Home Loan Providers

January 17th, 2012 admin

The world is full of those who claim to stand by in case of an unforeseeable requirement. The challenge therefore is not in having around whom can help, but perhaps in deciding to choose between genuine help and help from sources with vested interests. This principle is particularly useful in case of loan sources who claim to see you through your dreams and through their promptness might actually convince an individual to commit an error of judgment and thereby actually profit from the ignorance. Various sources of lenders are available in India, however may vary between the interest rates and other aspects of the deal. Here is a brief review of the common bank sources in India providing housing loans.

      The various banks providing home loans are as follows:-

      • State Bank Of India
      • Punjab National Bank
      • Dena Bank
      • Bank of India
      • HSBC
      • Standard Chartered-Grind lays
      • Citibank

Bank of India

      Provides home loans to the following requirements:-

      • To purchase a plot for the construction of a house
      • To purchase a house or a flat
      • For renovation/repair/alteration/addition to a house/flat.
      • Furnishing of  o house
      • Takeover of customers housing loan extended by other banks

Citibank Standard Home loan

      • Considers if gross income is greater than one lakh
      • 23 years of age and above to a maximum of 58 years of retirement of age, whichever is higher at the time of maturity

Dena Niwas Housing Finance Scheme

      • For purchase of a house
      • For purchase of a plot
      • Construction of a house
      • Ready made houses
      • For extension of an already existing house up to 25 years old
      • For repairs and up-gradation, which includes the cost of fixtures

HSBC Home Loans

      • The bank includes various schemes to aid the customers in adding concrete to their dreams
      • Offering range between Rs 5 Lakh up to 3 Crore

PNB Housing Loan

      • For construction of a house or a flat
      • Purchase of a house or a flat on first attorney basis from the original attorney
      • Carrying out repairs/ renovations/additions/alterations to existing houses

SBI Housing Loans

      • No cap on maximum loan amount
      • Option to club income of your spouse and children to compute eligible loan amount
      • Repayment permitted up to 70 years of age
      • Free personal accident insurance cover
      • No administrative charges or application fees

What is Home Equity Loans

January 10th, 2012 admin

The world is an empty canvass for those who can afford the brush, whereas for those, who might be imploding with talent and a taste for exquisite art, but cannot afford the hues and colors, prospects might seem as blank as the canvass itself. Solving this unequal opportunity and outcomes propelled by the lack of sources, has been solved to an extend by the easy procurement of loans , tailored to the requirement of the borrower. One such variety of loans is the Home Equity Loans, which perhaps provides a ray of hope to even those applicants who might not exactly prove their worth in terms of security.

Home Equity Loan

      A home equity loan, also abbreviated as HEL is a loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as the following:-

    • Home repairs
    • Medical bills
    • College education
    • The utility of the procured loan is endless and is obviously user specific but never the less, its certainly useful.

Types

  These loans are of two types:-

      • The closed end variety &
      • The open end Variety
      • Both these types are often termed as second mortgages, because these are secured against the value of the property. These are usually of a brief duration when compared to first mortgages.
      • Income tax rebate is possible on these loans
      • Home equity loans and home equity line of credit (HELOC) actually differ as  the interest rate in the later is adjustable where as the formed is a one time lump loan with a fixed rate. Therefore they differ in one having a more static or constant plan than the other one which is more flexible or evolving.

Home equity loan fees

        • Appraisal fees
        • Originator fees
        • Title fees
        • Stamp duties
        • Arrangement fees
        • Closing fees
        • Early pay off fee

Surveyor and conveyor or valuation fees may also apply to loans but some may be waived.

Benefit

      • Home equity loans are readily available for self employed applicants. Therefore while most loans are not given to people who have a difficult time in proving their financial status by providing previous bank statements, which might not exactly be possible if the applicant has not really been active in terms of a regular job. This is certainly a great option.

Education Loans

January 4th, 2012 admin

While much is available in terms of loans to be acquired for businesses and individual car/ housing requirements, the topic remains a little e bleak when it tunnels down to education loans. The future of those who can afford is often dealt with in ease, while for those who are capable but are limited due to lack of monetary assistance, ability and IQ does not certainly seem enough. In such circumstances, loans for education can actually prevent the purging of a bright future at the very conception. A clear understanding of the subject might however require a clear analysis of all the available options.

Student Loan

      A student loan is described as a loan that is procured to allow the affordability of expenses related to the curriculum and living of a student. Therefore, the loan, unlike others is not exactly for building a materialistic property or acquiring of assets but perhaps to lighten the future of a student.

Differences from other loans

      The interest rate might actually differ, as it is aimed at easing the student in completing his education. Even the repayment of loans might actually differ from other loans while the student still in college or studying.

Eligibility criterions

      The procurement of such loans might actually take into consideration many factors which might include the following:-

  • Income levels
  • Parents’ income levels
  • Other financial considerations, including property, college tenures etc before the conclusions are drawn

Repayment

  • A student loan varies from other loans in several features and therefore is certainly not a conventional loan.
  • A students loan is usually at least two points lower than the conventional loans’ going market rate
  • The repayment may be deferred on the principal and the interest until the student is out of school.
  • Repayment typically begins after a specified time after the student has left college or school.
  • The period might be decided to be long and affordable, however the interest rates will ensure a greater amount is paid for the same.

Mastery Promissory note

      This is an agreement between the lender and the borrower that promises to repay the loan. This is a binding legal contract.

Student benefits

      Different forms of student benefits are:-

  • Direct funding for daily living expenses
  • Support for renting an apartment
  • Partially state –funded meals
  • Securing student loans

Thereby, providing an equal chance and opportunity for all students.


Credit Cards

December 31st, 2011 admin

With the unstoppable progress in technology, life seemingly has been simplified to an obvious level. Where, once upon a time , anxious users would carry next to their quivering bosoms, large sums of money; today the use of plastic money has overtaken any other form of payment system. Thereby making dreams seem just a swipe away.

The concept of credit cards can be understood in a simplified way by a systemic approach to the topic as shown below:-

  • Definition
  • Concept or Principles
  • Interest Rates/ System of Back payments
  • Variants

Credit Card

      A credit card can be described as the clichéd plastic money, as it is a plastic card, with a magnetic strip behind, which aids the transfer of data. These cards are issued to a user from a credit union or bank, allowing the user to buy through relevant vendors or take a cash advance. All cards are designed as per the ISO/IEC 7810 as ID -1., which is 85.60 x 53.90mm.

Concept or Principles of a credit card

      The credit card enters the user into a loop, which caters one line of cash transfer to the user, through which he borrows the money under the promise of returning it. Unlike other cards, the user is allowed to have a static or constant debt, on which he pays the interest decided, which is certainly more than any other forms of debt.

Interest Rates/ System of Back payments

      The banks or the credit unions waiver interest if the entire payment is made within the grace period & in circumstances where the user cannot refund the balance, then interest is calculated starting from the day of purchase, since when the money has been flowing to the present date on the entire , actual amount of purchase.

      Therefore if the user bought stuff for Rs 500 on a certain date and carried a debt of Rs 10  beyond the stipulated period, then interest will be calculated from the date when the user bought the stuff, on the entire Rs 500, till the present date.

Formula for calculating Interest in use of a credit card

The standard formula used everywhere is as follows:-

                                          APR/100 x ABD/365 x the number of days.

                                          APR: Annual Percentage Rate

                                          ABD: Average Daily Balance

Great new To the Users

◦   The basic benefit to the user is that of convenience

◦   No calculation of basic balance before credit, however shouldn’t exceed the credit line determined.

◦   Better fraud prevention than the counterpart cards.

Variants

Charge cards : Require the entire debit to be paid by the end of the month

Debit cards: Can be used as currency by the user, using the actual balance and no credit


Personal finance in marriage

December 14th, 2011 admin

At one time of life everyone will be involved in marriage. Most couple nowadays wait until they attain financial stability or graduate from schools before they get married. This makes most married couples independent financially. It is not easy to merge the love life with the financial needs of the family. Proper personal finance planning is paramount to attain financially stable family unit. Creating a budget from two different sources is difficult than it looks. I may help you with few tips that may work for you to avoid conflict pertaining finance in the family.

Open a joint account and create a budget on how you are going to spend your incomes. Even if you put your money different, you are still both accountable for payment of different bills, rent, food other expenses. One of the best way of managing your finances is by making a budget jointly and keep it in a place were you can both see it. Tick on it any of the achieved expenditure on it and please avoid buying things that are not in the budget. Stick to the budget only.

Man had endless needs and wants. But to make the right choice you need to set priorities on them. We all like to have fun, buy a house, plan for children or go for vacation. As you save for a project give first priority to the most important projects and accomplish them first. Discuss with your partner on what you want and make a conscience on different expenditures.

One should be open to change. On the wedding day you vow to be for each other for better and for worse. Marriage life would obvious not be the same as one for a single person. You should be ready for change and accept the things and situations that it comes with.

Insurance personal Finance

November 28th, 2011 admin

Insurance is part and parcel of personal finance. One should ensure everything he deems to be valuable to him or her so as in case of loss or damage, one can seek compensation from the company one insured with. Times are hard and therefore one has to look for a company whose policy is cheap to maintain. These are some of the things one should look out for when looking for an insurance cover.

Premium Payment plan
This is the amount of money one pay the insurance company over the agreed lapse of time. Some are monthly while others are quarterly. Whatever the payment plan look for a policy with the cheapest premiums. This will help you pay for the premiums when you are low financially. Feel free to compare premium plans from with different companies and settle for the one that you can comfortably afford.

Property damage liability cover

At times you can be on the wrong side of the road and you are forced to pay for damage you have caused. If you’re insurance cover doesn’t cover liabilities such as those, then you personal finance is in jeopardy. Check the limits of each because they only cover to certain extend depending on the accident.
All round coverage policy
You might be in trouble if the cover you have chosen is not extensive. Take a car to be the property you have insured. If you have insured it against fire, you will be paid only when the car gets burned. A good policy should be extensive to include malicious damage, vandalism and other form of damage.
Conclusion

One should always be careful on the insurance policy he chooses. There are two are that are critical when choosing and insurance policy. The first one is the premiums cost and how comprehensive the policy is. This two will determine your personal finance management system.

Find Out How Much You Really Worth

November 18th, 2011 admin

In personal finance, one cannot determine how much to spend or save if the person doesn’t know how much he is worth. One is worth what he has accumulated as fixed assets. You can do this by following some simple steps.

List first rate assets: These assets include your high values assets such as pieces of land, cars, electronics, and even houses. Caution should be taken when valuating these assets. This is because some assets appreciate with time while other depreciates with time. Make sure that you put the value of these assets at the current market price but make sure you value them in at their present quality value.

Second rate assets: These assets are more liquid and their value fluctuates. This can be your savings bank account, shares on stock market and CDs. They can’t be classified as first rate assets because their value tends to fluctuate with the forces in the market. There are several factors that one should put in mind when getting the net value of this assets. One should consider the current interest rate, inflation and other economic factors. Calculating the net asset worth.

Third rate assets: You have to move to a lower level now where you calculate the value of your personal items. This can be jewelry, entertainment unit, your phone and other sophisticated electronics.
Now after you have got your assets in sum value, you can now move to tee second phase where you find the total liabilities. Liabilities are also in two groupings. These are fixed and variable liabilities. Payments such as bills, rent are considered to be fixed. They don’t change after a long time.

You can now get the difference between the two and find you net worth. It is from here that you will now be able to calculate how you can invest or save. You might find out that you are actually worth less than you thought. You can repeat this process regularly to know whether your value is appreciating or depreciating.

Personal Finance Management Software

October 21st, 2011 admin

Personal finance is a crucial part in one’s life. With the current hard economic times it’s important that one manages his finances to avoid heavy debts or a complete economic stagnation. There is several ways one can use to make sure funds are well managed. One of the most effective is budgeting. One should make sure that money is spending on things that were budgeted for.

However the newest and the most convenient way of managing personal finance are by use of personal finance software. There is several software that is available in the market that one can take advantage of

How the software works?

The personal finance software is supported by windows and even Mac OS X. The software is especially design to enable it track your financial transactions such as those of your bank accounts , payments of bills , budgets and even loans . One good thing about this software is that it cans comfortable monitor’s accounts with multiple currencies. The software monitors the money markets and hence it converts the currency sat the most current currency value.

Benefits Personal Finance Management Software:

This software has a host of benefits that you stand to benefit by having them. The very first one is continence. When you use this software you don’t have to memories every transaction you carry out. This is because the software automatically updates every expenditure or income you receive.

They are easy to use and you get the results immediately you key in the variable. This eliminates chances of making errors of hectic computations.

This software is downloadable and hence you can have them on your computer anytime you need them. This software will help you justify any expenditure you make and enable you to have a firm control of your finances.

Be Your Own Financial Advisor

October 7th, 2011 admin

If the recent market meltdown and Wall Street debacle has taught us anything, it is that finding an investment professional you can trust is a daunting task indeed. Whether you are talking about Bernard Madoff and his too good to be true Ponzi scheme or executives at Goldman Sachs making bets against the same securities they were selling their clients, the level of deception in the financial industry is simply staggering.

You could be tempted to react to this deception and dishonesty by abandoning the stock market altogether, and many young (and old) investors have done just that. But there is another way. You can simply turn to the financial advisor you trust the most-the one staring you in the face each morning. Becoming your own financial advisor means that the financial planner you trust will always earn that trust and always keep your best interests at heart. Becoming your own personal financial planner is not as difficult as you might think, but it is important to get off to the right start.

Pay Yourself First
One of the most common refrains heard by those in the financial industry is that individual investors simply do not have any money left to save after all the bills have been paid. While it is true that most of us are living on tight budgets, and many of us are living paycheck to paycheck, there are strategies would-be investors can use to make the most of what they do have.

The pay-yourself-first strategy is one of the most powerful in the investment world, and you can use this strategy to get started with your investments. Once this strategy is in place, your investment portfolio becomes just another bill that must be paid, much like the light bill, the phone bill and the mortgage.

The beauty of the pay-yourself-first strategy is that you can get started with any amount you like. If all you think you can spare is $5 a month, so be it. Once you start working with this strategy, however, you might find that you are able to boost your savings and get started with a sound investment strategy.

Dollar Cost Averaging
One of the surest ways to lose your money is to try to time the market. Even market professionals with six and seven-figure salaries have trouble pinpointing the top of a bull market or the start of a bear, and ordinary investors have even less chance.

But you can turn that market uncertainty on its head by implementing a dollar cost averaging approach to the market. Taken together, the pay-yourself-first strategy and dollar cost averaging are extremely powerful concepts, and these combined strategies can help you build real wealth over time, no matter how small your starting portfolio.

With dollar cost averaging, you simply invest the same amount of money month after month, whether stocks are soaring all all-time highs or flirting with their lowest levels in a decade. This strategy automatically means you accumulate more shares when the stock market is down, and fewer when it is up. This is the epitome of the ‘buy low, sell high” strategy, and all you need to do to put it into action is invest consistently month after month.

Once you have mastered the twin concepts of pay-yourself-first and dollar cost averaging, you will be well on your way to becoming your own financial advisor. You do not have to have a degree in high finance or an MBA to understand the world of investing. All you need is some common sense, and the dedication to put what you have learned into practice.

Are Those High Yield Checking Accounts Worth the Hassle

September 28th, 2011 admin

Perhaps you have seen the ads for those checking accounts offering 3% 4% and even 5% interest and wondered if they are really all they are cracked up to be. After all, with interest rates hovering near historic lows and many checking accounts paying next to nothing, the opportunity to enjoy such a handsome return can be very enticing.

But like so many other things in life, the reality of those high yield checking accounts is rarely as simple as it seems on the surface. While these accounts certainly do have their place, and many customers are in fact routinely earning these stellar returns on their everyday spending cash, there are some things you need to be aware of before you sign up. Understanding the ins and outs of these unique bank accounts before you open your account is essential. If you fail to read the fine print you will not only lose out on that great rate ó you could end up with some unpleasant surprises in the form of high fees and other charges.

Debit Card Purchases
One thing nearly all high yield checking accounts have in common is a requirement for a minimum number of debit card transactions each month. The minimum required number of debit transactions varies, but for most accounts it seems to be between 10 and 12. If you already make a lot of debit card purchases, this will probably not be a problem, but if you do most of your shopping with cash or credit cards, it could be quite a difficult adjustment.

In addition, simply switching from credit to debit might not be a great idea, especially for big ticket items. That is because credit cards provide important protections that debit cards might not, including the ability to dispute a charge if the merchandise turns out to be defective. Losing out on this protection could cost you far more than you earn in monthly interest.

Maximum Balance
Most high yield checking accounts also impose a maximum balance for earning that high interest rate. For the most part these balances are fairly generous, often in the $15,000 to $25,000 range, but it is something to be aware of. If you think you can stash $100,000 in a 4% checking account and earn a cool $4,000 in free money, you are probably mistaken. The 4% quoted in the add will probably apply only to the first $15,000 to $25,000, with the rest earning a paltry return.

Direct Deposit
In orderto earn those high rates of interest you will probably be required to set up a direct deposit, so be sure to read the fine print carefully. In many cases the bank sets a minimum for the direct deposit, so you will need to make sure you meet that minimum each month. If you fail to meet the direct deposit requirement, or any of the other restrictions imposed by the bank, your interest rate for that month automatically falls to near zero.

ATM Rebates
When you sign up for a high rate checking account, you will probably be dealing with a bank in another state, so chances are you will need to use the ATM more than you currently do. To make the transition easier, many banks offer rebates on ATM fees, but it is still important to check the fine print. Some banks may impose a cap on the number of fees they will rebate, while others will restrict the dollar amount. Understanding the restrictions and limitations of the account is the best way to avoid any unpleasant surprises.

The bottom line isthat these high yield checking accounts can be a good deal, but only if you shop around carefully and understand all of the requirements. Failing to do your due diligence could leave you with a substandard return and a wallet full of hassles.

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