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#1 25th March 2008, 04:48 PM Join Date: Feb 2008 Location: Chennai Posts: 319 Rep Power: 6

muralisankars
Regular Member

Cheque vs Demand Draft

Hi, What is the difference b/w Cheque and Demad Draft? Both are used for transfer the amount b/w two accounts of same or different Bank.... what are all the advantages of Demand draft over Cheque? Is it possible to get a demand draft from one place and using it in other place without any charge? Thanks in Advance
Last edited by muralisankars : 25th March 2008 at 04:51 PM.

#2 25th March 2008, 05:00 PM Join Date: Dec 2007 Location: Mumbai Posts: 81 Rep Power: 4

guru-dhiru
Member

Please find my answers in bold

Quote:

Originally Posted by muralisankars Hi, What is the difference b/w Cheque and Demad Draft? Cheque is written by an individual and Demand draft is issued by a bank. People believe banks more than individuals Both are used for transfer the amount b/w two accounts of same or different Bank.... same or different banks. Demand draft's are city specific. what are all the advantages of Demand draft over Cheque? You can 100% trust in a DD. It is a banker's check. A check may be dishonoured for lack of funds a DD can not. Is it possible to get a demand draft from one place and using it in other place without any charge? when you issue a DD,you have to mention the city in which it would be deposited. Thanks & Regards, Murali Sankar S

#3 25th March 2008, 05:23 PM Join Date: Jul 2007 Location: Indore, MP, INDIA Posts: 359 Rep Power: 13

ashish_jain11
Regular Member

Cheque and Demand-Draft both are used for Transfer of money. Cheque Cheque is a negotiable instrument instructing a Bank to pay a specific amount from a specified account held in the maker/depositor's name with that Bank. Demand Draft (DD)A demand draft is an instrument used for effecting transfer of money. It is a Negotiable Instrument. To buy a "DD" from a Bank, you are required to fill an application form which asks the following information :

Name of the recipient Amount to be transferred Place where the transferred money is to be paid Mode in which you will pay money to the Bank i.e. in cash or by debit to your

account The application form along with the cheque on your account or cash is deposited with the counter clerk who gives you a Demand Draft (which looks like a cheque) for the amount.
accepting payment through DD is more safer than accepting payment through cheque because Cheque may dishoner in case of in-sufficiant balance in drawer's account while DD is pre-paid.

Banks charge commission for issuing of DD and it vary according to status of a/c holder. They even issue DD free of cost to thier prestigious customers.
#4 25th March 2008, 05:38 PM Join Date: Feb 2008 Location: Chennai Posts: 319 Rep Power: 6

muralisankars
Regular Member

Thanks guru and ashish, I am having the DD which is Payable at Hyd. My Account is also in Hyd. But Now I am in Chennai. In the above Situation Can I able to deposit the DD to my SB Account at Chennai?
#5 26th March 2008, 10:40 AM Join Date: Jul 2007 Location: Indore, MP, INDIA Posts: 359 Rep Power: 13

ashish_jain11
Regular Member

If your bank is CBS (Centralized Banking System) you can deposit cheque/DD in Chennai. Now if this line is mentioned on the DD: "payable at par at all branches" then it would be treated as local cheque/DD for Chennai, but if it is payable at Hydrabad and you still deposit in Chennai then it would be treated as out-station cheque and collection charges will be charged by your bank.

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An important difference between the two is that a draft can be issued only when the amount of the draft is submitted to the bank. Whereas a cheque can be issued irrespective of whether there is balance in the issuer's account or not. Incase there is no balance in the issuer's account at the time when the cheque is presented to the bank for encashment, the cheque will get bounced.
------------------------------------------------------------------------------------------------------------------------------------------------------------What Does Debit Card Mean?
An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account. Read more: http://www.investopedia.com/terms/d/debitcard.asp#ixzz1aa1c8o00

The main difference is the way the card works and where the money comes from. Debit cards can be used as either a debit card or credit card. Credit cards can only be used as a credit card. Debit cards do not carry a line of credit. The purchases made with a debit card can not exceed the amount of money a person has in their bank account. This is the main difference between a credit and debit card. Another major difference between credit and debit cards is the risk involved. Because they are attached to a bank account, loosing a debit card is very risky. A person does not need a pin number to use a debit card and therefore can easily drain a persons bank account, causing extreme problems. With a credit card the only problem is proving that someone else used the card. With a debit card the persons has to figure out how to get their money back and if any checks bounced they are responsible for those as well. The legal liability is much greater with a debit card than with a credit card. Go to : http://www.credit-card-gallery.com/ and get a best credit card according your credit.

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similar to prepaid paid and post paid sim cards. Debit card = Prepaid You can utilize for the amount that is present in your bank account. Once your balance crosses zero, You can not use it, again you have to fill your account. Credet card = Postpaid You can have either have the amount already in your account or you can deposit amount later but it has to be done within a specific period. Your credit card can be used for internet transactions but not debit cards.
-----------------------------------------------------------------------------------------------------------------------------------------------What Does Real Time Gross Settlement - RTGS Mean?
The continuous settlement of payments on an individual order basis without netting debits with credits across the books of a central bank.

Investopedia explains Real Time Gross Settlement - RTGS Basically, this is a system for large-value interbank funds transfers. This system lessens settlement risk because interbank settlement happens throughout the day, rather than just at the end of the day.

Read more: http://www.investopedia.com/terms/r/rtgs.asp#ixzz1afvbsuTs

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Real

Time Gross Settlement (RTGS)

What is RTGS System? The acronym RTGS stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank branch to another bank branch on a real time and on gross basis. This is the fastest possible money transfer system through the banking channel. Settlement takes place in real time which means payment transaction is not queued or staggered subjecting the transaction for any waiting period. The transactions are settled as soon as they are

processed. Gross Settlement means the transaction is settled on one to one basis without bunching with any other transaction. Considering that the money transfer actually takes place in the Books/System of Reserve Bank of India, the payment is taken as final and irrevocable. Hence the said product is aptly named as Corp Bullet in our Bank. How RTGS is different from National Electronics Funds Transfer System (NEFT)? NEFT is also an Electronic Fund Transfer System that operates on a Deferred Net Settlement (DNS) basis which settles transactions in predefined batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that stipulated time. For example, NEFT settlement takes place 6 times a day during the week days (9.30 am, 10.30 am, 12.00 noon, 1.00 pm, 3.00 pm and 4.00 pm) and 3 times during Saturdays (9.30 am, 10.30 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours (9.00 am to 4.30 pm on week days and 9.00 am to 12.00 noon on Saturday for customer payment transactions (CP). And 9.00 am to 6.00 pm on weekdays and 9.00 am to 12.00 noon on Saturday for inter bank payments (IP). Is there any minimum / maximum amount stipulation for RTGS transactions? The RTGS system is primarily for large value transactions. Initially there were no restrictions on the amount to be transferred through RTGS system, only to popularize the aforesaid payment mechanism. Effective from 01.01.2007 the minimum amount to be remitted through RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for EFT or NEFT transactions. While remittances of less than 1 lakh has to be invariably made through EFT or NEFT, the remitter can chose the product for any money transfers beyond Rs.1 lakh and above. What is the time taken for effecting funds transfer from one account to another under RTGS? Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiarys account with in 2 hours of receiving the fund transfer message. The RBI may impose penalty in case of delay, if any. ================================================================== ================================================================== ========== home loan loan ========================================================= In
case you have been planning to buy your dream home for very long and you are unable to do that because of the rising prices everywhere, here is some help for you. You can take a loan that will help you to buy your dream home. All you have to do is to save enough money to make the down

payment of your home that is 20% of the home value. The remaining 80% of the home can be taken as a loan from a bank depending upon how much loan you are eligible for. The bank will decide how much loan you are eligible for depending upon your income and various other parameters. This home loan can be repaid to the bank every month as equated monthly installments or more popularly know as EMI over the entire tenure of the loan. A part of this EMI goes towards repaying the principal component of the loan and the other part goes towards paying the interest. The EMI is calculated on a reducing balance basis. A reducing balance home loan means that in the initial days of the loan, the interest component of the EMI is high as the loan amount is high. But gradually, when the principal amount starts becoming lesser and lesser as you keep on paying it through EMI, the interest component of the EMI goes down and the principal component increases. Also, while you are going to take a home you need to decide, the type of interest rate you want to pay to the bank. The banks will offer you with an option of a fixed rate or a floating rate. A fixed interest rate for your home loan means that the interest rate is fixed for the entire tenure of the loan. But these days, most of these fixed interest rates come with a reset clause where the bank has an option to change the interest rate after a fixed period of time generally in a range of 3 to 5 years. There are also a few banks that give you a fixed interest rate for the entire term of the loan. The other type is the floating interest rate home loan where, the rates will depend on the base rate of the bank. As and when the bank will change their base rate, the interest rate will change for the customers. The change can either be in terms of EMI or tenure. For example, if the bank increases their base rate, the EMI will increase if the customer chooses the option to increase the EMI. Or in case the bank decides to decrease their base rate then the EMI will reduce for the customer. Generally the floating interest rates are cheaper compared to the fixed rates. Looking at the interest rate scenario, this is quite an appropriate time to buy the home you were always looking to buy. The interest rates are on a rising trend thus in case you can manage to get a home loan right now, you can expect to get a better interest compared to what you will get a few months down the line. In case you have already bought a property and you are paying a very high interest rate, then you should consider shifting your existing loan from existing home loan lender to a new home loan lender. This will decrease the monthly EMI you are paying towards your loan and will save money for you. You should consider shifting from the old BPLR system where the interest rate changes according to BPLR to the new base rate system. The base rate system is more transparent than the BPLR system. Thus the effort you put behind converting youre your old home from the BPLR to the base rate system will be worth devoting. Also you should act now as the interest rates are increasing and you may miss the bus in case you wait for any longer.

Home Loan: Eligibility

Home loan eligibility depends up on various factors. A few of them are listed below -

Income - Your income determines the amount of loan you are eligible for. Banks generally keep the EMI to income ratio at 0.45 to 0.50. Tenure of the loan - The longer tenure you opt for, the more loan you are eligible for. Interest rate offered - If your interest rates are on a lower side, then the loan eligiblity will be higer and vice versa. Existing loans - In case you have any existing loans, then the loan eligiblity amount will come down to keep the EMI to income ratio around 0.50.
Icici Bank Car Loan

Features: ICICI Bank offer loans up to 90% of the ex-showroom price of the car for new car. The minimum loan amount for taking a new car loan is Rs. 1,00,000. The maximum loan amount depend upon the price of the car, model variant, profile of the customer, etc. Processing Fees: upto Rs 2.5 lakh: Rs 2500, above Rs 2.5 lakh- Rs 5 lakh: Rs 3100, above Rs 5 lakh- Rs 10 lakh: Rs 4000, above Rs 10 lakh: 5000 Prepayment Charges: 5% on principal amount prepaid. Down-payment: 10% Max Tenure: 4

The lender will consider all these factors along with your credit history to determine how much loan you will be eligible for. Read More >

===================================================================== ===================================================================== ======================================Gold Loan Queries.

2. Loan against gold has gained immense popularity in the recent times. What makes it score over other sources of funding? What is typically the rate of interest on a gold loan? Gold loans - quick (within a few hours to a maximum of one day), easy local availability at a local branch near you, available irrespective of credit history and best of all at reasonable rates of interest especially if the amount borrowed does not exceed 50-60% of the market value of the jewelry. Also repayment can be structured as just interest amount with principal being repaid at the end of the period in one lump sum. Thus regular payments can be smaller than what an EMI would be for the same period. For example if you took a interest only loan of Rs. 2 lakhs for 2 years at 12% your monthly payment will be Rs. 2000/- for 2 years but you will need to repay the loan with a lump sum payment of Rs. 2 lakhs at the end fo 2 years whereas the EMI for a 2 year loan at the same interest rate would be around Rs. 9400 (of course the loan is repaid at the end of 24 installments so there is no lump sum payment at the end of 24 months).

3. What are the different ways in which a loan can be secured by pledging gold? Which is the best option among them and why? If the need for speed is not paramount (i.e. you can wait for a day or two) you should look at private sector and public sector banks which provide these loans at a more reasonable rates of interest . Also if you can restrict your loan amount to around 50% of the market value of the jewelry than the interest rates are most reasonable. The process is fairly streamlined with the jewelry assessor sitting

in the lenders branch itself or available very near the branch where it is valued and then your jewelry is sealed in a pouch in your presence.

Additional Input 4) Typically jewelry is an item of personal use and its emotional value is sometime far higher than its market value. If for any reason you are unable to pay pack the loan the lender can sell your jewelry in the market to recover its dues after which you can never get your jewelry back.

Harsh Roongta is CEO, Apnapaisa.com, a price & features comparison engine for loans, insurance and investments.

apnaloan.com/gold-loan-india/comparison.html">Compare Gold Loan rates on Apnapaisa

===================================================================== ===================================================================== ===================================================================== =================================================Overview

Personal loans are loans provided without any security. Before you hurry to take this magical loan pause a bit. Personal loans are tricky they are far more expensive than a loan given against security. They also require that you have a good credit report and that you can prove that you have a regular income of at least Rs. 3 lakhs per annum. You may be eligible for a personal loan even below this income level but the interest rate is likely to be very high. These loans are likely to be more reasonably priced if you work for a top notch corporate and have large provable income in double digit lakhs per annum. A better and more convenient option is to take a gold loan. You need to provide jewellery as security but the loan is significantly cheaper (and quick as well since it is available across the counter or in a matter of hours) and your age and repayment history will not matter. If you have no jewellery you can look at getting a loan against your financial securities such as shares, bonds, life insurance policies with high surrender values, mutual fund units, etc. But a personal loan is in any case better than borrowing on a credit card which is extremely expensive. Compare personal loan offers from various lenders across the country right from interest rates to aspects of loans such as repayment options, charges applicable, documentation required here on Apnapaisa.com.

Personal Loan EMI Calculator

Looking for personal loan to buy your favorite laptop or enchanting LCD TV or want to change the furnishings of your house? But do not know how it will impact your monthly budget? How much amount you will need to pay as EMI? An equated monthly installment (EMI) is what you pay every month towards repayment of your loan. With the ApnaPaisa Personal Loan EMI Calculator, you can make a truly informed decision on how much that loan is going to cost you each month. Conversely, you can also determine what budget to set for your purchase. For example, if you are willing to pay an EMI of only Rs. 5,000 each month and say your bank quotes an interest rate of 14.5% for a 5 year unsecured Personal Loan. This calculator will tell you that you can easily borrow Rs. 2,10,000. So what are you waiting for? Visit the EMI Calculator page on our site, key in the loan amount, the tenure and the interest rate - and find out just how much EMI you will have to pay.

===================================================================== ===================================================================== ======================================Personal Loan : Eligibility

Personal loans are provided by various banks and non banking financial companies (NBFCs). There are various factors which effect the your personal loan eligibility. Below mentioned are some of the few factors which the bank or the NBFC will consider while they decide on your personal loan eligibility.

Financial Background This is the most important parameter that determines if you are eligible for a personal loan and also the quantum of personal loan you are eligible for. It will help the bank understand how well you can pay back your loan. Every bank will have a minimum level of income to be eligible for a personal loan.

Credit History This will help the bank ascertain your track record for payment of EMI of any loan or the payment of the credit card bills. In case you have paid all your previous EMIs and credit card bills on time, chances of your getting the loan is higher.

Company in which you are employed Personal loan eligibility may depend upon the company you are working for. In case your company is a public ltd or among the A class companies, which the banks call them as, the chances of you getting a loan becomes very easy. If you are working for a B class company, then getting a personal loan may be difficult for you or it maybe costlier also compared to a person who is working in an A class company. Which means that if you are working for a company which belongs to the A class according to the bank, then the personal loan rate would be comparatively lower to a person who belongs to a B class company.

Any other loans you may be holding In case you are having any other loan at the given point of time, then your eligibility for personal loan may go down as you are already paying towards EMI of

the previous loan and the income in your hand would be lower compared to a case where you are not paying any EMI
========================================================= ========================================================= ========================================================= =======Every fancy your son attending the Harvard business school? Or, you, young lady, want

to fly an aircraft? Perhaps, you have the admission letter from your dream university across seven seas; you now only need the dough...

If the obstacle is cash, an education loan is the answer. The icing on this cake is that such education loans not only cover the cost of the tuition fee but also almost all the expenses involved in the pursuit of academics. You just need a set of eminently gettable documents and a guarantor to set yourself on the road to academia.

===================================================================== ===================================================================== ======================================Loan Against Property (LAP): Interest Rates: Overview

Loan against property is a cheaper loan option as compared to other loan option in the market, whether it is a personal loan or a loan against security such as shares, jewellery. Come to think of it, even on the face of it-you see your house as an investment. So, first-take a loan to buy a house and then take a loan against it a few years later to meet your other needs. Read More >

versus
Loan against property versus loan against securities There are many differences and similarities between Loan Against Property and Loan Against Security. ...... Loan against Property or Home Loan Should you opt for a loan against property or home loan ...... How is LAP different from PL? There are distinct differences between a LAP and a personal loan. Read on to find out more. ...... Read More >

LAP: Process
Loan against property: Process There are severtal steps in a loan against property process. It is important that title ddeds are in place. ......

Secure a loan with your property Unlike other loans which are taken for specific purposes, such as home loan or auto loans-these loans can be taken for any purpose. ...... Read More > =====================================================================================
Single Scrip Lending - up to 50% of the value with any Depository Participant. (please contact us to know the drawing power of the scrips) Click here to know more. Minimum loan amount: Rs. 2,00,000/Pay interest only on the amount outstanding and only for the time you use it. Interest is calculated on the daily outstanding balance and debited to your account every month end. "With effect from 1st Jan 2011, the interest rates in Loan Against Securities (LAS) A/cs are linked to Base Rate.Any movement in Base Rate of the Bank would have a similar impact on the Rate of Interest in LAS A/c" Shares can be pledged from any Depository (NSDL or CDSL) and any Depository Participant across the country Loan available to NRIs against Shares, Mutual Funds(equity,Debt,FMPs), Insurance Policies,NSC,KVP To receive the overdraft amount, a Current Account with an overdraft limit is created in your name. This entitles you to all the Current Account benefits like FREE International Debit Card, FREE PhoneBanking, FREE NetBanking ======================================================================= ======================================================================= ============================== Loan Against Shares and Securities

Loan Against Securities (LAS) is getting instant liquidity from your investment without selling them. All you have to do is pledge your securities in favour of Motilal Oswal Financial Services Limited (MOFSL). This enables you to enjoy all corporate benefits accrued on your securities and still avail loan against them. No EMI or prepayment charges applicable. Interest will be charged only on the actual amount and that too for the time it is utilized.

==

loan against shares

We at MOFSL understand your needs and help you meet your liquidity requirements. As an Individual or Corporates, you can avail LAS in 3 simple steps: Open a Trading and Demat account with Trading Member and Depository Participant. Sign Master Loan Agreement with MOFSL. Open Bank Account with a designated bank.

Borrowing limit based on your Financials

10 times of latest Income Tax Return. One time of your net worth as certified by a CA.

Understanding your investing eligibility and funds available can get complicated, so we at MOFSL will calculate your eligibility for you. This information can be accessed any time through your separate web login. Benefits of LAS with MOFSL Exhaustive list of approved securities. Loan go up to 75% of securities amount. Pay interest only on the amount outstanding and only for the time used. Interest is calculated on the daily outstanding balance and debited to your account at the end of every month. Can also be availed against open ended mutual fund schemes. Enjoy all corporate benefits like bonus, dividends etc accrued on your securities

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