Category Archives: Loans

A Start-to-Finish Home Loan Tips

Posted on by
Reply

Difficulties’ pertaining with property loan is easily solved by the available option of Home loan. Borrowing a home loan helps the individual to reduce the burden from his head; it is also true that borrowing should be done with proper and right source. If you are failed to track the correct source and are not aware of the fiscal and taxation consequences in getting property loan it can soak your life and peace of your mind at every single point of time. Here are some guidelines for acquiring, taxation policy and repaying your home loan.

· Means, Mediums and borrowing capacity of an individual?

Banks, private money lenders, financial institutions, friends and relatives and also many others are the available means, or sources for grasping the loan, in this Banks plays major role in providing a Property loan. Banks have their own criteria for calculating the capacity of an individuals borrowing. Banks judge your borrowing capacity from the chart of the total income expenditure done by you in the given period of time. It depends upon the monthly income and expenses flow from your income. Bankers assume around 40% of monthly income can be utilized for paying into the monthly installment. Like, if your monthly income is about 50000, then the maximum installment amount can reach around 20000. Further, calculation for the final loan amount is also calculated on the period of loan & rate of interest associated. For eg, rate of interest at 9.5%, along with tenure of 20 years then loan of approx 22 lakhs can be availed. Here, your Liabilities are also taken into account by the banks. Henceforth it is recommended that overall expenses should not exceed 55 – 60% of your total monthly earnings to acquire a residential or commercial property loan.

To acquire property loan age factor is also considered by bankers. If an individual is 53 years of age then there are chances of not getting loan through banks whereas on other side if an individual is at 30 years of age then he can easily quote and receive the applied loan. Here age factor is considered by banks so that there should not be any existence of default payment of installments or loss to banks. As the age of 60 is the age where an individuals get retired from his service and the person with 30 years is still young at his age to easily repay his EMI and outstanding as compared to person of 53years of age.

Monthly CTC salary is also indeed important factor. Allowances and special allowances are not taken into account while lending the money. This includes commission, incentives, monthly bonus all this may reduce your eligilbity for loan to acquire since it is not fixed regular income. Home loan is also favorable for the person who is opting loan for renting the house. Individuals, who has availed the loan and given his flat on rent, can apply for the deductions without harming their HRA’s received in their gross salary under sec 24(b).

  • Joint, family, friends and Relatives loan

If an individual is running with short of funds or reserve to acquire a property and banks reduces his borrowing eligilbity he can go for a co-borrower. Banks generally accepts a co – borrower and provides loan. Some lenders are not very much OK with co – borrower as your spouse, since they think that, there can be any time disputes between the both. So the idea of making your life partner as co – borrower is a good option.

Loan managed from friends, relatives or any other financial sources also enjoys the tax benefits. This comes into effect only if the loan so acquired is for building a property, to buy property, other repairs and renovations accomplished with the property. But, claim and deductions for the loan availed from other financial institutions is not considered under sec 80C. Taxation is liable only in ready constructed properties. However, no tax deduction is followed if the loan is availed to buy an open plot of land.

  • Taxation Benefits on Property Loan

Under section 80C deductions upto1 lakh can be claimed if an individual repay housing loan. This is very much beneficiary to the person who actually pays the huge amount of installments. Not only this, deductions under sec 24(b) of 1.5 lakhs a year can also be claimed apart, from the taxable earnings of the borrower.

Tax deductions can be claimed individual if there are co – borrowers for the home loan. Individuals are eligible for the benefits as per the ratio of contribution to acquire and ownership of so called property. For instance if wife pays 30% of overall amount from her source then she is liable for the deductions as per her contributed ratio. Thus, if in a current year, principal is repaid of 1 lakh, she can claim the deductions of 30,000 following her husband to 70,000.

  • Early Repayment of loan

A controversy always clashes in minds of the borrowers whether it’s good to repay the loan amount early before the tenure period? Here I would suggest YES, because it is good to repay the loan as early as possible rather then waiting for the tenure period to get end. In current if you are paying higher rate of interest you are indirectly loosing your money and filling the pockets of the lenders. As, in practical terms if you keep waiting your tenure period to get end you are actually paying 3- 4 times of your actual borrowed principal amount from the lenders. For instance if you have borrowed a loan of 20 lakhs in this year of 2011 for 20 years and at the end of the term period which would end in 2031 you would be paying to lenders around 70 lakhs, which is actually a huge loss. Therefore, it is recommended if you have the funds available then pay the loan amount soon as possible. Repaying is easy, banks charges a reasonable fee of around 1 – 2.5% for the outstanding loan amount however, some banks also show helping hands by not charging even a penny.

The concept of Taxation should also to keep in mind if you plan to sell out your property. As short term capital gain comes into picture if you sell out the property with in the 3 years of purchasing the property. Therefore the good idea is to invest at least 60% of money into real estate properties which will help you in deductions OR even not paying the property tax.

8 Reasons Why Your Loan Might be Rejected!

Posted on by
Reply

Remember it is not a wise thing to keep applying for a loan without any rhyme or reason. If your loan application gets rejected, this is also recorded in your CIBIL record. So weigh the pros and cons before you apply for a loan simultaneously to different banks. Wait till you receive an offer before you apply to another bank. This will give you a chance to rectify errors or update your credit record in case there is an issue with it before you approach another lender.

When you apply for a loan, banks judge your ability to repay the loan on various counts including your age, income, job stability and primarily based on your credit report – which is a reflection of your true credit worth. Here are some reasons you need to watch out for and guard yourself against to obtain a loan without any hassles.

#1 Your residential address is on the defaulter list!

If you live under the same roof as someone who has slipped up on a loan payment or credit card dues and hence been reported to CIBIL, then the probability of your loan application to be rejected is likely to be high. The reason being your residential address will find a match with the one on the defaulters list.

#2 Poor track record of credit card or loan repayments

You have been accumulating credit card dues over the years resulting in a huge pending payment, which is well past the due date. Or it could be that you have slipped up on a few EMIs. In these instances, your name would have been reported to CIBIL. When a bank looks up your credit card or loan repayment track record – it would have a strong reason to reject your loan. Also, telephone bills and insurance premiums are likely to join this list, so do keep a strict vigil on all your bill and credit repayments.

#3Too many previous loans and too little income

If you are juggling too many loans already, then your income minus the ongoing credit repayments is what will be considered as your real income. If another loan is likely to cause a severe strain on this income or make it unlikely for you to be able to repay effectively, then your loan will be rejected.

#4Loan guarantor to someone who didn’t pay up!

When you sign the dotted line to be someone’s loan guarantor do exercise a lot of caution. You must make sure the applicant you are vouching for has the ability to repay the loan without hassles. Unless and until you have strong reasons to believe so, do not rush to sign for them as if they fail to repay for any reason you will be accountable to repay the loan on their behalf. In such circumstances, where you have been unable to repay their loan, you will be reported to CIBIL and this will reflect in a bad credit report.

# 5Co-applicant has a poor CIBIL record

It is important for all the loan applicants to have a good credit repayment record. If you have a clean record but your co-applicant has a credit card issue reported for instance, then your loan application may not be considered.

#6You are a compulsive impulsive job hopper

Banks place a lot of importance on job stability and certain banks even insist that an applicant needs to be employed with a particular concern for three years or more to be eligible for a home loan. Also, in instances where a reputed company’s future appears unstable, the bank can reserve its right to provide a loan to the applicant from that company.

# 7 You want a joint loan with your sister or friends

Though some banks might consider providing a joint loan to brothers who are co-applicants, banks as a rule do not provide loans to sisters or a brother and sister or friends, who wish to be co-applicants. However, you can choose to opt for your parents as co-applicants for the loan.

Here are some pointers to be prepared for your loan before you apply for it:

a. Gauge your repayment ability. Calculate your net worth and evaluate if you are ready for a loan commitment.

b. Get a copy of your credit report from CIBIL and other bureaus, where your records can be found. Analyse them and figure out if there are any concerns in the report, which needs to be addressed. For instance if you have paid all your credit card dues but this is not reflected in your CIBIL record, then you need to approach the bank in question and get proof for the repayment. You will then need to submit the proof to CIBIL and get the information updated.

c. Ensure you have back up funds to pay your EMI for a bunch of months, for emergencies like a job loss etc.

d. Make as much downpayment as possible and prepare well ahead to close the loan as quickly as you can, to continue a good repayment track record. Moreover closing off a debt when possible, will free up your resources for other uses or even for a new loan if the need arises.

What You Should Know About Your Housing Loan

Posted on by
Reply

When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.
Owning a piece of land, a house or a property is a lifetime dream for every individual. Maslow’s law of hierarchy indicates such a dream as well. Taking a home loan nowadays has become much simpler. Each year the budget regulations seem to lean towards the housing sector and construction sector in terms of generosity!
There are many home loan providers in the market to make your dream come true. However, before you opt to take a home loan, you need to consider certain factors related to the property that you are interested in buying and also understand the features offered by a home loan provider.
Choosing Your Financial Institution
When you shop for a home loan its good to research your financial institution well before opting to go with them. Remember that when you take up a housing loan, you will be dealing with the lending institution you choose on a regular basis for a long period of time.
Therefore, you should also consider factors other than just interest rates. Some of these are:
How professional is the financial institution in dealing with customers? Does it offer quality service in terms of efficiency and reliability? What are the available loan packages and which package suits you best? What are the various charges involved?
Assessing your loan repayment capacity
You should ensure that your monthly loan instalment repayment (EMI) should not be more than around 40-50% of your gross monthly household income. If you have savings or fixed deposits, they can be used to support your loan application as financial institutions may take them into account in evaluating your eligibility. Different financial institutions have different criteria in calculating the repayment capacity. In the case of a floating rate loan, you should also note that your loan tenure or (if you so choose) your monthly repayment may increase substantially when interest rates go up.
When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the loan tenure and would make any adjustment caused by the variation in interest rate by increasing or shortening the loan tenure, as the case maybe. Also, do note that the PLR will soon be replaced by the Base Rate (BR) from July 2010 onwards.
Margin of finance
It is assessed on factors such as:

  • Type of property
  • Location of property
  • Age of the borrower
  • Income of the borrower
  • Generally the margin for the borrower (down payment) will be about 15% of the property as assessed by the bank/ lending institution. For mortgage loans the lending institutions will assess the value for the property based on the Distress Sale Value this is the value of the property in case it is sold on an urgent need basis. This value can be much lower than the market value of the property.

Rights and duties of the borrower and the financial Institution
Both the borrower and the financial institution have certain rights and duties during the course of the loan repayment period. Some of these include:
RIGHTS

  • Borrower Right to have access to all information that would affect your borrowing decision Right to be treated professionally, courteously and without prejudice
  • Right to be consulted on changes to the terms and conditions of your loan
  • Right to have accurate information on a regular basis on your loan account Right to enforce legal action in the event of a breach of contract Financial Institution Right to have full relevant disclosure of information on borrower’s credit standing Right to correct and truthful information on the borrower Right to timely repayment of interest/ installments of the loan Right to enforce legal action in the event of default/breach of contract

DUTIES

  • Borrower Duty to read and understand all terms and conditions of the loan
  • Duty to observe the terms and conditions of the loan at all times
  • Duty to enquire and get clarification on all aspects of the loan to their satisfaction
  • Duty to make prompt payment on the fees, charges, interest and installment of the loan Financial Institution
  • Duty to discharge borrower’s obligations as described in the loan agreement
  • Duty to consult borrowers on any changes made to the terms and condition, fees charged and other relevant information.
  • Duty to attend to all queries made by borrower
  • Before getting a housing loan take stock of your finances and assess your loan repayment capacity. Then shop for the best offers available. You can also approach a financial counselor for optimum allocation and utilization of your money.

The Essential Concept of Payday Loans

Posted on by
Reply

Power Payday LoansYou will not ever understand which kind of situation that could occur on the very next day. Since the right selection, payday loan provide the completely new circumstance for everyone who just turn lower into personal bankruptcy. While using online loan system, anybody with a bad credit score situation could possibly get the completely new desire to improve this life and ultizing a perfect selection of easy payday loans.

The essential concept of payday loan is actually simple: analyst the person problem, give you the requirement system with simple list and supply the lent funds feature that could always represent the particular solution. Create some chances and supply motivation for everybody with a bad credit score option, almost no time to loss the precious option, payday financial loans has produced for a thing that young people need it happen and become the particular factor.

Once the finance problem comes two occasions to the same person existence, payday loan can provide the 2 occasions utilization of solution. It’ll cure the problem through the use of better finance control over payday loan feature. Now, you can feel safe, whenever the solution looks tough to solve, not to mention that. For anything about finance problem that can present you with some troubles, almost always there is an option. The best choice that created all your existence becomes a lot better than previous situation.

Covering Expenses with Pay Day Loans

Posted on by
Reply

Easy Online Payday LoanWe must admit that certain of the very popular temporary financial loans is pay day loan. This loan is really useful, specifically for employment individuals who need extra money. Generally, the money from pay day loan can be used for covering urgent expenses. It takes place since the loan takes faster process than other loan items. On top of that, pay day loan may also be applied at home or anywhere you’re with the online space.

If you’re interesting to possess supplemental income online payday loans, you just need to find the correct loan provider. You will find 1000 loan companies you’ll find on the internet. All of them promises exactly the same things, that are effectiveness, ease of access and convenient. EasyOnlinePaydayLoan.com is a title you can constantly rely. The website is really a reliable loan provider that’s been utilized by 1000′s of loan candidates. The website isn’t just giving supplemental income, but in addition to that, their existence reduces your financial problems.

If you wish to apply pay day loans in the website, you need to prepare some documents. What you need to prepare are identity card, evidence that you’re employment individual who have steady earnings and active banking account to get the money. Go into the website by clicking the hyperlink above at this time, submit the needs and obtain the cash in a few minutes.

Obtain a Loan by getting an Simpler Method

Posted on by
Reply

Personal Cash AdvanceWhen dealing with financial struggles, lots of people need to get out as rapidly as you possibly can of those situations. When someone gets financial struggles, clearly everyone knows that particular solution he may take is a technique to obtain active funding sources that might help him to escape bondage referred to as financial crisis. And together with it, you can utilize multiple sources, either as online or offline method, to have the ability to get yourself a loan in the very little time.

In the bigger perspective, payday loan or cash advance is among active financing sources you could exploit. However, we could also have an internet-based source for money advance for a similar purpose. Concurrently, taking cash loans from the 3 major loan companies that’s accessible on the internet is regarded as the reasonable option for us to accomplish, because most of them don’t burden clients with strict conditions.

Therefore, one option as borrowing money through several online sources for instance Personalcashadvance.com is regarded as the popular options that are now broadly known. You just provide checking account, include a time beyond 18 years, this will let you job, then within 24 several hours, you’ll get some good money you will need.

Personal Loan Rates in India

Posted on by
Reply

Personal Loans are unsecured loans that are taken for personal use for which no requirement of any security or guarantee as well as it can be taken for any reason, like wedding expenditure, vacation or acquiring consumer durables. The personal loan is very useful & takes care of all needs and wants. The sum of loan can start from Rs. 50,000 – Rs. 20 lakh & the term for reimbursing the loan ranges from 1 to 5 years.

Benefits of Personal loan

1. Personal Loan is an unsecured loan where one is not required to vow a house or other security to acquire a loan.

2. Personal Loan can be checked with negligible formalities or credentials and is less time consuming to acquire.

3 Personal Loan helps to get bigger loan requirement done, as a person can take a loan ranging from Rs. 50,000 to Rs. 20 lakh without much paperwork.

The major reason for the assessment is the status as to a person is working for an employer that is salaried or a person is an employer himself that is self employed. The features that decide the Personal Loan interest rates are as follows:

•Income of the person

•Person’s Company Status

• Individual’s Credit and Payment history.

• Individual’s relationship with the bank the loan is to be taken from.

• Individual’s bargaining capacity.

Some of the Personal Loan interest rates are discussed below:

  1. Fullerton India Personal Loan
    Interest rate – 19-24
    EMI – 14950.1
    Prepayment Charges – Nil
    Repayment Period – 1-4
    Personal Loan Amount – 100,000-1,000,000
  2. Reliance Personal Loan
    Interest rate – 16-23
    EMI – 14170.1
    Prepayment Charges – 6
    Repayment Period – 1-4
    Personal Loan Amount Available – 200,000-1,500,000
  3. HDFC Personal Loan
    Interest rate – 15.5-22
    EMI – 14042.4
    Prepayment Charges – 4
    Repayment Period – 1-5
    Personal Loan Amount Available – 50,000-1,500,000
  4. Citi Financial Personal Loan
    Interest rate – 16-21
    EMI – 14170.1
    Prepayment Charges – 4
    Repayment Period – 1-5
    Personal Loan Amount Available – 10,000-1,000,000
  5. Citi Bank Personal Loan
    Interest rate – 15-20
    EMI – 13915.4
    Prepayment Charges – 5
    Repayment Period – 1-5
    Personal Loan Amount Available – 24,000-1,000,000
  6. SBI Personal Loan
    Interest rate – 16-20
    EMI – 14170.1
    Prepayment Charges – 0
    Repayment Period – 1-4
    Personal Loan Amount Available – 24,000-1,000,000
  7. Axis Bank Personal Loan
    Interest rate – 14-28
    EMI – 13663.2
    Prepayment Charges – 0
    Repayment Period – 1-5
    Personal Loan Amount Available – 1 Lakh to 20 Lakhs
  8. Bank of Baroda Personal Loan
    Interest rate – 16
    EMI – 14170.1
    Prepayment Charges – 0
    Repayment Period – 1-3
    Personal Loan Amount Available – 20,000-200,000
  9. Canara Bank Personal Loan
    Interest rate – 14
    EMI – 13663.2
    Prepayment Charges – 2
    Repayment Period – 1-5
    Personal Loan Amount Available – Rs. 1 Lakh
  10. Corporation Bank Personal Loan
    Interest rate – 13.5-14.5
    EMI – 13538.2
    Prepayment Charges – 0
    Repayment Period – 1-5
    Personal Loan Amount Available – Rs. 2 Lakhs
  11. ICICI Bank Personal Loan
    Interest rate – 14-18
    EMI – 13663.2
    Prepayment Charges – 5
    Repayment Period – 1-4
    Personal Loan Amount Available – Rs. 10 Lakhs
  12. IDBI Bank Personal Loan
    Interest rate – 13-16
    EMI – 13413.7
    Prepayment Charges – Up to 6
    Repayment Period – 1-5
    Personal Loan Amount Available – Rs. 10 Lakhs
  13. Indian Bank Personal Loan
    Interest rate – 12.9 up to 20 Lakhs
    EMI – 13388.9
    Prepayment Charges – 2
    Repayment Period – 1-3
    Personal Loan Amount Available – Rs. 60000-Rs 1 Lakh
  14. Standard Chartered Bank Personal Loan
    Interest rate – 15.5-22
    EMI – 14042.4
    Prepayment Charges – 5
    Repayment Period – 1-5
    Personal Loan Amount Available – Rs. 50,000-Rs 30 Lakhs
  15. Bank of India Personal Loan
    Interest rate – 10.75-12.75
    EMI – 12862.1
    Repayment Period – 1-5
    Personal Loan Amount Available – 10,000-10 Lakhs
  16. UCO Bank Personal Loan
    Interest rate – 14.90
    EMI – 13890
    Prepayment Charges – 0
    Repayment Period – 1-4
    Personal Loan Amount Available – Rs. 2 Lakhs
  17. Saraswat Bank Personal Loan
    Interest rate – 13
    EMI – 13413.7
    Prepayment Charges – 0
    Repayment Period – 1-5
    Personal Loan Amount Available – 5 Lakhs

All the above given rates can be compared on policybazaar.com.

Loan Calculator

Posted on by
Reply

A loan calculator is basically a tool used to figure out monthly payments of a loan. It demands certain inputs with the help of which it will provide you down payment details, the amount that you need to finance, and the monthly finance payment. A loan calculator is of various types depending on the nature of your loan such as a home loan calculator, car loan calculator, mortgage payment calculator, etc. You can find a loan calculator on various websites for free.

Loan EMI Calculator:

This calculator is basically used to calculate the EMI on your loan, total interest payable over the loan, and loan amortization table. The fields which it requires are: loan amount, loan period, interest rate, and processing fee. Once you enter these details in specific areas, the calculator will calculate the EMI that you need to pay to the bank or the lender for the entire loan period. Calculate your home loan EMI, car loan EMI, and personal loan EMI with this calculator.

Home Loan Refinance Calculator:

This calculator will give you a clear idea if you can transfer your home loan to save your money. The information that it needs is the outstanding loan amount, current EMI, number of EMIs remaining, and prepayment fee. Just fill in these details and click on the OK button. You will get the result within seconds.

Loan Repayment Calculator:

This calculator gives you the time you will take to pay off your loan amount completely with a fixed interest rate and monthly payment. Whether you have taken a loan for your personal use, home or car, you just need to fill in the required details, and the result will be out within seconds. The information required by this calculator to measure your loan period are outstanding loan amount, interest rate, and EMI.

Needless to say these calculators are ultimate as it helps to forecast the most essential things you need to know while applying for a loan. With the help of these loan calculators, you can get an estimate of your EMIs, time period to pay off a loan, and down payment. It’s too tough to choose a right loan scheme due to the high competitiveness spreading in the market. The market is flooded with numerous loan schemes and banks. This tool can help you choose the better among the goods. A loan calculator is a complete solution for all your loan related queries. It is so user friendly that it can be used by anyone and without any guidance.

Advantage of Car Loan Calculator: A web-based car loan calculator will work out various options that has to be suitable for you and also depending on these calculations you are able to decide the amount of loan that you desire to take and also the period of time that you can need to go ahead and take loan.

Advantage of Home Loan Calculator: A home loan calculator help investors to monitor and calculate the value of the home loans and help saving home loan investors immensely either in a crisis or to sell the home loans at a profit.

Among another benefits one great benefit of using a loan calculator is that it saves time as you need not to visit various banks to gather information about their loan schemes. 24×7 availability of this tool gives freedom to access it whenever required.

Finding Pay Day Loans Instantly and Securely

Posted on by
Reply

Easy Online Payday LoanFinding pay day loans instantly and securely becomes people’s option to get cash money around they require easily. Nowadays, individuals are facing modern times with everything else is performed on the internet and instantly to be able to not waste time in acquiring the very best and valuable pay day loans. To obtain instant pay day loans now’s simple enough. You will find a lot of companies that provide this type of loan lending.

If you wish to get instant and safe pay day loan transaction, you need to be aware within the steps you need to take. Although it is easy any longer, it’s really a danger if you’re not aware on making plans. You may be the victim of online fraud because the worst threat. Otherwise, you don’t need to fret; by using the best instruction around the online application for the loan from reliable web company you’ll have the instant and safe financial loans.

Furthermore, you have to’t be blinded because you will get payday loans so quick. You need to be careful and possess to make certain the web for online loan you select isn’t a fake. Locating the instant and safe loan isn’t just inside your dream. Go and find out the reality.