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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!
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What’s a top up loan!
A top up loan basically allows you to avail a loan amount on top of your home loan. The usual loan tenure is about 10 years and is often offered only after a few years into the home loan disbursal, as this gives a fair idea about your repayment track record, which means no defaults down the line and this also increases your loan eligibility. Vinita Mistry took a home loan from her friendly neighbourhood bank two years ago. She bought a cute c…
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Understanding how to choose your home loan offer
The loan offer Gayathri obtained was a flat rate loan. Sanjana on the other hand, had shortlisted two reducing balance loan offers with different rest periods. As her calculations revealed the loan offer with a monthly rest turned out to be a better loan bargain than the one with an annual rest. For the twins Gayathri and Sanjana, fate intended that everything in their lives should happen in unison. Be it their first visit from the tooth fai…
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Posted in Home loan tips, Loans
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Loan against property vs. Personal loan
LAP (loan against property) is one of the cheapest retail loans after home loans; usually in the range of 12% – 16%. Since the rate of interest is lower, frequently LAP Equated Monthly Installments (EMI) turn out cheaper.Maximum loan eligibility is determined primarily by the value of the property and income. You may have a lot on your mind when it comes to sending your children for education abroad or maybe finance your business or ev…
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Posted in Home loan tips, Loans, Money management, Personal loans
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Know your personal loan!
The key to getting the best rate for a personal loan is by maintaining a clean credit history. Your credit history is recorded by the credit bureau (CIBIL) which in turn gives you a credit score. This is shared with banks. Banks will use this as the key parameter for determining the rate of interest on your loan and whether a loan should be provided to you in the first place or not. Good repayment track record will not only ensure quick approva…
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Posted in Loans, Personal loans
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How loan insurance can help in the hour of need
Loan protection insurance, or loan payment protection insurance, is a form of payment protection insurance. This type of insurance can help you protect your monthly loan payments if you become unemployed or suffer an accident or sickness. Loan protection insurance will typically be used to protect a home loan, car loan or even sometimes personal loans. Harshad was a young software professional working in a multinational company. After a few y…
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Posted in Insurance
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Double your tax saving, opt for a joint home loan!
To get the best out of the tax savings, it is good to let the partner with the higher pay make a higher contribution towards the home loan resulting in a better tax benefit collectively. In any case as both Niranjan and Chitra are earning, other expenses can be managed with the income of the person making a lesser share towards the loan. This would help you optimize the benefits from the tax exemption on principal and interest repaid. Niranja…
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Posted in Home loan tips, How To, Insurance, Loans, Tax, Tax strategies
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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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Things to remember about your personal loan
Evaluate all loan offers. The first condition for loan offer selection is the total money outflow that the loan will cost. The second factor is the EMI. A loan offer with a lower EMI and a longer tenure may seem attractive, as it could be easy on your purse strings, however not all such loans prove to be cost effective in the long run. Hence, first calculate the total loan cost and then try to opt for a higher EMI, which you can comfortably man…
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Posted in Loans, Personal loans
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When not to take a personal loan!
You can obtain a loan against the surrender value of your life insurance policy from the insurance company or from a bank or obtain a loan from your provident fund account if you have had an employee provident fund account for more than 5 years. The interest rates would definitely be lower compared to the personal loan interest rates. Whenever people have a requirement for some urgent cash and cannot come up with the amount needed with the reso…
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Posted in Money management, Personal loans
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Additional charges in a personal loan!
In today’s financial taking a personal loan to meet various kinds of requirements has become a common affair which thousands of young earning professionals are resorting to on a regular basis. However while opting for these seemingly easy and simple loans one needs to appreciate the additional fees and charges that are applicable over and above a high rate of interest on the borrowed capital in the case of a personal loan. The exact nature and …
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Posted in Juggling debts, Loans, Money management, Personal loans
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