Science & Technology

This is the transfer of money between sender (who is living in one country) & receiver (who is living in another country ) . The transfer of funds are called remittances . As transfer of money takes place between the two different countries so it is called foreign remittances .

There are two participants one is called active participant and other is called passive participant . The person who sends money is called active participant & the person who receives money is called passive participant .

1. Types of Remittances :

• Inward Remittance : In this remittance , person is passive participant , because he has to given his details to sender who will transfer money . Therefore in Inward remittance money is received from abroad .
• Outward Remittance : In this remittance , person is active participant because he has to transfer money to recipient account . In outward remittances money is sending abroad , hence one should always choose right bank for outward remittances .

2. Be careful about choosing Bank :

The person should be careful about choosing bank for transfer of money .

• Time for Process Completion : In how much time bank will complete the remittance processes . Some bank complete the transfer process within two days .
• Hidden Fee : One should always check before transferring that is there any hidden fee is imposed on remittance .
• Check Limitations : How much money can be transferred . What is the maximum limitations (Maximum Amount) of transferring money .
• Exchange Rate : Before transferring one should always check that how much is the exchange rate .

Thus we can say that foreign remittances are the financial lifeline for a person living abroad .

The full form of UPI  is Unified Payments Interface . This interface is initiated by NPCI (National Payments Corporation of India) and regulated by RBI (Reserve Bank of India) & IBA(Indian Bank Association) . This is the crucial step taken by government to enhance digital economy & cashless economy . This interface is safe & secure . Using this system anyone can do online shopping , transfer money , pay mobile bill , electricity bill etc. e.g. BHIM App , Paytm , Google pay and many more .

#1.Things require for transferring money :

For transferring money via UPI  :

• One should have a Smart Phone
• One should have Active Bank Account & also your mobile number linked with this Account .
• Internet Connection with your Smart Phone

#2. How to Register ?

• • One should download the UPI App from Play Store or Bank website
  • One should create his/her profile by entering details : such as Name , virtual ID , Password etc.
  • Now to go to “Add/Link/Manage Bank Account” option and link your Bank Account Number with virtual ID .

#3. How to generate PIN ?

• You have to select bank Account from which you want to start transaction .
• You will receive an OTP (One Time Password ) from the selected bank on your registered mobile number .
• You have to enter the last 6 digit of your Debit Card Number & expiry date .
• You have to enter OTP and your preferred UPI PIN that you would like to set & Click on Submit .
• After Clicking on Submit you will get a successful notification .

#4. Benefits of UPI :

• Immediate money transfer through your mobile .
• You can link Single Application with your multiple Account .
• Fast payments : Money can be transferred in real time & anytime .
• Security : This system uses Push and Pull technique . You have not to fill any details such as : Bank name , Bank Account Number , IFSC etc.
• Utility : By using this system you can pay your mobile bill , electricity bill , online shopping , money transfer & many more things .
• Single Click two factor Authentication : After completion of payment , confirmation has to sent to your mobile number .
• No need to carry cash due to instant money transfer .
• You can transfer up to Rs.1 lacs per day .

What is CIBIL  Score ?

It is  a credit score issued by credit rating agency CIBIL (Credit Information Bureau India Limited). All the banks & NBFCs are their member . This will help its member to give loan and credit card to people with better credit score .

CIBIL  Score is a three digit number between 300 to 900 . Higher is the number better is the CIBIL Score . Anyone having CIBIL  Score greater than 700 will be considered good .

When anyone apply for loan or credit card , the loan provider check his credit score before approving any loan . If one has low CIBIL Score then you may improve it .

Let me tell you how to improve your CIBIL  Score :   

#1. Never delayed your Payments:

As delayed payments damages you CIBIL  Score much more so never delayed your credit card payments , loan EMI etc. Always pay on time to maintain your CIBIL Score . If you are using credit card or you have taken any loan e.g. home loan , car loan etc. always ensure that you pay loan EMIs , credit card bill on time , otherwise  this will hamper your credit score – so don’t miss it .

#2. Don’t borrow if no need :

As now a days , getting loan is much easier than before so you should not take borrow more than your paying capability . As higher will be the borrowed amount higher will be EMIs . So never borrow the amount more than you need . If you are going to take loan you should select loan tenure such that you may easily pay your monthly instalments . This is the best way to improve your CIBIL Score .

#3. Be careful about your credit card :

If you are using any credit card then you should be careful about using it . Don’t misuse this type of financial tools . You should only use your credit card when you have actually needed . Needless to say , ultimately you have to pay your credit card bill which you have already spent . Be aware that interest rate of credit card is very high and if you do not pay it on time it will damage your CIBIL Score .

#4. Don’t be credit hungry :

As you should know that CIBIL agency maintain your credit information , bank & credit card providers see that how many times your report has been accessed . You should avoid multiple applications within short span of time . Credit hungry behaviour will damage your CIBIL Score , so you have to avoid it .

#5. Check your CIBIL Score :

To check your CIBIL Score you may visit on CIBIL website and on follow the instructions given there & you may check your CIBIL Score . If there are any error in your CIBIL  Score you may fill a dispute resolution form on this website to resolve the issue .

As we all know that quality education plays very important role in creating a successful life . But due to sky rocketing fee of college/Institution every year , it is very difficult for a student to take a quality education from a premier college/Institution . If a student qualify the entrance examination for taking admission in premier college/Institution but due to high tuition fee  it is very difficult to study in such colleges/Institutions . Therefore education loan is a hopeful way for those students who can not afford such a hefty amount . On the basis of education loan facility provided by banks and NBFC student can fulfil his dream to study in premium college/Institution .

Now let me tell you how to get education loan :

#1. Eligibility Criteria :

• Application should be Indian resident having age lie between 16 years to 35 years .
• Should have confirmed admission in college , university recognised by UGC , AICTE
• Mostly available for Graduate , Post-graduate & diploma courses .

For education loan approval of applicants , co-applicant is mandatory .

#2. What is covered by Education Loan:

• Tuition fee of college/University
• Accomodation Charges of college
• Examination fee , Library fee
• Books & Equipments

If any applicant going to study abroad then travelling expenses are also covered .

Amount Sanctioned : The amount sanctioned if applicant study in India will be up to Rs. 15 lacs

For abroad , the sanctioned amount will be up to Rs. 75 lacs . But it all depends upon course , colleges & banks .

#3. Collateral / Security Required :

• Up to Rs. 4 lacs : No security is required .
• More than Rs. 4 lacs : parent to be joint borrower + Tangible collateral security . e.g Property , Fixed deposits , Life Insurance etc.

Moratorium Period: After how much time borrower will have to start paying loan . Moratorium Period will be Course period + Max. 1 year after course completion .

e.g. If a student doing B.Tech (4 year degree courses) then up to 4 years he has not to pay any amount because he is not able to pay during this period . One extra year is given to him so that so that during this period he will get the job and start repaying the loan amount .

#4. How much Margin Money :

• Up to Rs. 4 lacs – No margin money is required .
• More than Rs. 4 lacs –   5% will be margin money for studying in India

e.g. If college fee is Rs. 5 lacs then applicant would have to pay Rs. 25000/ and rest amount Rs. 475000/ would be paid by banks .

For study in abroad : 15% will be margin money

#5. Interest Rate :

As interest rate is not constant whereas it is variable and depends upon colleges , Courses etc.

(i) For Premier Institutions/Colleges , Interest rate is low . e.g. For IIMs/IITs/IISc interest rate is 8.25 % to 8.65 % .

(ii)For other Institutions / Colleges : Interest rate is 9.15% to 10.15%

(iii) For girls applicant there is a rebate of 0.5% on interest rate .

Note that Interest rate varies from bank to bank so please compare it before getting loan from any banks or NBFC.

#6. Tax Rebate & Disbursement :

• Avail Tax rebate up to 8 years under Income Tax Act .
• Applicant should know that loan is disbursed directly to college/Institutions .

#7. Documents Required :

• Application Form
• Admission Letter along with fee details of college / Institutions
• Aadhaar Card
• PAN Card
• Residence Proof
• Income Proof of Parent/Guarantor
• Passport / Visa if applicants are going to study abroad