All posts by ANAND BHIDE

Travel is the best teacher as it helps one to understand different people, culture, traditions and lifestyles. It trains people on how to adapt, be more open, embrace the uncertainties, be modest and live in the moment. However, the financial aspect of travelling could possibly mar a beautiful experience, if not handled well.
Leisure and business international trips are accompanied by inevitable expenses. The common expenses include booking flight tickets, buying train tickets, and reserving hotel rooms. However, travellers also need to make room for costs such as meals, car rental, filling up gas/fuel, parking, taxi, tolls, cell-phone service, data plans, basic supplies for personal or official purposes and medical emergencies.
There was a time when handling cash, making purchases and carrying out transactions while travelling used to be a cumbersome task. International credit and debit cards were the only options left for people who didn’t want to travel with a lot of cash.
Things have changed for better now with multi-currency forex card and pre-paid travel cards.

International Travel Made Easy with Multicurrency Card

Experienced travellers often warn about ‘sneaky travel cost spikes’ when dealing in foreign currency. The exchange rates and currency value constantly fluctuates, making it difficult for tourists visiting a foreign land to plan their expenses. It can knock the best of plans and arrangements off the track. If the trip involves visiting multiple countries back-to-back, then the problem multiplies.
This is where multi-currency card comes to the rescue. It is risk-free, economical, easy-to-use and highly convenient. Probably one of the smartest financial products available in the market, travel cards protects your money from yo-yoing foreign exchange rates. As you can freeze the most favourable rate, you have complete control over your money, which is the exact opposite of the traditional methods of international currency dealings.

Benefits Galore

The Indus Multi Currency Card is a wallet-sized card packed with customer-friendly features and benefits. As safety and security sits at the top of the priority list, strict directions are followed to keep customers’ money safe. The first security measure is an embedded chip that provides highest level of protection to multicurrency travel card users. Instant SMS alerts, online access and immediate hot-listing act as extra precautionary measures.
With the safety & security feature neatly in place, let’s move to the other benefits. Travellers can load up to 8 currencies on each card, namely US Dollar, Euro, Australian Dollar, Great Britain Pound, Singapore Dollar, Saudi Riyal, Canadian Dollar and Arab Emirate Dirham. With this card in your bag, a seamless travel experience is guaranteed.
Make international stay & flight bookings, shop for souvenirs, pay various entry fees at tourist attractions and dine at restaurants of your choice without any hassle. Card users can withdraw money from ATMs without attracting any charges. With a validity of 3 years, you can place a request for a new card if you lose or misplace the primary card. Encashment process is as easy as the card application & issuance process.
In usual circumstances, the travel card can’t be used for transactions within India. However, shopaholics can now indulge in guilt-free shopping at the Delhi Duty Free outlet with Indus multicurrency card. Business travellers can select gifts and souvenirs such as Indian tea, spices, ayurvedic products and sweets for their international clients and colleagues before boarding the flight. Card-holders can also shop at the duty free shop on their way back with the balance amount.
You can get your hands on high-end perfumes, cosmetics, chocolates, liquor and fashion accessories at deep discounts. Those who forgot or didn’t get the time to buy gifts for family & friends back at home could buy presents duty free with the help of the multicurrency card.

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Manage your Finance

5 Tips on Maintaining a High Credit Score

December 20, 2017 ANAND BHIDE Leave a comment

A good credit score is an important factor in establishing creditworthiness. This score is a statistical representation of a person’s history of repaying their debts and the risk involved in lending money to that person. This is a yardstick by which lenders measure how financially trustworthy a person is before deciding whether or not they wish to offer them credit.

If you choose to apply for a credit card, the issuance of the card and the credit limit on it are based to a great extent on this score. Similarly, in case of a personal loan, your eligibility, approval of the loan, the amount to be sanctioned and the terms of this loan are largely dependent on the health of your credit score. If your repayment ability is healthy according to your financial profile, chances of approval and beneficial interest rates increase. Existing claims on your income and other loan obligations, however, reduce chances of approval. There are a number of factors that affect the credit score, and you must consider these aspects before taking any credit or loans. These include –

· Payment history – whether you could be trusted to repay an amount lent to you

· Amounts owed – whether or not there are existing claims on your income and how much debt you have incurred

· Length of Credit History – the duration over which you have used credit

· New Credit – the number of new accounts you apply for and the last account you opened are used to gauge your credit risk

· Types of Credit Used – whether you have a mix of different kinds of credit

With these factors in mind, you could maintain a good credit score by following these tips –

Check Your CIBIL Report

Regularly checking one’s credit report is an essential discipline that must be inculcated if you wish to maintain a good score. Not only does this help you follow your credit behaviour, but it also organizes and gives direction to your financial life. Especially if you have a low score, this habit will help you identify the weaknesses in your profile, which you could analyse and then work towards plugging. Also, it is not uncommon to have discrepancies or errors in your report, which have the effect of weighing down your score. Keeping a regular tab on your

reports and reviewing each account would help you easily detect any such discrepancies and resolve them in good time.

Use the Credit Card Wisely

It is always wise to try and maintain your credit card usage at below 30% of your monthly credit limit. Credit utilization is a major factor in influencing your credit score. If you are regularly pushing the upper limit on your credit card, you may be considered risky and your credit score is likely to go down. When you show high levels of dependence on credit, lenders may not be too inclined to extend funds to you.

Try to keep a low credit utilization ratio and accept offers to increase your credit limit as it helps reduce this ratio. Low dependence on credit bodes well for your profile and improves your CIBIL score.

Avoid Late Payments

Not only do you end up paying the penalty when you miss the date for a credit card payment or when you are late to pay the EMI on loan, but your credit score also suffers heavily, even in case of a single delay.

You must ensure that you have sufficient resources to repay any amount that you borrow and plan your income and expenditures to be able to determine how much EMI you can afford on a monthly basis before opting for a loan. Always ensure that you have the funds to pay for the purchases made through your credit card and never miss the minimum amount due on your credit card every month. Further, if you have numerous repayment obligations, which makes it difficult to track the due payment dates, consider making automatic debits through your account.

Good Credit Mix

By diversifying your portfolio into a sound mix of secured and unsecured loans, you could boost your credit score. Since the kind of loans you have opted for can swing your score, try getting a secured loan and paying off the unsecured ones first. A large number of creditors on your profile could lead to a drop in the CIBIL score.

Limit Applications

It is unwise to apply for numerous credit cards or loans, especially within a short time span. With each application, there is an enquiry into your creditworthiness, and if you show a high degree of dependence on credit, through multiple applications, your score is sure to plummet.

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Beyond business

Credit card: Myths and Facts

December 20, 2017 ANAND BHIDE Leave a comment

We all love credits, but there is one credit which has a slightly misplaced image– a credit card. People are often scared of credit cards, thanks to the myths associated with this financial aid always at our disposal. Festivals, emergencies, family functions, or vacations may mean large expenses for you. That is when the true utility of a credit card comes to fore.

A credit card is not only immensely helpful for unforeseen expenditures, but its associated benefits are also manifold, including reward points on each transaction that you make, cashbacks on certain purchases, specific discounts on availing services from some of the affiliated brands and stores, etc.

As we slowly embrace the cashless economy, owning a credit card will always be an advantage if you use it judiciously. So, we will clean-bowl all the myths you might have heard about credit cards so you can get one that suite you, today

1. Myth: Credit Card Hurts Credit Score.

Fact: Credit card can actually help improve your credit score.

You will be surprised to know this, but your credit card actually boosts your credit score. It can take you one step closer to a favorable response from the banks if you need a loan.

Your credit card can spoil your credit score only if you do not pay your bill on time. Credit scores are spoiled only in case your expenditure is more than your earning and you do not have any alternate means to amortize your debt. A credit card can come to your rescue for meeting your urgent needs.

2. Myth: Paying off minimum balance is good enough and won’t attract interest.

Fact: For interest-free credit, always pay the total amount due.

By paying the minimum amount due, you just avoid the overdue payment charges. But you will be charged interest on the amount due and you will lose the privilege of the grace period for all new transactions. This will also have a negative impact on your credit rating. Always pay the total amount due on your credit card.

3. Myth: I don’t need to sign at the back of my credit card.

Fact: Signature makes you an authorized owner of the credit card.

We often take some things for granted, like signing on the back of the credit card. Understand that this little thing can save you from a big problem in the future.

When the POS machine is installed at any outlet, the merchant and the bank undergo an agreement regarding the card usage. According to the agreement, the merchant is contractually bound to check the authenticity of the card used. However, this process is usually ignored by the merchant.

If you have signed your credit card and in case your card gets stolen, you are not liable to make any payment if the merchant fails to check the authenticity of the card. But if you have not signed the card, then you are at the mercy of the thief. So, without further ado, sign your card before you head out for shopping or eating out the next time.

4. Myth: My credit card cannot be compromised if the PIN and password are safe with me

Fact: Check the authenticity of the website before entering your PIN and/or password.

This is one of the issues where the credit card users are caught off-guard. The RBI has made it mandatory to use a PIN as a security feature in all cards. However, you can still use a card without your PIN while doing online transactions. Many websites do not ask for your credit card PIN.

So when you make any online purchase, ensure that the website is authentic. Your card details are vital, and if they get in the wrong hands, it can render you financially vulnerable. A small check like “https” in the URL of the website can save you from inconvenience later.

5. Myth: Too many credit cards hurt the credit score.

Fact: The number of credit cards has nothing to do with your credit score.

Customers prefer more than one credit card owing to the various benefits associated with different cards. For example, an airline mileage card is beneficial for a regular traveler,

while a cashback card is ideal for shopaholics. Such features of credit card add-on to your overall experience.

People often dissuade others to apply for more than one credit card believing it will land you in huge debts and a poor credit score. But this is not true. If you are using your credit cards judiciously and paying your bills on time, the number of cards does not affect your credit score.

6. Myth: It is impossible to duplicate my credit card.

Fact: Beware of fraudsters.

Every credit card has an EMV chip that holds your details. When you swipe your credit card at any POS terminal, it automatically accesses your data. Advent in technology has also led to smarter fraudsters. There are various machines that can clone your card in seconds. To avoid such situations, always use your card at a trusted merchant and genuine websites. Also, ensure that the card is swiped in front of you; never allow payments to be made in your absence.

7. Myth: Loyalty pays, so stay loyal to one credit card.

Fact: Choose a credit card basis your spend patterns

You should always look for options to maximize your financial benefits. You can change or upgrade your card depending on your requirement. Each card has its own features and benefits to match your need. Also, you can enjoy the joining bonus and other rewards, too.

We can confidently say that a credit card is a financial tool that helps you to manage your finances, especially accidental or nonplanned expenditures. We hope we have busted all the myths you might have heard about credit cards. So, say goodbye to your dilemma and apply for a credit card now.

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Investment

Should You Opt For A Personal Loan Balance Transfer?

December 20, 2017 ANAND BHIDE Leave a comment

When a person has taken loan from a particular financial institution and transfers his/her outstanding principal amount to another bank, this process is known as the balance transfer of loan, or simply transferring loan balance. This is a facility, which allows you to approach a bank for a loan equivalent to the outstanding amount with your current bank, to repay your current bank and continue your loan with the new bank. Known as refinancing or the takeover of a loan, this is a lucrative facility that reduces the rate of interest that you must pay against your loan and eventually helps you save money on the interest you actually end up paying.

It’s available on all kinds of loans including personal loans. The basic motive behind a personal loan balance transfer is to reduce the burden of debt. Lower interest rates, reduced EMIs and better features allow you to lower the cost of your loan and save money in the long run.

,Transfer Process,

Getting your personal loan transferred is a fairly simple process. You must get in touch with your current financial institution and get a quote regarding your current personal loan. This quote would include the outstanding principal amount, the rate of interest being paid, the tenure that has lapsed and in favour of whom the payment must be made. In case of personal loans, 12 months of repayment history must exist for a balance transfer to be allowed.

By approaching the bank, you will get an idea of all the schemes and services being offered on personal loan balance transfers and may compare these to your benefit. Once you have decided on a bank, you may apply for the transfer by providing the following documents –

For salaried employees –

· 3 months’ salary slips

· 3 months’ bank statements which show salary to be credited

· Identity proof

· Address proof

· PAN Card

· KYC documents

· 2 photographs

The minimum age of an applicant must be 21 years, while the age at maturity of the loan should not exceed 60 years. A minimum net monthly income of INR 25,000 is required to be eligible for this scheme.

For self-employed individuals –

· PAN Card

· Balance Sheet and Profit & Loss Statements, with relevant annexures and schedules, from the last 3 years

· Current Account statements of the business

· Savings Account statements of the individual

The minimum age in this category is 25 years, while the maximum age at the maturity of the loan is 65 years. An annual net income of at least INR 4.8 lakh post-tax deduction must be shown to be eligible.

Factors Influencing Loan Transfer

Transferring your personal loan would usually be a profitable and rewarding step. However, you must choose the right scheme, with terms that suit you, to enjoy the benefits of a transfer. There are several factors which you must consider before deciding to transfer your loan. Some factors which could help you decide include:

· Calculating the Total Outflow – You must consider the tenure over which you are paying EMIs. Though it may seem an attractive deal to pay smaller EMIs over a longer duration, you end up paying interest for a longer duration. Since you continue to pay interest on the outstanding loan amount for this extended duration, this scheme increases your total outflow towards the loan. It is advisable to compare the total amount you would be required to pay at your current bank and transfer the outstanding amount if that amount turned out to be higher than the outflow the new bank would cause you. For instance, with a personal loan balancer transfer, you will pay 15% of interest rate instead of 18%, and if your loan amount is INR 5 lakhs, then you end up saving INR 48,000 over 60 months (tenure).

· Studying the Processing Fee and Other Allied Charges – A number of charges could be levied by a particular institution to approve a personal loan balance transfer. It is

essential that you consider the processing fee, documentation charges, fee for pre-payment, penalties in case of default and any other chargeable contingencies to assess the total cost of refinancing. This total cost should be closely compared with the potential benefits of lower interest rates. If the benefits outweigh the costs, you should make the transfer.

· Collateral to Outstanding Ratio – Depending upon the loan amount that is outstanding, you could offer the new bank a collateral which is of substantially lesser value. If a large amount of the loan has been repaid, it is rather unfair to have to deposit the same amount of security as you had done for the original loan amount. By offering a lesser collateral, you could use the remaining amount to secure other loans if need be, or negotiate a more favourable interest rate in case the bank refuses to accept your offer.

Advantages of Loan Transfer

Transferring your personal loan or refinancing has some benefits. Such as:

· Reduced Interest Rates – If your existing bank is unwilling to reduce the rate of interest on your personal loan, it is advisable to transfer the loan to a bank willing to offer lower rates, longer duration or reduced EMIs to help you save money. It is wise to refinance as early as possible given that you stand to save more.

· Standing Instruction Facility – During refinancing, it is easy to avail a facility whereby a standing instruction to the bank would automatically deposit the required EMI from your account towards the loan account on the repayment date. It becomes easier not to default this way.

· Loan top-up facility – In case of personal loans, you could choose to transfer the outstanding amount and then raise more funds to be able to meet your requirements.

· Ease of Application – You are not required to submit complicated documents and may improve the features of your existing loan by following a simple transfer process. Transferring your loan is a simple process of notifying your current bank and applying to a new bank to avail better terms.

Transferring of the personal loan balance is a hassle-free way of saving money, which should be undertaken by everyone who has taken a loan, at least once during their tenure.

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Investment

5 Money Moves You Should Avoid If You Are Aiming For An Early Retirement

December 20, 2017 ANAND BHIDE Leave a comment

Retiring early is a dream garnered by most individuals, but not everyone is able to realize this dream. It is not a difficult goal to achieve as long as you are focused and smart with the decisions you take.

Myth: Most of us consider retirement as a stage in life where an individual decides to hang his boots and call it a day as far his career is concerned.

However many financial experts rightly consider retirement as a stage in life wherein regular income for a bread earner may be hampered due to death, disability or disease.

It therefore prudent to not only ensure that an individual is able to manage funds in a manner that future expenses can be covered, but also protect the future expenses/ financial milestones through a comprehensive protection solution mitigating the risk of death, disability or disease which my hamper future income and lifestyle.

Many financial experts would ask one simple question that revolves around retirement: “When do you tend to spend more – On a Weekday or a Weekend?”

The answer 9 out of 10 times is : Weekend !

I am sure everyone would agree that post retirement every day is a weekend!

The bigger picture here is that we tend to spend more when we have time to for ourselves, therefore it is imperative that while considering our future expenses we consider these behavioral aspects as well.

The most challenging, and also most exciting, aspect about seeking an early retirement is that there is less time to accumulate wealth and more time to enjoy it. So it is essential to plan your moves carefully and manage your finances smartly in order to reap benefits in the golden years of life. A few errors in judgment could very easily disrupt all your plans of an early retirement. To ensure that does not happen and your dreams become a reality, here are some moves you should judiciously avoid –

1. Not creating a financial plan

Unless you have a proper formula to achieve your financial goals, you probably will not be successful. Though it is not a difficult path to pursue, you cannot set off on the journey randomly and expect results. Time taken to formulate a written plan which chalks out the roadmap is an investment in your future. This will help you manage money more efficiently, minimise the effort you might waste and provide the focus and direction required to meet your goals.

2. Big loans

An increased income brings with it the urge to spend more and live a more exorbitant life. However, indulging in these luxuries at an early stage in your work life would usually mean that you take a loan and pay instalments for a large part of your remaining work life and save next to nothing for retirement. Taking various loans to purchase a house, big cars, gadgets and other luxuries serves as a big hurdle on the road to early retirement and must be avoided.

3. Not taking insurance

Smart planning is not all about investing money in the right places and saving a certain amount of money from your income. It is also necessary to protect the money you have worked so hard to accumulate. One accident or hospitalization has the potential to dent your retirement kitty substantially. You may ignore insurance as being an unnecessary expenditure, but paying a small premium an individual mitigates the risk of death,disability or disease which may have a catastrophic effect on the planning designed towards various financial objectives including having a prudent retired life.

4. Starting investments late

Early retirement is all about making the most of your time. The more time you give your money to grow, the greater is the wealth that your money can generate. The compounding effect of wealth creation is such that a few years of procrastination could make a massive difference to your retirement funds. People tend to feel the need to save for retirement at a late stage in their work life, which is an attitude you cannot have if you plan to retire early. Ideally, you should start investing your money from the very first paycheque you receive.

5. Being reckless with retirement goals

Using the money you have saved for your retirement to fulfil other desires will not allow you to retire with financial security. Having funds at your disposal through your retired life is a need that cannot be ignored. Compared to this need, certain wants/desires could be postponed till the essentials are fulfilled. You must not drift from your direction and be reckless about the goals you set out to achieve.

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International Travel Made Easy with Multicurrency Card

Benefits Galore

Check Your CIBIL Report

Use the Credit Card Wisely

Avoid Late Payments

Good Credit Mix

Limit Applications

,Transfer Process,

Factors Influencing Loan Transfer

Advantages of Loan Transfer

1. Not creating a financial plan

2. Big loans

3. Not taking insurance

4. Starting investments late

5. Being reckless with retirement goals