The rising real estate prices are the reason why many people become reluctant to buy the house of their dreams. Therefore, most people opt for a housing loan to fulfill their heart’s deepest desire. Besides, there are many other benefits that can also be availed with a home loan. This is why people don’t mind going through the lengthy process, because after all, everyone deserves a home.

Here are some of the home loan benefits that one can enjoy

1. No Prepayment Charges – For floating rate home loans, there are no prepayment charges applied. This means that you can pay the home loan amount whenever you have surplus money.
2. Tax Benefits – The Government of India provides tax deductions on the interest paid on home loans and on the principal amount. These efforts are made to encourage more and more people to buy their own houses.
3. Balance Transfer – You can transfer your housing loan to another lender if you are getting the loan at a lower interest rate.
4. Capital Appreciation – One of the best home loan benefits is that you can enjoy the capital appreciation, which becomes visible over time when the rate of the property rises.
5. Repayment Tenure – The repayment tenure for any home loan is the longest as compared to other loans. You can receive a repayment tenure of up to 30 years, which enables you to repay the loan slowly and without any stress.

More on Tax Benefits

As stated in the Income Tax Act under two different sections, home buyers can get many tax benefits on the housing loans that they opt for.

• Under Section 24 – The prospective buyer can avail a tax benefit through deduction on the interest paid on home loan. Under this section, the buyer can claim a deduction of up to Rs. 200,000.
• Under Section 80C – The prospective buyer can avail a tax benefit through deduction on the repayment of the principal of the home loan. Here, the buyer can claim a deduction of up to Rs. 150,000.

Therefore, the total tax benefit that the buyer can get is of Rs. 350,000.

Tax Benefits on Joint Home Loans

If you apply for a joint housing loan along with your family member or spouse, then you can avail the tax benefits under Section 24 and Section 80C separately. On joint home loans, if your ratio is of 50:50 then you can claim deduction on interest paid for up to Rs. 400,000 and a deduction on principal amount of up to Rs. 300,000 maximum!

This will reduce the overall loan for your family considerably. The total deduction will amount to Rs. 700,000. Moreover, if both the entities in the joint loan are in the highest tax slab, then they can avail a tax benefit of Rs. 210,000 which is about double compared to the tax benefit on an individual housing loan.

Gender Benefits on Home Loans

In a move to empower the women of our country, lenders offer many benefits to them over men on housing loans. Some such home loan benefits offered to women are:

1. Higher Loan Application Acceptance Rate – Home loan applications are scrutinized very minutely before they are passed and accepted by lenders. However, women have more chances of getting their application accepted in a short span of time.
2. Lower Interest Rates – Since home loans are usually of a high amount and therefore, even the slightest change in the interest rates can make a considerable dent in the loan amount. Most banks offer housing loans to women at lower interest rates.
3. Lower Stamp Duty – The stamp duty proves to be a burden for prospect house buyers. However, many states in the country offer lower stamp duty for women buyers, whether they have applied individually or as joint owners. A concession of about 1% or 2% is offered to women in many places.

Living life in the fast lane comes with a lot of ups and down. You will face several obstructions and challenges that will make your life difficult. The unpredictability of such events can’t be calculated as they lead to unfavorable twists and turns in life. A personal accident insurance plan ensures that you and your family members get adequate financial help to recover from such tragedies.

Go through these 5 points to understand the nitty-gritty of personal accident covers-

1. What Is Personal Accident Insurance?

Accidents can occur anytime, anywhere! A personal accident policy is an insurance policy issued to cover the risk of death, permanent disability, partial disability or temporary disability in case of accidents. The insured sum is reimbursed to the policyholder in case of disablement or the family members in case of death.

2. What Does It Cover?

Personal accident insurance policy covers partial/ permanent/ temporary disability and death caused due to the accident. It also includes medical expenses owing to the treatment of accidental injuries caused due to accidents. In short, a personal accident insurance will take care of your financial needs in the hours of need.

3. Benefits

An accident can lead to terrifying catastrophic events in one’s life. If you are the breadwinner of the family, then it will be even more difficult for you and your family to manage in such an untoward situation. The financial stability goes for a toss, and the family members have to go through a lot.

Hence, it is advisable to buy a personal accident cover as it offers a host of benefits –

• No Medical Check-ups needed – Personal accident policies do not require medical check-ups for issuance
• High Cover – You can avail a good, substantial cover for
• Group Discounts – If you opt for group accidents cover, you stand to get discounts from the insurance companies.
• Death and Disability Cover – It offers double indemnity for death or disability caused while traveling on public transport
• Life Support Benefit – It provides life support benefits as well.
• Child Education Benefits – Legal and funeral costs are covered with Child education benefits.
• Flexibility – You can opt to buy a personal accident cover for either yourself or for the family.
• Safeguard against the Sky-rocketing Healthcare Costs – With healthcare costs rising about 15-18% each year, within the next five years, the cost of hospitalization will be more than twice. This plan will protect you against this inflation.

4. Who Should Buy It?

Everyone, irrespective of the age or gender should buy a personal accident cover. The best time to buy a personal accident plan is the early 20’s of your life – when you start earning and don’t have many liabilities on your shoulder. Even if you meet with an accident, the insurance policy will take care of the best medical treatment and help you recover and get back on your feet.

5. How Much Is Enough?

Human life is precious! Therefore, you cannot estimate the sum insured which can adequately take care of the needs of your family when you are seriously injured or not around. However, according to the traditional approach, one should have a personal insurance cover worth 100 times of their monthly income. The amount is said to be enough to cover hospitalization expenses, medical costs, and other obligations and liabilities in your life. For example – if your monthly income is Rs. 20,000, then you should have a personal accident cover of at least Rs. 20, 00, 000/-.

If you are looking forward to buying a personal accident insurance policy for yourself, then you should research various plans online. Consider going through their benefits, features, terms, and conditions and only then decide to buy. From the information mentioned in the blog, you are fully equipped with the necessary knowledge of personal accident insurance. So, what are you waiting for? Buy a personal accident insurance plan immediately and lead a worry-free and relaxed life. You owe it to yourself as well as your family members!

The stock market is an excellent investment option if you want to earn high returns albeit at a higher risk. In India, the number of individuals investing on their own in the stock market has increased. This trend has been particularly increasing since the availability of the online trading and banking services.

To trade in the equity markets, you will need a dematerialization or demat account. This type of account allows you to hold your shares, mutual funds, securities, and other investments in an electronic form. The account is opened with one of the several depository participants (DPs).

A DP acts as an intermediary between you and the depository. In India, there are two depositories, namely Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL).

You may open your demat account with any of the DPs. Here are five factors that must be considered when you open such an account.

1. Brokerage

In addition to the dematerialization account, a trading account to buy and sell the securities is required. The brokerage is the primary source of income for the service providers. It is determined by the frequency of your trades. Therefore, choosing a competitive brokerage if you are going to be an active trader is recommended.

2. Annual maintenance charges

The DPs levy an annual maintenance charge. It is important you check these charges and negotiate the same prior to opening the account.

3. Trading platform fees

Most service providers offer their own software that facilitates buy and sell trades on your behalf. While some of these providers levy additional fees others may include it within the overall package. Seeking clarification on such trading platform fees and comparing these among the different service providers before you make your decision is advisable. In addition to the charges, it is crucial you choose a provider that offers an easy-to-understand trading platform.

4. Background of the service provider

The track record of the broker should be checked for their authenticity, reliability, efficiency, and capabilities. You can always search the Internet for feedback from existing and past account holders to know more about their services. Taking the time to conduct extensive research will help you avoid any difficulties in the future.

5. Financial institutions

Several reliable and reputed financial institutions offer three-in-one account to attract more customers. These accounts provide you with a complete package of different financial services. You might want to open your demat and trading account with such an institution to make it convenient and simple.

You must have a demat account to trade on the stock market. Most banks and institutions offer such services and conducting your research will help you make an informed decision. It is recommended you do not make a hasty decision that may have severe implications in the future.

Living in times when the food, air and water are exposed to supreme levels of contamination, the risk of life-threatening health hazards is deemed to be alarmingly high. Stress, sedentary lifestyle, unhealthy dietary habits and severe anxiety are among the key factors that are encouraging chronic health disorders and fatal diseases in people. In a critical time as this, it is imperative to prioritize one’s health before everything for the sake of a secured and independent future. This is where health insurance plays an important role in our lives.

A good health insurance plan will offer protection to you and your family members against the uncertainties that arise due to lack of funds for proper treatment.

What are the popular choices of health insurance in each stage of life?

Primarily there are four different types of health coverage plans that take care of the requirements of the people of different age groups. It is extremely crucial that a person invests in a sound health scheme to avail its benefits at the time of need. The primary focus of people during their peak years in work life should be to protect the resources and income of their loved ones and their own. While in the latter half of their life, their focus should be driven towards planning their life after retirement and ensuring the financial security for the same.

The following are the different types of health insurance classified as per the changing stages of life.

1. Self-employed, small-scale employer and adult

Personal health insurance – This insurance plan includes all the health-related expenses that are usually not covered by a typical provincial or employer insurance plan. This mostly covers areas of personal medication, dental health and other health and wellness oriented-needs. The benefit is payable at the time of meeting the eligible expenses under the claim. Find out if your existing personal health plan is inclusive of cardiovascular ailments or if you need to avail a high cholesterol health insurance plan.

2. Working adult

Disability insurance – This plan intends to replace a portion of your income at a time when you are unable to work because of any form of disability.  The benefit is payable when the person is incapable to work as defined under the chosen coverage. Any adult whose lifestyle relies heavily on their constraint income should avail the benefits of disability insurance to safeguard their livelihood even in disability.

3. Children and adult

Critical illness insurance – This insurance is designed with the aim of helping the insurer and their loved ones to meet the expenses of treating a life-threatening disease.  The insured can claim the benefits of the policy when they are diagnosed with a critical disease and meet the requirements of the coverage.

The insured avails a sum for meeting their medical treatment. This is not an age-specific insurance plan; both children and adults should get a critical illness insurance coverage to be prepared to meet the uncertainties of life.be two steps ahead of critical illness related to heart by opting for the best of medical insurance plans for high cholesterol today.

4. Middle-aged and older people

Long-term care insurance – This plan is designed to cover your expenses for an extended period of time, especially at an age when one requires other’s assistance due to reduced mental and physical abilities. This can be deemed be as the perfect retirement planning and a step for gaining control over assets. Working class people who are thinking to start their retirement planning should consider this sort of plan for a financially secured life after their retirement from work.

More people are suffering from cardio-vascular diseases these days, why don’t you be prepared for the situation by opting for one of the best medical insurance plans for high cholesterol. Start with an investment in a high cholesterol health insurance plan if you are concerned about your cardiac health.

You can also browse through various health insurance plans online and compare the best ones to find out which plan offers the best and broadest health coverage and at what cost. Consult a trustworthy and qualified insurance advisor to avail the best health insurance scheme that not only suits your finances but also prepares you to meet any health-related emergencies.

References – https://www.livemint.com/Money/r946kZa4ZiqNghWh6GUP1H/4-financial-life-stages-and-how-to-plan-for-them.html

Thinking of buying a two wheeler but not sure when to buy one or what is the best time? We are here to clear the confusion. While there is no harm in buying a two wheeler whenever it is you wish, if there is a good season one must choose, post Monsoons are a great bet.

The end of monsoons mark the start of the festive season in India. From Navratri to Diwali to Christmas, the whole country is in a festive mood. To make this mood merrier, companies come up with huge discounts on their products. Two wheeler sales benefit greatly from this. There are huge discounts during Diwali which you can take advantage of. Besides, avoiding the monsoons allows for easier maintenance and lesser hassle. Here is how you can use your finances to buy your dream two wheeler.

• You can start saving from your monthly income
• You can ask for a loan from friends or family
• You can take a two wheeler loan from a lender

If you opt for a two wheeler loan, you can save on a lot of things. Here’s how.

• Availing a two wheeler loan is no longer a tedious process. With the advent of apps, you can apply and get your loan money in your bank account in minutes.
• There are lenders who provide you a loan for a higher amount than the price of your two wheeler
• If you take a loan for a higher amount, all your expenses such as the registration, insurance, buying accessories etc. are taken care of
• Many lenders do not charge you a prepayment fee if you want to pay your loan before the tenure ends
• You do not need to keep your two wheeler as a collateral or security
• Many lenders give you attractive EMI options
• There is zero paperwork in case of an online two wheeler loan.

As technology is bringing about comfort in people’s lives, many processes such as taking loans have become easier. Online applications have made it easy to avail loan and disbursal of money into your account in just a few minutes. If there are so many positives then why not buy a two wheeler soon?

Travelling to the USA is a coveted dream that many possess. The country is full of beautiful places, filled with history and has some of the best known national parks. It’s one of those few places that is best for a solo trip, a family vacation or even a honeymoon. The United State of America has it all!

However, travelling to the United States does not come cheap. This is an expensive as well as a rather time-consuming dream to fulfill.

Planning a holiday to the US will take a lot of time. This is especially true when it comes to planning the trip itself. Now, you must be wondering why we are not talking about the financial aspect of your travel to the United States. Well, that’s because you can avail a travel loan for that.

Your travel loan is your personal loan for the purpose of sponsoring your travel and stay. Availing a holiday loan is rather easy, actually. NBFC’s like Tata Capital are known for their personal loans for travel. The entire process is extremely easy and hassle-free.

You don’t even need tons of documents to apply for this kind of a Travel Loan at Tata Capital. All you need is your basic KYC documents and passport size photographs to apply, and your personal loan will be disbursed in less than 72 hours. It’s faster than getting a visa approval!

If you are worried about the EMI, then before applying for the loan, check a personal loan EMI calculator to get an idea about how much you might be needed to repay per month once your loan is sanctioned. A travel to the US could be a costly affair so take into account all kinds of foreseeable situations and expenses before you arrive at the final figure which you want to take as a personal loan for the purpose of your vacation.

Like we said, getting your finances in order will be the easy aspect of your trip. Now let’s take a look at how you should go about planning the trip:

Visa matters

Getting a US visa is not easy, and requires a lot of effort in terms of documentation, formalities, fixing an appointment and giving the visa interview.

An Indian travelling to the United States for tourism needs a visitor visa or B-2 visa. The maximum duration of stay on a B2 visa is six months. The application fee is around 160 dollars or Rs 11,803 approximately. You can log on to the US Travel docs website to check the detailed procedure. You can then fill the DS-1600 application form, submit it and pay the visa fee online. Next, you have to schedule an appointment at your desired consulate, and once you are given the date you have to visit there for your biometrics on one day, and finally the visa interview on another day.

Booking the tickets

The next step is to book a ticket. If saving cost is your idea, you can book cheaper tickets starting Rs 35,000 to Rs 40,000, but be prepared for multiple layovers and a total travel time of more than 55 hours. But why be so tight-fisted when you have already taken a travel loan? A 55-hour journey is no easy feat, and by the end of it you will be tired beyond imagination and will end up sleeping and wasting two more days at your hotel in the bargain.

So be a little generous and take a direct flight or one with a single layover and a total duration of 15-17 hours. It will cost you between Rs 60,000 to 70,000. Your two-way travel will be sorted in less than Rs 1.5 lakh.

Finding accommodation

Research well and look around for good deals. These days’ homestays and shared apartments are a hit compared to high-end hotels. You can either book one of them or simply go the tried and tested way and book a plush hotel.

Read up reviews of the place, look for safety, convenience, proximity to bus stops and train stations, closeness to city centers. If central regions are costing you a bomb, find a quaint place in the downtown, if you don’t mind the travel. Research, research and research until you seal the deal. Once you have a fair idea about the per night charges, you can then add up your nights to come to a tentative figure about your accommodation cost.

Take this into account when you apply for the personal loan for your holiday because right after airfare, what takes up the maximum amount of your expenditure is hotel accommodation. Considering it is the US, it’s safe to assume that it is not going to be a cheap deal unless you have discovered a couch surfing arrangement.

Crafting the itinerary

If you have taken a holiday loan, then the sky is the limit as far as your travel destinations are concerned because you don’t have to bother about the expenses at every step. However, before you start, make a rough plan about the cities you want to stop by and what all you want to do there. Research by reading through various blogs, reviews and guides. Book tickets in advance online for art galleries, museums, studios and parks wherever possible so that you don’t have to stand in queues. Read up on the dos and don’ts of every place you wish to visit. Enroll in online forums on social media, and take tips from fellow travelers.

If it is your dream to visit this coveted country, then you should not let anything, especially your finances, stop you. A simple check on the internet will give you an idea about travel loans and with institutions like Tata Capital, it becomes easy to apply and avail the loan.

The business world has its own complicated language which is better understood by experts. The common man is not well-versed with many business jargons, and this could lead to confusion while applying for a business loan. Some terms within the business loan context are easy to understand. However, there are many specific terms that can be easily misinterpreted or misunderstood.

Familiarity with some of the terms is necessary before you apply for business loan. Following are some of the loan terms with their corresponding meanings:

• Amortization – It refers to the manner in which the borrower pays off his lender. If your loan is amortized, it means you have to make equal amounts of cyclic and timely payments regularly till your whole loan, including the interest amount, is paid off in full.
• Blanket lien – If one of the conditions of your bank loan is blanket lien, it implies that the bank can confiscate any of your business properties if you fail to repay the loan.
• Cash flow statement – It simply refers to the inflows and outflows of the cash transactions of your business. It is a statement regarding your income and expenses within a given period.
• Consolidation – When you pay off multiple loans by utilizing the money obtained from a single loan, it means you have consolidated your debts. This will help you avoid additional interest and manage your finances better.
• DSCR – The full-form of DSCR is Debt Service Coverage Ratio. It is used to gauge whether your business has the resources to pay off the debt. You are safe if your DSCR score is above 1.
• Entity type – This refers to the legal category your business falls under. When you classify your business as a particular type, corresponding laws will apply.
• Five C’s – These are five conditions that you need to fulfill before you apply for a bank loan for business. They stand for character, capacity, capital, conditions and collateral.
• Insolvency – It’s a state in which the borrower is unable to repay debts.
• Long-term – It generally refers to debts whose repayment period is more than one year.
• Maturity – When you have completely paid-off your loan, it means that your loan has matured.
• Prepayment Penalty – It’s a fine that you will be required to pay if you pay off your debt before the scheduled payment cycle.

These are just some of the jargons you may come across while applying for a loan for your business. However, it is recommended that you familiarize yourself with as many terms as possible, so that you can better understand the loan agreement thoroughly. If you still need a little help, you can always reach out to your bank manager. Only once you’ve understood all the terms and conditions should you agree to the loan.

Due to the easy availability of finance from banks and Non-Banking Financial Companies [NBFCs], numerous individuals resort to external borrowing to meet their credit needs. There are various types of loans available in the market that cater to the diverse financial needs of individuals.

One such type of a loan is a personal loan. Such loans, also known as unsecured loans, may be used for numerous purposes such as medical emergency, domestic or international travel, home purchase or repair, higher education, purchase of a new vehicle, or for debt consolidation, among others. You may borrow an unsecured loan and receive the much-needed financial support during a cash crunch.

Besides the numerous benefits offered on personal loans, you may also enjoy tax benefits on the borrowed amount. However, an important aspect to note is that you may claim deductions on the repayment amount only if the loan amount is utilized for your housing requirements.

Stipulations of the Income Tax Act

According to Section 24(b) of the Income Tax Act, 1961, you may enjoy tax deduction on the loan amount used for the purchase of a residential property or for renovation towards the same. You may also claim tax benefit if you have utilized the borrowed amount to make a down payment towards the purchase of a home. Other valid expenses that may be used to claim tax deduction include repairs of your home, reconstruction, or for renovation.

A very important point to keep in mind is that you may claim tax deduction only on the interest paid on the loan, and not on the principal amount. This means that if you have borrowed a loan of Rs. 5.25 Lakh with an interest of Rs. 1 Lakh, then you may reduce your tax liability up to the interest amount, i.e. Rs. 1 Lakh.

Another point to consider is the limit of tax deduction allowed. In case, you have given the renovated house on rent, there is no limit on the amount that you may claim as a tax deduction. However, if the house is self-occupied, you may enjoy tax deduction of up to Rs. 1.5 Lakh.

You may also note that tax deduction on the interest amount cannot be claimed in case you have purchased the property at the construction stage. You may do so after the construction has been completed. Additionally, the house must be ready to be occupied within three years of borrowing the loan.

You may, therefore, utilize a personal loan for the purpose of purchase of a home, repairs, and renovation, and enjoy tax benefits of the interest component. In order to avoid any hassles, you may preserve all related documents that will help establish the end use of the loan. By doing so, you may reduce your tax liability largely.