Here are some tips to help you get the most out of your mortgage. You need to focus not only on repaying the monthly EMI accurately, but also on reducing and reducing the loan liability.

Repaying the loan on time will improve your creditworthiness. A person who pays it correctly can get a better credit score than an EMI investor. Failure to do so may result in heavy fines. It can also lead to a decrease in credit score.

Failure to pay the EMI for a long period of time may result in foreclosure of the home, bank or financial institution. Therefore it is necessary to make sure that the required amount is in the account close to the date of payment of EMI.

Cash on hold on bonuses and dividends can be used to repay the loan. Making such repayments more than once can significantly reduce the loan term. It is advisable to make a pre-payment in the first few years when the outstanding on capital is high.

Those who repay their home loans before the end of the term should take steps to reduce the burden of the debt obligation only after verifying that they actually benefit from doing so. It is only when you look at the factors such as the term of the loan and the interest payable that it becomes clear whether it is profitable to repay the loan early.

Most monthly wage earners rely on loans to make their dream home a reality. Mortgages are also a great way to save on income tax. The advantage of providing home loan taxpayers is that a large portion of the tax liability can be avoided without investing in tax-exempt schemes.

Rising interest rates create an additional financial burden on borrowers. They have two options when interest rates rise. First, increase the amount to be paid in equal monthly installments. Second, extend the term of the loan. It is advisable to take the first step even if you have to control the costs. This is because increasing the term of the loan leads to a significant increase in the financial liability.

The huge increase in interest payments due to the extension of the loan period will push the borrowers into a severe financial burden. Instead, divert your thinking to good things in life, things that will work out in your favour.

The post Things to do to reduce the burden of home loan appeared first on The Gulf Indians.

Companies’ fixed deposit schemes are an option for investors who want higher interest rates than the rates offered by banks. These investment schemes earn two to three per cent more interest than the banks. For example, SBI charges an annual interest rate of 4.9 per cent on a one-year fixed deposit, while Bajaj Finance, a leading non-banking financial institution, pays 8 per cent. 3.1 per cent more interest.

At the same time, you should not choose company fixed deposits based solely on high interest rates. Such investment plans should be selected only after examining the credibility of the companies, track record and the nature of the management.

It should also be noted that the Reserve Bank of India guarantees fixed deposits of banks up to Rs. 1 lakh. But there is no such guarantee in the case of company fixed deposits. Withdrawing such deposits before maturity is not easy. Banks offer the facility to withdraw fixed deposits prematurely. It is also possible to get a loan on fixed deposits. But such facilities are not available for company fixed deposits.

In recent years, investors in some companies’ investment schemes have not been able to repay the loan on time. Some companies have also defaulted on repayments. Companies that have suffered a setback in their business and are in deep debt have failed to repay investors.

Those who invested without knowing the quality of the companies or their financial security suffered setbacks. Investors need to keep in mind that investing without checking the credit quality and rating of the company’s investment plans is a very risky venture.

There are certain conditions for companies to accept investment through fixed deposit schemes. In addition to mandating the rating of credit rating agencies for such investment schemes, there is a limit to the amount of investment that can be made in proportion to the net assets and profitability of companies. The government introduced these provisions in the Companies Act, 2013.

As an investor you should invest only in companies with an AA or above rating. Examples are fixed deposit schemes of companies such as Bajaj Finance, Mahindra & Mahindra Financial Services, HDFC, DHFL. These companies have not yet failed to repay the investment.

The post Company fixed deposits give more interest appeared first on The Gulf Indians.

“It’s easy to advise that it’s a good habit to start investing early, but it’s possible if you have the money to invest.” Such an approach to investment is taken out of the perception that a large amount of money is required to invest.

Many people are reluctant to start investing because they do not have enough money to invest. Those who take the approach of earning a very small amount of money often set aside even the smallest amount of money that can be earned.

But there is one thing that these people need to understand as the basic principle of financial planning – they can start investing no matter how small the amount. For example, to invest in mutual funds under the Systematic Investment Plan (SIP) every month, it is sufficient to set aside Rs.500 per month.

Waiting until you have enough money to invest will cause the investment to be delayed indefinitely. For those who earn only a small amount, there is no point in waiting for a large amount of money to accumulate to invest. The first step is to start the investment as soon as possible with the small amount of money that can be earned.

You should try to start investing as soon as you start earning income. Delaying the start of investment can lead to delays in the realisation of life goals.

Once you start investing, you need to make sure you do it regularly. Care should be taken to reduce costs so as not to hinder continued investment.
If we can reduce the cost by one rupee today, it is equivalent to getting one rupee extra tomorrow. Even if you could set aside a portion of the cost of watching a movie and wandering around the city to kill time during your holidays, it would be a saving for tomorrow. Small savings do not bring big gains in the short term. But in the long run it will make a big difference.

Care should be taken to increase investment as income increases. Many face rising expenditure as their incomes increase. This is because the expenditure hasn’t been adjusted according to the income or it is not taken care of. Therefore, if expenditure ins not adjusted according to the increase in income, it will not be possible to earn in proportion to the increase in income.

It is important to wait patiently for the investment to grow. Care must be taken to be patient according to the duration of the goals. Investors should be prepared to wait a long time to get the best results from investment methods such as Systematic Investment Plan. Investors should realise that the value fluctuations in mutual funds investing in the stock market are natural.

The post Don’t wait until you have huge corpus to start investing appeared first on The Gulf Indians.

Care should be taken to update the KYC (Know Your Customer) details when changing jobs and moving to another city. Documents relating to deposits, insurance, banking transactions, etc. should be updated as soon as possible in order to be received at the new address.

You should remember to update the changes in your email and phone number. Since most communications are by phone and e-mail, if this is not updated, you may miss out on a lot of important information.

Recently, mutual funds have been sending investment statements to investors. If you have a demat account, you can list mutual funds, stocks and other products listed on one of the National Securities Depository Limited (NSDL) and other Depository Accounts and other Depository Bond, and May be received regularly by mail. Therefore, if there is a change in the e – mail address to receive it without delay, be sure to update it immediately.

The KYC Update Form can be downloaded from the website camskra.com. You can fill this form and submit it to the office of the mutual fund or to the office of the depository party such as a bank or stock broker. You need to approach the institution with the deposit or demat account to submit the application.

Mutual funds can approach the Registrar who provides these services to submit the KYC form. Applications can be submitted to the offices of Computer Age Management Services (COMS) and Carvey Computershare.

Changes to mobile numbers can be recorded when KYC is updated. In doing so, some fund houses will retain both the numbers if you have previously provided another mobile number. Some fund houses may only record the newly issued number or e-mail address. At the same time, if there is a change in the address, only the new one will be kept in the records.

Many people think that once KYC submits, it can be forgotten. But updating every change accurately is essential if we are to be able to know our financial transactions accurately.

The post Don’t forget to update your personal information appeared first on The Gulf Indians.

False propaganda is being spread through websites, SMSes and social media such as Facebook and WhatsApp. Investors need to take some precautions to avoid losing money as victims of such scams.

The first is to invest only in companies that are consistently trading at a high volume and have sufficient market value. Analysts and broking companies do not conduct research and studies on very small companies. Therefore, accurate and transparent information about such companies may not be available.

Investors should be aware that if anyone predicts that a stock will make a big leap in the coming days based on credible news, it is a ploy to artificially inflate the share price. Only after doing some research on your own should you decide to buy shares of unknown companies. Such stocks should be excluded if there are no reports from reliable and authoritative sources about the basic quality of the company. Brokerages and research houses often recommend non-standard stocks that are not even within the scope of their study, via SMS and the like.

Such fraudsters take advantage of the fact that ordinary small investors are ignorant of the analytical methods to be adopted when buying shares. The stocks they recommend are often lower priced. Many investors have the misconception that low-cost stocks will pay dividends. Most investors are confused about the difference between the price and value of a stock.

Inexpensive stocks do not have to be cheap, and expensive stocks do not have to be overvalued. Small investors often buy stocks under the misconception that the value of cheap stocks is low.

The value of a share should be determined based on various valuation methods such as the ratio between share price and earnings per share, the ratio between share price and book value. Many factors such as the financial position of the companies, the governance of the company, the quality of management and transparency in operations need to be considered before making an investment decision. Investors should avoid buying shares of companies for short-term gain when there is ambiguity about such matters.

The post Do not buy stocks based on dubious recommendations appeared first on The Gulf Indians.

As the presence of women in the workforce increased, so did the number of married women and mothers. The representation of income-generating women in households has increased. The role of women in families has changed drastically as they take out home loans along with their husbands and play an important role in ensuring the financial protection of parents and children. But despite making a significant contribution to the family’s financial base, women are still lagging behind men in terms of financial planning, including investment and insurance.

She may have taken out a bank loan along with her husband and paid off a portion of its EMI, may have been careful to pay the tuition fees for the children on time, and may have raised funds for the parents’ health check-ups, but does’nt have an investment plan like her life partner.

Life insurance is an example. The basic premise is that those without income do not need life insurance. Because their untimely demise does not affect the financial status of others. Therefore, it is said that housewives do not need life insurance. But working women need life insurance. A working woman also needs to take out life insurance to ensure that the financial status of their dependent parents and children are not compromised by her untimely death.

Women who take out life insurance, on the other hand, often make the wrong choice. Many people take out endowment policies or money back policies that include investment. Such policies, on the other hand, are not conducive to achieving the goal of life insurance. All you need for life insurance are term insurance policies or protection policies. These are policies that provide a higher sum assured in the event of death of the policyholder. Term policy also covers loans for women who take out a home loan along with their husbands.

Women also need to be careful about investing on their own. In addition to the investment made for income after retirement, there should also be investment for dependent children and parents. If fixed investment options are to be given more prominence because of the risk reduction in investment for parents, equity-linked investment should be given more prominence than investment for children. A woman aged 35-40 years should include 60-65% of her investment in equity-linked products.

The post Things to look out for when investing and insuring women appeared first on The Gulf Indians.

If you are not able to pay the bill on time, you can use the Balance Transfer method. People with more than one credit card can use this method.
Balance transfer helps to reduce the liability on interest items. Balance transfer is the transfer of loan arrears from a high interest rate bank to a low interest rate bank. Under this scheme, the loan arrears of one bank’s credit card are transferred to another bank’s credit card. Debt cannot be transferred from one card of a bank to another.
There are many conditions for balance transfer. Balance transfer will not be allowed if the arrears on any card are ‘excessive’. Failure to repay at least 5% of the total amount on the credit card bill each month will result in arrears. Balance transfer will not be allowed even if the credit limit on the card is exceeded. Some banks only allow balance transfers six months after the card is issued.
The average interest rate on a credit card loan is two to three and a half per cent per month, while in the balance transfer scheme it is zero to one and a half per cent. But this interest rate is only for a short period of time (usually two to six months). If the arrears are paid within this period, a low interest rate will suffice.
Another way to reduce interest is to repay the transferred arrears as EMIs within a specified period. When paid as an EMI, the interest can range from 12 per cent to 24 per cent. At the same time, credit card interest rates usually go above 30 percent. If the EMI or the lump sum payment is not completed within the stipulated period, you will have to pay a higher interest rate again.

If you are withdrawing money from an ATM using a credit card, be sure to repay it as soon as possible. Free credit period is not available for cash withdrawals through ATMs.
If credit cards are used for foreign currency transactions abroad, there will be a higher charge. There is a charge of three per cent to five per cent for changing currency.

The post How to reduce interests of credit card payments appeared first on The Gulf Indians.

The change in the pattern and nature of loans is an important factor accelerating consumption in our country. As peoples’ spending increased, banks and financial institutions changed the rules and regulations of making credit available to them, which accelerated people’s spending and increased the volume of consumption.

Consumption increased as the EMI culture strengthened. In the past, loans were used only for housing and car purchases, but now it has changed to a culture of EMI-based payment for whatever you buy. Credit card companies are promoting this method. Most banks offer the facility of repaying whatever you buy with a credit card as an EMI. This facility is available in addition to the interest free loan period of up to 55 days.
Credit card companies also offer interest free refunds as EMIs. Such schemes operate with a processing fee of three to five per cent.

Non-banking financial institutions are attracting customers of consumer electronics products through interest free loans. Only processing fees are charged for such loans. All you have to do is repay the loan amount as EMI. The loan is based on a special agreement with the consumer electronics manufacturer. Such loans, which are available only on pay slip and ID card copies and signed check leaves, have led to an increase in sales of consumer electronics products.

In the past, fears of default in loans had prompted institutions in the sector to impose restrictions on lending, but today new lending methods are opening up in the wake of major changes in the lending sector. With the advent of credit bureaus, nobody wanted a black mark on their credit history and so came the end of disappearing consumers. In order to get large loans like home loans and car loans, the credit history has to be secure and it has become the need of the consumer not to default on small loans. While loans are a part of life, the consumer is most careful not to fall behind in creditworthiness. This change has made it possible for non-banking financial institutions to lend ‘generously’ to buy consumer electronics products and without the fear of NPAs.

With the spread of EMI culture, consumers feel that they should not procrastinate. Before buying a mobile phone, TV, refrigerator or washing machine, there is no need to look for cash. The only criterion for deciding whether to purchase an item is whether the EMI can be refunded each month.

The post EMI-based consumption is gaining popularity appeared first on The Gulf Indians.

Most parents feel that their children will spend too much money when they grow up. The main reason for that seems to be that we are now spending more than the previous generation. It is a common allegation that the present generation doesn’t have the saving habits of the past generation. That may be true, but the savings and investment habits of different generations need to be looked at from a different angle.

Most of those who worked safely in the seventies and eighties used to stay in the same job until retirement and so they had a steady income. However, due to high inflation, it was not easy to earn a living in those days. Building a house before retirement was a daunting task. They had to rely on off-hand loans or gold loans to raise money for unforeseen needs. It was common to borrow from the Provident Fund when more money was needed.

Until the end of the last century, lending to individuals was not a business venture for banks. Credit cards were issued only to a very high income group. Personal loans, with the exception of education loans, were not common. Despite having a steady income and a risk-free job, individuals lacked facilities such as their own vehicle due to the difficulty of securing a loan.

Today, job security has declined, but there has been a significant increase in income. It is easier to get a loan from a bank because of the increase in income. In the past, it was unthinkable to get a loan at 9 per cent interest. We can’t imagine taking out a home loan at 20 per cent interest. Today, a person is eligible for loans and monthly installment products as soon as they start earning an income. As low inflation, a growing economy and better jobs provide higher incomes it also gives an opportunity for higher savings.

Today we can make many financial decisions on our own. Today’s high-income earners do not have to wait until a bank employee is ready for a loan. Banks calculate creditworthiness based on our income. But there is another side to this. It is natural to have a tendency to borrow more when you have access to credit.

Giving in to that tendency is likely to lead us into debt. So we have to fulfil the responsibility of careful financial planning. We need to keep in mind that using the opportunities that the new age presents to us can lead to faults in financial security.

The post Loans should not undermine financial security appeared first on The Gulf Indians.

Tax exemptions are available for various health related expenses as per Section 80D, Section 80DD, Section 80U and Section 80DDB of the Income Tax Act. Premiums up to Rs 25,000 paid into a health insurance policy are tax deductible under Section 80D of the Income Tax Act. Premium of Rs.25,000 on health insurance policy in the name of parents below 60 years of age is also tax deductible. If the parents are 60 years of age or above, they can get tax deduction for premium up to Rs. 50,000.

If the policyholder is a senior citizen, the premium up to Rs.50,000 of the health insurance policy in his name will also be tax deductible. Until last year, it was Rs.30,000. Tax exemption under Section 80DD is available for medical expenses of dependents with physical disabilities or for investments made in a special scheme for them. The fixed tax deduction is Rs.75,000. This exemption is available only if the disability is less than 80 per cent and above 40 per cent. If the physical disability is more than 80 per cent, medical expenses of Rs.1.25 lakh will be tax deductible.

Under Section 80U, the taxpayer is entitled to a fixed tax deduction of Rs.75,000 in case of illness such as blindness and mental retardation. If the physical disability is more than 80 per cent, medical expenses of Rs 1.25 lakh will be tax deductible.

This discount is based on a fixed amount. In other words, for the treatment of a patient with more than 80 per cent disability, a concession of Rs.1.25 lakh is permissible. However, if the dependent has availed tax exemption for this treatment, the guardian cannot claim tax deduction. Even if the physical disability is less than 40 per cent, no tax deduction is available. All you have to do is submit a certificate stating the percentage of physical disability to get the exemption. No other documents are required. If the taxpayer and his dependent spouse, children, parents and siblings suffer from ailments such as Parkinson’s and neurological diseases, they will get a fixed tax deduction of Rs.1 lakh

The tax deduction is available only if the physical disability due to the disease is forty per cent or more. If the dependent patient is a senior citizen, tax exemption for medical expenses up to Rs. 1 lakh is available. Ten per cent of the amount after deduction, including tax deduction of Rs 1.5 lakhs, will be considered.

The post Medical expenses are tax deductible appeared first on The Gulf Indians.

Bridge loan can be used for emergency purposes by using the money available in the near future as security. A bridge loan is a term used to describe a loan that can be used to hold a loan or other type of cash.

Let’s see in what kind of situation a bridge loan can be useful for. Suppose it takes a while for you to get a home loan to buy a second home. At the same time the builder wants you to make the initial payment immediately. It is in these circumstances that the benefit of the bridge loan is available. The bridge loan is considered as a secured loan security. The newly sanctioned loan document should be used as security. Once the loan amount is received, the bridge loan can be closed.

Since the bridge loan is for short term needs, the loan period is usually from three months to six months. Banks do not provide bridge loans for more than 24 months.

The interest rates on bridge loans are relatively high as they are provided for short term and urgent needs. Interest rates are determined by the nature of the security. Interest rates are likely to fall if the terms of the loan are not recorded on the terms of the loan before the loan is issued. At the same time, if the document states that certain conditions must be met before getting a loan, the interest rate on the bridge loan will go up.

The bridge loan can be repaid by EMI or together. Banks do not charge customers any special fees for repaying bridge loans before maturity. Banks offer bridge loans to regular customers and companies. Bridge loan provides securities to companies for emergencies that require cash.

The disadvantage of such products is that the bridge loan carries a high interest rate. If you do not get the expected amount or loan, you are more likely to fall into debt.

Another way to meet the urgent need is through overdraft which is at a lower interest. You can credit money to an overdraft account to reduce the debt burden.

The post Bridge loan for emergency expenditure appeared first on The Gulf Indians.

Banks are routinely tightening checks to allow applications in line with rising mortgage rates. It is common for a bank to refuse a loan if the credit score is poor. But there are other reasons why loans are denied or loan amounts are reduced. It is a good to keep such things in mind when applying for a home loans.

The loan will be sanctioned by the bank only after ensuring that sufficient amount is available in the applicant’s account for other purposes after payment of EMI. Once the fixed percentage of the salary is paid as EMI, the loan will be sanctioned in such a way that the remaining amount can be utilized by the applicant for other purposes. It is generally said that the EMI of a home loan should be fixed at 35-40 per cent of the salary. If other loans such as personal loan and credit card loan are available, the applicant’s loan liability will increase. A person who is over-indebted is more likely to fail to repay the EMI of the home loan as they will have to pay 80-90 per cent of their salary as EMI with the increase in the home loan.

How long it has been since you started your current job is an important factor affecting loan disbursement. It is common for young people to change jobs frequently in order to get a pay rise and take advantage of new opportunities. If you have worked for four or five companies in two years, it will adversely affect your loan eligibility. If it has been three or four years since you started working for the existing company, banks will consider it as an indication of gaining career stability. Such people are more likely to have access to credit.

If the credit score is above 750, it is easy for individual applicants to get a loan. At the same time, if the one applies for the loan along with his or her spouse, the credit score of the spouse will also be considered by the lending institution.

Therefore, the past loan transactions of the life partner will determine the sanctioning of the loan. The loan application may be rejected or the loan amount reduced if the spouse has a high debt liability or a poor track record of repaying the loan.

The loan application may be rejected even if the apartment you intend to buy is not included in the list of bank approved plans. If you do not have sufficient documents for the house you intend to buy, the bank may not give you a loan. Loans for housing can be sanctioned only with the sufficient approval of the local self-governing bodies.

The post Circumstances under which a home loan is denied appeared first on The Gulf Indians.

The Employees Provident Fund (EPF) is a major investment vehicle for salaried private sector workers. At present, the EPF rate is 8.5 per cent. This is higher than the interest rates on small savings schemes and bank fixed deposits.

The investment period in EPF is till retirement. Employees in companies with more than 20 employees with a monthly salary of up to Rs.15,000 are required to make a compulsory EPF deposit. Even high earners can make EPF investments voluntarily.

The investor is obliged to continue investing until he retires. Only one-time withdrawal is allowed under special circumstances for medical expenses, child marriage and housing.

Only those who have retired from service after the age of 55 can finally withdraw their EPF investment. Up to 90 per cent of the total PF balance, including contribution and interest of the employee and the employer can be withdrawn by those above 54 years of age. This rule does not apply to those who resign before the age of 55. Full EPF balance can be withdrawn in case of non-employment for 60 consecutive days after resignation.

EPF investment must be withdrawn after retirement at the age of 55 years. As per the earlier rules, if there was no contribution in the EPF account for 36 months, it would be classified as inactive account. According to the statutory rules, this only happens after the age of 55. Even if the EPF account has not been contributed for three consecutive years before the age of 55, the account will continue to function and earn interest.

At the same time, a person over the age of 55 can only keep the account active for 36 months after retirement. Failure to withdraw the deposit within 36 months will result in deactivation of the account. Then the deposit in the account will not earn any interest. Interest for a period of 36 months without contribution is also taxable. This interest is taxable when withdrawing EPF deposits.

When the EPF account becomes inactive, the deposit in the account will be transferred to the Senior Citizens Welfare Fund. This amount will remain in the Senior Citizens Welfare Fund for seven years. Every fiscal year on September 30, the unclaimed and inactive accounts are transferred to the Senior Citizens Welfare Fund. The account balance will continue in the Welfare Fund for Senior Citizens for 25 years. After 25 years, the money will be transferred to the Central Government.

Retirees at the age of 55 should take special care to withdraw their investment without waiting for the EPAF account to become inactive.

The post Don’t forget to withdraw EPF investment on time appeared first on The Gulf Indians.

The ‘Satellite Portfolio’ is designed to generate short-term gains from the stock and commodity markets. Normally, the investment period of such a portfolio is three to six months. Thereafter, investors can follow the method of selling at a profit and reinvesting when the opportunity arises.

Satellite portfolios are designed so that our long-term goals do not affect our financial planning if the long-term portfolio does not achieve the intended results. The Satellite Portfolio is designed to capitalise on market volatility in the short term.

Investors would also be happy to see short-term gains in stocks. But investors need to be prepared to trade in this way.

Technical analysis is required to identify business opportunities. For this you need to learn to analyse technical charts. Professional research reports can be relied upon until you develop the ability to study technical analysis. At the same time, learning and trading technical analysis on your own can be more enjoyable than trading based on other people’s reports.

Special attention should be paid to select fundamentals by studying fundamental analysis along with technical analysis. When there is a strong technical correction in the best stocks, it should be used as an investment opportunity. The investor should also be prepared to wait for a reasonable return on the short-term investment.

Satellite portfolio should not exceed 40 per cent of total investment. For example, if your total portfolio is Rs.50 lakhs, at least Rs.30 lakhs should be set aside for a long-term portfolio with objectives in mind. A maximum of Rs.20 lakhs can be spent on a satellite portfolio. This type of investment arrangement is made to ensure that you are investing for the short term without sacrificing your goals.

When the value of the satellite portfolio exceeds 40 per cent, care should be taken to invest the profit in a bank depot or liquid fund. This will help you increase the value of your long-term portfolio ahead of your goals.

The post You should also build a ‘satellite portfolio’ appeared first on The Gulf Indians.

Everyone needs basic financial discipline. Those who want to create a budget and move forward must first consider their various sources of income.

Income includes salaries, bonuses, rent, interest on investments and dividends. After this the cost has to be calculated. This should include groceries, car fuel costs, and loan EMIs.

Compare your income and expenses after writing them down this way. If the expenditure exceeds the revenue, immediate steps should be taken to reduce it. Implement an ‘action plan’ to spend only according to the budget. There are some things to keep in mind to make sure you are spending only what you need and not spending too much.

Care should be taken to record all expenses. Expenses that do not occur every month should be divided on a monthly basis and the monthly expenses should be calculated as a whole. For example, expenses such as school tuition fees and insurance premiums paid quarterly or annually should be calculated on a monthly basis.

It is generally said that 50 per cent of the monthly income should be spent on basic necessities (food, shelter, clothing) and 30 per cent on other needs and then 20 per cent should be saved. But in modern families this ratio may not be followed.

The EMI of home loan borrowers is about 40-50 per cent. Therefore, it is not enough to set aside only 50 per cent for basic needs. In this case, the ratio has to be changed to 60:20:20. Still no change in saving 20 per cent.

Limiting certain expenses is important in financial planning. For example, the EMI of a home loan should not exceed 40 per cent of your monthly income. Similarly, the EMI of a car loan should be a maximum of 15 per cent. If the loan repayment consumes a large portion of the income, it will adversely affect your savings and investments for needs such as retirement and children’s education.

Life insurance premium should not exceed two-thirds of the annual income. A person with an annual income of Rs.5 lakh should spend only Rs.10,000-15,000 per year on life insurance. A term policy has to be taken to get the required coverage for such a small amount. High end coverage is not available for such a small amount through standard endowment plans. Therefore, avoid taking such policies. Ensure coverage by taking out a health insurance policy and term policy.

It is important to remember that excessive spending can lead to a decline in future income. Special care should be taken not to use the money set aside for investment for other purposes. Therefore, it is important to ensure that the amount of the deposit goes to the relevant accounts first. Care should be taken to regulate expenses with the amount after all these.

The post How to set limits for various expenses appeared first on The Gulf Indians.

I have seen many people who are ‘cash rich’ even though they have a modest income. At the same time, there are those who, despite having relatively good income, find it difficult to manage their financial situation due to excessive debt. Debt is not a bad thing at all. But if spending habits are not effectively controlled, it can lead to a ‘one way ticket’ to financial disaster. Debt settlement can make the difference between success and failure.

If you want to manage serious debt, you must first realise how serious the situation is. If we do not understand the seriousness of the problem, we can never come out of it. We can only solve it if we are self-aware of the problem and its causes. For example, if the debt you have is due to the excessive cost of purchasing certain items affecting your monthly revenue and expenditure, one should be prepared to be convinced of that fact. One may also want to make sure that the costs really figure out to be the same for everyone else.

You will need to take a look at the credit card statement of the past year or other expense statements to identify where the money was spent. Check whether each expense was necessary or based on a whim.

It is important to understand exactly how we are spending our hard earned money. Even small expenses can turn into big expenses if repeated during a short period of time. But if we honestly assess where our spending is going, it can be cut.

First, make a list of where the money has gone and how much you owe. The next step is to formulate a budget. When a budget is made, it is necessary to show the will to stick to it. A budget that can be effectively implemented should be prepared. The budget should be clear about where the costs can be reduced.

We also need to be clear about how much money we can set aside each month to reduce debt. You should also be able to control the urge to take on new debts. The budget should be a tool that clarifies how the money should be spent.

The post How to get rid of debt appeared first on The Gulf Indians.

The Reserve Bank of India (RBI) has put in place strict rules to ensure that transactions through e-wallets do not cause financial loss to the consumer due to reasons other than their own.

If a customer loses money through unauthorised transactions from prepaid instruments such as e-wallets, there is a way to get it back. The rules are designed to minimise the liability of the customer in case of loss of money due to irregularities or errors on the part of the company.

In case of such financial loss, the customer will inform the concerned company within three days and the money will be refunded in full. If the information is given within seven days, the maximum amount that can be lost is Rs.10,000. If the complaint is lodged within seven days, the company will be liable to refund the amount above Rs 10,000. If the company is notified after seven days, the entire amount may be forfeited. Refunds are possible if the company takes positive action against the customer.

If the e-wallet company is informed that the money has been lost due to reasons other than its own, the lost money should be credited back to the account within 10 days. The customer complaint should be resolved within 90 days.

Information about electronic payment transfers must be communicated to the customer immediately via SMS. In the event of an unauthorised transaction, the phone number or e-mail address to notify the company must be provided with such SMS messages. The message should also be sent to the customer’s e-mail address. In order to avail these facilities, the customer needs to register to receive an SMS alert to avoid losing money unknowingly and to provide the correct mobile number and e-mail address.

The use of mobile wallets has increased significantly during the COVID-19 period. Mobile wallets are more convenient than credit cards for those who want to make payments online without having to pay directly.

Many services, including call taxi services, have the ability to pay via mobile wallets. A large number of customers who use the Call Taxi service rely on mobile wallets for financial transactions.

The post What to do if you lose money from e-wallet? appeared first on The Gulf Indians.

The use of technology has led to an increase in ‘cashless’ transactions. The next step is to switch to card-less transactions. SBI, the country’s largest bank, has introduced withdrawals without credit or debit cards from ATMs.

Those who have SBI’s mobile banking app installed on their phone can withdraw money without a card. You Only Need One (YONO) is the name of this mobile app. Earlier, services like deposit, shopping, bill payment, recharge and UPI were available to the customer through this app.

The first step is to log in with the net banking user ID and password through SBI’s Mobile Banking app. This can also be done through the Yono website. The customer will get a six digit reference number after entering the six digit Yono Cash pin in the app or website. It can be used to withdraw money from SBI ATMs within the next 30 minutes. No card is required for this transaction. Thirty minutes later this number will be useless.

This method can also be used to transfer money to a person who does not have an account with SBI. To do this, you need to register your Beneficiary List with the name, mobile number and address of the person to whom the money should be sent. After this the money can be transferred. Once transferred, the SBI verification code will be sent via SMS to the mobile number of the beneficiary. With this code you can withdraw money from SBI ATM without a card.

Up to Rs 10,000 per transaction can be withdrawn without a card. Up to Rs 20,000 per day can be withdrawn. There is no special charge for SBI account holder withdrawing money using this method. At the same time, after transferring money to another person, he has to pay Rs 25 per transaction for the service of withdrawing money through SBI ATM without a card.

It is not possible to withdraw money in this manner from all SBI ATMs. Withdrawals without a card can only be made through the ATMs that include this service.
While the next generation of banks have been at the forefront of using the latest technologies earlier, SBI is the first bank in the country to introduce a ‘cardless withdrawal’ facility for savings bank account holders. Apart from SBI, ICICI Bank and Axis Bank have also introduced the facility of transferring money to another person who does not have an account and who can withdraw money through ATMs without a card.

The post Now, withdraw money from an ATM without a card appeared first on The Gulf Indians.

Most people would like to seek the help of an adviser for investment planning. Portfolios managed by advisers offer better performance than self-managed portfolios. But if you only include fixed deposits and index funds in your portfolio, an advisor has nothing to do with maximizing returns. But he can do something else. It is to train your nature.

Such a service will help you make the right investment decisions and avoid making decisions that could affect your financial health. The important thing is to make the right decisions that affect the profit and loss of the portfolio. You can also seek the help of an advisor.

Under what circumstances can an adviser help you make decisions? For example, suppose you and your spouse have different opinions on how to invest. In such a case the help of an adviser can be sought to avoid a dispute. The advice of an advisor can help keep financial matters from affecting your personal relationships.

An adviser can also avoid making decisions based on quick impressions. If you feel compelled to buy or sell shares or equity fund units when the market falls or rises by 10 per cent, you should seek the advice of an adviser before making a decision. There can sometimes be a feeling of making a profit based on the feeling that the stock market is falling. But is it right to withdraw the investment now if it has been made for the educational needs of the children years later? When such questions arise on their own, they can be discussed with the adviser.

Some people have a tendency to procrastinate. Those who procrastinate their investment may decide on the basis of the advice of an adviser whether it is the right course of action.

Controlling emotions is not always possible for many as an investor. You may not have the intention of making an immediate profit while investing. But when you start making a profit, you may be tempted to make a profit immediately, fearing that it will be lost. In such cases you can seek the help of an adviser.

The services of a professional may not always be available in decision making. In such cases, you can seek the advice of your spouse or friend. Decisions can be made through discussion based on certain pre-determined rules.

The post Seek the help of an adviser to make decisions appeared first on The Gulf Indians.

Banks determine the creditworthiness of applicants based on credit scores provided by credit bureaus such as CIBIL. Credit bureaus collect details of all types of loans such as home loan, auto loan, personal loan and credit card loan. Credit scores are determined by credit bureaus based on the credit history involved. CIBIL now offers a credit rating service as well as an additional service called CIBIL Marketplace, which facilitates borrowing.

CIBIL Marketplace offers additional services to those who have purchased credit rating services during the last three months. Banks and financial institutions provide customers with information about their financial services, such as credit cards and loans, on CIBIL’s website. It also explains the terms and conditions of getting a loan. You can find out about interest rates and fees on loans and credit cards offered by various institutions from this website. By comparing these, the customer can decide from which institution to take the loan.

Those who apply for loans from banks and financial institutions through CIBIL can expect discounts on interest rates and charges based on improved credit scores. CIBIL also provides loans to individuals based on their credit score and income.

You no longer have to search at individual institutions to know about the different loan offers of different financial institutions and banks. Discounts on interest and processing charges and repayment terms offered by different institutions for a particular loan are available on Sibyl’s website. At the same time, offers are made based on the applicant’s credit report and how high the credit score is.

Loans made through CIBIL Marketplace are subject to conditions. It will be difficult for the ineligible to get a loan. Those who are eligible for loans can apply online. Loans and credit cards can be obtained only after completing the verification of documents.
The credit score and credit report are available on CIBIL’s website. Information on home loan, auto loan, personal loan, mortgage loan, business loan and gold loan is available on the website.

The post CIBIL Marketplace to apply for a loan appeared first on The Gulf Indians.

Sales of new cars in India have been on the rise in the last few months. Used car sales are also growing by 15-18 per cent. According to various banks, bank lending for used cars has increased by 12 per cent to 18 per cent.

There are a few things to keep in mind before buying a used car. If you are buying a used car with a loan, you need to be extra careful.

The first thing to do before buying a used car is to check all the documents carefully. Make sure the registration certificate (RC) is in the name of the person selling the car. Banks and financial institutions give out loans only after verifying the authenticity of the car’s records. In addition to checking the records, they will also evaluate the car according to their own criteria.

The value of a car is determined by factors such as its use, the number of times ownership has been transferred, and mileage. Pricing is not based on car age alone. For example, if the mileage of a one-year-old car exceeds 50,000 km, the use of another car of the same model with the same age may be only 10,000 km and so the price of the two will be different.

Cars over 10 years old are generally not subject to credit. Similarly, most lenders will pay off the loan by the time the car is 10 years old. For example, a car that is seven years old can get a maximum loan of three years. Some banks specify that the car can be up to eight years old.

The interest rate on a used car loan is higher than the loan on a new car. This is between 2 per cent and 5 per cent higher in different banks. Considering this, you have to decide whether to take a loan to buy a used car or not. If you have a good credit score, you can ask for an interest reduction.

The post Things to consider when taking out a loan for a used car appeared first on The Gulf Indians.