People often sell their bike if they want to purchase a new model or go for a spacious car. Several life events can lead to this decision. Example – promotion, marriage, shifting cities, etc. However, parting ways with your old companion is never easy. After all, riders have an emotional bond with their bikes.

Having said that, practicality soon scores over the emotional aspect and the bike is sold to someone. But, what many people don’t know is that selling your bike and taking money for it is not the end of the road as far as the transfer process is concerned. You also need to transfer the ownership and insurance documents.

Do not procrastinate and complete this process as soon as possible. Also, do not think that it is not your responsibility to transfer documents, it is a shared responsibility between the buyer and the seller, and is beneficial for both. Read ahead to know why and how to go about those processes.

Transferring 2-Wheeler Ownership

We live in a world where things need to be legally documented. Thus, you need to transfer the ownership of your bike to comply with legal requirements. In order to do so, you will need the following documents.

• Bike’s registration certificate
• Taxation certificate
• Insurance policy
• Transfer of ownership form [Form 28]
• No Objection Certificate [Form 29]
• Transfer Application [Form 30]

The last three forms can usually be downloaded from your respective Regional Transport Office’s [RTO] website. You can also visit your nearest RTO branch to get the forms. Once this process is complete, you will formally part ways with your old bike.

Transferring 2 Wheeler Insurance

It is necessary to transfer 2 wheeler insurance in the buyer’s name to stay free of any legal liabilities arising out of the sold vehicle and to keep your No Claim Bonus active. While selling your bike, it might already be covered under a bike insurance policy. Since a bike insurance policy is for the bike and not just for the owner, it needs to be transferred in the new buyer’s name. Otherwise, the ownership documents [after transfer] will show the new buyer’s name but the insurance policy will have your name, leading to a legal issue in case of any unfortunate event involving the bike.

Unlike bike insurance, the No Claim Bonus offered by the insurer is for the owner and not for the bike. Thus, it will not be transferred with the bike but shall be retained by you. You can then coordinate with your new bike’s insurance provider to accommodate your previous No Claim Bonus while charging the insurance premium.

No Claim Bonus is a reward for not raising a claim during the policy period. It is a discount provided by the insurance company to you while you are about to renew your bike’s insurance policy. It increases every year for five years if you do not raise a claim during that five-year period. The discount can go up to 50%. Your No Claim Bonus is reset to zero if you raise a claim. After five years, it remains constant if there are no claims raised. Thus, do not miss out on this discount and ensure that you retain the No Claim Bonus while transferring your bike insurance policy in the new buyer’s name.

Two-wheeler Insurance Online

In case you are switching to a new model after selling your old bike, research a bit about new insurance companies in the market that offer convenient two-wheeler insurance policies at an affordable price. Nowadays, it has become extremely convenient to purchase two-wheeler insurance online. You do not have to visit the insurance company’s branch office and fill forms to avail an insurance policy for your two-wheeler. This might be a good time to switch your two-wheeler insurance provider.

A good holiday is on everyone’s list. Year after year, you would dream of visiting the perfect holiday destination; be it on the sandy shores of Andaman or the glittering high rises of Las Vegas. We all love a good vacation.

They say that there is no such thing as a free lunch or a free holiday. With rising prices and inflation in every aspect, you would need to think twice before you go ahead and plan a holiday. So what can you do at times like these?

Well, cancelling a vacation is not really an option. Why? Because you deserve some time off. So what do you do?

How about a travel loan?

Personal loans in the form of travel loan can be a true boon and your quick fix solution to immediate requirement of funds. Availing a personal loan for travel will give you enough breathing space to plan the vacation you really want.

The travel loan is a type of personal loan especially meant to meet your travel needs. Travel loans can cover all your travel expenses from ticketing, booking accommodations, transportation and on journey costs at your dream destination for a hassle-free holiday experience.  Travel loan empowers you to spread the costs of your dream holiday over a long time making it very light on the pocket. You do not have to make a dent to your savings or retirement fund to enjoy the much deserved holidays.

Travel loans require no guarantor or security. However, adding a co-applicant can increase your loan eligibility, viz spouse, parents, son or daughter. Travel loans upto Rs 25 Lakhs can be availed for your exciting domestic or international holidays.

Can you avail a travel loan?

If you have decided on availing a loan for travel, the next question that has risen is if you are eligible for it.

Apart from your basic documentation including your salary slips, identity proof, and other documents including bank statements you would also need to share your itinerary of travel.

However, there is a key to be eligible for availing a personal loan for travel.  Your CIBIL Score.

CIBIL Score… What’s that and how do you get it?

CIBIL Score is a measure to access your creditworthiness. Just about everyone has a CIBIL score. You can easily find out what your score is. However, not everyone can have a positive of a good credit score.

If you have availed a loan in the past and have been repaid your EMIs on time, have a credit card and not default on payments; and have a healthy financial trend you

A score above 750 is considered credit healthy and higher the score, the easier it is for you to avail that loan to fulfill your dreams! With a good score, you can easily get your loans sanctioned in a record time of 72 – 120 hours.

Can my CIBIL Score help with my travel loan?

Your CIBIL score can actually help you with any kind of personal loan that you are applying for. Your score is indicative of how good you are with managing your finances and if you are credible enough for a loan.

Before applying for the travel loan, it is important to research on the cost of the tickets, costs of accommodations, local sightseeing trips and intercity travel costs as well as the cost of living on a per day basis. After this research, you will get better clarity on the amount of loan that needs to be availed for your ideal holiday.

Travel loans have a fixed rate of interest and work out to be way cheaper than your credit card. With minimum paperwork, availing a travel loan has never been so easy. A good CIBIL Score combined with your capability to pay off the loan easily can assure you of a very attractive rate of interest.

You will also have to remember that any negative impact on your CIBIL score will reduce your creditworthiness. Financial institutions like Tata Capital check the CIBIL score to make sure that the borrower, in this case, is capable enough to repay the loan. It helps them gauge the financial aspect of the borrower as well.

Maintaining your CIBIL Score is the key to successfully availing your personal loan for travel.

• Pay your EMIs on time
• Stick to your credit card limits
• Avoid too many credit cards

These simple steps can help when you need a personal loan the most, including for your travel needs. Before you apply for travel loan, get your CIBIL score report verified for any errors as well.

NBFC’s like Tata Capital offer of travel loans, which offers you a wonderful chance to jet set for your dream holiday, with a loan amount of upto Rs 25 Lakhs. Calculate your EMI on the online calculator along with the interest rate and voila, you have all the answers to the questions that are circling in your head.

Imagine you are going on a date with your girlfriend in your car. You plan to take her out for coffee but she doesn’t know that the coffee shop is outside the city. You smile as she looks pleasantly surprised as you take the car outside city limits. The roads widen, traffic lessens, and the concrete jungle fades away. She seems happy. But, your car breaks down after a few kilometers. The technical flaw is beyond your comprehension and there is no one to assist you. You try asking the locals for help but to no avail. The happiness on your girlfriend’s face turns into irritation as you stand beside her embarrassed and helpless. The pleasant surprise turns into a shock and the date is ruined.

Car breakdowns are a common occurrence and car insurance companies provide Roadside Assistance to help you in case of situations mentioned above. If your car insurance policy has this cover, you can simply call the insurer and let them know about the breakdown. They will send a mechanic at the earliest to take care of the issue and you can breathe easy.

Listed below are common occurrences where a Roadside Assistance cover might come in handy.

Helpline

You might know what’s wrong with your car but might not know how to address the concern. In such cases, you can get on a call with your car insurance company and they will guide you to solve the issue. This way, the problem can be solved immediately as you won’t have to wait for a mechanic to arrive.

Battery Jump Start

Sometimes, a car’s battery dies down and doesn’t start in spite of repeated attempts. Usually, this means it needs immediate attention and needs a jump start in case you are stranded.

Flat Tire

Flat tires are common. They can derail your journey. Roadside Assistance proves helpful in situations where the damaged tire needs to be replaced.

Towing the Car

The mechanic sent by your insurance company might not be able to resolve the issue then and there, and your car might be required to be towed to a garage. In such a scenario, the insurance company shall provide towing assistance.

Refueling

Car’s fuel meter might not show you an accurate picture if it is faulty, leading to stoppage. The car can run out of fuel due to leakage and stop. If refueling works, such assistance can be provided and the leakage can be repaired.

Enhanced Cover

Some insurance providers even go to the extent of providing accommodation for those policyholders who have been stranded due to car breakdown. Some arrange for transportation as well.

How To Purchase Roadside Assistance Cover?

Roadside Assistance cover can be purchased while you are buying or renewing your car insurance policy. Note that such Add-ons can only be purchased with a Comprehensive Car Insurance policy. You just have to add this to your policy while you are purchasing it online. Check if it has been included in your package before making the online payment and verify again after receiving your policy document. Always keep a copy of your car insurance policy in your vehicle. It is mandatory as per law as well as necessary for quick reference in case of raising a claim.

Comprehensive Insurance

Comprehensive insurance coupled with suitable Add-ons such as a Roadside Assistance cover results in the best car insurance in India. Roadside Assistance cover is ideal for new drivers as well as experienced ones. It doesn’t cost much and provides an extra layer of insurance to your car insurance policy. Accidents are unpredictable but taking precautionary measures against them is in your hands.

Cost of insuring a two-wheeler might seem like an additional burden when buying a new bike. But bike insurance offers a financial cover in case of unfortunate accidents.

If you feel that the cost of bike insurance is very high, here is a list of top bikes which cost less for insuring –

#1 Honda Activa 5G

The latest edition of the Popular Honda Activa 5G was launched at the Auto Expo in 2018. The mechanical aspect of this bike has not changed much apart from a change in some features as compared to previous generations. Its bike insurance price is around Rs. 2000. Honda Activa 5G has a new LED headlamp unit and a key slot with remote seat opener. You can buy this bike at Rs. 53,019.

#2 TVS Apache RTR 160 4V

The new TVS Apache RTR 160 4V was launched in 2018. You can choose between two variants of this bike – EFI and Carburettor. You can buy the bike insurance policy for TVS Apache RTR 160 4V for Rs. 2200. There has been a large gap between the launch of current and the previous generation of TVS Apache RTR. Owing to this time gap, the current generation has received a host of updates in features and aesthetics.

#3 Bajaj Pulsar 150 2018

Bajaj Pulsar has been the dream bike for many. It has been one of the most influential bikes in India. Bajaj Pulsar 150 2018 has been launched in accordance with the BS-IV emission norms. Its aesthetics now include faux carbon fiber surrounding and a new side stand indicator. Bike insurance price is around Rs. 2000 for this two-wheeler. Bajaj claims a mileage of 65 kmpl for Pulsar 150 2018.

#4 Honda CB Hornet 160R

The first bike in the Hornet series of bikes from Honda was launched in 2015. The aesthetics of this bike are similar to the Honda Unicorn. It is targeted towards young Indian bike riders who prefer unique and bold designs. You can buy a bike insurance policy for Honda CB Hornet 160R for Rs. 2500. The special editions of Honda CB Hornet 160R bike are also available in the shades of Striking Green and Mars Orange.

#5 Honda Dio

Honda Dio is a very successful lightweight two-wheeler in India. Bike insurance for Honda Dio starts at Rs. 1800. The Deluxe version of Honda Dio comes with golden pressed steel wheels and a digital instrument console with ECO mode. It was launched with a number of dual-tone color options such as Orange, Blue, Yellow and Red on the standard variant and metallic shades of Yellow, Green, Black and Grey for the Deluxe variant.

#6 Aprilia SR 150

Like Honda Activa 5G, the Aprilia SR 150 was also launched at the Auto Expo in 2018. This generation comes mainly with changes in the aesthetics. The Race edition Maze Grey paint comes with the livery inspired by Aprilia’s MotoGP bike. This bike offers better acceleration from a re-tuned CVT gearbox. The cost of insuring Aprilia SR 150 is around Rs. 2200. It also features a new exhaust muffler.

#7 TVS Jupiter

TVS Jupiter competes with Honda’s Activa in the scooter segment. This two-wheeler is loaded with a list of features in terms of aesthetics and performance. These include 12-inch alloy wheels for improved stability, reserve fuel indicator, pass light switch and eco mode indicator. TVS claims a mileage of 62 kmpl for Jupiter. The cost of insuring this two-wheeler is around Rs. 2000. Jupiter appeals to both men and women.

How to calculate Bike Insurance?

You can use an online bike insurance calculator to determine the cost of your bike insurance policy. This calculator is available on the website of most bike insurance companies. To calculate the cost of insurance, submit the details related to you and your bike, set the IDV, buy the required Add-ons and the calculator will generate a quote for you. This is the approximate cost of your bike insurance policy.

The advent of smart phones has led to an evolution in the world of financial technology; right from simplifying banking transactions to trading – everything is away at a click of a button. This has also lead to a significant spike in the number of traders who are resorting to the likes of their smart phone device.

But, why it became essential to make the ‘smart switch’ to the smart phone?

If you are a trader, tracking the markets on the desktop might not be the most feasible thing to do. As you are required to keep a tab on the markets, on the go it, having the trading data on your hand will enable your accessibility & mobility and will be less time-consuming.

Why don’t we look into a few advantages of mobile trading through a stock market app?

• Multi-tasking

As a trader, you are often required to make crucial decisions regarding your investments by comparing multiple sources of information at the same time. Mobile trading app enables you to collect and compare critical information on a real time basis. Share market app, thus, enhances the accuracy of the decisions you make, and there by benefits your investments.

• Live updates

Share market app gives you the live updates of the market situation from anywhere around. It enables transparency as the notifications sent at the same time to every trader. Stock market app enables the real-time transactions and boosts the rate of conversions and benefitting the clients with quick access to various services.

• Safety & Security

When it comes to money, security is a given! And in the current times, with advancements in technology such as login through biometrics and two-step authentication and digital signature; there is a turnaround in the security options available to us. With the help of such share market apps, mobile trading will enable the traders to execute multiple transactions without being worried about the implications of their money being unsafe or squandered.

• Easy interface

One of the major advantages of mobile trading app is that the interface is made easy for anyone to trade. The stock market app functions smoothly on your phone; you can choose the language of your choice which enables you to smoothly wade through your financial transactions.

A desire to purchase a car or a house is always there on our mind, but at the same time, planning your child’s education or your retirement is as important to think about. But the most important question that comes in the mind is: How to invest money and most importantly Where to invest money? Indulging in the habit of investing money to meet certain goals is worth adapting for. Setting short-term investment and long-term investment goals is necessary to diversify your bank balance properly by investing in various instruments and indulging in goal based investing. This practice will give you all the insights you need before you ever ask yourself: How to invest money? And where to invest money?

What are Short-term Investment goals?

Short-term goals are the one’s which are required in a short duration of the time like purchasing a vehicle or repairing the house. Investing money for such instances are raised within short span of time to accomplish these tasks within your estimated period.

What are Long-term Investment goals?

Long-term goals as the name suggests, are the goals for longer duration. Goals like planning for your retirement or your child’s college education are categorized into Long-term goals. The money saved is set aside on a regular basis to meet the requirement for the future.

Types of investments for Short-term goals

1. Systematic Investment Plan [SIP]

Start investing in mutual funds by the means of SIP with a fixed sum of your preference and at the regular intervals amount is deducted and invested in mutual funds. This will help you to serve your short-term goals. SIP can be started with as low as Rs. 500, and for the tenure of minimum 1 year.

2. Equity Linked Savings Scheme [ELSS]

In ELSS, investments are carried are by linking with Equity. ELSS has the lock-in period of minimum 3 years. It can be extended for the long-term goals. It gives maximum returns as it directly linked to the stocks, but it carries higher risk. 

Types of investments for Long-term goals

1. Public Provident Fund [PPF]

PPF is the most common vehicle for investing money to save for your retirement. It is a non-taxable, interest earning savings account. It has a lock-in period of 15 years and with minimum investment amount accounting to Rs. 500/ annum.

2. Unit Linked Insurance Pan [ULIP]

ULIP is a combination of insurance and investment vehicle – stocks, bonds or mutual funds. It has a lock-in period of minimum 5 years. 

3. Tax Saving Fixed Deposit

Tax Saving FD’s are the investment instruments offered by banks and non-banking financial institutions, having a lock in period of 5 years. Depositor can claim a tax deduction under Section 80C of the Indian Income Tax. These FD’s can be held either in ‘Single’ or in ‘Joint’ mode. The interest on tax saving fixed deposit can be reinvested on a monthly or quarterly basis.

4. Bullion Market

Bullion Market is known as the market for trading gold and silver. High risk is involved in storing the physical gold, but the Digital Gold option of – Gold ETF has no risk associated to it as the gold held is in the electronic form. The returns on the Gold ETF is lower than that of actual gold.

Nine PSU banks who are under the close surveillance by the central bank have submitted a recovery plan to the government. The PSU banks have been under the vigilance of the Reserve bank of India due to their poor financial health. They have reportedly submitted a two-year recovery plan to the government. The plan talks about the needed stake sale in the subsidiaries and also about the lessening of the corporate loan book.

It was the Finance Minister Piyush Goyal who had demanded these 11 PSU banks in the last month to offer them with a plan that can strengthen the current finances and also cater to the Reserve bank of India’s capital adequacy rules. Out of the 11 banks, 9 banks have already provided the required report to the Department of Financial Services, as per the latest news.

As on June 15^th, Dena bank share price is Rs. 16.70, Allahabad bank share price is Rs. 44.15 and the UCO bank share price is Rs. 19.20

Those 11 banks which fall under the Prompt Corrective Action [PCA] are:

• Dena Bank
• Allahabad Bank
• United Bank of India
• Corporation Bank
• IDBI Bank
• UCO Bank
• Bank of India
• Central Bank of India
• Indian Overseas Bank
• Oriental Bank of Commerce
• Bank of Maharashtra.

Since they are under the PCA, these banks will have certain restrictions like on distributing dividends and remitting profits. It is possible that the owner may be asked to suffuse capital into the lender. Also, the lenders are not allowed to expand their branch networks and they will have to maintain higher provisions. Under PCA, the management compensation and director fees are also capped.

As per the recovery plan these banks have submitted, they will have to go for the cost cutting, reducing branches size, closing foreign branches, reducing the corporate loan book, and selling the risky assets to other lenders, as per the news.

It was suggested by none other than the Finance Ministry, in the meetings held with the PCA banks, that these banks must think about stake sale in subsidiaries, maintain capital adequacy and conservation buffer. Due to the poor financial state of the PSU banks and also the uncontrolled lending during the Congress rule, FM today said under the current NDA government, we can be hopeful for some real corrective measures which can actually put an end to the banking sector problems.

As per the tweet by the FM, it reads

During the Congress regime, PSU banks gave loans recklessly, which impacted their financial health. Those loans were also restructured to present a distorted picture. The present government has provided the true picture of the health of banks and is now making effort to improve their finances.

It was only in the last year October month that the government had declared its plan of a massive capital infusion of nearly Rs 2.11 Lakh crore which was going to be spread over two fiscals of the financial year of 2018 and the financial year of 2019.

Unit-Linked Insurance Plans, also known as ULIPs combine insurance and investment. You pay the premium monthly, bi-annually, or annually for a period between five and 15 years. A small component of the premium amount is deducted towards administrative, fund management, and allocation costs. The balance is towards insurance protection and investments in various instruments such as bonds and stocks.

You may choose between different financial instruments based on your preference and risk appetite. If you are willing to assume greater risk to potentially earn higher returns, you may invest in equity funds. Alternatively, if you want to reduce your risk and are satisfied with lower returns, you may opt for debt funds.

Similar to mutual funds, the premiums are pooled to form a fund and the same is invested in different financial products. You are allotted units based on the Net Asset Value [NAV]. The NAV may change daily based on the market performance of the various investment instruments.

Because the value of these insurance plans is market-driven, you may question if investing in these is prudent or not. Here are seven ULIP benefits to give you a clearer understanding.

1. Wealth creations

Depending on the financial instruments where the combined funds are invested, these types of plans often deliver better returns with power of compounding. If the money is invested in the stock market, you are able to earn higher returns on your investment when the markets perform well.

2. Insurance protection

In addition to providing an investment avenue, ULIPs include insurance protection. Therefore, it offers financial protection to your family members in case of an unfortunate event.

3. Versatility

These types of financial products provide versatility in terms of switching between different funds. Over a period of time, your life goals change and the flexibility to switch allows you to choose instruments that suit your current financial objectives. Additionally, you may benefit from market movements among different instruments and switch your investments between various products such as cash, debt, and equity. You may choose for pre-determined monthly switches if you do not have the time or knowledge to actively monitor your investments. Under this option, a specific amount is switched on the pre-determined date.

4. Productive long-term investment

If you want to invest your money for a longer period, ULIP insurance is an excellent option. Generally, the market fluctuates a lot in the short-term thereby delivering lower returns or in some instances negative returns. However, when you stay invested for a longer period, you are able to earn better returns on your investments. Therefore, if you want to build wealth to meet specific long-term financial goals such as children’s education, their wedding, and your retirement, these plans are ideal.

5. Tax benefits

Another benefit of these insurance plans is tax-free returns and other tax advantages. The premium paid on your ULIP is tax-deductible under section 80C of the Income Tax Act, 1961. In addition, benefits paid to your beneficiaries are tax-free in case of your demise. Moreover, you earn the higher assured benefits or the value of the investments based on the NAV. Such benefits are also not taxable as per the legal guidelines.

6. Partial withdrawals

The lock-in period for these types of insurance plans is five years. At the end of this period, you have the option of making partial withdrawals based on your financial situation. However, such withdrawals must not exceed 20% of the value of the fund. These partial withdrawals are also tax-free.

7. Top-up investment

Another benefit of these insurance policies is the top-up feature. Under this feature, you may increase the amount of your investment in case you desire. The additional investment amount is also eligible for the tax benefits and exemptions. However, you need to ensure the total investment does not exceed 10% of the total sum assured.

Although there are several benefits of ULIPs, check out some other details which will help us for a better investment planning.

1. Lock-in period

These insurance plans come with a minimum lock-in period of five years. During this period, you cannot make any withdrawals.

2. Market-related

The value of your investment depends on the performance of the financial products. In case of unfavorable market performance, the returns may be lower or even negative in extreme situations.

3. Costly in the initial period

Generally, such insurance policies are more expensive in the initial years. This is because of the policy charges that are applicable during this time.

4. Limited switches

Most insurance companies allow a limited number of free switches between funds. If you exceed this limit, you may have to incur certain transaction charges.

ULIPs combine protection and investment, which means the premium for life cover is higher when compared to term plans. Some people consider these plans to be complicated because of the various fees and charges. You may also not understand the amount that goes towards investment, insurance, and management charges. It is possible that you may not be able to exit your investment at the end of the lock-in period because of a lower fund NAV because of the higher costs in the initial years.

Although there are certain factors we need to take care in these plans, the several benefits make these a popular product. If you want to earn higher returns while procuring life coverage, a ULIP is an excellent option. However, it is important you compare different plans offered by various insurers to make an informed decision.