Monday, March 11, 2013

Home Loan Tips – How To Improve Eligibility

The past few months have witnessed tremendous rise in home loan interest rate caused by reasons like increasing demand in residential properties in India. No doubt, with such mounting interest rate, the home loan eligibility has been affected to a larger extent. Consequently, the trend has forced prospective loan borrowers to re-examine their options so as to acquire new eligibility criteria for home loan or housing finance in India.

Repayment duration or tenure of a housing finance is a way to judge eligibility criteria. For this, if you avail a loan at maximum tenure level, your possible premium outgo will be decreased to a greater extent. For instance, if a monthly income of a salaried individual is around Rs 60000 and his expenditure is around Rs 35000, then his eligibility will be calculated on the basis of Rs 60000-Rs 35000 = Rs 25000. On this very saving of Rs 25000, his home loan eligibility is determined. Undoubtedly, the more income and less expenditure, the better chance is to improve your eligibility. And the very amount of saving will be used to repay the loan borrowed.

As said before, the tenure of a home loan is determining factor to improve your eligibility. For instance, suppose you are taking home loan of Rs 1 lac at 12.5% interest rate in 15 yrs of repayment duration. In that case, your possible emi will be Rs 1232.5. According to the data, your possible eligibility for the housing finance will be Rs 20.3 lacs. Now, as a borrower, you can improve eligibility factor upto Rs 2 lacs, if you opt for housing finance at extended tenure of 20 yrs with same rate of interest and loan amount. On the calculation, your calculated emi will be around Rs 1136. This way, your eligibility becomes upto Rs 22 lacs.

One of the other ways to improve your eligibility for proposed housing finance is to never go for any offer that seems attractive, on the face of it. There is no dearth of lenders who offer housing finance at maximum repayment duration of 20 yrs. As a borrower, you should go for the loan only after meticulously searching and researching the market trend in order to get to know what other lenders offer on their projected housing finance.

Remember that interest rate is one of the crucial factors that affect your eligibility on housing loan. Interest rates like floating and fixed are available on the housing loan. You have to weigh your option wisely as either of the loans will affect your premium accordingly.
 

It is quite a good idea to comply with home loan eligibility criteria of a bank. This is to ensure you don’t experience any hassle to acquire your preferred home loan. There are many ways by which you can improve your home loan eligibility.
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Wednesday, March 6, 2013

What If You Don’t Pay Credit Card Debts?

What if you don’t pay your credit card debts? Will it incriminate you as a criminal to serve a jail term? There are a lot of such questions which might fret you a lot. But don’t worry. Here are the answers that may possibly lend you great help in this respect.

What If The Credit Card Debts Are Not Paid?

If you have defaulted on credit card, your bank will flag you as delinquent card member. Usually the bank issues a reminder notice to such member to pay off the debt as soon as possible.
If you continue with non-payment even though receiving so many persistent reminders from your bank, it will then turn over your account to a collection agency (an intermediary business partner that buys defaulter’s account). 

The collection agency will try to persuade you to pay off the debts. The collection amount is usually considered “profit” for such agencies as they get commission on the recovered debts.

Why Banks Sell Defaulter’s Account To Collection Agency?

To minimize the loss and avoid costs (legal and otherwise), the banks resort to collection agency and sell them defaulter’s accounts. Moreover, the banks are not legally privileged to intrude defaulter’s savings account to pay for the debts. A formal declaration from the court of law is essential to do that. This will cost banks a fortune. As a result they have to take over the account to collection agency to avoid such hassles.

What If Collective Agency Buys Your Account?

As we discussed before, when collective agency buys your delinquent account, it will try to convince you pay back the debts.

There are also some horror stories claiming that collection agencies used threats and menacing advances against the defaulters to recover debts. But they are just rumors and so will cause you no harms at all. Better stay calm and don’t get scared. 

Possibility Of Jail Term?

Frankly speaking, nobody, who defaulted on payment of credit card debts, ever served jail terms. This is because incurring debt is not termed “criminal offence” under any legal act or statutory section. It is basically assumed that you are not able to pay off your debts because of certain reasons.
However, if you have signed a contract or issued a cheque which failed or bounced, you will then be incriminated as Estafa according to the law under such circumstances. That’s why; the collection agency will try all possible ways to persuade you sign up a payment agreement or issue cheque to disburse the debts. In case the cheque is bounced or the agreement is breached, the collection agency will have legal right to sue you in the court of law for non-repayment of the debts.

What About Credit History?

No doubt, long term default on payment of the credit card debts will damage your credit history. In turn, it will be very difficult to take fresh loan from a bank in future. If you are planning to buy a new house or a car in future, better forget borrowing loan from a bank and start saving money on your own. 

In conclusion, there are ways to resolve outstanding debts on credit card. Have patience and consider options that can help you sort out this issue. Share your concern with family members or friends to get some supportive ideas. You can also go for a financial planner that will help you fix this problem.
 
Being defaulted on credit card debt is certainly a great dilemma to get rid of. However, there are many suggestive ideas and resources that one can use to solve this issue. Most persons don’t pay off credit card debts because of certain reasons. So better you should solve this problem by using your resources than worrying for it.
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Overview Of Home Loan

Living in your own house is a dream which most of the people want to turn into a reality. With the availability of home loan financing, many people can fulfil their dream. You can come across to varied loan options in the market like Bank of Baroda home loan, SBI home loan, Axis Bank home loan, BHW Birla home loan, HDFC home loan, etc. Home loan helps you in buying your dream house. It is possible to get the loan from the lending institution and here the property which is involved is a collateral security. 

Buying a house is one of the most crucial decisions in your life and therefore, you should carefully watch it. Typically, here repayment continues for nearly 10-20 years and there are some things which you should take into consideration in order to get the home loan.


Amount of loan- The applicant would be needed to bear initial down payment, which can vary from 5-20 per cent at the time of buying the house. The remaining amount will be bear by the bank. However, borrower should calculate the loan amount on the basis of income, expenses and other factors. 


Loan tenure: If you will opt for longer loan tenure then it will lower your EMI amount. However, interest would be for longer time period and therefore, you would be needed to pay more. If you will opt for shorter tenure then it means EMI amount would be high, which might put burden on your expenses. 


Interest rate: Housing loan is available in both fixed and floating interest rate. As the term itself says, fixed interest rate will remain same for the entire loan duration, whereas, floating interest rate will fluctuate.

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Sunday, October 7, 2012

Compatible Guide For Personal Loan In A Nut Cell

What A Personal Loan Is?

Basically, a personal loan is a non-secured finance used to answer copious needs like home improvement, holidaying, medical, education and others. The loan is also used to buy consumable items like TV, refrigerator and other items. As compared to the loan being used to buy a home or to fund commercial purpose of a business, the personal finance is non-secured thus the elimination of credit history consideration and collateral security associates the finance.

Advantages Of Personal Loans

Your household expenses such as television, computer system and purchase of consumable items are greatly funded by this unsecured finance.

The loan is comprehensive to solve your medical expenses and other household costs that you may be unable to afford with your ready made income.

Other expenses like home improvement or home renovation are funded by the finance. More so, you can purchase a car of your dream using this unsecured loan.

One of the best benefits of the finance is that it hardly involves consideration of credit rating or collateral security from a borrower. Hence the time taken to borrow the finance is relatively faster than secured loans.

The finance is considered to be very convenient approach as compared to using credit card to sort out needs.

How To Get Unsecured Loan

Sources like Saraswat Bank Personal loan, SBI, HDFC and others offer unsecured loan. However, as a borrower, you should take some key things into mind before you apply for the finance.

One of the first things to do is to choose a right lender among the best and reputed ones. For this you can resort to online searching that will benefit you in terms of selecting few respectable and reputable banking concerns.

The chosen bank will send its agent to your home address to pick up some important documents like proof of age, income proof, bank statement, a copy of IT Returns and others.

The documents submitted are subsequently verified by your lender's field agent so that the information you furnished in the documents could be ascertained in terms of their authenticity. The overall procedures of such verification will normally consume two days most. Sometimes, lenders offer you loan within hours depending on your credit worthiness. The loan is eventually approved. The loan amount is transferred to your respective account.

In a nut cell, unsecured finance is really helpful to fund your personal needs. Though there are some procedures for documentation yet the loan amount you are offered can be saving grace as to solving needs meaningfully.

Basically, a personal loan is a non-secured finance used to answer copious needs like home improvement, holidaying, medical, education and others. The loan is also used to buy consumable items like TV, refrigerator and other items.

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Wednesday, September 19, 2012

Personal Loan – A Reliable & Right Away Source For Your Needs

Compared to what secured loans benefit us financially, the personal loan or unsecured loan, on the other hand, is very easy and convenient. This is because of many striking features and key benefits associated with the finance. For example, compared to what amount of time we invest in taking home loans or other secured loans, the unsecured finance is least time-consuming and free of any sort of trouble.

There are banks and lending institutes that can finance your needs in the context of borrowing unsecured loan. The listed benefits under-mentioned will help you know why you seek this finance in time of great necessity.

No Documents Required

That doesn’t mean the loan is free of cost. Of course it is not. However, the pile of paper works you may experience with acquiring housing finance or other secured loans, you don’t have to undergo with that pressure when borrowing unsecured finance. Because of the simplified documentation, the expected time to take the finance is around one day. Some banks like Canara Bank personal loan, HDFC, AXIS, ICICI and Corporation Bank personal loan tend to offer the finance in just 2 hours at max.

No Credit History Mandatory

This is what makes borrowings personal finance cool and time efficient experience for borrowers. Unlike taking car loans where you are essentially required to have good credit history to qualify for the finance, personal finance doesn't have such compulsion for borrowers. That means, even though your credit history is slightly disturbed or affected with few outstanding payments, you can still qualify for it. That's where the loan sounds exceptional from the rest.

Fast And Convenient

As aforesaid, the time taken to loan ranges from 1 hour to 24 hours not beyond than that. That's where the loan sounds so easily obtainable to sort out immediate monetary needs. Because of less documentation and no credit history consideration, personal finance is fast and convenient.

Use In Any Need

No matter what needs you are engulfed with, use this loan to sort out them satisfactorily. For example, if you are planing for holidaying and lack certain finance for it, consult your bank for personal finance. See what documents it may require and get approval right away. The loan amount you receive will be good enough to fund the cost of holidaying. In return of the loan lent, the lender charges easy EMI for certain tenure as agreed upon.

Compared to what secured loans benefit us financially, the personal loan or unsecured loan, on the other hand, is very easy and convenient. This is because of many striking features and key benefits associated with the finance. It has many benefits which are briefly mentioned in the article.

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Thursday, September 13, 2012

Home Loans Get The Drift Of Your Housing Finance


Home loan or housing finance has its importance. This type of loan gives you a monetary assistance of 85% for the tenure of 25 years so that you not only can solve your needs but can also amortize balance easily. In order to get loan easily, there are many banks or housing finance companies in marketplace these days. What you require to do is to search a good lender and apply for the loan. There are few things you should take into account in this respect.

First of all and as mentioned before, you need to choose a good lender from the rest of all so that whether the kind of housing finance you are obtaining contains all features and benefits to ensure full compatibility. For this, you can choose Internet service, and it will help you in a way how to facilitate choosing right lender for your need. With so many home loan providers being online these days, choosing a one using the Internet service is something not to be refused at all.

Once the lender is chosen, there come application procedures to fulfill. Here, you are required to show full compliance with home loan eligibility criteria and documentations associated with hassle free application procedures. Once you are done with application procedures and submitted required documents, you will be told to wait for some days till the documents are verified satisfactorily by your lender. Understandably, the very step of verification is all about determining whether or not you are eligible for housing finance.

There come many key points to understand before you choose home loan in India. Home loan interest rates, fixed and floating are necessarily to be considered in this respect. Don't deny the fact that your EMI for housing loan will be fluctuated according to rate of interest applied on it. For example, if you took loan on floating rate, the prospective EMI or equated monthly installments would fluctuate as per corresponding effect or change in the percentage of interest rate. So better make a careful choice in this respect.

You should not forget that the type of loan you are choosing is secured, and so, it consequently requires you give collateral security. If loan is taken for new house purchase, then the new house/flat will be secured as collateral or anything that could vindicate proper liquidation.

At last, choosing housing loan is your prerogative choice, but to ensure its compatibility to your needs is something that will help you make the most of your loan.

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Tuesday, July 31, 2012

Introduction to Canara & Corporation Banks Personal Loans

Canara Bank offers quantum of loan according to its subjective terms. For instance, the quantum of finance to be sustained to salaried individuals is Rs 1 lakhs or 6 months’ gross salary whichever is less. Non-salaried individuals can avail 50% personal loan against gross annual income. On the basis of credit worthiness and income of applicants, the bank offers higher quantum of finance accordingly.

Applicants who deserve for Canara Bank Personal Loan should have income sufficiency. Whether you are salaried or self-employed applicants make sure the income you are having currently serves one of the eligibility requirements of the bank. Co-obligation may be required depending on the bank’s terms and conditions.

As per the processing charges applicable, applicants may be charged from Rs 100 to Rs 500. Documentable credentials pertaining to acquire the finance from Canara Bank are mandatory to submit. Depending on the type of applicants (salaried or self-employed), the required documents may vary accordingly. Better have a look on the website of the bank in this respect. The procedural aspects for the documentation vary according to type of applicants (salaried or non-salaried).

Canara Bank Personal Loan can serve your genuine needs well. The bank offers large chunk of finance for your needs.

Corporation Bank is one of the leading finance institutes and has been operating its banking service in India for years. Corporation Bank Personal Loan comes with so many standout features mostly the quantum of finance to sort out expenses related to family holiday, wedding expenses, medical expenses and a lot more expenses you meet in your life.

Depending on the requirement and kind of income status quo, the quantum of loan is made available accordingly. Generally, the bank extends financial assistance of Rs 2 lakhs for the repayment duration of 60 months (max) to salaried and self-employed and other deserving applicants.

Processing fees of 1.5% is applicable but no charge is applicable on prepayment. Salaried individuals are given repayment duration of 3 years and 5 years (max) for others. Corporation Bank offers reliable money solutions against your personal expenses. The loan is designed to solve your monetary requirements.

When it comes to getting your needs financed, availing personal finance is one of the trusted ways. Since the loan is non-secured finance, not much documents are required. Even the banks don’t ask anything about the prospective use of the finance. Credit history is not considered at all. These things conclusively make the finance least time consuming to obtain.