HOW TO SAVE MONEY BUDGET ?

HOW TO SAVE MONEY BUDGET ?

HOW TO SAVE MONEY BUDGET  ?
HOW TO SAVE MONEY BUDGET ?

The more control Budget Hackabot challenge is almost upon us. This weekend, We Work BKC will host one of the largest ever hackathons held in India, with over 100 teams registered for the event so far. At moneycontrol, we are exploring new areas of technology which can help us deliver unique value to our consumers. And with the problems laid out for this edition, we believe significant such amount can be unlocked in the areas of machine learning and investment advisory. How to save money budget ?

The problem statements are as follows:

Problem #1

The challenge is to build a first of its kind interactive bot that simplifies the budget for consumers by answering queries posted by users in natural English language. For responses, the bot needs to explain from the knowledge base repository of 600+ articles prepared by the money control editorial team.How to save money budget ?

Problem #2

Come up with an exciting tool that demonstrates the risks and rewards of different investment and asset classes. The tool/solution needs to be fun and easy to use. This will act as a way for users to learn about new investment options and make decisions. The users will range from beginners to regular investors. Any open/freely available data source can be used to build the tool which will suggest suitable investment options to the user. For the scope of this problem statement, asset classes to be considered can be restricted to stocks and mutual funds. The horizon for prediction will range between 1 month to 1 year depending on the asset class in question (mutual funds are obviously evaluated over a longer time frame).How to save money budget ?

The problems have been designed keeping in mind the upcoming Union Budget session in Parliament. With the advent of GST, the general public has several questions on pertinent matters that affect their daily lives and bread. This needs to be brought out into the open and healthy discourse is a must for the times. With this perspective, we’ve put our heads together to identify technological means which can address these issues for consumers at scale. And we believe the next breakthrough is close at hand, especially with the help of the more significant problem-solving entrepreneurial community.How to save money budget ?

We’ve also put in significant effort to cater to the participants’ every need. From expert panels discussing the pertinent topics of the day, breakout sessions to allow the participants to unwind, food trucks catering gourmet cuisine, and a venue which operates round the clock, this hackathon will show the way forward in collaborative breakthroughs in innovation.How to save money budget ?

HOW TO BUY A HOUSE ?

                 HOW TO BUY A HOUSE ?

HOW TO BUY A HOUSE ?
HOW TO BUY A HOUSE ?

If you are planning to buy a home, now is perhaps a good time to purchase as interest rates are down and there’s a massive ready-to-move-in inventory with developers that they could want to offload in a discount. Also, instead of launching new jobs, a lot of them are focussing on completing unfinished assignments, as a result of the regulatory mechanism put in place by agencies such as Real Estate Regulatory Authority (RERA). So, buyers may also look for projects that are most likely to be completed within the next three to six months.
All in all, it is a buyers’ market. So, what should home buyers keep in mind before buying a property? HOW TO BUY A HOUSE ?

Here’s a checklist:

First and foremost, log on to the RERA website of this state in which you want to put money into. In the event of a soon-to-be-completed project, check whether the developer has enrolled his job with the regulatory authority set up in the state. Then do some research on the builder, assess the number of projects the developer has completed and delivered so far.
Assess to your RERA seal: Post RERA, many below building projects are extended a RERA registration amount. Check for this seal. What this signifies is that the programmer has complied with all of the mandatory norms. You’ll also find the sanctioned building plans and details of the number of flooring, towers, and systems that he intends to construct on the developer’s site post-RERA. Look for more information such as the number of components, number of towers and the number of floors sanctioned by the concerned authority
Property use/title: If you are still unsure about the property title in spite of all the RERA safety net in place, the worried revenue department and the development authority can authenticate the title and property usage for you. Your fears aren’t lost as some developers have duped property buyers in the past by starting residential projects on plots they don’t possess. At times, developers launch projects in their territory without having the land use changed from agriculture to residential.
Location: It is a good idea for buyers to choose the right place. See those appropriate roads are leading up to the project, sufficient shops for daily needs, schools and hospitals are close by. Most of all, check the distance to your workplace and the mode of transportation available.
FAR/purchasable FAR: In some situations, programmers buy additional FAR (floor-area ratio) through construction so that they can build over more area than accepted before. Equipped with other FAR, a developer can assemble additional towers in the region demarcated as green, without allowing the house buyers know about the changes made from the initial design program.
Completion certificate: If you’re planning to buy a ready-to-move-in apartment or are purchasing a unit from the secondary market, seek information about the finish certification of the project. It’s the only document that ensures that the programmer has all approvals in place.
Is a ready-to-move-in property better than an under construction one? Well, it surely is because you do not have to pay both rent and EMI and it lessens the delay risks connected to a home that’s still getting constructed. However, is it not costly? Not so in a market where there is enormous inventory available, and there are great deals possible if you do your homework well. Additionally, a lot of stock in the market has helped maintain a check on prices
As for under construction possessions, rest assured that RERA Provides a Fantastic protection as builders need to ensure that they finish the projects as per the timelines submitted by the regulatory authorities and if They Don’t, they will be penalized
Resale versus direct purchase: While there is not much choice available when it comes to resale properties, the range for negotiation will depend on how desperate the seller is. But you may still have to ensure that all of the legal documentation is in place. Also be sure that the seller has paid EMIs on time and no dues are pending with the bank, builder or the maintenance office.
Capital appreciation: Remember if you’re planning to buy today, but only for self-use. This is not an investors’ market, and recognition in land prices is unlikely for the following couple of years.
CHECK OFF THESE 6 ITEMS BEFORE BUYING

Buying a house is a considerable investment. Before you leap into the wonderful world of homeownership, be sure you’re prepared with these six measures. Learn about credit score requirements, mortgage choices and other must-dos.

Six easy steps to buying a house

1. Strengthen your credit score.

2. Figure out what you can afford.

3. Save for down payment, closing costs.

4. Build a healthy savings account.

5. Purchase a house you prefer.

HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT
HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

Selecting right home loan payable is as outstanding a choice as picking an interest rate for your investment or concentrate on repayment and repayment choices.
In recent times, as the rate of inflation has touched double-figure picking the ideal mortgage tenure becomes much more important as interest rates show signs of going up further.
There are several factors to take into account when one decides to take a house loan for a specific period.

Is era on your side?

The primary factor is the age. The younger the generation, higher is that the tenure open to your home loan borrower. This means, if a person decides to have a loan in her/his 30s, s/he can find financing for 20 years — the maximum loan tenure provided by most Indian banks now.

Some banks offer home loans for 25 years, but that’s an exception instead of the rule. According to the eligibility standards of the banks, the age of retirement is 60 years in the event of salaried and 65 years in case of self-employed people.

Interest levels: Beware of ups and downs

When taking a loan, an individual has to take into consideration the fact that interest rates vary through the loan tenure. You merely have to consider the speed of interest movement on house loans in the previous eight years to understand how changing these rates happen to be.

Why age is Crucial ?

If the loan debtor is younger, s/he can get an expansion in her/his loan tenure. If the loan borrower is in her/his 40s, the only option available in such a case is to increase the EMI. And this can cause a good deal of pain especially in times of soaring inflation.

However, this is easier said than done. The reason is, by the time you’re in your 40s, the rate of growth in potential income is much lower when compared to what one can expect at a younger age, say at mid-20s or early 30s.

Another advantage of a younger age is the increased loan eligibility. Even though the present income is taken into account while providing financing, the possibility of the increase in salary can be considered as a variable. So, one can certainly opt for a top-up loan (a loan on top of an already existing credit) to meet personal needs or look after an increased EMI if at all a borrower faces this type of situation.

There are repayment options like step-up repayment facility where the EMI is reduced in the initial period and increases at a later stage. This might be excellent for young borrowers that are climbing rungs professionally. But this is a choice available for the more new bunch.

How it makes an enormous difference!

Let us take an example. A 30-year old individual, said Amit, makes a home loan of Rs 30 lakh at an interest rate of 9 percent for 20 years report in 2006. Amit earns about Rs 50, 000 per month afterwards. Now let’s assume that the interest rate on Amit’s house loan rises to 11 percent in 2008.

Additionally, let us assume that by the time in 2008 interest levels increase Amit’s salary has also expanded to Rs 77, 140 considering he got an annual salary increment of 7 percent year-on-year within his net pay.

 

Effect of changed rates with the tenure increase option

As the table below shows in the five years since 2003 Amit’s EMI had risen by Rs 4,605 in 2008. This is an annual increase of Rs 921 every year. This may not pinch considerably when prices are down but if inflation is about 11 percent (as the statistics for the week ending June 7 showed) then it specific aches a lot.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

Now let’s see the calculations if Amit were in his 40s. In this case, the choice of climbing the loan tenure would not be available as adding 25 years will take Amit past the eligible age of 60 years. The only option then is to increase his home loan EMI.

Effect of altered rates if the EMI is raised This shows how vital it’s to think about your age in addition to the worth of the loan while intending to buy your dream house.

In these times of high inflation, higher medical costs, and grandiose lifestyles, there are many senior citizens who are in need of loans to fulfill some of their requirements — for example, a temporary medical crisis where insurance may not be enough, or purchasing of land in which the borrower needs partial or complete financing. In many cases, senior citizens are not aware of the loan options available to them. We look at some choices out there for older citizens.

MORTGAGE LOAN

This is the most popular loan strategy for senior citizens. A mortgage loan is quite popular in the United States along with another part of the West. It has caught the creditors’ attention in India recently. Today, many banks are peddling reverse home loan. HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

The reverse mortgage loan is a strategy established by banks in which borrowers may keep their house as collateral to get the loan. The credit is given through periodic instalment. The regular payment is called annuity. Reverse mortgage essentially empowers senior citizens to have extra money from their houses in the older age. With rising expense of lifestyle, medical services, and overall rates, it has become essential to get another source of cash than merely based on pension or provident fund that isn’t adequate.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

The critical requirements for mortgage loan would be that the borrower should not have any outstanding loan against the property being mortgaged and that he or she must be 60 or more.

Personal Loan

The general perception is that you can’t secure the personal loan in older age. Far from being real, many banks have established private loan strategies for senior citizens. So, if a debtor is becoming Rs.40,000 as a monthly pension, the amount that could be borrowed is five lakhs to 7 lakhs. But if the fixed sum is Rs 4 lakhs, the max they can hire would be four lakhs only.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

The debtor may use this amount for any use. Most of the banks have different ceilings for loans for senior citizens.

Senior citizens would do well to remember:

You Have to be a pensioner rather than this State Govt., Central Govt. or PSU. The majority of the banks let their ex-employees to choose the personal loan.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

1. Loan recovery has to be completed by now borrower turns 75 or before that. For example, if the debtor is 65 years old, then the loan tenure won’t exceed ten years.

2. The EMI should not exceed 40 percent of your monthly pension. Additionally, banks can put the limitation on the amount of EMIs. By way of instance, the loan might have to be repaid in 48 EMIs (or another amount of EMIs) depending on bank’s policy.

3. The guarantor can be the partner or any other family member just like in almost any loan.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

Home Loan

Senior citizens may avail residence loan also, but the sum might not be as high.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT The amount may be capped at the certain amount based on the income and financial state of the borrower. For instance, a bank can cap the loan amount to 25 lakhs or 50 times yearly pension whichever is lower with the additional condition that the EMI should be less than 40 percent of the monthly pension.
Moreover, in-home loan for senior citizens, the tenure is fixed in this manner in which the debtor’s age does not exceed 75 years. So if you take the investment at the age of 60 years, the tenure is going to be for a maximum period of 15 years. These standards affect the amount of house loan senior citizens are qualified for. The collaterals required are property or the insurance coverages. HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

You will find few more types of the loan from property or fixed deposit. These are quite naturally accessible to all borrowers because of security being supplied. At the same time, the amount of the loan is about 50 percent of the worth of protection. Thus banks face no risk in recovering the sum.HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

A FEW WORDS OF WARNING

Taking a loan is tempting as it constitutes a direct source of funds. There is nothing that is more satiating than the availability of cash in the bank account. While we can spend when we earn, the same isn’t the situation once we have already retired. Therefore, senior citizens should avail loan just if there is the absolute need for this. A significant investment outstanding will be harmful not only to your financing but to your own heir’s finances too.

HOME LOANS : WHY YOUR AGE AND TENURE ARE IMPORTANT

Senior citizens have options such as personal loans, home loans or loans against other assets. However there are stringent limits prescribed by banks.

HOW TO GET THE BEST CAR INSURANCE DEAL ?

HOW TO GET THE BEST CAR INSURANCE DEAL ?

HOW TO GET THE BEST CAR INSURANCE DEAL ?
HOW TO GET THE BEST CAR INSURANCE DEAL ?

Almost 15 years ago buying the four-wheeled machine was a dream out of reach for many Indians. Thanks to the competition in the market and the globalization of Indian customer market, purchasing a vehicle is longer a privilege of the wealthy men and women.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

How to get the best car insurance deal ? Together with Tata introducing the “aam admi’s” Nano, cars have eaten to the two-wheeler market.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

This has indirectly given rise to competition in automobile insurance market too; until you opt for car insurance policy prudence advice you to look at the various auto insurance policies offered in the market.How to get the best car insurance deal ?sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

Importance of Auto Insurance:

Before we look at the several policies in the market and give you a comparative analysis of some of the best ones let’s first understand the importance of having car insurance. As I have already highlighted, the number of automobiles has increased significantly leading to heavy traffic on the roads.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

Each dent in your car can eat heavily to your savings. In the event of car theft too, car insurance comes handy as the insurance company covers the present value of the automobile. Therefore, having automobile insurance becomes most important when you purchase a car. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

It ensures for the mistakes committed by other motorists on the road also. This is known as the third party legal liability coverage.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

 

The abundance of policies offered in the marketplace may confound a newbie purchasing his first car. Read this article below to get a fair insight into choosing the best insurance deal for your vehicle.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

Insurance Policies Available on the Market: ICICI Lombard HDFC ERGO Private Car Insurance Package Policy Tata AIG private Auto Insurance sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

Features and Advantages of a Couple Policies in the Market:

The ICICI Lombard has the following benefits:

1. It gives servicing at 2900 garages with cashless facility around India. The coverage is presented online with digital signature instantly. Accident cover for co-passenger is available around Rs.2 lakh. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

1. HDFC provides w broad range of benefits beginning with discounts offered on the HDFC ERGO Private Cars Insurance policy, such as Automobile Association Discount and discounts according to age and profession. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

2. Online advantage: Both for purchasing the coverage and renewing it, the online service can be availed of.How to get the best car insurance deal ?sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

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Tata AIG personal Auto Insurance

1. Tata AIG offers a free pickup of automobile

2. They also provide a direct settlement facility at individual garages They give a 6-month accident-repair guarantee They even give an Improved protection through exceptional add-on covers.progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

How to get the best car insurance deal ?sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

 

The best way to Receive the Best auto Insurance – Factors to Remember:
Ascertain the insurance needs of your vehicle.

1.There are three types of coverage –Your liability where the harm is caused because of your fault, third party liability where the injury is caused by another driver and damage due to vandalism, theft, fire, flood, etc.. Make sure that the policy covers all three situations. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

2.If your vehicle is parked in a parking lot, then it is possible to select a lesser policy. Should you park it in an unsafe place, you may want to boost the coverage. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

3.The agent will ask questions to determine the type of driver that you are. Be as truthful as possible.  sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

4.Instead of your work, the space between your workplace place to house and the number of people who push the car are all factors that you need to consider before purchasing a policy. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .

5.When you haven’t maintained during the year of the policy, you might get a discount for another policy duration. This is referred to as the no-claim discount. Check if this deal is available. sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg . How to get the best car insurance deal ?progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

6.Some of the insurance businesses insist that repairs that your car needs need to be done at specific service centers for you to claim the repair charges. Learn more whether this clause is different.How to get the best car insurance deal ? sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

7.A number of those insurers give legal protection; reimburse harm to in-car audio equipment and personal belongings. Compare these provided by various insurance companies.How to get the best car insurance deal ? sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg . How to get the best car insurance deal ?progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

Important Points to Take Note of:

1.Find out whether you’re able to acquire extra insurance for drives and passengers. While the majority of the decent companies provide this facility, it is almost always better to ask up front.progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

2.While declaring information on the suggestion form, be as honest as possible.

3.This may avoid complications in the future.How to get the best car insurance deal ?

4.All are the terms & conditions of the policy ensure that you get it in writing.How to get the best car insurance deal ?progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

5.These words and requirements frequently change, and the dealer selling the coverage for you may not be aware of the most recent changes.How to get the best car insurance deal ? sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .  How to get the best car insurance deal ?progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

6.Do not neglect to read the fine print. Most of the significant information regarding the policy validity along with other provide details are given in fine print.progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

7.Most significant of all, drive safely. The lower the accidents which you’re involved in, the more moderate premium you pay over time. Remember nothing is more important than your life.sbi credit card customer care . indusind bank credit card . andhra bank online . kotak mahindra bank net banking . pnb credit card . corporation bank account . hdfc credit cards offer . citi bank customer care . andhra bank customer care . from lsg .progressive car insurance reviews , direct car insurance , flo car insurance , car insurance florida , direct car insurance florida , car loans , car logo .

LOAN AGAINST SECURITIES MEANING

Loan Against Securities Meaning

Loan Against Securities Meaning
Loan Against Securities Meaning

Banks and financial institutions keep coming with various ways to fulfill the financial requirements of every individual as per their creditworthiness and paying capacity.aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care . One step in this direction was the introduction of the gold loan. Another one has been Loan against Securities, popularly referred to as LAS. Under “Loan against Securities,”credit is advanced to a customer against pledge of securities or merely put investment against an insurance policy, mutual funds, NSC and other securities.aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care . The list of approved securities against which LAS can be advanced varies from bank to bank, but primarily the following are considered to be approved securities against which LAS could be given.Loan Against Securities Meaning .

1. Non-Convertible Debentures
2. Mutual Fund Units
3. NABARD Bonds
4. Demat Shares
5. UTI Bonds
6. NSC/KVP (Accepted only in Demat form)
7. Insurance Policies

LAS helps you to get the loan against the securities that you have, for the time being, merely pledged without selling them off in haste. An overdraft facility is advanced to you by the bank or financial institution when you guarantee your securities. The value of the overdraft limit that is developed to you is determined by the securities that are pledged by you.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

 

For smooth transactions, a current account is opened in your name, and it is at your discretion how and when to withdraw and use the money. The rate of interest is calculated only on the amount removed by you and just for the period of utilization.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

 

The beneficial part of pledging your securities is one that you can get steady cash quickly at the time you need it most, and secondly, you would not be devoid of the benefits as a shareholder. This means that you can enjoy your rights of receiving dividends and bonuses along with gaining from the price movements in the shares for which you have availed the loan from the bank.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care . aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

To meet your short-term financial needs, Loan against Securities offers a good choice as you do not have to sell your stocks in haste. Moreover, the interest rate at which you get LAS is lesser as compared to a personal loan.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

Features of Loan Against Securities

 

1.Secured Loan – Loan against securities is a secured loan as your bonds, shares, debentures or mutual funds are kept as collateral security when this credit is advanced to you.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

2.Tenure – The tenure of loan against securities is one year. You may also get it renewed as per your requirement.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

3.The rate of Interest – interest rates at which loan against securities is advanced varies from 12% – 15% p.a but that may also change from bank to bank. aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

4.Processing Fees – Banks and financial institutions usually charge approximately 2 % as processing fees.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

5.Loan Amount – The loan amount for which you may be eligible depends upon the type of security that you are offering. For example, in case you are providing equity shares then the amount that you will be suitable for would be 50% of the value of such shares.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

6.Prepayment Charges – At any point in time if you wish to prepay your loan against securities then you can do so without giving it a second thought as there are no prepayment charges attached to this investment.Loan Against Securities Meaning .

7.Age – Anyone who falls within 18 years – 65 years of age can apply for availing loan against securities.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

8.Documents Required for Loan against Securities – Generally, following documents are required by banks and financial institutions before they advance you the loan against securities, but the conventional materials may vary from bank to bank.Loan Against Securities Meaning .aadharcard . paisabazaar credit score . aadhar card correction . paisabazar . axis bank customer care . sbbj online . dhfl home loan . bankbazaar home loan . lic home loan interest rate . loan against property interest rates comparison . bank of india customer care .

A. For Salaried Person

Pan Card
Identity Proof
Photograph
Address Proof
Bank Statements (Latest 6 Months)
Cancelled Cheque
Demat Account Statement (Securities need to be in electronic form)
Income Proof

B. For Self-Employed Person

Pan Card
Identity Proof
Photograph
Address Proof
Bank Statements (Latest 6 Months)
Cancelled Cheque
Demat Account Statement (Securities need to be in electronic form)
Income Proof along with Profit and Loss Account, Balance Sheet, etc.
Office Address Proof
Business Existence Proof

List of Popular Banks Offering Loan Against Securities

ICICI Bank Ltd
Axis Bank Ltd
HDFC Bank Ltd
ING Vysya Bank
IDBI Bank Ltd
Standard Chartered Bank India

What Every Blogger Needs to Know About Business Credit

What Every Blogger Needs to Know About Business Credit

What Every Blogger Needs to Know About Business Credit
What Every Blogger Needs to Know About Business Credit

IF Hven’t taken the next step — setting up credit lines for their businesses. These can come in handy especially if they plan to scale past being a one-man (or girl) band. So, let us look at exactly what each blogger needs to understand about company credit. icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

What Every Blogger Needs to Know About Business Credit

Banks Can Assess Your Business Credit score

Business credit is a lot like personal credit, in that you want to use it sensibly or lose it. As you probably know that banks will check your private credit score, did you know they will also check your business credit score?icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

Among these checks involves pulling your business’ FICO score. This is different from your FICO score as it focuses on the credit risk profile of your business rather than your credit score. Given that companies use credit more significantly than people, the algorithms tied to a company FICO score will take this into consideration.What Every Blogger Needs to Know About Business Credit
Regardless, the key to business credit is using it sensibly and this means making sure that you manage your open accounts and you make payments on time. If not, then you could encounter trouble. Establishing Business Credit. What Every Blogger Needs to Know About Business Credit .icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

Granted being a blogger isn’t a capital-intensive business, but there are instances when you might have to cover payment interruptions or to ramp up a team to take care of a significant assignment. Business credit may come in handy in those cases as it allows you an extra flexibility without leaning in your confidence.
Apart from FICO, the other commonly used business credit score is Dun & Bradstreet’s PAYDEX. Some of the simple methods to make sure your PAYDEX score is correct is to set store card accounts with your office and equipment providers, and then make sure that you pay the accounts on time.What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

Today Dun & Bradstreet will not automatically assign a PAYDEX score for your industry. First, you will have to be sure you to make sure to have opened a business credit file available. Following that, you will have to have at least four different credit references, and that these credit references are reporting your details to Dun & Bradstreet. If not, then your business will fall through the cracks. Thus, consider opening accounts with your office supplies, your gear supply, maybe a coffee or water delivery service, and a couple of gas stations. This will give you the foundation needed to establish business credit.What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

The Way Business Credit Can Help You

Everyone can assess a business’ credit rating with no consent. It follows that your suppliers, landlords, lenders do not have to get your approval to confirm your business credit. Nevertheless, this shouldn’t be something to dread. You want your company to have an excellent credit rating, this way you don’t need to lean on your finances to grow your business.What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .
Imagine you want to outfit your office. Would you instead set the cost on your credit account or your own company’ credit report? Or what about net connections or lease? Again, it is much better to separate these expenses from your credit. But you need to have a solid business credit rating first.What Every Blogger Needs to Know About Business Credit .icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number .redit card apply . financial institutions in india .

Whi hdfc moneyback credit card . axis bank cle this isn’t complex, you also need to understand one common problem with company credit — companies with similar names often get confused. icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india . Therefore, you need to know the particulars of your company credit rating and be sure that any probable suppliers, lenders, or landlords have the right advice always.What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

One final point to understand is the bank lenders, and credit card companies frequently share information about delinquent business loans. But most alternative lenders don’t access this info. If you don’t have a delinquent loan, then you haven’t anything to be worried about. icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

However, if you had any financial problems in the past, then you are going to want to keep this in mind.
Building your business’ credit rating is just part of building a solid company — even if you’re a blogger. So, keep the principles in mind, and You’ll be able to get the additional cash you need to Make Sure your blogging business can flourish for years ahead .What Every Blogger Needs to Know About Business Credit . icici bank customer care . standard chartered credit card payment . axis long term equity fund . cibil login . vijaya bank online . axis bank customer care number . hdfc moneyback credit card . axis bank credit card apply . financial institutions in india .

Which is Better-Gold Loan or Personal Loan?

Which is Better -Gold Loan or Personal Loan?
Which is Better -Gold Loan or Personal Loan?

Which is Better-Gold Loan or Personal Loan ?

There are not many financing options from the organised banking sector that provide the flexibility of personal loans when you need some emergency financing in a hurry. indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . However, specific forms of secured loans like gold loans are emerging as a substitute for private loans on account of the double benefits of minimal instruction and lightning-fast disbursal.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Both of these loans have their advantages and disadvantages and may prove beneficial or turned into a financial burden for the individual.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .
Here is a fast look at the advantages and disadvantages of these two types of loans if you are wondering which one of them will be perfect for you.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .
Gold Loan: These loans are secured loans this you’re eligible to apply for a gold loan only if you own physical gold in the kind of coins or jewellery. They are a terrific option for short-term cash requirements or if you’re in a hurry to raise funds. But, bear in mind the following characteristics of gold loans before you begin determining if this choice is ideal for you.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

(1) Experts:

Banks or NBFCs that lend instead of stone demand just basic records and the procedure is free from complexities. Typically, loan disbursement can be completed in a few hours. indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . You wouldn’t need to know your CIBIL score or declare present loans or other debt obligations. It’s also a wonderful chance to boost your credit history. This means less money out of your pocket to repay the loan. This is only one of the critical reasons why some favour gold loan over private loans.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

(2)Flexible Repayment:

Gold loan offers you several options for repayment that is not offered with other kinds of loans. Listed below are just three most Frequent repayments options:
#1.You Can Opt to pay off the loan as regular EMIs
#2.You Can Opt to service just the interest during the loan tenure and pay off the rest at the end of the tenure or
#3.You can pay the interest and loan amount at the end of the tenure with no payments before that.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .
#4.Zero Pre-payment Penalty: There are often no pre-payment penalties associated with the foreclosure of a golden loan which is not typically true if you take a personal loan.

(3)Additional Benefits:

Some lenders deliver gold loan borrowers unique benefits such as free lender lockers or discount on various services offered by the lending company.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

(4)Cons:

This implies the remaining 25% worth goes towards bank’s margin and can’t be monetised . Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

(5)Reduction of Asset:

it’s a secured loan, and your advantage is always at risk of liquidation from the lending company if you’re unable to repay the gold loan on time.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

(6)Short Tenure:

A majority of lenders offer the loan for less than three years hence for high loan amounts that the EMI payments could be significant. Such loans have been a popular choice amongst many people to tide over any pressing financial need especially in the event of emergencies and unplanned flat-rate costs.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

Pros:

1.No Collateral:

This is considered by many as the best benefit of a personal loan. Borrowers don’t need to maintain any asset (real estate, gold, life insurance plan, etc.) as security with the bank when granting a personal loan. This feature makes it a preferred choice over other funding options such as a loan from gold or property loan.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

2.Versatility:

Personal loans can be taken for a variety of functions like a wedding, house renovation, down payment on a new home or for a family vacation abroad. In reality, the only uses that aren’t permitted include speculative or prohibited actions.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

3.Minimum Paperwork:

Personal loans don’t involve elaborate paperwork. So long as you can offer basic KYC information documents and proof of earnings as required by the bank, there is good possibility that your application will be approved.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

4.Fast Disbursement:

Many lenders charge the loan amount to the debtor’s account within 48 hours after the loan was approved.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

Cons:

5.Credit History and Eligibility Criteria:

Before giving any personal loan, banks run a comprehensive enquiry regarding the credit history of the borrower. The eligibility standards for private loans also have various complexities and limitations that do not permit everyone to opt for a personal loan.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .

6.High-Interest Rates:

The interest rates on private loans are usually high as these unsecured loans are considered riskier by the banks. Lenders also charge high prepayment fees as a penalty if the individual is willing and able to pay off the loan before the conclusion of the loan payable.Which is Better -Gold Loan or Personal Loan?
In conclusion, it has to be pointed out that the two unsecured loans and personal loans have their distinct characteristics that make them suitable for specific scenarios depending on your condition. Therefore make sure you seek out all options available to you until you apply for a personal loan or a golden loan.
Indians have the special attachment towards gold. Occasionally this attachment goes beyond the obvious intentions of gaining from any rally in gold prices.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

For Indians, gold remains a haven that offers peace of mind when many avenues of investments appear to be unremunerative. With the recent fall in gold prices, there’s a growing interest among investors to collect this alluring advantage. indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .Which is Better -Gold Loan or Personal Loan?

 

Some wait for further fall. And then you will find experts, which are forecasting the end of a bull run in gold rates. It’s largely observed that availing loan from gold is a far better choice than simply availing the private loan. Let us determine how availing loan against gold works better than a personal loan.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

A lien is obviously comfy lending against security in comparison to financing application backed by no security. Better the quality of the security, quicker the loan disbursement. Your gold decorations are a good security for a lender. Bank knows the simple fact that in case of non-payments of dues it can auction the gold and realise its dues. Ordinarily, a bank brings against your decorations in a couple of hours. This includes the processing of this loan application and ascertaining the worth of your decorations.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .Which is Better -Gold Loan or Personal Loan?

Which is Better -Gold Loan or Personal Loan?

You can avail around 60 percent of the worth of gold decorations. Banks charge interest rate in the range of 13 percent to 14 percent over the loans against gold. These loans come with tenure of one year. Banks don’t request a guarantor when disbursing a gold loan. And all this comes to you at a nominal processing fee of about 1 percent of the sanctioned amount of the loan.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

Juxtapose these benefits with a private loan. A personal loan includes tenure of one to three years and the interest rate charged ranges from 16 percent to 22 percent depending on the credit profile of the borrower.Which is Better -Gold Loan or Personal Loan?  A borrower must arrange for a guarantor while taking a personal loan. Investors insist on earnings evidence and run comprehensive due diligence to ascertain applicant’s repaying capacity. indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .Which is Better -Gold Loan or Personal Loan?

You have to pay around 2 per cent to 3 percent processing fee for a private loan. If you choose to prepay it, then the prepayment charges are about 2 percent to 3 percent. In comparison with the golden loan, personal loans score reduced for the borrower on all parameters such as ease of getting the loan and the cost to pay for this loan.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

Hence, gold loans can be a fantastic alternative to private loans. It’s possible to judiciously use gold loans in numerous ways. It makes it possible for you to increase funds to pay off several high price obligations like credit card unpaid. You can raise money for medical emergencies employing gold loans.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar .Which is Better -Gold Loan or Personal Loan?

It can also help you pay for some vital expenses such as your child’s education. If you are operating a company, you can think about choosing an overdraft facility against the gold ornaments deposited with the lender.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . This might enable you to meet your working capital requirements as and when they appear. Some individuals may look at such governmental facility against gold as a very good alternative to ‘production of an emergency fund’.Which is Better -Gold Loan or Personal Loan?indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

By way of example, a salaried individual may find it challenging to keep aside money equal to one year’s expenses apart, but he can keep his gold ornaments with the lender and take an overdraft facility that allows him to draw funds if need be. Therefore, gold loans can help you strengthen your budget and come handy to you in lots of ways.indian bank personal loan . canara bank customer care . adhar card correction . sbi buddy . allahabad bank customer care number . axis bank credit card apply online . citibank home loan . citi bank home loan . pnb personal loan . citibank toll free . gold lone in india . paisabazaar . Which is Better -Gold Loan or Personal Loan?

WHAT IS GOLD LOAN

WHAT IS GOLD LOAN

what is gold loan
what is gold loan

As the name implies, this is the loan given to gold. Many opt for this particular loan for a short period to meet the requirement of their children’s education, gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . marriage and other fiscal problems in the family what is gold loan. And others think that rather than keeping the gold idle in the home or locker, loan against golden is the best option. Moreover, with the rise in gold prices, the demand from businesses and banks offering such loans has raised. For example, Muthoot Finance, one of the leading gold loan firms has seen 24 percent increases in earnings loan against 17 percent increase in the market worth of gold  what is gold loan .   

ADVANTAGES OF GOLD LOAN

what is gold loan
what is gold loan

what is gold loan

The gold loan does not demand any certificate to show your wages or income, and even no credit card background is needed. gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . Thus even unemployed and non-working individuals can go for a gold loan.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .

Unlike any other unsecured loan, the gold loan doesn’t require many papers, just a few records such as ID proof and address evidence is enough to avail of such loan what is gold loan .gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
One of the chief benefits of gold loan is its low-interest rates. Usually, loan over gold is provided in the interest of 12-16 percent per annum, and this is very low compared to personal loans available at interest rates of 15-26 percent per annum.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
In rural regions Agricultural loan against gold can be readily available for agriculturist at very nominal speed of Interest of 7 percent-8%, evidence of agricultural document Has to Be Provided gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
Gold loan is the most simple and convenient types of loan because here all you want to do is pledge your gold using a bank or finance company and get up to 80% of the market worth of this gold as a loan.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
The borrower will be given an option to pay only interest during the entire term, and at the end of the tenure, you can pay the complete borrowed amount in the single shot.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
In case of gold loan processing period is very less. gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . Usually, banks require just a few hours to finish the procedure where as in case of NBFC’s (Non-Banking Financial Companies) a few minutes is sufficient for the same. So for immediate financial help that is the ideal option what is gold loan  .gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .

Charges Connected with Gold Loan:

1.Loan processing charge: While a number of the service suppliers may waiver these fees, some banks do charge a processing fee.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
2.Valuation Charge: These are the charges to be paid into the valuator. These charges are also specific to the service provider, and those with in-house valuators do not charge any additional amount for valuation what is gold loan .
3.Late payment penalty: gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . Most of the service providers bill late payment penalty and this also can vary from 1 institution to the other.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
4. Pre-payment penalty: Most of these service providers do not charge a penalty for repayment before the loan payable is over.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . However, some may still have this charge in place.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
It is sensible to check with the loan provider before choosing the loan. These charges could alter the amount which you might finally get.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .

Advise On Gold Loans

what is gold loan
what is gold loan

Go for the gold loan if you’re certain of returning the money in time otherwise, you will be penalized, and all of your vowed gold will come under the control of bank or finance company what is gold loan .gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
While choosing gold loan check the interest rates in various banks and personal finances. If you like private creditors subsequently better to go with somebody who’s been in this industry for several years.gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
As far as you are not emotionally linked to your gold ornaments, this is the ideal choice. However, nothing such as this may assist you during your difficulties, and with the fall of dollars and euro, many believe gold is the only safe thing left.
Documents Necessary for Gold Loan .gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
Identity proof such as passport, voters ID or driving license.
Address proof such as electricity bill, ration card, telephone bill etc..
For signature proof you want to submit your passport backup, driving permit or any other file with your signal what is gold loan .
Two passport size photos.
Gold loan is a sort of secured loan, i.e. the loan is provided against collateral in the kind of different types of gold jewellery or gold coins. You need to deposit your gold with the creditor, i.e. NBFC or bank and you receive the deposited gold ornaments or coins back just after you have paid back the loan amount in full including interest. Gold loan company, being stable, includes short processing times, a low rate of interest and short to moderate term tenure. You can avail several gold loan strategies from banks and other financial institutions. The amount of loan against gold you’ll get depends upon the value of this gold you surrender to your loan.The value and purity of the gold are going to be assessed before the lender or NBFC takes possession of the gold. This loan is a great option, if you’re looking for instant liquidity. Also, since the acceptance of this loan does not rely on your credit history or income, you need not be concerned about your negatively impacting your credit score nor scramble for income proofs for loan approval.
The Way to Choose a Gold Loan? A few reasons for the popularity loan against gold are as follows:
Gold loans comprise a low-interest rate as compared to many other loan options Gold Loans tenure ranges from a few days to 5 years or more depending on the lender. The repayment options on gold loan could be chosen by the selection of the borrower. The lender does not charge a pre-payment penalty on gold loans. Minimum documentation required and PAN Card isn’t compulsory for this loan Quick disbursement, i.e. loan is provided in a few minutes to a couple of hours.
Gold Loans Characteristics . gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .
It is a secured loan. Therefore, there’s no requirement of a good credit history to get a gold loan. You have an option to pay only the interest component, and the principle can be paid as a lump sum amount at the end of the loan tenure. For  gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi . those of you involved in agriculture, golden loan strategies could be availed at a reduced rate of interest which can be as low as 8 percent. Ever since your gold is the collateral, which can be deposited with the lender, the paper work involved is the bare minimum. All you need is the private id and address proof. The loan disbursal period is often as short as 5 minutes what is gold loan .gold rate in pune . today gold rate in kolkata . sbi gold loan interest rate . gold rate today in delhi . gold rate in mumbai . 194a . kotak credit card pay . I&t mutual fund . gold lone in india . gold price today in delhi .

HOME BUYING : A MORTGAGE IS NOT A HOME LOAN

Home  Buying : A Mortgage is Not a Home Loan

home buying : a mortgage is not a home loan
home buying : a mortgage is not a home loan

What is a Mortgage?

Many people are accustomed to calling our house loan a mortgage, but this isn’t an accurate definition of the period. A mortgage isn’t a loan. Also it is not something that the lender gives you. It is a security instrument that you give to the lender, a record that protects the lender’s interests in your premises.
The best way to Mortgage Works

Home  Buying : A Mortgage is Not a Home Loan

There are two parties to a mortgage. You’re the mortgagor or borrower, and the lender is the mortgagee.
A mortgage document makes a lien on your home,which serves as a lender’s collateral for the debt. The lien is listed in public records, likely in the county courthouse.
Ownership cannot be transferred to someone else before you pay the debt to release the lien.
Even if your loan is secured by a mortgage, then you still have full title to the property. No one else has rights of possession. The sales procedure is known as foreclosure. Home  Buying : A Mortgage is Not a Home Loan
When a mortgage is used for safety, foreclosure must usually advance through the court procedure. That type of foreclosure is called a judicial foreclosure
Over half of the countries in the United States utilize mortgages as security instruments. Other states use a deed of trust, which serves the same function, but with a few important differences.
A deed of trust is a unique kind of deed that’s recorded in public documents, where it informs everyone that there’s a lien on your property. You’re the trustor; the lender is the beneficiary, along with a third party is your trustee–someone who holds temporary (but not full) name until the lien is paid. Home  Buying : A Mortgage is Not a Home Loan
The trustee must be a neutral third party, someone who won’t favor either you or the creditor if problems crop up. In some countries, attorneys act as trustees, and in others, title insurance companies often supply the support.
The trustee can’t take your property for no reason–documents are set up to safeguard against that.
The amount of trust has been canceled when the debt is paid.
The differences between a mortgage and a deed of trust affect home buyers only when foreclosure is a problem since the trustee has the power to sell the house if your loan becomes delinquent. The lender must provide the citizenship proof of this delinquency and ask the trustee to commence foreclosure proceeding.
The trustee must progress as permitted by law and as dictated on your deed of trust, but the method bypasses the court system, making it a much faster and cheaper way for the lender to foreclose.Home  Buying : A Mortgage is Not a Home Loan
You cannot select the way that your loan is secured, that’s determined by where you live, but it is important to have an awareness of the type of lien which secures the debt for your property. But, that was not necessarily the case: In fact, before the 1930s, just four in 10 American families owned their own house. That is because very few people had sufficient cash to buy a home in 1 lump sum. And until the 1930s, there was no such thing as a bank loan specifically designed to purchase a home, something we now understand as a mortgage. The bank or mortgage lender loans you a massive chunk of money (typically 80 percent of the price of the house), which you have to pay back — with interest — within a definite period. If you neglect to repay the loan, the lender can take your home through a legal procedure called foreclosure.
For years, the only type of mortgage available was a fixed-interest loan repaid within 30 years. It features the stability of regular — and relatively low — monthly payments. In the 1980s came flexible rate mortgages (ARMs), loans with an even lower initial interest rate that adjusts or “resets” annually for the life of their mortgage. In the peak of the recent housing boom, even when creditors were trying to squeeze even unqualified borrowers into a mortgage, then they started offering “creative” ARMs with briefer reset intervals, tantalizingly low “teaser” rates and no limits on rate increases.Home  Buying : A Mortgage is Not a Home Loan
When you pair bad loans with a bad economy, you get rampant foreclosures. Since 2007, over 250,000 Americans have entered foreclosure proceedings every month [source: Levy]. Now those foreclosures are turning into full-blown repossessions, which are anticipated to reach 1 million houses.
Looking back at the flood of foreclosures because of the home crash, it’s apparent that many borrowers did not fully understand the conditions of the mortgages they signed. According to one study, 35 percent of ARM debtors didn’t understand if there was a limit on how much their rate of interest could rise [source: Pence]. This is why it’s vital to understand the terms of your mortgage, particularly the disadvantages of “nontraditional” loans.
In this guide, we will examine each of the numerous different kinds of mortgages, explain all of those confusing terms like escrow and amortization, and split down the hidden costs, taxes and fees that can add up each month. We are going, to begin with the most elementary question: What is a mortgage?
Which are mortgages? In plain English, a mortgage is a loan. For many people, it is the largest loan they could ever borrow. Having a regular loan, there’s no explicit collateral. The lender looks at your credit history, your income, and your savings, and decides if you are a good risk. With a mortgage, the collateral for your loan is the home itself. If you do not repay the loan (together with all of the fees and interest that are included with it), then the creditor can take your house.
Banks are the conventional mortgage lender. You can either apply for a mortgage at the bank you use for the checking and savings accounts, or you can shop around to other monies to get the best interest rates and terms. If you do not have enough opportunity to shop around yourself, then you can use a mortgage broker, that sifts though different creditors to negotiate the best deal for you. Banks are not the sole source of mortgages, though: Credit unions, some pension funds, and various government agencies also offer mortgages.Home  Buying : A Mortgage is Not a Home Loan
As with other loans, mortgages take an interest rate, either fixed or adjustable, and also a length or “duration” of this loan, anywhere from five to 30 decades. Unlike most other loans, mortgages take a good deal of related costs and fees. Some of those fees only happen once, like closing costs, while others are tacked onto the mortgage payment every month.Home  Buying : A Mortgage is Not a Home Loan
You might think mortgages have been around for centuries — after all, how could anyone ever afford to pay for a house outright? It was just in the 1930s, however, that mortgages got their beginning. It may surprise you to understand that banks did not forge ahead with this new thought; insurance companies did. These daring insurance companies did so not in the interest of earning money through fees and interest charges, but also in the hopes of gaining ownership of properties if borrowers failed to keep up with the payments.Home  Buying : A Mortgage is Not a Home Loan
It was not until 1934 that modern mortgages came into being. To help pull the country out of the Great Depression, the FHA pioneered a new type of mortgage directed at the people who couldn’t get mortgages under the present programs. At that moment, just four in 10 families owned houses. Mortgage loan terms have been limited to 50 percent of their house’s market value, and the repayment schedule was spread over three to five decades and ended with a balloon payment. An 80 percent loan at the time supposed your down payment was 80 percentage — not the volume of money that you financed! With loan terms such as that, it’s no surprise that most Americans were tenants.Home  Buying : A Mortgage is Not a Home Loan
FHA began a program that lowered down the down payment requirements. They put up programs that offered 80 percent loan-to-value (LTV), 90 percent LTV, and higher. This compelled commercial banks and lenders to do the same, creating a lot more opportunities for average Americans to own homes.
The FHA also began the trend of qualifying individuals for loans based on their actual ability to repay the loan, instead of the standard way of simply “knowing somebody.” The FHA lengthened the loan provisions. Rather than the conventional five- to seven-year loans, the FHA provided 15-year loans and finally stretched that out into the 30-year loans we have now.
Another area that the FHA got involved in was the quality of the home building. Instead of simply financing any home, the FHA set quality standards that homes had to meet to be able to qualify for your loan. That was a smart move; they wouldn’t need to have the loan outlasting the building! This started another tendency that commercial creditors finally followed.Home  Buying : A Mortgage is Not a Home Loan
Before FHA, conventional mortgages were interest-only payments that ended with a balloon payment which amounted to the entire principal of the loan. That was one reason why foreclosures were so prevalent. FHA established the amortization of loans, which meant that people got to pay an incremental amount of the loan’s principal amount with each interest payment, reducing the loan gradually over the loan term until it was completely paid off.
On the next page, we will break down the components of the contemporary monthly loan payment and explain the important idea of amortization.
The down payment on a mortgage is your lump sum you pay upfront that reduces the amount of money you have to borrow. You may place as much cash down as you desire. The traditional quantity is 20 percent of the buying cost, but it is possible to find mortgages which require as little as 3 to 5 percent. The more cash you put down, however, the less you have to finance — and the lower your monthly payment will be.Home  Buying : A Mortgage is Not a Home Loan
The monthly mortgage payment is composed of the following prices, appropriately called the acronym PITI:

1.Primary – The total amount of money You’re borrowing from the creditor (after your down payment). Home  Buying : A Mortgage is Not a Home Loan

2.Interest – The money the lender charges you to get the loan. It’s a proportion of the total sum of money you are borrowing.

3.Taxes – Cash to pay your property taxes is often put into an escrow account, a third party entity that holds accumulated property taxes until they’re due.

4.Insurance – Many mortgages require purchasing hazard insurance to protect against losses from fire, vandalism, vandalism, floods and other potential

5.catastrophes. If you have less than 20 percent of the equity in your home, you could also have to get private mortgage insurance, which we’ll talk more about later.

6.Home  Buying : A Mortgage is Not a Home Loan
Having a fixed-rate mortgage, your monthly payment remains roughly the same for the life of their loan. What varies from month to month and year to year is the portion of the mortgage payment which pays down the principal of the loan and the percentage that’s pure interest. The gradual repayment of both the original loan and the accumulated interest is called amortization.

When you look at the amortization schedule for a standard 30-year mortgage, the borrower pays a whole lot more interest than principal from the first years of this loan. As an instance, a $100,000 loan with a 6 percent interest rate takes a monthly mortgage payment of $599. Throughout the initial year of mortgage payments, approximately $500 per month goes to paying off the interest; just $99 chips away at the principal. Not until year 18 does the principal payment transcend the interest.Home  Buying : A Mortgage is Not a Home Loan

The benefit of amortization is that you may gradually repay the interest on the loan, instead of paying one enormous balloon payment at the conclusion. The downside of distributing payments over 30 years is that you wind up paying $215,838 for that initial $100,000 loan. Also, it takes you more to build up equity in the home, as you pay back so little main for such a long time. Equity is the value of your house minus your remaining principal balance.
But this doesn’t imply that fixed-rate, 30-year mortgages are a terrible thing. We are going to look closer at fixed-rate mortgages on another page.

Not that long ago, there was only one sort of mortgage offered by creditors: the 30-year, fixed-rate mortgage. A fixed-rate mortgage provides a rate of interest that won’t ever change over the whole life of the loan. Not only does your interest rate never alter, but your monthly mortgage payment stays the same for 15, 20 or 30 years, based on the period of your loan. The only numbers that might affect are property taxes and some other insurance premiums included in your monthly bill.Home  Buying : A Mortgage is Not a Home Loan

The rates of interest tied into fixed-rate mortgages fall and rise together with the bigger market. When the economy is increasing, interest rates are greater than through a recession. In those general trends, lenders provide borrowers specific rates based on their credit history and also the length of the loan. Here are the Advantages of 30, 20 and 15-year terms:Home  Buying : A Mortgage is Not a Home Loan
30-year fixed-rate — Since this is the greatest loan, you are going to end up paying the maximum in interest. While that might not seem like a good thing, it also permits you to deduct the most in interest payments from your taxes. This long-term loan also protects from the cheapest monthly obligations.
20-year fixed-rate — All these are harder to locate, but the shorter term will make it possible for you to build up more equity in your home sooner. And since you are going to be making larger monthly payments, the rate of interest is usually lower than a 30-year fixed mortgage.
15-year fixed-rate — This loan term has the very same advantages as the 20-year duration (faster payoff, greater equity and reduced interest rate), but you are going to have a much higher monthly payment.
There’s a long-term stability to fixed-rate mortgages that many borrowers find appealing– particularly those who plan on staying in their home for a decade or longer. Other debtors tend to be more concerned with obtaining the lowest interest rate possible. This is part of the attraction of adjustable-rate mortgages, and that we will talk about next.
An adjustable-rate mortgage (ARM) has an interest rate that changes — typically once a year — according to changing market conditions. A shifting interest rate affects the size of your monthly mortgage payment. ARMs are attractive to borrowers because the first rate for many is significantly lower compared to a traditional 30-year fixed-rate mortgage. In 2010, with interest rates on the 30-year fixed mortgage at historical lows, the ARM rate is nearly a complete percentage point lower [source: Haviv]. ARMs also make sense to borrowers who believe they’ll be selling their home within a few years.Home  Buying : A Mortgage is Not a Home Loan
If you are considering an ARM, one important consideration to bear in mind is that intentions don’t always equal reality. Many ARM borrowers who planned to sell their homes quickly during the real estate boom were instead stuck with a “reset” mortgage they could not afford. A number of them never fully understood the terms and conditions of their ARM agreement. Here are the key numbers to look for:
How often your interest rate adjusts — A conventional ARM adjusts every year, but there are also six-month ARMs, one-year ARMs, two-year ARMs and so forth. A popular “hybrid” ARM is your 5/1 year ARM, which includes a fixed rate for five years, then adjusts annually for the life of the loan. A 3/3 year ARM has a fixed rate for the first few years, then adjusts every three decades.
There will also be caps, or limits, to how high your rate of interest can go over the life of the loan and how much it can vary with each adjustment. Interim or periodic caps dictate just how much the interest rate may rise with every adjustment and lifetime caps specify how high the rate can go over the life span of the loan. Never sign up for an ARM without any caps! When mortgage lenders develop with their ARM rates, they look at the index and include a margin of two to four percentage points. Being tied to those indicator rates means that if those rates go up, your interest goes up with it. The catch? If interest rates go down, the speed on your ARMs might not [source: Federal Reserve]. To put it differently, read the fine print.
Now let’s take a look at some of the less common mortgage options, like government-sponsored loans, balloon mortgages and reverse mortgages.
Additional Kinds of Mortgages . Home  Buying : A Mortgage is Not a Home Loan
Let us begin with a risky kind of mortgage called a balloon mortgage. The advantage is that you find yourself making relatively low monthly payments for five years, but here is the kicker. In the end of the five decades, you owe the lender the remaining balance on the main, which will be awfully near the initial loan amount. This “balloon” payment could be a killer. If you can not flip or refinance the house in five decades, you are out of luck.
Reverse mortgages pay you as long as you reside in your home. These loans are designed for homeowners age 62 and older who want an inflow of cash, either as a monthly check or a credit line. Essentially, these homeowners borrow from the equity in their homes, but they do not have to pay the loan back so long as they don’t sell their homes or move. The downside is that the final costs can be very high, and you still have to pay taxes and mortgage insurance [origin: Moore].
Three agencies of the federal government use lenders to offer discounted prices and loan terms for qualifying borrowers: Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development, the Veterans Administration (VA) and the Rural Housing Service (RHS), which is a branch of the U.S. Department of Agriculture.Home  Buying : A Mortgage is Not a Home Loan
These agencies do not directly lend money to borrowers. Instead, they guarantee the loans made by approved mortgage lenders. Including the refinancing of mortgages that have become unaffordable. Borrowers with poor credit histories may find it a lot easier to secure a loan by an FHA-approved creditor, since the lender understands that in case the debtor fails to pay back the loan, then the government will pick up the invoice. FHA loans only need a 3 percent down payment, all of which may come from a family member, employer or charitable organization [origin: HUD]. Commercial mortgages would not allow that.
Veterans Administration loans, like FHA loans, are ensured by the agency, not lent directly to borrowers.VA-backed loans offer generous provisions and relaxed requirements to qualified veterans. Vets can pay no cash down as long as the house cost doesn’t exceed the loan limits to the county.
If you live in a metropolitan area or small town, you might be entitled to a low-interest loan through the Rural Housing Service. RHS offers both guaranteed loans through licensed lenders and direct loans which are government funded. They enable low-income households to get loans for homes.
On the next page, learn all about interest. What do all these percentages mean, anyhow?
Recognizing APR
Probably among the most confusing things about mortgages and other loans would be the calculation of curiosity. With variations in compounding, terms and other aspects, it is difficult to compare apples to apples when comparing mortgages. At times it looks like we are comparing apples to grapefruits.
For instance, what should you want to compare a 30-year fixed-rate mortgage at 7 percent with a single point to some 15-year fixed-rate mortgage at 6 percent using one-and-a-half points? To begin with, you have to remember also to consider the fees and other expenses related to each loan. How can you accurately compare both? Fortunately, there’s a means to do that.Home  Buying : A Mortgage is Not a Home Loan
The yearly percentage rate (APR) which you hear a lot about permits you to make true comparisons of the actual costs of loans. The APR is your average yearly finance charge (which includes fees and other loan costs) divided by the total borrowed. It’s expressed as a yearly percentage rate — thus the title. The APR will be slightly higher than the interest rate that the lender is charging since it features all (or most) of the other fees which the loan carries with it, such as the origination fee, points along with PMI premiums.Home  Buying : A Mortgage is Not a Home Loan
Here’s an example of how the APR functions. You find an ad that provides a 30-year fixed-rate mortgage at 7 percent with a single point. You find another advertisement offering a 30-year fixed-rate mortgage at 7 percent with no points. In fact, it is not. Fortunately, the APR believes each of the fine print.
Say you want to borrow $100,000. With either creditor, that means that your monthly payment is $665.30. This s means that the $97,975 is the new loan amount used to ascertain out the real cost of the loan. To find the APR, you determine the interest rate that could equate to a monthly payment of $665.30 to get a loan of $97,975. In cases like this, it’s 7.2 percent.
So the second lender is the better bargain, right? Not too fast. Keep reading to learn about the connection between APR and origination fees.
The Origination Fee
The origination fee is how lenders make money up front in your mortgage loan. Origination fees are calculated as a proportion of the entire loan, usually between 0.5 and one percentage on U.S. mortgages [source: Investopedia]. Going back to our APR instance, let’s say that the next creditor charges a 3 percent origination fee, and an application fee and other costs totaling $3,820 at closing. So there you have it: Although the second lender promoted no issues, it ended up with a high APR because of its steep origination fee.Home  Buying : A Mortgage is Not a Home Loan
The take-home message is straightforward: Do not just examine the rate of interest. Ask for the APR and compare it with other creditors. Also, make certain to know which fees have been included in the APR calculation. Normally, these include origination fees, points, buy down fees, prepaid mortgage interest, mortgage insurance premiums, program fees and underwriting costs. But note that some fees are charged by most of the lenders and are non-negotiable, such as title insurance and appraisals.Home  Buying : A Mortgage is Not a Home Loan
Luckily, you don’t need to figure out the APR on your own. The lender will give it to you as it provides you the Federal Truth in Lending Disclosure; you merely have to understand its importance.Home  Buying : A Mortgage is Not a Home Loan
Below are some other things to take into account when you examine the APR:
The more you borrow, the less impact all of these fees will have on the APR, since the APR is calculated based on the total loan amount.
The duration of time you are actually in the home before you refinance or sell right influences the effective rate of interest you finally get. As an instance, if you refinance or move after three decades rather than 30, after having paid two things at the loan closing, your effective rate of interest for your loan is a lot higher than if you remain for the complete loan term.
Qualifying for a Loan

  1. Names, addresses and all income earned from all employers for past 24 months
    2.W-2 forms for the 2 Decades before your loan application
    3.Latest pay stub showing low-income earnings
    4.Names, addresses, account numbers, monthly payments and current balances for many loans and credit accounts
    5.The last three statements for deposit accounts, stocks, and bonds
    6.If you decide to include income from child support and alimony, bring copies of court documents of canceled checks showing receipt of payment.
    7.A more detailed list can be found here. Your lender and closing attorney will also let you know exactly what paperwork and files you’ll need to present at the loan closing. We are going to delve deeper into the closing process on the next page.

 

To qualify for a mortgage, most lenders require that you have a debt-to-income ratio of 28/36 (this can vary depending on the down payment and the type of loan you’re getting, however). This means that no more than 28 percent of your total monthly income (from all sources and before taxes) can go toward housing, and no more than 36 percent of your monthly income can go toward your total monthly debt (this includes your mortgage payment). The debt they look at includes any longer-term loans like car loans, student loans, credit cards or any other debts that will take a while to pay off.Home  Buying : A Mortgage is Not a Home Loan
Here’s an example of how the debt-to-income ratio works: Suppose you earn $35,000 per year and are looking for a house that would require a mortgage of $800 per month. According to the 28 percent limit for your housing, you could afford a payment of $816 per month, so the $800 per month this house will cost is excellent (27 percent of your gross income). Suppose, however, you also have a $200 monthly car payment and a $115 monthly student loan payment. You have to add those to the $800 mortgage to find out your total debt. These total $1,115, which is roughly 38 percent of your gross income. That makes your housing-to-debt ratio 27/38. Lenders typically use the lesser of the two numbers, in this case, the 28 percent $816 limit, but you may have to come up with a bigger down payment or negotiate with the lender.Home  Buying : A Mortgage is Not a Home Loan
You also have to think about what you can afford. The lender will tell you what you can afford based on the lower number in the debt-to-income ratio, but that’s not taking any of your regular expenses (like food) into account. What if you have an expensive hobby or have plans for something that will require a lot of money in five years? Your lender doesn’t know about that, so the $1,400 mortgage it says you qualify for today may not fit your actual budget in five years — particularly if you don’t see your income increasing too much over that period. Take a look at this calculator to see how much house you can afford based on your current income.Home  Buying : A Mortgage is Not a Home Loan
In general, it’s more difficult to qualify for a mortgage now than it was during the housing boom, when just about any motivated home buyer could find credit — even many who couldn’t afford to buy a house. In the next section, we’ll explain what kind of credit history and income capacity you’ll need to pass the lender’s background check.Home  Buying : A Mortgage is Not a Home Loan

Mortgage Application

1.A lender will look at your employment history and credit history as indicators of how likely you are to pay back your loan. Lenders want to see stability, which means they will look closely any late payments during the last two years of your credit history. They will pay particular attention to any rent or mortgage payments that were more than 30 days past due. They’ll also look at late payments for credit cards during the last six months.

2.Stable income is also important. Lenders look for steady employment with a single employer for the past two years (or at least employment in the same field). Other income — such as earnings from part-time or freelance work, overtime, bonuses or self-employment — is also acceptable if it has a two-year history. If you don’t meet the minimum requirements, that doesn’t mean you’ll never quality for a mortgage. You may just have to talk to more lenders or settle for a higher interest rate.

3.The entire credit market has been tight for several years now. Mortgage lenders give the best interest rates to borrowers with high credit scores (760 to 850) who can make a big down payment (10 to 20 percent) [source: Esswein].

Here is a typical list of the documents you need when applying for a mortgage.
Money for the closing costs.
A completed sales contract signed by buyers and sellers.
Social Security numbers of all applicants
Complete address for the past two years (including complete name and address of landlords for past 24 months)

WHAT ARE CLOSING COSTS?

The total cost of a home mortgage is much more than just the monthly mortgage payments. Once a sales contract is signed, the closing process begins. As part of the closing, the deed and title are transferred to the buyer, title insurance, and financing documents are exchanged and copies are delivered to the county recorder. Since the closing is a legal process, it often involves an attorney or at least a third-party escrow holder. All of these processes and professionals cost money, adding up to a surprisingly large sum known as the closing costs.
The amount of money you’ll have to pay in closing costs varies a lot by region. If you live in a highly taxed area, for example, your closing costs will be higher. Also, realtors, lenders, and attorneys have differing fee scales depending on the markets they work in. Typically, you will pay anywhere from 3 to 6 percent of your total loan amount in closing costs — that means $3,000 to $6,000 if you get a $100,000 loan.Home  Buying : A Mortgage is Not a Home Loan
Of course, you can and should shop around and negotiate the fees. The Real Estate Settlement Procedures Act requires lenders to provide you with a good faith estimate of closing costs within three days of receiving your application. As you can see from the list covering the next few pages, there are a lot of fees that you might be able to convince the lender to lower or drop. You may also be able to negotiate with the seller to pay some of the closing costs.Home  Buying : A Mortgage is Not a Home Loan
The fees for services involved in closing a mortgage fall into three categories: the actual cost of getting the loan, the fees involved in transferring ownership of the property and the taxes paid to state and local governments.Home  Buying : A Mortgage is Not a Home Loan
On the next three pages, we’ll break down every fee that can be included in closing on a home purchase.Home  Buying : A Mortgage is Not a Home Loan

WHAT TO DO IF YOUR CAR LOAN OUTLASTS YOUR CAR

What to Do If Your Car Loan Outlasts Your Car

what to do if your car loan outlasts your car
what to do if your car loan outlasts your car

“Longer-term loans are becoming more and more widespread,” says Melinda Zabritski, senior manager of automotive credit with Experian. Almost half (48.2%) of the model year 2014 vehicles bought used were financed with loans of between 61 and 72 months, based on Experian Automotive data. Listed below are four possible choices. What to do if your car loan outlasts your car .

1.Pay Off the Debt

Naturally, paying off the balance of your loan would be your very best option, but what if you do not have that type of cash sitting around? Or what if you need these funds for a down payment on another automobile? In that case, you may need to use another loan to pay back the auto loan so that it is possible to get the title and dispose of this automobile. Often, you can have those funds deposited into your bank accounts and also use them to get whatever debt that you want to repay. Be sure you understand the fees which will be billed (normally 2% to 4 percent of the amount transferred) and which it is possible to pay off the debt before the low-rate offer ends. (You can locate Credit.com’s selections for the best balance transfer credit cards in America here.) What to do if your car loan outlasts your car .

2.Roll It Into a New Loan

An auto dealer may use you to roll up the remainder of your loan on your present vehicle into a new loan. Technically “you can not roll negative equity into financing,” states Bob Harwood, vice president at CarLoan.com. But there are ways around it. A dealer can attempt to inflate the value of the trade-in and loan over the worth of the car. “Banks will set a limit on how much more value onto a vehicle (it’s possible to borrow),” he states. “It is usually around 120 percent to125% if you’ve got decent credit.” But with less than stellar credit, they could lend only 100% to 110% of value of the new vehicle — or even less if you’ve very bad credit. (It’s a great idea to know where your credit stands before applying for a car loan. You can find a free credit report outline, updated monthly, at Credit.com.) . What to do if your car loan outlasts your car .
And, yes, they will want your old vehicle even if it’s now a junker, says Harwood, if just to try to grow the worth of their trade-in to make the deal work. What to do if your car loan outlasts your car .

3.Park & Pay

You can simply park the vehicle and continue to pay off the loan.
But be cautious: This strategy assumes you have a place to safely store it. And you may need to keep tags and a minimal amount of insurance to the vehicle. Your homeowner’s insurer (or your landlord), as an example, might not look kindly in an inoperable untagged automobile sitting on blocks in your driveway. Or your city might need these types of vehicles to be garaged. Check with your insurance provider, your DMV, and town or municipality to learn what’s permissible.What to do if your car loan outlasts your car .

4.Call a Divorce Attorney

You may have the ability to use bankruptcy to get out of this mess. “Bankruptcy may be a ticket out of this type of situation,” states Atlanta bankruptcy attorney Jonathan Ginsberg. “If you meet the requirements for a Chapter 7 you can surrender the car and cancel the installment arrangement and owe nothing,” he clarifies. Imagine if you do not qualify? You may start looking into Chapter 13, which Ginsberg says may provide several outs: “’Cram down’ the loan to the value of the automobile, ‘redeem’ the automobile to get the fair market value, or surrender the vehicle and pay any lack at pennies on the dollar.”
When you’ve got a troubled credit history, the possibility of funding a new car can be daunting.
And you see the ads on billboards, in newspapers and all over the Internet. “No charge? Bad Credit? No problem!” This is the marketing gimmick dealers across the nation use to convince unsuspecting customers — in the world of auto lending, that means people with credit scores below 600 — they can afford the car of their dreams.What to do if your car loan outlasts your car .
Dealers create a point of convincing consumers they can afford cars, says Bruce McClary at the National Foundation for Credit Counseling. They achieved this by focusing a customer’s attention on their monthly payment, rather than on the total price of the car. By extending the terms of the loan, they can make it seem that the customer is saving money. In reality, they are paying more in the long-run. The average term loan for subprime automobile borrowers is 72 months, compared to 66 weeks for prime borrowers.
The upsetting thing is that this strategy is working. As per a current MagnifyMoney study, we discovered 82.6 percent of auto loan borrowers who took out a loan with a term longer than five years did so just to lower their monthly repayment.What to do if your car loan outlasts your car .
These long-term loans are rarely the awesome deal they appear to be at first blush. According to the latest data from Experian, automobile loan rates for subprime borrowers may easily reach 15.25% to get a used car and 11% for a brand-new car — triple the prices a prime borrower might qualify for.
The longer the loan term, the more time interest has to stack up. In fact, some borrowers locate their loans balloon so much overtime that eventually they owe more than the vehicle is worth.
What to do about a bad automobile loan
Almost 20 percent of auto loans have been held by subprime borrowers, according to Experian. If you discover yourself weighed down with an automobile loan that you can not afford, it’s likely to escape of it with careful preparation. You can look up the trade-in value of your vehicle on sites like Kelly Blue Book. If the value is less than what you owe on your automobile loan, you know it’s time to do it.
Avoid rolling up your previous loan balance into a brand new auto loan. McClary cautions against using particular financing offers that promise to “repay” your old loan when you purchase a new vehicle. Here’s what happens: your old loan balance rolls into your new loan, making a much larger pile of debt.What to do if your car loan outlasts your car .