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Finance

How Can I Save Money for My Child’s Future?

Saving money is important for creating a corpus. Therefore, parents try to save money to accumulate wealth as it can help them secure their child’s future.

If you want to know how to save money for your child’s future, then read this article.

Securing a child’s future is one of the most important responsibilities of parents. Therefore, a good financial plan is important. Savings are a crucial factor while creating a financial plan. It can help parents pay for the expenses that may arise in their child’s future.

Things to Keep in Mind While Making a Financial Plan

Estimate the Child’s Future Expenses

One of the first steps that parents should take is estimating the future expenses of their child. A financial plan should be created based on the expenses that might occur.

Consider Investments

While saving money is important, investing money is also critical. This is because investments can help parents earn significant returns. There are various investment options like unit-linked insurance plans (ULIPs), child savings plans, child insurance plans, etc.

Let’s take a look at the benefits of investing money in such plans-

  • It Can Help in Paying for Education Expenses

Every parent wants to provide their children with good education. However, as education costs are rising every year, it can be difficult for parents to pay for such expenses. But a child plan can provide financial assistance to parents in order to meet the education costs.

  • It Can Help Build a Corpus for the Child’s Future

Child plans can allow parents to accumulate substantial funds. Therefore, parents can build a corpus that enables them to secure their child’s future needs.

  • It Can Provide Life Cover

Child plans offer life cover to the policyholder’s child. In case the policyholder passes away during the tenure, then his/her child can get a sum assured that can help him/her meet future expenses.

  • It Can Offer Waiver of Premium

A lot of chid plans offer waiver of premium feature. This feature is offered in case the policyholder dies during the term of the policy. If the policyholder passes away, then the remaining premiums are paid by the insurer until the end of the tenure. Therefore, the child can receive the money after the policy matures.

  • It Provides Investment Options

There are various child plans that allow policyholders to make investments in different funds, such as equity and debt funds, in order to earn high returns. For example, if a parent chooses a child investment plan in a ULIP, then a part of the premium goes for life cover, and the other part is invested in the units of a fund. Therefore, such a plan can offer the benefit of life cover as well as provide good returns.

How To Choose the Right Plan?

It is important to select the right plan as it can help parents achieve their goals. When parents estimate their child’s future needs, they will be able to select the right policy term. Therefore, based on the term, they can search from a variety of plans. They need to compare them. Thus, it can become easy for them to choose a plan that can help them meet their objectives.

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Finance

A Guide for Home Loan Subsidy Under PMAY

Since the PMAY initiative was launched in 2015 several thousands of home applicants have availed the subsidy benefits. If you are looking to apply for a loan soon, the following tips will guide you through the application process.

The PMAY or Pradhan Mantri Awas Yojana is an affordable housing scheme launched by the government of India in 2015. Under the scheme, the government aims to accomplish its ‘Housing for All’ mission and build more than two crore affordable housing units across several cities and rural locations in India. The primary objective of this mission is to eliminate the slums and provide every Indian citizen a permanent housing unit and improve their standard of living.

Another critical aspect of the Pradhan Mantri Awas Yojanascheme is the Credit-Linked Subsidy Scheme or CLSS. Under this scheme, the government aims to provide financial aid to the aspiring home buyers, in the form of a subsidy on home loan interest and encourage them to become homeowners. To ensure that all citizens get maximum benefit from the CLSS, the government has fixed the subsidy rate based on the income group they belong to.

If you are applying for a home loan, you must oblige with several procedures. Similarly, applying for PMAY benefits requires you to follow certain procedures. There are two ways to apply for PMAY benefits – online and offline. And, each method requires you to follow specific steps, which are discussed below:

Offline Application

1.If you are not comfortable applying for the PMAY benefits online, you can visit any of the authorised lender’s offices of your choice and fill the loan application form. You must submit the form along with the relevant KYC documents (as mentioned in the application form) and submit proof of your credit rating.

2.After you complete the initial formalities, the lender will verify the details of your application and sanction your loan.

3.Once your loan is approved, you must ask the lender to provide you the PMAY form and submit the same along with the loan details at any of the nodal offices or to the authorised bank for further process.

4.Choose the right property that you wish to buy and register for the scheme

5.Once your PMAY application is verified, the government will sanction the subsidy and forward the amount to the lender who will then credit the same to your loan account. After you receive the amount, the lender will adjust the EMI.

Online Application

Applying for the PMAY benefits online is much easier than the offline process. Besides, the online process involves less paperwork and you can apply for the benefit from the comfort of your home. For online application, follow the below steps:

1.Visit the PMAY website –www.pmayis.gov.in

2.Select the ‘citizen assessment’ option from the menu and apply under the relevant category. There are two options – ‘slum dweller’ and ‘benefit under other 3 components.’

3.A new screen will appear that will prompt you to enter the 12-digit Aadhaar number and name. Enter the details exactly as mentioned on the card.

4.Next, you will be redirected to the PMAY scheme application page.

5.You must enter details like name, address, bank account, income, etc. The income you mention will determine your eligibility for the subsidy under the relevant income category.

6.After you fill in the details, review the same for any errors before submitting the application.

7.A new window will appear with information you provide. If all the details are correct, click on the ‘I am aware of’ button at the bottom of the page.

8.The system will not generate an application number. Keep this number handy for future reference and to check your application status.

9.Submit the form to any of the authorised lenders of your choice along with the necessary documents. Make sure to keep photocopies of the documents for future reference.

Final Word

Whether you apply for the PMAY benefits online or offline, take advantage of the subsidy and reduce your financial burden on repayment of the home loan.

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