BL 7 Best saving schemes every investor should know about- May- 42- How an Increase in Rates Affects Your Business

7 Best Saving Schemes Every Investor Should Know About

While an FD investment is most sought after by investors because of its safety and freedom from market fluctuations, it doesn’t hurt to look into additional options of investment along with the best FD option that offers a high rate of interest. Some existing options include mutual funds, Atal Pension plan, Jeevan Jyoti Bima, etc., all of which have their own set of characteristics, with safety at its peak.

Why Is It Important To Take Your Time Before Choosing a Good Savings Scheme?

Since savings can be invested to not only safeguard your money, but also offer you additional income, it is best to know their features, benefits and negative aspects before investing. Here are a few reasons why you should choose a good savings scheme.

  1. Investing in a good scheme can put your savings to good use.
  2. A profitable scheme can provide you a form of income via returns.
  3. Good saving schemes offer you better growth for your income.
  4. Certain schemes like fixed deposits are risk-free, so you money is guaranteed to be safe.
  5. Some saving schemes offer you tax benefits too.

The 7 Best Saving Schemes Ideal For You

Now that you know of the benefits, you can look at some great saving options. Choose one that suits you best in terms of tenor, returns, risk and reliability.

  1. Mutual Funds: This scheme involves a pool of investments by various investors that is managed by an asset management company. These investments yield returns in the form of dividends over a period of time. Some mutual funds have tax benefits under section 80C of the Income Tax Act, and can help you enjoy tax-free returns. Choose mutual funds carefully as they do bear market risks. Seeing their past performance or investing with a trusted financial company are both good ways to ensure relative safety of your investment.
  2. Atal pension: This scheme provides pension for the retired with other benefits at the cost of a contribution per month. This scheme is tax-free, and designed for people from lower income groups. Investors aged 60 and above can opt for a fixed pension from Rs.1000 to Rs.5000.
  3. Pradhan Mantri Jan Dhan scheme: This scheme is ideal for farmers and those in rural areas. It offers financial services of remittance, deposits, credit card and much more. It features an overdraft facility to up to Rs.5000, along with a RuPay debit card and accidental insurance of up to Rs.1 lakh.
  4. PPF: Self-employed and salaried individuals can invest a sum of up to Rs.1.5 lakh in a PPF account and also gain from tax benefits over the returns. Public provident funds are designed by the government for the working class to invest pools of savings. This option provides steady interest over your savings and ensures that they mature over time.
  5. Company Fixed Deposits: This safe and reliable investment option involves investing a sum of money in a financial company for a chosen tenor and a fixed rate of interest. Investors get guaranteed returns on maturity of their FDs and can choose between a cumulative interest pay-out or a non-cumulative pay-out that offers interest for their use on chosen intervals.
  6. Sukanya Samriddhi Account: The government of India designed this scheme for women. The investor that locks money into this scheme is eligible to receive return up to 9.1%. It was designed by the government so that parents could secure the future of their daughters over the long term. You can invest a minimum of Rs.1000 in this scheme over a period of 21 years.
  7. Jeevan Jyoti Bima: This is a life insurance scheme offered by the government of India. In case of death of the insured, it offers the nominee up to Rs.2 lakh. It features an annual premium of Rs.330.

Invest smartly and wisely by finding out which investment option works for you and gives you returns as well as tax deductions. Bajaj Finance offers safe and reliable company FD investments that offer high returns as well as a flexible tenor.

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Know the difference between a Personal Loan and a Personal Line of credit

A personal loan and a line of credit may seem similar. However, it is important for a borrower to not confuse one for the other. Here are the basic differences between the two.

If you are in the process of applying or have previously applied for a personal loan, you must have come across the term ‘line of credit’. The line of credit is a facility provided on a personal loan that enables you to withdraw only the amount of money you need from the overall loan amount called a credit line. The facility also allows you to withdraw small amounts multiple times without the hassle of contacting your lender again and again. Since line of credit is part of a personal loan offering, the two tend to be confused for each other. In principle, however, Personal line of credit is one of the benefits of taking a personal loan that you may choose to avail. To make things clearer, here is a snapshot of the two concepts along with their advantages.

Features And Benefits Of Personal Loan

  1. It involves borrowing a fixed sum of money and paying interest on the total sum borrowed.
  2. It is ideal for those who seek to borrow money in one single shot and have no recurring financial needs.
  3. The application process is online and easy, and requires submission of documents like application form, salary slips, etc.
  4. A firm limit on the financial sum ensures that you do not end up borrowing more than you can repay.
  5. You have the leeway to make part prepayment of a personal loan, but these may incur some charges.
  6. A personal loan can be used for any purpose such as home renovation, financing a wedding, purchasing your dream vehicle, going on a vacation, funding your child’s education, use for a medical emergency, etc.
  7. It doesn’t require you to calculate or monitor how much you are borrowing from your lender.
  8. You have to pay a fixed rate of interest on the loan and your EMIs contain a mix of your principal and interest.

Features And Benefits Of Line Of Credit

  1. Line of credit gives you a credit line and allows you to borrow as much money as you wish to, based on your financial needs.
  2. There is no limit on the amount or number of withdrawals you make up to the credit limit. You can borrow money frequently or periodically, based on your financial needs.
  3. You can use a line of credit if your expenses are uncertain, recurring or inexact.
  4. You only pay interest on the borrowed amount and not the whole amount in your credit line.
  5. Prepayment of a line of credit is easy and involves no charges.
  6. It may require you to monitor and keep track of how much you are borrowing.
  7. A line of credit is highly flexible. It allows you to prepay an amount and re-avail the prepaid amount.
  8. It allows you to manage your cash flows better since it only charges the interest component as EMIs.

Now that you know the difference between a personal loan and a line of credit, you can easily determine whether you need the latter to meet your needs or a personal loan of a fixed amount is better suited to your financial situation and needs. You can instantly apply for a Personal Loan at Bajaj Finserv. Here you will have your loan processed instantly and also gain from affordable interest rates and loan amount up to Rs.25 lakh.

Fixed Deposit Interest Rates Explained

Fixed Deposit Interest Rates Explained

Fixed deposits are investments wherein you deposit a fixed sum of money with a financial corporation for a set time period, called the tenor. Based on the amount you deposit and certain other factors, the lender then offers you interest as a form of return on investment. The usual tenor for a fixed deposit ranges between 12 months to 60 months, and can even go up. The longer your tenor, the higher your returns.

Fixed deposits are divided into two major types—cumulative fixed deposits and non-cumulative fixed deposits. Depending on your needs, you can choose either one of them to achieve the right balance between profitability and flexibility. For example, cumulative fixed deposits offer a higher rate of return, but offer interest returns only on maturity. In contrast, non-cumulative fixed deposits provide monthly, quarterly, half-yearly, and yearly interest pay-out options but offer lower rates of interest. It is important to remember that if you earn an annual return of more than Rs.10,000 from  fixed deposits, you need to pay taxes on your earnings.

Get The Best Interest Rates on Your Fixed Deposits

In India, fixed deposits are a highly-preferred mode of earning returns due to the security they offer coupled with profitable rates of interest provided by the competitive fixed deposit market. However, if you wish to make the most of your fixed deposit investment, it is advisable to obtain in-depth knowledge of the various schemes and conditions under which you can acquire the highest fixed deposit interest rates. Here’s a few things you should keep in mind to ensure maximum gains:

The longer The Tenor, The Higher Your Interest Rate

Although fixed deposit investments can be made for any length between 1 year to 5 years or more, you will earn more the longer your tenor period. For example, the annual rate of interest on a fixed deposit of anywhere between 1 year to 2 years is 7.80%, while the same amount, if invested for a period of 3 to 5 years, will yield an interest rate of 8.05%.

Cumulative Fixed Deposits Offer a Higher Payout As Opposed To Non-cumulative Fixed Deposits

If you are willing to lock in your money for a fixed period of time, you can gain a higher rate of interest. If you would rather receive monthly, quarterly, half-yearly, or yearly pay-outs, the rate of interest decreases. It all depends on how flexible you wish to be. For example, the cumulative rate of interest for a tenor of 5 years is 8.05%, but a non-cumulative rate of interest on the same amount and same tenor will yield comparatively lower returns based on how often you want a payout. This means that the half-yearly, quarterly, and monthly non-cumulative rate of interest on the same amount for 5 years will be 7.89%, 7.82%, and 7.77% respectively.

Also Read: What is An FD Calculator And How Does It Help?

Choose An Interest Rate Tailor-made For You

Some financing corporations offer higher rates of interest based on you meeting certain criteria. For example, Bajaj Finance offers an existing loan customer, Bajaj group employees, and returning fixed deposit customers an additional .10% rate of interest on top of any other offers. This means that if you are an existing loan customer and renew your fixed deposit, you can acquire an interest rate of 8.25%! Similarly, the basic rate of interest offered to senior citizens is an industry-high 8.30%, which can be increased even further to 8.40% if you opt for renewal of your FD.

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Guide to choosing the right fixtures for your home under Rs.25 lakh

Redesigning your home does not have to be an expensive affair. As long as you have access to the right information about products and services, choosing stylish yet affordable fixtures for home improvement is easy. However, it is important to remember that decorating ideas are about much more than just selecting a product off the shelf and installing it in your home. When it comes to fixtures, in particular, there are dozens of base materials and finishes to choose from. All of them have varying prices, life spans, maintenance requirements, and style quotients. Making sure you choose a fixture that complements your home and furnishings is the first step.

Consider these points when selecting fixtures

Outfitting your living space with appropriate fixtures requires a proper game plan. This will help you streamline your thoughts and avoid wastage of both resources and effort. Here are a few things to keep in mind while opting for the ideal fixtures:

  1. Consider the entire space

One of the first steps is to decide whether you are combining the new fixtures with old ones, or going for a complete remodelling—which is similar to decorating a new home. If you decide to blend a variety of materials, try coordinating different styles with similar finishes—like polished or brushed—for all fixtures.

  1. Choose a suitable body material

The finish may be all your visitors will see, but you are the one who has to maintain the fixtures. Especially in case of bathroom and kitchen fixtures, the finish impacts overall style, which is why the material may be overlooked. Avoid making this mistake, since the finish is only the top coat placed over a different underlying material, which is the real point of consideration. The body material is what truly determines the price and life of your fixtures.

For example, all-brass fixtures tend to be expensive, but if you are willing to make the initial investment, they last longer than most other materials. Also, there is almost no chance of leakage and corrosion with good quality brass. In the case of steel, the price is lower, but you face a higher chance of rust over time. Plastic is the most affordable fixture, but offers extremely limited style and material life.

  1. Choose your preferred finish

In the end, fixtures are mostly about aesthetics. Pleasant and eye-catching fixtures go a long way in boosting your home’s overall appeal. And the way to do this is by opting for an attractive finish. Usually, you can choose between chrome, nickel, and copper finishes for your fixtures. If you would prefer an exotic touch, satin brass and oil-rubbed bronze are unmatched in elegance and beauty.

Purchasing the ideal home is one of the biggest investments people make in their lives. However, the investment does not stop there. Even after you, as a buyer, have moved into your new home, there are many additional expenses to consider. And if you are decorating a new home, a significant amount of money goes into turning it into an ideal living space. That is why it’s vital to ensure your home loan comes with a low interest rate and tons of additional facilities—including extra provisions for furnishing and fixtures. Does your existing home loan provide for all of your customized needs?

If not, try a Home Loan Balance Transfer by Bajaj Finserv, and experience the true convenience of a home loan that offers the lowest interest rate, a quick and easy Top Up Loan for home improvement, 3 EMI holiday, online account management, and much more.

All you need to know about pre-approved Personal Loans

 

 

Need funds in an instant and don’t want to wait in long queues or fill multiple application forms? We have a perfect solution for you! Get Bajaj Finserv pre-approved personal loan. You can get a pre-approved loan with just a few clicks with no income proofs and minimal documentation. Pre-approved personal loans can be used for meeting your personal needs. You can fund your trip, wedding or higher education with such loans. Borrowing and obtaining a pre-approved personal loan is a hassle-free process.

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How Bajaj Finserv’s Home Loan Balance Transfer offers you a financial edge

Market rates are constantly varying, and lenders are continuously upgrading their services, it is entirely possible for even the most experienced investors and buyers to fall for a bad or unprofitable deal. Fortunately, you do not have to keep suffering from bad service or high interest rates once you’ve realized that there are better offers from top companies customized for you. You can approach NBFC like Bajaj Finserv and apply for a Home Loan Balance Transfer to avail the benefits of an ideal loan.

How does a Home Loan Balance Transfer or Refinance help?
A home loan balance transfer involves the process of transferring an existing home loan. Usually, customers do this if the new lender has a lower rate of interest and other benefits like better services, a better mode of repayment, etc.

 However, it is advisable to remember that in order to do a balance transfer, the total unpaid principal amount of loan has to be transferred. The lender that sanctioned the loan in the first place is provided the total unpaid amount, after which you’ll pay your EMIs at the new interest rate to the new lender where you transferred the loan. This process entails a few charges, but on the whole, if you’ve managed to pay your EMIs on time, you can easily avail a home loan balance transfer.

Here are a few features of Bajaj Finserv’s Home Loan Balance Transfer that help you manage your finances better:

  • Home Loan+

This is a special offering to customers who are buying ready to occupy property. Not only does Bajaj Finserv fund your dream home, the company also understands that you need to spend on fixtures and fittings to make the new place yours. As a part of the overall package, Bajaj Finserv offers you an additional amount for Furnishings & Fixtures (subject to eligibility) exclusively for this purpose, making it the best home loan available on the market.

With the Home Loan+ Facility, you do not have to worry about applying for a separate Personal Loan or a Home Improvement Loan either. Spend the time on making your house, rather than on documents.

  • 3 EMI holiday

Bajaj Finserv focuses on the ease of repayment through multiple flexible options that make it easier for you to repay your loan. A 3-month EMI grace period will help manage or plan monthly expenses and give you a cushion to plan your finances when you go for a balance transfer. To know more, click here.

  • Top Up Loans up to Rs.50 lakh

You can easily avail a Top Up Loan from Bajaj Finserv if you have opted for a home loan balance transfer. This handy loan gives you the freedom to spend wherever required—from home décor and improvement to wedding or holiday expenses, through a very simple process.

  • Property Dossier

Property Dossier is another industry first value-added service offered to mortgage customers of Bajaj Finserv. It is a customized report that guides the customer through all the legal and technical aspects of owning a property in a clear and crisp manner. It also covers general property knowledge tips as well as all macro factors like property index of the city, important property tips etc.

  • Minimum documentation, zero additional charges, and doorstep service

A Home Loan Balance Transfer with Bajaj Finserv has been designed to provide maximum comfort to customers. In addition to asking for only basic documentation, Bajaj Finserv also offers customized insurance schemes, zero foreclosure and part prepayment charges, and a convenient personal service to pick up any documents directly from your home.

Lower your next Home Loan EMI significantly and save big with attractive interest rates on home loan transfer through a Home Loan Balance Transfer by Bajaj Finserv.

Everything you need to know about a Personal Line of Credit

Everything You Need To Know About A Personal Line Of Credit

A Personal Line of Credit is a unique financial product where the lender extends a fixed amount of money to you, allowing you to withdraw as you please. You pay only the interest component as EMIs on the amount utilized, while the principal amount can be repaid as bullet payments at the end of the loan tenure.

Useful For a Variety of Reasons

A Personal Line of Credit can be very useful if you need to borrow money on an incremental basis, for example paying a contractor renovating your home. It’s difficult to predict the expenses involved in home improvement beforehand, which is why a Personal Line of Credit is a handy tool at your disposal. It can also prevent you from overdrawing funds through your checking account when you have a variable income, or use an auto-pay feature and encounter an uncharacteristically large bill.

If you are thinking about opting for a Personal Line of Credit, there are certain key elements you should be aware of. Take note of the following factors before narrowing down on the ideal Personal Line of Credit offer for you:

What is the interest rate for a Personal Line of Credit?

The usual interest rate for a Personal Line of Credit will be anywhere upwards of 14%. The rate you are offered will depend on your credit score, but a rate between 14% to 16% is generally considered a good deal. The good news here is that because you are repaying only the interest component as EMIs, your instalments can be as much as 45%* lower!

What credit score is needed for a Personal Line of Credit?

Your credit score is the single most important element a lender considers before granting you a Personal Line of Credit. It is the deciding factor when it comes to approving your application, and also when determining the rate, you will be offered. You will require a good credit score to avail a satisfactory Personal Line of Credit. While most other types of loans are offered by accounting for a variety of factors related to your finances, this loan is provided mostly on the basis of your credit score. The better your score, the higher your chances of securing a Personal Line of Credit and consequently a better interest rate. Ideally, you will require a CIBIL score of at least 750 to avail a decent personal credit line.

Also Read : A Comprehensive Guide : Personal Loan V/S Personal Line of Credit

What is the eligibility criteria for a Personal Line of Credit?

Your eligibility criteria will determine whether you can apply for a Personal Line of Credit. This depends on a few basic requirements, such as:

  • Your age should be between 25 years to 58 years.
  • If you are a salaried professional, you should be an employee of either an MNC, public, or private company.
  • Your salary should exceed the minimum bracket set for the corresponding city you live in.
  • You should be an Indian citizen residing in any of the 30 cities the offer is available in.

You can easily check your eligibility online through an Personal Loan Eligibility Calculator.

What are the documents required to apply for a Personal Line of Credit?

A Personal Line of Credit can be availed with minimal documentation. The only documents you need are:

  • Your salary slips for the last two months
  • Your salary account bank statement for the last 3 months
  • Your employee ID card
  • Any identity proof, like a passport, driving license, PAN card, etc.
  • Any address proof, like a passport, driving license, or even your latest mobile bill

Once you provide these documents, your application is ready to be processed.

What are the various rates and charges associated with a Personal Line of Credit?

Most of the charges applicable on a Personal Line of Credit are the same as those on a standard personal loan. They include:

  • A processing fee of 2.25% to 3% on the total loan amount
  • A secure fee of Rs. 2,499 for online facilities
  • An EMI bounce charge of Rs. 1,000 per bounce
  • A penal interest of 2% per month
  • Foreclosure charges of 4% plus applicable taxes on the outstanding principal
  • Part prepayment charges of 2% plus applicable taxes on the part prepayment amount paid
  • Annual maintenance charges of 0.25% on sanctioned amount

What are the minimum and maximum loan amounts that can be acquired with a Personal Line of Credit?

A Personal Line of Credit offers a wide range of available loan amounts to cater to any and all needs that you may have.

  • Minimum amount is Rs.80,000
  • Maximum amount is Rs.15 lakh

What is the tenor for a Personal Line of Credit?

The minimum tenor for a Personal Line of Credit is 1 year. However, you can always renew it after 12 months, or even convert it in to a term loan if you wish.

Can a term loan be converted to a Personal Line of Credit and vice-versa?

Yes, it is possible to convert a term loan to a Personal Line of Credit. In that scenario, your existing loan will be closed and a new loan will be booked for you under a new agreement.

And if you wish to convert your Personal Line of Credit to a term loan, you can send a mail to the customer service team, who will put a request on your behalf. After the procedure, your Personal Line of Credit will be converted to a regular term loan and your EMI will include the principal amount divided by tenor.

Also Read : An Exhaustive Guide to Personal Line of Credit

Can a Personal Line of Credit be blocked from usage?

There are certain scenarios wherein you will be stopped from availing the benefits of a Personal Line of Credit. They are:

  • A bounce of your monthly installment
  • A drop in your credit score
  • A change in your employment status
  • A change in your contact information, unless you notify the concerned authorities beforehand

What are the drawbacks of a Personal Line of Credit?

As with any monetary loan, a Personal Line of Credit needs you to plan ahead and be careful about your repayment. Although the benefits greatly outnumber the drawbacks of acquiring a Personal Line of Credit, remember the following points before applying for one:

  • The interest rates are often higher than other those offered by secured loans
  • They may be hard to qualify for unless your finances are robust
  • They could spell trouble if you tend to overspend and don’t plan your EMIs efficiently

What are the benefits of a Personal Line of Credit?

A Personal Line of Credit can be an unmatched source of financing, provided you use it wisely. It comes with a host of benefits:

  • You only have to pay the interest amount as your monthly installment. The principal component can be paid at the end of your tenor, which means you have the freedom to manage your finances better and in a more organized manner.
  • You stand a chance to pay up to 45%* lower EMI.
  • You gain access to a completely online process that allows you to keep tabs on the whole account. You are free to part prepay and withdraw according to your convenience.
  • There is no limit on the number of part-prepayments you can make. Additionally, there are no additional charges for part-prepayment either.
  • As with part-prepayment, there are no additional charges for a withdrawal or drawdown.
  • There is a bullet repayment option at the end of the year.
  • A Personal Line of Credit is an unsecured loan, which means you are not required to put up any collateral or security to obtain it.
  • You can always convert to a term loan whenever you wish.

If you are looking for a Personal Line of Credit that offers maximum benefits and minimum effort from your side, Bajaj Finserv’s Personal Line of Credit is your best bet. Take the first step towards a richly rewarding experience.

Apply for Personal Loan Online Check your Personal Loan Eligibility

 

 

*Terms and Conditions Apply

HL-07-July-03-Why is a top up loan a good idea for you

Why Is A Top Up Loan A Good Idea For You?

Are you wondering how to raise money for refurbishing your home? Or do you need affordable financing to fund your child’s education? No matter what you need money for, if you already have a home loan, a top up loan can help combat your financial worries.

A home loan top up is available at low interest rates and is the best source of finance for existing home loan borrowers or those looking to do a home loan balance transfer. You can use this loan for a range of purposes like financing a home renovation, purchasing an asset like a vehicle, upgrading your household appliances and electronics, financing your children’s education or funding a wedding. One of the primary benefits of a top up is that it doesn’t require you to go through any lengthy application procedures. Another advantage of a top up loan is that it offers much lower interest rates as compared to other loans available in the market.

An Insider’s Look At Top Up Loans

Top up loans can be defined as a loan that is borrowed over and above a home loan; hence, it is referred to as a top up loan. Lenders offer this facility exclusively to home loan borrowers. This is because after purchasing a home, a home owner is sure to incur numerous other costs, and if a lender is satisfied with their ability to repay the new loan, they are offered a top up. You can usually apply for a top up loan from 6 months to 1 year from when you first take a home loan or immediately when you transfer your home loan to a new lender. This is because a lender analyses your ability to repay the top up loan alongside your home loan. After seeing whether your EMIs have been timely and consistent and studying your income statement, a lender will offer you a top up. You can also approach your lender to ask for a top up. In the case of balance transfers, a top up loan is one of the many benefits a lender offers you for refinancing your home loan.

What Makes Top Up Loans A Winner?

There are numerous reasons why you should apply for this loan. From low interest rates to easy and quick application, top up loans offer you everything you need. Here are some benefits of top up loans:

  1. Simple Eligibility: These loans do not have rigid eligibility criteria that are tough to match up to. Since most of the eligibility documents are submitted at the time of borrowing the home loan, you don’t require too much more documentation at the time of availing a top up loan. All you have to do is get in touch with your lender and request for a top up loan Your lender will then do the needful.
  2. Quick and Instant Application: This type of loan doesn’t require you to go through the whole hassle of an application process. If you have a good repayment history on your home loan and show that your earnings are capable to paying off a new loan, your lender will disburse your top up loan to you almost instantly.
  3. Affordable Interest Rates: Top up loans have interest rates that range from 8% to 12%. These rates are much lower than the interest rates for other loans. Hence, a top up loan is much more convenient, affordable and beneficial for the borrower.
  4. Convenient Tenor: The tenor for these loans are usually the same as the repayment duration left over on your home loan. This makes it more convenient for you to manage your EMIs and pay them in an organised fashion. Also, if your home loan tenor is a long one, your EMIs for the top up loan would be spread across a longer term and hence its EMIs will put less of a financial burden on you.
  5. No Additional Collateral or Guarantee: Top up loans do not require you to submit any additional collateral as security or even have a guarantor. This makes them much more convenient.
  6. Tax Exemption: If you use your top up loan for buying or constructing new residential property, then you will save tax. You can get tax benefits on the principal repayment of your top up loan under Section 80C and for your interest payment under Section 24. If you use the amount for home repair or adding a feature to your property, you will be eligible to save tax on your interest payment under Section 24.

If you already have a home loan, and have a reason to borrow funds, for home-related expenses or otherwise, get a convenient and affordable top up loan today! Apply now for a top up loan from Bajaj Finserv and find out the many advantages it offers you.

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