7 Health Insurance Types: Individual, Floater, Top-up, Critical Illness & more

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Every individual’s health is different and needs vary accordingly. However one thing every individual should buy is a health insurance. This is because medical inflation is at rise coupled with lifestyle related diseases. With multiple health insurance insurance plans available in the market, it is confusing especially for a first time buyer to choose a desired plan and most importantly the insurer.

Here are the common health plans available in the already flooded Indian insurance market:

Individual health plan: It is a very basic healthcare plan typically covering treatments undertaken when hospitalized. The cover extends to pre- and post- hospitalization expenses on medication and diagnostics, subject to limits and conditions in the policy.

Family floater plans: This is an extended version of individual health plan. It covers a family by spreading the risk across the members. For instance, a Rs. 2, 00, 000 cover is spread across four members; two adults and two children. This plan is most recommended to those who cannot afford individual plans for every member of the family. Although different families have different healthcare needs, a family floater policy with a sum insured of minimum 10-15 Lakh is highly recommended for families living in metro cities like New Delhi, Mumbai, Chennai, and others. The reason for higher sum insured plan is because in such cities the cost of medical treatment is very high compared to smaller cities like Nagpur, Ahmedabad, Surat, and others.

Read more on family vs. individual plans.

Senior citizen health plans: As they name indicates, these are the plans for individuals who’ve crossed 60 years of age. Such plans come with a lower value of cover, due to the predictable risks associated. If you are a senior person with no health insurance in the kitty, then you should buy a basic health cover to reduce the financial burden on you or your dependents, in case of any hospitalization. But remember that, not many companies in India offer plans for senior as probability of health risks go up as you grow older. And if they do, exclusions create hindrance. This is the reason why medical insurance should be bought at an early age as premium is low as risks are minimal.

Check out what to look for in a senior citizen plan.

Group health cover: Provided by employer to their employees with additional benefits that individual plan do not offer. The most important benefit is that the pregnancy is covered in most of the plans, which typically is not covered in an individual or family floater. And if covered, waiting period is applied.

Hospital cash: Such plan pays a fixed sum for each day spent in the hospital. This sum excludes room rent and medical treatment undergone during the stay at the hospital. It acts as a buffer as it prevents income loss due to hospitalization.

Critical illness plan: Long term critical illness health lists wide range of cost, low incidence critical health conditions such as cancer, stroke, or kidney failure that it covers for 20 years period. Most recommended to individuals having family history of critical ailment or the ones leading a lifestyle which typically leads to such illnesses. It also helps to cover medical bills and other related expenses and acts as a supplement to health insurance plan.

Top-up and super-top up plans: This cover goes beyond the threshold limit or the maximum limit of the existing health insurance policies. For instance, if an individual has an individual cover of Rs. 3, 00,000 and also a top-up cover for 10, 00,000; the threshold limit of 3 lakh will work the best.

If you are not happy with your health plan, then transfer option is also available.

Choosing a right insurer after going through terms and conditions in detail is also a key factor to be considered in addition to the type of plan. It’s your duty to know as much as possible about your policy and its features/benefits.

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How should single breadwinner plan finances

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Financial planning for the individual with following scenario:

Annual Income: 11. 50 lakhs per annum
No. of dependents: 3
Any insurance taken: No
Group cover: Yes. But parents not covered.
Any loans taken: Yes – Personal loan.

Insurance is the most important thing such an individual should buy. Here are the recommendations:

Life insurance: If you are the only earning member in the family with dependent – wife, mother and father, the adequate life cover should be the top most priority. Best and the cheapest option is to buy a term insurance.

Personal Health Insurance: In addition to this, you should buy personal health insurance even if the family is covered by employer i.e. group cover. In case you switch to new job where group cover is not provided then your personal health cover will take care. Adding a maternity cover will further benefit. Read more on reasons to buy personal health policy.

Health insurance for parents: If parents are not covered under the group plan, comprehensive health insurance should be purchased. Although premium would be on a higher side but it’s worth putting money to avoid financial setback when anything happens to the parents leading to hospitalization. In such a scenario, insurer will take care of the expenses.

Get rid of debt: Before such a person falls in a debt trap, personal loan should be paid off as early as possible.

Emergency fund: If there is additional cash in the bank account, then the same should be transferred to a recurring deposit account or a liquid mutual fund. Your aim should be to create a corpus of over 2 Lakhs, which will come to rescue at the time of any emergency.

Cut short unnecessary expenses: Start maintaining day to day expense diary and without fail note down the expenses. This way you can know what expenses were irrelevant so that next time you can control spend.

Go Online: If you shop only at physical stores then give a look at online shopping. Buying stuffs online can benefit in the form of cashbacks or discounts. You can create comparison sheet consisting of price of product at store vs. online. If the difference is significant then buy from there.

Increase earnings: Plan to get a job/business which will increase the earning by 20%+ within 2 years. It is the only to way to beat inflation and meet financial goals such as buying house/car.

Short term plan: Large plan of the accumulated savings should go into debt mutual funds and liquid mutual funds if the goal is to buy own house and a car in the coming years. Check out high risk, high return investments.

Medium to long term plan: Once some of the short term goals are met, start investing in equities. This is recommended to beat inflation and for this 40%-50% of the assets should go into equity or equity linked funds.

The most important point is to revisit the goals after 1-2 year and change the investment strategy accordingly.

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Where to Invest under Section 80C, 80CCC, 80D*, 80CCD, 80CCG

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Everyone who fits in the tax bracket has to mandatorily pay income tax. Although it’s painful; but for the nation’s economy it is very essential. Afterall the money accumulated from tax collection is used by the government for nation welfare projects such as road construction, energy, education system, and many others.

Therefore it is essential to have understanding of all the avenues that helps in tax saving and most importantly build wealth over time. Currently there are multiple investment avenues that take care of your tax liabilities and at the same time provide security to your life and health. Check out zero risk investment products.

These tax savers cover a wide ambit, from tuition fee paid for your child to the preventive health check-up you go for.

SectionWhat can be doneMaximum Investment Limit
80CInvest in EPF, PPF, NSC, NPS, ULIPs, LTA, Children's tuition fee, medical expenses, insurance premiums, 5-year tax saver FD, ELSS, senior citizen's saving scheme, Sukanya Samriddhi Yojana, Home loan principal repaymentRs. 1.5 Lakhs
80CCCClaim tax deduction on contributions to annuity plans from insurance companiesRs. 1.5 Lakhs in conjunction with section 80C
80D*Purchase medical insurance policies for self, family, and parentsSelf and family: Rs. 25,000
Senior Citizen: Rs. 30,000
Self and family + parents: Rs. 50,000
Self and family + senior citizen parents: Rs. 55,000
80CCDContribute to National Pension SystemEmployee and/or employer contribution up to 10% of basic salary and DA** is eligible up to Rs. 1.5 Lakh for tax deduction in conjunction with section 80C benfits under section 80CCC (1&2) as applicable. Additional exemption up to Rs. 50,000 in NPS is eligible for income tax deduction outside the section 80C limit and can be deducted as a deduction under section 80CCE.
80CCGRajiv Gandhi Equity Savings Scheme (RGESS)Deduction available on 50% of the sum invested or Rs. 50,000, whichever is less. Deductions can be claimed for 3 successive years, over and above the section 80C limit subject to complying with other requirements.

Most of us wait till the end of year and hastily plan our tax savers but it should rather be a year round affair.

Just like your provident fund gets deducted every month from salary, your tax planning too should move regularly. Remember, investing too is a form of saving. National Pension System (NPS), home loan, pension funds, insurance, ELSS, etc. are all investments that secure your future.

By taking up a good health and life policy, the gain is not just in terms of taxes, your dependents have it easy even when you are not around.

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Close HDFC Personal Loan in 2 Steps, Imp. Things to After Closure

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It’s a golden rule to repay any type of loan before the term ends. This is because personal loan carries a very high interest rate compared to other loans. So getting yourself out of recurring debt will help in saving good amount of money.

In India, there are multiple avenues to get personal loan such as commercial lenders, co-operative banks, peer to peer lenders, local money lenders, and others.

HDFC bank, India’s top most private bank offers personal loan at an interest rate of 15.75% – 20%. This article provides procedure to close HDFC personal loan in 2 steps as follows:

Step-1: Call their customer care number to get address of the nearest HDFC branch office. You can get their support number by clicking on this link.

Just select your city from the dropdown list. E.g. for top cities – Ahmedabad / Bengaluru / Chennai / Delhi & NCR / Hyderabad / Kolkata / Mumbai / Pune, 61606161 is the calling number. You need to add STD number of the city. If you are an NRI, then visit this link to get the calling number.

Step-2: Once you get the branch details, take your government issued identification document, loan account number for verification to the bank. Bank personnel will then verify all the documents and get loan account details. In case of any remaining due, you will be asked to pay the same.

Points to note: HDFC personal loan closure is not possible online or over phone. You will have to personally visit the bank to close the account.

Check out personal loan for low income earners.

Important things to remember after closing the personal loan account at HDFC:

Considering the fact that HDFC bank charges interest rate of 15.75% – 20%; quick closing of the loan account is the key for the borrower to save money spent on EMI. But closing your account does not necessarily mean, you are all done. There are certain key things you need to do for a successful closure:

  • Collect all the important documents: After HDFC personal loan is closed, collect acknowledgement letter from the bank. Collect all the documents if you have taken loan against property/securities/policy etc.
  • No objection/due certificate: Another important document to ask HDFC bank is the NOC. No objection certificate or no due certificate is officially accepted legal proof of loan account closure. The certificate states that the borrower has made all the repayments and no outstanding balance is pending.
  • Pre-closure acknowledgement receipt: If you have closed your HDFC loan account before end term; then get pre-closure acknowledgement receipt from the bank.
  • Get report from CIBIL: After 60 days of HDFC loan closure, visit CIBIL website and get your personal credit report. Key thing to check is whether bank has updated the loan account record at CIBIL stating loan account closed. If record is not updated, then E-mail HDFC bank to do so at the earliest. E-mailing will help you in case no response is received from the bank.

Read about HDFC credit card payment options.

The reason to do all these is because it will help you in case any disputes arise in the future when you apply for any type of credit or loan or if the bank get back to you stating dues are still remaining.

Various personal loans from HDFC Bank:

  • Loan on credit card: This pre-approved loan Insta Loan and Insta Jumbo loan is for HDFC credit card holder. Loan amount is within the credit card limit for Insta loan. Higher loan amount can be granted in case of Jumbo loan. Other bank’s card holder can also get loan by transferring the balance from other bank to HDFC bank credit card. After transfer you can continue payin the due in EMI.
  • Loan against securities: Instead of selling securities such as equity shares, mutual funds, gold deposit certificates, LIC policies, NSC, KVP; you can get loan by giving these securities to the bank. Interest is charged only on the amount withdrawn from the account and the time for which the amount is utilized.
  • Loan against property: Higher loan is possible by mortgaging your property with the bank. Another benefit is that the EMI is low and higher tenure.

Other types of loans offered are professional loan, loans against assest, and consumer durable loan.

Benefits of taking personal loan from HDFC Bank:

  • Eligibility check in one minute
  • Get loan approved within a day provided all the eligibility criteria are met
  • Faster loan processing
  • No hidden charges
  • Account holders can get special offers on interest rates and other charges
  • Women employees get better rates compared to others
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Investment of Rs.5000 in Mutual Fund for 25 Years Aged Individual

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Mutual fund investments has become popular as risk appetite of individuals have gone up. Here are few queries asked the readers of this blog.

How should an individual aged 25 years and earning Rs. 25, 000 per month invest in mutual fund?

25 years is an excellent age to enter investing in mutual fund through systematic investment plan. If such an individual is ready to invest Rs. 5000 every month in SIP, then long term systematic investing through SIP is recommended. Once such an individual arrives at the time frame for which regular investments are planned, then he/she should assess the risk tolerance and decide on an appropriate asset allocation which can be a mix of equity and fixed income. Then select the funds to start build a portfolio.

Top rated (Rank-1) CRISIL funds for the year 2017 are:

Large Cap1 Year % Returns as on 12Jan2017Small & Mid Cap1 Year % Returns as on 12Jan2017
DSP BR Focus 25 Fund (G)15.4DSP-BR Micro Cap Fund - RP (G)20.5
Kotak Select Focus Fund - Regular (G)18.3Franklin (I) Smaller Cos (G)18.3
SBI Blue Chip Fund (G)12.8Mirae Emerging Bluechip Fund (G)21.2

Finally, review the performance of these funds at least every year and accordingly make changes or rebalance your portfolio to maximize the gains.

What if someone has invested in an ELSS in the year 2015 for 2 years and wants to redeem or take money out?

Equity linked savings scheme or ELSS have a lock-in period of 3 years. It means that unless your investments complete three years, you cannot redeem them.

If someone has Rs 1 Lac and wants to invest for child’s future in mutual fund, how can he go about it?

A sizeable corpus can be created for the child’s future by investing regularly through SIPs in mutual funds. Consider long term goal of minimum 10 years and start investing in the following top rated diversified equity funds by CRISIL (Rank-1):

Diversified Equity1 Year % Returns as on 12Jan2017
Birla SL Advantage Fund (G) 18.5
Birla Sun Life Equity Fund (G)26.1
Birla SL India GenNext (G) 16.2
Principal Emerging Bluechip(G)20.4
Sundaram Rural India Fund (G)31.5

Assuming 1 Lac is deposited in bank, SIP can be started in any of the above two funds for a monthly sum for long term. However it is the duty of the investor to track the performance of the invested fund regularly and assess the growth and realign whether it is moving in the direction of achieving the set financial goal.

Someone who is aged 35 years and has just started investing in mutual funds through SIP in the funds SBI bluechip equity, Birla sunlife top 100, Mirae asset emerging bluechip and BNP Paribas mid cap. Has the investor selected best funds under his/her portfolio or another fund should be invested in?

The fund selection looks good and instead of adding new fund, he/she should increase the allocation to any of the existing investments. This is because, the performance of these funds has been good. Here’s the table showing 1, 3, & 5 year performance.

Name of Fund1 Year3 Year5 Year
HDFC Equity6.3915.7416.06
Mirae Asset India Opportunities7.0518.9219.07
HDFC Top 2008.113.914.63

If this investor still wants to put money in mutual fund, then he/she can try opting for ELSS which carries a lock in period of 3 years.

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11 Credit Card Fees Every User Should Know

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In the current economic scenario of India, we’re talking about demonetisation, using credit cards over apps and cash is very understandable. However if you thought that credit card do not cost anything until the due amount is paid on time then you are wrong.

Although credit cards give you comfort and convenience, there are various charges associated with them apart from the late payment fees. And these charges if goes unnoticed can put card holder in a debt zone unknowingly. So next time before swiping the card, read the card statement showing various costs minutely. Alternately you can also read the fineprint i.e. document which mentions the terms of card usage.

Here are costs, paid by the card holder:

Annual fee: This is the fee charged by the card issuer every year. However this may be waived off when certain pre-fixed amount is spent in a year. Normally Rs. 200 is the minimum annual fee charged by most of the card issuing company. However there are cards with no annual fee available in the competitive card market.

Late payment fee: Almost every card owner must be knowing this fee. This is a fee paid when the balance is not paid on time. A flat fee is charged irrespective of the number of days delayed or depending on the card type.

Overdraft charges: If spend on the card is higher than the credit limit then a fee is charged known as overdraft charge. It is a fixed percentage of the overdrawn amount.

Foreign transaction charges: If you purchase any product or pay for any service in currencies other than Indian rupee, then this fee is charged which is typically in the range of 3%-5% of the transaction amount. This is commonly seen in online transactions when products/services are purchased in foreign currency.

Service tax: Expenses on the credit card are subject to service tax which is levied on the total value of the transaction at 14% service tax applicable on the intrest, fees, and charges.

Outstation cheque fees: If you use an outstation cheque to settle your credit card dues, then you will be charged a fee which is a certain percent of the cheque value subject to a minimum amount.

Cash withdrawal charges: Withdrawing cash from ATM with credit card attracts charges. The transaction charges on cash withdrawal are as high as 2.5% of the cash advance.

Duplicate statement fee: Cardholders are charged a fee on request for issuing a duplicate card statement.

Revolving interest rate: If you do not pay your final due amount before the final date, then you would be charged 1.99%- 4% interest every month.

Cheque bounce: In case, you make a card payment via cheque and it bounces or there is a failure of ECS, it would attract a fixed amount penalty by the card issuer.

Petrol and railway ticket: Using the credit card to fill petrol or rail tickets attracts additional charges. This charge is a flat percentage of the amount spent. Check out credit cards for fuel purchase in India along with their benefits.

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17 Personal Loan with No Foreclosure & Partial Prepayment Charges

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Emergency money requirement can impact financials of anyone especially those who earn less. And unforeseen events such as medical emergency, job loss, etc. can affect person’s financial health badly. At such times borrowing money in the form of personal loan is the best alternative.

You can get personal loans from following common sources in India:

  • Commercial banks
  • Scheduled and un-scheduled co-operative banks
  • Peer to peer lenders (P2PL)
  • Local money lenders

Getting yourself out of recurring debt as early as possible is the key to financial success. Sooner you pay-off your dues, better would be your finances as you will save money on EMIs and the interest. And the saved money can then be used for any other purpose such as investing etc. Check out personal loan for low income earners.

However financial institutions do not think this way as they want borrower to continue repayment as long as possible. Because for them, pre-payment of loans or partial prepayment before the end term is loss making as they lose out on EMI. This is the reason banks keep loan tenures longer or charge higher EMI to earn more profit. And this hurts honest borrowers the most. Even though they have a timely loan repayment record, they still can’t close their loan account before the standard tenure ends.

Foreclosure charge is basically a certain percentage charged on the outstanding principal amount in addition to the applicable taxes. Part prepayment is charged in a similar way but the charge is lower than the foreclosure.

But not every bank charges fee for paying the entire loan amount before the actual end of its term. Enlisted in the below table are the lenders offering personal loan with no preclosure charges or offer partial waiver along with the interest rate charged by each. Many of these lenders do not levy prepayment charges when EMI is paid for a certain number of prefixed months/years.

Name of LenderInterest RateLoan Foreclosure Charges
Axis Bank15.5% to 24%No foreclosure and prepayment charge
Bank of Baroda0.1475Nil
Oriental Bank of Commerce0.1375Nil
Punjab National Bank16% to 16.25%Nil
State Bank of India0.182Nil
United Bank of India0.1625Nil
IIFL Finance14%-18%Nil
IDFC Bank11.99% - 19.50%Nil
LendboxOn applicationNil
i2ifundingOn applicationNil
Andhra Bank0.1575Nil
Corporation Bank12.75Nil
State Bank of Mysore0.1655Nil
State Bank of Hyderabad15.25%-15.75%Nil
State Bank of Patiala0.1195Nil
State Bank of Travancore0.1245Nil
Dena Bank0.13Nil
HSBC Bank11.49% to 17.5%4% - partial prepayment
YES Bank0.14Nil - partial prepayment
Allahabad Bank12.10% – 14.60%Partial Prepayment - 2.25% of Outstanding Balance
Bajaj Finserv 0.1199Partial waiver - 2% on principal outstanding
HDFC Bank15.5% to 22.25%Partial Prepayment - 4% of Principal Outstanding
ICICI Bank15.5% to 22.25%Partial Prepayment - 5% pa of principal outstanding

Some banks may allow you to pay a certain percentage of the loan amount in a financial year, thereby reducing the burden of the loan. And even this option is better compared to loans offered by banks with pre-closure charges.

Things to do after closing personal loan:

Loan account closure gives a good sigh of relief to the borrower. However things may become problematic in future, if you do not consider following factors:

  • Get all important documents from the bank: Post loan closure, you should get back all the important documents submitted to the bank while taking the loan. Most importantly this includes acknowledgement letter given to you at the time of closure, etc.
  • No objection/due certificate: Another important document is the NOC, a legal proof of closure. This states that the borrower has made all the repayments and no outstanding balance exists. Although it is the responsibility of the lender to send NOC to the borrower but you should too not forget to ask for the document.
  • Pre-closure acknowledgement receipt: If you have closed your account by paying all the dues before the term ends, then get pre-closure acknowledgement receipt from the bank. Also try not to make pre-closure payment in cash. Cheque or demand draft can help as proof.
  • Get report from CIBIL: After 45 days of closing the loan, get report from CIBIL and check whether the lender has updated the loan account record at CIBIL. If record is not updated, then ask your bank to do so at the earliest. Make this particular communication in writing, which will act as a proof.
  • In addition to these, always keep a duplicate copy of each and every loan related documents handy including loan application, approval, closure letter, cheque payment copy, etc. And it’s best to keep soft copy of all these documents in your mailbox. Every document pertaining to the loan is critical and can help in the time of need.

The reason to do all these is because it will help you in case any disputes arise in the future when you apply for any type of credit or loan or if the bank get back to you stating dues are still remaining.

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Jan Dhan Account Deposits after Demonetisation – Key Summary

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The biggest financial decision made in the history of Indian economy – DEMONETISATION has impacted various sectors badly. However the biggest beneficiaries was the banking sector. The deposits in the bank account post currency ban has swelled significantly giving banks a much needed smile.

However the Jan Dhan accounts which were lying dormant before the demonetisation, has now seen a record breaking deposits 45 days after the ban. Funds deposited into these account was highest in the first week of currency ban. But after this week, the deposit amount went down. Bogus transaction was one of the technique used by black money holders to turn black money into white.

Action by income tax department:

The upper cap under JDA is Rs. 50, 000. But due to these startling deposits, Income tax department is going to scrutinize the deposits and take action on individual account holder with suspicious account activity. And action would be taken on individuals who used their account to deposit other’s money. It has been observed that people holding black money in cash used bank account of poor for cash depositing.

The sole objective of doing this is to prevent black money holders to make illegal use of the account.

Here are some of the key highlights of Jan Dhan Deposits after Rs. 500 & Rs. 1000 currency note ban:

87, 000 Crore: Total amount deposited within 45 days of the note ban i.e as on 01Jan2017.

41, 523 Crore: Amount deposited in Jan Dhan account between 10th November 2016 – 23 December 2016.

48 lakh bank account: Number of bank accounts in which 41, 523 Crore was deposited.

45, 637 Crore: The deposit amount in Jan Dhan accounts across India before 09 November 2016.

2, 022 Crore: Worth of cash deposited as on 30 November 2016.

Uttar Pradesh, West Bengal & Rajasthan: The highest number of deposits came from these 3 states.


3,285 Crore: The total withdrawn sum from the Jan Dhan accounts in the last fortnight.

10, 000: Maximum amount that can be withdrawn every week from the account provided the account is KYC compliant. This will put curb on black money holders wanting their money back.

5, 000: Maximum amount account holder can take out if it is a non-KYC compliant.

Unknown Transfers:

Many people have reported suspicious transactions. And this includes, amount worth Rs. 99, 99, 99, 394 nearly 100 crore deposited into the bank account of women from Meerut.

Rs. 9, 860,681 unknown transfer reported by grocery store owner in Uttar Pradesh.

Both these accounts have been freezed for now. And account will soon become operational.

About Pradhan Mantri Jan Dhan Yojana:

PMJDY was launched in August 2014 with a sole objective of providing zero balance bank account in every Indian household and at the same time promote financial inclusion.



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Instant Cash Loan @1% interest per day: Peer to Peer Lenders

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The need of immediate money can arise anytime and you might need money for any purpose such as medical expenses, existing loan repayment, emergency at home, financial crisis, etc. And at such time when there is a dire need of money, you have to rely either on your personal savings or ask your relatives/friends. Although these are the best sources; but the quantum of money decides whether these sources would be sufficient enough to meet the requirement of emergency money requirement.

If these sources doesn’t help in meeting the urgent money requirement; personal loan is the best option. You can approach any bank (co-operative or commercial) and apply for the loan and get the money. But this is not that simple as it sounds; because banks especially commercial banks take into consideration multiple factors before approving the loan. The main objective is to prevent losses. The most common eligibility criteria include but not limited are:

  • Income
  • Credit score
  • Age
  • Loan amount required
  • Documentation

So how to get instant personal or cash loan?

The answer is peer to peer lenders who provide short term money which are typically in small amount.

There are many peer to peer lending (P2PL) companies in India offering instant cash loans with few even approving within 1 hour.

Here’s the list of prominent peer to peer lending companies in India:

  • https://www.moneyinminutes.in
  • https://www.rupeelend.com
  • https://www.faircent.com
  • https://www.i-lend.in
  • https://indialends.com/
  • https://www.i2ifunding.com
  • https://www.instapaisa.com/

These companies can offer loan with amount as low as Rs. 5000. However there is a ceiling on the maximum loan amount. Check out difference between P2PL and banks.

But considering the fact that instant cash loans are best suited for people with no job or with poor or no credit history, the loan limit should not be a concern. Moreover when loan repayment is fully done on time, borrower can apply for another loan at a reduced interest rate compared to the previous loan. Read more about peer to peer lending.

How to apply to get instant cash loan?

Since the cash loans are made available on an urgent basis and serviced 24*7, the application process is much simpler at these online money lenders and takes just few steps:

  1. Online registration by the short term loan applicant on the website of the P2PL. Details to be entered are personal, employment and financial.
  2. Uploading documents as listed below on the website/via E-mail/handing the same to the P2PL’s executive
  3. Once details are verified the money is transferred directly to the bank account of the applicant. You will notification from the P2PL

Documents required are:

  • Proof of government issued ID proof (Aadhaar/PAN/Passport/Voter-ID) & address proof
  • Income and employment proof
  • Bank statement

Benefits of getting instant cash loan:

  • Rates of interest are very less and some even charge on a per day basis. For e.g. Moneyinminutes.in charges between 0.1%-1% interest per day. Although the rates, tenure and loan amount varies with each lending company.
  • Next time you apply for a loan again, the interest rates offered are normally low.
  • No processing and prepayment penalty charges.
  • Loan term can be less than 3 months as well

Above listed features or benefits are not possible in case of commercial or co-operative banks. This is the reason why the concept of peer to peer lending is growing in India. Loans from such companies are worth recommended due to flexibility in tenure and simpler documentation and eligibility criteria.

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Personal Loan for Government Employees/PSU: Income, Loan Amt., Interest

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Government or PSU employees, especially those who have retired have to be very good at savings. In order to meet their day to day expenses sufficient saving is the key especially when he/she is the only earning person in the family or when there is no one to support financially. However life is uncertain and any unfortunate event or emergency can take place anytime and can take a hit on your pocket. Although personal saving can be utilized in such scenarios but it may not be able to fulfill the demand always. And even if it does, you may not be able to meet the future financials objectives.

And at such difficult times like medical emergencies, marriage of children etc. taking finance from banks help. There are many financials offering personal loan for government employees or PSU. Although such loans are expensive but still it helps in attaining the temporary money crunch. Check out personal loan for low salaried individuals.

Here is the list of banks offering personal loan for PSU or central/state government employees. The table also shows loan amount, interest rate and income required.

Name of BankMaximum Loan Amount (INR)Interest Rate %Monthly Income Required
Oriental Bank of CommerceFor govt. employees: 5,00,000
For pensioners: 2,00,000
11.9510,000 +
Bank of India5000004.00% + BSS (0.30%) above 1 Year MCLRNA
Axis Bank150000015.50% to 24%15000+
State Bank of India150000012.45% - 12.95% 7500+
IDBI Bank10000000.129915000+
Bank of Baroda1000000One year MCLR +SP+3.00% to One year MCLR +SP+ 6.00%NA
State Bank of Travancore - Suvidha Loan36 times the net monthly income12.20-12.7020000
State Bank of Bikaner & Jaipur150000011.85 + one year MCLR9000
Punjab National Bank1000000MCLR+3.10%NA
Central Bank of India1000000MCLR(12m) + 3.00%

There are many other banks offering personal loan to state/central government employees or from public sector undertakings (PSUs). But above listed ones are the top most banks.

Note: Interest rates keep changing from time to time. So check with bank for latest rates.

Which working class individuals fall under the category of government or pensioners?

All central and state government employees falling under the following categories

  • University or college teachers
  • Permanent and employees who are confirmed
  • Age not greater than 65 years. Age criteria varies for each bank.

Eligibility criteria for personal loan:

Not every application guarantees loan as banks carry out very strict financial history check of the applicant. The main purpose is to evaluate credit worthiness of the individual so that risks involved can be avoided beforehand. Here are the most common eligibility criteria required:

  • Income: Your earning plays the most important role. The loan amount and interest rate approval is dependent on this.
  • Most banks ask for salary account with their bank.
  • Credit history: This is the most important factor in any type of loan or cedit card application. This is the only way using which banks get the whole financial transaction history of the applicant. A poor credit history is the indicator of default and banks can reject the application in such cases. Read more on loans for individuals with poor credit score.
  • Applicant should be a permanent employee
  • Other criteria include age, employment history – years been with the current organisation, documentation, & others.

Other options to get personal loan are:

  • Peer to peer lenders
  • Co-operative banks
  • Secured loans either against FD or LIC policy
  • Private money lenders
  • Against gold
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