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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Improve Credit Score: 11 Tips & Reasons for Poor Score

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Credit score is the gateway to the credit world. It is a three digit number which either helps you in achieving dream such as (buying home/car) or break the dream. Your credit worthiness is evaluated on the basis of this number.

This three digit number given out of 900 is statistically derived for every individual after evaluating their credit payment history (loan or credit card). Poor the number, higher would be the rejection chances of your loan or credit card application and vice-versa.

So what factors affect your credit score and how to improve the same?

Here are 11 ways to improve your credit score:

Pay bills on time:

Whether you are having financial crunch or not, make a habit of paying loan EMI/credit card bill before the due date. Because frequent late/missed payment badly impacts the credit score. So you are at loss in two ways – loss of money as you will have to pay extra money to the lender in the form of late payment fee with higher interest. And getting credit in the future becomes difficult as chances of rejection increases, since you have been a late payer in the past.

But sometimes, even a timely payer can miss paying the bill on time. Either he/she forgets to remember the last date. In such cases, make a habit to opt for direct debit facility. So on a prefixed date, money will be automatically debited from your bank account and paid to the card company or loaner. And this way, possibility of missed payment is nil.

Do not keep or apply for too many cards / loans:

Keeping too many cards in the wallet has become a status symbol. Flaunting it will not going to make you a rich person. But using the card as a rich person (when you are not the one) will definitely make you poor soon. If not this, then it will definitely affect your CIBIL score. Because in the eyes of lender, too many credit card or having too many loans, is a sign of credit hungry. Remember “Greed Kills”. So always rely less on credit be it credit card or loan.

Do not utilize complete credit keep it less than 60%:

Higher transaction limit on your credit card does not mean you have to ardently utilize it every month fully. Use your transaction limit wisely and do not overspend or use credit to the full limit. Once in a while is OK. But repetitive habit results in poor CIBIL score. It is recommended to utilize not more than 40% of your credit limit.

Do not apply for enhancing the limit:

Individuals have an habit of completely relying on credit cards. And this is an opportunity for the card companies to offer you credit enhancement. If they do not offer, then individuals ask lender to offer increase the credit limit. In both the cases, the card user is at risk. Because enhancing the credit card limit too often/applying for it multiple times, affects your CIBIL score. Because in the eyes of CIBIL, enhancement means person relies too much on credit. And such individuals can pose risk to the lender in the future.

Pay due amount fully:

Your monthly card statement has one enticing line. Minimum balance due is just Rs. X. This number is very small compared to the total due amount. Individuals think that paying minimum balance does not harm in any way. But this is not true. Lenders get an opportunity to trick you and then charge higher interest. And at the same time, lenders send this transaction details to the credit bureaus (e.g. CIBIL), which results in bad credit score. In the eyes of lender such individuals are at higher probability of turning into defaulter in the future and are not credit worthy.

Do not apply at too many lenders after rejection:

It’s very common that when you apply for a credit card or loan, it gets rejected. This mainly happens because of no credit history or poor credit history. But such individuals then approach to other lenders for their credit requirement. However this is an incorrect approach. After the rejection, your first objective is to understand the reason and act on improving the credit score. Applying at too many lenders is an invitation to poor credit rating.

Check out personal loan for poor CIBIL score.

Do not stop using credit:

If an individual is in debt, then the very first action they take is stop using the credit card in order to pay-off the debt first. However this is not recommended. Ideally you should continue using the credit card, though in small frequency and with smaller transaction amount. But never stop using it completely, because it leads to decreasing credit score.

Read about credit card habits that affect credit score.

Keep credit mix balance:

In the eyes of the lender, if an individual has only unsecured loans in his/her kitty then they view it negatively. Instead if they have a healthy mix of secured and unsecured loan then the risk is low for the lender. Keeping balanced credit mix helps to prevent negative impact on credit score.

Get CIBIL report once every 2 years:

If you have cleared all the loans/ended credit card, then verify whether CIBIL records have been updated or not. This is because, many times banks fail to update CIBIL about the transactions on time. And in the meantime if you apply for another loan/credit card and it gets rejected, then your credit score takes a hit. So always check CIBIL report.

Check tips on how to get CIBIL score.

Become guarantor, but be careful:

Generosity can be risky at times. If you become guarantor to someone and if that person defaults payment in the future, then the guarantor is the person lender will approach for making the due payment. And at the same, the credit score of guarantor will be impacted. So be careful when becoming guarantor whether you do it for your family member or friends.

Offer add-on card, but remember you are also at the risk:

If your credit score is good then lender often makes you eligible to apply for an add-on card in addition to the primary card you already hold. This card can be taken for your family member. But what many people do not know is that, in case of defaults made on add-on cards, the credit score of primary card holder also gets affected. So as mentioned above for guarantor, be careful for whom you are taking secondary card for. Credit rating agencies are emotionless and not at all generous like you.


Above mentioned tips are very simple. But still people do not take their credit repayment seriously or do not understand it’s importance. And they end up affecting their credit score. Good rating is extremely important for finance need. So always keep an objective of getting best score and achieve your dream.

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Personal Loan for Teachers: Min. Income Rs.5000, Loan Amt. 5 Lakh

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Being a teacher is considered to be the most respectable job. However in India, the salary offered to the teachers is very low especially in towns/villages. Because of this, getting a credit become difficult. For a lender, individual with poor salary is more likely to default as their repayment capacity will be poor.

In order to meet personal needs, many times teachers require personal loan. So in case of any emergency, teachers have to take out money from their own savings to meet the money requirement. There are lenders who offer personal loan for teachers especially and have low salary criteria.

Here’s the list of lenders offering personal loan for teachers, along with the income required and the loan amount:

Name of Bank/LenderMaximum Loan LimitMinimum Monthly Income Required
Indian School Finance Company Private LimitedRs. 1 Lac - Rs. 5 LacRs. 5,000
Canara BankRs. 2 LacsRs. 10,000
Axis BankNARs. 15,000
State Bank of India (Xpress Credit Personal Loan)Rs. 15 LacsRs. 5,000
Allahabad BankRs. 2 LacsNA
Punjab National BankRs. 5 LakhRs. 10,000 to Rs. 15,000
HDFC BankNARs. 15,000
Bank of BarodaRs. 50, 000 - Rs. 5 LakhRs. 6,500
Bangia Gramin Vikash BankRs. 1 Lac - Rs. 3 LacRs. 12, 500 - Rs. 17, 000
Karnataka BankRs. 5 LakhRs. 10,000
Dena BankRs. 1 LakhRs. 15,000
Indian Overseas BankRs. 5 LakhRs. 5,000
UCO BankRs. 10 LakhRs. 10,000
Central Bank of IndiaRs. 5 LakhNA
Oriental Bank of CommerceRs. 3 LakhRs. 6,000

There are multiple eligibility criteria for teachers depending on the lender as follows:

  • Most of these lenders offer loan only to permanent teachers
  • Salary account with the respective bank is must
  • If retired, individual should be drawing pension from the applied bank
  • Employees of only schools, colleges, universities
  • Employees of central, local and state government only

Other cheaper options for teachers to get personal loan:

Against securities: If the teacher has LIC policy, mutual funds, NSC or any other security; then he/she can pledge these securities. Instead of prematurely exiting or selling them, teacher can get personal loan against these. Compared to normal personal loan, such type of credit is worth recommended due to low interest rate and minimum documentation and not a very strict eligibility criteria.

Against fixed deposit: Another option to get loan is against FD. This is offered by most of the banks in India. And the interest rate offered is 2%-3% more than the FD interest rate. Again this type of loan is cheaper than normal personal loan.

Against Gold Jewelry: If any individual has jewelry and is in need of personal loan then they can pledge their ornaments as security with companies like Muthoot Finance, Manappuram Finance, and others. Even banks offer gold loans. In return, these companies will offer loan, which is at a lower interest rate due to the pledged security in the form of physical gold.

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After GST Pricing Impact on 180+ Most Common Products

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Finally, the single biggest tax reform the country has seen after independence i.e. Goods and Services Tax will be rolled out on 01st July 2017. It is also considered to be the most significant and complex economic reform for India.
Under GST, multiple central and state taxes will be combined into a single tax.

Tax on many of the goods will be significantly reduced benefiting Indian consumers. Indian manufactured products will get more exposure in the international markets leading to growth in the economy.

Since the start date is nearing, people are most interested in knowing what is going to be cheap and expensive after GST rolls out. Especially people are keen to know how the price of basic household items will change after GST implementation and how their budget will be impacted.

So here’s the list of most commonly used goods/commodities and services which are expected to see rise or fall in their prices after GST implementation:

Food related items that will be CHEAPERFood related items that will be EXPENSIVEPersonal care items that will be CHEAPERPersonal care items that will be EXPENSIVEUtility Items/Services that will be CHEAPERUtility Items/Services that will be EXPENSIVEExempt from Tax
Cooking gasAerated DrinksSoapHair DyesSmartphones made in IndiaTelevisionFresh fruits
Mustard OilInstant CoffeeToothpasteAfter Shave LotionsLarge carsMobile phone billsVegetables
NoodlesChewing gumsTooth powderDeodrantsSports Utility Vehicle (SUV)RefrigeratorPulses
Aluminium foilsWhite ChocolateHair oilShampoosElectric vehicles -
2 wheeler and 3 wheeler
Solar PanelBreads
Milk PowderCocoa chocolatesKajalSunscreenTwo wheelersRestaurant bill in AC restaurantsHealth
Butter MilkWafers coated with chocolateBeauty productsTaxi aggregatorsMovie ticketsEducation
Unbranded Natural HoneyCustard powderPerfumesCar batteriesCigarettesMilk
CheeseBranded foodgrainsAyurvedic medicinesPaintsTobaccoPaneer
Dairy SpreadsBranded floursMedicinesFansCommercial VehiclesCurd
SpicesWater heaterLife insurance premiumEggs
WheatAC Train TravelGeneral insurance premiumMeat
RiceClothing below Rs.1000TextileWheat
FlourInsulinBranded JewelryRice
Groundnut OilAgarbattiWifi and DTH servicesAnimal Slaughtering and services
Palm OilCementAir conditionerNon AC train travel in local
Sunflower OilCoalWashing machineNon AC train travel in metro
Coconut OilKerosene PdsEating out in 5 star hotelsMaida
Mustard OilX-Ray Films For Medical Use Sporting eventsBesan
SugarDiagnostic Kits And ReagentsGamblingSalt
Palmyra JaggeryPlastic TarpaulinCasinosPuffed rice
Sugar ConfectionerySchool BagBusiness class air travelOrganic Manure
PastaExercise BooksFinancial transactions and banking chargesAnimal feed
SpaghettiKitesCourier servicesFire wood
MacaroniChildren's PictureGoods transport
FruitsDrawing Or Colouring BooksSmall cars
Vegetable ItemsSilk And Woollen FabricsLuxury Goods
Several Food ProductsHelmetSchool fees
PickleEconomy-Class Flight FareMobile phones made outside India
MurabbaFly Ash Bricks BlocksAntique gold coins
ChutneyGlasses For Corrective SpectaclesMusic systems
SweetmeatsFixed Speed Diesel Engines Of Power Not Exceeding 15HpHome theatres
KetchupTractor Rear Tyres And Tractor Rear Tyre TubesHybrid cars
ToppingsWeighing MachineryGold
Instant Food MixesHotel room booking below Rs. 1000LED Television
Mineral WaterTheme park visitsElectronic iron
IceSporting eventsJuicers
LPG StoveMixers
ForksHotel room booking above Rs. 1000 will have different tax
LadlesLuxury hotels stay
SkimmersBranded Gutkha
Cake ServersSmoking mixtures for pipes & Cigarettes
Fish KnivesPaints
LPG domesticStudents' colours
Kerosene PDSAC train tickets
Ice Creams
Processed food
Food grains

The goods and service tax is currently fixed under four tax slabs: 5%, 12%, 18%, and 28%. There has already been delay in GST implementation. However 01st July 2017 has now been finalized.

So as an Indian we should support one nation – one tax system. And remember big change happens for good. Government has made sure to not burden common man with high inflation.

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2017: Aadhaar Card for Banking, Income Tax – 5 New Rules to Know

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After the successful demonetization activity which was primarily implemented to curb black money, control terrorism activities,  government has now made Aadhaar card mandatory in the following banking & income tax related purposes to further make life of tax offenders miserable.

New account opening: Whether you want to open a savings or current account, providing Aadhaar card number will be mandatory for the new applicants.

Existing bank account holders: Before December 2017, all the existing bank account holders will have to provide their 12 digit Aadhaar card number to the bank. Failure in doing so will make your bank account invalid.

Financial transaction above Rs. 50, 000: Until now for high value transactions above Rs. 50, 000; PAN card was must. However moving forward, Aadhaar number will be required for making any national or international money transfer for the amount above Rs. 50, 000.

Income Tax Returns: Until now individuals with income below the taxable limit were not required to file IT returns. And whether or not such individuals had PAN and Aadhaar card did not matter. However as per the government rule announced on 15Jun2017; any individual having PAN and Aadhaar card will have to link both these identity cards, whether or not income tax is filed or not by them. If this is not done (before the yet to be announced date), then permanent account number (PAN) card will become invalid. If Aadhaar number is not available then Aadhaar enrollment ID will be required.

Anyone having PAN card as on 01July2017, but eligible to get Aadhar card will have to notify IT department.

This is as per the section 139AA of the Act.

PAN card application: Any individual applying for a PAN card after 01 July 2017, will be required to quote 12 digit Aadhaar card number or Aadhaar enrollment ID.

What do you think about this law by government? Share your thoughts in the comment section below.

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Low Income Personal Loan from Co-operative Banks

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In case of emergency e.g. medical treatment or unexpected money requirement; people normally arrange money from their own saving or ask friends or relatives for financial support. However it’s not always possible to arrange money at the time of need. And during such times, financing from bank is the best recommended solution. There are many lenders offering personal loan for such need.

However getting personal loan is not very easy. Rising interest rate and stricter eligibility criteria makes it difficult to get.

Normally when we think of getting personal loan; commercial banks such as ICICI Bank, SBI, HDFC Bank & others first come to our mind. And individuals first contact such prominent lenders for their need. However these banks have strict terms and conditions and chances of loan application rejection is high. This is because, these banks want to stay away from defaulters.

But there is another category of bank in India – co-operative bank which offers personal loan. Their income eligibility criteria is low. So even a poor income earning individual has a good chance to get personal loan.

Here are three co-operative banks offering personal loan to low income earners. Individuals who are permanent salaried and self- employed or businessman are eligible to get loan.

The table below displays minimum monthly income required and maximum loan amount granted:

Name of Co-operative BankMinimum Monthly Salary Required (in Rs.)Maximum Loan Amount
Abhyudaya Co-operative Bank80005 Lakhs
The Andaman and Nicobar State Co-operative Bank Ltd.50002 Lakhs
The West Bengal State Co-operative Bank Ltd.200010 Lakhs
City Union Bank650050000

Note: City Union is not a co-operative bank. But since their income requirement is low, it has been included in the list.

Poor salaried can easily get personal loan from these co-operative bank provided they meet other eligibility criteria as follows:

Membership: In order to get personal loan; applicant has to become member of the bank. For this, they need to buy shares. And depending on the loan amount, shares has to be bought. For e.g. In case of Abhyudaya bank, the membership fee is Rs. 100 for the loan amount of Rs. 1 Lakh. And for higher amount, the requirement is of Rs. 2000.

In addition to the membership, the required documentation has to be done.

The loan amount can be used for any purpose such as:

  • Buying electronic gadgets or appliances
  • Repairing or renovation of house
  • Medical treatment
  • Marriage related expenses and others.

More details and advantages of loan from co-operative banks:

  • Loan amount is small
  • Low interest rate compared to commercial banks
  • If membership is continued for a longer duration then medical benefits are also offered. This benefit varies for each bank.
  • Flexible terms and conditions. Not very strict.
  • Nil processing fee
  • Nil prepayment fee
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