Which mutual fund is best for a fixed deposit?

Is your fixed deposit maturing and you are looking for some other good investment alternative? Mutual Fund (MF) is one of the most-sought-after investment options that perfectly cater to the wide-ranging investment needs of people. Though there are some sorts of risks associated with mutual fund investment but by choosing a right hodgepodge of funds, you can get the most from MF investment. However, before moving further, we want investors to understand the very difference between mutual fund investment and fixed deposit so that they can easily decide on an avenue to choose.

In this context, the major difference between the two is that of an interest rate. While the rate of interest in MF investment tends to fluctuate as per the market conditions, fixed deposit interest rates remain fixed throughout the investment tenure. Alternatively, fixed deposits promise assured returns whereas MF investments are subjected to market risks. This means, if the market burgeons, the investment is likely to yield better results and vice versa. The nature of risk in Mutual Funds, however, depends on funds to funds but the fundamental point here is that mutual funds do not provide assured returns and are not risk-free as in the case of fixed deposits. But if you go by the rule where the risk and returns go hand in hand, taking a small risk to earn good returns is worthy in every sense.

Risks Associated With Mutual Fund Investment

Here is a sneak-peak into different types of risks associated with Mutual Fund investments:-

Different mutual funds have dissimilar risks associated with each one of them. This is why the Security and Exchange Board of India (SEBI) has come up with a labeling system (Risk-O-Meter) for evaluating the risk of different mutual fund products. To find the risk grade of different funds, you can visit the official website of the asset management company.

Plus we’ve also enlisted the different categories of debt mutual funds underneath:-

1. Low-risk funds: In general, different categories of debt mutual funds are considered as low-risk funds. Investors looking for low risk of their funds and can withstand just a small capital loss can invest in this kind of fund. Low-risk funds are good investment options if an investor is ready to afford minor fluctuations in their capital investment.
2. Medium risk funds: As the name depicts, this mutual fund schemes come with moderate risk. The returns in these kinds of funds are more impetuous. Also, the risk associated with medium risk funds is slightly higher from low-risk funds. However, these funds can yield better returns than low-risk funds. Investors looking for income and capital appreciation can consider investing in Medium risk funds over fixed deposits that promise assured returns but at a lower rate of interest. Different types of hybrid mutual funds including both equity and debt funds, like equity savings funds and monthly income plans are included under this risk grade category.
3. High-risk funds: This type of mutual fund products comes with high risk. Here the loss of capital is highest in short-term investment but in the long run, these high-risk funds are sure to provide highest returns. Investors looking for a long-term investment with higher capital appreciation must invest in this type of mutual fund. Equity mutual funds come under this risk grade.

Investors switching from fixed deposits to mutual fund investment and are comparing between the two should understand that FDs are a low-risk investment; hence it should be compared with the low-risk funds only for better judgment.

What is a debt fund?

A debt fund is a kind of mutual fund scheme which invests in debt market securities or in the money market (to be precise). The best example of debt fund investment includes a certificate of deposits, treasury bills, and commercial papers to name a few. Even you most debt fund belong to the low-risk grade but they are not risk-free. However if given a chance to choose between fixed deposits and debt funds, debt fund is certainly the best investment option as they give superior returns when compared with fixed deposits. There are different types of debt funds with dissimilar risk profiles. The table below illustrates average, medium and highest returns of different categories of debt funds over the last one and three years correspondingly.

Debt mutual fund category	One year return		3-Year annual returns
	Average	Medium	Average	Medium
Liquid Funds	6.1%	6.6%	7.1%	7.6%
Ultra-short term Debt Funds	6.7%	7.1%	7.8%	8.1%
Short Term Debt Funds	00.7%	00.7%	8.6%	8.6%
Credit opportunities funds	8.3%	8.2%	9.5%	9.4%
Fixed Maturity funds (FMPs)	6.9%	6.7%	7.7%	7.7%
Income funds	6.3%	6.6%	9.2%	9.5%
Long-term gilt funds	6.4%	6.2%	10.7%	10.5%

The Bottom Line

In the above table you can see that most categories of debt mutual fund surpassed the last 3 years of fixed deposit returns over a similar period of time. Even in the last one year, debt mutual fund categories including credit opportunity funds, fixed maturity funds, credit opportunities funds did better than fixed deposits. Also, the fund categories which were not able to perform in the last one year did well over the last three years. Earlier in this article, we’ve mentioned that mutual funds are subjected to market risks and those risk and returns go hand in hand with MF investment. It is therefore imperative to choose funds as per your requirements. Make sure your investment profile should have a perfect amalgamation of high and low-risk funds so that you can optimize the level of risk to get the best possible returns on your investment. In case you require any assistance related to mutual fund investment, you can seek the advice of professionals to make the wisest decision at the end.

How to take a Loan against Gold?

Loan against gold is an easy process wherein you need to pledge your gold ornaments. to the lender (bank or the NBFC) and in return get a loan at a predetermined rate of interest. Such loans are commonly referred to as gold loans. These are secured loans that are procured in exchange for gold jewelry. Taking loan against gold in unexpected crisis is a way better option than applying for a personal loan, but only if you have a considerable amount of gold to keep as collateral. The process to take a loan against gold is fairly simple and less time-taking. Also, documentation and the paperwork involved in the gold loan are less intrusive as compared to other loan types. 

Here’s how you can take a loan against gold

Earlier there were just a few firms and local gold loan providers which offered loan against gold. However today every bank and Non-Banking Financial Institutions offer gold loans at an attractive interest rate. 

Documentation

Borrowers applying for a loan against gold need not have to furnish a huge list of documents, just an income or address proof or sometimes both are required. Furthermore, a gold loan requires no credit score. This is the reason why gold loans have been gaining popularity nowadays. The documents required in the process of taking a loan against gold are:-

1. Duly filled application form

2. One passport sized photograph

3. An identity proof (Voter ID/Pan Card/Passport)

4. Address proof (Ration Card/Passport/Electricity Bill/Rent Agreement/Driving License/Passport)

Quantum of loan against gold

Traditionally, you can avail up to 60 percent of the value of gold ornaments as a loan. But some banks also consider factors such as purity of gold, the tenure of loan etc. to determine the amount of loan that is to be sanctioned. Plus, gold loan borrowers are also entitled to subsidiary benefits provided by the Indian government.

The evaluation of Gold

The procedure to evaluate gold differs widely across banks in India. But in general, all the hallmark jewelry is evaluated on the basis of purity, weight and the current market value of gold. The value of stones if embedded in the gold jewelry is not considered. However for any jewelry without the hallmark sign, the purity of gold is questionable hence the lenders may end up allowing a lesser amount of loan.

Deposit of Gold

Soon after borrower decides to sign up for gold loan and submits the duly filled application form, an agreement is signed between the bank and the customer, after which the gold coins or jewelry gets deposited with the bank and the loan amount is disbursed. Ideally, the bank keeps the custody of gold until the time the entire loan amount is repaid by the customers, which is generally 12-18 months.

Default in payment

In case the customer fails to repay the loan on time, the bank is free to sell the gold that is kept as collateral and balance out all loan dues as mentioned in the loan agreement. 

Processing fee and other charges

The banks do charge a loan processing fee and a gold valuation fee which is to be borne by the customer.

Interest rates 

The interest rates offered on loan against gold is more attractive than personal loans. But one important point that should be noted here is that the interest on the gold loan depends largely on the amount of safety you give to the lender which means the higher will be the amount of jewelry kept as collateral the lower will be your loan interest rate and vice versa. Generally, the interest rates on gold loans vary between 10% and 20%. Plus lenders also offer several schemes for the loan applicants at a reduced interest rate if the loan is repaid within a diminutive period of one month or so on.

Key features of a gold loan

1. Loan against gold can also be paid out by the bank in just one day if all the documents, application form, etc are appropriate.

2. On an average, borrowers get 60% of the values of gold that is kept as collateral but some banks do offer 80 to 90% of the gold value.

3. Availing a loan against gold does not mean that you are selling it for contingency. Once the entire loan amount is paid off, the bank returns your gold.

4. Loan against gold can be closed anytime you want by making the payment in full. There is no penalty for pre-closing the loan.

5. On an average, the loan against gold can be taken from 3 months to 3 years.

6. Individuals of a low-income group can also apply for this loan against gold conveniently if they do not qualify for other types of loan.

Applying for a loan against gold is a way better option than the personal loan as it offers faster processing, minimal documentation, zero pre-payment fees, and no EMI option. So now if you have a good amount of gold hoarded in your locker and you have immediate requirement of cash for your personal needs, it is good to make use of the gold instead of choosing personal loan option on higher interest rates.

What are the costs involved in taking a Home loan?

Buying a home depends on the funds you have available with you. If an individual does not have sufficient funds in hand to buy a home, then he can opt for a home loan to gather funds to fulfil the requirement. Any individual generally avails a home loan for either buying a home or plot of land for the construction of a house, or renovation, extension and repairs to your existing house.

A home loan comes with several other expenses than the loan EMI. You should check your eligibility for a home loan and start the application process. But, before going for the documentation you should glance through the below mentioned charges and fees you will need to pay other than the loan EMI before you get your dream home.

1. Processing Fees: The first and the most common expense, which one has to bear as a part of your Home Loan application is the processing fee. You will be asked to pay the processing fee at the time of submission of your application for your home loan. This fee is non-refundable but it varies from one lender to another. It is charged as a percentage of total home loan amount and usually varies from 0.25% to 1%. If the home loan application gets rejected, then this fee would not be refunded. Processing fee is charged by the lender to process your application, verify your documents and process all the formalities.

2. Legal Advisor Fees: When you decide of buying a home and arrange the funds by availing a home loan, you will be required to get your new house’s documents reviewed by a lawyer. They will check the title of the property along with the documents and records of the past ownership. And you will be required to pay a fee for the services rendered of a legal advisor. In other words, you have to bear this fee to get the property documents verified by a legal advisor.

3. GST Tax on all bank fees: GST is another amount that will be charged by your lender on the amount that you have to pay them as fees.

4. Stamp paper cost: Stamp Duty is a nominal expense that you have to pay for the legal documentation on which the home loan agreement will be made. It will contain a legal home loan agreement between you and your bank. Once your home loan is approved by the bank, only then you have to pay this fee to get the loan agreement. The lender will ask you to pay this fee for the loan agreement as this amount is not included in the processing fees.

5. Cost of Home Insurance Premium: You should insure your home with home insurance if you are availing a home loan to finance the purchase of your new home. Same as the other expenses mentioned above, the cost of home insurance premium has to be taken up by you only. You have to pay the insurance amount upfront post the loan approval and first disbursement by your lender.

6. Home Loan Insurance Premium: Home Loan Insurance insures you against your home loan liability. Home loan insurance is different than the home insurance. Home loan insurance insures you against your home loan liability and home insurance insures your property. The home loan insurance premium amount depends on the loan amount, tenure of your home loan and the insurance provider. Your premium amount will also reduce if your home loan tenure reduces. Home Loan Insurance acts as a guarantor if the lending bank requires a guarantor in your case. If you do not have a guarantor, home loan insurance can act like one for you.

So, before you go for a home loan, remember that it comes with several miscellaneous expenses apart from your loan EMI.

Joint Home Loan Application - Is it a Myth or Truth?

A joint home loan application is an initiative by banks that allows applicants to include a co-borrower in a home loan with whom they can share their debt-burden and apply for a larger loan amount because the income of a co-borrower will also be considered while determining loan amount eligibility. A joint home loan can be taken by a maximum of six co-applicants. Here’s a sneak peek into the details of this loan type:-

Who is a co-borrower?

Co-borrower is a person who shares the burden of a loan with the primary applicant. A co-borrower can share the loan amount with the primary applicant in any capacity. He/she doesn’t necessarily have to be a co-owner in the property however is liable to pay out the loan as per the pre-set terms and conditions. However, a co-owner of the property has to mandatorily be co-applicant and henceforth, co-borrower in the said home loan.

Who can be a co-borrower in a joint home loan application?

A joint home loan can be obtained by the primary applicant along with an immediate family member as their co-applicant i.e. the applicant’s spouse, parents and siblings can be co-applicants of a joint home loan. Mostly a father and son, unmarried daughter and father, unmarried daughter and mother, brother and brother and husband and wife joint home loan applications are considered eligible for a joint home loan. Note that usually married daughter and parent(s), two sisters, sister and brother, two friends and to-be-married couples cannot be co-applicants in a joint home loan.

List the Documents Required to apply for a joint Home Loan

To apply for a joint home loan, one needs to furnish their KYC (Know-Your-Client) details which include the address proof and identity proof of the co-applicants along with the income proof of their respective income. The proof of co-ownership of the property is also required by the bank to sanction the joint home loan application.

What is the home loan interest rate offered on a joint home loan?

Just like a regular home loan, the joint home loan interest rates vary across banks in India. But currently, all major banks including HDFC, SBI and other housing finance institutions offer joint home loans at as low as 8.30% interest rate, which is subjected to change as per the market conditions.

What is the tax benefit offered on a joint home loan?

Tax benefits on a joint home loan are aplenty. Under section 24 of the income tax act, all co-applicants of a joint home loan can claim tax deductions against interest paid. Plus, section 80 C of the income tax act can let them claim a tax deduction against principal repaid. In addition to this, when two or more persons have taken a joint home loan, every individual paying the income tax can avail the tax benefits available under the Income-tax Act, 1961 relating to the principal and interest paid in a financial year.

What is a joint home loan repayment process?

The process to repay the joint home loan is similar to that of a regular home loan. But the payment should be made through one cheque from a single or a joint account. Another way of repaying the joint home loan could be that the co-borrowers split the number of EMIs amongst them in a manner that the exact number of cheques can be issued by one borrower while the other pays the balance. The next good way out can be such that one borrower pays all the installments and other borrowers pay him their share thereafter.

7 Reasons Why You Should Not Buy Home Loan Protection with Home Loan

Buying a home has always been the biggest dream of every middle class family. It is also one of the biggest investments of anyone’s life too. The day of the possession of the home remains unforgettable throughout our lives. Most of us need and prefer to take a home loan to fulfil our dream to buy a home. Home Loan fulfils the dream of purchasing a dream home but also comes with a liability to pay it off. To make it positive, banks and financial institutions come with various schemes on home loans to make it easy for you to repay the loan. There must be something to protect it financially to ensure that your dream home always stays with your loved-ones.

Usually, the lending financial institution will ask you to opt Home Loan Protection Plan (HLPP) and many people opt for the same without even understanding the actual fundamentals of the Home Loan Protection Plan. Before proceeding to the reasons why you should not opt for a home loan protection plans or HLPP, we should understand what exactly is a home loan protection plan?

What is a Home Loan Protection Plan?

Home Loan Protection Plan is a single premium term insurance plan that covers your outstanding loan taken from a borrower if in case, you die or something happens to you before the settlement of the loan. Home Loan Protection Plan helps to provide protection to your family members as they don’t have to think about the home loan settlement policy. For instance, if your home loan amount is of Rs 40 lakhs and something happens to you with an outstanding amount of Rs 30 lakhs, then your family members have nothing to worry and Home Loan Protection Plan will settle the home loan for you.

Now let us examine 7 reasons, why you should not buy Home Loan Protection Plan in the first place:

1. It’s a onetime premium thing!

For Home Loan Protection Policy, you need to pay a onetime premium, which is the biggest disadvantage. If compared to the normal rates, the House Loan Protection Plan premium is three times the normal rates.

2. It is a five year policy

The Home Loan Protection Plan is valid for only five years and if something happens to the borrower after five years of the policy, the outstanding home loan would not be covered by them. So after every five years, you have to renew your home loan protection policy to make it valid.

3. Home Loan Protection Plan does not cover suicides and natural deaths

So, if you are taking HLPP into consideration because it covers the outstanding loan amount and keeps your family members out of the equation, then keep your eyes open. Home Loan Protection Plan does not cover natural death and suicide whereas the normal home loan payment covers these inevitable circumstances. So, in case of natural death or suicide, the borrower’s family members will be liable to pay the outstanding amount of home loan. Hence, it is advised not to opt for this plan in the first place.

4. Becomes null and void in case of foreclosure of loan

If the home loan is foreclosed by the lender before the actual date, then the borrower will not get any refund of the premium of home loan protection plan. If you took a home loan for 5 years and close it in 3 years, then you will not get any refund for the premium paid and your home loan protection plan will become null and void. Remember, if you pre-pay a part of your home loan then your home loan protection plan will reduce according to the principal amount outstanding.

5. Home Loan Protection Plan becomes null and void if home loan is transferred to a new Bank

If you want to transfer your home loan to another bank or financial institutions offering lower interest rates, then you will end up with an expiration of your home loan protection plan. Also, you will not get any refund for the premium paid.

6. A home loan insurance plan is costlier than a pure term insurance plan

The premium paid for a home loan protection plan is much higher than the premium charged for a term insurance plan of the same amount. The premium of a home loan protection plan is usually 2 to 2.5 times higher than that of term insurance policy.

7. Home Loan Protection Plan is not constant but depleting in nature

Home Loan Protection Plan provider is liable to pay only the loan outstanding amount. Whereas, term insurance plan is constant in nature and the insurance provider is liable for the payment of principal amount. For instance, if the home loan amount is Rs 60 lakhs and outstanding loan amount at the time of the misfortune causing borrower’s death is 40 lakhs, then in HLPP the liability for the HLPP provider will only be Rs 40 lakhs. Whereas, in case of term insurance, the term insurance provider will be liable to pay the principal amount of Rs 60 lakhs.

Which one is Best Gold Loan or Top up on Home Loan

You may be looking for finance to fund an expense like business expenses, renovate your house etc. To fulfil the need, the first question that will arise in your mind will be, “How to pay for it?” If you do not have enough cash available, you might think of taking a loan but, which loan should it be? While searching for the appropriate loan, you might come across the term “top-up loan” or “top-up home loan”.

Taking a home loan is the best possible way to buy your dream home. But, home loans may not be able to meet your other financial needs. If you are looking to renovate your home or meet your personal or business expenses, then a top-up loan on your existing home loan will prove to be a cost-effective solution.

What are Top-up Loans?

If you currently have a home loan and have made repayments timely, then your bank can give you the option of borrowing an additional loan, which will be equal to the amount of your current housing loan that you have paid so far. A top-up loan or top-up home loan is offered to you above your current home loan. Top-up loans provides support in case of any financial crunch that you may face while renovating or repairing your home. Top-up loans does not come with any precondition, which enables you to use the funds for any other need as well.

Eligibility

Top-up loans can be availed by existing home loan borrowers. You are only considered for top-up loan when you have started making repayment of your home loan for a minimum period, which depends on your bank. Usually, banks tend to have a minimum repayment period of 2-3 years before they consider you for a top-up home loan. Also, banks will consider you for a top-up loan only when you have a healthy credit score and a good repayment record. The chances of top-up loan can reduce, if you have a low credit score or delayed repayments on your home loan.

What is Gold Loan?

Gold has seen a good amount of capital appreciation over the years. You can use this gold to provide fund in case of any financial crunch such as medical emergency, child education, business expansion etc. If you are need of funds, you can utilise the gold lying in your lockers to fund your urgent requirement. Gold loans are one of the fastest and hassle free loans available. You can get loan against any form of gold available like gold coins, biscuits and jewellery.

Eligibility

Gold loan can be availed by mortgaging your gold for funds required to support the financial crunch. Gold loans generally come with base interest rates of 11-14%. But, the interest rates tend to vary across banks. You can consider taking gold loan if you have enough gold available with you and if you are able to get a loan at a reasonable rate. However, gold loans are granted for a short term of 1-3 years. So, you should take gold loan only if you think you can repay it in the short period of time.

Is Top-up Loan a Better Option than Gold Loan?

Top-up Loan is not required to be used necessarily for home related expenses. It can be used for any random expense as the lender holds the first mortgage on the property.

On the other hand, Gold Loan is one of the easiest forms of fund you can avail by mortgaging your gold assets.

However, both Top-up Loan and Gold Loan have different markets. If any borrower already has a home loan, then it becomes easier and hassle free to avail top-up loan if the borrower maintains a healthy credit score and has made repayments on time. There are two benefits of top-up loan over gold loan.

· Lower interest rate – Top-up Home loans are generally available at a lesser interest rate than gold loan.

· Longer tenure - Top-up home loan is available for a longer duration of time than gold loan. Gold loans are available for a short duration of time. Thus, you should be able to repay the loan in the short duration of time.

What Are the Conditions to Apply for SBI Credit Card?

State Bank of India, the largest banking institution in the country, offers a host of credit cards with several benefits. SBI Cards cater to the middle-income group as well as those who have extravagant spending habits. The eligibility criteria for SBI credit cards are based on what credit card you want to apply for. However, there are a few conditions that are required to be fulfilled at the time of SBI Credit Card application, be it a low cost card or an extravagant one.

Let’s talk about these eligibility criteria in some detail-

Age of the Applicant

To be eligible for any SBI credit card, the applicant should be at least 18 years old. The maximum age has been fixed at 60 years. People who do not fall within the minimum and maximum age limit are not considered eligible mainly because the bank does not want to take risk by providing them a credit line. For example, minors (below 18 years) would not have any source of income and hence they will be denied a credit card. Similarly, people above 60 years of age have mostly retired and do not have fixed income, making them a greater risk for the bank.

Income of the Applicant

The income criteria for credit card applicants differ on the basis of the SBI credit card that they have applied for. For low-cost or no-cost cards, the income requirement may be lower as compared to the cards that make you a member of SBI’s elite group. A few low-cost cards by SBI are SBI SimplySAVE, SBI SimplyCLICK, STYLEUP Contactless Card, IRCTC SBI Platinum Card, Yatra SBI Card and Mumbai Metro SBI Card. On the other hand, high-cost cards with greater benefits include SBI Card Prime, SBI Card Elite, Air India SBI Signature Card, Air India SBI Platinum Card and the Advantage range of SBI Credit Cards.

Credit Score of the Applicant

Another important factor that SBI will consider at the time of issuing a credit card is the credit score of the applicant. If you have a good credit score, the chances of getting approved for a credit card are higher. Additionally, the banks will also be ready to give you a higher limit as compared to an applicant who has a lower credit score. Those who do not have any credit history can also apply for SBI credit card but they are more likely to get a lower credit limit after a thorough verification.

Documentation Requirements

This is one criterion that you will have to fulfil at any bank. Documentation formalities must be duly fulfilled in order to be eligible for SBI credit cards. The bank will ask for your identity proof, address proof and income proof. The following documents can be used for the above three purposes-

A. Identity Proof

· Passport

· PAN Card

· Driving License

· Voter ID Card

· Government/Defence ID Card

· ID Card of reputed employers

· Photo ID Cards issued by Post Offices

· Commission (UGC) and/or an Institute approved by All India Council for Technical Education (AICTE)

· Photo identity Cards issued to bonafide students by a University, approved by the University Grants

· Pension Payment Orders issued to the retired employees by Central/State Government Departments, Public Sector Undertakings, etc.

B. Address Proof

· Passport

· Ration Card

· Income/Wealth Tax Assessment Order

· Electricity Bill- not more than 6 months old

· Landline Telephone Bill - not more than 3 months old

· Credit Card Statement- not more than 3 months old

· Bank account statement

· Letter from reputed employer

· Letter from any recognized public authority having proper and verifiable record of issuance of such certificates

· Ration Card

· Voter ID Card (only if it contains the current address)

· Sector Undertakings, if they contain current address.

· Copies of Registered Leave & License agreement/Sale Deed/Lease Agreement may be accepted as proof of address

C. Proof of Income

· Appointment Letter

· Audited Balance Sheet and Profit and Loss Account (For Self-employed)

· Employer Certificate

· Form 16

· Income Tax Returns

· Salary Slip

The bank’s representative may also require you to present original documents for one time verification.

You can apply for SBI credit card if you meet all the conditions given above.

How will I Qualify for a Personal Loan?

A personal loan is one of the easiest loans that you can apply for to buy a new gadget, furniture or for renovating your home, or even for planning a much-anticipated vacation. Moreover, a personal loan is also used to consolidate debt such as multiple credit cards, medical bills, etc.

Everyone, be it a salaried individual or a self-employed and nonprofessional, can apply for a personal loan to complete various tasks in life. If you are a salaried person, your age, monthly income, and proper documentation will fix your loan amount, like how much money you can borrow from a bank. On the contrary, for a self-employed individual, personal loan eligibility is calculated on the basis of their business stability, age, and supporting documents.

Note that the eligibility criteria for a personal loan vary across banks in India. This article highlights personal loan eligibility by top banks in India:-

SBI personal loan eligibility:

Your eligibility to get a loan from SBI is your income and repayment capacity. Any applicant who is an Indian citizen can avail a loan of up to 2.5lacs from SBI at 1% processing fee. In metropolitan cities, applicants can avail a personal loan of 5lacs. SBI also provide loans to pensioners below 75 years of age.

HDFC Personal loan eligibility:

Known for its easy approval process and minimal documentation, HDFC bank provides personal loans to people who meet the following criteria:

1. Should be between 21 to 60 years of age

2. Should have 2 years of work experience with minimum one year of tenure in the current company

3. Should earn at least 12,000/- per month and 15,000/- if he/she resides in metropolitan cities.

HDFC provides special personal loan offers for women applicants. With HDFC, you can get your personal loan disbursed in two days.

ICICI personal loan eligibility:

Both salaried and self-employed individuals are eligible to get a personal loan from ICICI, provided they fulfill the following criteria:-

1. An applicant should be aged between 23 to 58 years

2. Should earn minimum 17,000/- pm. and 25,000/- per month if an applicant resides in metro cities.

3. Should have 2 years of work experience

4. Should be staying at the present address for at least one year

5. On the contrary, a self-employed applicant should be in the current business for 5 years. For doctors its 3 years.

6. A self-employed applicant needs to be 28 to 65 years of age. For doctors, the minimum age to apply for an ICICI personal loan is 25.

7. Minimum earnings should be Rs.40lacs for non-professionals and Rs.15lacs for working professionals. Whereas for self-employed individuals, the minimum profit after tax should be 2lacs.

Axis bank personal loan eligibility:

To be eligible for a personal loan from Axis bank, an applicant should be:

1. Minimum 21 years of age and the maximum age should be 60 years at the time of loan maturity

2. Net income should be 15,000/-

Documents to get a personal loan:

The documents that an applicant need to furnish to these banks to get a personal loan are:- One Identity proof (voter ID/driving license/passport copy), one address proof ( passport/utility bill/ration card), income proof (salary slip of last 3 months/bank statement (3 to 6 months)/passbook (3 to 6 months) along with the application duly signed, photographs and processing fee amount in cheque.

The Bottom Line: Getting a personal loan is easy if you go through the fine print carefully and understand the clauses associated with it. A word of advice: personal loan have higher interest rates as compared to other loan types, therefore it is good to look beyond interest rate and contemplate on other factors too. Always choose the loan amount that you can easily pay off. And lastly, never sign up for a personal loan without comparing.

What is New Pension Scheme?

Gone are the days when retirement was all about living in a joint family with all the amenities taken care of by the earning member of the family. Today retirement is more like freedom - a freedom to travel places, pursuing hobbies and contributing to the society. With this consideration in mind, the Government of India has come up with a new pension scheme (NPS) to make the life of retirees self-determined.

Although this scheme was launched way back in 2009, but it has been gaining significance from the last couple of years. One can sign up for this scheme through various banks and other financial entities. As part of this scheme, you will be allotted a permanent retirement account number (PRAN), which will be a unique number valid across the nation.

NPS offers two types of accounts: Tier I and Tier II. Tier I account is for those who choose to contribute their savings, including the contribution from their employer, for retirement into a non-withdrawable account. Tier II account, on the other hand, is a voluntary savings account as per which the contributors are free to withdraw their money anytime they want.

5 features of the New Pension Scheme (NPS)

1. The New Pension Scheme is valid for every individual aged between 18 to 60 years of age

2. Subscribers, to contribute in Tier I and Tier II accounts, are required to make their first contribution at the time of registration with minimum contribution of Rs.500 for Tier I and Rs.1000 for Tier II at any POP-SP with an NCIS form

3. NPS has two approaches to invest money in your account - Active choice and Auto choice

A. In the Active choice option, you will have the option of deciding how your NPS money is invested in three assets classes E, C and G. in this choice, you will have the option of choosing your fund manager and provide the ratio in which your funds have to be invested among the above mentioned asset classes.

B. In the Auto choice option, your money will be invested in various asset classes in a lifecycle fund according to a pre-defined portfolio. In Auto Choice, the proportion of E, C and G is determined by the contributor’s age. At every birthday of the contributor, these proportions are readjusted as stated in the life-cycle matrix.

4. In case you withdraw your NPS deposits before 60 years of age, you’ll get only the 20% of the total amount while the remaining amount will be used to purchase an annuity. However, if you withdraw your money after the age of 60, you can get 60% amount in a lump sum while the rest 40% will be saved to buy an annuity. In case of death, your 100% of the amount will be available to the nominee or legal heir of the subscriber.

The government’s idea behind the new pension scheme is to make every retiree independent and self-willed. Those who want to make their retirement the awe-inspiring and amazing days of their life can start investing in the NPS scheme. Since it’s a government initiative, there is a sure shot guarantee of receiving the withdrawal amount when you need it the most. The eligibility criteria to apply for the New Pension Scheme include:-

1. You must be a citizen of India.
2. You must make at least one contribution in a year to keep the scheme active.
3. You must be at least 18 years of age to contribute in the NPS.

4. The maximum age to sign up for NPS is 60 years.

Savings Schemes in Post Office Which You Should be Aware of

The Indian Postal System was set up more than 150 years ago by the British Raj during the pre-independence period of India. It was truly a remarkable achievement for the period considering the diversity of terrain that made India so unique also made setting up an efficient pan-India system of delivering letters that much more difficult. As a result of its reach to the most remote corners of the country, the Indian Post Office diversified from the simple delivery of letters at a later date to include a range of services such as handling and distributing financial products. This foray into financial products has continued post-independence and now at certain post offices, you can easily avail mutual fund investments apart from a range of savings products. In the following sections, we will discuss which are best saving schemes in Post Office. 

Monthly Income Scheme

The monthly income scheme is one of the most commonly availed post office savings schemes available in India. This requires the establishment of a separate account with tenure of 5 years and this account can be easily transferred from one post office in India to another. Deposits can be made either via cheque or draft and there is no limit on the number of these accounts that an individual can open at any post office across India. The monthly deposit scheme can also be opened for a minor by the parent or a legal guardian, while joint account facility is also available in this case. The current rate of interest offered under this scheme is 7.6% annually with interest payable every month. In case of premature encashment, available interest rate is deducted by 2% or less.

Time Deposit (TD) Account

This is the post office variant of the 80C tax saver fixed deposit scheme, provided the tenure of the deposit is at least 5 years. TD schemes of shorter tenure operate much like bank fixed deposits however the rate of interest offered is usually slightly higher than those offered by leading Indian banks. There is no limit on the number of Time Deposit Accounts that an individual can open and these can be sole operated or jointly operated account as per the requirement of the account holder(s). Currently, the interest rate offered by Post Office Time Deposit Accounts can range from 6.9% to 7.7% depending on the tenure. The minimum deposit allowed in the scheme for tenure of up to 5 years is Rs. 200, while there is no maximum limit on this. It is notable that 80C benefits are applicable only up to Rs. 1.5 lakhs annually. 

National Savings Certificate

When determining which are best saving schemes in Post Office, the most often missed one by far is the National Savings Certificate. Considered to be much less effective way to generate savings in the current scenario, these certificates were savings instruments of choice in the recent past. With little to no risk associated with them, these were and continue to be a source of guaranteed savings. The tenure of each certificate is 5 to 6 years depending upon the tranche and the minimum amount that can be invested yearly is Rs. 100. In the most recent version of NSC, the certificate denominations on offer were Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 and Rs. 10000. As of the 1st quarter of 2017 financial year, the interest rate on offer is 8.1%, which is compounded on a quarterly basis. Moreover, there is the facility of premature withdrawal after completion of a 3 year period from date of initial investment or in case of demise of the certificate holder. 

The post office savings schemes mentioned above are but three among the many savings schemes that are currently on offer. In fact, even though PPF, Sukanya Samriddhi, savings account, Kisan Vikas Patra, etc. have not been mentioned in the list of which are best saving schemes in Post Office, their importance cannot possibly be overstressed. This is mainly because the key strength of the post office is its reach and its ability to provide world-class savings schemes and financial services to even the mostly unbanked and often severely unbanked rural population of India.

How to Get your Bank Statement in CSV Format

A CSV format stands for “Comma Separated Values” file that is used to save the data in table structured format such as spreadsheet or database. Files saved in CSV format are plain text containing numbers and letters only. These files are generally used to exchange data, usually when the file contains a large amount. Analytical software, database programs, and other such applications which contain a large amount of information such as contacts or consumer data are usually supported by the CSV format. CSVs files look like a garden-variety spreadsheet with a .csv extension. The data stored in CSV format is often separated or delimited by commas.

Files saved in CSV format can be used in any spreadsheet program such as Google spreadsheets, Microsoft excel, Open Office Calc, etc. CSV format differ from other spreadsheet file types as it cannot have multiple sheets in a file and cannot have rows, columns. Besides this, it cannot save cell or formulas also.

Characteristics of CSV format:-

· Each record has one line

· Fields are separated by commas

· Space-characters next to commas are ignored

· Double quote characters separate the fields having in-built commas

· Double quotes should surround the fields having double quote characters

· Each inbuilt double quote must be characterised by a pair of consecutive quotes

· Double quotes are also used for the fields which contain in built line-breaks.

Advantages of CSV format

When it comes to bank statements, CSV format is considered more convenient as it is easy to understand and can be manually edited. It is simpler for implementing and analysing in CSV format as compared to other formats such as txt, xml or pdf. It is smaller in size hence easy to handle, banks transactions can be easily read and understood under CSV format. If you save your bank statement under xml format, you would need to start tag and end tag for each column and row. But in CSV format, you just need write column headers only once. However, the data saved in CSV format has no distinction between numeric values and texts.

How to save your bank statement in CSV format:

Saving your bank statement in CSV format in very easy, for instance, if you have to save your ICICI credit card statement in CSV format then you just need to follow the following steps:

1. Login to your ICICI net banking account
2. Click on credit cards tab
3. Download your bank’s statement
4. Open the downloaded statement in the spreadsheet program (i.e. pdf format, xml format, txt format, tab format or MT940 format)
5. Click on File tab and choose Save As Under Save as tab, choose CSV (Comma delimited) format. Click Save.