Cheapest Cancer Insurance @ Rs.600: SBI Life Sampoorn Cancer Suraksha

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Cancer in India is on rise. It is distressing emotionally and financially for the patient as well his/her near ones. The whole family has to go through a difficult time. Though no one will consider himself at risk, the rising cases of cancer is very serious.

Looking at this situation – Life insurance arm of State Bank of India SBI-Life has launched Sampoorn Cancer Suraksha, a comprehensive cancer insurance policy. It is amongst the cheapest cancer insurance in India.

What options are available under the cancer insurance plan and what is the coverage offered?

There are three options available as follows:

  • Standard: Covers minor and major stage of cancer
  • Classic: Covers minor, major and advance stage of cancer
  • Enhanced: Covers minor, major and advance stage of cancer. Sum assured reset benefit is offered.

What is the policy premium?

Here’s the table showing minimum and maximum premium:

FrequencyMinimum Premium (In Rs.)
Half Yearly300

NA denotes plan does not exist for the age group.

There are three options to make premium payment as follows:

Half-yearly: 51.00% of annual premium
Quarterly: 26.00% of annual premium
Monthly: 8.50% of annual premium

Also shown below is the premium calculation for different term:

Age (in Years)StandardClassicEnhanced

Discount: If you buy this cancer policy online, then SBI Life will get 5% discount.

Other low cost cancer plans available in the market are from:

  1. Indian Cancer Society (ICS) in collaboration with New India Assurance
  2. Cancer Patients Aid Association in collaboration with New India Assurance

However these 2 plans have a very low sum assured. For e.g. ICS offers sum assured of Rs. 50, 000 at a premium of Rs. 496. In comparison, the premium charged by SBI life is affordable.

What is the sum assured?

Minimum sum assured is Rs. 10 Lakh and maximum is Rs. 50 Lakh

What is the policy term?

Minimum term is 5 years and maximum is 10 years.

Can someone with pre-existing disease buy this policy?


For whom can this policy be purchased?

Interested individuals can buy policy for:

Child: Minimum 6 years old and maximum 17 years
Adult: Minimum 18 years old and maximum 65 years

What is the waiting period?

There are two important terms and conditions. Claim will be rejected if

Initial waiting period: If cancer is detected within 180 days of buying the policy or date of revival.
Survival period: After diagnosis, if the policy holder dies within 5 days.

You may be having medical insurance policy which would pay for the cost of hospitalization, surgical procedures, and treatment in case of cancer. However, it may turn out insufficient to cover the entire cost of treatment. In such circumstance, your medical insurance would need to be supplemented.

SBI Life Sampoorn Cancer Suraksha helps you to secure you and family against such eventualities. It also supplements your existing medical insurance policy i.e. all the benefits and payouts offered by this policy are independent of any existing health insurance plan held by you.


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RuPay ‘Credit Card’ 2017: Features, Benefits & Comparison

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Since it’s launch in 2012, RuPay debit card has received positive response received especially from Jan Dhan Account holders to whom the card was offered for free. National Payments Corporation of India (NPCI), the authority agency for digital payment system in India behind India’s first local payment system is now set to launch credit card as well.

Although RuPay credit cards are already offered by few banks, it would be commercially made available to a larger scale to increase its foothold very soon.

Features of RuPay credit card:

There would be four versions:

  1. Select (Super premium category)
  2. Platinum (Premium category)
  3. Premium
  4. Classic (This will have low credit limit compared to the other three types)

Differences & Similarities between Visa/Mastercard/Amex enabled credit cards:

There are lots of differences between RuPay & others credit cards available in the market as follows:

  1. Transaction cost would be lower in case of RuPay credit card compared to the ones offered by various Indian and foreign banks.
  2. There is no joining fee in case of RuPay. Whereas cards offered by various banks mostly have joining fee.
  3. There are very limited offers on RuPay card compared to normal ones.
  4. RuPay card offers insurance cover which is not available in most of the other cards.
  5. Visa, Mastercard & Amex cards have larger acceptance locally as well as globally compared to RuPay.
  6. Currently RuPay has low penetration compared to foreign entities.
  7. RuPay payment gateway would be used for RuPay. Other cards mostly use their own gateways.

Additional reading differences between RuPay and Visa/Amex/Mastercard.

Which banks in India currently offer RuPay credit card:

As on August 2017, the card is currently offered by following banks in India. To get this card, you will have to request the bank.

Public sector:

  1. Andhra Bank
  2. Canara Bank
  3. Corporation Bank
  4. Central Bank
  5. IDBI
  6. Punjab National Bank
  7. Union Bank
  8. Vijaya Bank


  1. Punjab and Maharashtra Co-operative Bank


  1. HDFC Bank

Benefits of Union Bank RuPay card:

Union Bank of India is first bank in India to launch RuPay credit card. The card offers many benefits as follows:

  • It can be personalized
  • It is Aadhaar enabled
  • Offers life and permanent disability insurance
  • Lounge access
  • Fuel surcharge waiver
  • Cash back offer on making utility bill payment, IRCTC train ticket booking, and mobile wallet.
  • Airline vouchers for top transacting customers
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Save Money on Movies after GST: Amazon Prime & Netflix

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Post Goods and Service Tax (GST) implementation 28% tax is levied on entertainment. Which means you will have to pay more money to watch movies in theatres compared to pre-GST era. Remember that the tax varies from state to state in India.

As most people watch movie on weekends during which tickets are priced extremely high, the overall cost of watching movie has further gone up.

For example: A single ticket which was earlier costing Rs. 300 will be now priced at Rs. 380. Assuming minimum two persons watch movies, you will have to shell out minimum Rs. 760. In addition, if you buy food items in the theatre, you will most probably end up spending additional money. Food items purchased in theatres are taxed at 28%.

So how can you save money by watching favorite movie at low cost with your family? Answer is Amazon Prime and Netflix.

Online streaming offered by these two companies let you watch TV shows and movies at a very minimal cost that too paid annually.

The annual membership fee is Rs. 500 for Amazon Prime. Whereas Netflix offers three plans priced at Rs. 500, 650 and 800 respectively.

Benefits of watching movies on Amazon Prime and Netflix:

  1. Both offer one month free trial after joining. And if you don’t like the service, you get full refund. This is not the case when you buy tickets at a theatre.
  2. Unlimited movies and TV shows can be watched anytime, anywhere provided device has internet connection.
  3. Any number of individuals can watch movie at the same time. You can calculate the money saved.
  4. You can save select movies for offline watching.
  5. Moreover when you book movie tickets online, internet handling fee is also charged. This further increases the cost of buying movie.
  6. You can watch on any device – television, desktop, laptop, mobile, tablet.
  7. Multiple formats are available such as Standard Definition (SD), High Definition (HD), Ultra High Definition (4K or UHD) and High Dynamic Range (HDR) giving you ultimate movie experience.
  8. These are the most authenticated and secured options for entertainment buffs. No risk of viruses. You also get advertisement free movie experience.
  9. No more standing in queue to buy movie tickets.

Everything has pros and cons and the same is true when it comes to watching movies online on Amazon Prime and Netflix or any other online service.

Here are the cons:

  1. Movies are available after some delay. So you will have to wait to watch your favorite movie.
  2. Slow internet connection can make movie experience frustrating.
  3. Your internet bill will go up. But if you buy decent plan offering unlimited download, then you do not have to worry about the bills.

There are more such services such as Hulu which are not very famous in India. This shift from watching a movie in a theatre to online is certainly worth trying. And definitely they are big money savers (provided you are piracy hater:). and you need to have patience to wait for your favorite movie to come on these two websites.

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12 Reasons to Get SBI Unnati Credit Card: No Fee, Against FD & more

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State Bank of India had launched SBI Unnati Credit card in March 2017. The objective behind launching this card was to contribute to India’s vision of building a cashless economy.

Although there are multiple credit cards available in the market with each offering various benefits, this card is worth to opt for because of the following reasons:

  1. No credit history required: Today, anywhere you apply for a credit card the first thing checked by the lender is the credit score. But applicants of SBI Unnati credit card can get the card even with no history. This is because the card is offered against fixed deposit.
  2. No joining fee: There is no joining fee associated with the card.
  3. No annual fee: This card is a complete money saver as there is no annual fee for the first four years. Once four years are over and card is up for renewal, the card holder will have to pay Rs. 499 fee. There is no condition for minimum spend required. Check out credit cards with no annual fee in the market.
  4. Helps in building credit history: As the card is available for every SBI account holder including people holding Jan Dhan Account, it provides an excellent way to start building credit history. So this is the best way for any account holding student to get credit card. Getting a credit card for the first time is very difficult as every bank has minimum income requirement. If the income is below this limit, then card application is rejected. Since this card is offered against FD, it gives an opportunity for everyone especially low income individuals to start building credit history.
  5. Add-on card facility: Primary owner also has an option to apply for an add-on card for his/her family member. The condition is that the family member should be parents, siblings, spouse, or children who have completed 18 years of age.
  6. No late payment fee if the total due amount is less than Rs. 200. However you should never make late payment as it affects credit rating.
  7. Maximum Rs.100 fuel surcharge (2.5%) is waived off every month provided the transaction is between Rs. 500 and Rs. 3000.
  8. Flexipay: If user makes a minimum purchase of Rs. 2500 then they can convert their transactions to Flexipay i.e. easy monthly installments.
  9. User can get a demand draft or cheque against the limit available on the card.
  10. Balance transfer: If you already hold credit card of any other bank then you can transfer any outstanding balance to SBI Unnati card. Benefit of doing this is the low interest compared to your existing card. There are two options for balance transfer:
  • 0% interest for 60 days
  • 1.7% interest per month for 180 days

11. For every Rs. 100 spent on this card; 1 reward point can be accumulated. The points accumulated can then be          redeemed to purchase the following:

  • Accessories
  • Apparels
  • Books
  • Electronics – Mobile phones, camera, speakers,
  • Entertainment
  • Dining & more

12. Worldwide acceptance: You can use this card in India and anywhere in the world and even make online     payment in currencies other than Indian rupee.


  1. Applicant should be SBI account holder
  2. This card is a secured credit card offered against the fixed deposit and requires minimum balance of Rs. 25,000. There is no maximum balance limit. Basically this card is a secured card.

Additional reading credit cards against fixed deposit.

With so many benefits and features, SBI Unnati Credit Card is definitely empowering Indians to go cashless.

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8 Credit Cards for International Travel 2017: Free Miles, Insurance & more

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There are multiple payment options when traveling abroad such as credit card, prepaid travel cards, travelers cheque, international debit cards, cash. However credit card is considered to be the most preferred payment option. This is due to the fact that it is widely acceptable mode of payment. Whether you use it in India or abroad, it continues to remain the most convenient option as you get money to use every month and pay later.

But everything has the cost and same holds true for credit card as you have to pay following charges:

  • Joining and annual fee
  • Interest rate
  • Card cancellation
  • Service tax on interest, fees, and other charges
  • Duplicate statement
  • Balance transfer
  • Credit limit exceed and others

But there are three additional charges when transaction is done in currency other than Indian rupee using the Indian credit card. These charges further increase the cost of using the card.

Three charges are:

  1. Overseas transaction fee: 2.5% – 3.5%
  2. Foreign currency conversion fee: 1% to 2%
  3. Cash advance fee: When credit card is used at ATM (same bank or other) and PoS for cash withdrawal. This fee ranges between 1% – 3.50% and varies for each bank.

These charges are never told by the issuer and card applicant should get this confirmed beforehand.

Read in detail about these international credit card charges.

Despite of these charges, credit cards are most preferred by frequent international travelers because of plenty of benefits offered such as:

  • Lounge access
  • Travel insurance
  • Complimentary air travel
  • Transaction can be done in multiple currencies
  • Free airline miles
  • Reward points

Although many of the above charges are mandatory and unavoidable, but you can opt for following credit cards especially designed for international travelers.

The table below shows list of cards for international travelers, including the benefits offered.

Credit Card NameBenefits
YESFirst Exclusive (YES Bank)>> 50,000 Reward Points on first transaction
>> Complimentary Priority Pass membership
>> 25,000 Reward Points on spending Rs. 20 Lakhs annually
>> Insurance cover for air accident death, medical emergency in foreign country, accidental death
HDFC Bank World MasterCard>> Access to exclusive airport lounges across the world
>> Complimentary refreshments, email, Internet
HDFC Business Regalia>> Additional 5 Kg baggage allowance
>> Worldwide free access to over 850+ international lounges
>> 6 free access to the Priority Pass lounges
>> Exclusive Dining Privileges at over 300 premium restaurants
Citi Prestige>>10,000 bonus air miles
>> Unlimited complimentary Priority Pass lounge access
>> 4 Frequent Flyer Air miles for every rewards point
Jet Airways ICICI Bank Sapphiro>>10000 miles on joining
>>7 miles on Rs. 100 spend
ICICI Bank British Airways ClassicMax 5 Avios for every Rs. 100 spend
JetPrivilege HDFC Bank World>>6 JPMiles on every Rs. 150 spent on retail purchase
>>18 JPMiles on every Rs 150 spent on every flight ticket
Citi PremierMiles>>10 Miles for every Rs.100 spent
>>Air Accident Insurance Cover of upto Rs. 1 Crore
>>Lost Card Liability Cover of Rs2 Lakh

What to look for in a credit card for foreign travel?

As you cannot avoid the various fees on credit card when travelling abroad, you should look for cards offering range of benefits which can help in saving money in some way or the other.

Additional reading: 28 international debit cards.

Few of the benefits/features to look for in a credit card for frequent travelers:

  • Complimentary air ticket
  • Free miles every time the card is used either for flight booking, online purchase etc.
  • Bonus point on every purchase
  • Airport lounge access both at domestic and international airport
  • Free Wi-Fi
  • Dining privileges
  • Air accident and baggage insurance cover
  • Lost card liability cover which includes cover against fraudulent usage
  • Easily redeemable miles or bonus/reward points for
  • Lowest joining and annual fee
  • Concierge Services – Assistance on car, hotel, travel reservation
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Free Treatment during Pregnancy: PM Surakshit Matritva Abhiyan

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Pregnancy is a period during which women needs extreme care and precaution. However due to lack of medical services in India (especially in the rural areas) the number of maternal and neonatal deaths are high. Here are the key facts as sourced from official Indian government website (

  • Every year, approximately 44000 women die due to pregnancy related causes and 6.6 lakhs infants die within the first 28 days of birth.

The main reason behind these deaths is the poor quality of healthcare provided to the pregnant women. Because of this many ailments such as anemia, pregnancy related hypertension etc. go undetected leading to death.

Good quality healthcare is very expensive and poor people cannot afford cost related to pregnancy and delivery of baby. Coupled to this, in rural area there is a lack of quality service. Looking at this condition, government of India offers free medical treatment to pregnant women under the name of Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA).

Objective of PMSMA:

  1. Healthy life to every pregnant women through high quality healthcare service
  2. Reduce the maternity mortality rate
  3. Make pregnant women aware of medical problems and diseases arising during pregnancy
  4. Safe delivery and healthy life to the baby

Free treatments offered to pregnant women under PMSMA:

  1. Ante-natal checkup would be provided to the pregnant women
  2. All kinds of medical checkups would be provided at zero cost
  3. Tests include blood sugar, blood pressure, sugar level, weight, haemoglobin, blood test
  4. Screening for conditions detected during the tests such as anaemia, pregnancy induced hypertension, gestational diabetes.
  5. Counselling on diet, sleep, breast feeding, contraceptives, regular ANC check-up
  6. Lab Investigations include: Hemoglobin, Urine Albumin and Sugar, Malaria, VDRL, HIV, Blood Grouping, Screening for GDM using OGTT etc.


  • For pregnant women who are in their 2nd or 3rd trimester will be provided free treatments as listed above.
  • Tests are organized on 9th day of every month
  • If there is a holiday or Sunday on 9th day, then the treatment would be provided on the next working day

Where can pregnant women avail the free healthcare services?

Services under PMSMA will be provided at government recognized health centers and hospitals.

Additional reading low cost IVF treatment in India.

Who will offer medical treatment?

Government has taken special care in terms of the quality of the doctors. And the treatment would be carried out by expert:

  • Medical officer
  • OBGY specialist/radiologist/physician who would be supported by doctors from private sector

How to Save money on Pregnancy Expenses – Buy Insurance Policy

Other option to save money on pregnancy related expenses is buying maternity insurance or buying health insurance which cover maternity expenses as well. In India, there are many insurance companies offering maternity insurance, covering maternity expenses which include:

  • Pre and post hospitalization including delivery of baby
  • Pre and post-natal care
  • Ambulance charges

However, if you are covered under group cover then nothing better than that as there is no waiting period. Although there might be a limit on the maternity spend and coverage. But the money saved is very high compared to an exclusive maternity insurance plan.

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Lowest Processing Fee (0%) on Home Loan

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With rising property prices, home loan is the only solution when you want to achieve your dream of owning a home. And there is no dearth of home loan providers in India. You can get home loan for various purpose such as:

  • House construction
  • House (new or old) /land purchase
  • Home improvement/renovation
  • Home extension

However borrowers have to pay various other charges apart from the interest rate. Amongst them, processing fee is one such extra cost.

What is a home loan processing fee?

Every home loan application goes through a detailed evaluation before final approval. All these involve manual human intervention. So to cover up the cost, lender charge a processing fee.

It is a fee which is charged by the housing loan providers and may include multiple charges – legal, administration, application, technical evaluation and others.

This fee varies for each lender and there is a minimum and maximum fee applicable. Typically lenders take 7 -15 working days to process any application.

Listed in the below table is the processing fee (minimum fee – lowest to highest) charged by various home loan providers in India.

Name of Lender% Processing Fees of the loan amountMinimum Fee (Rs.) excluding taxes
State Bank of India for all Central / State Govt. Employees0Nil
Punjab National Bank - Government Employees0Nil
Syndicate Bank - SYNDKUTEER SCHEME0Nil
Allahabad Bank for pensioners0Nil
Bank of Maharashtra (Waived off from 10Oct2016 to 31Dec20160Nil
Central Bank of India - Cent Home Loan PlusNARs. 500
Jammu and Kashmir Bank0.25Rs. 500
Corporation Bank - GHAR SHOBHA0.5Rs. 1000
UCO Bank - Pre Approved Home Loan0.25Rs. 1000
UCO Bank - Home Loan0.5Rs. 1500
UCO Bank - Top-Up Home Loan0.1Rs. 1500
Canara Bank0.5Rs. 1500
State Bank of India0.35Rs. 2000
ICICI Bank0.50% - 1.00% Rs. 2000
ICICI Home Finance0.50% - 1.00% Rs. 2000
Vijaya Bank - Upto Rs. 10 LakhNARs. 2000
HDFC (home loan, renovation, extension, plot, )0.5Rs. 3000
Allahabad Bank (other housing loan products)0.31% - 1.22%Rs. 3070
Karur Vysya BankNARs. 3500
Vijaya Bank - Above Rs. 10 LakhNARs. 4000
Dewan Housing Finance LimitedNARs. 5000
IndiaBulls Housing FinanceNARs. 10000
Axis BankUpto 1%Rs. 10000
YES Bank0.5Rs. 10000
Central Bank of India - Cent Home Loan Scheme0.5NA
Corporation Bank - GHAR SANSAR1NA
Dena Bank0.5NA
Indian Bank1.173NA
Indian Overseas Bank0.53NA
Oriental Bank of Commerce0.5NA
Punjab National Bank - General Public0.5NA
Catholic Syrian Bank0.5NA
Tamilnad Mercantile Bank0.5NA
L&T Housing Finance0.25NA

Note: In the above table NA denoted Not Available. You need to check with the bank to know the % fee.

Processing fee depends on the loan amount and purpose of loan (new house, renovation etc.). And higher the loan amount, higher would be the fee.

Remember that, in case the application gets rejected, not every lender will refund the processing fee. Only a certain percentage of fees is refunded. So it is best to get this clarified and get in written before giving money for further processing of the loan.

Additional reading – Tips on getting home loan easily.

One very important point to remember is that post Goods and Service Tax (GST) implementation; borrowers will have to pay marginally extra money. Earlier 15% service tax was applied on the processing fee. But after GST, the rate has gone up by 3% and borrowers will now have to pay a tax of 18%.

In addition to the processing fee, lenders also levy various other charges depending on the purpose of home loan (as mentioned above) taken. These charges further increases the burden on the borrowers.

Here are few of the charges/fees applied on home loan:

  • Bounce charges
  • Penal charges
  • Foreclosure charges
  • Pre-payment charges
  • Converting interest rate from fixed to floating and vice-versa
  • Cancellation of loan
  • Advocate’s fee
  • Valuer’s fee
  • Stamp duty
  • Loan transfer fee from one lender to another (most offer this free of cost)
  • Prepayment statement
  • Duplicate NOC
  • Revalidation of NOC

Remember that your loan selection criteria should not be dependent only on the interest rate. The above listed extra costs also need to be considered to calculate the overall money outflow. There might be more additional fees as well, which you need to check with the lender before finalizing. But the above listed ones are most commonly charged.

Home loan is considered to be the most risky for any lender even though the lenders keep the applicant’s asset mortgaged with them. And in case of non-payment of EMIs; lenders have legal right to take any action on the said property and recover their money. And if this situation arises, your total loss would actually be very high considering the fact that you have paid interest and other rates and most importantly the loss of property.

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10 Tips to Save Money on Car Loan: Short Tenure, Low Interest & more

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Decade earlier, owning a car was considered a luxury. However times have changed now. With increased earnings of Indians and growing distances, car has become a necessity belonging now. And as more and more companies are offering newer models, there is plenty of choice available for the interested buyers. And with plenty of loan options available in the market, buying the same has become more convenient.

Buying a car involves too much research especially the pricing part. But many people often forget that little bit of more research on car loan is also essential. Planned research is very important while seeking vehicle financing as it can save good amount of money provided your budget is fixed.

Here are some pointers on saving money when taking a car loan:

Do market research & compare prices:

Always do price comparison check at multiple lenders. And select lender offering best rate. While doing this – check for interest rate, processing fee, pre-payment fee and others.

Check Credit Report:

This one is for individuals who are seeking loan and not buying car by making full payment beforehand. First and most important thing to do is getting the credit report from the credit bureaus. By doing this you will come to know about the possible shortcomings in your credit profile. You can get credit report from official CIBIL website.

Many banks also offer credit report facility such as ICICI Bank, HDFC Bank. Details are available on their website.

  • Here’s the link of ICICI Bank to check credit score (Copy & paste it in your browser for opening) –
  • Here’s the link on HDFC Bank with an offer of 10% cashback on accessing credit report-

Avoid taking credit report from any third party services. If you already have taken credit then getting your credit rating checked is very beneficial.

Additional reading: car loan for CIBIL defaulters.

Reason why credit report should be first checked is car loan rejection and its implications. After making a loan application, if you come to know that your credit score is poor then chances of your application getting rejected increases. And this further leads to negative reporting in the banks data. And same status is sent to the bureaus.

Bargain on interest rate:

This tip works best for existing loan customer. If you are a regular EMI payer, then chances of bank reducing the interest rate are higher. Even if you are not an existing customer, you should still bargain for lowering the interest rate.

Do not every time trust on dealer:

When you buy car, dealer will offer car loan as per his/her choice. However this deal offered by the dealer may not be the best one. So always compare rates and select loan which is at your advantage in terms of money.

Do not over cross the budget:

Fancy items are always attractive. Same holds true for car. There are various car with fancy designs available in the market with varying price ranges. However one thing you should keep in mind is buy a car within your budget. There is absolutely no point in buying expensive car and pay large sum.

Read about minimum income required for car loan.

Do not apply with multiple lenders:

If the loan application gets rejected, then often people apply at multiple lenders. But this is a big mistake as your credit score gets impacted. Lenders report this to credit bureaus. Banks or any other loaner hates credit hungry borrowers.

Choose shortest tenure:

Earlier you repay the entire loan amount, higher would be the savings. By choosing the shortest tenure, you can save good amount of money on the interest as total money outgo will be on a lower side.

Make a down payment:

Try to make as much down payment possible. Higher the down payment, lower would be the car loan amount. And hence higher savings as interest payout largely reduces.

Car loan against fixed deposit:

If you have FD account with the bank and do not want to break it; then you can utilize the same to get car loan. Few advantages of FD against traditional loan are – interest rate offered is low; so higher savings, no processing fee is applied, documentation is not cumbersome, etc. Most importantly you will continue to get interest on the FD account.

Consider personal loan for car:

This is also an option and has it’s own pros such as car ownership remains with you, when you do not have money to make down payment and many more. Read it here.

Always remember that car is not an asset. Its value (i.e. price) decreases the day you buy it and further decreases as it ages. So try to save as much money you can on car loan EMI.

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7 Banks with Zero Processing Fees on Personal Loan & GST Impact

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We often hear and read about various articles about hidden charges by lenders such as processing fee, pre-payment fees, cheque bounce charges and many others. Actually these charges are not hidden as they are mentioned in the terms and conditions of the loan document. Reality is that applicants or borrowers do not pay attention to these charges and later blame lenders for not disclosing the charges.

In this article we’ll talk about the processing fee which is nothing but the fee charged by lenders for processing and completing the complete loan application. This fee is charged when you apply for home loan, personal loan, car loan etc. Other name for processing fee is administrative fees. And borrower has to pay this fees during the loan application.

However not every lender charges processing fee. And listed in the below table is the list of banks offering personal loan with zero processing charge:

  1. State Bank of India – Clean Overdraft
  2. Bank of India – Star Mitra
  3. Allahabad Bank – Loan for Pensioners
  4. Indian Overseas Bank – No fees for loan upto Rs. 25,000
  5. Punjab National Bank – For Pensioners
  6. UCO Bank – For Pensioners
  7. Vijaya Bank – Vswashakti (Only for Women)

What is the GST impact on processing fee?

Typically the personal loan processing fee is in the range of 0.4% – 2.5% in addition to the service tax of 15%. However post GST implementation; in addition to processing charge, Goods and service tax (GST) of 18% will be also levied. So the overall money going out of borrower will increase.

For e.g. if the personal loan amount is Rs. 9,00,000 (9 Lakh).

Before GST the total processing fee would’ve been Rs. 10,350 – Rs. 20,700.

After GST the fees would be in the range of Rs. 10,620 – Rs. 21,240

When should you prefer credit from such banks with no processing fee?

While taking personal loan, if the loan amount is high then it makes sense to look for lenders who charge zero processing fee. You should calculate total outflow while evaluating the lender. Processing fee should not be the only factor you should consider, as banks levy various other charges such as prepayment, partial closure, duplicate statement, cheque bounce charges etc. Check out banks charging zero foreclosure fee.

Why banks charge processing fee?

Putting time in doing activities such as verifying loan application, multiple documents, and other details involve human efforts and other operations cost. So cost of these efforts is what banks recover in the form of processing fee. Higher the loan amount, higher would be the processing fee.

If the loan application gets rejected, can you get refund?

Processing fee is refundable. You should ask banks before applying for the loan and get this confirmed in written. No verbal communication.

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Instant Personal Loan of 1 Lakh for Rs. 20,000 Salary: No Income Proof, Short Term

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Getting access to credit these days has become very difficult. Especially young working professionals or first time loaners face troubles due to lack of credit history. To make life easier for such individuals, new fintech startups have started in India offering personal loan for small amount quickly or we can say instant cash loans.

One such company is Early Salary offering instant personal loan but only through app. The minimum monthly salary required for the loan is Rs. 20, 000.

Details on Instant Loan from Early Salary

Commercial and other banks have strict eligibility criteria (CIBIL score, income, employer etc.) when it comes to personal loan. Moreover there are terms and conditions which makes the loan experience very painful such as pre-payment charges, processing charges, pre-fixed repayment tenure and many others. Most importantly the interest rate on personal loan is very high since it is an unsecured loan carrying high risk to the lenders.

Benefits of getting instant cash loan from Early Salary

This loan is ideal for foll. individuals:

  1. Who want to borrow cash instantly and salary advance is not possible.
  2. Who want money before their salary is credited
  3. Required loan amount is small
  4. Who want to save time and need instant cash for short period
  5. Who want cash on the go. Especially when you lose wallet and has no access to credit. Only thing you have is smartphone.
  6. First time loan seekers
  7. Who want to avoid cumbersome process of loan application at the banks


  1. Applicant should be a salaried professional
  2. Minimum salary required is Rs. 20, 000. Check out personal loan for low salaried individuals.
  3. He/she must have a PAN card
  4. Salary account is must
  5. He/she must have Facebook/LinkedIn account
  6. Must have smartphone

Features of quick cash loan from Early Salary

  1. Loan application can be done only through their app
  2. Maximum loan offered is Rs. 1, 00,000 (1 Lakh)
  3. Interest rate is low. For Rs. 10, 000 loan; interest rate is just Rs. 9 per day.
  4. Loan is granted for only a smaller term as low as 30 days
  5. Documentation is simpler. In fact there is no paper work involved. They only require bank statement and PAN number. No salary slip or income tax related documents required.
  6. Social score is a decisive factor in getting loan
  7. Loan amount is decided on the basis of bank statement and PAN number
  8. No security or guarantor required
  9. Disbursement is extremely fast. Early Salary claims to deposit money within 10 minutes* in case of repeat loans
  10. No foreclosure penalty
  11. Flexibility in repayment terms
  12. No laptop/desktop/tablet required for personal loan application. You can apply for instant cash loan through the smartphone.
  13. The process is highly secured.

When to use instant cash loan service:

It’s tempting to get quick cash at low interest and for a short term with minimal terms and conditions. However greed is a killer and when it comes to greed for money, it can put you in debt and make you financially distressed. So such services should be used only when there is a emergency cash required.

Reasons to use such loans are:

  1. Paying-off high interest credit card or loan
  2. You are currently in debt and want to improve credit score.
  3. Salary is not on-time
  4. Pay-off house rent/utility bills if salary deposited is irregular.
  5. There is a medical or other kind emergency and due to poor credit score and insufficient money in hand, arranging money becomes difficult.
  6. If you are travelling and lost your wallet and need cash on the go.
  7. You want to buy personal stuff urgently
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