Prapti Scheme: Cheapest Home Loan @4%, Flexi Repayment

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For any type of loan or credit card, the most important thing lenders look for is the income of the applicant apart from your CIBIL score. For higher income individuals getting credit is not a cumbersome process as long as their CIBIL score is good.

However for low income individual’s it is very difficult whether it is a credit card or loan. There are credit cards for low income individual’s but getting loan especially home loan is almost impossible unless and until they have good amount of money to pay as a down payment (i.e. initial payment made when taking something is bought on credit). Check out personal loan for poor income earners.

But there is a good news for low income earners looking to buy their own house. Tata Capital Housing Finance (TCHFL) has launched Prapti Scheme. It is a housing loan scheme for poor income earners with subsidized interest rate starting from as low as 4% per annum. The scheme is under the Government of India’s Pradhan Mantri Awas Yojana (PMAY) and includes the subsidy PMAY offers.

Prapti Scheme Features:

FeaturesPrapti Scheme
Interest RateStarting from 4%
Annual Household Income RequiredMinimum Rs. 6 Lakh per annum
Loan repayment flexibilityYes
Loan conversion chargesNo
Target audienceLower income, economically weaker section, SC/ST and to women residing in the periphery of urban areas.
Target locationsMetros, Tier-I, II & III cities as identified by the PMAY initiative
Loan TenureNot yet announced

Prapti – Home Loan Scheme – Contact Details:

Interested home loan buyers can reach following official contact points:

  • SMS PRAPTI to 5616161 from any mobile phone
  • Call 1800209 6060

Affordable housing is the main objective of Prapti Scheme. And by offering flexibility in loan repayment, low cost housing will definitely get a boost and dream of million Indians will become a reality. Currently there are two options when taking a loan from any bank – fixed and floating. And shifting from one type to another carries additional charges. But in Prapti Scheme there won’t be any such charge, which is a very attractive feature and will benefit low salaried people the most.

Even if there is lot of unsold houses in India due to low demand, the loan rates are still on a higher side making buyers to stay away from buying a home even if developers offer discounts.

Other loans available in the market requiring low income:

Axis Bank – Asha Home Loan – Is another home loan option for low income group individuals. Monthly income required is minimum Rs. 8000 – Rs. 10000 depending on the location. You can read more details about this home loan here.

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Health Insurance for Dengue: Low Premium, Coverage, Benefits, How to Buy

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Dengue also called as bone breaking fever, has become an epidemic disease in India and every year over thousands of people succumb to dengue. It is spread through the bite of mosquito and is more prevalent during monsoon and runs uptill November. The symptoms are so severe that there is no alternative to hospitalization. There were 1, 00,000+ reported cases of dengue in the year 2015, and the number is expected to rise in 2016.

Those who successfully get treated for dengue actually have to shell out no less than Rs. 50,000 from his/her pocket on hospitalization. The overall treatment cost mainly includes hospitalization, medical tests, medicines etc. Medical tests are not covered by insurer offering dengue cover.

Most commonly asked question by people today is – whether any specialized health insurance for dengue is available in India to avoid financial impact on one’s pocket. The answer is YES.

There are three ways you can get dengue cover in India:

  1. Standard health insurance: When you already have insurance policy and the insured person or family members covered in the family are diagnosed with dengue and hospitalized, then your insurer will cover the treatment cost. But this policy only covers medical expenses incurred during inpatient treatment and not the outpatient treatment cost. So insured person will lose out on no claim bonus when you claim for dengue.
  2. Standalone medical insurance for dengue: For those who do not have any health insurance plan, buying a specialized health plan for dengue is highly recommended. And especially for individuals staying in areas where the disease is widely spread, it is worth buying insurance plan for dengue. Ofcourse, it is must even for people with standard indemnity policy. The benefits of this plan is mentioned below.
  3. Group cover: If you have insurance from your employer then you can make use of it. This way you can continue to get no claim bonus on standalone health plan.

Benefits or features of specialized medical insurance for dengue:

  • In-patient and out-patient treatment costs are covered
  • 100% sum insured is paid provided the claim is legit and meets terms and conditions of the insurer.
  • No pre-medical tests are required
  • Premium is fixed for all ages
  • Waiting period is minimum but varies with each company
  • Pre and post hospitalization costs are covered
  • There is no sub-limit and co-insurance (i.e. co-pay clause)

Exclusions:

  • Unlike standard policy requiring medical tests for specialized cases, specialized policy for dengue does not mandate medical tests. And they can be bought online or offline from various insurance companies as mentioned below:
  • You should not be suffering from dengue

Which companies in India offer specialized health insurance plans for dengue?

Listed in the below table is the list of insurers offering specialized health insurance policy, name of the product, along with the premium and insured amount. Standard health insurance policies will also cover against dengue.

Insurance CompanyPlan NameAnnual PremiumSum Insured
Apollo MunichDengue CareRs. 665 (including taxes)Rs. 50,000 & 1,00,000
DHFL PramericaDengue ShieldRs. 365/annum. You can even pay single premium for 5 years and save 21% on premium.Rs. 25,000, 40,000 & 50,000

Claim process:

Is very simple & straight forward compared to claims made for others. You need to submit following common documents apart from the ones specifically asked by the insurer:

  • Proof of dengue
  • Hospitalization proof
  • Hospital bills
  • Outpatient bills, if covered under the policy

Note: Before buying a policy, please check with the insurer on above mentioned benefits and/or additional terms & conditions. This general rule applies to any type of policy you buy.

How to treat at home, is it possible?

Dengue is a self limit and treatable at home.  But it is highly recommended to consult medical practitioner before using any self medications. Watch out this video by Baba Ramdev on treating dengue at home:

General preventive measures:

  • Keep surroundings clean
  • Remove water saturated in coolers, pots etc. It helps in reducing mosquito habitat
  • Make use of and apply natural mosquito repellent oils such as lemon eucalyptus, lavender, neem, and cinnamon oil.
  • Use mosquito net
  • Plant mosquito repellent plants such as feverfew, lavender, catnip in your house. They are less space consuming.
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LIC Premium Payment: 5 Online & 4 Offline Renewal Options

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Life Insurance Corporation of India Limited is India’s largest insurance company in India. And with such a widespread customer base, providing hassle-free service is of utmost important and one of them is policy payment during renewal. Although LIC offers multiple options to purchase life insurance policy, the same holds true for making premium payments whether it is fresh or renewal.

LIC premium payment options:

Table below shows all the options provided to the insurance policy holders:

Online OptionsOffline Options
LIC WebsiteVia cash at LIC branches
Electronic Clearance System (ECS)Through LIC agents
LICMobile appAuthorized franchisees or collection centers
Talktym eWalletSMS and ATM (only for Corp bank customers)
Axis bank & Corporation bank Website

LIC offers five ways to pay premium online:

  1. Internet banking: Visit official website of LIC – https://www.licindia.in/ and click on Pay Premium Online link. Three payment options are available viz. credit card, debit card, and net banking. You can either be a registered user or also pay without registering on the LIC website.
  2. Mobile App: For this you need to download official app – LICMobile on your smartphone.
  3. Talktym eWallet: Another convenient way to pay LIC premium is through Talktym eWallet. The benefit of using eWallet is one click payment and loyalty points for everytime payment is done. It also saves lot of time. Money is directly debited from your credit card or bank account and you receive transaction reference number as an acknowledgement receipt. Within seven days you can see payment being reflected in your insurance account.
  4. Electronic Clearance System: Through ECS facility, payment is automatically debited from your bank account on a set date and remitted to LIC. But make sure your bank account has sufficient balance. Otherwise a charge of Rs. 125/- will have to be paid along with late fee.
  5. Axis bank and Corporation bank: These two banks are authorized to accept LIC premium payment at their specified branches. Corp bank also offers payment through SMS and at ATM.

Details required when renewing online: Every policy holder should keep – policy number, premium amount, Date of birth, mobile number, and E-mail address handy. These details are required for all online payment options explained above.

Life Insurance Policy Renewal – 4 Offline Options:

Access to internet is not available everywhere in India. Since LIC policyholders are spread across the country, online renewal payment becomes difficult especially for people residing in remote places. So for people from these locations, there are various offline premium payment options as follows. This also includes alternate channels of premium collection.

  1. LIC branch offices: You can also visit any LIC branch office and make payment via cash, cheque, demand draft.
  2. LIC Agents: You can visit any authorized agents and make the payment in cash or cheque. Agents will then provide signed acknowledgement receipt to the policyholder.
  3. Authorized partners: You can visit Axis bank and corporation bank and pay LIC premium through cash or cheque. Remittance is then done to LIC via these partners.
  4. Authorized collection centers: Through official franchised collection centers of APOnline (only available in Andhra Pradesh), MPOnline (only available in Madhya Pradesh), Suvidha Infoserve Pvt. Ltd., Easy Bill Limited. For this, you need to visit the collection centers and pay money via cash or cheque. Money will then be remitted to LIC via these centers. Make sure to collect payment receipt for safer side.

Why take a copy of premium payment receipt?

After renewal payment, make sure to save acknowledgement receipt which acts as an official investment proof under section 80C of Indian income tax act. Also in case of any disputes, this receipt can only help you.

Late payment impact: There might be times, when you fail to make annual payment either due to lack of funds or you forget even in the 30 days grace period. In such cases, LIC charges a penalty of 9.5% of the premium value. For e.g. if the premium amount of Rs. 10,000 is delayed by 3 months, then renewal amount inclusive of 9.5% late fee will be Rs. 10,245.

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HSBC Credit Card Payment: 13 Options – Online & Offline

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In order to provide convenience to their customers, HSBC offers following 13 options to make credit card bill payment.

8 Online Options: There are multiple ways to pay HSBC credit card payment. This includes from HSBC & other bank’s online facility.

Here is the table showing all the payment methods along with the details of each.

From HSBC BankFrom Other BanksOffline Options
WebsiteNEFT
Cash payment
Mobile AppVISA money transferAt HSBC ATM
Mobile WebsiteECSMail cheque/draft
Direct DebitBill DeskPayment over phone
Dropbox

From HSBC Bank:

  1. From HSBC website: Through internet banking you can pay your monthly bills in a hassle-free way. The steps are very simple. Just login to HSBC netbanking using username and password provided by the bank. Visit credit card section and you will see due amount. Just click on paynow and complete the payment process. You can either pay minimum amount or full payment.
  2. Mobile website: Process is similar as mentioned in the above option. Only difference is you need to open the mobile version of the website on your smartphone.
  3. Mobile app: Almost every bank now offers app to provide good customer experience. HSBC’s app name is HSBC Mobile Banking and is available on Android and iOS store. Prerequisite for using the app is that you need to be a registered user of personal internet banking with the bank.
  4. Direct debit: This is considered to be the most convenient option to pay credit card bill. You just need to enter card details once and set date on which money to get auto-debited from your HSBC account. On the set date, money will be automatically debited and transferred to the card account. No need to remember due date every month.

4 payment options from other bank:

  1. NEFT: With this you can pay monthly card payment from account held at non-HSBC bank. You will have to login on the bank’s website and enter 16 digit card number and IFSC code which is HSBC0400002.
  2. Bill Desk: Another option provided by the bank is bill desk. Visit http://billdesk.com/hsbccard/ and securely pay the bills from account held at any bank. You will find almost every bank listed on billdesk. Keep following details handy: 16 digit card number, E-mail ID and mobile number as mentioned in the bank’s record. The transfer is instant.
  3. VISA money transfer: Yet another fastest way to pay credit card bill is from the card held of another bank.
  4. ECS: You can also allow HSBC bank to directly debit money from another bank account on a set date. With this, you can avoid missed payments which often impacts your credit history. Check out how to improve CIBIL credit score.

5 Offline Options:

  1. Cash payment (over the counter): This option is not recommended as it is time consuming as you have to visit bank physically. Moreover Rs. 100 is charged by the bank for cash payment.
  2. At HSBC ATM: You can deposit cash or cheque at any of the ATM. But remember that, the day you deposit does not mean the card bill is paid. It takes 2-3 business days for the actual payment. So make sure to deposit atleast a week in advance. Or else use other methods mentioned in this article.
  3. Mail cheque/draft: You can mail cheque or demand draft of any or same bank and send it to the nearest HSBC bank’s branch.
  4. Payment over phone: With phone banking, you just need to dial following toll free numbers preferably from your registered mobile number. 1860 108 7788 or 1860 500 2277. Keep HSBC Credit Card or Banking Account / Phone Banking Number & Phone Banking PIN details handy before calling.
  5. Dropbox: Although this option is available in Mumbai, it is not recommended especially if you are depositing cash. This is because bank charges Rs. 100 in addition to other fees as per their terms and conditions. If you still want to use this option, then cheque or DD should be preferred. In Mumbai, dropboxes are located at multiple places in western, harbor, and central railway lines. Apart from this, dropboxes are also available at domestic and international airport terminals, inside 586 societies. You can get the list of dropboxes here.

Which option is best?

If you are looking for convenience and time saving, then prefer online option with direct debit from your bank account. This way you don’t have to remember paying bills every month. However make sure your account has sufficient balance to avoid penalty.

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5 Factors Unknowingly Impacting CIBIL Score with No Credit/Loan

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Credit application is like a marksheet. In order for any college to grant you the admission, they will check your marksheet and based on the marks you will be offered a seat in the college. i.e. whether student is worth giving admission or not is dependent on his/her report card. Similar is the case when you apply for credit card or loan.

Banks want something to prove that an applicant is credit hungry or not. They cannot simply give credit to anyone. And banks do this by getting credit report from CIBIL. And the report is called as CIBIL report or Credit Information Report.

The report mainly consists of two important information:

  1. Credit usage report such as number of ongoing credit/loans, repayment history, default payment and many others.
  2. Personal details such as PAN number, residential address, etc.

Based on credit usage, bureaus then calculate a score known as credit score. You must have various articles on the factors that impact your credit score. If you want to know then read article on this link.

There are certain factors which unknowingly affect your CIBIL score even when you don’t have any ongoing credit. And these are as follows:

  1. Multiple applications: Not many of us are aware that every inquiry for loan or credit card gets reflected in the credit report. And within a short span of time, if multiple applications are made at one or multiple financial institutions, then for lenders this means applicant relies heavily on credit.
  2. Becoming guarantor: However there is one factor which can impact your credit score without you being taking the credit. That is Guarantor. Although your motive when at the time of becoming guarantor was to financially assist the applicant. But he/she can turn up defaulter in the future. In such cases, banks have legal rights to recover the money from guarantor. In addition to this, your CIBIL score also gets impacted.
  3. Banks do not update CIBIL: Make sure every bill is paid on time and fully and the same is reported to CIBIL. Although the reporting part is not in your control as it is bank’s responsibility. But it’s your duty to periodically cross check your financial transaction details (once in a year or before applying for loan or credit card) with CIBIL. As per rule, banks must update their CIBIL database within 45 days. If the same is not updated then your score will be affected.
  4. NOC & NDC on account closure: When you wish to close your card account then it is your duty to ask lender to provide no objection certificate and no dues certificate. NDC is especially very important and that too on bank’s official letter head bearing signature and designation of the authority. This legal document will act as a proof of no outstanding amount remaining. Moreover when you apply for loan or credit card at some other bank then you may be asked to furnish NOC or NDC or both. Also make sure, the status of account closure is reflected in CIBIL’s record, otherwise it will negatively impact your CIBIL score.
  5. Not using credit card: Once you get a card, you should use it diligently. But being an inactive card user will impact your credit score when the card has debt. What happens is that the card company closes your account when it is unused for a long time.
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Invest Rs.1000 in Domain Name & Earn Over Lakhs/Crores

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The subject line of this post looks fishy or gimmick. But trust me, its not. Ever imagined any investment less than a Rs. 100 can fetch you over thousands, lakhs or even more?

Years back your grandfather must have purchased house/land for some 100 or thousand rupee whose worth today might be in Crores. But buying same piece of property today at the same price is IMPOSSIBLE. Real estate as an investment product, is now only for riches whether it is buying a property in a metro or tier-II cities.

So how can you still invest small and get excellent returns which are worth in thousands or lakhs. This is possible through domain investing, a very common type of investment in a technical industry. It is an investment type where you can invest money in buying a website domain name (for e.g. hotels.com or diamonds.club).

Now look at below mentioned domain names and the price which they were sold for:

Domain NamePrice Sold At (in Dollars)Equivalent INR
hotels.com11 Million73 Crores
internet.com18 Million120 Crores
privatejet.com30 Million201 Crores
FB.com (Purchased by Facebook)8.5 Million57 Crores
Business.com7.5 Million50 Crores
Toys.com5.1 Million34 Crores
English.club17, 50011.75 Lakhs
Diamonds.club82485.5 Lakhs
S.club37, 98426 Lakhs

Whoever were owner of these domains, must have purchased them at a fraction of cost. And after holding for few months/years, they sold at above mentioned whopping sum. The returns would surely incomparable to any form of investments today.

How much does it cost to buy a domain name?

Two factors play a very important role in domain buying – name of the domain and the cctld (country code top level domain). Higher the demand for the name and cctld, higher would be the price for which it would be sold. But note that it’s very difficult to find such domains because they are unavailable or already purchased by someone else.

According to the domain experts, following TLDs are always high in demand:

  • .com
  • .net
  • .guru
  • .club
  • .live
  • .xyz

And better the name of the domain (i.e. with a high demand) e.g. hotels, london, dollars etc., greater would be its monetary value.

Where to purchase domains from:

There are many online companies’ websites you can purchase and put your domains for auctioning i.e. selling. Prominent and trusted companies across the world are:

  1. GoDaddy (Also provides auctioning service)
  2. Sedo (It’s a domain marketplace i.e. you can only sell/purchase)
  3. Google Domains (You can only buy domain name)
  4. Dreamhost (You can only buy domain name)
  5. Flippa (It’s a domain marketplace i.e. you can only sell/purchase)

If you visit GoDaddy website (https://in.godaddy.com/) and search for insurance.xyz then the selling price is Rs. 44 Lakhs, dollars.xyz is available at Rs. 20 Lakhs and so on.

Are such worthy domains available easily in the domain marketplace?

Answer is No. But there are many untapped domain names which you can search, buy and put for selling.

How many domains should be purchased?

There’s no definite number. What matters is the name and TLD. Quality domains will sell the most and early. It’s like a real estate. Best one would fetch you the most money.

How much time it takes to sell a domain?

Again there is no definite answer to this. If the domain is good, you can even sell it within a week.

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Personal Loan for Small Amount: Rs. 50000-Rs. 2Lac: Buying Tips

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Personal loans are the quickest and easiest to get loan type. Within a week of application you can get money from the lender provided you meet all of their eligibility criteria.

Lenders use every possible tricks to entice people. And why not higher interest is what makes lenders profitable. The reason for charging high interest is because there is no need of security or guarantor. And moreover you do not have to specify the reason for taking loan and you can use it for any purpose. For e.g. you can use it for marriage expenses, pay-off other loans/credit card balances and many others.

There are multiple options to get personal loan and most follows:

  1. Traditional approach to banks: public, private, co-operative banks or non-banking finance companies (NBFC).
  2. Peer to peer lenders (PTPL or P2PL) such as lenders.in, lendenclub.com and many others.
  3. Against FD. Read more on getting loans against fixed deposits in India.
  4. Against LIC policy

With so many options available, whom should you approach for taking personal loan for small amount? Here we will consider loan amount of less than 2 lakhs.

As listed above, you have good number of options for taking loan. But question is whom to select when loan required is very small and what factors should be taken into consideration?

So here are the tips before buying personal loan:

  1. Low interest: Saving money by opting for interest rate should be your ultimate objective when taking loan for small amount. So opt for low interest personal loan, as you’ll have to pay less amount of money by the time tenure ends. Buying personal loan for amount let’s say of Rs. 50, 000 from peer to peer lending companies will require you to pay less interest rate compared to banks. Moreover on PTPL market place you can bargain with individual lenders and get best price.
  2. Faster processing: Normally personal loan is required when there is an immediate need of money. If you select a bank which takes lot of time to go through your application and approval then it doesn’t make sense to choose such lender. But if you are getting fair deal even if there’s a delay then choose a profitable option.
  3. Quickest transfer: Loan should be credited to the borrower’s account as fast as possible after approval. This factor should be considered by individuals with urgent cash requirement.
  4. Low/Zero pre-payment and pre-closure charges: Apart from higher interest rates, lenders also apply pre-payment and pre-closure charges. The latter naturally is not very profitable for them as they will eventually end up earning less money compared to the money received when full tenure is over. So if you are taking personal loan for small amount such as Rs 50, 000 or Rs. 1, 00, 000 then certainly avoid companies charging these two fees. Best recommended are peer to peer lenders. One of the difference between P2PL and banks is no charge on pre-closure and pre-payment charges on loan account benefitting to individuals with low or poor income. Check out how poor earners can get personal loan.
  5. Hidden charges: Now comes the most important factor often ignored/overlooked by the borrowers or not disclosed by the lenders clearly or in advance. And PTPL companies gain an upper edge over banks. Most of them do not have any hidden charges compared to banks.
  6. Repayment tenure: As mentioned above longer term, earns lenders more. But for a small amount longer tem does not make sense especially when the applicant is from a poor background.

If small sum of money is needed then ideally you should ask your relatives or friends. You will end up saving good amount of money as interest won’t be applied.

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Peer to Peer Lenders Vs Banks: 26 Features Comparison

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In a credit hungry world, access to getting credit from big financial institutions is very difficult due to the ever rising defaults affecting profits. And even if your loan is approved after lot of efforts, worry does not end here. Because finally getting money is what consumers expect but it is time consuming. And that’s where peer to peer lending companies gain an upper edge. They nullify the involvement of banks.

“Simple borrowing is the motto of every peer to peer lending company”. 

Advantages for lender: They earn more interest, which means higher returns, compared to savings account or other investment products.

Benefits to borrower: Take a loan at low interest and pay loans/credit with any bank with higher interest. Chances of getting loan are higher as P2PL does not solely rely on CIBIL score. Check out how to get personal loan when your CIBIL rating is low.

PTPL vs Banks

Here are the comparison or key differences between peer to peer lenders and traditional financial institutions:

FeaturesPeer to Peer Lending (PTPL) CompaniesFinancial Institutions
Who is the lenderIndividuals/CompaniesBanks
Loan amountSmall compared to banksHigher loan can be disbursed depending on the applicant's status
Interest rateVaries but low compared to banksVaries but high compared to PTPL
Is interest rate fixed?No. It is decided between lender and borrowerFixed as decided by bank
Is EMI fixed?No. Decided between lender and borrowerFixed as decided by bank
Loan approval processFastFast but not with all the banks
Loan amount transfer speedWithin 3 daysTakes minimum 1 week
Charges involvedListing, processing, late payment etc. but less compared to banksVarious charges such as processing, prepayment, preclosure etc.
Hidden chargesNoYes
Late payment chargesYesYes
Prepayment/Pre-closure chargesNoYes
EMI payment optionsAuto-debit is mandatory by most. But varies with each lenderMultiple options - direct debit, cash, cheque etc.
Loan evaluation processPersonal, Professional, Social and online spending behavior is checkedSame as PTPL but social and online spending behavior is not assessed
Data securityHighly secured and not shared or used for any other purposeHighly secured. But banks can use data to offer other products.
Credit risk assessmentDone. But not by every lender.Done by all banks
Credit bureau data sharingShared but not by every lenderDone by all banks
Documentation processVery simpleTedious
Document upload option on websiteYesNo
Recommended to
Poor income, low CIBIL score, no credit history, small loan amountEveryone
Loan rejection chancesLowHigh
Collateral NeededNoNo. But it is required, when taken against FD or LIC policy.
Is loan guaranteed?Higher chances compared to banksDepends majorly on credit history
Regulated by RBINoYes
Any free services offered?Few lenders offer free credit reportNo
Cancellation chargesVaries but there is no charge if cancelled within 24 hoursYes
Loan amount transfer processDirectly to the borrower's bank accountCheque, demand draft or NEFT

How it is profitable for lenders to offer loan?

Obvious question that comes to mind is how PTPL companies manage to be profitable even though they charge less interest?

Here are the main reasons why P2PL companies make profit:

No transaction cost: Since the whole process right from application to loan disbursement is online, there is no transaction charge involved. So less manpower and reduced operating cost.

Higher number of applicants: And as mentioned above, the pool of applicants is large, loan amount granted is small, and interest rates offered are on a lower side. So money pooling is at a bigger scale and overall interest earned is high compared to the rates offered on other investment options for e.g. savings account.

Check out more details on getting personal loan from peer to peer lenders.

Basically P2PL’s are risk takers offering credit at low interest rates. So individuals seeking personal loan for small amount or with low income or poor CIBIL score or no credit, can apply for loan at peer to peer lending companies. The chances of getting loan are higher as there are multiple lenders i.e. individual’s or entities. Moreover you can bargain with each lender on the loan amount and interest rate.

And be it India or anywhere in the world, the importance of PTPL is growing at a rapid pace.

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Peer to Peer Lending: Personal Loan for Low Salary/CIBIL Score & No Credit

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Proliferation of advancing digital technologies is helping financial institutions connect with borrowers with ease. And at the same time, getting a credit is becoming less headache to the borrowers. This is because they now have ample of avenues to compare and get any type of credit such as home loan, car loan, or credit card etc.

And one of the most in demand category of credit is the personal loan. These are unsecured loans and are considered to be the most easy to get category of finance. However ease of getting a loan is applicable to specific category of individuals and these are people with good CIBIL score.

But not everyone can have a decent score to qualify for credit. And considering India’s strict regulatory rules, it has become very difficult for the following three categories of individuals to get personal loan:

  • Poor or low CIBIL score
  • Poor salaried
  • No credit history

Banks do not take interest in lending money to such individuals. This is because financial risks are involved due to their poor credit history or no credit history at all. Possibility of defaults resulting in loss to financial institutions is the main reason for the loan denial. Check out how low salaried can get personal loan.

Because of this, fulfilling money requirement in the time of utmost need becomes difficult for borrowers. Although there are many other ways to get personal loan such as against FD or LIC policy etc. but this is not possible for everyone.

This is where peer to peer lenders come to rescue. And it is a good opportunity especially for above mentioned individuals to apply for personal loan at peer to peer lenders.

What is peer to peer lending?

These are online marketplaces (i.e. websites) through which borrower can connect with multiple lenders (basically individuals/companies). Borrowers upload their details on the website and lenders will access these details and then take a call whether to provide loan or not. So basically PTPL make personal finance accessible similar to financial institutions but difference is there is no involvement of bank in the process.

Here are the eight prominent PTPL (peer to peer lending) companies in India:

  1. Lendbox
  2. Indialends
  3. Faircents
  4. Cashcare
  5. i-lend
  6. Lendenclub
  7. RupeePower
  8. Loanmeet

So how do P2P lenders differ from traditional financial institutions?

Listed below are the features of peer to peer lenders and traditional financial institutions such as private, private, co-operative banks and others:

  • No involvement of banks in the functioning of P2PL companies. They work bank-free.
  • Interest rate: Decided between borrower and lender as per the agreement and is fixed
  • Small loan amount (differs for each company) compared to financial institutions
  • Repayment time frame is low
  • Speedy loan processing and disbursement
  • No physical documents required unlike banks who send their executives for document verification. In case of these lenders, documents are required to be uploaded online on their website.
  • Your details are highly secured. Financial data is not shared with credit institutions. So even if you default, you have ample of choices to pay personal loan installments. But remember that PTPL has a clause to take legal action against defaulters or make use of recovery agents.

Check out 26 difference between banks and PTPL.

PTPLs are now growing in demand in India. The power of credit is undeniable and its effective usage empowers the needy tremendously. So irrespective of the lender you take a loan from be it bank, NBFCs, PTPL or against FD or LIC policy, it is your duty to repay them on time and prevent yourself from getting into debt trap.

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28 International Debit Cards: Benefits, Features, Charges

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When it comes to travelling abroad and spending money, there are few widely used options:

  1. Local currency cash
  2. Credit card
  3. Prepaid travel card
  4. International debit card
  5. Travelers cheque

Each of the above mentioned payment options has its own pros and cons and picking an incorrect option would result in traveler spending extra money from his/her pocket. For e.g. using credit card can result in foreign transaction, withdrawal and conversion fee.

In this article we’ll discuss on international debit card, its benefits/features and different cards available for Indians travelling abroad.

What is international debit card?

First of all let’s understand the meaning of such card. It is similar to the domestic debit card but only difference is that you can use this card internationally for various purposes such as making online purchase in different currency, use at ATMs worldwide or in-store purchases abroad and many others. These features are not available in a domestic card and it can be used only in India.

Benefits or features of international debit card:

  • You can make transactions in currencies other than Indian rupee either online or in-store.
  • As you don’t have to carry paper money, it gives more relief from theft or loss of money. Moreover if the card is lost or stolen then card holder can immediately block the card.
  • In order to operate the card, PIN is must. So this gives additional level of security level. Moreover banks offer EMV chip cards i.e. information is encrypted in a micro chip.
  • You can withdraw cash from ATMs abroad in local currency.
  • Money automatically gets debited from the account linked with the card. So there is no need to wait for the monthly bill like credit card and then pay the bill. Also this helps in building saving habit.
  • Apart from the above advantages, many international debit cards also offers cashback, fuel surcharge waiver, and free accidental cover.

How to get international debit card in India:

Almost every bank in India offers pre-approved international debit card or you can apply for them separately. Here’s the list of few cards offered by prominent banks in India.

Bank NameName of Debit Card
SBIGlobal International
Axis BankVisa Classic
Axis BankBurgundy World
Axis BankTitanium Prime
Axis BankTitanium Prime Plus
Axis BankMasterCard Classic
Axis BankSmart Privilege
ICICI BankVisa Platinum
ICICI BankSapphiro
ICICI BankRubyx
ICICI BankCoral
ICICI BankUnifare DMRC Platinum
ICICI BankSapphiro Business
ICICI BankVisa Signature
ICICI BankMasterCard World
ICICI BankPlatinum Identity Chip
ICICI BankPrivilege Banking Titanium
ICICI BankPrivilege Banking Gold
Indian Overseas BankInternational Visa
HDFC BankJetPrivilege World
HDFC BankEasyShop Platinum
HDFC BankEasyShop Titanium Royale
HDFC BankEasyShop Titanium
HDFC BankEasyShop Business
HDFC Bank
EasyShop Imperia Platinum Chip
HDFC Bank
EasyShop Gold
HSBC
Advance Platinum
HSBCPremier Platinum

Factors to consider before opting for an international debit card / various charges:

You can use your debit card in foreign country with ease and also it is easily available compared to credit card. However there are few essential points to remember before choosing the card as follows:

  1. Check whether the bank has ATM presence in the country where you are travelling. Otherwise you would be charged ATM withdrawal fee for using the card at other bank’s ATM.
  2. Annual and joining fee: Unlike annual fee on credit cards, debit card for travelers also carry an annual fee and it varies for each bank. Some banks may also offer this card for zero fee. So if you are travelling for only a short duration then avoid buying cards carrying annual fee.
  3. Conversion fee: Similar to credit cards, if you use debit card abroad very frequently then it’s must to know the currency conversion fee.
  4. Transaction fee: Any purchase made using a credit card in a non-local currency carries a transaction fee. Minimum fee is between 2%-3%. However this fee may vary or might be zero for international debit card. So check with the bank and know about the foreign transaction fee.
  5. Daily withdrawal limit: It’s quite common to face cash crunch in foreign country. Moreover many a times, you won’t have an option to use debit card everywhere. In such cases, ATM withdrawal is the most feasible option. But before withdrawing the cash, it’s important to be aware of the withdrawal limit for various countries in order to avoid any extra fee.
  6. Daily transaction limit: In addition to the withdrawal limit, every card carries a point of sale transaction limit. And crossing the limit would result in a penalty. And it’s always recommended to be aware of this charge.
  7. Loss or damage: Losing/damaging a card or being stolen brings is a nightmare for any traveler especially when there is no other payment option possible including cash. Although you can get a new card immediately but it is not free of cost. An extra charge has to be borne by the traveler. Remember to report loss of card immediately. This is because bank offers protection from illegal charges accrued on the card.
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