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FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Search Results for: loan closure
NHB has cancelled penalties to pre-closure of loans
A recent press report said that National housing Bank has asked the housing financing companies not to levy penalties on pre-closure of loans, subjected to certain situations. The bank which regulates and supervise the housing finance companies, has directed all housing finance companies to maintain the consistent in floating rate interest for both old and new customers to ensure the transparency and fairness in the home loan segments. NHB said …
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Which loan is better for a businessperson?
The easiest loan that any businessman can get is the daily/weekly payment loans from local financiers. But the interest rate here can be very high - in the order of 3% and above per month. Also there is the element of getting lesser amount that the loan amount due to advance payment of EMI. A local financial will give Rs.900 for the Rs.1000 loan (Rs.100 being the advance EMI) and charge interest for the full Rs.1000. This method increases the in…
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What are fore closure charges?
Foreclosure charges are the loan closing costs/additional fees associated with the closing of a loan, most often in case of a mortgage loan or home loan. These may include the costs of legal formalities, inspections, penalty fee, etc. In some cases, the payment of loan closing costs may be negotiable. Although the ministry of finance has recently suggested public sector banks to waive off foreclosure charges on housing loans, major banks are not…
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Additional charges in a personal loan!
for repaying the personal loan before the scheduled time frame. The amount is usually a small percentage of the outstanding amount as on that day. This is to make up for the loss in interest based revenue for the bank due to closure of a running loan account. The Let Payment Fees: This is the most hurtful of all the additional charges applicable in a personal loan as it amounts to around 5 % of the defaulted amount for that period of time. The C…
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Posted in Juggling debts, Loans, Money management, Personal loans
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NHB has planned to waive of loan pre-payment penalty
financial institution, they do charge on pre-closure of loans. This charge is usually 2%. Earlier NHB has told the press that the issue of levying pre-payment penalty or pre-payment charges by housing finance companies on pre closure of housing loans by the borrowers out of their own sources has been considered by the National Housing Bank and it has been decided that housing finance companies should not charge prepayment levy or penalty in such …
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Increasing interest on your home loan? Try loan transfer!
ed on your request, the bank will give a consent letter / NOC and a statement mentioning the outstanding amount. This needs to be provided to the new lender who then sanctions your loan amount to the old lender for an account closure. Once the transaction is over, your property documents will be handed over to the new lender, the remaining post dated cheques / ECS will be cancelled. The bank you are shifting to will offer you a loan based on the …
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NHB to remove prepayment penalty on floating home loans
NHB said that it has planned to bring guidelines to remove prepayment penalties on all account. He said that there has to be a level playing ground for borrowers at large. Reports said that the HFCs were not charging any pre closure penalty from the borrowers in case they were prepaying the loan with their own money. The borrowers will have to pay pre closure penalty only if the money is borrowed from some other lender. Now the NHB’s direc…
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IDBI Bank has announced to repay the bonds
A recent press report said the Public sector bank IDBI bank has announced the book closure to repay the bonds of 2011 which is to be matured on December 16. The bank said that the principal amount of the 2011 bone series would be repaid at par on December 16th. The interest on these bonds would be accrued up to December 15. The 61st series book closure would be effective from November 16th onwards. The bank in its statement said that the investo…
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