Personal Loans
Personal loans help you to take care of your immediate requirements without much of a hassle. The most attractive feature of the personal loan is that you do not have to give any kind of security to avail this loan. No Security, Collateral or Guarantors are required to avail personal loans. Also, no questions regarding the end use of the loan are asked.
The maximum amount of personal loan for which you are eligible depends upon your net salary take home. Loans are repayable in equal monthly instalments or EMIs. Loan tenure varies from 1 to 5 years. Since personal loans do not require any security or hypothecation of assets, the rate of interest charged by them is higher compared to any other secured loans.
Sunday, May 11, 2008
Loan Against Automobiles Cars
Loan Against Automobiles
Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan. The money can be utilized for personal as well as business needs.
The overdraft amount that can be sanctioned is upto 80% of the value of the car. All vehicles are valued by Bank empanelled valuers. To receive the overdraft amount, a Current Account with an overdraft limit is created in borrower's name. The interest is charged only on the amount withdrawn. Most of the banks give overdraft facility even if the car is hypothecated in another financier's name. Usually the overdraft facility is not given if the car is more than 9 years old.
Loan against auto is available in the form of overdraft against car. The rate of interest is lower than interest in case of personal loan. The money can be utilized for personal as well as business needs.
The overdraft amount that can be sanctioned is upto 80% of the value of the car. All vehicles are valued by Bank empanelled valuers. To receive the overdraft amount, a Current Account with an overdraft limit is created in borrower's name. The interest is charged only on the amount withdrawn. Most of the banks give overdraft facility even if the car is hypothecated in another financier's name. Usually the overdraft facility is not given if the car is more than 9 years old.
Saturday, May 10, 2008
Education Loans in India
Education Loans
Education is the essence of life. To ensure that no deserving student is denied education for want of funds government is promoting education loans in a big way.
Any student who has secured admission in any institute of repute, whose degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical Education) and other institutes of repute, is eligible for educational loan.
Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered. Maximum amount of education loan available is upto Rs. 7.50 lakhs in case of studies in India and Rs 15 lakhs for studying abroad.
The loan has to be repaid within 84 months in equated monthly instalments (EMIs) commencing 12 months after course completion or 6 months after getting the job, whichever is earlier.
Following document are required to be submitted with the loan application:
* Mark sheet of last qualifying examination for school and graduate studies in India
* Proof of admission to the course
* Schedule of expenses for the course
* Copies of letter confirming scholarship, etc.
* Copies of foreign exchange permit, if applicable.
* 2 passport size photographs
* Statement of Bank account for the last six months of borrower
* Income tax assessment order not more than 2 years old
Education is the essence of life. To ensure that no deserving student is denied education for want of funds government is promoting education loans in a big way.
Any student who has secured admission in any institute of repute, whose degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical Education) and other institutes of repute, is eligible for educational loan.
Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered. Maximum amount of education loan available is upto Rs. 7.50 lakhs in case of studies in India and Rs 15 lakhs for studying abroad.
The loan has to be repaid within 84 months in equated monthly instalments (EMIs) commencing 12 months after course completion or 6 months after getting the job, whichever is earlier.
Following document are required to be submitted with the loan application:
* Mark sheet of last qualifying examination for school and graduate studies in India
* Proof of admission to the course
* Schedule of expenses for the course
* Copies of letter confirming scholarship, etc.
* Copies of foreign exchange permit, if applicable.
* 2 passport size photographs
* Statement of Bank account for the last six months of borrower
* Income tax assessment order not more than 2 years old
Friday, May 9, 2008
Home Loans
Home Loans
To have one's own home is the dream of every person. Now that getting a home loan is so easy it seems everyone can fulfill his / her long cherished dream. There are different types of home loans tailored to suit your requirements. These are:
Home Purchase Loans: This is the basic home loan for the purchase of a new home.
Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.
Home Construction Loan: This loan is available for the construction of a new home.
Home Extension Loan: This is given for expanding or extending an existing home. For e.g.: addition of an extra room etc.
Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes.
Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.
Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
Refinance Loans: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Home loans are available on fixed rate of interest and floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. But the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending
In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because you are taking on some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up paying more than fixed rate loans.
To have one's own home is the dream of every person. Now that getting a home loan is so easy it seems everyone can fulfill his / her long cherished dream. There are different types of home loans tailored to suit your requirements. These are:
Home Purchase Loans: This is the basic home loan for the purchase of a new home.
Home Improvement Loans: These loans are given for implementing repair works and renovations in a home that has already been purchased by you.
Home Construction Loan: This loan is available for the construction of a new home.
Home Extension Loan: This is given for expanding or extending an existing home. For e.g.: addition of an extra room etc.
Home Conversion Loan: This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.
Land Purchase Loans: This loan is available for purchase of land for both construction and investment purposes.
Bridge Loans: Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.
Balance Transfer Loans: Balance transfer loans help to pay off an existing home loan and avail the option of a loan with a lower rate of interest.
Refinance Loans: This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loans: This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.
Home loans are available on fixed rate of interest and floating rate of interest. In fixed rate loans, the interest rate remains fixed over the life of the loan, irrespective of the interest rates in the open market. The plus point of fixed rate loans is that they remain steady over the years, making at least one aspect of your monthly cash flow predictable. But the flip side is that the lenders charge a higher rate of interest for fixed-rate loans because if interest rates shoot up, they lose the opportunity to make more money on the funds they are lending
In floating rate loans, the rate of interest changes according to a set formula as interest rates fluctuate in the open market. The plus point is that lenders charge a lower rate for such loans because you are taking on some of the interest-rate risk. The downside is that interest rates may rise anytime and you can end up paying more than fixed rate loans.
Deposit Scheme Retiring Government Employees
Deposit Scheme for Retiring Government Employees
This scheme is open to retired Central and State governments' employees and retired judges of Supreme Court and High Courts. The account can be opened at designated branches of Public Sector Banks throughout the country.
Minimum deposit limit to open the account is Rs 1000, while the maximum limit equals total retirement benefits in multiple of one thousand rupees.
Retirement benefits means:
* Balance at the credit of employee in any of the Government Provident Funds
* Retirement / Superannuation gratuity
* Commuted value of pension
* Cash equivalent of leave
* Savings element of Government insurance scheme payable to the employee on retirement.
The account can be opened individually or jointly with his / her spouse. The account matures for closure after three years. Account can be continued with the whole or a part of the deposits after maturity. Premature withdrawal is permissible after completion of one year and before completion of three years on reduced interest rate.
Interest at the rate, notified by the Central Government from time to time, is credited and payable on half yearly basis. Present rate of interest is 7% per annum. Interest accrued / credited / paid is fully tax-free and amount deposited under the scheme is free from wealth tax.
This scheme is open to retired Central and State governments' employees and retired judges of Supreme Court and High Courts. The account can be opened at designated branches of Public Sector Banks throughout the country.
Minimum deposit limit to open the account is Rs 1000, while the maximum limit equals total retirement benefits in multiple of one thousand rupees.
Retirement benefits means:
* Balance at the credit of employee in any of the Government Provident Funds
* Retirement / Superannuation gratuity
* Commuted value of pension
* Cash equivalent of leave
* Savings element of Government insurance scheme payable to the employee on retirement.
The account can be opened individually or jointly with his / her spouse. The account matures for closure after three years. Account can be continued with the whole or a part of the deposits after maturity. Premature withdrawal is permissible after completion of one year and before completion of three years on reduced interest rate.
Interest at the rate, notified by the Central Government from time to time, is credited and payable on half yearly basis. Present rate of interest is 7% per annum. Interest accrued / credited / paid is fully tax-free and amount deposited under the scheme is free from wealth tax.
Thursday, May 8, 2008
Business Loans in India
Business Loan
Several banks give loans to cater to business requirements. Banks have laid out a number of products specifically catering to SSI (small-scale industries) and Small Business Borrowers.
Business loans are available to firms and corporations to meet their operating expenses; to finance for capital expenditure / acquisition of fixed assets towards starting / expanding a business or industrial unit; and to swap existing high cost debt from other bank / financial institution etc.
Apart from providing funding bank can also issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, government departments for the procurement of goods and services on credit.
Maximum amount of business loan that can be sanctioned varies from bank to bank. Generally, the maximum loan amount is Rs. 25 lakhs and maximum loan tenure is 5 years.
Several banks give loans to cater to business requirements. Banks have laid out a number of products specifically catering to SSI (small-scale industries) and Small Business Borrowers.
Business loans are available to firms and corporations to meet their operating expenses; to finance for capital expenditure / acquisition of fixed assets towards starting / expanding a business or industrial unit; and to swap existing high cost debt from other bank / financial institution etc.
Apart from providing funding bank can also issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, government departments for the procurement of goods and services on credit.
Maximum amount of business loan that can be sanctioned varies from bank to bank. Generally, the maximum loan amount is Rs. 25 lakhs and maximum loan tenure is 5 years.
Savings Bank Account
Savings Bank Account
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earn moderate interest too. The rate of interest is decided and periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half yearly.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors. Savings Bank Accounts can also be opened and operated by the minors provided they have completed ten years of age. Accounts by Hindu Undivided Families (HUF) not engaged in any trading or business activity, can be opened in the name of the Karta of the HUF.
The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank. It is less in case of public sector banks and comparatively higher in case of private banks. In most of the public sector banks, minimum balance to be maintained is Rs. 100. In accounts where cheque books are issued, a minimum balance of Rs. 500/- has to be maintained. For Pension Savings Accounts, minimum balance to be maintained is Rs. 5/- without cheque facility and Rs. 250/- with cheque facility.
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that Savings Bank Account earn moderate interest too. The rate of interest is decided and periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half yearly.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors. Savings Bank Accounts can also be opened and operated by the minors provided they have completed ten years of age. Accounts by Hindu Undivided Families (HUF) not engaged in any trading or business activity, can be opened in the name of the Karta of the HUF.
The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank. It is less in case of public sector banks and comparatively higher in case of private banks. In most of the public sector banks, minimum balance to be maintained is Rs. 100. In accounts where cheque books are issued, a minimum balance of Rs. 500/- has to be maintained. For Pension Savings Accounts, minimum balance to be maintained is Rs. 5/- without cheque facility and Rs. 250/- with cheque facility.
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