A new car loan is arguably a convenient way of financing the purchase of your dream car. Repayable in Equated Monthly Instalments (EMIs), a bank loan enables you to bring your dream car home without depleting your savings or making any major changes to your lifestyle. Of course, your overall cost of borrowing affects the EMI you ultimately pay. As a borrower, you desire the most favourable EMIs to keep your finances intact.  

To that end, you can take some smart steps and reduce your EMIs, thereby making your car purchase a financially sound decision. Here are five actionable tips that can help you lower your new car loan’s EMI.

1. Compare and Negotiate Interest Rates Offered by Lenders

The interest rate charged on your new car loan directly affects your EMIs. The higher the interest rate, the higher the EMIs you eventually pay. Since new car loan interest rates vary across banks, it’s best to compare lenders to find one offering attractive interest rates along with flexible repayment options.

A good credit score, spotless credit history, and good standing with your existing bank are sure to help you negotiate a favourable interest rate.

2. Choose a Car Loan with a Comfortable Repayment Tenure

When applying for a new car loan, it’s a good idea to select an offer with a comfortably long repayment tenure. When you choose a lengthy tenure, your loan amount is equally spread out over a longer period which ultimately brings down your EMIs.

For instance, a loan amount of INR 10 Lakh will require an EMI payment of INR 83,333.3 for a tenure of 1 year. On the other hand, it will reduce to INR 41,666.6 if the tenure is 2 years. If you are planning to apply for a new car loan, consider opting for a longer repayment tenure to lower the EMI.

3. Make a Bigger Down Payment on Your Car

A down payment is the percentage of the vehicle’s price you are required to pay upfront at the time of the purchase. As the principal amount borrowed rises, so does your overall interest payout. Making a big down payment reduces the loan amount you need, thus reducing your interest obligation.

However, exercise caution when deciding the amount of your down payment as it can deplete your savings.

4. Prepay Your Car Loan

If you earn a bonus, receive a salary hike, year-end incentives or any such windfall, prepaying your loan partially or completely can help you reduce your EMIs.

Pre-paying your loan partly will help you reduce your principal amount, thereby lowering your EMIs. Alternatively, if you can prepay your loan in its entirety, you can eliminate the need to pay EMIs altogether. However, this might attract prepayment or foreclosure charges. To make an informed decision, make sure to examine your bank’s policy in this regard.

5. Opt for a Loan Balance Transfer

You can reduce your new car loan’s EMI even after taking a loan from a certain bank. If you find another bank offering lower interest rates and higher flexibility on car loan repayment, you can make use of the loan balance transfer facility. This facility allows you to transfer the remainder of your loan amount from one bank to another to benefit from better loan terms. Since balance transfer charges and procedures vary across banks, read the fine print and discuss the process with both banks for a smooth transfer.

6. Reduce Your New Car Loan EMI

Buying a new car is a significant investment that benefits you for many years to come. With the above-mentioned tips, you can considerably economise the purchase of this investment.

Comparing interest rates offered by lenders, choosing a car loan with a comfortable repayment tenure, making a bigger down payment on your car, prepaying your car loan, and opting for a loan balance transfer can help you lower your new car loan’s EMI substantially.

Are you ready to make your next car purchase friendlier for your bank account? Contact a trusted lender and apply for a new car loan online today!

Adding ‘international trip planning’ to our busy schedule sends stress soaring! ATMs, credit cards, forex cards – there are one too many finance options with complex rules! However, selecting the right one can make all the difference in ensuring you have a smooth and hassle-free vacation.

The two most popular options travellers face are forex cards and traditional banking through ATM withdrawals or credit/debit cards. But which one should you go for? Let’s weigh the pros and cons of each to help you decide.

What is a Forex Card?

A forex card, also known as a travel card, is a prepaid travel card that allows you to store money in multiple foreign currencies in one card. Forex cards function similarly to debit cards and can be used to withdraw cash from ATMs, make POS payments at retail outlets, restaurants, etc. or shop online internationally.

Some key benefits of forex cards are:

• Available in multiple popular international currencies like USD, EUR, GBP, etc., allowing easy usage globally
• Safe to carry instead of cash and easier to use than traveler’s cheques
• Locked-in exchange rates protect you from currency fluctuations
• Can be easily reloaded as per requirement
• Accepted worldwide across ATMs and merchant outlets

Pros of Forex Cards

• Fixed Currency Exchange Rates: When you load a Forex card with foreign currency, the exchange rate is locked in, protecting you from any currency fluctuations later on.
• Security: Carrying forex cards is safer than carrying foreign currency cash, which you could lose or be robbed of. Forex cards can be locked instantly if stolen or lost.
• Low Transaction Charges: Using a Forex card to withdraw money internationally leads to lower fees compared to domestic debit/credit card transactions or international wire transfers from banks.

Cons of Forex Cards

• Reloading Inconvenience: You may run out of loaded amounts, so you’ll need access to reload facilities, which may not be conveniently available while travelling due to network availability
• Limited Currencies: While forex cards allow multicurrency storage, the currency options are still limited, usually to 8-10 major currencies. They may not be useful if travelling to exotic countries.

What is Traditional Banking?

Under traditional banking options for international travel, you would primarily use your domestic debit/credit card or withdraw cash locally through foreign ATMs using your domestic card.

The major traditional banking methods travellers rely on include:

• Domestic Debit/Credit Cards: Usage charges apply but convenient if your card allows international transactions
• International Bank Wire Transfers: Transfer money into an overseas bank account from your domestic account before you travel
• Overseas Bank Account Withdrawals: Withdraw cash using your ATM/debit card from an existing bank account in the visiting country if you have one
• Overseas ATM Withdrawals: Withdraw cash from ATMs in foreign countries through affiliated banking networks using your domestic debit card

Pros of Traditional Banking

• Wider Acceptability: Debit/credit card acceptance is wider than forex cards, especially in developed countries.
• Familiar Process: Using your domestic card internationally mirrors your local usage experience closely.
• Emergency Fund Access: You can wire transfer additional money if needed urgently through your bank while travelling.
• Rewards Points: International transactions may allow accruing travel rewards points on premium cards.

Cons of Traditional Banking

• Hidden Charges: International ATM withdrawals, wire transfers and card usage attract additional banking charges plus currency conversion fees.
• Foreign Transaction Fee: Using your domestic card overseas also attracts charges ranging from 3-5% per transaction. These add up.

Should You Opt For a Forex Card or Traditional Banking?

While both forex cards and traditional banking have their pros and cons, forex cards are emerging as a more convenient, flexible and cost-effective option in most cases, especially for frequent international travellers visiting multiple countries. For most travellers, keeping a Forex card handy loaded with your primary country currencies and having a credit/debit card as backup is the best combination.

Conclusion

While traditional banking options still have their place, forex cards provide better exchange rates, convenience, security and flexibility for stress-free international trips. As worldwide travel opens up post-pandemic, the multi-functional forex card truly provides peace of mind, allowing you to optimise your overseas spending as well as enjoy cashless convenience across world destinations.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. 

Planning a trip abroad? You’ll need foreign currency. And while travellers’ checks were once the norm, forex cards are now the preferred way for globetrotters to access travel money.

Forex cards allow you to load multiple currencies onto a single card, which you can then use to withdraw cash or make purchases while travelling overseas. They offer safety, convenience, and potential savings compared to other options.

Read on for 7 emerging forex card innovations to know about.

1. Multicurrency Cards

The latest Forex cards enable you to load up to 16 major world currencies onto a single card. Popular options include:

• USD – United States Dollar
• EUR – Euro
• GBP – British Pound Sterling
• AUD – Australian Dollar
• CAD – Canadian Dollar

Multicurrency cards provide optimal convenience, eliminating the need to carry several single-currency cards when visiting multiple countries. You can seamlessly spend the local currency or withdraw cash at ATMs throughout your journey.  Top providers like IndusInd Bank’s Indus Multicurrency Forex card now offer multicurrency cards loaded with up to 14 currencies in one.

2. Real-Time Exchange Rates

Historically, exchange rates were locked in when you loaded a Forex card, meaning you could lose out if rates moved in your favour afterwards. But new “auto-load” features allow your card to stay updated with real-time exchange rates. The card provider automatically tops up your balance in the background. This way, you always pay the latest exchange rate when making purchases or withdrawals, protecting you from currency fluctuations.

3. Enhanced Security

As digital payments grow, security remains paramount. Leading forex card issuers now provide state-of-the-art safeguards:

• Chip and PIN technology for physical transactions
• 3D Secure authentication for online purchases
• OTP verification for ATM withdrawals
• Instant transaction alerts to your mobile
• Emergency assistance services

Advanced security protocols give you peace of mind to use your forex card anywhere, knowing fraud attempt risks are minimised.

4. Superior Analytics

Managing budgets is critical when travelling internationally. Forex cards now equip consumers with superior data and analytics for optimised control. Access real-time balance and transaction histories via web portals and mobile apps. Receive instant SMS or email alerts on withdrawals, purchases and more. Analytics provide rich intelligence so you can closely track spending patterns and account activity.

5. Integration of Blockchain and cryptocurrency

Blockchain and cryptocurrency integration into forex cards is one of the emerging trends that’s reshaping how travellers manage their finances overseas. This innovation harnesses the power of blockchain technology, known for its enhanced security, transparency, and efficiency, to revolutionise the traditional forex card landscape. The use of blockchain and cryptocurrencies in forex cards also promises more seamless cross-border transactions.

6. Virtual Cards

As the world digitises, forex cards go virtual! Utilise “virtual” accounts to shop online while abroad, accessing eCommerce in 200+ countries. Virtual cards safeguard your financial data, providing single-use card numbers that expire shortly after each transaction. Manage and reload balances through convenient mobile apps. Virtual cards streamline how we tap into global marketplaces.

7. Biometric Security

Passwords and PINs now need to be updated as biometric authentication takes centre stage. Many leading banks now offer forex cards supporting fingerprint/facial recognition access via mobile apps. This approach verifies identity by your unique biological traits. Along with near-instant purchases, biometric tech prevents unwanted eyes from accessing our accounts. The future is cardless yet secure!

The Future is Bright

As innovators drive advancements in multicurrency capabilities, security, analytics and more, the humble forex card still has ample room for reinvention. Amid these evolutions, one of the most convenient options available to travellers is the ability to buy forex online, blending seamlessly into the fabric of modern travel finance solutions. Who knows what the future holds? For now, we embrace the journey to tap into savings as we traverse this beautiful world. Any destination, any currency, no worries. Forex cards unlock travel’s magic.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. 

Summary: With features such as flexible tenure and high loan amounts, home loans are ideal for purchasing or constructing a house. Home loans in India also offer borrowers tax savings under the Income Tax Act, 1961. Borrowers can claim tax deductions on the principal repayment, interest repayment, and stamp charges under different sections of the IT Act. With IndusInd Bank, customers enjoy transparent documentation, doorstep assistance, balance transfer facility, easy eligibility criteria, attractive interest rates, and flexible tenures.

A home loan is one of the best credit vehicles for individuals looking to realize their dream of home ownership. From flexible tenures to high loan amounts, this financing option is ideal for purchasing or constructing a house on a residential piece of land. Additionally, home loans in India offer borrowers tax savings as stipulated by the Income Tax Act of 1961.

Such tax deductions allow borrowers to save money in each financial year. However, tax planning, on the whole, requires a meticulous and holistic approach based on your income. To understand the nuances of tax savings on a home loan, let’s understand the applicable tax deductions and their associated conditions under the IT Act.

Tax Deductions on Principal Repayment

Section 80C of the IT Act allows loan applicants to claim a deduction on the principal amount of a home loan EMI. In a financial year, the maximum amount that can be claimed is INR 1.5 lakhs. However, to claim this deduction, the house should not be sold within 5 years of possession.

Tax Deductions on Interest Repayment under Section 24(b)

Section 24(b) of the IT Act allows borrowers to claim a tax exemption of up to INR 2 lakhs on the interest repayment for home loans. To claim this deduction, the loan must be taken for the purchase/construction of a house, and the construction must be completed within 5 years from the end of the financial year in which the loan was taken. If the construction exceeds 5 years, only a deduction of INR 30,000 can be claimed for the financial year.

Tax Deductions on Stamp Duty

Under Section 80C of the IT Act, borrowers can claim a deduction for stamp duty and registration charges in the year these expenses are incurred, within the overall limit of INR 1.5 lakhs.

How to Maximize Tax Benefits on a Home Loan

You can maximize tax benefits on a home loan by applying for it jointly. For joint home loans, each borrower can claim a deduction of up to INR 2 lakhs on the interest repayment and up to INR 1.5 lakhs for principal repayment. The borrowers must also be co-owners of the property to be eligible for this double tax deduction. In this way, you can maximize the tax benefits on a loan.

Apply for Easy Home Loans with IndusInd Bank

Home loans offer an excellent avenue to purchase your dream home while reducing your tax liability. IndusInd Bank takes the benefits of a home loan a notch up by offering the following:

–          A wide range of loan products

–          Doorstep service with fast and easy processing

–          Attractive housing loan interest rates

–          Convenient balance transfer facility

–          Transparent and no hidden charges

–          Simplified documentation

–          Funding up to 30 years of tenure

With a wide variety of products, competitive interest rates, and quick in-principle sanctions, IndusInd Bank endeavours to make your home loan journey as smooth as possible.

To know more, visit the IndusInd Bank website and apply for a home loan online today.

Summary: A home loan is a secure and convenient way to purchase your dream house. To determine your home loan amount, lenders consider your salary and job stability. The amount is also influenced by factors like age, credit score, existing liabilities, and property value. Choose IndusInd Bank for favourable terms to achieve your homeownership dreams while maintaining financial stability.

Embarking on the journey to homeownership is a significant milestone in your life. Whether you are seeking a perfect home for your family or want a modern, urban dwelling, the prospect of owning a home is one rife with anticipation and dreams.

Smart home buyers rely on home loans to finance their dream property. Offering a flexible way to access funds, these loans empower a borrower to navigate the path to homeownership with confidence. While banks typically finance 70%-80% of the property’s value, the final amount a homebuyer is eligible to borrow depends on a host of factors. These include their income, age, credit score, existing debt, and prevailing housing loan interest rates.

For salaried applicants, their income serves as a prime indicator of their financial stability and repayment capacity. Naturally, it plays a crucial role in determining the borrower’s eligibility and, ultimately, the final loan amount. For a smooth home buying journey, you must have an understanding of the final loan amount you can secure.

How Salary Affects Home Loan Amount

Salary serves as a comprehensive indicator of a borrower’s financial capability since your repayment capacity hinges on how much you earn. Borrowers with higher salaries have a greater chance of receiving approval for higher home loan amounts. Not only does this enhance their affordability threshold but also instills confidence in lenders, assuring them of the borrower’s capacity to meet the monthly repayment obligations with ease.

Other Factors that Affect Home Loan Amounts

While your salary is a significant determinant, it is not the only factor in the home loan equation. Lenders consider several other aspects to determine the loan limit. These include:

· Age

Your age at the time of loan application influences the loan tenure. Younger applicants may get longer tenures, thus potentially larger loan amounts, as they have more working years ahead of them.

· Credit Score

A credit score indicates your financial health and repayment history. A higher score not only improves your loan eligibility but can also secure you more favourable interest rates.

· Existing Debt

Lenders consider your debt-to-income ratio to evaluate your repayment capacity. Existing loans or liabilities can affect your home loan eligibility.

· Property Value

Banks typically fund a percentage of the property’s market value (often up to 80-90%), known as the Loan to Value (LTV) ratio. The Reserve Bank of India (RBI) has set certain guidelines on the LTV ratio for lenders.

· Work Experience and Job Stability

A stable job or business enhances your eligibility for a housing loan, as it reflects a higher repayment capability.

Affordable Home Loans by IndusInd Bank

IndusInd Bank’s home loans offer a blend of flexibility, affordability, and convenience. Offering remarkable features and benefits, these flexible loans are tailored to meet the unique needs of the modern borrower. Key features include:

·  Attractive Interest Rates

Enjoy competitive housing loan interest rates on your loan and move closer to realising your dream of affordable homeownership.

·  No Prepayment Charges

Repay your loan anytime without incurring additional charges (applicable only to loans with a floating interest rate).

· Quick Turnaround of 3 Days

Don’t delay your dream of homeownership any more. With a quick turnaround of 3 days, you can move closer towards your dreams.

· Balance Transfer Facility

Transfer your existing home loan to IndusInd Bank hassle-free.

· Longer Tenures

Manage your loan repayments comfortably with longer tenures and lower EMIs.

Realise Your Home Ownership Dreams with IndusInd Bank

A home loan is a firm step towards homeownership, and your salary is a crucial factor in determining how large a loan you can obtain. With IndusInd Bank, you can avail of a home loan quickly at competitive interest rates. Apply for a home loan online