Fixed Deposit for 5 Years: Earn 1.4 Lacs, Interest Rate of 30+ Banks

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Amongst the various types of investment options available in the flooded Indian market, fixed deposit (FD) is one of them. It’s another name is term deposit. FD is an investment option mostly preferred by low risk individuals who want to safely save their hard earned money and earn return after fixed interval.

You can invest in FD for a minimum 7 days to 5 years or even more depending on the tenure options available at the respective financial institution.

Here’s the list of top most banks in India offering fixed deposit for 5 years. We will assume an individual is planning to invest:

  • Rs. 100000 (1 Lac)
  • Tenure: 60 months (5 years)
  • Compounding Type: Quarterly (Used by most of the banks in India)
Financial Institution
Interest Range Offered
Interest Rate Used for Calculation
Maturity Value after 5 years in INR
Axis Bank
3.5 - 7.75%
Punjab & Sind Bank
3.5 - 7.9%
Karnataka Bank
3.5 - 8.1%
HDFC Bank, IndusInd
3.5 - 8.0%
Oriental Bank of Commerce
4.0 - 7.15%
Bank of India
4.0 - 7.5%
4.0 - 7.75%
Vijaya Bank, Kotak Mahindra Bank4.0 - 8.0%
South Indian Bank
4.0 - 8.1%
Allahabad Bank
4.5 - 7.25%
Dena Bank, IDBI, Bank of Baroda
4.5 - 7.8%
UCO Bank
4.5 - 8.0%
4.75 - 7.8%
Union Bank of India
5.0 - 7.9%
Canara Bank
5.25 - 8.0%
SBI, SBBJ, SBT, YES Bank, Indian Bank
5.5 - 7.75%
Karur Vysya Bank
5.5 - 7.85%
Syndicate Bank
5.5 - 8.0%
State Bank of Patiala
6.0 - 7.97%
State Bank of Hyderabad
6.0 - 8.0%
Andhra Bank, PNB
7.0 - 7.25%
State Bank of Mysore
7.5 - 7.6%

So as you can see above, most of the banks offer nearly similar range of FD interest. And longer the tenure and amount, higher would be the returns because of the higher interest offered. But remember that interest earned on FD is taxable although it offers complete security to your money. So the actual amount received at the maturity value will be lower. And this limitation forces individuals to either opt for other tax saving investment products categorized as high risk and low risk.

Note: FD rates are revised by the banks often depending on the interest rate movements. So please check with the concerned bank before investing. Tenure also plays a key role in your investment strategy. For longer tenure there are various high return investments products in India. So if you fall into the category of risk taking investor then consider choosing mutual funds and equities.

What happens when you make premature withdrawal from FD?

Since tenors for FDs are fixed, penalty is charged by the bank upon premature withdrawal. However charges vary for each bank and are in the range of 1-2% depending on the tenure.

To whom FD is best suited?

Fixed deposits are best suited for investors who want higher returns compared to the ones by savings account.

Other zero risk options?

Check out this article on zero risk, high return investments in India.

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After credit card rejection: 4 things you should do

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Between Jan2016-Jun2016, non-performing assets (NPA) of banks have risen according to the reports. And Indian banks now have NPAs close to 6 Lakh Crore i.e bad loans. So application for any type of credit is now scrutinized minutely by financial institutions in order to prevent grant of credit to predicted, frequent defaulters or the ones who do not fit eligibility criteria of the bank.

So what should you do when credit card application is rejected?

First of all, do not worry and take action without giving any thought. And also do not think that you will never get a card again. Normally upon card rejection, the next step everyone takes is to immediately make application at some other lender. But this is not recommended.

Here’s why and what you should do instead:

Ask for a reason: The first important step is to contact the concerned lender and ask for the reason for card denial. Now, there could be many reasons such as poor credit score, incorrect details mentioned, improper documentation, etc. If there is a minor mistake from your end, for e.g. if you forget to submit salary slip or mention incorrect salary, then ask lender to reconsider your request after providing the correct details.

Work on improving credit: If the reason for denial is poor credit score which can be due to multiple reasons; common ones are late, delayed, or missed payment, then your first job is to start working on improving the credit score. Your whole financial future is dependent on CIBIL score. A poor score will always create hindrance in getting any type of credit. The most recommended solution for improving CIBIL score is to make repayments on time and fully. Stay away from the habit of paying minimum balance. Also spend card wisely without crossing the card limit. Your aim should be to reach CIBIL score of 750 and above.

Apply only for card which you are eligible for: Market is flooded with various cards with each offering different features and benefits. And it is obvious that everyone will get attracted towards card offering exciting benefits such as lounge access, free air miles etc. But many such cards are designed for individuals with high income/frequent traveler/businessman & others. So if your card was rejected due to any of these reasons then next time check eligibility criteria first and then apply for a card. Remember every rejection counts.

If mistake is from bank’s end: Do you know that many a times, mistake at bank’s end can also result in card rejection? This could be due to various reasons. The most common one is delay in updating CIBIL record or incorrect data sent to CIBIL. As per rule, bank has to submit data to CIBIL every 30-45 days. Suppose you closed your previous loan account by paying all dues in June and apply for a fresh card in September. But if previous bank do not send recent data of your card account closure before you apply for the card at the new bank, then denial chances increases since you are still have balance dues as per credit information report at CIBIL.

In India, there are other options as well in case normal application still gets denied and these options are: add-on cards and credit card against fixed deposit also known as secured card.

Before applying for a card, get credit information report from CIBIL:

Next time you apply for a card, first check your credit score, and then take decision to apply for a new card. This way you can estimate whether or not it makes sense to apply for a card and which card. Else opt for add-on cards or secured credit cards. You won’t end up in the list of card denied. In case of any errors in CIBIL report, you can raise a dispute which they will try to correct at their own end or forward to the concerned lender.

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Credit Card Rejected: Are You at Fault or Lender?

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With rising non-performing assets, lenders have now become very strict. The sole objective of rejecting credit card application is to minimize losses. We all take similar action in our everyday life. For e.g. when your mobile phone bill shoots up, we move to lower plan or switch to some different operator offering cheaper deal. And that’s what lenders do – when loan or credit card payment defaults rise, they target only no risk individuals and straight away reject other risky applicants.

So now the question arises – when card application is rejected in India are you always at the fault or is the bank also responsible?

When you are at the fault:

  • Late or delayed payment: This is the most common and obvious reason for credit institutions rejecting your application. For them, you fit into the category of defaulter.
  • Incorrect or insufficient information provided: When making application for card, many a times you might enter incorrect or insufficient details such as incorrect income, fake employment status, etc.
  • Too many applications in short time period: Too many applications within a short span of time shows credit hungry behavior of an applicant. And banks take this very seriously.
  • Too many credit currently ongoing: If you have credit accounts with multiple banks then chances of rejection increases. Because from a creditors eye, it is another sign of credit hungry.
  • Income and employment: Every lender has strict income limit below which card cannot be granted. If your income is low then you are less likely to manage debt properly. Your employment also plays a very important role. A person working in listed company is more likely to get card compared to the one working in a small company. In such cases, if income is high even though you are working in a small company then approval chances increases.

When mistake is from bank’s end:

Now let’s understand scenarios when your credit card application is rejected due to mistake at lender’s end.

  • Failure or late in updating CIBIL record: Whenever you apply for a credit card, bank first checks your CIBIL report to understand your financial transactions such as current credit, previous late or delayed payments, frequency of applications etc. If they find unpaid dues, then chances of rejection increases. Now this doesn’t mean that – you have not paid bills. It might also happen that – CIBIL records are not updated. You may have fully paid the bills but banks failed to update CIBIL. In such cases, you should immediately approach concerned bank and notify about the mistake and most importantly ask them to submit correct data to CIBIL. As per rule, credit institutions are ought to submit data to cibil within 30-45 days. Such errors are quite common, so before you plan to apply for loan or credit card, check your CIBIL report once. At the same time, you should raise a dispute on CIBIL’s official website – Check out tips on improving CIBIL score.
  • Do not completely close the account: Post closure of card or loan account, it is your responsibility to get no objection or no due certificate and original documents from the lender. NOC in this case means – you do not owe anything to the bank and all the dues have been fully paid off. NOC will help in case of any dispute in future especially when you apply for a new credit.
  • Incorrect details entered: Many times it happens that you make card application on paper. Banks then feed these details manually in their computers record. And then verify all your details to decide on whether to give credit or not. But imagine a situation when your monthly salary entered is Rs. 100000 (1 Lac) but banks enter as Rs. 10000 (ten thousand). Your card rejection chances increases. Check out credit cards for low salaried individuals in India.
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Personal Loan for Home Improvement: Eligibility, Loan Amount, Interest Rate

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Everyone has a dream of owning their own house. And upon buying one, the next step is to renovate as per your requirement. When you buy an individual house or flat from a builder, they will not get customization done as per your requirement unless and until you construct on your own by hiring personal developer. The main objective of builder is to deliver home as per their construction plan and not yours. So for house improvement as per your requirement additional money would be needed. Or if you’ve been staying in your own house for years and want to change look and feel and want to arrange money for the same, what will you do? Of course you can turn to your relatives and friends, but they all have their own financial commitments and they may not offer you a support.

So what will you do in such a situation?

Personal loan for renovating house comes to your support offered by most of the financial institutions in India such as public, private, or co-operative banks, housing finance companies, or peer to peer lending companies.

What does home renovation include?

Improving your home includes but not limited to the following:

  • Remodeling the house
  • Painting
  • Repair – internal and/or external

Let’s get into the details for getting finance for home improvement:


Listed below are the basic eligibility criteria set by lenders for getting credit for home furnishing or decoration or renovation:

  • Ownership: The most basic requirement is that the loan applicant should be the owner of the house/flat. You cannot take personal loan for house renovation, if the property belongs to someone else. For e.g. tenants are not eligible. But at the same time tenants can take loan for purchasing furnishing or decorating items.
  • Property documents: Lenders will also ask for original documents related to the concerned property.
  • Credit Score: Irrespective of the type of credit you apply for, every lender will first take into consideration the CIBIL rating. It is a score given to every borrower out of 900 depending on his/her credit usage. According to CIBIL, any individual with a score of 750 and above is more likely to get credit approved. Higher the score, higher the chances of loan or credit card approval. If your CIBIL score is low, then still there are lenders such as co-operative banks and peer to peer lending companies who can offer you the loan.
  • Profession: Salaried, self employed or businessman are eligible for the loan. If you do not have any source of income but own a home then getting a loan is difficult. This is because lenders won’t be able to calculate your loan repayment capacity.
  • Annual Income: The most important decisive factor for evaluating credit worthiness of any individual. Although there are personal loan for low income earners but it has its own pros and cons. In order to reduce non-performing assets, banks take multiple factors into consideration and amongst them annual income is the most important. Every lender has there own monthly or annual income eligibility criteria.
  • Employment history: Work experience and years being in the same job is also taken into consideration by some lenders.
  • Age: Minimum age of the applicant should be 21 years.

Who offers financing for improvement of home?

Following three categories of lenders offer loans for renovating house:

  • Banks: Public, private & co-operative. Almost every bank offers this loan.
  • Finance companies: HDFC, Bajaj Finserv & others
  • Peer to Peer Lenders:, LendenClub & others. More about P2PL here.

Below table shows loan details from few lenders:

Lender's NameMonthly Income RequiredInterest RateLoan Amount
Kotak Mahindra BankMinimum Rs. 2500011.49% - 20.15%Rs.20Lacs - Rs.75Lacs
Bajaj FinservMinimum Rs.30000. But varies between cities11.99% minimumUpto 25 Lacs
HDFCNA9.40% - 9.90%Rs.30Lacs - Rs.75Lacs
IndusInd BankMinimum Rs. 2500011.25% minimumNA
Indian Overseas BankNA9.50%Rs. 25000 - Rs. 15 Lacs
Axis BankNA9.45% minimumMinimum Rs. 3 Lacs
DHFLNABased on DHFL's retail prime lending rateMaximum Rs. 50 Lacs
PNB HousingNA9.40% - 10.40%Rs.20Lacs - Rs.75Lacs
Bank of BarodaMinimum Rs. 50000Base rate 9.60%Minimum Rs. 50000

Note: Please check with the above listed companies and get latest details on interest rate, loan amount and other criteria.


Every loan you take will carry basic charges such as processing fees, interest rate, late payment, cheque bounce, prepayment, loan type conversion. But remember there could be other charges involved which lenders may not disclose clearly initially but are present in the documents provided by the lender.

Although personal loan is costliest loan type but it is most preferred as collateral is not required. Moreover applicant has to go through less tedious documentation and disbursement is fast.

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Diwali 2016: Wealth Creation, Financial Planning for New Year

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Diwali 2016 is round the corner and everyone is eagerly awaiting to celebrate various festive days. We buy new things such as clothings, furnishing items and many more and celebrate various festive days with crackers, sweets, and gifts. Lakshmi Puja is considered to be the most important day during Diwali. It helps people to realise the importance of wealth creation and money making. Over years we have been following rituals of lightning fancy lamps, cleaning house etc. to seek blessings of goddess Lakshmi. However not everyone receives the blessings of Lakshmi, which means money. It can due to various reasons no or incorrect investments etc.

We often create financial goals at the beginning of new year but this time let’s start financial planning in Diwali and give a fresh start. And here are some basic wealth creation/management tips for everyone.

  1. List down your goals: This is the first and most important step in wealth creation. And all your financial investments should have a goal.
  2. Emergency fund creation: Always have some amount of money ready in your bank account to be used only during emergency needs.
  3. Buy health insurance: We will first meeting your health goal. One of the most recommended insurance product across the world is health insurance. Not having a proper medical insurance is the starting point for future financial disaster. Rising medical treatment costs can badly ruin your hard earned savings when you don’t have health cover. Moreover India does not offer social security unlike western countries, so buying a health insurance is very important. And when bought at an early age, you will save good amount of money in premiums. So compare and choose best medical cover for yourself and family members.
  4. Buy life insurance: Another insurance which is always recommended especially to individuals with financially dependent family member is life insurance. There are many types of life policies. At the basic level, an individual must have either a term plan or whole life policy. In case of the death of the insured person during the policy term, the beneficiary will receive the sum assured.
  5. Write down spendings: If not daily, atleast make a habit of writing down your expenses every week. Trust me, this works wonders. You will actually come to know unwanted expenses you have made and then take action on cutting those spending next time. For e.g. when you buy something in store and later on you realize the same stuff could’ve been bought at much lower price online, then next time you can compare prices online and offline and save money.
  6. Invest in zero risk but good return investment products: Not everyone likes taking risk with their hard earned money. And it is perfectly fine. After all it’s your money. For such safe investors, investing in no risk and high return investment products is recommended. And this includes, public provident fund, sukanya samriddhi account, national savings certificate, and few others as mentioned in this article.

If you follow atleast above mentioned six pointers, then years down the line you will see the real fruit.

  • Invest in stock market: Many people have negative belief about stock market. They relate stock investment to gambling. If you also think this way, then your mind definitely needs a cleaning. Although for a risk avert individual there are many zero risk and high return investment options. But if you have been staying away from stock market just because you think that it is a gambling then you are keeping yourself away from enormous wealth creation opportunities it offers. Risk and returns are two important factors when evaluating any stock. And by analyzing the past performance, future price of stock can be calculated. If you are not an expert in this field take advice of your broker. It’s their job to guide you, higher the profits you earn, higher are their incentives.
  • Portfolio Cleaning: Everyone must have invested somewhere either equity, mutual fund, fixed deposits etc. And not every investment product will give you the best return. Sometimes you might have to deal with negative returns. Let’s take an example of stocks. People often buy stocks at prices and few months down the line may not see any reasonable returns. In such cases, individuals need to revisit their portfolio and move out of loss making stocks. Although you will make losses but who knows stock price may further slide. Instead move out of such stocks and invest in other stocks or other products. Best is to invest in SIP as mentioned below.
  • SIP Investments: India is a growing market and regular investments over longer duration will definitely make your bank balance green. Investing in systematic investment plan (SIP) regularly as per your convenience, especially in equity mutual funds is surely the most recommended wealth creation strategy. And earlier you start investing higher would be the return compared to individuals investing late. Moreover the minimum amount required to enter into SIP is Rs. 500 which is a small amount.
  • Hire Financial Advisor: Not everyone is an expert in money or financial markets or has time to actively monitor their money and investing at its best. For such individuals, hiring a financial advisor is highly recommended. Their job is to make clients meet their financial objectives such as higher education, children’s marriage, foreign travel etc. Read more on what questions to ask financial consultants.

So best of luck and may goddess Lakshmi shower everyone with good luck and prosperity for the years to come.

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6 Life Insurance Types: Term, Whole Life, ULIP, Endowment, MoneyBack, Annuity

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Ramchandra got married in 2015 and didn’t feel the need to buy any insurance policy before marriage as he didn’t have any dependents. His father is still working and has taken few life insurance policies and Ramchandra was nominee in one of these. But post marriage, he was seriously looking to buy life insurance policy on his name with wife as nominee. Since his wife was not working, he wanted to secure future of his family in his absence. Health policy was his next objective.

He was contacted by various life insurance agents & also searched internet. But finally he got confused with multiple categories/types of life policies available in the market. This problem is faced by many individuals and they end up buying policy which in future may or may not benefit them and not meet their financial objective. And thus an incorrect way of investing/spending hard earned money. Check out cheapest life insurance policies in India at just Rs. 330 annual premium.

So let’s understand different types of life insurance policies and their objective.

  1. Term Life: The main objective is to provide risk cover for a specific period of time. There is no option for savings or making profit from such policy. In case of death of the insured person, the pre-fixed sum assured amount is paid out to the beneficiary. Otherwise no payments are made. Since basically term life purely provides life cover and because of this reason premium amount is cheaper compared to other types mentioned below in this article. Get details on Pradhan Mantri Jeevan Jyoti Bima Yojana offering life policies at Rs 330 per year.
  2. Whole Life: It works on the same line as of term life. But it covers the policy holder for his/her entire life whereas term plan covers for a pre-fixed time period.
  3. Endowment Plans: Along with the risk cover, this policy offers financial savings. So basically twin benefits – lump sum assured in case of death during the policy term and upon survival, premiums paid are received in return in addition to returns like bonuses. Sum assured is paid to the nominee as declared by the insured while buying the policy. Since it offers higher benefits, the premiums and charges are on a higher side.
  4. Unit Linked Insurance Plans: Also called as ULIP (short form) and is a variant of endowment plan. They too offer twin benefits to the insured – life cover and wealth creation options. While buying ULIP, you can choose whether money paid in the form of premium should be invested in equity markets or in debt market. This decision is very critical as risk is involved especially in equities as they are dependant on multiple factors which are not in anyone’s control. Whereas debt offers steady returns, equities have offered higher returns historically. So ULIPs are best recommended when individual is planning for long term such as marriage of children or their education and for their personal usage such as retirement.
  5. Money Back: It is similar to endowment policy and offers life insurance and wealth creation opportunity. Investor gets periodic payment at pre-fixed intervals during the course of the policy term. This payment is paid from the portion of the sum assured. If the policy holder survives during the term, the remaining balance of the sum assured is paid. In an event of death, nominee gets the full sum assured.
  6. Annuities and pension plans: The main purpose of this policy totally differs from the above listed life insurance policy types and is designed to provide steady cash flow during the golden years of the retirement. Insurance company in this case, agrees to pay the policy holder a pre-fixed sum of money in lump sum or periodically (monthly, quarterly, annually or in one go) when the insured retires. So basically this policy is worth mainly for people wanting to secure their retirement and not depending on others for their day to day needs. Investor in this case has to pay lump sum amount to the insurance company. Remember gone are those lucky days when pension was guaranteed to government employees. For individuals working in private organisations and looking for regular income, annuity plans are worth recommended.

Read – when not to buy life insurance policy.

So opt term plan when protection is what you want, go for endowment plans if saving is your objective. And finally choose ULIPs when wealth creation is your goal.

Depending on your financial goal, choosing a life or any other policy is very critical. You should give a deep thought before buying. Delay of few days in selection is much better than buying something which is worthless. Also remember that, policy holder can also change nominee during the policy term irrespective of the life policy or its type subject to certain terms and conditions.

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Buying/Renewing Car Insurance? 15 Add-Ons to Consider

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Ramesh from New Delhi is a travelling fanatic and almost every weekend travels with his wife and 2 kids to nearby places in the capital city. Being an expert driver and also a good money manager, he has good experience in handling various faults and never missed carrying car repair tool kit. This includes malfunctioning of minor electrical repair, replacing car tyre, etc. He also has a good motor insurance policy, as mandatory by Indian law.

However unaware of perils of driving, recently on his trip to Leh-Ladakh with the family and other friends, severe malfunctioning of the car left everyone in the family stranded and towing to the nearest service station for repair was the only option left. And the nearby service station was far away and despite of calling the station for help, it was not available at that point of time. Never in his driving experience had he faced such a breakdown because of which he had to leave the car in the middle. Although he was travelling in group, he couldn’t leave the car that way and had to cancel his further journey. And at the same time he had to shell out good amount of money to get the car work fine. Know the reasons why car insurance is expensive in India?

So question arises how Ramesh could’ve averted this? The answer is by buying add-on cover for car. Let’s explore the essential rider or add-on cover every car owner should buy:

  1. Towing assistance: The solution to Ramesh’s problem was towing the car to the nearest service station. However not everytime you will find service station near to the location where you need it. For this, auto insurance companies offer towing assistance. Their crew members will tow the car to the nearest service or police station or home as per the situation. So point to be noted is towing add-on is must to have. You can never predict, when your car would need it.
  2. Roadside assistance: Although Ramesh had expertise in repairing minor faults in the car, this time even his experience didn’t help due to the severity of the problem. The main support offered by insurers through roadside assistance service is repairing minor electrical and mechanical faults on the spot which are less time consuming.
  3. Flat tyre service: It’s very easy to replace the car tyre provided you are carrying spare tyre also called as stepney. However what will you do when two tyres go flat (puncture) or suffer blowout at the same time or even stepney blows out? So the best addon that takes care is flat tyre repair and is covered under roadside assistance.
  4. Emergency fuel delivery: Take example of Ramesh, during his journey had the car halted due to fuel shortage. Although when people travel they always fuel their tank in sufficient quantity. But faulty fuel gauge or when engine starts consuming more than expected fuel, can drain the fuel speedily. Through emergency fuel delivery add-on, covered under road side assistance, insurance companies will send vehicle technician with upto 5 litres of fuel to the insured person. Remember that fuel is chargeable. But that should never ever be a concern. It’s always to be at a safe place than remain stranded in a secluded place.
  5. Vehicle key service: Ideally everyone has additional set of keys. But take example of Ramesh, had he lost keys and additional key was not handy at that point of time. What he would have done? The only option was to reach back home and get the keys. But that would have been risky. So by opting for vehicle key service, technician will come and open the car without the keys. If that is also not possible, then additional keys kept at home would be collected by the technician from the insured person’s home/office and delivered to the place where required.
  6. Cab services: When you are left stranded in unknown place due to car breakdown, insurer will arrange a cab at the location. And in addition to this, their team will take care of your car.
  7. Accommodation: Certain severe conditions in car take lot of time for repair. In such situations, insurance companies provide assistance to accommodate the insured person at nearest hotel which is near to the car breakdown spot.
  8. Pick up of vehicle in case of driver disability: No one would ever think of disability arising while driving or facing any type of health problem because of which insured cannot continue driving. Insurance companies can come to rescue even during such bad time. They will assist in picking up and delivering the car to the desired location.
  9. Shipment of spares: On spot repair might often need spares to be delivered at the location of damage of the car. Insurer in such cases will help the insured by arranging the required spare parts and delivering to the desired location.
  10. Zero depreciation: Claimed amount in a normal car insurance policy, does not pay the insured completely as insurers take into consideration the depreciation value of the vehicle and its various parts. These include parts such as plastics, fibre, leather, metal parts etc. which naturally will not hold same value as car ages. So when car is damaged and new parts are used, the difference between the current cost of the parts and deprecated ones are borne by the insured. Why would insurance company make losses for themselves by fully paying for new value of the parts? But by taking zero dep cover, insured will get the complete claim amount and cost of parts such as metal, plastic, and fibre will be borne by the insurer. This is the must to have add-on cover for every car owner especially beginner or new car owner.
  11. Engine and electronic circuit cover: Must recommended especially during monsoon seasons during which internal parts of engine, gear box, power steering are most likely to get damaged. So it’s best recommended to buy engine protection cover along with the car insurance so that cost of repair arising due to damage to the most critical part of the car is borne by the insurance company.
  12. No claim bonus protection: It is a reward given in the form of less premium given by insurance company to the insured. Every year at the time of renewal, NCB is provided for those car owners who do not claim in the previous year. Basically safe drivers are rewarded. But there is an add-on called as NCB retention. This addon cover allows insured to avail full discount when claim is made in the previous but within a pre-defined limit.
  13. Return to invoice: Who wouldn’t want to receive maximum amount of money via claim. Ideally when you basic buy car insurance and it gets damaged then insured declared value (IDV) is taken into considered to calculate the value of the car. But when you opt for return to invoice add-on, the amount received via claim will be the gap between insured value of the car and the value of the car when it was purchased. So bottomline is claimant will get higher sum from the insurance company.
  14. Loss of personal belongings: Thefts are very common. It can happen from your home, pocket, & vehicle etc. But do you know that, when your personal items such as laptops, mobile phone, and other electronic gadgets get stolen from your car, you can claim? There is an addon which offers coverage for loss of personal belongings from the insured car. It is recommended to frequent travelers the most.
  15. Daily cash allowance: DCA is a very common term in health insurance. But in case of motor insurance too, insured person will get benefit in the form of money when the car is in the workshop for repair for pre-fixed number of days.

So remember to relevant add on covers while buying or renewing your car insurance. It costs little higher but saves money in the time of need.

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Wealth Creating Insurance Policies: Endowment, MoneyBack & ULIP

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It’s a myth that life insurance policy’s sole purpose is to pay up in an event of the death or when the policy matures. However very few amongst us, know the fact that life insurance policies are flexibile too. i.e. they serve dual purpose – providing life cover and give returns. So investors get combined benefits of protection, saving and investment in order to meet their varying financial requirement and at the same time offering ample opportunity for wealth creation.

Such policies that offer savings and investment options are known as endowment plans and ULIPs. And the most popular variant of the endowment plan is the money back policy. In this policy, investor gets pre-defined set of money at pre-fixed interval.

Let’s get into detail of such policies.

Endowment Policies:

The dictionary meaning of endowment is gift in the form of money. These life insurance plans are designed to pay a lump sum after specified number of years – which could be due to the policy holder’s death or when the policy matures. Typical endowment plans are for long term ranging from 10, 15, and 20 years or may be more than that.

The basic objective of long duration policies offering lump sum amount of money, is to meet the financial goals like child’s marriage or education. But some people also buy them to create own’s retirement corpus. In addition to this, some endowment plans also provide yearly bonus. So at the end of policy term, both the sum assured and bonus are paid out. Endowment plans are best recommended to risk averse investors wanting to generate moderate amount of wealth which is 100% tax free. Read zero risk, high return investment options in India.

Money Back Policies:

This is again a type of endowment plan. And the sole purpose of this policy is to create wealth for the policy holder and distribute it during the tenure of the policy. In addition to this, life is covered during the term of the policy and the maturity benefits are paid at regular intervals i.e. survival benefits are paid out in 5 year interval. So someone buying a policy for 20 years, will get survival benefits in 5th, 10th, & 15th year which is X% percent of the sum assured. And at the end of 20th year, Y% percent of sum assured, which is greater than X% with accrued bonus will be paid.

Unit Linked Insurance Policies:

These policies also have two main purposes: secure life and create wealth. In ULIPs, certain part of premium paid is dedicatedly used for providing life cover to the policy holder and the remaining premium amount is invested in equity, debt or both. This assigning of common pool of money is called as fund. The only risk associated with ULIP is the investment done in equity and debt which are linked to market. So fund performance essentially is the deciding factor for building wealth. But at the same time, investors are given a choice to switch between different funds and maximize wealth creation.

Here are some of the best wealth creating policies out in the market:

Endowment PolicyMoney Back PolicyULIP
Endowment Assurance by LICLIC Money Back PolicySBI Life Wealth Assure
Savings Suraksha by ICICI PrudentialSBI Life Smart Money Back GoldMAX Life Fast Track Growth Fund
Life Samriddhi by Bharti AXABajaj Allianz Cash AssureHDFC Life Click2Invest
MetLife Endowment Savings Plan by PNB MetLifeHDFC Life Super Income PlanICICI Pru Wealth Builder
Premier Endowment Plan by Kotak Life InsuranceReliance Life Super Income PlanICICI Pru Guaranteed Wealth Protector
Reliance Life Endowment Plan by RelianceAegon Life Regular Money Back InsurancePNB MetLife Smart Platinum
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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)


  • 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.

What to do if you plan to buy a regular health insurance policy after hospitalization?

It’s always recommended to have a medical cover. If you were hospitalized for dengue/any other treatment and later on decide to buy health policy, then you should inform insurer about your hospitalization. Informing is recommended so that medical underwriter will undergo details about the treatment and accordingly your premium would be priced. This will also help in avoiding a situation where a future claim would be withheld by an insurer on count of not disclosing facts about pre-existing disease or hospitalization due to dengue or any other medical problem. Hiding any fact will result in claim getting rejected. And this rule is used by every insurer. Check out reasons for buying personal health plan and not rely on group policy.

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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