April 2021


Benefits of a Digital Savings Bank Account

A Digital Savings Account is an online savings account that can help you avail banking facilities at the ease of your fingertips. It offers a wide range of benefits and can be opened online within minutes through a hassle-free process. With the help of a Digital Savings Account, you can get your bank account statement online, and avail banking services such as instant transfer, phone banking, SMS banking, etc. As a result of rapid digital transformation, having a Digital Savings Account has become the need of the hour. We are going to have a look at some other important benefits of a Digital Savings Account in this article.

Benefits of a Digital Savings Account

Easy online opening process

The Digital Savings Account can be opened through a seamless and quick online process. All you have to do is keep your PAN card and Aadhaar number handy and complete a few steps to open the Digital Savings Account online from the comfort of your home or office.

Earn interest

You will be able to earn interest on the balance in your Digital Savings Account. This will help you grow your money gradually with time.

Easy access

You can access your Digital Savings Account from your mobile or laptop easily. You can keep track of your transactions, check your balance, transfer funds online, pay utility bills, and enjoy online shopping with a Digital Savings Account.

Safe and secure transactions

Digital Savings Accounts have a robust security system. The two-factor authentication ensures that the account is only accessed by the account-holder. Thus, the transactions made through Digital Savings Account are completely safe and secure.

Unlimited free transfers

With a Digital Savings Account, you can enjoy the benefits of free transfers like RTGS, NEFT, and card payments.

Zero balance account

Most Digital Savings Accounts are also Zero Balance Savings Accounts. Thus, you won’t be charged for non-maintenance of the minimum average balance. You can use your money without having to worry about the minimum average balance requirement.

Investing made easier

A Digital Savings Account allows you to create a Fixed Deposit or Recurring Deposit within a matter of minutes. Moreover, you can also purchase and redeem Mutual Funds, and track your investments instantly using a Digital Savings Account.

All the above-mentioned benefits of a Digital Savings Account will surely make banking easier for you. You will be able to manage your finances efficiently with a Digital Savings Account. So why wait? Open a Digital Savings Account and enjoy the numerous banking facilities at the earliest. However, do not forget to check the credibility of the bank before opening a Digital Savings Account with it. This will help you make a well-informed decision. You can go through the existing customer reviews of the bank to get a better idea of the bank’s authenticity and credibility. Lastly, it’s advisable to settle for a bank that offers efficient customer service and round-the-clock assistance.

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Top 5 Mistakes to Avoid Before Opting for Loan Against Property

A Loan Against Property can be of great help when you require a large amount of money. It is basically a secured loan, wherein you can mortgage the property to the lender in order to borrow the loan amount. Since it is a multipurpose loan, the loan amount can be utilized for various purposes such as funding your child’s higher education, managing his/her wedding expenses, etc. In case you wish to apply for a Loan Against Property to fulfil your monetary requirements, ensure to avoid these critical mistakes as they can cost you dearly in the long run.

Avoid These Mistakes before Availing a Loan Against Property

  1. Not checking your loan eligibility

Your loan application will be approved only if you satisfy the eligibility criteria set by the lender. You can check your eligibility using a home loan eligibility calculator. Not checking your loan eligibility before applying for a Loan Against Property can lead to the rejection of loan application. Lenders usually check your age, income, existing EMIs, credit history, and the current value of your property to decide on your loan eligibility. Moreover, for processing the loan application, you would be required to submit documents such as age proof, income proof, address proof, property documents, etc. To ensure a smooth loan application process, ensure to check the loan eligibility beforehand and keep all the necessary documents handy.

  1. Not evaluating your repayment capacity

You must not forget that a Loan Against Property is a secured loan wherein your property acts as collateral. Thus, if you fail to repay the loan amount within the stipulated time, the lender reserves the right to seize your property to recover the loan amount. To avoid this, it’s better to apply for a Loan Against Property only after evaluating your repayment capacity. Also, do not overborrow, as it can be financially burdensome at a later stage

  1. Not choosing the loan tenure wisely

It’s advisable to settle for a loan tenure that works the best for you. However, opt for a shorter tenure if you foresee an increased income in near future, or you can afford to pay back the loan sooner. A shorter tenure attracts a lower interest cost.

  1. Neglecting your credit score

Your credit score not only enhances the chances of loan approval but also makes you eligible for a competitive interest rate and favourable loan terms. A credit score of 750 or above is considered to be good enough by most lenders. Therefore, do not ignore the importance of a high credit score and work towards improving it before applying for a Loan Against Property. You can boost your credit score by clearing outstanding dues, having the right credit mix, and decreasing your credit utilization ratio.

  1. Not checking the prepayment and foreclosure charges

The prepayment facility would allow you to close the loan sooner and save on the interest pay-out. However, lenders usually levy a foreclosure charge in case you prepay your loan. Ensure to read the prepayment clauses and charges set by the lender before applying for a Loan Against Property.

At Kotak Mahindra Bank, you can easily avail a Loan Against Property up to Rs 5 crores, and with minimal prepayment charges. The application process is online and hassle-free. Apply for a Loan Against Property and take care of your monetary needs with ease, today.

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How to Prepare Yourself for a Medical Emergency in 2021?

COVID-19 has infected almost 11 million people in India, as of February 12, 2021. In the face of the pandemic, it has become evident that a medical emergency can strike at any time. Apart from the physical and emotional trauma, it can be huge pressure on your finances. So, here are some steps to take to prepare yourself for a medical emergency in 2021.

Start an Emergency Fund

  • Open a savings account only for the purpose of saving for a medical emergency. Opening a savings account online is very easy. Moreover, savings account generates interest, which can help grow your funds.
  • Choose a bank that offers the best interest rates on savings accounts.
  • Regularly deposit money in this account. You can plan your expenses and set aside a small amount monthly, as soon as you receive your salary or any other form of income you may have.
  • Refrain from withdrawing money or conducting transactions from this account for non-medical purposes.
  • Keep track of how your funds fluctuate. This will help you to prioritise replenishing funds if you need to make a withdrawal for any reason.
  • Savings accounts have much higher liquidity than other investments like fixed deposits or mutual funds. This means you can access the funds at any time and don’t need to borrow money or make an overdraft on your investment.

Weigh the Costs

  • Study your family’s medical history and consult a doctor. For example, if you have a family history of heart disease, consult your doctor regarding the steps to prevent it.
  • Make a list of the most common medical emergencies and reach out to a hospital to understand the estimated cost for each. This should give you a rough idea of how much you need to save in your emergency fund. Start eliminating unnecessary expenses so that you can achieve this target quickly before an emergency occurs.
  • Improve your health by eating a balanced diet, exercising regularly and getting enough sleep. Encourage your loved ones to make the necessary lifestyle changes.

Get Health Insurance

  • Health insurance is an excellent option to help you cover most of the costs in case of an emergency. This can be supplemented by your savings.
  • For a low premium each month, health insurance will pay most of your medical expenses.
  • Different health insurance plans cater to different types of emergencies, like accidents, heart disease, general health, etc. Therefore, it is important to consider your family history and your lifestyle before choosing an insurance plan.
  • You can also include your immediate family in your health insurance policy.

Consider Personal Loan as a Backup Option

  • Sometimes, even the best preparation is unable to meet the demands of the situation. In such a scenario, consider taking a personal loan.
  • Check the interest rate and loan tenure and read the loan document carefully before going ahead.

During a medical emergency, you would like to focus on getting better, rather than having to worry about arranging funds. So, take the necessary steps like opening a savings account that offers high interest, and be prepared for any contingencies.

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