6 tips on how to get the best deal on a car loan

A few years back, buying a car was a luxury not everyone could afford to have but, with growing pace of time, purchasing a car is no longer a luxury. Cars are now an important part of our lives and to own a car has become relatively easier with a number of auto loans offered by the companies. To live without a car hinders our social as well as professional life. Thus, emerging car loan lenders have made it easy for us to purchase a car by paying loans through installments or EMIs.

car--loan

Although, we need to take care of below mentioned points before seeking a car loan:

  • Shop around to get the best rate: Usually, you shop around to find the best car for yourself likewise, to get the best possible bank loan for your car, you need to do the same. Car buyers are discouraged by the dealers to buy a loan from other banks, they often pick loans from the bank with which car dealers have tied up. In this case, you must talk to other banks regarding car loans and you are more likely to get attractive offers than what your dealer was offering you. Therefore, before purchasing a car, you must do proper homework in order to get the best results.
  • Always negotiate the price of car: The car price should always be negotiated in order to bring down the cost of a car loan. Hence, this is the best possible way of doing so. Car dealers have usually fixed some sizeable margin on every car and possibly, you can get some discount on them. You must speak to multiple dealers for your car loan to get a brief knowledge on various offers and discounts available. At the end, if the price of your car will go down similarly, the amount of your car loan will drop too.
  • Go for shortest loan tenure, which you can afford: Never ever make the tenure of your loan needlessly long. You should always try to repay the amount as early as possible. Longer tenure means your EMIs are low but, if you can afford then make sure it lasts for a period of 3-5 years, which means your total interest rate would be fairly low. No need to opt for long tenure loans if you desire to buy an expensive car. A car loan for eight years makes no sense, as it will significantly increase the total cost of the car.
  • Keep a check on your credit reports: Well, before getting a loan, you must check your credit card reports. Any inconsistency in your credit card report may affect your credit card profile. Also, this can lead to higher car loan interest rates. You must get in touch with the rating agencies, in case you find any problem with your credit card.
  • Must avoid the extras by dealers: Buying is not the end always. Sometimes, dealers charge extras on cars by adding a number of accessories, which include central locks, gear locks to audio systems. Never buy the accessories from a dealer shop because their rates are significantly high. You have to buy them from a good accessory shop at reasonable prices.
  • Do not forget to read the document: You must not forget to read the documents carefully at the end. The documents will include prepayment charges, interest rates and other terms and conditions. Thus, this is to make sure that you read the whole document carefully before signing it.

So, if you are planning to buy your own dream car, opt for the right car loan.

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Five Tips Which Will Help You Buy The Right Child Insurance Plan

The only wish of parents is to see their child happy and be the best in everything. Along with rearing duties, financial planning for the child’s future is important as well. With rising inflation, the cost of education, health expenses, and the standard of living is being affected.

child insurance plan

Under such changing times, the best way to secure a child’s future is through a child insurance plan. To buy the right plans is vital for your child’s future. We list out five points to consider while buying such an insurance plan.

  1. Buy A Plan As Early As Possible

Most insurance firms design these plans where the maturity date coincides with a child turning 18 years of age. Many offer payouts at regular intervals after the child turns 18 and maturity benefits too. To buy such plans early, when your child is still an infant, is prudent. It gives you a long investment period to build a healthy corpus.

  1. Look For Plans With Premium Waiver Option

In case of a parent’s death, the insurer waives off the remaining premiums and the insurer continues to fund the insurance policy until its maturity. That’s the benefit of a premium waiver option. This feature ensures the child insurance plan remains uninterrupted and provides the maturity benefit in spite of the death of the parent. Thus, the child’s financial future isn’t interrupted.

  1. Option Of Partial Withdrawals

There are times when an emergency arises with regard to your child without any premonition. You may need to withdraw some funds from the insurance policy and that’s when partial withdrawals are most helpful. Plans with such a feature are helpful as you can meet the sudden expenses without going in debt and the insurance plan continues without any interruptions.

  1. Choose A Plan Which Offers Cover As Well As Good Investments

There are many plans offered by insurers. An ideal child insurance plan will invest in a good mix of debt and growth funds to gain good returns in the long run. Another aspect is to find a plan which gives a substantial cover in case of the parent’s death so that the child’s future is secure.

  1. Compare

In the age of the internet, it’s easy to compare insurers and their offerings. There are many aggregator websites which offer a listing of child insurance policies, their features, and benefits. Go through them, and go through the user comments too as to get an idea about various plans, and then make a choice.

A child insurance plan is your best bet when it comes securing your child’s future. Go for insurers such as Aegon Life and HDFC Life which offer great plans with features aimed to give your child the best cover for his future.

What do you need to know about UPI?

Making payments is no longer a hassle with the recently introduced UPI system by the National Payments Corporation of India with the founder, Reserve Bank of India. It came into operations on 11 April, 2016. This is a single payment platform which powers a number of banks together in order to provide services to customers. There are 30 banks that have joined this system. These include public and private sector banks such as HDFC Bank, Axis Bank, Punjab National Bank, ICICI Bank, State Bank of India and many others. The main aim of UPI is to enable transfer of money between two bank accounts with the use of a smartphone.

upi

With the use of UPI, you don’t have to type out all the details of your credit card or any other for the purpose of any transaction. This is because you can make direct payments through this app from one bank account, either online or offline, to different merchants. Every participating bank has its own UPI app which is available on Google Playstore. If you are wondering what kind of transactions can you make on this app, well, it could be anything such as paying for your child’s tuition fees or payment to any other person that you need to make from a vendor to a relative.

There is no time restriction when it comes to the functioning of Unified Payment Interface. There is a transaction limit on the use of UPI which is Rs. 1 lakh on every transaction. In terms of safety of the app, it is very secure and reliable. It is only the virtual address of the customer that is shared. There is no other information that is revealed. After the announcement of demonetisation, UPI comes across as a great mode of payment for many people in the country. For example, you can use Axis Pay if you have a bank account with Axis Bank for transactions.

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What you need to know before availing a personal loan?

Sometimes expenses come uninvited. Children’s marriage or educational expenses, savings won’t get you through all the costs. It becomes vital for you to avail some sort of assistance from bank, and what better than a personal loan.

personal loan

A personal loan, also referred to as unsecured loan, is a financial aid to meet your current expenses. It is the most convenient way to borrow money, since you don’t have to keep any security against it. It is usually convenient for borrowers looking for quick and easy loans with the minimum documentation and paperwork. You also have the flexibility to use the funds as per your convenience without being monitored for the actual end usage.

Most banks offer instant loans without much hassle but there are always hidden terms and conditions. Read on to know what all things you need to keep in check before availing a personal loan.

  • Since it is an unsecured loan, the interest rate is as high as 11%. Know your budget and keep a track of EMI’s you will be required to pay. The amount of loan sanctioned will depend on your repayment capacity.
  • You can only avail a personal loan for emergency expenses such as medical or educational costs. If it is for leisure like a vacation, banks won’t approve of such loan.
  • The amount of personal loan you avail should not be more than 10 % of your salary.
  • Different banks have different rates of interest which is why it is important to research well before you apply for personal loan.
  • Keep a check on your credit score. A bad credit score may lead to rejection of your loan.
  • Do not take multiple personal loans as they will create a negative impact on your credit history.
  • Several financial institutions tend to make lucrative claims, do not fall in such traps.
  • You can use online personal loan calculators, it helps you to accurately calculate the EMI.

Some Lesser Known Benefits of Life Insurance

Most of the people view life insurance policies only as a tax saving instrument. People are unaware of the multitude of benefits offered by life insurance plans. Most of you must be aware that the main purpose of buying a life insurance is to ensure the financial security of your loved ones. Being a responsible adult, it is your duty to ensure the well-being of you family even in your absence. Life insurance provides you with many advantages that are unique to it and cannot be found in other investment avenues. Here are some of the unique and lesser known benefits of life insurance:-

life-insurance plans

  1. Return on investment: – Life insurance policies provide a huge coverage for economical premiums. Life insurance plans such as term insurance is very easy on the pocket, but provide a massive death benefits to your family. Life Insurance plans ensure that your dependents can lead a decent life economically, despite your death.
  2. Loan options: – In case you are short of money due to a financial emergency, you can even secure a loan against your insurance policy. The loan can be obtained for a percentage of the cash value of the policy. This way, you need not pledge your precious assets in order to secure a loan.
  3. Life stage planning: – Life insurance policies are a great investment tool for life stage planning. It assists you to plan for your different life stage needs. Apart from providing death benefits, life insurance also acts as a long term investment. The benefits from a life insurance policy can help you meet the various goals of life such as education of the children, retirement fund, marriage of children etc.
  4. Protected insurability: – A life insurance policy provides you with a permanent coverage even if your health and other situations change. Buying an insurance policy at a young age, locks in the insurability.
  5. Cash value:- Once your life insurance policy accumulates, the cash value of the policy becomes accessible for withdrawal for family and business opportunities, education funding, retirement income and other such financial emergencies.

With so many such unique benefits, a life insurance policy can be a worthwhile addition to your balance sheet and the foundation for your financial security. Along with the lesser know benefits also know  some general benefits of life insurance here: