Home Equity Loan

Home Equity Loan is a loan in which your home is pledged as collateral. These loans

tend to have fixed interest rate and fixed repayment schedule. They are vital to finance

some of your main expenses like repairs, renovation, medical bills, college education etc.

Estimating Home Equity

Now the next question arises as to how to estimate your home equity. It can be

calculated by subtracting all your debts from value of home.

Types of Loan

Home Equity Loan can be categorized into two parts

Home Equity Loan- In Home Equity Loan banks pays a Lumpsum amount as credit and

individual needs to pay a set monthly amount as repayment.

Home Equity Line of Credit- In home equity line of credit certain loan amount is

approved by financial institution. It’s like cheque book with an approved amount. You

can utilize that money from your account and then repay it with interest.

Advantages of Home Equity Loan

The major advantages of home equity loan are enlisted below

• Interest Rate that you pay on your home equity loan is pretty much lower than

      any unsecured loan.

• Home Equity Loans, proffer tax incentives like interest paid on home equity loan

      is tax deductible.

• In case you have bad credit then also you can qualify for this loan.
• The amount of loan that you can borrow is huge.
• It can be used for various purposes like funding for education, for home

      renovation or repair and for vacation.

Disadvantages of Home Equity Loan

• The major disadvantage of Home Equity Loan is that you need to forfeit your

       home if you are unable to pay your installment so your home is at risk.

• Secondly, if your home value drops then you are at risk.
• It’s quite perilous if you are gearing towards change in your career.

Is it right for you?

So, are you wondering whether home equity loan is right for you or not. Home Equity

Loan is viable for all those who are seeking for Lump sum amount and want to reap long

term benefits like home renovation etc.

Home Equity Lines of Credit is good for all those who are concentrating on short term

goals. It is good way to meet all your requirements for unanticipated or immediate

financial needs.

Henceforth, before considering any option you need to consider long term effects. Just

to pinpoint a misconception in your mind Home Equity Loans are not an immediate

solution for your woes. Make all your decisions wisely.

Use online calculator for calculating installments of loans.

Project Loan

Project loan is granted by banks or financial institution for purpose of business diversification, expansion or reconstruction etc. It is available for purposes like To acquire fixed assets like land and building, plant & machinery. These loans are available to both existing industrial houses and new entrepreneurs who need seed capital or start up capital. They can be mid term or long term loan but lenders consider short term loan only if project is feasible and truly worthwhile. The tenure for short term loan can be 1 year but for mid year the tenure may vary upto 10 years.  The rate of interest is quite competitive and may be affected depending upon economic conditions.

Business

These loans can be granted to following businesses

·         Construction and infrastructure

·         Engineering

·         Automobile

·         Power & Gas

·         Petrochemical Industries

These are some of businesses that leverage on the project loans.

Eligibility

Before applying to project loan you need to fulfill following eligibility criteria

·         Detailed Project Report based on that bank or financial institution will grant the loan.

·         Good credit record

·         Brawny Solvency ratio

·         Strong management

·         Technology penetration etc

Are some of the benchmarks against which you will be provided loan.

Project Loan in India

Project Loans are of huge scope in India and due to present scenario its importance has all the more increased. It is of huge demand where funds are required by new entrepreneurs to start a new venture or for further development of their business.  The nature and feasibility of the project determine eligibility of applicants.

Moreover, these loans are granted hassle free and at competitive interest rates. So, anyone can take this loan provided you fulfill the eligibility requirements. But you must plan for the loan installment monthly otherwise banks may charge penalty fees.

Use online calculator for calculating loan installments.

Car Loan

Now that you have selected car for you the next step is financing. Although you can pay amount in cash but car financing has varied advantages

•  It can immediately provide you car of your choice.
•  Flexible repayment schedule
•  Varied costs like registration cost, road cost, insurance cost can come under car financing agreement.
• Fixed payments allow for more accurate budgeting.
• Flexible, transparent and cost effective car loans can be availed by you.
• Competitive interest rates are available.
• Worry free procedure are available to avail this kind of loan.
• Streamlined car finance process ensures that your dream car is within your reach           
• Regardless of your choice (hatch back, luxury sedan) they lend you loan.
• These loans can be taken by self employed, salaried, proprietorship and partnership firms.
• Car Loan tenure may vary from 1 year to 5 year
• You can calculate your monthly repayments using car loan calculator
• Banks provide transparent information about car loan
• Payments can be directly debited from nominated bank account.
• Even car dealership firms aid you in taking the loan
• A deposit may or may not be required and you may also receive certain benefits for both short term and long term.

Eligibility

Car loan can be taken by both salaried employees and self employed. Most banks offer loan that can be repaid within 5 years. The quantum of loan will depend upon your income, employment history and car make. Banks limit your EMI to 50 percent of monthly income.

Fees

Banks charge following fees from borrowers

Processing Fee- Generally 1 percent of loan amount is charged as processing fee.

Prepayment Charges- If you repay car loan earlier than prescribed time frame then lenders charge foreclosure fees of about 4 percent of foreclosure amount is charged.

Thus, these banks provide tailor made car loan products at attractive rate but it all depends upon your credibility.

You can use car loan calculator  for calculating you car laon installments.

Investment Options in India

An investor can choose innumerable investment options depending upon his risk profile. Here we elucidate some of the options.

Fixed Deposit- If investor is conservative then he can choose this option. It is also known as “low risk low return”. The major drawback is that the returns can be completely wiped out owing to spiraling inflation.

Bonds- Bonds can be categorized into two parts

* Corporate Bond- It is meant for all those investors whose risk appetite is great i.e. for aggressive investors. The returns proffered are quite high simultaneously risk is quite high too. In case the company goes bankrupt investor won’t receive  even his principal amount.

* Govt Bond- It is safe and secure mode of investing. They offer assured returns and standard income.

Equity- The other major source of investment is stock market. It is bit risky if you have shorter time horizon but if you can keep your investment for longer period of time then it will provide you assured returns. Investors can invest in different companies through equity mutual funds, SIP etc which is managed by professionals.

Insurance- Insurance is the best way to indemnify your life and assets. Many insurance options are available in market like health insurance, home insurance, life insurance, car insurance etc.

NSC- National Saving Certificate is secured govt investment with lock in period of 7 years. The investor is entitled to interest which is forfeited two times a year. Moreover, NSC falls under Section 80C of IT act and profit accrued is valid for tax deduction.

PPF- Investment in PPF is supported by govt. It also falls under category of Section 80C of income tax act so investors can gain from income tax deduction. The rate of interest is evaluated yearly and has lock in tenure of 15 years.

Real Estate- Real Estate is good source of investment. It is termed as money making industry.

Investments in Gold Deposit- Many gold deposit schemes are available in market. Investments in this scheme are opened for HUF, firms, trust with no upper limit. Gold bonds are not entitled to capital gains tax and wealth tariff.

Thus, depending upon your risk appetite you can chose from various modes of investment.

Use onlinecalculator for various financial calculations.

Investment in Gold

Earlier Gold was considered as an essential commodity in Indian household but now it is a good investment option. If you compare returns then gold luster has blunted even the stock market yield. According to statistics, Gold has provided 50 percent more return as compare to Nifty and Sensex.

Example- If an investor has invested Rs 1, 00,000 in Gold then after a year he may have earned Rs 1, 50,000 whereas if investor has invested Rs 1, 00,000 in share market then he would have lost Rs 10,000 i.e. his returns would be Rs 90,000.

Today we are facing political turmoil in countries like India, America and Israel due to such political uncertainties investor wants to invest in gold and not in share market but when this turmoil will calm down then investors would again switch to share market but when these conditions will pacify is matter of time so due to these qualms gold has witnessed growth of Rs 1000 per day but you should never invest only by looking at statistics. From the very beginning gold is subject to volatility. So, if you want to invest in gold then invest at right price and when you earn profit from it then sell it. Otherwise also if   you want to invest in gold then make a proper plan. You can invest via gold SIP or mutual funds that invest in gold. For this scheme the tenure and purpose should be clear to you. The purpose can be marriage of your child and tenure should be as long as 20-25 years. So, if ever you invest Rs 1000-2000 then till time of your child marriage you will have enough returns.

This is not the end of story so don’t forget the old adage of investment” Don’t put all your eggs in one basket” so simply don’t invest all money in one avenue only. Bank FD or Post office savings are always a best and secure source of investment so invest some money in that too. Hence, if you diversify your portfolio then you can fetch higher and secured returns and moreover during exigencies withdrawing of money would be faster and easier. So, invest wisely and smartly and become a millionaire.

You can use this online calculator for calculating your financial goals.

Reasons to use Internet Banking

Earlier bank confined itself with administration of its own specific branch and their main function was to accept and lend deposits but with passage of time the traditional brick and mortar building transformed itself into an online hub where customers can transact on 24x7 basis.

It is not a fad that will come and go but it is necessity. Hereby, we provide you certain concrete reasons to switch to internet banking

• The traditional banking hours are from 9 to 3 but through this (Internet Banking) you can bank on 24x7 bases.

• You can easily check your account balance, order cheque, make stop payment etc.

• It adds mobility which means you can transact your business while you don’t have PC i.e. from Smartphone like apple iphone or blackberry.

• You can make direct deposits in bank without even visiting the branch. This is really a double benefit especially when you don’t have time to deposit salary through cheque also money goes into bank more rapidly thereby you to earn interest more quickly.

• With automatic bill payment facility you can pay your bills automatically and you need not to stand in queue for long time.

• Other transaction that you can perform through internet banking are transfer funds between two or more accounts, check your statements on online basis and apply for loans etc.

• It is more cost effective as services provided through online banking is either of very low cost or it may be even free.

• It will never hamper your credibility as through this option you can make your payments any time of day, no matter in which part of the world you are.

Thus, Internet Banking has brought insurgency in banking field. The net banking is now a norm rather than exception in developed countries. All you need to be smart about the way to use Internet Banking as an option.

Use online calculator for calculating your loan installments.

How safe is internet banking

Internet Banking is just like revolution in banking field. It has automated all the manual tasks and has brought innumerable advantages to consumers but the question still remains in our mind how safe is internet banking. The answer is it all depends upon you and your bank.

Hereby, we present you tips to keep fraudsters away

•Do check URL of bank website and if you find anything suspicious then do report to nearest branch.

•Never enter your user id and password or any confidential information without ascertaining that you are on right website.

•Check internet banking policy of your bank as in some cases banks have enhanced security measures i.e. if the money exceeds particular sum then you need to enter your confidential details again.

•Keep changing your passwords at least once in a month and don’t keep your passwords as easy as anyone can guess you can include certain alphanumeric characters to make password difficult to guess.

•Keep your operating system and browser up-to-date with latest security update.

•When banking session is over then do log out.

•Install a firewall to prevent hackers from any unauthorized access.

•Updation of anti virus software is must.

•Today many banks have last logged in panel; from there you can check if there is any irregularity and if you find any then do report to your nearest branch.

•Don’t leave your PC unattended while transacting.

•Phishing mails may attack you but be careful don’t provide them your confidential information.

•While logging on many browsers will provide an option to save your username and password but don’t click on auto save option.

•If you have numerous bank accounts then avoid using similar password for every bank account.

•The major mistake anyone can make is accessing internet banking option through cyber café or through public computers. It is biggest threat to your confidential information.

• Do check for closed padlock symbol in browser while entering your confidential details.

Thus, Internet Banking is quite safe and secure if and only if you understand its nitty gritties and remember the old adage “Precaution is better than cure” hence use the above mentioned tips.

For loan installments calculation visit online calculator.