Do Your Homework Before Choosing Your Home Loan

Almost everyone dreams to own a home. Earlier, the situation in India was different. People used to be afraid of availing a home loan because they used to think that only the affluent and those who belonged to the upper class could afford it. But thanks to the liberalisation and increases in incomes, a number of people who belong to the middle class also can decide to go for home loans for buying their homes.

A number of banks and non-banking financial institutions offer home loans. They make attractive offers also to inspire borrowers to avail these loans. The growth of the real estate sector in India has also been phenomenal in the recent decades. However, people should not make hasty decisions while availing these loans. They must gather all the information before choosing the perfect home loan that suits them. They must understand every factor involved in the loans, the terms that are imposed by the lending banks, the repayment options, etc.

SBI home loan, ICICI home loan, Axis Bank home loan etc and some of the loans offered by non-banking financial institutions like LIC Housing Finance Limited are quite popular. Some of these lending institutions provide loans not only for constructing or buying houses and apartments but for other related purposes as well. This means that we now have diverse products that have been designed to cater to the needs of various types of borrowers.

This seems to pose a challenge to the borrowers, but in reality, if borrowers do a good research, they can choose the most appropriate loan. Sites like BankBazaar.com are one-stop shops that provide customers with all the details. So, borrowers can visit these sites for knowing the details and making up their minds. Borrowers should take into account certain other factors also while choosing a property and while deciding on a loan.

Affordability

While choosing a property, customers should check if the property they are considering comes at a price they can afford. Though one may expect higher incomes in future, they should not commit the mistake of considering their future income while choosing the property because no one can predict how future events may turn in a person’s life. So, they should take only the present income into account while choosing a property and an appropriate loan suitable for it.

Choosing the Lending Bank

Borrowers should choose the lending bank that offers the best benefits and the most attractive features. They are advised to do their research thoroughly and shortlist at least 5 lending banks or institutions and study their features. They must study the quality of their services also. They can inquire with the past customers of the lending banks or visit their websites for assessing the quality of services they render.

Rates of Interest

Rates of interest may differ from one bank to another. Borrowers should know these details and choose the bank that offers the best rates.

Tenure of Repayment

Borrowers should choose the most appropriate repayment tenure because they should have sufficient disposable income for their monthly expenses.

In short, borrowers should take time to consider all aspects before finalizing a home loan option.

Author Bio –  S. Muthu Kumara Swamy – I have always been interested in personal finance and had an urge to explore a variety of finance products ranging from loans to investments. As a finance professional in my current role as a Content Manager, BankBazaar.com, I create video content on varied personal finance subjects for TV shows. I also manage online forum activities, social media and interactive online content initiatives.

Top 5 Ways to Pay Off Logbook Loans

Loan payments on top of rent, bills, food and other living costs can seem like a burden, and it’s often difficult to work out just where the money’s going to come from. But it needn’t bring you down – with a straightforward logbook loan there are a number of simple repayment methods you can draw on to keep on top of things.

Use a reliable lender with repayment options to suit you
There are many logbook loan lenders out there more interested in taking your money, or car, or both than helping those with short-term cash flow problems. Use a reputable, reliable company such as V5 Loans UK, with whom you can work together to come up with a loan repayment plan lasting up to 78 weeks on loans between £500 and £20,000.

Don’t be punished for paying early
Some logbook loan companies impose early settlement penalties – meaning that if you gain access to funds and choose to pay off what you owe over a shorter period then you will be charged extra. Choosing a lender like V5 Loans UK, who charge no early settlement fees, means that you’ll get no nasty surprises if you decide to pay off your loan sooner than planned.

Extra work
When you’re already working a gruelling forty-hour week, taking on more work may be the last thing you want to do. But even just one extra hour a day can make all the difference at the end of the month. If are paid by the hour, consider asking your manager if you can work an extra hour every day. On the national minimum wage of £6.31 an hour, an extra hour work a day will give you an additional gross sum of £126.20 at the end of the month – a tidy amount that could make a great deal of difference. If extra hours at your current workplace aren’t available, consider hospitality work on evenings and weekends – many agencies offer casual zero-hours contracts meaning you can choose to work at times convenient to you. Alternatively, if you fancy yourself as a writer, paid blogging websites such as Triond publish your content on other sites and pay you a share of the advertising revenue.

Alter your shopping habits
Substantial savings can be made from switching to non-branded food and toiletries, which are often indistinguishable from branded items and come at just a fraction of the price. A Panorama study showed that exchanging branded goods for ‘own’ brands yields a potential yearly saving of £4,000 – a figure which could pay off a large amount, or even all, of your logbook loan. Combine buying unbranded food with V5 Loans UK’s ‘no early settlement fees’ policy and you have a recipe for success.

Have a clear-out
Websites such as eBay, Gumtree and Amazon Marketplace are a great way to make some quick cash whilst clearing room in your home by getting rid of belongings you no longer need or use. Instead of allowing them to gather dust on a shelf, put your old DVDs, games and books up for sale and create wardrobe space by selling clothes you no longer wear – even if they don’t appear to be fetching a lot of money, it all adds up and in the end this could make a sizeable contribution to your repayments.

Though it may seem daunting, making small savings here and there and earning some extra cash isn’t difficult. Taking action today can ensure your logbook loan is paid off sooner rather than later, and a successfully paid-off loan can boost your credit score, making you more eligible for a loan from banks and other lending institutions.

Logbook Loans vs. Payday Loans – What Are The Differences?

Short-term solutions to cash-flow problems are heavily promoted across television and the Internet. So what is the best deal for consumers in need of immediate finance?

What may seem like the best choice, for anyone who needs fast cash, is a standard payday loan. Are there better alternatives on the market? A logbook loan from a regulated money lender like V5 Loans is, unlike payday loans, secured against the value of a vehicle. Both types of loan are considered to be short-term solutions. Take a look at the main differences between logbook loans and payday loans below:

Secured or Unsecured?

A logbook loan uses your vehicle as collateral to ensure a secured loan. V5 Loans is a secure alternative to unlicensed lenders. Since consumers are required to own a car that is free (or nearly free) of finance, this affects the eligibility of potential applicants. In contrast, payday loans are unsecured and present a higher risk to consumers in need of quick cash.

Credit Checks

Payday loans companies tend to perform extensive background checks on all applicants, and reject those with a poor credit history or zero credit rating. Conversely, V5 Loans do not perform credit checks on consumers, all they ask is proof of income and car ownership.

How Much Can I Borrow?

Payday loans provide considerably less money to successful applicants (at high APR rates) than sums agreed in a logbook loan. Logbook loan fees are dependent on a professional evaluation of your car and thousands of pounds can be paid out within 24 hours. Don’t forget, a high APR rate in a logbook loan is offset by a flexible service and complete transparency in the procedure. Therefore, it is important to contact a reputable and licensed loan lender like V5 Loans.

Loan Repayments

Get in touch with a money lender that does not charge early settlement fees, particularly if you acquire a logbook loan as the loan amount tends to be higher. Timely loan payments can boost your future credit rating, making your credit score a more attractive proposition with banks and other high street lenders.

Payment Methods

Check to see if the loan repayment schedule can be tailored to your lifestyle, a flexible loans service will incorporate a variety of payment methods, including bank transfers and standing order payments.

Choose a logbook loan company like V5 Loans for a hassle-free, straightforward and flexible loan arrangement. If you own a vehicle then a same day, secured loan will enable you to take control of your finances once more.

Need some extra money?

Need some extra money? Get a guarantor loan!

Let’s face it, at age 50 or above we are all already thinking about retirement (even though it still feels an age away). Well, if we are brutally honest, we have been thinking about it since we were 18… and maybe even earlier!

However, by the time we reach 50, the thought of retirement becomes much more real and when we are still struggling to make ends meet; retirement can seem much more of a dreaded reality than something we have been looking forward to for most of our lives.

I take incredible exception to a scaling down, ‘penny pinching’ mentality. Just because we are getting older does not mean that we should have to lower our standards in order to ensure that we maintain our standard of life.

Due to this, it is still important that we have exactly what we need in order to continue with our day to day lives. For example, if we need something fixing on our car after it has had an MOT or our boiler needs a repair because of a fault then we should not be scared to fix it purely because of the financial implications.

Despite this somewhat ‘care free and easy’ attitude, I know exactly what you are thinking while reading this: “I have a poor credit history and I have been denied a loan in the past. At my age, nobody will offer me a loan or credit.” This, however, could not be less true.

Despite credit history often being a barrier to securing a loan, we can now bypass our credit history by taking out out what is known as a ‘guarantor loan’ instead.

You are eligible for a guarantor loan if:

  • You have a friend or a family member who has agreed to be your guarantor if you are unable to pay your loan repayments.

  • Both you and your guarantor are in permanent employment.

You can even take a guarantor loan out if:

  • You have a poor credit history.

  • You have been decline for an unsecured loan.

In taking out a guarantor loan, you are able to rebuild your credit history and you do not have to secure the loan against your property as it is reliant upon a second person who will make the payment if you are unable to do so.

For more information on the finance of guarantor loans, visit 1st stop for quotes and more detailed information.

Four Tips To Pay Off Your Home Loan Faster

One of the ways many homeowners do to pay off their mortgage is to have the property refinanced. In a nutshell, mortgage refinancing is borrowing money from a lending company and using the money to pay off the first mortgage, with the property as collateral. While this is one way of taking care of your original mortgage, this does not change the fact though that you still owe someone money. It is just that the names, the loan terms, and the interest rate have changed.

There are better ways to pay off your home loan faster, and here are two tips to help you.

Pay More for Your Home Loan

One good way to pay off your home loan faster is to pay more. Not only will this shorten the duration of your home loan, but this will also help decrease your interest rate. Let us say for example that you are spending $100 for your family’s recreational activities (movies, takeout dinners, etc.) each month, then why not spend it on your home loan instead? An additional $100 monthly for your home loan is $1,200 yearly, saving you months of payments at the end of the home loan. Plus, there is also the reduced interest rate that you can enjoy if you pay more.

If you do not have $100 to spare, then you can simply round off your payments. Say for example you are paying $635 monthly, then why not pay $650 instead? The $15 may not seem much at first, but if you calculate your payments, you will be surprised to know that it just might save you from a couple of payments, for example.

So play with your mortgage calculator, shift figures around until you can find the perfect payment solution that will help pay off your home loan faster without tightening your belt up too much.

Spend Your Cash Windfalls Wisely

Let us say for example that you received a cash bonus or cash incentive from your employer for hitting your target quota or you received your yearly tax refund, what will you do? Go on a vacation with your family? Buy new gadgets for them? Pour the extra cash into your personal savings? Or pay off a big percentage of your home loan?

Separate your wants and needs. Vacation breaks and new gadgets are wants; things that you do not need right away. Savings and home loan, on the other hand, are needs; things that should matter to you. So spend your cash windfalls wisely; pour some into your personal savings, and pay off your home loan. That additional $2,000 you spend yearly on your home loan could mean, say for example, six years reduced from the original loan term.

Paying more for your home loan means living frugally and thriftily, but the sooner you pay off your home loan, the sooner you will get to enjoy your salary. Plus, think of the emotional and psychological benefits of being completely free from your home loan debts. After you have paid off your debts, you can enjoy your family vacations, your new gadgets, and your new home without the fear of losing it.

 

Author Bio: Jennifer Dalley is a freelance content provider for several finance sites and real estate blogs. If you want to enjoy affordable home loans, she recommends talking with your home builder for options. You can learn more here.

 

Instant Loan: A Prompt Response To Unforeseen Financial Fiasco

It is natural that you can find yourself in a situation that you badly needed cash to pay your daily financial obligation, and this is inevitable. You may need the cash that allow you to fulfill this sudden urgency. Instant loan can be your solution in such an affair, and you can use it for paying all of your outstanding bills and daily financial obligation. Loan market soared with the popularity over the years they offer and provide different loan types that cater to your needs, and they formulate the instant loan to cover all of your financial emergencies.

What Are The Types Of Loans?

Nowadays, finding an instant loan is quite easy and simple. Sometimes, you need the cash and you need it as soon as possible, but not all of the traditional and custom lenders are in this business, so it usually takes quality time and effort. Looking for the source that provides you immediately with a small amount of cash should be your main concern and you need the loan that suit this needs. For these cash constraints, many loan types are available when you badly one and these are as follows:

1) Cheque or check advance – known as the advance payroll and paycheck. This loan is usually a short – term loan with the repayment term of considerable time such as few days or weeks. This term also depends on the maximum amount you can generate and the amount you can pay in the standard payment period. Their collateral system usually involves your personal check for the loan. The lender can deposit it to their personal accounts when you did not pay your loan on the loan’s due date. Additional late fees may apply when your fund is not enough to cover this loan.

2) Automotive title loans – work in the same manner as a traditional or custom loan, but uses collateral such as an automotive title and do not need the extensive credit checks that the other loans do. The amount you can borrow is lower than the traditional loan, and you need to pay it back within 1 – 3 months.

3) Online loans – one resource that you can find this loan is through online. These lenders can provide and perform the instant credit checks easily when needed. They can provide instant access to the loan decision. They can also provide the same – day or next – day approach of loan decisions. This loaned cash electronically transferred to your personal check or saving accounts and repayments automatically deducted from the same account.

Why do you need instant loan?
You take instant loan mainly for your personal needs and use. This loan is to provide you with cash for emergency purposes and needs. You take a personal loan when you do not have sufficient cash on hands for urgent financial matters. If you have a steady income, you can easily take this loan for the fulfillment of your basic needs, and you can repay this loan easily.

The writer, Kevin Daniels, loves to blog about credits, loans and finance. He shares great insights about applying for instant loan .

10 Reasons Why Debt Consolidation Loans Can Be Your Savior

If you find yourself buried in debt, one of the best things that you could do is to go for debt consolidation loans. This loan procedure combines all of your unsecured debts into one monthly payment. Debt consolidation programs are offered by numerous professional corporations in order to help those who really are experiencing financial crisis. Here are ten reasons why debt consolidation is recommendable for you:

  • Low interest – Debt consolidation allows you to reduce the interest rates on your unsecured debts. An unsecured debt is a specific amount of money that you borrowed without using any collateral. This special type of debt has a high interest rate since the money borrowed is not secured against any asset or property. Of course, if you have a bad credit rating, the banks will require higher interest rates from you. If you will not go with debt consolidation, you will really end up paying a lot of cash just for interest. Without debt consolidation, the interest rates on unsecured debts could sum up to more than two times the amount of your original loan.
  • Minimized monthly payments – There are times when bills are too many that you even forget to take care of some of them. There are electricity bills, mortgage, business loans, and other stuff that pile up in your head. Too much bills can cause stress, frustration, and even depression. Even if you pay attention to your bills, you still find yourself being unable to pay each one of them. Debt consolidation allows you to focus on one single death.
  • Late fees and penalties are eliminated – You have done everything to come up with money for your bills. But just when you are about to pay, you realize that you have exceeded the due date. Late payments only mean one thing and that is more payments. You do not have worry about having to pay on time if all of your debts are consolidated.
  • Easy payment of bills – You only have to be concerned about one thing and that is the single payment plan. All those bills that you are always thinking of will be gone. Making multiple payments can really tiring.
  • Freedom from legal complications – There will be legal punishments for people who could not pay their debts. Of course, you would not want to end up in jail or get your assets recollected.
  • Counseling sessions – Debt consolidation companies will conduct counseling sessions for their clients. You will definitely learn a lot about budgeting and other financial tips.
  •  Professional advice – Aside from the helpful counseling sessions, you will also obtain professional advice from experts regarding your financial problems. Not all people are born with financial management gifts. If you consider yourself as one of those who are really poor in handling money, the professional advice from debt consolidation experts can really be helpful.
  • Relief from creditors – One irritating thing about being buried in debt is that your creditors will always chase after you. They will never stop reminding you about your debts until all of these things have been paid. They will do everything to contact you. They will call you, knock on your door, and even visit you personally. If you go for debt consolidation, you will definitely get relief from these pesky creditors.
  • Unnecessary declaration of bankruptcy – Most people who find their own selves owing a lot of money usually file for bankruptcy. Filing bankruptcy is ideal only in some cases. It also has is own share of disadvantages. If a person files bankruptcy, most of his assets could be seized from him.
  • Get free from debt easily – A lot of people have already been free from the bonds of debt because they considered debt consolidation. If the payments are not that high, you can easily consider yourself free from debt in just a couple of years.

All in all, these are the ten reasons why you should go for debt consolidation. The procedure can really be helpful to anyone who wants to get out of debt as soon as possible. However, you should also consider be careful about choosing debt consolidation companies. Make sure you select the one which will really help you pay all your debts.

Jeff Lobo helps you find a Structured Settlement Buyer and provides information on how you can manage your expenses well on his website.

Startup Loans Primer

Startup Loans Primer

For those starting a new business, having a few million dollars to pay for startup costs would be ideal. It would be ideal, yes. But it’s not reality.

Reality is that for most entrepreneurs, you must prove your concept before anyone will put up that kind of money. However, most businesses require some sort of initial capital for things like inventory, marketing, physical facilities, incorporation expenses, etc. When exploring your funding options, there are several factors to consider:

• Are your needs short- or long-term? How quickly will you be able to pay back the startup loan or provide a return on investment?

• Is the money for operating expenses or for capital expenditures that will become assets, such as equipment or real estate?

• Do you need the money in smaller increments over a period of time or do you need all the money now?

• Are you willing to assume all the risk if your company doesn’t succeed, or do you want someone to share the risk?

The answers to these questions will help you determine which funding option is the right move for you. There are a couple of options to consider. Debt financing is when you borrow the money and agree to pay it back in a particular time frame at a set interest rate. Equity financing is when you sell partial ownership of your company in exchange for cash. The investors are responsible for all or most of the risk.

There are many options available for startups. First of all, your best resource is still friends and family. However, credit cards are also a good tool to use and can help with cash flow management. If you use this option, you should keep one or two cards with no balance and then pay it off every month to give yourself a 10- to 60-day float with no interest.

Bank loans come in all shapes and sizes, from microloans to six-figure loans. These are easier to obtain when backed by a third-party guarantors or by assets. If you need equipment, vehicles or even computers, leasing is the way to go. Angel investors fill the gaps between friends and family and venture capitalists. When the bank says no, private lending represents a viable alternative.

There are many channels available to you to raise capital. All of the above approaches have numerous variations. Put together a solid business plan, talk to a financial adviser and just start asking. Eventually someone will say yes.

Getting The Lowdown On Car Loans

Having a car of your own has become one of the top most priorities of today’s generation. Every individual aims to get his dream car by saving money from high school days. The car one dreams about may not necessarily be something out of this world but it is more precious than anything to someone who is having it for the first time. But you may often need to go an extra mile on saving money to get an insurance done for your car. By introducing secured car loans, banks have done such a mercy on people who had been saving money for quite some time.

The most outstanding perk of these secured car loans is that you don’t get to pay interest money while paying off your loan. The loans are available in different denominations ranging from $2000 to $50,000. The refund time also vary relying primarily on how much loan you owe. However, before getting secured car loans you need to make sure that the value of your possessions or assets are in accordance with the loan, you are intending to borrow. In case if you are not able to pay back loans in time, your asset will become bank’s property. However, the borrower has to pay less interest as compare to the one who buys unsecured car loans.

With the help of auto secured loans, you can buy whatever type of car you like. Furthermore, you retain the choice of how you are going to pay back the loan and in what time frame. If you want to stay away from the hassle of being in long queues, then all you have to do is to fill out an online form that asks you brief details about yourself and the amount you need. This method will help you get the required amount transferred in your account, within hours and that too without much hassle.

These kinds of leasing options have made life much easier. Now if you are a sports freak and want to get to the pitch on time, a car loan is the best thing to get your own car. If you are a housewife who needs to get groceries everyday and superstore being far away from your house, then car loans are best things on earth to buy a car.

However, there are certain conditions that need to fulfill in order to get car leasing options. You have to be 18 years or older in order to have a valid bank account. You need to be the local citizen in order to qualify for any kind of car loan, be it secure or unsecured. Once you fulfill these conditions, you need to check the documents of your assets if they are verified and available to be presented to bank manager. It is better to consult your regular bank manager before buying car loans. In this way you can achieve best results in no time.

Home Owners Caught up In Subprime Crisis

Struggling borrowers are getting deeper into trouble with the subprime interest rate crisis worsening. Many mortgage holders have been unable to wait and have had to foreclose on their homes, putting them in a worse position as far as living conditions are concerned. So many people continue to try and solve the situation, but in the mean time, many dreams are in ruins.

The option to consolidate all debts is difficult at this time because of increased interest rates. As the financial situation deteriorates, the major lenders have made it increasingly difficult for borrowers to consolidate their loans. There is an increase in the numbers of home owners who are failing to make their mortgage repayments on time because of this situation. There has been speculation that subprime mortgage rates may be frozen, but only if the loan is not in arrears.

The big financial companies are under increasing pressure to apply this action to freeze sunprime mortgage rates for those who are meeting their monthly payments but will be unable to manage an increased rate. Subprime loans with adjustable rates, that usually increase after a ‘honeymoon’ period of 1 or 2 years, are the ones targeted by the proposal to freeze increases in interest. With interest rates frozen, there would be no increase in repayments and the borrower would continue to make the same repayments as they did in the introductory period.

The proposal will definitely be of benefit to home owners who can keep paying the same amount in the future, if interest rates stay the same. The aim is the relief of the mounting pressure on the borrower to manage to keep their mortgage payments up to date. Many homeowners have been placed under enormous stress because of the subprime mortgage crisis, as they struggle to meet their commitments. The ideal outcome of such a move as this would be renewed growth for the financial sector and the real estate market. This forward-thinking plan won’t be able to go ahead unless the major lenders give it their support and cooperate with the government, and investors are watching the outcome.

The big financial institutions were not rewriting the majority of their risky loans and chose to negotiate with each borrower. The federal government has been advising mortgage holders in difficulties to talk to their lenders and try to come to some arrangement to prevent sudden foreclosure.

The average introductory interest rate was around 8.5% in 2006, intending to be subject to resetting in 2008 when interest rates had climbed closer to the 11% mark. with the typical mortgage at $300,000, repayments would increase by $500 and this would be almost impossible for many borrowers who were already struggling to meet their repayments. This situation has not changed for many mortgage holders.

During the early planning, while government and major lenders were still in discussions, there was no hint as to how long the interest rate freeze would be continued. With the time period of from one to seven years being considered, so many borrowers will be able to relax a little.

For mortgage holders thinking of consolidating their debt, the advice would be to fully investigate the options before proceeding, so you are able to make educated decisions about your financial future.