Inherited Wealth in India: What to do & what not

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Have you ever wondered what you would do with an inherited wealth such as cash/property/jewelry etc. in India ?

This article helps in how to make good use of inherited wealth and avoid wasting money.

Here are the tips:

Planning: The very first step is planning. Never start making use of money as soon as you get it. Take advantage of the first few months to develop a plan, along with expert advice to use and invest money. It can be naturally tempting to start spending your inheritance, but it may be smarter to set a waiting time and use this time to decide how to make the wealth grow.

Seek expert advice for financial planning: If you do not have knowledge of investments and financial terminologies, then seek a financial advisor’s help. A financial planner can help you develop a strategy that works best for your situation, and devise an investment plan according to your risk appetite.

Consider taxation: The good news is that, in India, there is no tax on inherited wealth or property. However when you make use of the inherited money or property in order to generate wealth then you become tax liable. And your financial consultant is the best person to guide on taxation, especially when you do not have knowledge of this subject. Do not think that generating a large sum will go unnoticed. Ask your advisor about the necessary taxes according to the type of inheritance received and income generated out of it. Anyone would love to stay rich and hate paying taxes. But still as a responsible citizen, paying taxes helps government in nation building.

Take legal help: We often hear long legal cases because of inherited wealth. And only a lawyer can help you resolve any potential legal issues. So before making any use of money received, consult a lawyer.

Invest wisely and make some extra profit: Everyone wants to make money out of money. You will come across various high return investment products but not every product will offer you guaranteed high returns. It’s likely to get attracted to risky, illegal, or possibly scammy investment products requiring high investment and claiming to give highest returns. So it is best advised to look for a safe investment, which earns a little each year and at the same time keeping pace with the market.

Do not show off: If you start talking about the money you’ve received, you may start noticing how your circle of friends and family growing. People from the past will suddenly want to come closer again, but they may only be interested in what they can get from you.

Do not invest in business: Even though you may have a substantial amount of money in your possession, don’t invest in a new business without knowing complete details. Take expert’s advice before putting money.

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These Millionaires Want their Children to Learn Chinese

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Do you think it’s important that your child knows more than one language? You could be right!

Learning a second language could improve cognitive development, creativity and academic performance, is indicated on the site of the University of Tennessee in Martin, USA. But what language should they learn?

Besides being the most talked about in the world, according to the Ethnologue publication, Mandarin Chinese is the most chosen by millionaires.

Some examples:

Jeff and MacKenzie Bezos: The founder of Amazon and his wife have four children. According to her in dialogue with Vogue magazine, one of the activities that children do is to learn Mandarin Chinese.

Mark Zuckerberg and Priscilla Chan: Inspired by his wife, the Facebook founder would have learned Chinese Mandarin self-taught, he reports on the Business Insider site. In addition, in 2016 he uploaded a video to his social network in which he sees how a personal assistant with artificial intelligence helps his daughter Max to practice that language:

Ivanka Trump and Jared Kushner: In an interview with the Hong Kong newspaper, South China Morning Post, the daughter of the current president of the United States said her daughter had a Chinese nanny who taught her Mandarin.

Prince William and Kate Middleton: The eldest son of the royal couple, Prince George, is expected to learn Mandarin at the school he attends in London, Business Insider reports.

Why choose mandarin

Are you already considering Mandarin language for your child? In addition to the millionaires, several experts endorse the decision.

“The tone of the language makes it sound like a song, which is a tool that is used when teaching young children other topics.” The written characters look like images, which is attractive to children, who usually learn in a visual way “, says Nicole St. Leger, a mandarin teacher, in dialogue with Parents magazine. And that’s not all!

“Learning Mandarin provides a key understanding of one of the oldest civilizations in the world, which is also one of the fastest growing economies globally,” explains Corinne Dillon, founder of the site to learn the language. Discover Mandarin.

“Employers need people to speak Mandarin in order to carry on their business, this is not a trend that is going to change soon,” adds St. Leger.

Finally, keep in mind some of the additional benefits extracurricular activities can bring for your children, such as learning a language:

  1. Flexible thinking
  2. Best investment for your child both from education and
  3. Chinese is the business language of the future. And learning it, will make you child more employable and give an added advantage in the ever increasing competitive world. China being the second largest economy in the world and biggest trading partner to the world’s biggest economy i.e. United States (in fact many other countries), every company wants a Chinese speaker to assist in their business.
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How Inflation Affects Savings & Why Never Keep Money Idle

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When we think about saving, the idea of ​​keeping the money idle in your house is not good. It is true that, if you put money in your cupboard/anywhere in the house for years, in the end you get a very important savings fund. The problem is the final value of that money saved at home. If you save Rs. 20,000, you will have the same Rs. 20,000, but that money may not allow you to buy the same stuff as before because of the inflation i.e. it’s value of your money goes down.

In this sense, when inflation is taken into account in our savings and consumption decisions, it is better explained why it is not a good idea to leave the money under the mattress.

What is inflation?

Inflation is the increase in the price of goods and services over time. Banks typically defines inflation as the increase in the general level of prices, for example, in the consumer price index (CPI).

This index, created from the price of different products and services in the shopping basket, marks inflation at all times. The CPI of a specific month is compared with that of a year earlier to see its variation. If prices increase there is inflation, but if prices fall, deflation occurs.

When inflation rises, prices are more expensive, while savings are lower because rupee is worth less and less. This means that with the same money you can buy fewer products and services and, therefore, you lose purchasing power.

How is inflation controlled?

There are different types of inflation that affect both the general and the personal economy. Depending on what inflation is, the measures adopted for its control affect us in one way or another. For example, high inflation is controlled by rising interest rates, which has negative consequences for those who have loans or mortgages.

When the rates rise, it tries to contain inflation and stabilize prices, because there is less demand for money through loans. On the contrary, when the rates fall, mortgages become cheaper, customer demand increases, but, at the same time, the profitability of savings is lower.

How does inflation affect savings?

The goal of saving money is to obtain the highest possible return. In general, the higher the interest rate, the greater the profits for the saver. However, this performance would have to be subtracted from inflation to know what the final gain is. That is, when rates are high, inflation is also high, so we must discount this, while, if inflation is 0, we should not subtract anything from the perceived returns.

For this same reason, it is not a good idea to save money i.e. keep it lying idle, because money loses value over time, suffering the effects of inflation. Money is devalued with inflation, which means that, if we keep Rs. 20,000 unused, with 3% inflation at the end of the year, even if we have the same amount, its purchasing power will be decreased by Rs. 600.

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Home Rental Cost in Top 30 Cities of the World

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Amongst the various plans people make, one is moving from one city to another and start a new life. This idea has become popular especially among young graduates. However the most important aspects to take into account while taking this important decision are the work and the place where you intend to live. Suppose you have already got the job, now comes the most complicated part and that causes thousands of headaches: rent a place to live.

If we rely on the generalized opinions and what can be found on the Internet, we will see that everything leads to almost the same, where cities such as London, New York or Tokyo always appear as the most expensive in the world. But thanks to research by RENT Cafe, you can have a little more light on this aspect, since it focuses specifically on the prices of rents within the 30 most important and attractive cities to live in the world – From $ 8.50 per square meter to more than $ 58.

First we must define what are these 30 cities. Thanks to the work of Institute of Urban Strategies of the Mori Memorial Foundation we have the ‘Global Power City Index‘. This research classifies each city in terms of its attractiveness based on six main criteria: economy, research and development, cultural interaction, habitability, environment and accessibility.

And the index is as follows:

Global Power City Index

As we see, London is the city with the highest rating within this research, since it has the highest offer within the six criteria that we already mentioned. Followed by London are New York, Tokyo, Paris, and Singapore completing the top 5.

Now, within the 30 most important cities, how is the rental situation?

This is where RENTCafé’s research comes in, which set a rent of 1,500 dollars a month, and based on this, we can now know how much space we can access depending on the city, with other interesting results.

In the following graph (Source: Statista) we can clearly see the size of the apartment, in square meters, which we will have access to in the different cities with a budget of 1,500 dollars per month. It should be noted that the image is limited to the first 25 cities.

As we can see, the price per square meter in Istanbul would be just 8.50 dollars, so $ 1,500 would give us access to a comfortable apartment of 176 square meters.

In contrast to Manhattan, where the square meter has a cost of $ 58.34, so we would only have the possibility of having a micro apartment of 26 square meters. That is, the size of an apartment in Istanbul is equal to the size of almost seven apartments in Manhattan.

Other conclusions we can draw is that for those $ 1,500 we can have three times more space in Shanghai than in Los Angeles, or that the price per square meter is five times more expensive in San Francisco than in Berlin. On the other hand, of the 30 cities covered by the study, four belong to Western Europe, which compete with Manhattan, San Francisco and Hong Kong to have the highest prices per square meter.

Additional reading: cost to raise a child in top 10 countries

Another interesting point is that outside the United States and Canada, no other city in America appears in the list, this despite of the fact that some of them have the lowest prices, but here we must remember that we are talking about cities capable of offering a Good life quality. On the other hand, Spain appears twice in the list thanks to Madrid and Barcelona, cities where the square meter has a price of $17.01 and $20.99 respectively.

If you wish to analyze these 30 cities from another perspective, the map alongside summarizes the study in a magnificent and clear way.

 

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Thinking Of Raising Children In These 10 Countries? You Have To Go The Extra Mile!

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Presently, a lot of people think twice about starting their own families. Who’s to blame? It’s not easy to raise children right now, considering how costly it can get to provide for their needs. According to an article published on Cost Freak, the cost to raise a child is, at least, $12,300 per year, and that only accounts for the basic needs. There are other factors to consider, including the income, location, and the marital status.

But that’s just the tip of the iceberg. There is more to see and be aware of when it comes to childcare. In fact, the Society at a Glance 2016 has revealed an eye-opening report about the childcare expenses in member countries of the Organization for Economic Co-operation and Development or OECD. It said that 15% of the household’s net income is the average cost to raise children; that’s no joke.

Statista, an online statistics company, has compiled the data and provided a better perspective of the OCED countries with the highest expenses on childcare. And if you have thought of raising your kids in one of these 10 nations, then you’d better make sure that you’re physically, mentally, and financially prepared for such arduous experience.

1. United Kingdom – 33.8%

On top of the list of countries with the most expensive childcare is the United Kingdom. The cost to raise a child in this country is very high that parents spend more than 33.8% of their income for their kids. And even before the rearing begins, childbirth is also expensive, averaging at $4,609, according to The Cheat Sheet.

The good news is that there is help from the government for middle and working classes. However, the subsidy is not enough that one of the providers chooses between working and staying at home with the child. The cost of living in London is even higher. Rent and entertainment are some of the highest priced in the world.

2. New Zealand – 29%

Next in line is the country of kiwis: New Zealand. Families in this country spend 29% of their income for their childcare. It is twice as much the expenses in Australia. There are a number of private providers, which have quality services for children, too. However, these services do not come cheap.

3. Ireland – 27.4%

Not only is the childcare system in this country not up to par, it is also very expensive. Many parents spent 27.4% of the net income since they want their child to receive the best education. But if you think about it, the costs are way too high. They are willing to pay higher taxes for government assistance with childcare, but so far, that has not happened yet. After school programs are also very expensive for children.

4. United States – 25.6%

Hold onto your seats as you may find this absurd. According to Huffington Post, the cost of childcare in the U.S. is apparently more expensive than the college tuition. This can imply how difficult it is to raise children in this country, especially when you don’t have a stable job. Most parents spend 25.6% of their income, but it significantly varies from state to state or which city you live.

5. Switzerland – 24.1%

In order to have a child at a daycare, parents have to shell out almost a quarter of their salary. There are very few tax breaks for families with children as well.

6. Canada – 22.2%

Even though people in Canada receive free health care, the cost of raising a child is very high. Childcare is expensive that parents have to spend 22.2% of their income. The big cities such as Toronto are safe, but they can make your wallet empty. Bottomline is: it is not cheap to raise a child in this country.

7. Australia – 15.7%

The basic necessities for children are expensive since they need to be imported. Many couples tend to limit the number of children they have due to the high costs of providing for them. Although childcare is expensive in this country, the Australian government has provided the Child Care Benefit. This payment is going to help parents for their child’s day care, outside school hours care (OSHC), and vacation care, as well as preschool and kindergarten.

8. Japan – 15.3%

This country is very expensive. A small apartment can cost a family several thousand dollars a month. The cost of childcare is very high as well as private education. Cheat Sheet has also revealed the average childbirth in the Land of the Rising Sun is skyrocketing at $61,000. In addition to the high cost of living, the limited space also has an impact on the Japanese family. Entertainment and food are also very high.

9. France – 9.7%

While France has more affordable childcare than other European countries, it is still very expensive. Both parents have to work in order to provide for their children. The cost of food is rather high as well, making an impact on the family size. While women can take off some time to take care of their child, it does hurt their career. The more time they spend out of their chosen work, the lesser the chances they have of getting a high paying job.

10. Germany – 9.7%

Childcare is not cheap in Germany. In many cases, mothers have to stay home to take care of the children because childcare is so high. It makes it difficult for both parents to go to work. By the time the child reaches the teen years, the cost goes up as well. It results in working full-time jobs just to feed and clothe their kids.

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Lost Aadhaar Card or Not Received? Get e-copy in 10 Easy Steps

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Aadhaar card has become a mandatory document. It acts as a valid proof of address and identity for various government schemes. Aadhaar card helps people cut down documentation that is required when verifying filed returns. Aadhaar has also eased the process of PF disbursement. With Aadhaar card, you can now get your LPG subsidy in your bank account. Also, the process of getting a passport has become simpler and time-saving with Aadhaar.

If you have lost your Aadhaar card or have enrolled for it but have not received it yet, you can get an e-copy of Aadhaar card online in a few simple steps, which are given as follows:-

  1. Visit the official UIDAI website https://uidai.gov.in/.
  2. Click the “Download Aadhaar” option present on the home page of the website.
  3. You will be then directed to a webpage wherein you will need to fill out the e-Aadhaar form.
  4. In this form, enter your enrolment ID or Aadhaar number, your full name – as printed on your Aadhaar card or as mentioned by you during the Aadhaar enrollment.
  5. Type pin code of the area you stay.
  6. Enter the captcha code.
  7. Enter your mobile number.
  8. Click the “Get one-time password” button.
    An OTP will be sent to your registered mobile number or email ID, which you need to enter in the form next.
  9. Lastly, click the “Validate & Download” button.

On completing this process, you will be able to view your Aadhaar card on your computer screen. Since it is a password-protected PDF file, download this e-copy of your Aadhaar and use it as a fully valid Aadhaar card to avail a number of government-based services. The password to open this file is the PIN code of your residential address. Also know how to get protected e-Aadhaar card pdf password.

Aadhaar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI). Every Indian citizen should have an Aadhaar card as it is used as the universal identity card that can verify an individual’s age, address, identity, etc. which are required to apply for a gas connection, phone connection, bank account, pension schemes, PF disbursement, LPG & other subsidies to name a few.

The details in the Aadhaar card include:-

  1. The name of the person (it belongs to).
  2. The 12 digit unique Aadhaar number or the UID (Unique Identification Number).
  3. The enrolment number.
  4. A passport size photograph.
  5. A person’s permanent address and date of birth (as per the records).
  6. A person’s gender.
  7. A barcode representing the Aadhaar number.

The purpose of Aadhaar card is to make the life of people simpler. Gone are the days when people had to go through a long tiring process to avail a single government benefit. Today all can be done online by furnishing just a single Aadhaar card as it would work as a valid proof of address and a proof of identity. In real terms, Aadhaar is not just a card to avail government benefits. It can also replace the need of driving licence, passport and Voter ID card. Linking Aadhaar with PAN Card has also been made mandatory by the Indian Government without which one cannot file their Income Tax Return (ITR). Also it is worth mentioning the fact that Aadhaar comes with no validity and hence can be used by a person for lifetime.

Considering the above mentioned factors, it can be well stated that the Government of India is changing the way it operates. Not only it is making the regime simpler but also making efforts to enrich the citizens’ experience. The key to this improved service is the process of delivering information and processing government transactions digitally through web and mobile applications that make government services easily accessible to each and every category of people.

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Low Salaried? 15 Credit Cards Against FD: Rs.16000 Min. Deposit

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Typically individuals apply for credit card by filling application form and sending it to the bank for further approval. This is a traditional way of application. Upon receiving the card request, banks perform a rigorous assessment and take decision on approval. Most importantly, the income of the applicant is first checked amongst many other factors.

For high income individual, this approach is not painful as their application is most likely to get accepted provided they meet all other eligibility criteria such as good CIBIL score, submission of documents such as pay slip or income tax return, and others.

However low income individuals often face problem in approval, as they are not able to meet income criteria of the bank. This typically happens when traditional approach is used for the application. However there is another way to get credit card requiring no income proof. This option is credit card against fixed deposit.

What is a credit card against fixed deposit?

It is a type of card offered to individuals having FD account with the bank. It is a type of account, which depositor open by keeping some amount with the bank and earn interest. There is a pre-defined tenure typically ranging from minimum 7 days to 5 years or more depending on the bank. The card limit is decided on the basis of the amount kept with the bank. Higher the amount, higher is the card limit.

But there is a minimum amount that needs to be kept with the bank and is not very high. Here is the table showing list of banks offering credit card against fixed deposit and the minimum amount required.

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1AssureRs. 25,000Bank of Baroda
2Visa ClassicRs. 50,000Vijaya Bank
3Visa GlobalRs. 1,00,000Vijaya Bank
4UsecureRs. 25,000Union Bank of India
5UnnatiRs. 25,000State Bank of India
6PaylessRs. 15,000Development Credit Bank
7SolarisRs. 25,000Kotak Mahindra Bank (ING Vysya)
8GalaxiaRs. 1,00,000Kotak Mahindra Bank (ING Vysya)
9Aqua GoldRs. 25,000Kotak Mahindra Bank (ING Vysya)
10AspireRs. 16,000Central Bank
11CoralRs. 20,000ICICI Bank
12Instant PlatinumRs. 20,000ICICI Bank
13Insta EasyRs. 20,000Axis Bank
14SignatureRs. 10,000Andhra Bank
15Advantage PlusRs. 25,000State Bank of India

As you see the amount required is not very high and low income earning individuals can easily get card with this option.

Who should opt for such cards?

This card is best recommended for the following individuals:

  • Low income individuals – working professionals or self-earners
  • Individuals whose card application was rejected earlier
  • Students
  • First time applicants
  • Housewife
  • Senior citizens (retired)

Above mentioned categories of individuals are most likely to face problem in getting a card (when applying through the traditional approach) assuming they have no or poor income. So credit card against fixed deposit is best recommended option for them.

Check out cards for low salaried with minimum salary of Rs. 5000.

So poor income earners can definitely try this option which has many benefits and most important being the first step in building credit history. Especially first time applicants can start building credit history by making regular payments (without a miss) and fully. No minimum balance to be paid.

A good credit history has many benefits. Any future loan/credit applications are approved only when applicant has a good score.

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2017: 43 Credit Cards with Annual Income (Rs.75,000 – 10 Lakhs) Required

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For credit card or any type of loan, the annual income is the most widely used criteria to judge whether the applicant is credit worthy or not. And based on that, the quantum of loan or credit limit is evaluated by the banks.

Here is the table showing credit cards and annual income required for each by prominent banks in India and the name of the card.

Credit Card NameAnnual Income RequiredIssuing Bank
India CardRs. 75,000Bank of India
Visa GoldRs. 1,50,000Bank of India
Visa Gold InternationalRs. 1,50,000Bank of India
Axis Bank GoldRs. 1,80,000Axis Bank
Canara Visa Classic / MasterCard StandardRs. 1,00,000Canara Bank
Canara GoldRs. 2,00,000Canara Bank
Visa ClassicRs. 3,00,000Andhra Bank
Visa PlatinumRs. 5,00,000Andhra Bank
Visa SignatureRs. 10,00,000Andhra Bank
RuPay PlatinumRs. 1,80,000Andhra Bank
RuPay SelectRs. 5,00,000Andhra Bank
TitaniumRs. 2,00,000Bank of Baroda
SignatureRs. 12,00,000Bank of Baroda
Bombay BullionRs. 3,00,000Bank of Baroda
Elite PlatinumRs. 4,00,000Bank of Baroda
Select PlatinumRs. 6,00,000Bank of Baroda
Gold for SalariedRs. 1,80,000Corporation Bank
Gold for ProfessionalRs. 1,80,000Corporation Bank
Gold for Senior CitizenRs. 1,20,000Corporation Bank
Gold for Self EmployedRs. 2,00,000Corporation Bank
Visa Classic for SalariedRs. 60,000Vijaya Bank
Visa Classic for Self EmployedRs. 50,000Vijaya Bank
Visa Global for SalariedRs. 1,20,000Vijaya Bank
Visa Global for Self EmployedRs. 1,00,000Vijaya Bank
MasterCard TitaniumRs. 1,50,000Central Bank of India
MasterCard WorldRs. 5,00,000Central Bank of India
Visa GoldRs. 1,50,000Central Bank of India
Visa PlatinumRs. 5,00,000Central Bank of India
RuPay PlatinumRs. 1,50,000Central Bank of India
RuPay SelectRs. 5,00,000Central Bank of India
GoldRs. 1,50,000Indian Bank
ClassicRs. 1,50,000Indian Bank
Gold for SalariedRs. 1,50,000Syndicate Bank
Gold for Self EmployedRs. 2,00,000Syndicate Bank
Classic for SalariedRs. 60,000Syndicate Bank
Classic for Self EmployedRs. 1,00,000Syndicate Bank
Classic for Senior CitizenRs. 60,000Syndicate Bank
SignatureRs. 5,00,000Union Bank of India
GoldRs. 3,00,000Dhanlaxmi Bank
Gold - Self EmployedRs. 4,00,000Dhanlaxmi Bank
Platinum - Salaried & Self-EmployedRs. 6,00,000Dhanlaxmi Bank
EmpowermentRs. 80, 000Jammu and Kashmir Bank
EmpowermentRs. 1,50,000Jammu and Kashmir Bank

It’s a myth that only high income earning individuals get credit card. The table above shows that if the card applicant has poor salary (e.g. less than Rs. 10,000 or 15,000 per month i.e. Rs. 1,20,000 or Rs. 1,80,000 per annum respectively), then also he/she can apply and get card approval. This is subject to the condition that the applicant also meets other eligibility criteria such as good credit score, submits all valid documents, etc.

Note: The income mentioned above is as on October 2017. Banks keep on changing the terms and conditions and processes each application differently as per their rules. So if credit card application of low income earner gets approved that does not mean, application of other will also get approved. This is because every application is different. For more clarifications, please contact respective banks.

Also, most banks do not specify income for many of their cards. You can visit respective bank or their website for details on more cards. There is a possibility that you may get better option than the ones listed above.

If card application gets rejected then no need to worry. There are few other options to get card as follows:

Add-on card: If any of the applicant’s family member (brother, sister or parents) has a credit card and a good CIBIL score, then he/she can apply for a supplementary card. But remember that, any default made by the add-on card holder will impact the credit score of the primary card owner. Banks will not ask for income proof of the supplementary applicant.

Credit card against fixed deposit: You just need a FD account with the applicant bank. There is a minimum amount that you need to keep with the bank in order to get the card. Depending the amount, the card limit is set. There is no income proof required and documentation required is minimum since most of the details of the FD account holder are already held by the bank.

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2017: 35 Credit Cards with Minimum Monthly Salary(Rs.5000 – 1Lakh)

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There are many queries asked by card applicants such as what is the minimum salary for credit card in India? And many individuals assume that credit card approval is mainly dependent on income and its proof submitted. And only high income earners get credit card approved. However this is not true.

There are cards for low salary earning individuals as well. And here is the table showing list of 35 credit cards along with minimum annual income starting from Rs. 5000 per month to Rs. 1,00,000 (1 lakh) and its equivalent monthly income required by the banks.

Sr.No.Credit Card NameMinimum Annual Salary RequiredIssuing BankEquivalent Monthly Income Required
1India CardRs. 75,000Bank of IndiaRs. 6,250
2Visa GoldRs. 1,50,000Bank of IndiaRs. 12,500
3Visa Gold InternationalRs. 1,50,000Bank of IndiaRs. 12,500
4Axis Bank GoldRs. 1,80,000Axis BankRs. 12,500
5Canara Visa Classic / MasterCard StandardRs. 1,00,000Canara BankRs. 8,333
6Canara GoldRs. 2,00,000Canara BankRs. 16,667
7Visa ClassicRs. 3,00,000Andhra BankRs. 25,000
8Visa PlatinumRs. 5,00,000Andhra BankRs. 41,667
9Visa SignatureRs. 10,00,000Andhra BankRs. 83,000
10RuPay PlatinumRs. 1,80,000Andhra BankRs.15,000
11RuPay SelectRs. 5,00,000Andhra BankRs. 25,000
12TitaniumRs. 2,00,000Bank of BarodaRs. 16,667
13SignatureRs. 12,00,000Bank of BarodaRs. 1,00,000
14Bombay BullionRs. 3,00,000Bank of BarodaRs. 25,000
15Elite PlatinumRs. 4,00,000Bank of BarodaRs. 33,333
16Select PlatinumRs. 6,00,000Bank of BarodaRs. 50,000
17Gold Rs. 1,80,000Corporation BankRs.15,000
18Visa ClassicRs. 60,000Vijaya BankRs. 5,000
19Visa GlobalRs. 1,20,000Vijaya BankRs. 10,000
20MasterCard TitaniumRs. 1,50,000Central Bank of IndiaRs. 12,500
21MasterCard WorldRs. 5,00,000Central Bank of IndiaRs. 25,000
22Visa GoldRs. 1,50,000Central Bank of IndiaRs. 12,500
23Visa PlatinumRs. 5,00,000Central Bank of IndiaRs. 41,667
24RuPay PlatinumRs. 1,50,000Central Bank of IndiaRs. 12,500
25RuPay SelectRs. 5,00,000Central Bank of IndiaRs. 25,000
26GoldRs. 1,50,000Indian BankRs. 12,500
27ClassicRs. 1,50,000Indian BankRs. 12,500
28Gold Rs. 1,50,000Syndicate BankRs. 12,500
29Classic Rs. 60,000Syndicate BankRs. 5,000
30ClassicRs. 60,000Syndicate BankRs. 5,000
31SignatureRs. 5,00,000Union Bank of IndiaRs. 41,667
32GoldRs. 3,00,000Dhanlaxmi BankRs. 25,000
33PlatinumRs. 6,00,000Dhanlaxmi BankRs. 50,000
34EmpowermentRs. 80,000Jammu and Kashmir BankRs. 6,666
35EmpowermentRs. 1,50,000Jammu and Kashmir BankRs. 12,500

So one thing to note is, income is just one of the eligibility criteria to get a credit card. Evaluation of credit worthiness of the applicant by the card companies is done on the basis of other requisites as well. These include:

  • Credit score
  • Age
  • Type of job (permanent or contractual)
  • Income is validated on submission of salary slip for last 3 months.

Additional reading: Tips on getting credit card with no income proof

Some banks also ask for (apart from card application form):

  • Income tax return document
  • Last 6 months bank statement
  • ID and address proof
  • Photograph

So as you can see above even for a monthly salary of Rs. 5000, credit cards are available. Even though very few banks offer cards for poor income earners the opportunity to start building credit history is important even though the credit limit is very low.

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6 Ways to Get Credit Card for Poor Salary/No Income Proof

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Your E-mail box is often flooded with credit card offers. But getting an offer and actually owning a card is not a straightforward process. There are multiple criteria considered by the banks before approving a card. Such as:

  • Income
  • Credit Rating
  • Age
  • Employer and so on…

However income of the applicant is the most commonly used parameter for credit card approval. There is a minimum income threshold to get a credit card. Individuals with low salary often face difficulty in getting a credit card compared to a high earning individual. Based on the income repayment capacity of the applicant is evaluated and decision to approve the card is taken. For a high income individuals, chances of card denial are low because of the salary requirement.

Moreover there are many employers who do not provide salary slip to their employees, which is actually a problem when the employee applies for a card.

So how can individuals with poor salary or no income proof get credit card?

Following are the ways to get a credit card if someone is earning a poor salary typically (less than Rs. 10000 per month):

Apply in banks offering cards to low salaried individuals: Not every bank or card requires high income in order to become eligible. Listed in the below table are 12 cards you can apply for if your monthly salary is less than Rs. 5000:

Sr. NoCredit Card NameMinimum Annual Income RequiredEquivalent Minimum Monthly IncomeIssuing Bank
1India CardRs. 75, 000Rs. 6,250Bank of India
2Canara Visa Classic / MasterCard StandardRs. 1,00,000Rs. 8,333Canara Bank
3Gold for Senior CitizenRs. 1,20,000Rs. 10,000Corporation Bank
4Visa Classic for SalariedRs. 60,000Rs. 5,000Vijaya Bank
5Visa Classic for Self EmployedRs. 50,000Rs. 4,166Vijaya Bank
6Visa Global for SalariedRs. 1,20,000Rs. 10,000Vijaya Bank
7Visa Global for Self EmployedRs. 1,00,000Rs. 8,333Vijaya Bank
8BharatRs. 72,000Rs. 6,000Indian Bank
9Classic for SalariedRs. 60,000Rs. 5,000Syndicate Bank
10Classic for Self EmployedRs. 1,00,000Rs. 8,333Syndicate Bank
11Classic for Senior CitizenRs. 60,000Rs. 5,000Syndicate Bank
12Empowerment for SalariedRs. 80, 000Rs. 6,666Jammu and Kashmir Bank

Salary account bank statement: If employer gets salary credited directly in the bank account but no salary slip is issued then applicant can show bank statement of the last 6 months. Every credit in the bank account will have employer name, which should be an acceptable income proof.

Check out – 26 ways to earn extra money in India.

Cheque: If you get salary in cheque with employer’s name, stamp and signature then make sure every month you take photocopy of the issued cheque. Also make a practice to deposit the cheque on a fixed date every month and later show bank statement as a proof. Photocopy should be an acceptable proof. Banks should accept this as a income proof, if salary slip is not issued.

Show offer letter: If employee doesn’t get salary slip or earns in cash but has high income then you can also produce offer letter to the card issuing bank along with above mentioned two documents.

Additional reading: 7 consequences of faking documents to get credit card.

Add-on: If any of your family member has a credit card then you can ask him/her to take supplementary credit card. Bank will not ask for salary slip or bank statement. They will only check primary card holder’s credit usage and accordingly issue an add-on card. This is also an excellent option to build or improve credit score.

Credit card against FD: This is an excellent option to get credit card requiring no income proof such as salary slip or bank statement. Many banks in India offer secured cards with credit limit 80%-90% of the FD amount. However every bank has a minimum fixed deposit amount limit and a tenure of minimum 180 days and most importantly FD should be on the card applicant’s name.

Here are few cards offered against FD by various banks in India:

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1PaylessRs. 15,000Development Credit Bank
2CoralRs. 20,000ICICI Bank
3Instant PlatinumRs. 20,000ICICI Bank
4Insta EasyRs. 20,000Axis Bank
5SignatureRs. 10,000Andhra Bank

So as you can see getting a credit card when you are earning poor salary is not difficult. But remember that cards are approved not just on the basis of salary. There are multiple criteria and documents which banks might ask on a case to case basis before approving the card.

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