7 financial must-dos to consider for your family’s wellbeing before it’s too late

7 Financial Must-dos to Consider for Your Family’s Wellbeing Before it’s too late

Whether its keeping a record of your investments or providing for your family’s secure future, here are some financial decisions you should make before it becomes too late.

Though we commonly believed that one should always be prepared for the worst, when it comes to the topic of death, we often overlook the simplest financial wisdom. This leads to creating havoc in the lives of your loved ones. Here are some practices you can adopt today to help your family during an unfortunate event.

  1. Record All Your Investments and Bank Accounts

You may have quite diverse portfolio with a various kinds of investments, but you may forget to keep a centralised record of all of these for the benefit of your family in case of the worst. The same holds true for all the bank accounts you may have, wherein it is essential that some members of your family are beneficiaries or joint account holders. That way it is relatively easier for your family to get their affairs in order after your passing.

  1. Maintain an up-to-date Will

You must be sure to create and maintain a legal will that lists all your assets along with the family members you want them to be allotted to. Apart from this, it is also important to let your family know where your legal will may be found (e.g., in your bank account) and the lawyer who helped you create it.

  1. Keep a Record of Your Employment Details

Similar to your investments, it is important to ensure that your family has access to all record of your employment details. This is so they may be able to contact your colleague during an emergency. Additionally, it gives them the information of any benefits you may receive from your job that directly affects them such as family health insurance plans, outstanding vacation pay, bonuses etc.

  1. Life Insurance Policy Details

For those who have taken life insurance policies to ensure the financial health of their families after their passing, it is advisable to share the documentation and necessary information of how to cash in on that policy with their loved ones. Recording and sharing the name and contact of the agent or financial advisor who issued the policy is also prudent.

  1. A Record of All Liabilities

As important as it is to maintain documentation about your assets, it is equally important to keep a list of your liabilities handy. Unpaid debt is often the biggest source of stress for your family after your passing. It is thus important to make them aware of loans and outstanding credit, amongst other debt, so they know how to deal with them when the time is right.

  1. Business Partners

If you own or operate a business, it is important that immediate family members be kept in the loop about key business contacts and partners. This could be for both general emergency purposes as well as being aware about all outstanding creditors and debtors.

  1. Providing for the Future

Apart from maintaining records and documentation for information purposes, there is the added worry of ensuring your family is provided for after your demise. There are a number of options for this very purpose, ranging from life insurance to mutual funds and FDs, maintaining an emergency fund and more. Ensure that your family members are the beneficiaries of your investments and plans—and have the information they need to make the most of it.

Bajaj Finserv offers a wide variety of investment options that could help safeguard your family’s future financial health. To find out more visit:

Home Loan Reset Clause

Did You Ask Your Lender About Your Home Loan Reset Clause?

Planning to apply for a Home Loan to buy your dream home? Take a moment and go through the Home Loan agreement carefully as we generally miss important points thinking that signing the agreement is a mere formality. Once such detail to avoid missing is your Home Loan reset clause.

What is a Home Loan Reset Clause?

A Home Loan interest rate reset clause allows the lender to review the interest rates and reset it after the end of a certain number of years depending upon the current or prevailing interest rate. This clause allows lenders to increase interest rates if the market rates increase in the future.

Why is This Clause Included in the Home Loan Agreement?

There are two types of interest rates on Home Loans i.e. fixed rates and floating rates. Earlier, borrowers usually opted for fixed-rate loans instead of floating rate loans even though the interest rates on fixed loans were higher than the latter. This was because fixed interest rate Home Loans were isolated from any interest rate changes during the tenor of the loan. This allowed lenders to charge a little higher interest rate on fixed loans in comparison to floating rates to compensate for the additional risk of increasing market rates.

But the continuously rising interest rates due to market trends were piling up losses for lenders on existing Home Loans. Consequently, lenders started including the reset clause in the Home Loan agreement. This allowed them to make changes in the interest rates in the future. This makes fixed rate Home Loans equivalent to floating rate loans after a certain time, and it is important for every borrower to know this.

How Does It Work?

The reset clause gives the lender power to revise the interest rates on long-term loans after the elapse of a mentioned period. This clause acts as a hedge for lenders against any rise in market interest rates in the future after the loan is sanctioned. It enables lenders to increase interest rates on existing loans to reflect market rates.

Home Loans with a reset clause are generally mixed rate Home Loans, wherein the interest rates remain fixed until the specified tenure (usually 2 to 4 years). After the expiry of this tenure, the loan gets converted into a floating rate loan.

The fixed rate that is charged initially is usually 10 to 20 bps higher than the prevailing floating interest rates. There are various factors like the money market conditions, prime lending rates, etc. that affects the interest rates in future. Thus, if you are planning to take a Home Loan that has reset clause, you should prepare yourself for the increase in the interest rates in future.

Other Conditions of the Reset Clause

There may be conditions linked to this clause, for e.g., the hike in interest rates may apply to borrowers taking a loan above certain amounts or above certain tenure. Even the period for the review and hike in the interest rates will be mentioned in the loan agreement, so read it carefully.

Every borrower should thus carefully go through and understand the implication of Home Loans with a reset clause and compare it with a floating rate Home Loan before making any decision.

Apply for Home Loan Online Check your Home Loan Eligibilty

Did you know? You can take a joint personal loan

Did you know? You can take a joint personal loan

A personal loan is a multi-purpose loan that does not require any collateral. You can use a personal loan to meet any type of personal or business expenses. These two reasons make a personal loan a very sought after credit product.

For those unaware about a personal loan must know that there are some eligibility criteria:

  • Age – you must be at least 21 years and above to apply for a personal loan.
  • Occupation – your occupation determines your income and consequently, your repayment capacity. Thus, a personal loan is only offered if you are gainfully employed. You should be a salaried or a self-employed individual having an earning record to qualify for a personal loan.
  • Income – there is also an income criterion to apply for a personal loan. Every lender prescribes a minimum level of monthly income of the borrower. If your income meets this minimum level, you can avail a personal loan easily.

How is the loan issued?

Since a personal loan is an unsecured loan, lenders allow you a loan based on your income and repayment capacity. Your occupation is judged, income level is assessed and the repayment capacity is calculated. Based on these parameters, a loan amount is finalised. For instance, you apply for a personal loan of Rs.5 lakhs. Before sanctioning this loan, the lender would determine whether you are eligible to avail such a quantum of loan. Your occupation and income details would help the lender determine your eligibility. If you qualify, Rs.5 lakhs would be sanctioned as a loan. However, if your eligibility is low, the lender might allow only Rs.3-4 lakhs as a loan.

What is a joint loan?

Loans which are applied jointly with two or more persons are called joint loans. In a joint loan, all the applicants are considered as borrowers and their combined eligibility parameters are judged to sanction the loan.

Applying for a personal joint loan

You can apply for a personal loan jointly with your spouse or parent. When you apply jointly, you can increase your eligibility for the loan and thus avail a higher amount. Both you and the joint applicant (spouse or parent) would be responsible for paying off the loan.

Advantages of joint application of personal loan

Applying jointly for a personal loan has its benefits.

  • You can get a higher amount of loan when you apply jointly. Since lenders combine the eligibility criteria of the other applicants, the joint income level increases. A higher income of the borrowers makes lenders lend a higher amount of loan. So, if you want to get a higher value of the loan, apply jointly.
  • If you have a poor credit score and want to get a personal loan, you might find the job difficult. Even if the lender allows you a loan with bad credit, the interest rates on the loan would be very high. In case you apply jointly, a good credit score of the other applicant implies that you can easily get a personal loan. Also, the rate of interest could be lowered.

Disadvantages of joint application of personal loan

While applying jointly for a personal loan has its advantages, there are disadvantages too.

  • All the borrowers are responsible for paying the loan. For example, a couple has availed a joint personal loan. If the husband dies before repaying the loan, the wife would face the burden of loan repayment as she was also a joint borrower.
  • As a joint borrower, you cannot get out of the loan before the loan tenure is over.
  • If there is any default in repayment of the loan, your credit history would also be hampered as you are a joint borrower.

So, before applying for a joint personal loan, understand its benefits and drawbacks. Make a joint application if necessary. If interested, you can check your loan eligibility at https://goo.gl/kFnGng before you decide to apply for a joint personal loan.

What ‘derogatory’ means on your credit report?

What ‘derogatory’ means on your credit report?

Every lender, whether it is a bank or a financial institution, insists on your Credit Information Report (CIR) before sanctioning a loan. Your credit score, as it is popularly called, is an important eligibility criterion when applying for a loan. Your credit report is also important because the lender wants to find out whether or not there are any derogatory remarks in your credit history. If there are any derogatory remarks, your loan application might be in jeopardy even if you have a good credit score.

Do you know what are derogatory remarks?

What is derogatory remark in the credit report?

‘Derogatory’ literally means belittling or deprecatory. Thus, a derogatory remark in your credit report means a bad remark about a particular loan or credit. Your credit report lists all your prior loans or credits which you have availed. Against each loan or credit, there is a remark depicting the payment history of that particular loan or credit. A derogatory remark is a negative remark showing that your credit history is bad.

What are the different types of derogatory remarks which can be found on a credit report?

There are various kinds of derogatory remarks which are found on your credit report with respect to each type of credit you had availed in the past. If you do not know the different remarks, you might miss out on their importance. So, here are the different types of derogatory remarks which you can find on a credit report:

  • DPD – This is the most important column in your credit report. DPD stands for Days Past Due. It shows the number of days the repayment was due beyond the actual repayment date. In the DPD column, if there is a remark showing ‘000’ or ‘STD’, it means that there was no default. STD remark means that the loan repayment occurs within 90 days. However, any other remark entered in the DPD column besides ‘000’ or ‘STD’ would be considered as a derogatory remark. Such derogatory remarks include SMA (a special account which shows that the standard account is moving towards a sub-standard one), SUB (shows a sub-standard account wherein repayments are being made after 90 days), DBT (is a doubtful account which has remained as a sub-standard account for 12 months) and LSS (is an account in which there is a loss and the account is not collectible).
  • Suit Filed – this is a very grave derogatory remark on your credit report. Suit filed denotes that you have defaulted on your loan and the lender has filed a lawsuit against you to collect the outstanding loan. The reporting of suit filed, as per RBI norms, is divided into four categories – No Suit Filed, Suit Filed, Willful Default and Suit Filed (Willful Default).
  • Post (WO) Settled – this means that the lender has written-off an existing loan account and after writing off the account, the loan is settled between the lender and the borrower. Moreover, this remark also states that the amount of settlement was lower than the actual balance of the outstanding loan.
  • Written Off (WO) – another bad remark, this denotes that the lender was not able to collect the repayment of the loan from you and so the loan account was written off by the lender.
  • Account purchased and settled – this remark shows that a particular loan account was purchased by the lender and the lender and the borrower have settled the loan amount.
  • Account purchased and written off – this denotes that the lender purchased the loan account from another lender (a bank or a financial institution). After the loan account was purchased, the new lender has written off the purchased loan.
  • Written off and sold – the meaning of this remark is that the lender first wrote off the loan account and then sold the loan account to another lender (a bank or a financial institution).

Derogatory remarks are an important consideration in your credit report. So, understand what does derogatory mean on a credit report so that you can understand your report better. Also try and clear up derogatory credit to avail a loan. However, there are personal loans with bad credit which you can avail if you need an urgent loan. If interested, you can visit Bajaj Finserv Personal Loan and find out more about personal loans.

Do you know the effect of a derogatory remark on your credit report?

Do you know the effect of a derogatory remark on your credit report?

Satish, a software engineer from Mumbai, had applied for a home loan from various lenders but faced only rejection. He had a credit score of 800 yet his loan applications were rejected. He couldn’t understand the reason. He spoke to his banker friend who told him the reason for his application rejection. It was then that Satish found out that the reason for his loan rejections was a derogatory remark in his Credit Information Report (CIR). He had availed a personal loan ten years back and defaulted on its payments for a long time after which the loan was settled on a lower amount. The credit report mentioned this negative remark which was making lenders reluctant to lending a loan to Satish.

Here’s what a derogatory remark is and how it can affect your score:

Derogatory remark

A negative remark in your credit report is called a derogatory remark. Your credit report lists all previous and existing credits which you have on your name. If you have a bad credit history pertaining to any particular loan or credit, such history would be reflected negatively in your credit report in the form of a derogatory remark.

How does it affect your loan eligibility?

Whether or not you would get a loan depends on the remarks mentioned on your credit report. Though a good credit score is important, it is not sufficient. If, against a good credit score, you have a derogatory remark in your credit report, there are high chances that your loan application would be rejected. Just as Satish found out to his regret, a derogatory remark of his earlier loan being settled adversely affected his loan application eligibility.

Which remarks are considered derogatory?

There are many types of remarks mentioned on your credit report which are considered derogatory. Some common remarks include the following:

  • Suit Filed – a seriously damaging remark, Suit Filed means that you didn’t repay your loan and the lender had to file a suit against you to collect its dues.
  • Written-off – when the lender writes off your loan account because of being unable to collect the outstanding amount from you. It is called a loan written-off.
  • Post (WO) Settled – this means that the lender wrote off your loan and then the loan was settled between you and the lender at a reduced amount.
  • Adverse remark for Days Past Due (DPD) – DPD is the number of days beyond the repayment date for which the repayment is due. If you repay your instalments within 90 days, it is categorized as STD (Standard). A STD remark against the DPD is good. However, if you get any other remark, like SUB (substandard wherein repayments are made after 90 days), DBT (doubtful wherein your account is considered substandard for 12 months) or LSS (where your account is uncollectible and considered as Loss), it would be considered as a derogatory remark.

Where you can find your credit remarks?

The ‘Account Information’ section of your Credit Information Report (CIR) shows the various remarks, favorable or derogatory. This section contains all your loan account details, the types of loans you have availed, the type of ownership of your loan, the loan account opening date, current balance, if any and your repayment history.

Is there a way to correct the derogatory remarks in the credit report?

Any derogatory remark which you have in your credit report stays there for quite a long period of time. As long as the remark stays, it jeopardizes your chances of availing a loan. So, try and avoid causing any type of derogatory remarks on your credit report by making timely repayments on all loans which you avail.

The Final Word

Satish got his lesson. He swore never again to default on his loans anymore to avoid any additional remarks in future. A derogatory remark is a crippling factor in your credit report. It affects your loan eligibility adversely and should be avoided at any cost. Though you might get a personal loan with bad credit, a derogatory remark might be a drawback. To find out whether you can apply for personal loan, you can check your personal loan eligibility. So, in the meantime, be wise and take precautions to avoid any such remark in your credit report.

The best funding options when you are short of cash

The best funding options when you are short of cash

Ritika wanted to open her fashion boutique. Though she poured all her life savings in her business venture, she was still short of cash. She needed funds to engage labour and also for buying the raw material for her designer apparels. She was looking for sources of securing finance so that she can start her boutique business at the earliest.

How many times have you faced a similar problem? Cash shortage is a very common occurrence.  

There are various funding options. They come to your rescue when you face a shortage of cash. Each option has its pros and cons. But, do you about these funding options? Let’s find out –

  1. Bank overdraft

Overdraft is a funding facility available to you if you have an account with a bank. Based on the transactions done in your account, the bank allows you to withdraw money in excess of your balance. The bank charges an interest on the amount overdrawn. Moreover, there is a limit to the amount of overdraft extended by the bank.

Pros

o   Overdraft helps in meeting temporary cash shortages

o   The interest rates are low and so availing funds through overdraft is cheaper than taking loans

Cons

o   Overdraft facility is available only in a Current Account

o   There is a limit restricting the amount of overdraft available

  1. Credit cards

The next most popular source of availing credit is credit cards. Credit cards let you make a transaction, the payment for which is done later. You can, thus, buy goods and services on credit and pay for them later when the credit card bill is generated. Credit cards have a billing cycle which usually ranges for a month. If you buy anything on the first day of the billing cycle, the credit card bill for the purchase would be generated after 30 days. Moreover, the bill would allow you a payment period up to 20 days. Thus, you can avail a free credit for 50 days or more by using a credit card. Moreover, many credit cards also allow you the facility of converting your big purchases into affordable EMIs. Thus, in a cash crunch, you can buy a product using a credit card and pay for it later or in monthly instalments.

Pros

o   Credit cards allow you to make transactions without paying immediate cash

o   You can convert big purchases into smaller EMIs

Cons

o   Though credit cards allow you an interest-free credit period of up to 50 days, if you default on your payments beyond this time, interest is charged and this interest is very high

o   Credit cards also have other types of charges which increase your expenses

  1. Line of credit

A line of credit is like a sanctioned loan. Banks and financial institutions allow borrowers a limit up to which they can withdraw funds as a loan. This limit is called the line of credit. However, unlike loans, interest is charged only on the amount of money utilised from the granted line of credit.

Pros

o   It is a simple facility which allows you a credit limit

o   It is cheaper as the interest rates are low and are charged only on the amount used

Cons

o   It is a temporary source of finance which has to be repaid within a short duration

o   There is a limit to the amount of credit available in this facility

  1. Personal loans

Personal loans are the most common and the best source of finance. These are multi-purpose loans which do not require any collateral security. The repayment tenure is high (usually up to 5 years) and many financial institutions also allow flexible repayment options.

Pros

o   The loan can be used for any personal or business requirement

o   No collateral security is required

o   The loan is easily and instantly available

Cons

o   Being unsecured, personal loans usually have a high-interest rate.

o   The amount of loan depends on the repayment capacity of the borrower.

So, these were the sources of finance available if you are short of cash. A personal loan is the best source as it is easily available and the loan has longer repayment tenure. You can use a personal loan to buy luxury items too. Banks and financial institutions also allow personal loan special offers to lure borrowers.

You can apply for a personal loan online. The online medium also provides an EMI calculator by which you can find your repayment amount. Moreover, you can check your personal loan eligibility before you apply for it. Ritika got a personal loan to open her boutique. You can too!

A handy guide on Patient and queue management software solutions

A Handy Guide On Patient and Queue Management Software Solutions

It is very common nowadays to find hospitals, clinics and other medical centres offering online services. From booking appointments to checking the test reports, everything can be done online. The online patient management systems are being used by hospitals and clinics widely. But why does this happen and what are the advantages of using a medical office software? Take a look at this article to get all the answers:

What Is a Patient Management System?

Patient management system or hospital management software is a type of software that makes patient management simpler. It reduces human effort and the patients as well as the employees benefit from this. The OPD appointments, the hospital bookings, the availability of the doctors, the viewing of the medical reports and the generation of the bills, everything can be done remotely.

What Is EMR Software and How Does It Help?

EMR, or electronic medical record, refers to the digital storage of a patient’s medical files. All the information regarding his illnesses, health history, past checkups, etc is stored online with the help of the EMR software. This makes the reports instantly available and also keeps them safe from losses and misplacements.

What Are the Advantages of the Patient and Queue Management Software?

Let us take a closer look at some of the benefits of using a patient management system.

  1. Saves time: Previously, the patients had to physically go to the hospital or clinic and book an appointment. At times, the appointment had to be taken a couple of days in advance and that resulted interest the patients having to make multiple trips to the medical centre. However, with the patient management software, the job has become simpler and you can book the appointment while sitting at home with the help of a few clicks.
  2. Convenience: A clinical management system makes it very convenient for the patients as well as the clinical staff. As a patient, you can look at the availability of various doctors at various locations in just a few seconds. You can then book services of your choice, at your preferred destination and time. This is very beneficial. A clinical staff also benefits from this too since the process is fully computerised and the staff don’t have to look at registers, maintain lists or keep tabs on the proceedings.
  3. Reliable: The electronic health records make it very easy to store and access the medical files of the patents. There is no scope for human errors such as misplacement or mixing up of reports.
  4. Stress free service: If you are anxious about a blood report and you get stuck in traffic while on your way to the lab to collect the report, your stress levels will surely shoot up. The patient record management systems allow you to access the reports remotely on your smart devices 24/7. So you don’t have to adjust your schedule according to the lab’s timings.
  5. Less paperwork: Filling out forms after forms while fighting an exhausting illness can be really annoying. The online patient management software allows you to fill in the forms digitally and in a quick manner. This helps save your time and energy and it helps in the conservation of nature as well.

In a nutshell:

The clinic management systems are very useful to the healthcare providers as well as the patients and their relatives. If you are setting up a medical business or you are expanding your existing clinic, make sure you install a very good patient management system. This will make your hospital a patient-friendly place and will increase its popularity.

<Click here to Apply for Doctor Loan>

finencilal-planing

Financial planning guide: A complete guide to solve all your financial problems

Shakespeare’s famous dialogue, ‘All the world’s a stage’, details the seven stages in a man’s life. Man starts out as a mewling baby. By the end of his life, he is an old man with no teeth, eyes, or taste.

But Shakespeare makes no mention of finances during these stages. To lead a comfortable life, a person must have enough money in all the stages of life. You do, too. But don’t worry. Why fear when we are here.

Here is how you can plan your finances in the right way:

Early Career:

Getting your first pay-check is a great feeling. It means you are now within reach of financial independence. Your expenses may be high, though. In some cases, they can exceed your income. This is because you are starting a new life on your own. From food items to furniture, you have to buy everything with your own money. If you live in the city, you might want to buy a bike or car. If you have taken an education loan, you will have to pay the EMIs month after month. Besides, you still have to build savings for the future. So, how do you work it all out?

First, set up an emergency fund. This should hold about three to six months of your income. The fund will act as insurance in case you lose your job or suffer from an unexpected illness.

The other important thing is to start saving for your retirement. Yes, you need to think of your retirement from Day 1 of your career. The power of compounding helps. It ensures that your initial savings offer greater returns in later years. Start by investing as little as Rs.500 per month in your retirement account. This will help you build a big lump sum later on.

Family and Career Building:

Most people focus on building their family and career between the ages of 30 and 45 years. The major goals during this period are to improve earnings and upgrade career skills. Many people shift to a larger and more comfortable home at this stage. They may also build a college fund for the children. If you wish to meet these goals, you need a sound financial plan.

First, increase the contribution towards your retirement account. This is manageable since your earnings may have increased. Next, create a specific action plan to meet your different goals. There are many investment options that can help you achieve your dreams. Given the inflation rates, the cost of a good college education will rise. By the year 2030, studying at a regular college could cost around Rs.25–50 lakh. It is necessary to start investing right away. That will help you provide a good education for your children. Systematic investment plans (SIPs) in mutual funds are a good way to achieve this goal. Say you make a monthly investment of Rs.5,000 in an SIP at a rate of 12%. This can earn Rs.25 lakh at the end of 15 years. So, chalk out an action plan for your different goals. Plan them so that they give you the funds at the right time in your life.

Make similar plans for any other goals you may have in life like buying a house, grand vacation plans, starting your own company, etc.

Pre-Retirement:

Your expenses go down by the time you reach your mid-fifties. The children are likely to have grown up and moved out of the house. You would have paid for their college education and marriage. In other words, you now have a great opportunity to increase your savings. But this is also the time to revisit your financial strategy.

Have you been investing heavily in stocks and mutual funds? Then it might be better to shift to safer avenues. You would not want to suffer huge losses in the market just before you retire. Unlike in your early years, you will not have the time to recover your losses. You can shift a part of your funds from equities to fixed deposits. FDs currently provide around 8% interest on average. This may be lower than the 10–15% offered by equities. But FDs offer fixed returns and low risk. In the latter part of your life, your ability to take risk tends to fall.  So, reconsider your investment plan.

Retirement:

You have now given your retirement speech and shed some tears at the farewell party. Now is the time to sit back, relax, and enjoy the fruit of your hard work. You might want to take up a new hobby or travel the world.

But make sure that your retirement savings support your activities. You would not want to deplete all your savings.

There is much you can do to supplement your savings at this stage. Opt for some part-time work in the area of your specialisation.

For example, if you are a financial analyst, you could work as a financial consultant. Also, make sure to reallocate your investments to risk-free avenues. These can also help you earn a regular income.

Do not forget to finalise your estate plan and will.

Every stage in life is new and exciting. But it is important to have financial security. It helps you to enjoy life to the fullest. The above points might help you to plan your finances. Then you can have a smooth ride through all the stages of life.

However, while doing so, don’t fall prey to these myths and mistakes.

You can now start investing as little as Rs.25,000 in Fixed Deposits with Bajaj Finance and earn higher-than-industry-average returns.

Invest in FD @8.05% High Interest Rate

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