30 Apr, 2009 By:
You may need loan for any reason. It may be some personal reason like marriage or education of your children or even some foreign trip.
Higher education can be expensive. If you send your children abroad for education then there are lots of costs involved including lodging, boarding, and tuition charges. The cost of foreign education is going up and up due to lots of factors. The most of people in India can't afford foreign education due to this reason. Here comes the need for education loan, which is a kind of financial aid given to needy students for meeting the expenses of their higher education both in India and abroad. After furnishing all the required documents to the bank, students get the loan. The bank or the financial institution pays the money directly to the educational institute or university at the due time. The loan is re-payed by the student after he has finished his education and starts earning after getting a job. The terms and conditions of the loan can be negotiated.
Suppose your children have grown up and they have finished their schooling in India. Now they want to get some higher study abroad. Then you need lots of money for sending them abroad. If you are not very rich and do not have lots of money saved then you simply can't afford to pay for the education abroad. In this situation education loan comes to your rescue.
Higher education in a foreign country may help in the future of your children. After completion of their education, they may land a well paying job either in India or abroad. So, it is better for you to get education loan for your children as it will be beneficial for them in the long term.
20 Apr, 2009 By:
If you need money for any specific need like marriage, business expansion, foreign education then a good way to raise money is to get a loan against your property. The only condition for that is that you need to own a valuable asset in the form of a self-occupied house or a commercial property. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan.
You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation or sending your children to overseas for study.
The criterion for applying for a loan against property is that it should be a freehold and self-owned property, having a clear and marketable title. The loan is given as a certain percentage of the property's market value (around 40-60 per cent). The value of your property will be determined by the bank offering you the loan. Anyone can get a loan against property given the person is a minimum age of 21 years, employed or self-employed with a regular income and is owner of a property.
The exact amount of loan against property given to you depends on factors including your income, repayment capacity and your past credit history. It also depends on the number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant's income.
It is advisable to do proper research before going for a loan against property. Ask the people who have opted for it in the past for their views on what bank offers the best loan deal. Have a proper look at the terms and conditions of of all the banks and try to read the fine print.
It is also important to look at the length of the repayment term. Choosing a lengthy repayment term will mean each monthly repayment is lower and this might well look attractive when making your application. However, the longer you take to repay the loan the more interest you'll have to pay in total. It's not unusual to have to repay double the amount you've borrowed once the loan term gets into the region of decades rather than a few years.
20 Apr, 2009 By:
Business loans are provided by various banks to business people for their short or long term financial needs. A lot of times it is important for businessmen to acquire a certain amount of money for running their enterprise. It is well known that without the required capital no business can run. For any business whether in initial stage or in growth phase, capital is required to keep up the momentum.
Banks and other financial institutions offer business loans for expanding, modernizing or improving small, medium or large scale businesses. Banks often offer loans that are either secured loans and unsecured loans. A secured business loan means that the businessman keeps something as collateral against the loan amount taken. Collateral can vary depending on various factors. It can be anything from raw material to finished products, land or even the building of the business. In secured business loans the interest rates are comparatively low and they have much more flexible repayment options.
Secured loans are long-term loans that can be given to business owners that are well established and wish to increase their fixed assets or expand their business. Long-term loans can also be provided to start-up businesses, usually for purchases of land or buildings, construction efforts, and long-term working capital. These loans have terms that run 3-5 years.
On the other hand, unsecured business loans do not require a collateral. It is often at a higher rate of interest and are taken for a comparatively smaller tenure. These short-term loans are usually used for short-term working capital for a business temporarily in need of cash. It is needed mostly due to seasonal fluctuations, and other short-term problems that a business may encounter. Before going for a business loan properly evaluate the situation. See how badly your need the money and when. You should evaluate how much loan you should take that you can easily repay later.
20 Apr, 2009 By:
Owning a house of own is a dream for every person. Lots of people go for any bank loan in the case they can not afford to pay the full price of a house. Banks and other financial institutions offer home loans to people who meet the required eligibility.
Various banks offer home loan with their own terms and conditions. The interest rate, eligibility criteria, documents required, etc, all differ depending on the bank offering the loan. Many banks may be having some fine print or “conditions apply” that need to be carefully looked into. It is better to verify the facts properly before deciding to go for a loan offered by a certain bank. It may also happen that you may qualify for the loan of a certain bank only as it may differ depending on the bank.
It is advisable to do proper research before going for any loan. Ask the people who have opted for a personal loan for their views on what bank offers the best loan. Many a times it happens that you go for a loan offered by a bank and later repent about your decision.
Do proper study of the banks' eligibility criteria. You need to have certain qualifications for getting a home loan. The eligibility criteria are related to your age, income, past repayment history and the cost of the property. It also considers your work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc. Banks normally lend up to 3-4 times the annual gross income as a home loan. Every bank has its own set of eligibility criteria that may differ slightly.
20 Apr, 2009 By:
Car has become a necessity in today's life. Most of people who wish to own a car normally buy a car on a car loan. A car loan is offered by banks and other financial institutions. Due to the growth in the car market lots of car companies are offering economical cars to the Indian consumers and banks are also competing against each other to offer the best car loan deals. You should be careful before going for any loan.
It is advisable to do proper research before going for any car loan. Ask the people who have opted for a car loan their views on which bank offers the best loan. Do not get trapped by sales executives of banks who keep claiming to offer the best loan deal. Have a proper look at the terms and conditions of all the banks and try to read the fine print.
It is also important to look at the length of the repayment term. Choosing a lengthy repayment term will mean each monthly repayment is lower and this might well look attractive when making your application. However, the longer you take to repay the loan the more interest you’ll have to pay in total. It’s not unusual to have to repay double the amount you’ve borrowed once the loan term gets into the region of decades rather than a few years.
Most of people go for unsecured loans. However, if you go for a secured loan then you will get a better deal from the banks. Secured loans rely on using the value of the borrower’s property to stand as collateral, or a guarantee that the loan can be repaid even if the borrower stops making payments. Unsecured loans offer no such guarantees to the lender, and so are harder to get - you need a better credit rating.