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What is a Demat Account: Basics, Types & Benefits

As the world is advancing, trading is becoming more popular. Now with Demat accounts, you can simplify trading to monitor your holdings effortlessly. For starters, opening a Demat account is key to ease of investment. Also, this keeps you updated on the current state of your portfolio. Now, you might be curious about what a Demat account is. It’s also possible that you are somewhat aware. Still, you might further wonder what it has to offer. Or maybe, you want to know how the entire system works. In that case, you will be pleased to know you’re in the place! So, let’s dive in, shall we? [B-01] Demat Account Meaning: The Fundamentals The question of the hour is, “Why the Demat account?” You need not scratch your head, allow us to walk you through this! For the record, a Demat account helps you store your investments in electronic form. Like a regular bank account, a Demat account holds your assets digitally. So, in a way, it eliminates the risk of owning any physical certificates. In turn, a Demat account gives stock trading a digital edge. So, you can now keep track of your investment profile on the go. Furthermore, you can access and transfer shares at your convenience. If you were clueless about the Demat account meaning before, now you can get started with ease! If you’re currently holding shares physically, you must first transfer them into the digital form. Then, you can add them to your Demat account. How does a Demat account work? Online trading requires you to link your Demat account to your trading account. Also, remember to link your bank account to your trading account. Then, you can transfer funds into your Demat account and place an order to buy shares online. Next, the availability of shares is confirmed owing to the current market price. Lastly, the exchange processes your order. If T is your order execution date, the shares will reflect on your Demat account in T+2 days. NOTE: A similar process applies when you sell shares from your Demat account. What are the types of Demat accounts? It’s a no-brainer that there are a bunch of Demat accounts available. Each type serves various classes of investors: Regular Demat Account Investors who just require a digital space to store their shares can pick this one. In this, your shares will be added to the account as you purchase them. Similarly, they get debited if you sell some of your holdings. So, that’s pretty much what you can do with a Regular Demat Account. Basic Services Demat Account This option is relatively recent. It encourages newbies to get accustomed to stock trading. For the most part, these accounts don’t carry the hassles of maintenance charges. In reality, zero maintenance charges only apply if your holdings are below Rs. 50,000. Still, the charges you need to bear if your holdings are over Rs. 50,000 to Rs. 2,00,000 is pretty nominal. Repatriable Demat Account These accounts are typically meant for non-resident Indians. If you invest in foreign stocks, this is for you. However, note that you must remove your regular Demat account. It’s a must if you want to switch to a repatriable one. Non-repatriable Account This type of Demat account is also meant for NRIs. However, there are major differences between repatriable and non-repatriable accounts. The latter doesn’t allow you to transfer earnings from India to an overseas account. So, repatriable accounts provide more flexibility if you trade on foreign stocks. Why should you open a Demat account? Now that you know the types of Demat accounts, let’s check their benefits: Ease of holding shares digitally If you’re an experienced trader, you know about the lengthy paperwork involved in physically holding shares. This undoubtedly increases the risk of theft, damage, and forgery. Demat accounts help you in digitalizing shares. As a result, they are relieving you of all this stress. Status of all online holdings at a glance Just like you handle your bank account online, Demat accounts offer more or less the same functionality. Also, you can use your mobile or PC to access your Demat account anytime. The convenience of storage and transfer We know that a Demat account allows you to store all your shares in an organized fashion. Also, it frees you from the burden of holding physical documents. Furthermore, an online transfer also leads to faster transactions. It significantly reduces the physical transfer processing time. A reservoir for different investments For the record, Demat Accounts don’t just store shares. Instead, they serve you as a storage channel for bonds, mutual funds, government securities, & ETFs as well. Assigning a nominee Just like bank accounts, a Demat account allows you to pick a nominee. In such circumstances, your Demat holdings will be transferred to the nominee’s account. Automatic reflection of bonus stock splits There are frequent fluctuations in companies’ stocks that issue shares. Cases like bonus issues and stock splits result in changes in your holdings. Such changes will automatically reflect in your Demat account. [B-02] Final Words Maintaining a Demat account for your holdings is crucial to a hassle-free investment journey. Also, now you know the convenience of bearing no risks of physical certificates. We hope that this piece has cleared your doubts surrounding what a Demat account is. If you want to dive in further, do check out Piramal Finance. This will give you further insights into all things Demat, financial products, personal loans and business loans. So, what are you waiting for? Get started with your Demat account to facilitate easier trading today!
08-11-2023
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Cards

Does It Make Sense to Have Multiple Credit Cards?

Credit cards are good sources for seeking temporary credit from banks. Yet, many financial experts believe credit cards harm their owners. Credit cards are often responsible for high spending patterns. For this reason, debit cards are generally recommended over credit cards. But credit cards are perfect for those who earn enough to pay off their bills on time. There are several advantages to credit cards and online credit cards. Thus, people are often tempted to have not one but multiple credit cards. Often, users get confused about whether to get a new credit card. So, if you’re wondering if having a lot of credit cards is a good idea, we’re here to help! [B-01] Can a person have multiple credit cards? Having several credit cards could be a boon if taken care of. You must meet certain eligibility requirements to own multiple credit cards. All banks allow their customers to own more than one credit card. Each application for a credit card gets considered with the utmost care. Hence, each of the applications has a chance of getting approved. Few individuals have a good track record and credit score. Several banks approve many of their credit card requests. Different credit cards have different eligibility criteria. Different credit cards have different kinds of perks. For example, a travel credit card could help pay off all your travel expenses. But a Sodexo card can help pay for groceries. Having different cards with different benefits helps users. A few things you must know An individual can handle 2-3 credit cards only if each of the cards has a unique benefit. Having more than three credit cards is not recommended. But a responsible person can own them. If managing a single credit card seems difficult, then do not apply for many credit cards. Banks do not care about the number of credit cards an individual has if they are paid on time. For entrepreneurs, separating personal and business credit cards is a must. You can have better financial modelling and distribution. But how? By having separate cards for business and personal expenses. The number of credit cards affects creditworthiness. Hence, they can seek a loan from the bank by decreasing the amount. Suppose an individual cannot pay off the bill for one of the cards. Then he/she can pay off the bill of one of his/her cards with another card. This helps avoid unnecessary delays, deadlines, and fines. The Benefits of Having More Than One Credit Card Have a look at the benefits of having more than one credit card. It’ll increase the credit usage score The credit utilisation score is the score given based on credit utilisation. Every credit card has the largest credit limit. Using more than 90% of a credit limit lowers the credit utilisation score. But using a credit card with up to 50% of the limit helps raise your credit utilisation score. It helps increase your credit score Some individuals have more than one credit card. It ensures that they pay the bills on time and boosts their credit score by a great margin. Having multiple credit cards can help boost your credit score. But many credit cards come with the responsibility of paying the bills on time. Increases credit limit Some individuals have high monthly expenses. We recommend owning many credit cards. Often, the expense cannot be covered with the liquid funds available. For this reason, having many credit cards could be an added advantage. A credit card can cover all the expenses. But you must ensure that you pay off the amount on time. Higher rewards and cashback Credit cards come with several benefits and rewards. There are several types of credit cards, such as travel cards and grocery cards. These help you get cashback, discounts, and perks. The more credit cards you own, the greater the benefits you enjoy! Disadvantages of having many credit cards Here are the disadvantages of having too many credit cards: It’s difficult to handle so many credit cards Having more than one credit card requires careful financial planning. One needs to track the billing cycle of each credit card. Individuals with many credit cards would get flooded with bills at the end of every month. Keeping track of each bill and paying it off without delay could be a hassle. Unnecessary debt accumulation Having many credit cards gives the owner the freedom to spend too much. Overspending can result in a vicious cycle of debt. Online credit cardholders must ensure that they do not spend too much. To improve your credit, how many credit cards should you have? This is a personal decision about what you can afford. To begin building credit, you actually only need one credit card. Using your main card for regular purchases is a great way to steadily and consistently build credit over time. It may be helpful to add several cards if you have plans for heavy investments or purchases soon and know you want to establish your credit quickly. This is especially true of cards with specific loyalty programmes because you can keep track of them in a more organised and categorised way. With annual fee cards, you have yet another chance to pay off the debt on time and regularly. [B-02] Final Words Are you someone who excels at fund and credit management? Then having multiple credit cards could be a benefit. Many credit cards come with the responsibility of paying the bills on time. Are you sure that you can pay off the bills without getting fined? Then a credit card would provide a sense of financial security. Are you planning to have many credit cards? Then consider all the benefits and risks associated with them. Also, ensure that you make a wise, well-informed decision. If you have any doubts, consult a financial expert like Piramal Finance. We offer customised solutions for business owners and professionals and help you avail of easy credit card and personal loan solutions.
08-11-2023
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Banking

How to Check Your Bank Balance: 6 Easy steps

Checking your bank balance is important to know how much money you have in your account, which helps you plan out your finances and assets. Checking your bank balance is a good thing. It’s a way of keeping tabs on your money and what might be coming in or going out. If you see an unexpected transaction, it can be a sign that something is wrong with your account and that you should contact the bank or credit union immediately. [B-01] Why is checking your bank balance important? Checking your bank balance can be a tedious task. It’s important to do it regularly because it allows you to keep an eye on how much money you have stored up for emergencies. If you don’t check your bank balance often enough, you might run out of money before you need it most. This is when it pays off to ensure that your savings are in good shape. What happens if you do not check your bank balance? If you don’t check your bank balance regularly, you may be surprised by fees or other charges applied to your account. Additionally, you may miss opportunities to save money or make wise financial decisions. Not knowing your bank balance can also lead to overspending, which can put you in debt and cause financial stress. It’s important to be aware of your bank balance to avoid these consequences. Checking your balance often can help you stay on top of your finances and make smart money decisions. How To Check Bank Balance Safely and Securely? Your bank balance is one of the most important parts of your financial life. It’s how you pay your bills, how much money you have to invest, and how much you have left over after all that. A quick check of your bank balance can be a great way to ensure everything’s going well. Here are six steps to check your bank balance: Through Net Banking: Open the app and log in with your username and password. Select “My Account” from the left menu, and tap “Balance.” You’ll see your current balance and any pending transactions from the past few days. Mobile App: Download the mobile app for your bank, which will give you a similar view of your account activity. Accessing an ATM: You can also check your account balance using an ATM. By going to an ATM nearby, you can put in your ATM or debit card and follow the on-screen instructions. You can check your ATM balance by following the steps listed below. Swipe your debit or ATM card. The pin for your ATM (four or six digits) From the drop-down option, select “Balance Enquiry Option.” Finish the transaction. SMS: If you do not have a smartphone or a tablet with Internet access, then SMS is another option to check your account balances through text messages sent through mobile phones. You will receive a text message with information about your account balance. There should be an automatic activation of the message notifications. You will be immediately alerted if a financial transaction is on your account. Using missed call services: Banks provide balance update notifications when customers use one of their registered mobile numbers to make a missed call. However, the following details are necessary to receive updates on your missed call balance: The requirement that you have a registered mobile phone number is the most important requirement for this process. You get balance updates only if the bank has your phone number on file. The phone number must be active to make a missed call or receive an SMS. You should be able to use this service through your bank. Call your bank: Call your bank’s customer service line and ask them to check your balance. Although you might only be able to reach a live person during specific hours, most banks offer automated systems that provide account information around the clock. So, if you don’t know how to check your balance, these are the six ways to check your bank balance easily. Tips for keeping on top of your bank balance If you’re like us, you have a lot of worries. We worry about the weather, our next vacation, and how to pay for that new sofa when we finally get around to buying one. But none of those things is as important as worrying about keeping your bank account in check. Here are some tips for keeping on top of your bank balance: 1) Make sure you’re always paying your bills on time. If you need to pay an extra month or two, ask yourself if those payments will be worth it in the long run. 2) Do not touch the money in the bank unless necessary (like getting a loan). If possible, put any extra money into a savings account so that it doesn’t tempt you into spending it before it’s earned interest. 3) Pay off debt as quickly as possible—this is one of the best things you can do for yourself! [B-02] Conclusion Checking your bank balance is a good way of keeping tabs on how much money you have and what might be coming in or going out of your account. Not checking your balance often can also lead to overspending and financial stress. Make sure you always pay your bills on time and don’t spend money unless necessary. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and help take care of your personal loan requirements, if any.
08-11-2023
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Education

Calculate F&O Span Margin Online With This Margin Calculator

The margin needs for various options exchanges may not be known to today’s stock choice traders. Most of the options and futures exchange markets all across the world have used SPAN, the top margin system in the world. SPAN uses a tricky collection of algorithms to calculate margin based on a global evaluation of the risk of one day of a trader’s account. SPAN offers futures and commodities option strategists a huge perk: an extra margin for their money. And day trading is a very risky affair. Thus, margin calculators make it much easier for you to do trading. Margin calculators make it for you to compute your futures as well as options. [B-01] What Is F&O Span Margin? The SPAN margin is the initial margin needed for the exchanges in the F&O markets. It is computed using a portfolio-based method (a set of futures and options contracts). An app named SPAN is used to calculate the margin. It is a product that Chicago Mercantile Exchange has made. Your broker gets a margin when you buy or sell a futures contract. You must fund your trading account with margins before placing a deal. If you purchase or sell a futures contract, margins must be paid. Margins in futures trading aim to protect against the risk of loss causing price changes. You run a risk when you buy Nifty futures since there will be a loss if the Nifty falls. Because markets are quite tricky, margins are kept to cover this risk. Thus, futures margins work in two sorts of margins. You must pay the First Margin on the position, which includes SPAN and ELM margins when you take the position. What Is F&O Span Margin Calculator? An online margin calculation tool for futures and options is called the F&O Margin Calculator. Both stocks and indexes may be used with this tool. It analyses the margin needs for multi-leg F&O techniques in depth, Option Writing and Shorting, and futures trading. This tool breaks down the margins into the SPAN, premium, calendar spread, exposure, and other exposure margins. Nifty & indexes may both be computed using the span margin calculator. The SPAN Margin Calculator and F&O Margin Calculator can only be accessed online. SPAN margin calculator will give you real-time margin updates for your futures and options contracts as exchange (NSE) SPAN files are downloaded five times per day on a real-time basis. How To Calculate F&O Span Margin With Margin Calculator You can view the F&O Span Margin using any margin tool online from a reputed site. Using the F&O Span Margin calculator is pretty easy and simple. However, core knowledge about how it is calculated is vital. All you need to do is choose the exchange, section, ticker, amount, and if you wish to buy or sell. You will see the margin (capital) for starting the deal after filling out the data and clicking “add.” You can check out the process in the steps below: To calculate the F&O Span Margin, you first need to go to any of the F&O Span Margin calculators available online and open the same. After that, you must select the type of exchange you will be trading in. Then, you would need to select the type of stock it is out of futures and options. Select the symbol after this of the futures or options in which you will be trading. And finally, select the quantity that you would want to buy. Then two small options would be given for selling and buying. It depends upon if the futures or options you have chosen are being sold or bought by you. As the last step, you could see an option to add. That is where you need to click. Below the calculator, the computations would be visible. You could see the SPAN, exposure margin and total margin. How does the calculator for span margin operate? So, how does a tool for SPAN Margin work in general? SPAN aims to know the total risk in your portfolio having futures and options choices. One thing that you need to know is that three elements most directly affect the value of an option at a given moment in pricing models: Basic market value Variability of the stock, or its volatility Expiry date The value of the futures and options held by the portfolio would change due to these variables. To know the most loss a portfolio might sustain from one day to the next, SPAN creates scenarios of likely changes in underlying prices. The margin (capital) needed is then established at a level high enough to cover this one-day loss. And this is how span margins work. [B-02] Conclusion By the end of this article, you will know quite a bit about Span margins and how to calculate F&O Span Margin Online using a Margin tool. The process of computing is pretty simple. Based on the factors such as volatility and price changes, the SPAN Margin calculator helps to know about the span margin and the exposure margin needed by the exchanges. The main aim of span margin is to safeguard positions and portfolios from unexpected price changes. It is the ideal way to protect oneself from losses in the market, combined with exposure margin, which creates an additional layer of protection. Thus, you can be more on guard while trading with futures and options by using the F&O Span Margin Calculator.
08-11-2023
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Home Loan

Check Home Loan Eligibility Calculator Online

Everyone dreams about their own home, and why not? Having your own house provides a different level of comfort and security. In India, most people buy a house through home loans. They make a certain down payment and avail of a home loan to pay the remaining amount. A bank or other financial institution usually funds the remaining amount. When getting a home loan, most people are worried about the EMIs. Calculating the EMI is a bit tricky if we use the mathematical formula. But it can be made easy with an EMI calculator. Further, different banks have different eligibility criteria for granting home loans. What are these eligibility criteria? How can you calculate home loan eligibility? Let’s find out! [B-01] Eligibility Criteria for a Home Loan If you must meet the eligibility criteria to get a home loan. The following common eligibility criteria are similar across most banks: Age: Generally, the home loan applicant must be between 23 and 70 years of age. Further, there are different criteria for different categories of people. For instance, for salaried people, the minimum age might be 21 years. CIBIL Score: CIBIL score is a 3-digit number indicating the borrower’s credit history. A higher CIBIL score makes it easier to avail of loans. It ranges between 300 and 900. To avail of a home loan, a CIBIL score of at least 750 is required by most banks. Income: Whether the income earned by the borrower is enough varies from case to case. It depends upon the loan amount, interest, and tenure of the loan. Many banks set a minimum income limit, and borrowers who earn above that limit are eligible for home loans. Occupation: Whether the applicant is salaried or self-employed? Is the employment in a public or private company? How much experience does the applicant have? These are important eligibility criteria for banks. Property Value: Property value plays an important role in determining the loan amount that the borrower will get. Generally, banks have a maximum Loan-to-Value (LTV) ratio of 80%. In most banks, you will get a maximum loan of up to 80% of the property value. The loan amount further depends on the income level, CIBIL score, etc. What is Home Loan Eligibility Calculator? A home loan eligibility calculator is a simple tool that shows you the loan amount you can avail of. You just need to provide a few inputs to know the amount of loan you are eligible for. The following inputs are required for the loan eligibility calculator: Profession: What is the profession you are engaged in? Are you a salaried individual or self-employed? Gross monthly/annual income: You need to provide your income details. What is your monthly or annual income? Existing EMIs: Is there an existing loan or EMI that you are repaying? This is important because existing EMIs reduce your disposable income. Interest Rate: What is the interest rate you expect on your home loan? You just need to enter the probable interest rate that may be charged on your home loan. Loan Tenure: What is the tenure for which you want to avail of the home loan? The longer the tenure, the lower the EMI. The tenure will impact eligibility. If you select a shorter tenure, it will reduce the loan amount. This is because your EMI will increase because of your short tenure. Once you provide the inputs mentioned above, you will know the amount of loan that you can avail of. This will give you a clear idea of funding the purchase cost. It will show how much of your home purchase cost will be financed by the bank. You will also know the cost you need to finance. How to Improve Your Eligibility? To improve your eligibility for a home loan, you can consider the following: Apply for a joint home loan. A co-applicant is one of the most effective ways to improve home loan eligibility. Further, it also increases the loan amount you can get. Obtain a well-structured repayment plan. This will give you a quick idea of the loan amount, interest, and EMI you will pay. Try to maintain a regular income stream. Two or three streams of income are even better. Further, invest in multiple avenues. Make sure to provide information about extra sources of income when applying for the loan. Track the various components of your variable pay. Check your CIBIL score. Report any problems to the CIBIL bureau and get them rectified. If there are any short-term debts or obligations, pay them to reduce your liabilities. [B-02] Conclusion It is important to fulfil the home loan eligibility criteria to avail of a home loan. A higher home loan reduces your down payment burden. With active steps, you can improve your eligibility. Use the home loan eligibility calculator to know your eligibility. This will ensure that you do the needful to meet the eligibility criteria before applying for the loan and result in a higher loan amount. Good eligibility and a good CIBIL score help lower the interest rate for a home loan. It is time you build your dream home! For more information about home loans, visit Piramal Finance.
08-11-2023
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Other

10 Upcoming IPOs in India

Are you planning to venture into the stock market? Or perhaps you’re considering various trading strategies? Whatever the case, an IPO can be an excellent tool for any trader to invest in, be it a beginner or an expert. With the Indian economy on the rise, several businesses are launching their IPOs in the coming months. We’re here with a list of 10 upcoming IPOs in India for you to consider. In this article, you’ll also learn about IPO allotment and how to check IPO status. [B-01] What is an IPO? IPO stands for Initial Public Offering. It is a process through which a private firm issues its shares to the general public for the first time. The new investors buy the shares and provide the company with capital to aid its growth. An IPO can be a great way for the public to invest in and claim ownership in a company. The Indian economy is growing these days and thus startups are on the rise. Some day or the other, these businesses will need to raise funds. So we’ll be seeing many upcoming IPOs in 2022. What are the benefits of an IPO for a company? A new business receives funding from angel investors and banks to grow. An IPO is easy for the company to get financing without high interest and collateral. An IPO also allows the company to get listed on stock exchanges. And it can also generate publicity, as seen in the cases of PAYTM and Burger King. 10 Upcoming IPOs in India and How to Apply for Them 1. Snapdeal Snapdeal is an Indian e-commerce company and a rival of Amazon and Flipkart. Snapdeal plans to raise Rs 1250 crores and issue around 308 lakh equity shares in 2022. The IPO date notice will come soon. 2. OYO Rooms OYO is a famous Indian startup operating in the hospitality domain. OYO is home to several leased hotels which can be booked by visitors online. This year, OYO plans to raise Rs. 8430 crores. It’s one of the top upcoming IPOs in India. 3. Ola Ola is an Indian multinational ride-sharing company. After losing money in the COVID pandemic, it is now on an upward trajectory. Experts believe Ola will launch its IPO in the last quarter of 2022. 4. boAt boAt is a fast-growing Indian electronics brand known for its affordable gadgets. It has become a household name in the country. boAt filed for an IPO earlier this year for Rs. 2000 crores. The date will arrive soon. 5. PharmEasy PharmEasy is a rising online pharmacy brand that plans to go public this year. The PharmEasy IPO will raise Rs. 6250 crores in 2022. 6. Go Airlines Go Airlines is a popular Indian airline, and its IPO is one of India’s most anticipated upcoming IPOs. Go Airlines will issue fresh equity shares worth Rs. 3600 crores in 2022. 7. Fabindia Fabindia Limited is a 62-year-old retail brand selling garments and ethnic handmade products. Fabindia plans to issue 2.5 crore equity shares in 2022 to raise Rs. 500 crore. 8. BYJU’S Byju’s is a digital learning platform in India. It offers various courses to school students and job aspirants. Byju’s has been growing fast lately and plans to go public before April 2023. 9. Senco Gold Senco Gold is a fast-rising pan-India jewellery retailer with a 3-decade history. In April, Senco Gold filed a DHRP (Draft Red Herring Prospectus) with SEBI to raise Rs. 525 crores. 10. MobiKwik MobiKwik is a leading mobile payment platform in India. It is quickly becoming customers’ go-to place for online purchases. The MobiKwik IPO is also one of India’s most anticipated upcoming IPOs and will issue shares worth Rs. 1900 crores. How to apply for an IPO? Applying for an IPO is very simple in this digital age, but some prerequisites still exist. Choose a company Read the red herring prospectus on the SEBI website Check past profits, transparency in funding, debts, etc Open a Demat account and a trading account Linked a verified bank account with the necessary capital Select the lot size and bid You can choose independent platforms like Zerodha and Sharekhan to apply for an IPO. Some banks also merge bank, Demat, and trading accounts. What is IPO Allotment? Every IPO has specific quotas for different investors. High-value investors are usually preferred over the general public. And sometimes, there can be an oversubscription. It happens when the number of shares in demand exceeds the number of shares the company has released. In such cases, there is a random selection of applications. So either you get the allotment or your money back. In the case of an under-subscription, SEBI dismisses the IPO. How to Check IPO Status? The IPO allotment process isn’t over once your application gets through. Sometimes you receive fewer shares than you bid for. So it’s essential to double-check the IPO status. You can check IPO status on the websites of the registrars. These are independent organisations affiliated with stock exchanges. The company appoints them to oversee the record of the issued shares. You can also check IPO status on the websites of BSE and NSE. [B-02] Conclusion So, now you know about some upcoming IPOs in India, IPO allotment, and how to check IPO status. Next, you’re probably thinking of applying for an IPO. Be sure to review the company before taking that big step. However, some people may not have much capital to invest. If you need help with finances, you can always take the help of a financial expert like Piramal Finance. They will suggest what’s best for you and help take care of your personal finance requirements if any. Hopefully, you’ll make an informed decision. Happy trading!
08-11-2023
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Cards

What is the Meaning of a Credit Card and What Are Its Benefits?

Credit cards are a way to pay for things before you actually pay for them. You can buy things without cash if you have a credit card issued by your bank. Also, users can pay up to a certain amount. The card issuer decides on the credit limit based on your credit history. A free credit card holder can borrow money from the card issuer up to the card’s credit limit. There are credit cards for businesses and credit cards for people. Most credit cards are made of plastic. [B-01] Difference Between Credit Cards and Other Cards The rules for paying with a regular credit card are simple. Charge cards have a stricter payment plan than debit cards. Most of the time, it must be paid every month or at the end of the billing cycle. Therefore, credit cards enable cardholders to add a specific balance. It lets you get all the benefits of debt for which you had to pay interest. You can’t use a charge card like a credit card. The idea behind credit cards is also that someone else pays for them. Before taking the card payment, the money is given to the vendor. When a free credit card is used, the best buyer waits to pay until later. Credit cards and debit cards are used for different things. Rather than paying by cash, a card is taken anywhere and used as a method of payment. Digital payments, such as debit cards and UPIs, are good ways to pay. You can use a free credit card in these ways. In the US in 2018, 1.12 billion credit cards were used, and 72% of people had at least one. Technical Specifications Any money that is taken with a credit card has to be given back. Before or after the date the bill is due. Also, any useful extra fees that were agreed upon ahead of time. Borrowers can get the money they need when they want it. A cash line of credit is a way to twist credit. With a cash advance, you can borrow this money. You can use it at any bank’s teller window, ATM, or check-cashing feature on a credit card. Cash advances differ from other ways to use credit because they come from a secondary line of credit. These loans have no grace period, and the interest rates are higher. The borrower is given the most money possible. The decision is based on how much the borrower is worth. Types of Credit Cards The most popular types of credit cards- Visa Mastercard Discover American Express. They are offered by financial institutions like banks and credit unions. Many credit cards have reward programmes that are set up so that people who are eligible can join. Offer free flights, free hotel stays store credits, and cash back on purchases. A credit card’s purpose is also to get rewards. Many big stores give out credit cards that have the store’s name on them in a big way. This is done to get their customers to like their brand more. Some stores give out credit cards that can only be used in those stores. Use can be a trade-off for the limited ability to spend. People with cards may get discounts, early access to sales, or other perks. Some stores sell credit cards that are co-branded with Visa or Mastercard. This means that customers can use these cards anywhere that accepts them. How Do I Get a Free Credit Card if I Don’t Have Any Credit? Establishing a positive credit history can feel like a catch-22 at times. Due to poor credit history, businesses and financial firms may not agree to give you a free credit card. One of the simplest methods to get started is to open a secured credit card. Adding yourself as an Authorized User to an existing meaningful credit card account may be beneficial. A family member may also hold this as one way to start building credit. Over time, including the cardholder’s credit history will raise your credit score. But make sure your prospective business associate has sound financial practices. Benefits of Credit Cards Credit cards have countless advantages, but here are just a few of the most noteworthy ones: Buy on credit The available credit is the main selling point of a credit card. With that amount, you can buy everything you want without worrying about the price. Even if you buy expensive things on credit, you won’t have to worry about busting your monthly budget. One of the best things about using a credit card is dividing the entire cost. Division can consist of your purchases being segregated into affordable monthly instalments. The amount you can pay them off in instalments over time. The effect of going shopping has been nothing short of revolutionary. The most accepted method of payment You can travel to any country with a card without worrying about bringing ample cash. Credit cards are the universal currency, allowing you to buy anything with one swipe, anywhere. Interest-free cash withdrawals A small number of credit cards increase interest on withdrawals that is made within the first 45 to 50 days of an emergency. It’s there for you in case of a financial crisis. [B-02] Conclusion The advantages of free credit cards were the subject of this research. The meaning of a credit card is to have the most convenient way to make payments. It has transformed the mode of digital payment. To get more information on credit cards and personal loans, visit Piramal Finance.
08-11-2023
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Cards

Important Features and Benefits of Super Card

Credit cards have made making payments more manageable. Along with convenience, you enjoy various benefits in categories like shopping, movies, entertainment, travel, restaurants, cashback, and more. Super Card is your answer if you want a card that complements your elevated spending habits and lifestyle. The benefits you enjoy on this card are superior to your regular credit or debit card. For example, you get anywhere from 2 to 20 times accelerated points and rewards on purchases. In addition, you can get a fuel surcharge and annual fee waivers depending on your spending. You can get complimentary access to airport lounges every quarter. Or you can redeem points to book flight tickets and hotel stays. Let us start with the article to learn more about the features and benefits of Super Card. [B-01] What is a Super Card? A Super Card is a credit card with additional features and benefits. In the case of an emergency, the card can also double up as a debit card. You can withdraw money using the card according to your credit limit. Several banks in India offer this card to customers. Different variants of the card are offered, which come with varying benefits and annual fees. For example, an entry-level card may have a yearly fee of INR 499. On the other hand, an elite-level card that can be used globally may have a yearly fee of INR 4,999. So, you should choose a card according to your spending habits. Eligibility Criteria for Application The eligibility criteria will differ depending on the card issuer. However, we will look at the basic requirements you may need to fulfil. You must be an Indian citizen You must be between the ages of 25 to 65 years You must have a regular source of income You must have a credit score of 750 or above You must have a good credit history with no default payments What are the Important Features and Benefits of a Super Card? Are you wondering if the Super Card is the right financial product for your spending habits? Are you unsure whether you should apply for one? Here are some features and benefits the card offers that can help you decide: · Welcome Rewards Most card issuers offer you a welcome gift once a card is issued. The welcome gift can be in the form of reward points. For example, some banks provide 2000 reward points worth INR 500 while other banks offer 20,000 reward points worth INR 2,000. The points may be used on partner channel products and services. You may also have to use the points within a specific period, for example, a month, or they may lapse. · Zero-interest Cash Withdrawals from ATM The transaction will attract high fees and service charges if you use a credit card to withdraw cash from an ATM. With a Super Card, you do not have to pay any interest for up to 50 days when withdrawing money from the ATM. · Emergency Loan Emergencies can show up anytime, disrupt your routine, and stress you out. But, with a Super Card, you are better equipped to handle emergencies. Your card comes with a pre-approved credit limit. In case of emergency medical expenses or house or car repairs, you can convert the available cash limit to a personal loan once a year. For up to 3 months, there will be zero processing fee and a minimum interest rate. You can do this conversion from the comfort of your home. Please contact the bank for accurate charges and interest rate structure. · Reward Points For every purchase, bill payment, and online spend that you make, you receive reward points. Some cards offer one reward point for every INR 100 spent, while others provide 2X the points. The point allocation may differ according to category. For example, online shopping can get you twice the reward points. In the case of elite cards, you may get up to 10X points on international spending. So, the more you spend, the more you are rewarded. · Airport Lounge Access Long flights, layovers, and the risk of delayed flights can make travelling a tiring experience. Airport lounges are places where you can sit, relax, and enjoy some good food and drinks while you wait for your next flight. With a Super Card, you can enjoy complimentary access to airport lounges. Some cards offer one lounge access every quarter at domestic airports. Other cards can get you up to 8 complimentary lounge access between domestic and international airports. · Milestone Bonuses Card issuers have set milestones for the spending amount. For example, if you spend INR 50,000 a year, you may get up to 3000 reward points. For big spenders, if you reach milestones of Rs 3 to 5 lakhs, you can get 20,000 to 40,000 reward points as benefits. These reward points can be worth INR 1,000 to INR 4,000. · Fuel Surcharge Waiver The waiver means you do not have to pay surcharge fees when using the card to pay for petrol or diesel. Depending on the card, the fuel surcharge waiver every month can range from INR 100 to INR 200. · Offers and Discounts Banks partner with retail giants, online brands, entertainment portals, travel booking websites, and more to bring exclusive offers and discounts. For example, you can get a free movie ticket monthly with online booking. Or you could enjoy a 10 to 20% discount when dining at partner restaurants. You can also get deals when redeeming points at partner outlets. · Annual Fee Waiver Banks charge an annual fee plus taxes as maintenance for these cards. But, your next year’s annual fee will be waived if you reach a particular spending milestone. For example, If you spend INR 50,000 a year, along with milestone bonuses, rewards points, and offers, your yearly fee for the next year will also be waived. [B-02] Conclusion If you want to own a card that complements your lifestyle, explore the different Super Cards available. These cards are designed to reward your spending habits. You can save with cashback and reward points while enjoying welcome and milestone bonuses, complimentary airport lounge access, fee waivers, and exclusive offers and discounts. You can visit Piramal Finance to get a free credit report and check if you are eligible for a supercharged credit card. You can also get in touch with their experts to know more about personal loan features and benefits.
08-11-2023
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Banking

How can I log in to my bank account to check my bank balance?

Before the digital age, checking bank balances was complex. You would have to stand in long lines outside the bank. Now the passbooks are just a useless formality. You can now do the following things using your mobile phone: Log in to your bank account and do cashless transfers in real time. Check the account balance without standing outside the bank. Easily review your past transactions, mini statements, etc. With advanced technology, banking is easier than ever. You just need to use your bank login details. [B-01] Why must we check our bank balance regularly? We must always keep track of our expenses. This is a healthy financial habit that helps you track your spending. It also helps you spot any fraudulent activity. You can easily spot banking errors or missing funds. You can spot unwanted subscriptions as well. What to remember before logging into your bank account Now we know that checking our balance regularly is a great habit. Let us see what we need to do before we check it online. You must note the following things are important to check your bank balance online: The bank must have your KYC details. This means your mobile number must be registered with the bank. You need a smartphone with an internet connection. Make sure your mobile number is active. Make sure it has the facility to send and receive an SMS or call. You have installed mobile banking and UPI apps. You have an active Net Banking account and login information. Here are the different ways to log in to your bank account to check your bank account balance: Bank account login via net banking: Net banking is an important facility that every bank provides. You can ask to activate it when you open your account. You can also activate it at any point after opening an account. The bank will give you your username and login password. Here’s how you can check your account balance using net banking: Open the bank’s net banking website. Log in to your bank account using your username and login password. You can choose which account you need to manage if you have multiple accounts at the same bank. You can easily check your bank balance, past transactions, account sheet, etc.You must make sure that you never share your login details with anyone. It must be highly safe in your custody. Bank account login via mobile apps: Mobile apps are an easier version of net banking. You don’t need a computer or laptop. You can use them with the same details as for net banking. These apps might also ask you to set up an mPIN. These mobile PINs make logging in easier. You don’t have to type in the username and login password every time. Just use the mPIN to login to your account on the app. Here’s how you can check your balance using mobile apps: Download the app. Log in using your details and generate the mPIN. After generating an mPIN, you don’t need login details next time. Choose the option for checking your account balance. You can also open your account statement. You can see all recent transactions using this feature. Make sure you always log out of the app after using it. The same goes for net banking. This prevents anyone else from using your account on your device. Checking account balance using a UPI app: UPI apps like Paytm, Google Pay, etc., have made cashless payments a trend. To use these apps, you must link your bank accounts. It is a simple process that requires your bank account details. The app then verifies your details with the bank. After verification, your account links up with the app’s interface. You can link multiple bank accounts in the same app. The app will also ask you to set up a 4- or 6-digit UPI PIN. You can only make transactions after putting in the UPI pin. You don’t need a bank login to check your balance with the UPI apps. Here’s how you can use a UPI app to check your bank balance: Open the UPI app. Choose the account that you want to manage. By clicking on the account, you can select to see its balance. The app will ask you to put in the UPI pin. Without doing it, you cannot check your account balance.Getting balance alerts via SMS is one of the easiest ways to check your account balance. You don’t have to do a bank login on a website or app. You also don’t require a smartphone or internet connection. Most banks provide this facility to their account holders. Once activated, you can request a quick balance update anytime. You need to send a text message to a number provided by the bank. Then you will receive the balance details by text message. Checking your balance using the bank’s toll-free number: Most banks provide a toll-free number service to check account balances. It is an IVR-based service. To check the balance, you need to call that number. This might be the same number from which you get text alerts. Setting up text alerts: Banks set up the text alert facility when you open an account. So, whenever you make a transaction, you will get an alert. This alert also includes your account balance. However, sometimes you might not get these alerts. So, it is best to check the balance manually at regular intervals. [B-02] Conclusion From this guide, you can see that checking account balances is super easy. You just need to log in on the internet banking website or the mobile app. You can also do it without logging in. You can also check your entire transaction history. It is a healthy financial habit to monitor your expenses regularly. But you must always remember to log out from the website or app after each use. If you need help with finances, you can always take the help of experts such as Piramal Finance to guide you through your personal finance journey.
08-11-2023
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