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 The interest is charged only on the amount withdrawn.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 The interest is charged only on the amount withdrawn.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.
Wednesday, May 7, 2008
Auto Loans India
Auto Loans
With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream car. Loans are available both for the new cars and old cars.
Before deciding on an auto loan look for various auto finance schemes available in the market. You can choose from margin money schemes, advance EMI's schemes and deposit payment schemes. The size of the loan will depend upon the cost of the vehicle, the type (standard or premium) and the percentage financing you are offered. In case of a new car you can get loan up to 90% of cost of the car. Some finance agencies have a limit beyond which they do not offer loans. Most of the financiers have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults, the finance company can get a higher resale value for the car. Therefore, the finance company may give higher percentage of finance.
There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which is cancelled after the loan is repaid.
Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes, which offer loans for 7 years.
With a plethora of auto loans opportunities available these days, it is now possible for you to buy your dream car. Loans are available both for the new cars and old cars.
Before deciding on an auto loan look for various auto finance schemes available in the market. You can choose from margin money schemes, advance EMI's schemes and deposit payment schemes. The size of the loan will depend upon the cost of the vehicle, the type (standard or premium) and the percentage financing you are offered. In case of a new car you can get loan up to 90% of cost of the car. Some finance agencies have a limit beyond which they do not offer loans. Most of the financiers have different terms for different models. For example, Maruti 800 has a high resale value. In case the buyer defaults, the finance company can get a higher resale value for the car. Therefore, the finance company may give higher percentage of finance.
There is no necessity for any collateral to get a car loan. Usually, the bank or finance company hypothecates the car in its name. The endorsement for hypothecation is made in the Registration Certificate (RC) book of the vehicle, which is cancelled after the loan is repaid.
Usually the tenure of auto loan varies from 1 to 5 years. However, there are some banks with schemes, which offer loans for 7 years.
Demat Account
Demat Account
Demat refers to a dematerialised account. Demat account is just like a bank account where actual money is replaced by shares. A Demat Account is required to buy or sell stocks.
A Demat Account holds portfolio of shares in electronic form and obviates the need to hold shares in physical form. Nowadays, Securities and Exchange Board of India (SEBI) has made electronic trading of shares mandatory, hence a demat account is must for trading and investing in shares.
A Demat Account offers a secure and convenient way to keep track of shares and investments without the hassle of handling physical documents that get mutilated or lost in transit.
Demat refers to a dematerialised account. Demat account is just like a bank account where actual money is replaced by shares. A Demat Account is required to buy or sell stocks.
A Demat Account holds portfolio of shares in electronic form and obviates the need to hold shares in physical form. Nowadays, Securities and Exchange Board of India (SEBI) has made electronic trading of shares mandatory, hence a demat account is must for trading and investing in shares.
A Demat Account offers a secure and convenient way to keep track of shares and investments without the hassle of handling physical documents that get mutilated or lost in transit.
Bank Fixed Deposits
Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest.
The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 7days to 10 years. The interest is compounded annually and is added to the principal amount. Minimum deposit amount is Rs 1000/- and there is no upper limit.
Loan / overdraft facility is available against bank fixed deposits. Premature withdrawal is permissible but some penalty is levied. Tax Deductible at Source, if the interest paid/ payable on deposit exceeds Rs.5000/- per customer, per year, per branch.
The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 7days to 10 years. The interest is compounded annually and is added to the principal amount. Minimum deposit amount is Rs 1000/- and there is no upper limit.
Loan / overdraft facility is available against bank fixed deposits. Premature withdrawal is permissible but some penalty is levied. Tax Deductible at Source, if the interest paid/ payable on deposit exceeds Rs.5000/- per customer, per year, per branch.
Tuesday, May 6, 2008
Reserve Bank of India
Reserve Bank of India
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Though initially RBI was privately owned, it was nationalized in 1949. Its central office is in Mumbai where the Governor of RBI sits. In addition, RBI also has 22 regional offices and most of them are located in state capitals.
Major functions of Reserve Bank of India:
* Formulates, implements and monitors the monetary policy to maintain price stability and to ensure adequate flow of credit to productive sectors.
* Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
* Manages the Foreign Exchange Management Act, 1999.
* Issues and exchanges or destroys currency and coins not fit for circulation.
* Performs merchant banking function for the central and the state governments; also acts as their banker.
* Maintains banking accounts of all scheduled banks.
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Though initially RBI was privately owned, it was nationalized in 1949. Its central office is in Mumbai where the Governor of RBI sits. In addition, RBI also has 22 regional offices and most of them are located in state capitals.
Major functions of Reserve Bank of India:
* Formulates, implements and monitors the monetary policy to maintain price stability and to ensure adequate flow of credit to productive sectors.
* Prescribes broad parameters of banking operations within which the country's banking and financial system functions.
* Manages the Foreign Exchange Management Act, 1999.
* Issues and exchanges or destroys currency and coins not fit for circulation.
* Performs merchant banking function for the central and the state governments; also acts as their banker.
* Maintains banking accounts of all scheduled banks.
Current Account
Current Account
Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of the business, hence they are non-interest bearing accounts.
In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit.
Current Account can be opened by:
* an individual who has attained majority.
* two or more individuals in their joint names.
* sole proprietorship concerns.
* partnership concerns.
* Hindu Undivided Family.
* Limited Companies.
* Clubs, Societies.
* Trusts, Executors and Administrators.
* Others - Govt. and semi Govt. bodies, local authorities etc.
Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of the business, hence they are non-interest bearing accounts.
In a Current Account, a customer can deposit any amount of money any number of times. He can also withdraw any amount as many times as he wants, as long as he has funds to his credit.
Current Account can be opened by:
* an individual who has attained majority.
* two or more individuals in their joint names.
* sole proprietorship concerns.
* partnership concerns.
* Hindu Undivided Family.
* Limited Companies.
* Clubs, Societies.
* Trusts, Executors and Administrators.
* Others - Govt. and semi Govt. bodies, local authorities etc.
Banks in India
India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. Indian banks have played a significant role in the development of Indian economy by inculcating the habit of saving in Indians and by lending finance to Indian industry.
The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
Indian banks can be broadly classified into nationalised banks/public sector banks, private banks and foreign banks.
The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
Indian banks can be broadly classified into nationalised banks/public sector banks, private banks and foreign banks.
Monday, May 5, 2008
Marriage Loans in India
Marriage Loans
Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Marriage Loans ensure that money is not a hindrance in marriage preparations.
Several Indian banks offer loans for marriage. Marriage loan is available for meeting the expenses of marriage of daughter, son dependent sister, dependent brother, working woman, and self-marriage of man.
Maximum marriage loan amount that can be sanctioned varies from bank to bank. Generally, it is twice the net annual income ((maximum limit of Rs. 2 or 3 lakhs, varying from bank to bank).
For the loan to be disbursed the bride and the groom should not be less than 18 years and 21 years of age respectively and the age of the applicant should not exceed 60 years
Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Marriage Loans ensure that money is not a hindrance in marriage preparations.
Several Indian banks offer loans for marriage. Marriage loan is available for meeting the expenses of marriage of daughter, son dependent sister, dependent brother, working woman, and self-marriage of man.
Maximum marriage loan amount that can be sanctioned varies from bank to bank. Generally, it is twice the net annual income ((maximum limit of Rs. 2 or 3 lakhs, varying from bank to bank).
For the loan to be disbursed the bride and the groom should not be less than 18 years and 21 years of age respectively and the age of the applicant should not exceed 60 years
Saturday, May 3, 2008
National Stock Exchange
National Stock Exchange
The National Stock Exchange of India Limited was created on the basis of the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions to provide access to investors from all across the country on an equal footing.
In 1992, NSE was incorporated as a tax-paying company unlike other stock exchanges in the country. In April 1993, NSE was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956 and it commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment were started in June 2000.
In October 1995, National Stock Exchange became the largest stock exchange in the country. NSE launched S&P CNX Nifty in April 1996. NSE is one of the largest interactive VSAT based stock exchanges in the world. Presently, it supports more than 3000 VSATs. The NSE- network is the largest private wide area network in India and the first extended C- Band VSAT network in the world.
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