Some Don't to remember while using Credit Cards

Listed below are few don't attached with the use of Credit Cards, if you want to remain happy:

• Never use them for buying Long Term Expenses - Never buy products such as Cars or any loan time product item from your credit card even though it allows it. Do so only in case you have that much of balance in your saving account or if you have taken a car loan.
• Use it within your income limit - If you have a Rs. 25,000 income and your expense is Rs, 35,000, for this short fall never use your credit card for the Rs. 10,000 short falls as it will slowly become a nightmare of debt trap for you.
• Borrow money as little as possible as against your credit card - Withdrawing money as against your credit card is not a smartest thing to do. In case of emergencies like traveling, where you fall short of money and need emergency funds, then you can withdraw maximum of 40% of your credit limit, thats is on Rs. 15,000 limit, withdraw up to Rs. 6,000 as you start paying high interest from the time you start taking funds. Hence the best way is to pay it back as soon as you reach back home so as to avoid going in debt.

Documents required while going in for Car Loans

Following documents you should carry while going in for Car Loans:

1. Form 20 or application for new car registration
2. Photocopy any proof of your address - Insurance Policy, Driving License, Ration Card, Voter's ID, Invoice of the car.
3. Form 23 or Original Sales certificate document, sales tax receipt and Octroi Receipt
4. Form 22 or Pollution control certificate
5. Form 34 or Copy of your car loan / letter from the financier addressed to the RTO asking them to endorse the lien on your car registration certificate
6. Document of your Car Chassis Number
7. Photocopy of your PAN number

Car Loan's ROI offered by major banks...

Check the ROI offered by Major Banks in India

http://www.apnaloan.com/car-loan-india/rates.html

Any Questions??

If you have any questions regarding any kind of loan then get in touch with me on surabhee.gupta@gmail.com

How to get Tax Benefit from education loan???

Another Benefit in line to make get your child in for Higher Studies. Get an education loan and get tax benefit along with reducing the overall cost of the loan.


1. Under Section 80 E it is clearly mentioned that a person having an education loan will get a tax rebate for the interest paid (without any limitation as it used to earlier), and not an the Principal Amount, as the repayment of the loan for the first 8 years. Any loan above that time period will not get tax rebate after 8th year.

2. The tax benefit is given to only those people in whose name the loan has been taken, whether it is the person itself, or for spouse or for your children. It does not take into consideration the loan taken by elder brother or sister for the education of their siblings.

3. The loan taken by financial institutions or banks only give you the flexibility of tax reduction. Loans taken by family members, friends or employer doesn't add value in the tax reduction. Some charitable institution are also approved for the same by Govt. Of India.

4. Part time course loan are not included in tax benefit plan. Full time courses for Graduation or Post Graduation are included in the same.

Needs Education Loan - Make sure you have the required docs

Below are the list of the docs that you need to deposit in the bank while taking an education loan along with the complete application form:


1. Mark Sheet of the last qualified examination

2. Proof from the institution of your admission / registration

3. Detail of the expenses and the break-up of the course fee

4. Bank account statements for last six months (if you have any)

5. Income tax assessment order for last 2 years. If you are not an income tax payee then your parent's tax statement would also be good enough

6. A brief analyzed statement of the assets and liabilities of the borrower, again of your parents if you don't owe any.

Car Loan or Personal Loan

I recently wanted to buy myself a new car and thought that instead of the total payment at one go I would go in for a car loan instead.

But then when I called up various banks to check the ROI they were offering I was shocked that most of banks told me to go in for a personal loan rather than taking it up as a car loan.

Well well I think the way they were trying to convince me it seems that most of the people have come in their rat trap. Now please don't get into this trap.

Car Loans are always better than personal loans.

On car loans you have to pay a lower EMI and also you get a lot of fringe benefits such as free car accessories and many more.

Also to tell you a secret this is the best time for taking car loans at the best rate as during this time the sales goes low and due to quarterly year ending in September sales people need to complete their target and hence you give the best rates possible with maximum benefits. :)

Credit Cards - Devil or Angel in Disguise

We should always try to get the best out of the credit cards. They are infact a great gift to us but yes they can become nightmares for us if not used properly....

The best thing that I like about Credit Cards are that I can buy anything form them without disturbing my balance (as I can pay them later when my salary comes due to fixed billing date) and also there is no Interest headache even attached to it. Soemtimes if I forget to pay then also I get a reminder from the bank about payment due date on emails or on my mobile.

Also when you doa big shopping through your credit cards banks offer you reward points and redeem them for anything you would like. Or they might also transfer it to your other card if your due date for payment is coming near.

But yes at it is said correctly that nothing in today's world comes for free. hence, for this also to work properly for you, you should have adequate credit limit in your new credit card for the balance to transfer. Some banks even transfer the balance for free for the initial period.

So with so many benefits make your Credit Cards a blessing for you rather than taking loans over loans for paying credit cards bills.

So be alert and HAPPY SHOPPING....