What mistakes should one avoid while taking out an education loan?

Earlier, attaining higher education was a privilege aspect. Not many completed their studies, and only a few were lucky to acquire the master’s degree. In this age of competition in the workspace, you must have the necessary weapons for securing your life post-university. A higher degree is the only tool you need to solidify the space in a competitive world. Such degrees cost money, precisely why education loan is gaining popularity.

However, there are some mistakes you must avoid while taking it out. They are as follows –

Adamant about universities

Every worthy student aspires to study at Harvard, Oxford, or Cambridge. Even if you do get admission in these merit schools, the associated costs and other charges are incredibly high. You can take up a student loan of an amount which may be difficult to repay. Instead of being rigid about the institute, you seek to attend, better to explore other avenues. Consider gaining admission in schools offering similar courses, albeit at a lower expense. Remember, it is the degree that matters.

Enough time for research

Students, as well as their parents, are guilty of visiting the nearest bank while applying for education loan in India. They concentrate only on getting the loan approved, without considering the consequences. In a hurry to get them approved, you could miss out on asking vital questions like what gets covered, when to start repaying the credit, moratorium period, etc. Research about interest rates, tenure, loan amount, etc. Do not underestimate the importance of research.

Borrowing than necessary

One other common mistakes student make is borrowing more sums than necessary. While you may be eligible for a high amount, It is ideal to hire what you need. Remember, you must pay educational loans and the higher the sum, the higher the interest rates against the loan. High-value loans are difficult to repay when you begin your career, and the income is low as well.

Devising repayment strategy

When it comes to a high amount of loans like student loan in India, it is imperative to have a loan repayment strategy in place. Do not rush to repay them and wait until you have completed the degree for saving enough. Think of a plan and stick to it. For example, you can consider taking a part-time job and save some funds from it for repaying the EMIs during the moratorium period. You can also put some cash away during the study phase into your loan account. Evaluate the capabilities and determine the loan repayment tenure accordingly. 

What is the process to buy two-wheeler insurance online

As with other types of property or health insurance, bike insurance also protects the policyholder against financial damage in the event of an accident. The scope of the bike policy is one to three years. During this period, the insurance provider will bear the cost of repairing damages or injuries that are subject to the type of coverage that an insured bike owner has bought.

Online process:

Online bike insurance has made it feasible to safeguard your bike within minutes. Here are a few steps to consider before buying two-wheeler insurance online:

Research

Before you decide to buy two-wheeler insurance, update yourself with basic knowledge about tow wheeler insurance. Be familiar with the jargons commonly used in this industry. It will be useful when buying insurance for online bikes. Research on terms such as declared value assured third-party liability, no claim bonus, zero depreciation, etc.

Insurance company

Choosing a suitable insurance company is as important as buying the best policy. An ideal motor insurance provider should offer outstanding pre-sales and post-sales services. It should have good user reviews and an active customer settlement system. After you decide your insurer, go to their website to buy motorcycle insurance.

Choose the type of insurance

For selecting the kind of policy, go to the two-wheeler insurance policy page and update the particulars of your bike. Next, select the type of bike insurance you want to purchase. Know your needs to buy the proper type of insurance policy.  You can also buy Add-ons while purchasing the policy.

Set insured declared value

You will be required to set your bike's IDV after selecting the form of the bike insurance policy. Fill the right amount in. Considering it is the current market value of the bike, IDV goes down with time and affects bike insurance premium.

Select add-ons

Continue selecting add-ons after configuring the IDV for your bike. Buying add-ons is a great way to increase the range of your 2-wheeler insurance policy online. From a list of add-ons available for two wheeler insurance such as Pillion Driver, Zero Depreciation, etc., you can pick and decide.

Payment

Payment is the final stage of insurance, giving your bike security. You will receive the policy paper in your email address after you make the payment. If a legal officer requests verification of your insurance policy, the printed document may be presented. Once you have paid two-wheeler insurance online, the process is complete.

Spend some time to research, purchase or renew your policy regularly. In case of adverse circumstances, this will ensure peace of mind.

How to enrol for Pradhan Mantri Jeevan Jyoti Bima Yojana?

Every nation has a set of benefits offered by the government for public welfare. It may include many facilities such as education, employment, finance, funding, empowerment, gender equality, and other specialised services. Since people have faith in the government, it reciprocates with schemes and strategies that will lead to the progress of the nation. One of the significant objectives of governments is to initiate overall development and promote equality.

The Government of India had introduced the Pradhan Mantri Jeevan Jyoti Bima Yojana in the year 2015. It is a one-year life insurance scheme that supports annual renewal and provides mortality cover. It has no investment component whatsoever.

The enrolment periods

The cover period for this scheme is from 1st June of each year until 31st May of the following year. The scheme is available for all those individual aged between 18 years to 50 years who have a savings bank account. They must give consent to join and enable auto-debit from the account. Other facilities include life cover for the individual until the age of 55.

Under PMJJBY, a life cover of over INR 2 lakh is available at a premium rate of INR 330 per year for one member. It is subject to renewal every year. In case a person has a joint account, all the holders of that account can join the scheme provided they meet the eligibility criteria and pay the rate of premium.

The breakup of the premium is as follows:

An insurance premium of INR 289 per annum per member paid to the insurance company.

The reimbursement of expenses to the agent or bank is INR 30 per annum per member.

The reimbursement of administrative expenses is INR 11 per annum per member paid to the participating bank.

The waiting period for claims

Risk cover under PMJJBY policy is applicable only after the first 45 days of enrollment. Insurers cannot settle claims during the early 45 days from the date of enrollment. However, deaths owing to accidents will be exempted from the clause and will still receive payments.

The enrollment procedure

For enrollment of an individual to Pradhan Mantri Jeevan Jyoti Bima Yojana, it is essential to consider having a bank account. Banks can also help as they have a tie-up with insurance companies. In case the individual has an account in many different banks, the permission is granted on one bank account only.

The procedure is quite simple. Download the enrollment form, fill in the required details, and submit it to the bank. Some banks have SMS-based enrollment too. Net banking can also help.

4 Benefits of opening PPF account

Every person is entitled to receive some benefits after retirement. They deserve to enjoy life after quitting work since they have shown so much dedication and sincerity throughout their careers. They have made it possible to achieve every milestone set and fulfilled all their dreams and aspirations. It is better to save while one is working than to run into debts post-retirement. Thinking and planning are always beneficial.

Many employers provide the PPF facility to every person working under them. They promote the habit of saving from the initial days of employment so that every person can have a secured future. The Public Provident Fund is a government scheme offering tax-free savings. It is a fixed-income investment, and the government pays the interest amount on the account every three months. The government calculates the rate of interest monthly. It takes in to account the lowest balance between the fifth day of closing and the last day of the month.

Minimum and maximum contribution

The minimal annual contribution that an individual can make towards the PPF account is INR 500, whereas the maximum limit of contribution is INR 1.5 lakh. The maximum cap limit applies to contributors who have a child who is a minor. They can contribute up to a maximum of 12 contributions annually.

The tenure

The account matures after 15 years from the date of commencement of the financial year. For example, if the account opening date is January 1, 2020, the maturity period is till March 31, 2035. After maturity, the account holder has the authority to extend the tenure for another five years indefinitely.

The benefits of the account

It has helped people plan for their future investments and requirements. They can rely on it to have a secured life after retirement without running into the loan and debt repayments.

The benefits of PPF account online are as follows:

Since it is a government-backed scheme, the principal and interest amounts are protected, safe and guaranteed.

Each person can contribute up to INR 1.5 lakhs in a year and earn interest on the savings without paying any taxes.

The government of India declares the interest rates every quarter. The returns on provident fund accounts are higher than those in fixed deposits (FDs).

The account is immune from attachment from any order or decree of any court under the Government Savings Banks Act, 1873.

Minors, parents, and guardians can also enrol for PPF. Only Indian residents are eligible for this facility. Opening of joint and multiple accounts are not allowed.

Know the types of general insurance in India

Public insurance plans are a financial compensation contract instead of any loss other than death. It insures all except life. You will be reimbursed for financial harm caused by home, car, bike, travel, health liabilities. The insurance provider offers to pay you a fixed amount to cover damage to your vehicle, medical treatment for health problems, burglary or fire accidents, or even financial travel difficulties.

There is a difference between insurance types- one is life insurance and non-life insurance, or general insurance is another. You will be covered as an individual under the Life insurance policy. 

Reimbursement under the policy may be withdrawn in case of the policy 's death or maturity.

In short, general insurance provides financial protection on all the properties against liability, death, fraud, and other liabilities.

There are general insurance products for all kinds of assets, such as vehicles, health, home, travel, and fire. Let us learn about them in detail.

Motor Insurance

Motor insurance is like your vehicle insurance, except it is for your health. It is a general insurance policy that provides financial security for your car from damage due to accidents, injury, robbery, fire, or natural calamities. You can even insure your commercial vehicles under a motor insurance policy.

Having your vehicles insured is compulsory in India. So, that means you need your two-wheeler and four-wheeler insurance. Motor Insurance covers both third-party insurance and comprehensive car insurance.

Health Insurance

The health-care costs are covered by general insurance in India. It charges or reimburses the amount that you pay to treat any accident or illness.

It includes:

The treatment of critical ailments

Hospitalisation

Medical bills before or post hospitalisation

Procedures like Cataract operations

Travel Insurance

During your trip in a foreign country or within the country, a travel plan will reimburse you or pay you for any financial losses arising from medical and non-medical emergencies.

Travel insurance usually covers:

Emergency medical expenses

Loss of baggage

Loss or misplacement of passport

Flight delays

Hijacking

Accidental death

Home insurance

Home insurance is a cover that covers or compensates for damage to your home caused by natural calamities, human-made disasters, or other hazards.

This includes arson, robbery, fraud, floods, earthquakes, and sabotage liabilities. It not only gives your home financial security, but it also takes care of the property's valuables.

Fire Insurance

Fire insurance covers or compensates for damage to your property or goods caused by the fire. Such general insurance includes the costs of removing, reconstructing, or restoring the insured property and the associated buildings.

5 Benefits of investing in mutual funds

It is not easy to earn money. Moreover, even if people are quite wealthy, they are unable to save for the future and focus only on the needs of the present. It is necessary to start earning and saving for the future. Expenses can take a toll on people’s health if they have insufficient savings and rely on loans for survival. Paying debts can last for a lifetime, leaving the borrower with hardly any savings. Hence, it is beneficial to start investing at an early age and collect some money for future emergencies.

Investing in mutual funds India is the best option for retail investors since their benefits are higher than the costs. Each mutual fund investor owns units of the fund which represent a portion of the holdings of the scheme. The investment objectives are the base for selecting the securities. Asset management companies (AMCs) manage them and appoint fund managers to fulfil every individual’s investment objectives. They charge their investors a fee which is adjusted proportionately against the assets of the fund.

The advantages are as follows:

Risk diversification:

Every stock undergo three types of risk, namely company risk, sector risk and market risk. The stock price of a company declines because of poor financial performance even though the market is in a favourable position. Instead, if the company performs well, the stock price may still fall, if the market falls. Mutual funds diversify the risks with the help of a diversified portfolio of several stocks across a variety of sectors.

Smaller capital outlay:

All investors require significant capital outlay to invest in a diversified portfolio of stocks. They can own it with a small expenditure of capital since mutual funds work on pooling money from various investors.

Investment expertise:

Stock investments require lots of experience and expertise. Many investors lose money while trading stocks because of reduced risk returns. Professional fund managers with expertise in picking and suggesting the right stocks handle and manage mutual funds investment.

Variety of products:

Investors can choose from a variety of mutual fund products that suit their profile and investment objective, such as equity funds, balanced funds, monthly income plans, income funds, and liquid funds.

Various modes of investments:

Mutual funds schemes offer flexibility in investments and withdrawals, like lump sum and systematic investments, systematic transfers and withdrawals, the ability to switch between schemes, etc. Investors can choose the growth option to take advantage of compounded returns in long-term investment. Dividends can also help them earn a regular income.

4 Benefits offered by the Atal Pension Yojana

A country consists of a large population, with every person belonging to a different sector of society. Likewise, there are many divisions based on employment sectors. The most prominent ones are the private sector and the public sector of employment. The private sector consists of workers that serve corporations, individual businesses, and other non-government agencies.

The jobs included in this sector are hospitality, professions, manufacturing, financial services, etc., where employees get paid with part of the profits made by the company. The public sector hires workers through the federal, state or local government. The availability of jobs is in healthcare, teaching, emergency services, armed forces, and various regulatory and administrative agencies. Workers receive payments through a portion of the government’s taxes.

Thankfully, the Atal Pension Yojana is a scheme that is available for all the employees of all the sectors of employment. It was introduced in 2015 by the Government of India to give pension benefits to employees of the unorganised sector. The Pension Funds Regulatory Authority of India (PFRDA) is responsible for the regulation and control of the scheme. Nevertheless, those individuals working for the organised sector can also use this scheme to save for the future.

Benefits of the scheme

This pension scheme reduces the necessary financial obligations faced by individuals that arise in their retirement phase. It also encourages them to start saving from an early age. The amount of pension is directly dependent on the age and the monthly contributions of the individual.

The benefits offered by the APY scheme are as follows:

Source of income in old age:

All the individuals receive the facility to earn a steady source of income after they are 60 years old, hence making them financially stable to meet all their requirements, including their medical expenses.

Government-backed scheme:

The Indian government supports this scheme, and the Pension Funds Regulatory Authority of India (PFRDA) regulates it. Thus, there is no risk of loss.

Enabling the unorganised sector:

The Atal Pension Yojana scheme was launched with a motive to decrease the financial worries of the unorganised sector and make them economically stable in their later years.

Nominee facility:

In cases where the beneficiary loses its life, the pension benefits can be made available to the nominee, especially the spouse of the deceased. They can either terminate the account and withdraw all the savings or choose the same amount and continue receiving the pension. In case both the beneficiaries do not survive, the nominee gets the entire corpus amount deposited for Atal Pension Yojana.

What are the benefits of fixed deposits in India?

When you deposit at a fixed interest rate for a predetermined tenure in a bank, it is called a Fixed Deposit or FD. Fixed deposits were tried and tested for a significant period and delivered good returns consistently, which makes them one of the best investment options possible. FDs are also a good starting point for somebody who is a first-time investor.

Benefits of Fixed Deposits (FDs) in India

There are many reasons why Fixed Deposits is one of India's most common finance items. Here are some of India's critical benefits of Fixed Deposits:

Get Guaranteed Returns: Return on investment is ensured. Regardless of the amount you have deposited in an FD, you will be paid interest at the interest rate that prevails at the time of deposit creation. Market fluctuations will not impact the returns on your investment. This is probably why most experienced investors still like to keep a portion of their investment in fixed deposits

Determine the Tenure: Fixed Deposit tenures are very versatile. Based on customer requirements, it ranges from 7 days to 10 years. You may have several Fixed Deposits for the same or different tenures at the same time in the same bank. For each FD, you will receive a separate receipt.

Make More Money: As contrasted with a savings account, the rate of return on fixed deposits is much higher. The interest rates change based on Fixed Deposit term. For FDs of longer tenure, the interest rate is most often higher. There are a few exceptions as banks set the interest rate for fixed deposits based on their expectation of the repo rate (the rate at which RBI loans money to the banks). If a bank feels the repo rate will rise after 5 years, FDs with tenure exceeding 5 years will have a lower interest rate than one with a tenure of 3 years. Using a fixed deposit calculator will help you to understand how it works.

Choose the Frequency of the Interest Payment: The customer can choose the level of interest that they wish to receive, whether on a monthly, quarterly, or annual basis. This will end up being another revenue source for the customer. On the other hand, they can opt for a Cumulative FD that will reinvest interest in the FD, delivering even better returns. An FD calculator can help you figure out the returns on term maturity.

Higher Interest Rates for Senior Citizen: The higher interest rates are one of the primary reasons why Fixed Deposits are so popular among senior citizens. The rate for FDs is generally better than for savings accounts. You can use the FD interest calculator for computing the same.

Features and benefits of home improvement loan you should be aware of

Banks and NBFCs offer an array of housing loans right from home purchase loans to construction loans to land purchase loans to loan against property. One other popular type of house loan is the home renovation or home improvement loan. Let us understand the features and benefits as to why it is accessible.

What is it?

Also called as a home renovation loan, in which you take to renovate, repair, remodel, or improve your house. You can apply for the loan for making different types of changes to your home or give it a makeover. For example, if you seek to make structural changes to your home, apply for this loan. You can also apply for the loan for small or big repairs, i.e. repainting the house, fixing leaky ceilings, hanging electrical wires, and furnishing the home. Such loans apply to all kinds of changes for making the square-feet area of the property yours.

Features and benefits:

Collateral

Like in the case of house loans, you home serve as a security when you take out this loan. The lender allows you to borrow funds by pledging the property as security, based on the loan amount. Generally, you do not need to offer collateral if the loan amount is lesser than INR 5 lakh. If it exceeds the mentioned amount, the lender retains the property documents and returns only once they get paid off.

Estimate of expenses

Lenders ask for the estimate of renovation costs. You need a civil engineer or architect firm to assess the property and provide an estimate of the total amount you require for renovation or remodelling of the house. This document is essential and must submit it along with necessary papers while applying for the loan.

Minimal documentation

The paperwork under house renovation loan is less as opposed to other kinds of home loans. You must furnish ID, address, employment, and income proof along with property documents. Remember, if you are joint owners, make sure all the documents of the joint owner get submitted for the loan to get sanctioned.

Interest rates

These loans can be availed for lower interest rates. The EMI payable against them is the lowest among all kinds of loan available in the market. Since you can apply for the loan only because you are the owner of the asset, lenders believe you can repay them. However, both interest rates and payable EMIs depend on the loan tenure chosen.

13 Features of Sukanya Samriddhi Yojana

The importance of educating a girl child is spreading all over the world. Gone are the days when they were a burden on the family and society. Nowadays, girls are progressing in every field of profession and academics. They receive encouragement from their families, friends, and even the government of the country. Girls are promoted and given many opportunities to excel in their profession. But their main base is receiving a good education.

The Government of India introduced the Sukanya Samriddhi Yojana in 2015, which focuses on securing the future of girl children in India. It helps the girls’ parents to save money for the education and marriage of their daughter. They get lots of benefits like high rates of interest and reduced taxation, hence enabling them to save for the future. The scheme is a tax-saving instrument that helps plan finances for the betterment of the girls’ future.

Features of the scheme

The SSY scheme is available at post offices and designated private, and public banks in the form of savings account under the ownership of the girl child. This scheme also receives a revision of interest rates every three months in a year. It is the highest-paying investment instruments under the fixed income category.

The features are as follows:

The account is opened on behalf of the girl child by her parents or legal guardians.

A maximum of 2 accounts are allowed, and in the case of twins, a total of 3 accounts are permissible.

The minimum deposit amount is INR 250 per annum up to a maximum of INR 1,50,000 per year.

The interest rate is as high as 8.1 per cent p.a.

Tax rebate under Section 80C of the Income Tax Act, 1961 applies for all deposits made under this scheme.

The account can be prematurely closed upon the death of the depositor.

The revival cost of the account is INR 50. Pay it towards the end of the year in addition to the minimum amount.

Deposits through cash, cheque, and demand drafts are accepted.

After turning 18, the account holder (girl child) can withdraw up to 50 per cent of the balance.

The account matures after 21 years or at the time of the girl’s marriage.

The girl child receives all the accrued interest on maturity.

The account requires a minimum deposit of INR 250 each year to prevent its deactivation.

The interest rates differ every year.

The SSY is a boon to every daughter who wishes to progress and have a secured future.

A detailed document checklist for joint home loans

Getting a house loan approved is nerve-wracking. One of the best ways through which you can get the loans approved is by applying for a joint home loan. They get approved quickly because lenders can rely on more than one person for repaying the EMIs. However, when you apply for joint housing loans, all the members must provide home loan documents. Here is a detailed checklist of the documents needed.

Application form

You must provide a duly filled home loan apply document, i.e. the loan application form including the names of both the applicants. List the primary and secondary borrowers and specify the borrowing percentage. Moreover, you should check which combinations are applicable for joint loans. For example, accepted combinations include husband and wife, father and son, and two brothers. Loans cannot be applied between sisters. Also, parents can apply for these loans with their daughters, naming them as the primary applicant.

ID and age proofs

The basic set of documents required for home loan are ID proofs. All joint applicants should furnish a copy of any Government-approved ID paper along with the list of accepted documents. It could either be PAN, Aadhaar, passport, driving license, or voter’s ID. These documents should primarily include your birth of date and photograph.

Address proofs

Amongst the list of documents required for home loan is the address proofs. The current address of the applicants should be the same. Here, you must submit copies of documents which includes your address like passport, ration card, utility bills, insurance papers, etc.

Employment proofs

Lenders need to assess the employment status before granting the loan. You should provide the employment proof documents as well. Mention if you are salaried or self-employed and supporting documents for the same. For instance, salaried employees must submit their offer letter as employment proof, while independent professionals produce their business license details.

Income proofs

All the applicants apply for the joint housing loans need to furnish the copies of their income. For instance, if you apply for joint loans with your spouse, both need to provide copies of the last three to six months’ salary slips, copy of the ITR from last three years, form 6, and other similar documents as mentioned by the lender. Self-employed individuals must give their profit and loss statements, attested by CAs along with ITR documents.

Property documents

Apart from the personal documents required for home loan, joint applicants should provide the property documents they seek to buy. You must have papers such as the NOC from the builder, occupancy certificate, registered sale deed, and allotment letter, copy of the floor/building plan, land-tax receipt, and other related documents.

Importance of EMI calculator

We have all come across the words "EMI" and "EMI calculator" in our lives more than once. Whether you are taking a loan to buy a car for your loved ones, or you are going to pay back your loan in EMI if you want to give someone a home appliance. It is among the lending industry's most used jargons.

EMI means Equated Monthly Installment. This is the amount you pay to bank or lending institution every month you clear off the entire loan amount. EMI consists of a portion of the interest to be repaid and the balance. EMI is the percentage of the principal balance and interest owed, divided in months by the entire loan term.

The exact percentage of principal payments allocated depends on the interest rate. The proportion of principal and interest for each EMI will change over time. You would pay more of principal and less interest with each EMI.

EMI calculator uses the following formula to calculate EMI-

E = P.R.(1+R)^N/((1+R)^N-1)

Where,

E represents EMI

P represents for Principal Loan Amount in Rupees

R represents the rate of interest calculated every month. (R = Rate of interest annually/12/100. For, e.g. If the rate of interest is 9.5 per cent per annum, then R = 9.5/12/100=0.065972)

N stands for loan term/tenure/duration in number of months.

On EMI you can finance virtually every loan on Earth. Here is just a simple reference list-

Home Loan

Loan against Property

Business Loan

Vehicle Loan

Education Loan

Gold Loan

Loan against Bank FD

Loan against Mutual Funds.

Mortgage loan calculator is a digital instrument, so you do not need to use analogy tools or handheld calculators to measure the EMIs. Besides, the modern EMI calculator, unlike traditional handheld calculators, provides holistic information such as the principal and interest component of each EMI, payment date etc.

Also, you can use any spreadsheet program such as MS-Excel to build your own EMI calculator. Additionally, there are many online websites on their website, such as all bank websites, NBFCs, etc., which provides mortgage calculator.

Information needed for the calculator

The following factors are essential for calculating through EMI calculators-

Loan amount

Tenure

Interest rate

Does the online mortgage calculator consider the rates of all the banks?

Depending on the type of loan, various banks give different interest rates on loans, such as car loans, property loans, educational loans, marriage loans, etc. The online mortgage loan calculator performs all the research work from all the banks and measures the loan from the bank, and the EMI sum and the client can choose the best scheme.

Know how to get a two wheeler loan with a low-interest rate

Two-wheelers are the most common vehicle category in India. Besides that, the two-wheelers are a blessing in disguise when it comes to unforgiving traffic on Indian highways. Everyone can afford to buy two-wheelers and get on with the currently available market loan options. The Indian subcontinent can now also indulge in luxury rides, with the advent of lucrative interest rates on two-wheeler loans.

Banks, non-banking financial firms (NBFCs) and online loan providers have made two wheelers available to households easily. To understand how to obtain a two-wheeler loan with low-interest rates, it is essential to know how to calculate interest rates for two-wheeler loans.

How two-wheeler loan interest rates calculated?

A bike loan interest rates depend on what type of institution you are borrowing from. Banks, NBFCs and various online lenders are charging interest rates anywhere between 8 per cent and 18 per cent. The interest rate on your two-wheeler loan will depend on multiple factors, such as:

Credit record

Age

Current financial situation

Bank income statement

Loan tenure

Type of two-wheeler you want to buy

Lending body (Bank, NBFC or Online Lender)

How to get low two-wheeler loan interest rates?

There are two things most Indians are eager when buying a two-wheeler, is the mileage and two-wheeler finance. The higher the mileage, the better our chances of selecting the vehicle will be. Compared to that, the lower the interest rate, the better the chances are that we will pick the offer.

However, to get a maximum of your two-wheeler loan, it is essential to pay attention to your EMI (Equated Monthly Installment) as well as the interest rate provided to you. 

Due to the compounding of interest rates every month, a higher short-term interest rate loan may be more advantageous for you than a very long-term loan with lower interest rates. The key is to check the right amount of EMI for an acceptable tenure.

Your EMIs get calculated according to the principal amount of your loan and the duration during which your 2-wheeler loan matures. You can use the following formula when measuring manually to measure your EMI:

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Lenders have their online websites where you can avail a bike loan instantly — no waiting to get your loan approved. Just log in to your favourite bank page, fill in the online application form, sign it, and get the deposited money into your account instantly. With fast loan disbursements, no hidden charges and one-time documentation.

What kind of loan should you opt for your business?

Mudra means Micro Units Development and Refinance Agency Ltd. Mudra means Agency for Production and Refinance of Micro Units Ltd. Unveiled in 2015 under the Pradhan Mantri Mudra Loan, it intends to provide financial support to small, new, and emerging businesses.

Business loans are nothing but a credit product that is issued by NBFCs and banks. It helps entrepreneurs meet their business needs, growth plans, capital investment etc. Business people are responsible for reimbursing interest on the loan as per the terms of the loan.

Key difference between Mudra Loan and Business Loan

Interest rates are the primary consideration a borrower takes into account when applying for some loan.

The interest rate on Mudra loan scheme depends on the bank from which you apply for your loan. It usually begins at 8 per cent.

There is a booming business lending market with lots of buyers and lots of sellers. Sellers have thus become very competitive, especially at interest rates. NBFCs are trying to provide business loans at very low rates to attract more and more business people possible.

Eligibility

The eligibility under Mudra loan offers loans to the following business owners and for the following purposes:

Shopkeepers, traders, vendors, and service sector allied business owners

Equipment for micro-units

Agri-related non-farm activities

Financing for certain commercial vehicles, tractors and tillers

Business loans, on the other hand, are much more welcome in this respect. The qualification requirements generally are as follows:

Business record (minimum two years)

Previous year's ITR (minimum INR 1.5 lakhs)

Minimum turnover of INR 5 lakhs

Place of business and house have to be different

Owner of business should own either a house or a business place

Documents Required:

Do expect that Mudra bank loan would take a lot more paperwork than a business loan. Here is a rundown of the required documentation to get one.

Two passport size photographs

Your ID proof

Business address proof

If business premises is on rent, the agreement for the same

Your address proof

ID proof of your business establishment

SSI registration certificate

Memorandum of Association and Articles of Association

Partnership deed

If you do not want to address this exhaustive list, you can apply for a company loan at any time. You will need minimal documentation, most of which will include the following:

Business address proof

PAN Card

Previous two years' ITR

Previous nine months' bank statement

Why should you register for Pradhan Mantri Suraksha Bima Yojana

One of the various social benefit schemes offered by the government, providing insurance against accidental death and disability is the Pradhan Mantri Suraksha Bima Yojana.

PMSBY is an accident insurance plan that provides accidental death and disability protection for death or injury due to an accident. The policy will not cover demise due to natural causes such as heart attack etc. It is a one-year cover, and the user will have to renew it each year.

The eligibility requirements are simple, as all those aged between 18 and 70 with a bank account can be a part of the scheme. In the case of numerous bank accounts held by an individual in one or more banks, the individual would only be eligible to join the scheme from one bank account. Giving consent to activate and allow the bank account auto-debit when you enter the scheme is a must.

In general, the required premium for policy renewal will be auto-debited between the dates of May 25 and May 31, unless the account holder has submitted a policy cancellation request to the bank. PMSBY's coverage period is every year from June 1 to May 31. PMSBY is every year renewable scheme.

The risk coverage of the scheme is INR 2 lakh for accidental death and full disability, and INR 1 lakh for partial disability. In the case of the death of the account holder, the insurance payout shall be made to the bank account of the insured or their nominee.

Death of the account holder: INR 2 lakh

Total and irreversible loss of both eyes or loss of both hands or feet or loss of sight of one eye and loss of one hand or foot: INR 1 lakh

Total and irreversible damage of one eyesight or loss of one hand or one foot: INR 1 lakh

To benefit from the advantages of PMSBY, you also need to contact any of the general insurance companies in the public sector and other general private insurance companies that need to be linked to the banks. One can register by filling in the required form and sending it to the bank where the account is held. Many banks have launched net banking or mobile banking enrollments. If you do not have a separate policy for an accidental and disability, get one.

The PMSBY policy which was initiated in 2015 is a voluntary sustainable one-year accidental death and disability protection. The social security scheme is introduced in conjunction with scheduled commercial banks, national rural banks and cooperative banks by insurance companies in both the public and private sectors.