Category Archives: Financial

Interest Rates On Home Loans

Home Loan:-
Loan acquired from a financial institution to purchase a home. Home loans consist of and justable or fixed interest rate and payment terms. Home loans may also be referred to as mortgage loans.
Home loans, also known as mortgages, use the borrower’s home for collateral. This home can be a single-family house up to a four-unit property, as well as a condominium or cooperative unit. Lenders fund home loans, but both the lenders themselves and brokers who act on behalf of the lenders originate, or process, them.

Construction Loan:-
A short-term loan used to finance the building of some real estate project. The builders take out a construction loan in order to begin the project while they obtain long-term funding. Because there is no guarantee that the builders will be able to obtain long-term funding and a construction loan is not intended to fund an entire project, construction loans are fairly risky, and, as a result, have high interest rates.
Mortgage Loan:-
A mortgage is an agreement that allows a borrower to use property as collateral to secure a loan. In most cases, the term refers to a home loan: when you borrow to buy a house, you sign an agreement saying (among other things) that your lender has the right to take action if you don’t make your required payments on the loan.
Takeover Loan:-
A takeover occurs when an acquiring company makes a bid in an effort to assume control of a target company, often by purchasing a majority stake. If the takeover goes through, the acquiring company becomes responsible for all of the target company’s operations, holdings and debt.
Loan Against Property (LAP);-
A loan against property (LAP) is exactly what the name implies — a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property’s market value, usually around 40 per cent to 60 per cent.
DTCP Approve :
Directorate of Town & Country Planning. except in chennai metropolitan area where CMDA is approving the layouts of housing, institutional & industrial layouts beyond 1 hectare extents all other places in tamilnadu DTCP is the authority to approve such developments.
Site Purchase Loan :
Indian investors are traditionally inclined towards buying land either purely as an investment or for building a house. So, if you are looking to buy a plot, you may not be eligible for a home loan, but for a land loan. Home loans are available only for the property already constructed, under construction or likely to undergo construction soon. For funding the purchase of a vacant plot, you will have to go for a land loan instead. Although the terms, rates and processes related to land loans are similar to that of a home loan

Think Long Term Before You Decide On Your Auto Loan Term

Life is a journey! And, buying a car will make your journey easier. Nevertheless, before you buy a car, selecting the right loan term is important. If you choose a short-term auto loan, you will have to repay the loan over a short period. The term varies between one to three years. On the other hand, a long-term auto loan has additional time for repayment. The term varies between three to nine years. It is good to know the pros and cons of the auto loan term before you sign the contract. Take time for making comparisons and make the decision process a little easier. It is essential because you have think about the big picture.

Short-Term Auto Loan – Pay more for a Short Period

Pay up Faster and Make Way for your Dream Car

Buying a new car is a costly purchase. You need an auto loan to pay for the price of the car. Short-term auto loans usually have a lower annual percentage rate. Remember, the shorter term the better it is for you. Short term guarantees you lower interest rates and higher monthly payments than a longer loan term. It means you will pay up the auto loan with a low rate of interest. There are several benefits of opting for a shorter loan term such as:

>>You can enjoy low interest rates.
>>You can get out of the auto loan debt in a short period.
>>The biggest benefit is that it helps in freeing up your money quickly!
>>It feels expensive at first, but with low interest rates, it will not hurt your financial situation.
>>The car will have a higher re-sale value when you pay off the auto loan quickly.
>>It can aid in improving your credit score.

As a car buyer, remember that a short-term auto loan offers you multiple advantages only when you make large monthly payments. In addition, you will have to do everything to reduce the loan amount. It will ensure that the monthly payments do not become a burden for you. Consider, making a large down payment to the lender. Also, remember to plan your expenses because auto loan payments will take an important chunk of your income and you will not be able to save money for the next couple of months.

Long-Term Auto Loan lets you buy an Expensive car

If you are thinking of buying a luxurious car, a long-term auto loan will be a good option for you. It is possible to afford the car expenses because monthly payments are low. The lenders will offer you affordable monthly payments in return of high interest rates. It means you can even buy a car outside your price range. Many car buyers opt for a long-term auto loan because:

1. It offers low monthly payments.
2. A car buyer with low income can afford a car easily.
3. It is ideal if you want to buy a luxurious car.
4. Regular monthly payments can increase your credit score.

However, you must remember that long-term auto loan stretches the monthly payments for a long time. In addition, you will have to cough up high interest rates to enjoy a longer loan term. Another problem is that you can be an upside down situation for a larger part of the term. It is a very risky situation because if the car breaks down, you will find it very difficult to buy a new one.

When in Great Confusion, Read the Conclusion!

There is no perfect auto loan term. As everyone has different income levels and repayment capacity, there is no one perfect loan term. When the lender offers you an auto loan term, do not be in a hurry. Determine the monthly payment that suits your household budget. Consider your future expenses. Think of major expenses such as a wedding, college fees, buying a house, etc. Pick the auto loan term accordingly. Remember, life is too short for making monthly payments for a very long time. Therefore, it is important to think hard before you make the right decision.

Strategizing An Auto Loan Payment Despite Low Income

Buying a car is an expensive affair. Every household requires a car or two for daily chores or commuting to work. However, buying a car and acquiring an auto loan becomes a challenge when the total income in your house is low. Purchasing a new car can put a huge dent in your already confined budget. Sourcing monthly payments for your dream car may seem like a distant dream. But if you correctly strategize your income, obtaining a low income auto loan and buying the car of your dreams can become a reality.

Which Strategies will help you to get a Low Income Auto Loan?

Conceptualize. Strategize. Improvise.

1) Show Discipline in Savings

Once you receive your monthly income, it is only a matter of time before it is all spent. Inculcating a habit of savings will ensure that you have accumulated enough funds for the long run. Financial strength proves that you are credit worthy and will be able to timely repay your auto loan. The threshold income required to provide an auto loan ranges from $1600 to $2000 monthly. Therefore, if you commit to save a certain percentage of your income, making a car payment will become an easy task.

2) Share the Liability

Obtaining a low income auto loan can become simple if you share the liability with a co-applicant. A co-applicant is a person who is taking equal ownership of the car and the payment of the loan. In case, you cannot find a co-applicant, a co-signer can always act as a guarantor for payment of the auto loan. The presence of a co-applicant or a co-signer builds trust in the mind of the lender and he/she becomes more willing to lend you the money.

3) Stability of Employment

Evidence of current employment goes a long way in building a positive perception. Presenting proof of a stable job or a consistent income will get you one step further in getting a low income auto loan. Additionally, a stable employment indicates that you will be financially sound to make future payments. If you are self-employed, you must show tax returns of last two years to establish your reputation.

4) Shed a Large Portion for a Down Payment

When the income is low, down payment becomes an important tool to prove your credit worthiness. The underlying benefit of a large down payment is a low interest rate. As the total amount of the loan decreases due to a down payment, the duration of the loan also decreases. Thus, a large down payment will help you to plan your future budget for the auto loan payments.

Surely, it takes consistent time and effort to save money to buy a car. However, patience, commitment and strategizing your income correctly will assist you in obtaining a low income auto loan.

Makes Way For Your Financial Stability

Mismanagement of financial resources do create a lot of obstacles, which then makes it tough for you to lead a normal life, without any stress. It is a fact that you can easily deal with financial troubles when you have substantial funds by your side. But what if you do not have sufficient money to come out from the crisis? The problem area is of course your poor credit score. In such situations, taking out the loans is the most viable solution to make the survival easy. You must be thinking whether you stand a chance to avail loans in the absence of guarantor or not. At this point, there is no need to worry because you can prefer the option of loans without guarantor. These loans are can be sourced without facing too much hurdles.

Credit Checks is not required

Overcoming the financial setbacks looks always a tough task for someone who is looking for a way to manage the crisis, despite having no credible footprint. When it comes to satisfying the various financial needs and demand, you still have a chance to procure loans with no credit check and no guarantor option. Since your financial condition needs to be revitalised, managing the increasing expenses with these loans seems to be possible. Instead of getting confused, you should need to concentrate on availing these loans.

Prefer to Borrow a Small Amount

If you are trying to acquire some sort of funds, it would be preferable to opt for short term loans with no guarantor through which cash shortage problems can be solved. However, it is important to look for the best possible solution that can help you in a positive manner and this is where short term loans gain prominence. At best, these loans are meant for solving small term financial difficulties. If your credit score is not in your favour, then it is wise to acquire small amount of funds. With the loans, you will certainly find a way to deal with the cash shortage, which does provide some good respite.

Bad Credit is not an Issue

When you think about the loan, the first thing that will definitely come in your mind is credit history. Having a poor credit score always act as a trouble in the way of borrowing funds but credit score is really not a problem in the context of short term loans. In other words, the doors of borrowing short term loans for bad credit people with no guarantor option is still opened in time of urgencies. Therefore, these loans allow you to get access to the enough funds to manage the situation without much of hurdles.

Optimising solution with the right offers

As a bad credit borrower, it is true that the options of securing emergency funding are limited for you. For a change, the no guarantor loans with no credit check option seems ideal for your circumstances. The loans are made available to the borrowers, struggling with poor credit score and looking for a way to manage the cash shortage. More importantly, with this loan alternative, you are free from the compulsion of providing guarantor for borrowing the loan.

If you are in financial mess, then you can utilise these loans to accomplish your various purposes like to tackle unexpected expenses, education expenses, and medical bills and also provide comfort in financial instabilities for bad credit borrowers.