Debit Card, free digital transactions, and discounts on other bank products.

Here are the top Instant Bank Accounts with unique features from each of these banks so that you can pick the ideal one for your needs:

SBI Insta Bank Account

These get opened instantaneously on your mobile or computer using the SBI YONO App. You can download it by filling out the online form with your Aadhaar number and PAN. There is no limit on how much money you must hold in it. However, the maximum balance limit is Rs. 1 lakh, and total credit summations should not exceed Rs. 2 lakh in a calendar year.

HDFC Instant Savings Account

This is a digital account that you can open and access from the convenience of your home. To open a Digital Savings Account, you need a PAN and Aadhaar number. You immediately receive your Account Number and Customer ID and can start trading too. To open an Instant Savings Account, you need not visit a branch. However, this is a limited KYC and is valid for a year. By visiting any HDFC Bank office, you can convert it to a Regular Savings Account.

ICICI Insta Save Account

This is an online savings account based on Aadhaar, exclusively available to new customers. This Instant Bank Account gets started immediately using the ‘iMobile’ app from ICICI Bank or visiting the official website.

Their Savings Accounts are currently available in two varieties: Insta Save Account and Insta Save Fixed Deposit Account. As the name implies, the latter requires Rs. 10,000 FD for a minimum of 12 months. In the first option, you have no minimum balance requirement or a minimum balance requirement of Rs. 10,000 when you register an FD Account.

Kotak 811 Account

Kotak 811 is a full-featured Savings Account that you can open through the 811 mobile app or website. With video KYC, open an Instant Savings Account by sharing your Aadhaar Card (UID Card) and PAN details. Log in to the Mobile Banking app with your CRN and MPIN once the account is operational.

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What Are The Benefits Of Applying For Personal Loans?

The most popular loan options in the market today are Personal Loans. Speedy approvals, quick loan disbursals, and no conditions on the end-use have led to an increase in people opting for such medical, travel, house renovations, etc. Lenders have a high competition to offer these loans, benefitting you with reasonable interest rates and a streamlined application process.

The other benefits of applying for a Personal Loan are:

No end-use limitation

The best part is that there are restrictions on the end-use. Use a portion of the funds for one purpose and the rest for another without any questions or conditions. Even though lenders offer such loans for different purposes, there are no compulsions to use the loan for a defined purpose online.

For instance, you could use them for funding travel expenses and buying consumer durables without any concerns. This flexibility is what makes Personal Loans attractive.

Instant disbursals

With the process of loan application and approval going online, there is quick disbursal of funds after they get approved. Most lenders disburse them within hours, and some take a few days. This makes it excellent an excellent option for raising funds for emergencies, especially where time is crucial.

Collateral-free loan

Personal Loans are unsecured, which means you need not keep any collateral to avail them. These are perfect for financial emergencies, business expansion, or to meet a temporary gap in the working capital funding. You can use them for repaying existing loans or other debts which might be costlier.

Flexible repayments

Most lenders allow you to choose the repayment term. Usually, the duration is between 12 months to 60 months. If you have a good repayment track record or a high credit score, the lenders let you pick the tenure you are comfortable with. Some lenders even allow flexible equated monthly instalments, where only Personal Loan interest rates and the principal amount gets repaid as and when you have the funds.

Minimum documentation

Unlike a Home or Car Loan, these unsecured ones do not require too much documentation. The standard Know Your Customer documents are needed, along with income proof. They are typically simple to arrange.

Tax benefits:

One of the underrated benefits of a Personal Loan is that you get tax deductions depending on how you use it. You get exemptions on principal repaid and the interest if used home construction. However, you must fulfil the conditions concerning the benefits. If the loan is used to expand the business or other business needs, the interest is applicable as an expense.

For buying an asset, the interest cost gets added to the asset cost. Precisely why there is a rise in Personal Loan applications.

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What Is The Process To Apply For Credit Card Online?

There is a range of payment methods available for goods and services these days. Traditional payment methods are now history. We struggled with cash and coins whenever we went shopping and bargained for the best price. We were equally worried about the safety of our money and carried lots of weight on our shoulders.

Nowadays, we are fortunate to enjoy the benefits of digitalisation, which made our lives easier. All activities and services are now available at our fingertips. Access all banking services and apply Credit Card online without visiting the branch. It saves time, travel, and money while offering convenience.

For existing customers

Visit the bank offline or apply online. Visit the bank’s portal and click on the credit card page. Choose the card as per your needs and click on the ‘Check eligibility’ button. It redirects you to the application page if you fulfil the eligibility criteria for the card. Fill in the relevant information in the required fields and click on ‘Submit.’ Upload the essential documents on the portal and use the Application ID received in the acknowledgement message.

For new customers

Visit the bank branch or website and select the desired card type from the list of options. Enter your personal and contact details. The representative contacts and guides you about the process of Credit Card Apply Online. The types of Credit Cards include Infinia, Diners Club, Regalia, Milennia, etc.

Documents required

Every banking process needs papers like ID, address, and income proofs, including a PAN card, driving license, Voter ID, passport, rent agreement, ration card, utility bills, and insurance papers. Salaried individuals should submit the last three months’ payslips and six months’ bank statements for the salary account.

Self-employed professionals must submit the latest IT returns with income computation or certified financial documents and business continuity proof.

Checking card status

The tracking process of Credit Card applications is simple. You visit the bank branch or website for the same. Follow the application after receiving the confirmation SMS and acknowledging it. For online application status, visit the official bank website. Click on the Track credit card application under the credit card tab.

Fill in relevant information such as birth date, application reference and form number, and contact details. The website shows you your application status.

Advantages

If you apply Credit Card online, you receive several benefits, depending on the card type. You also win reward points for spending money from it without cash payment. It reduces your worries and allows you to shop freely. Other benefits include complimentary golf games and unlimited complimentary airport lounge access.

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Why Should You Use Mobile Banking Apps?

Mobile banking is becoming increasingly popular, and for a good reason. When opposed to traditional banking, mobile banking apps offer several benefits. Mobile banking has revolutionised the banking industry by bringing banking to people's fingertips, making it a much quicker and more convenient operation. The Reserve Bank of India has asked banks to rally behind mobile banking, which would only increase the number of people who use it.

Some benefits of using a mobile banking app ares:

To make any transaction, even something as easy as depositing money into your account or withdrawing funds from your account, you will traditionally have to go to the respective bank and wait in long lines. On the other hand, Mobile banking applications allow you to access your account's funds from anywhere and anytime.

Download the app to your smartphone, sign in with your unique customer ID and password, and accept payments. It helps you to complete transactions quickly without having to stand in lines and wait your turn. 

Previously, basic banking activities such as checking your account balance required a trip to the bank. It was tedious and time-consuming, and even though ATM services made the process much easier, you always had to go to a nearby ATM. On the other hand, these activities can be completed in a matter of seconds using the mobile net banking app. 

The mobile internet banking app aims to keep track of the operation of the linked bank account. The app also maintains track of certain events, such as when a user's account balance reaches a certain level or when money gets withdrawn. Since your account gets connected to the app through the internet, you will get instant notifications if anything changes your account. The apps are also customisable, allowing you to choose which updates you want to receive.  

To use the mobile internet banking app to accept online payments, sign in with a unique customer ID and a password given to you when you opened your account and alter it later. Your account cannot get accessed by someone else. Furthermore, even if you lose your smartphone, you will still be secure because the app's personal information is password protected. 

At the same time, it is protected by additional identity verifications such as facial recognition, fingerprinting, and so on. If you lose or misplace your smartphone, some apps have a feature that allows you to disable and wipe out all your login information remotely.

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Steps For Smooth Loan Repayment

Living with debts has become common nowadays. But if you can manage to come out of the quicksand of debts, you can stand above any financial concerns. Surprisingly, coming out of loan debts depends on the willpower and determination of the borrower. If the borrower makes their mind out of debt and works towards it, reaching the stage is impossible. Disciplined financial habits and some sincere steps help you become debt-free.

Suppose you make use of the EMI calculator, nothing like it. This way, you become aware of the budget that will cut from your income monthly. Besides the calculator, there are other ways as well:

Organise your debts

If you hold more than a debt, before moving forward, organise them. Make a list of the dues along with the dates, the amount, interest rates, etc. Most people with maximum debts get overwhelmed with the payables and lose track of the dues. For avoiding such scenarios, it is best to create a list or use a spreadsheet to organise the debts and know your financial position.

Prioritise repayments

If you find your debts are to your neck, it is high time you pay off those loans. You need to cut off some unnecessary expenses as much as possible to save the desired amount. Remember, the little money you save daily helps you hold a good corpus after some time. You can take such small steps as opting for public transports for work, consuming homemade food, avoiding not so important parties, etc. But you will gain clarity on these not manually but by using the loan calculator online.

Create a strategy

As you become aware of the amount you need to save monthly for your dues, consider one strategy. First, pay off the high-interest loans than the low-cost ones. The second is if you have many small debts, clear them off before tackling the big ones. However, the first strategy of paying high-interest credit is always helpful in saving more in interest charges.

Remain consistent

Whatever strategy you consider, stick to it until you get freedom from the debts. When it comes to repayments, remember consistency is essential. If you are determined to reach the goal, you can do so only with some consistency.

Use additional funds for repayment

Whatever may be your salary, you receive an annual bonus, incentive, or increment on it. This is for the salaried individuals. Independent professionals may witness a seasonal boost. Whenever there is additional money, use it for paying the loan. You can add this element to your EMI calculator as well.

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What Basic Rules To Follow When Applying For A Loan?

One of the means of survival when your savings do not come to your rescue is a loan. They get you the money you require in a hassle-free manner. The plus point of applying for a loan is you need to borrow from family members or friends, and the interest payable is affordable and pocket friendly. The repayment options are also in favour of the borrower as you do so in monthly instalments called EMI.

Some loan tenures are as less than five years, while others go up to 30 years. But there are some basic rules you need to follow if you want the loans process to be smooth and effortless. They are:

Affordable loan EMI

It is always crucial to make sure that your loan EMI is never a burden on you. It should not exceed 15% of your total monthly income. Lenders always suggest not to exceed the monthly outgo towards loans beyond 40% of your net monthly income. The loan-to-income ratio should be acceptable and within limits. If you do not maintain the same, it causes trouble. This does not allow you to focus on other goals as well. Moreover, it adds to your financial burden and mental stress.

Comparisons

We head to several stores for comparing the price and quality of a specific product when you decide to buy it. Be it a big or small purchase, we all get active in bargaining and finding the best deals. The same approach goes for financial products as well. Numerous banks offer various financial products at different rates. But it is a fact that a bank loan comes with varying rates of interest.

Do the math

The thought of having more money than required is itself tempting. This leads to applying for a loan amount that is beyond your expectations. This may be a smart option for many, but it is a burden for the future. If the loan amount increases, it is not the only factor. It also means higher tenure, EMI, and other things. It is ideal to borrow an amount that is equivalent to the funds you require.

Short tenure

You might consider long-term loans because the EMIs are lower, and you enjoy tax breaks on the loans. But as a matter of fact, lengthy duration means higher interest rates. However, the tax benefits offered brings the effective loan cost down. But again, short-term loans might not always be possible for you. The reason being a short tenure loan means higher EMIs. But if you see, such a method lets you get done with debt as soon as possible. You must constantly increase the EMIs when there is an increase in your salary.

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Everything to Know About POS Machines

Gone are the days where retailers manually processed sales and kept records. Technology has provided new possibilities and swiftness for purchases. Point of Sale systems is one such product that helps in completing purchase processes.

It is an integrated system that performs tasks like accepting payments, maintaining inventory, printing receipts, etc. It is a robust technology that eliminates the need for manual book-keeping. The POS machine works like a computer that has both hardware and software components. Let us understand its working and features in detail:

Software: It has software that operates all the sales activities in an integrated manner. There are two types of setup you can opt for; one is on-premise, and the other being cloud-based. You install the software you wish to use based on your business type. You create an account online and enter all business details like payment gateway, sales and tax rates, discounts, brand information, sales policies, etc.

Hardware: There are different parts of hardware components with varied functions. Each has a role to play in the point-of-sale transaction process. It includes a bar scanner, swipe machine, cash drawer, receipt printer, etc. The cash drawer safeguards the cash received in payment, and the barcode scanner scans the billing on products. Receipts get prepared with transaction details through the printer, and the machine reads cards to process payments.

Functions: A POS system is a centralised mechanism for multiple retail operations. You keep track of inventory and categorise it based on the product number, colour, size, etc., through inventory management. You get detailed sales reporting, profit percentage, etc., with sales management. The customer management service enables you to track loyal customers and their data. You also get to keep track of employee performance.

Types: The two categories of POS systems are standalone and integrated terminals. A standalone system is used on its own without having to connect to the overall POS system. You input the card information in it and manually type in the transaction details in the system. In integrated terminals, the swipe machine connects to the system software. Hence, it automatically totals out the transaction details and prints the receipt. There is less manual typing involved.

Many retail outlets and superstores use these systems. They serve a particular purpose for each type of business. You can compare them and get the one best suiting your business needs. They ensure efficiency and convenience both for business and customers. It becomes crucial to use them to offer varied payment options for customers.

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How Can An Education Loan Be Beneficial?

For most of the families, sending their children abroad can seem expensive. However, it can change their lives and enable them to live a bright future. They can receive a quality education and open doors to better opportunities. It helps them explore new heights and has a significant impact on their career.

Education is essential for every individual, whether in India or abroad. Studying abroad with the right education loan can help students cherish their dreams and get exposure to better infrastructure and job opportunities. Parents must consider some factors before choosing the loan, and one of them is savings. They should not extinguish their savings behind education and save funds for future needs and emergencies.

Following are the benefits it offers to students:

1.Protects the savings: By applying a loan for studying abroad, families can keep their savings intact and let them remain undisturbed. It enables them to achieve other goals, such as retirement for parents, children’s marriage, or home renovation. Users can withdraw funds before maturity by paying the penalty to the bank. 

2.Provides extensive coverage: Most of the banks and NBFCs provide loans to study abroad for not just the course, but also other expenses, such as hostel fee, lab fee, exam fee, travel expenses and gadget/supply charges. Additionally, all the books and miscellaneous expenses come inclusive, which is a respite for the financial burden. 

3Tax benefits: Families can get many tax benefits on study loans abroad. Indian loan borrowers get benefits under Section 80 E of the Income Tax Act when applying for this loan. The amount of interest they pay towards the loan comes under the tax deduction category, which is eligible for eight years. 

4.Moratorium period: Also referred to as the ‘holiday period,’ the student does not pay the loan while studying. They get a moratorium period of six months to one year from the completion of course. Therefore, the borrower gets enough time for repayment until they get a job. 

5.Positive credit history: When a borrower repays the student loan on time, they get a positive credit history record, making it simpler to apply for loans in the future. It comes with its own sets of benefits for borrowers to achieve their dreams without needing to dig into their savings or put property or jewellery under stake. 

6. Based on future earning potentials:

A loan taken for student’s abroad studies depends on their future earning potential. It is the only retail loan that does not consider the parent’s current financial income as the most crucial criterion for sanctioning the loan.

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Know How Interest Gets Calculated On Recurring Deposit

One of the ways a small investor can invest funds and expand them is through a recurring deposit. A fixed sum of money is deposited in a recurring deposit for a fixed period for a limited duration. Such instalments will all expire on the same day. Essentially, a recurring deposit is like making several investments in fixed deposits, all maturing on the same day.

To determine the interest, you would receive on a persistent deposit, you do not have to wait until a recurring deposit matures. If you are wondering how RD interest can be measured, then read this guide.

The services offered by banks have gone through a sea change with the digital revolution in banking. For checking how much you can gain at maturity, it is no longer necessary to invest in a recurring deposit. There are some banks on its website that have a recurring deposit interest calculator. This tool deals with how interest in the RD account can be measured.

You need to enter the following to determine the RD account interest using the RD calculator.

Instalment amount

Rate of interest

Period of investment

You need to click submit after putting in this information, and the calculator will show you the maturity number. Using this calculator will help you figure out the cumulative interest you will receive instantly on a recurring deposit. To figure out the maturity sum and the interest, it is beneficial to use this recurring deposit calculator to help you find out how much to spend if you are raising funds for a specific target. One important thing to note is that on these deposits, banks compound interest periodically.

The interest rate on such deposits is higher if you are investing in a senior citizen.

How to calculate RD interest manually?

If you are wondering how compound interest for recurring deposits can be measured, you can use this formula:

M = P*(1+R/N)^Nt

Where

M = Maturity amount.

P = Principal amount or the instalment sum

R = Interest rate in decimal,

T = Time in months

N= Compounding frequency

Interest is taxable on a recurring deposit. Your taxable earnings will be added to this interest, and you will have to pay tax on it, depending on the slab you are in.

If the gross interest on recurring deposits reaches INR10,000 in one year, your bank can deduct tax. You should apply Form 15G/15H to declare that the taxable slab will not contain your salary. The bank will not deduct tax on your recurring deposit income upon the submission of this form.

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5 Ways To Get A Low Personal Loan Rate Of Interest

Many people have desires and expectations to fulfil in life. They want to achieve all their targets and aims so that they can live a financially secured future. It is essential to have some financial security and start saving for the future. Money is an asset that helps people conquer the toughest of circumstances easily. Though many families are facing economic problems, they can always take help from banks and borrow loans from them.

There are different kinds of loans offered by banks, the most popular being personal loans. They can always use these funds to buy a house, car, pay for weddings and credit card debts, etc. Since these are unsecured, they require no collateral and offer quick disbursal. The documentation is also minimal, and some banks also provide a low personal loan interest rate. Here are five ways to be eligible for it:

Maintain a good credit score: A score closer to 900 is good. It increases the ability to secure new credit and enables individuals to get the desired loan amount with the desired repayment tenure at reasonable rates of interest. People with a higher credit score can get a lower interest rate on their borrowing as it indicates responsible credit behaviour and higher creditworthiness. Make timely payment of all debts and dues, having a credit utilization ratio within the 30 per cent limit, keep a balanced credit mix, and avoid simultaneous loan inquiries with multiple lenders for a good credit score.

Maintain a good repayment record: Try to pay all loan EMIs and credit card bills in full and on time. It helps maintain a good history of repayment, which in turn will help in negotiating better rates of interest on personal loans with the lender.

Compare the interest rates offered by banks ad lenders: After meeting the eligibility criteria of multiple banks, it is better to compare the personal loan rate of interest on financial marketplaces online to get the best deal.

Look out for special offers: Always look for special offers during festive times. Banks often launch attractive schemes offering lower than usual rates of interest on personal loans which will eventually help save on the loan repayment expenses in the long term.

Check the method of interest calculation: Check the method used by a particular lender to calculate the personal loan interest rate. Often, loans available at a lower rate of interest may lead to higher interest amounts at the end of the loan tenure. Get a personal loan at a reducing interest rate as it could cost less than a flat rate of interest and vice versa.