Showing posts with label Interest. Show all posts
Showing posts with label Interest. Show all posts

Tuesday, December 24, 2013

Is It Easy To Escape The Loopholes Of Short Term Financing?

Loans (Photo credit: zingbot)
Short term financing today has emerged as one of the major means by which borrowers can turn to their immediate cash needs. In spite of the high rates of interests borrowers are found turning to it to meet urgent needs like paying off a car repair fee or else a medical bill. The fact that they are provided without lengthy credit checks has acted in their favor. For instance, if a borrower finds himself in a cash strapped situation while he has to pay off a huge hospital bill he would definitely look for availing alternate resources that would provide him with fast cash. 

Traditional loans would take a certain degree of time to be arranged whereas there is no assurance that friends and relatives will always turn helpful in these cases. Short term loans turn out to be very helpful and perhaps the only recourse during these times. Listed below are some of the advantages of payday loans alternately known as the cash advance, or fast cash or same day loans:

They can be secured very fast and involves very simple documentation process- once approved, he can get the money credited to his account within 24-48 hours.

It is very easy to qualify for these loans. The borrower just needs to fulfill the following requirements in order to qualify:

  • He should at least be 18 years of age 
  • He should have a savings or checking account in his bank 
  • He should be able to prove that he has a good source of income so that he can pay off the debt on time.
The borrower gets a chance to rollover the debt in case he defaults

Most of the lenders conduct business online, so it gets easier for borrowers to browse through multiple lenders and zero in on a choice accordingly.

Being Careful Matters

The high rate of interest might discourage you to secure these loans, but a few measures on your end can ensure that you're avoiding all possible loopholes like debt trap and bogus lenders.

Educating yourself duly about short term loans remains crucial. There might be a number of changes brought about in payday legislation that you should be aware of. Know for a fact that there are a number of bogus lenders in the market who have perfectly authentic-looking websites. Providing sensitive details like your bank account number, monthly earning etc would be dangerous. As a result, take care of the fact that you're checking out the reviews of the site you are consulting properly. Additionally, weigh your needs and ability to repay properly before you're trying to get fast cash loans. There is simply no need to apply for them if you think that the need, for which you're considering the loan, is not that urgent. Make sure that you're duly aware of the repayment terms and conditions. Its not really advisable to opt for a rollover as that would lead to further escalation of rates of interest. Please think carefully whether you would be able to pay such high interest or not. 

Wednesday, November 20, 2013

Tips for Saving When On a Low Income

If you are on a low income, you may be struggling just to pay your monthly bills and have not even considered starting to save. As difficult as it may seem in your specific situation to start saving money, it can be done, even if it is a little at a time. Having a savings account set aside can reduce your financial stress level and help you be prepared for emergency money situation. There are several great tips listed below to help you get started on your own savings plan.

Set Up a Budget

The first step to saving money is to set up a monthly budget for your household. This will quickly let you see if you have enough income coming in each month to cover the costs of your bills. A budget may also alert you to any areas where you may be spending more money than you realized. It will also help you monitor your spending habits. Try to incorporate a savings category in your budget, even if it is a small amount because it will add up over time.

Seek Out Government Benefits

The government offers a wide selection of benefits to low-income families and seniors. Some of these benefits include a Baby Bonus and Parental Leave Pay for after the birth of a child or an adoption, childcare rebates and benefits, Single Income Family Supplement, and Parenting Payments. These payments are made through Centrelink through the Department of Human Services. To find out what benefits your family may be eligible for, you should go to the Department of Human Services’ website. Obtaining some of these benefits will take some of the financial pressure off of you and free up some money in your budget for savings. 

Take Out a Low or No Interest Loan

The government offers no interest loans through the No Interest Loans Scheme that allows qualified people to borrow up to $1,200. The also offer the StepUP low interest loan that provides loans up to $3,000 to eligible people. Depending on your specific situation, taking out one of these no or low interest loans may help you pay off some outstanding bills or loans, so you do not have to keep paying interest fees each month. It can also consolidate all of your unpaid bills into one low monthly payment and can help save you money each month. This is also a better option that a standard bank loan that comes with higher interest rates. 

Set Up a Savings Plan

Setting an account up that is just for your savings is a great idea. This allows you to keep your savings separate from your disposable money and may make it easier not to spend. The government also has several savings plans that will match your savings dollar for dollar up to a set amount. This can help you save twice as much money in a shorter period of time. The AddsUp savings plan is designed for those who have successfully paid of a StepUp loan or a No Interest Loans Scheme loan. Once you are able to save $300 they will match your savings up to $500. The Saver Plus plan allows you to set a financial goal and once that goal is met they will match your savings up to $500.

If you are trying to find ways to save money to secure your future, you should try all of the suggested tips listed above. Combined a few of these savings tips will provide you with more disposable income each month. You can then use a portion of this income to set aside into a savings plan. When setting up your savings account, be sure to look for matching funds from the government, this will help you save faster and make more money available to you in case of an emergency.

Wednesday, September 25, 2013

What to Look for in a Savings Account

More than a quarter of Americans do not have any money in savings, according to research released in June 2013 by And nearing retirement is a big incentive to consider your long-term financial stability. 

If you haven't started saving already, now is the time to open a savings account.

To assist you in the decision-making process of choosing where to open your savings account, here is a guide that emphasizes the importance of low fees, limited restrictions, bank insurance, high-yield interest and other factors. 

· Watch for Fees

Beware of hidden fees. Saving accounts may have fine print that lists costs that will take from the money you are trying to save with maintenance fees, activity fees, monthly fees, withdrawal fees and others. Make sure to ask questions -- like whether there is a minimum balance requirement or if it costs to transfer to the account when your checking is through a different bank -- before handing over your money.

A good bank will allow you to put money aside without hassling you with excessive charges.

· Check for Accessibility

Although this account should not have withdrawals taken at the frequency of a checking account, strict restrictions (which may include fees) on the number of withdrawals is not a good sign. Look for an account that will allow you access to your funds in case of an emergency. You will be saved from turning to credit or taking on extra debt. 

· Earn that Interest recommends finding online savings accounts with interest rates around 0.87 percent or traditional banks with around 0.74 percent. But beware of introductory interest rates that shrink after the first few months.

If you are able to add money to your account on a monthly basis, your bank may offer special rewards like higher interest rates.

· Look into Online Banking

An ad for a promotional savings account in your mail or a solicitation from your bank teller may not give you access to the best savings account available. Shop around, and compare offers from online banks.

Online banks offer special incentives as they try to convert customers used to working with traditional banks. These banks cost less to operate, allowing the banks to offer higher rates of return on savings accounts.

· Research Credibility

The banking industry is not immune to economic fluctuations, and if a bank suffers major losses, your money may be at stake. Before you commit to either an online or traditional bank, do some research into a bank's credibility.

Check to find your bank's Tier 1 capital ratio, which is a measure of strength based on equity and risk. Experts recommend avoiding banks with a Tier 1 ratio of less than 10 percent.

Makes sure your money is insured. FDIC insurance protects up to $250,000 per depositor. If a bank you are looking at does not have this protection, take your business elsewhere.

· Move to the Next Level of Savings

As you learn to put aside a portion of your income for savings, you can move to the next step: opening a savings account that is an investment product. Divide up excess funds into accounts with greater interest rewards and tax benefits.

Financial products to help protect your retirement years include IRAs, 401(k)s and annuities. Once you've saved up a lump sum, an annuity can give you access to regular payments to supplement Social Security payments that might otherwise be your only income during retirement.

Saving money in an envelope at home or letting a balance grow in your checking account may seem like enough to tide you over for the next few years, but truly preparing for the future will require putting in more effort, starting with getting a balance in the right savings account.

Alanna Ritchie is a content writer for, where she writes about personal finance and little smart ways to spend (and save) money. Alanna has an English degree from Rollins College.

How Debt Consolidation Can Help You?

English: Day 3 of the protest Occupy Wall Stre...
English: Day 3 of the protest Occupy Wall Street in Manhattan's Zuccotti Park. (Photo credit: Wikipedia)

What it Means

When dealing with debt consolidation, you’re taking out a big loan in order to pay off other loans of various proportions. Often enough this is done in order to help provide a smaller interest rate or help bring security to a fixed rate of interest. Consolidation can often occur in situations where:
  • A company is about to go bankrupt
  • Credit card debt needs to be paid off
  • Student loans are required 
Most of the time it’s done simply to service a single loan entirely because multiple loans can lead to complications that most people tend to avoid. In addition, debt consolidation can also originate from the creation of unsecured loans that might go into yet another unsecured loan. Usually it takes place when secured loans go up against assets that may serve as a form of collateral (i.e. a house, a car, etc.) The loan’s collateralization give it much lower interest rate meaning the asset owner will then agree to follow foreclosure of the assets to help pay off the loan. 

Bankruptcy Savior

Another good reason to choose debt consolidation, especially if you’re part of a big company that handles a ton of finances, is for the amount of discount that can be gained towards the loan. When a severe situation such as bankruptcy occurs, debt consolidators will more often than not purchase the loan at a far greater discount than the usual base price. If a debtor is looking to be prudent with his or her loans, they can feel free to look around and shop for various consolidators across the countries that are able to pass these savings along. Debt consolidation can ultimately affect the abilities of the debtors and can go on to discharge these very debts while in bankruptcy. These are major business decisions that need to be thought out and considered before making any attempts at an execution. 

Credit Cards

Some people consider debt consolidation as the best choice for when it comes time to pay off a large credit card debt. Credit cards often have carried a very large interest rate, larger even than most unsecured loans that come from a local bank. The ones in debt who have large property such as a house or a car might be able to get lower rates from their loans as long as they are secured and are using a property as a measure of collateral. In this case, the gross interest and cash flow that gets paid towards the debt will be at a lower price. This allows debts to be paid off much sooner which also means less interest for the debtors to pay off over time.

Student Consolidation

Debt consolidation can also be a part of student federal loans. Existing loans are first bought by the Department of Education. Then, after consolidation, fixed interest is set based on the current rate of interest. If a student puts two or more loan types together into one consolidation loan, weighted average will establish the approximate rate in accordance with the current interest rates.

Tuesday, August 27, 2013

Choosing Between Simple Interest and Compound Interest

Interest Rates
Interest Rates (Photo credit: 401(K) 2013)
As with everything, there are perks and consequences for every choice we make. Choosing between simple interest and compound interest has certain advantages over each other depending on your needs.

Compound interest is when an interest paid on your investment is added to your total sum and the interest is calculated onto the full amount. The interest will be added to the complete total allowing the sum to increase each time. Your returns are quickly obvious with compound interest instead of simple interest. Simple interest is where the same amount of interest will be paid on the total at the same time each year.

The best way to explain the differences between the two is to create a simple scenario.

Two people are each given $10,000 by a close friend. Person A decides that putting his money in an investment would earn him the most at a 5% rate. Person B decides that he wants a faster return but less profit. So he draws on the interest as it is paid. Person B is under the illusion that he's doing well because he has managed to pocket 5.5% on his investment. This means he's making $550 every year.

Because Person A has decided that they don't want to use the return he gets on his funds from his investment, he's experiencing what most would call compound interest. Persona A is receiving his income from his investment and experiencing simple interest.

After ten years of watching his investment grow, Person A returns. The $10,000 he initially invested has quickly expanded to a whopping $16,289. Person B was only able to receive $5,500 in interest, which was spent. He's now back to his original $10,000 investment.

Person B was able to use his money whenever he wanted throughout the years but its highly unlikely that he used the money he earned for anything useful. Person A was careful to manage his money and as a result, he earned more than Person B.
Compound interest may seem like the way to go, but you should be aware that the bank or credit card company you choose to associate with will also earn a large sum of money too. It generates more profit for your bank and you also end up paying more than you normally would on your debts.

When simple interest and compound interest are compared side by side, it's obvious that compound interest is the best of the two. However, compound interest may not be for everyone. Compound interest usually works out better for people who don't have a problem with not being able to touch their hard earned money for large periods of time. For some, this may not work out. Simple interest may be better and easier on the sort of people who like to spend their money as soon as they get it. Sites such as have tools that can help you make these decisions.

Monday, July 29, 2013

How Loan Rates Affect the Housing Market

Interest rates vary for a number of reasons. However, what affects them the most are changes in the decisions of the Federal Reserve, the current state of the economy, and the rate at which people are either borrowing or saving.

A huge percentage of home sales are normally financed. People buying homes usually apply for mortgages, which is actually just the act of borrowing money. Therefore, when the reasons mentioned above undergo changes, it is typical to expect that the housing market will be affected.

Interest rates refer to a percentage of the total money borrowed which is charged to the borrower by the lender for its use. Of course, the higher the interest rate, the larger the amount of money the borrower is expected to pay. The reason the housing market is affected by the change in the Federal Reserve’s decisions is because the Federal Reserve, just like lenders, sets an interest rate at which it lends money to financial institutions including banks. In turn, this interest rate that is charged to the banks and other financial institutions will affect the rate at which they lend money to businesses and potential home buyers who want to apply for a mortgage. Any increase in the rate of the Federal Reserve is proportional to the rate of the banks and other financial institutions.

For that reason, when the interest rate of loans and mortgages is lower, people are more encouraged to borrow as they know that in doing so, their loan will be cheaper and will cost them less. On the other hand, when the interest rate is high, borrowing money slows and the number of people applying for loans and mortgages are fewer. So, the lower the interest rate, the more sales there are in the housing market.

When mortgage rates are lower, there is no doubt that homes become more affordable. More people want to apply for a mortgage and purchase a home, which definitely helps boost the sales in the real estate market. Even those homeowners who are looking for opportunities to refinance take advantage of the times when rates are low. When refinancing, a homeowner can trade their current home loan for a new one, which can be more affordable for them. In addition, low rates also help development and construction companies. Since more people want to purchase homes, there is an increase in demand for houses. Therefore, not only do development and construction companies gain business but they also get to finance their construction at lower costs since they can borrow money with low rates.
Interest Rates
Interest Rates (Photo credit: 401(K) 2013)
One important thing to keep in mind, though, is that even if loan rates are affecting the housing market’s mortgage prices, sometimes they aren’t in direct correlation. As mentioned earlier, low rates often result in more demand for houses, which home sellers sometimes take as an opportunity to increase the price of their house. However, if the prices get too high, buyers back off, which may result in a decline in demand, which could hurt the housing market.

If you are a home owner, you should know that adjustable rate mortgages are affected also by the Federal Reserve, the economy, and the rate at which people borrow or save. You are lucky if you have a mortgage which is locked in for a certain period of time; however, if you are tied in to an adjustable rate mortgage, then you should expect that the interest rate might vary at any time. It could change every year or as often as every month, depending on the state of the market and the three factors mentioned earlier. When the recession hit back in 2008, there were a number of homeowners who had to face foreclosure because they weren’t able to make their mortgage payments. Their mortgage rates increased to an amount which they weren’t able to afford any longer.

So, if you are currently locked into an adjustable rate mortgage, make sure to prepare for the possible increase or decrease. Monitor your credit reports and adjust your finances accordingly. Make sure to put away a little more money for your monthly mortgage payment than you usually pay. This way, you know that you have the money to make your mortgage payments, despite a change in the interest rates.

Author Bio:

Joy Mali is an active finance blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit reports and scores regularly.

Friday, July 26, 2013

For Personal Needs Go For Personal Loans

Often it happens that we compromise with our needs and dreams, but now that time has gone. If you want then your bank will help you overcome this unwilling compromise. There are several kinds of personal loans available in the market for your personal requirements. Whether, it is a car loan or a house the bank offers you a short term or a long term loan.

Personal needs vary from person to person. It may so happen that you are in urgent need of money, but are unable to gather the amount at the moment. In such situations loans are the best option. It helps you to pay in instalments and also furnishes with the option of paying the principle amount when possible. Certain criteria are also to be followed while applying for a loan.

The medieval period people used to mortgage their property or any other particular asset when in need of money. When unable to do so they had to render the same to the money lender. People were exploited on such basis. Sometimes the forthcoming generations also had to endure this loan.

The best part about a loan is its flexibility. In terms of time, money etc. the loan system is the best. The one discussed here are about personal and car loan. A personal loan is the one which can be taken on any basis. The rate of interest is a little higher than all the usual loans.

This loan can be taken for fulfilling any need, say you need to renovate your house or want a new house or want a car. Therefore, it implies that the need is not specific but the amount is specific.

The basic requirement for applying for this kind of loan is a three year filed ITR, a salary receipt and an address proof. These three are the most basic and the most common one, but the specifications may vary from firm to firm.

However, for a car loan the system and the requirements are different. First thing or the point which differs is that this loan is specifically for a car. The next point is that the loan is given in the name of the seller and not for the buyer. The money is to be given in the form of instalments to the bank by the buyer. As soon as the loan is cleared legal papers are prepared which is a proof that the car now belongs to the buyers.

Well taking a loan is a very easy task, but it involves taking care of few points like there should not be any negligence at the time of EMI deposit or else the loan is supposed to be lapsed on account of lack of payment. There are several advantages of loan which can be studied when taken a deeper look.

The term loan is not new to people nowadays but there might be some confusion when it comes to applying or searching for a loan. Hence, for more information on personal loan or even car loan , you can refer the experts.

Tuesday, March 12, 2013

Confused About Retails Bonds? Learn How to Start Investing

Interest Rates
Interest Rates (Photo credit: 401(K) 2013)

With interest rates on savings accounts still rooted to rock bottom, many people are looking for alternative places to invest their cash to get a decent return.

One such option is a retail bond. Not everyone will have heard of retail bonds and they may well sound like a complicated financial instrument but in reality are relatively straightforward. They allow the individual to control the level of risk they are exposed to.

If you think you might be interested in 
investing in retail bonds and want to know more, read on to find out more.

Retail bonds: the basics

A retail bond is simply a way of investing your money in a certain company, which not only returns your capital at the end of an agreed period, but also pays you interest along the way.

Cash flow can be tough for a company to raise and when it comes to growth and expansion, an injection of capital is needed. One way of getting this is to create a series of bonds that investors can buy. The company offers a guaranteed interest rate in return for the use of the cash for the agreed period. The concept really is that simple.

The amount of interest offered will depend on the size and stability of the company. Large organisations such as Tesco might offer bonds with an interest rate of around 5-6% whilst a smaller, less secure business might have to give an investor around 10% in order to be sufficiently attractive. As a general rule, the higher the rate of interest, the more risky the investment is.

How do I buy a bond?

If you already have an investment portfolio, the chances are that you have either a wealth manager or a stockbroker who executes deals on your behalf. They will be able to purchase a retail bond upon your instructions.

If you are new to investing, it is possible to set up an account with a stockbroker on an 'execution only' basis, which means you will not be receiving advice or management services. This will be the cheapest way for you to get your foot onto the ladder.

When you are ready to purchase your bond, there are several factors you need to ensure you have carefully considered. How long you want your money to remain invested for, the level of risk you are willing to accept and the return you are hoping to receive are all key and will help to determine your choice of company to purchase the retail bond from.

Once you think you may have identified a suitable target - research, research, research. A company that offers a higher interest rate will be at a greater risk of going bust or defaulting on the debt, so think very carefully before ploughing your money in.

To summarise, retail bonds are very accessible to the general public even though they may not be the most well-known way to invest. However, with detailed planning, research and clear goals, it is possible to secure a much better return on your money than with a bank.

Samantha Wood is an experienced finance writer but wishes she had more money to invest. To keep up to date with the latest opportunities and news, Samantha uses sources such as 
Investing In Retail Bonds.  

Friday, March 8, 2013

Make Credit Card Debt Disappear, Even If You're Retired!

Retirement isn't supposed to be a debt riddled way of life. It should be a worry free, enjoyable time. Unfortunately, for many consumers debt has ruined their retirement. But what if I told you that, you could still pay your debts off? What if I told you that you could do it paying no more than your minimum payments right now? Well, you'd probably think I was trying to sell you something. Good news, I'm not, you can do it on your own! No need to pay that debt consolidation company $3,000 to do it for you. It's actually pretty simple, here's how:

Step #1: Make A List Of Your Debts: 

I've seen the smartest people I know make stupid mistakes because they forgot to prepare before doing something. When you do anything as important as working your way out of debt, it's vital that you get prepared. To do so, you will need to understand your debts. Start by making a list of all of your credit cards with a balance. Make sure to order your list from highest interest rate to lowest. Also, it should include the lender name, interest rate, balance, minimum payment, customer service phone number and pay to address for each of your credit card debts.

Step #2: Decide How To Go About Reducing Your Interest Rates: 

There are 2 different options that you can chose from for DIY interest rate reduction, first is interest rate negotiations and balance transfers, the second is financial hardship programs. Either of these options coupled with solid, aggressive payment plans, which I will go over later can prove to be a dream come true for you and your family. So, how do you decide? It takes a bit more than one paragraph so, I'm going to separate this step into sub-steps:

  1. Check Your Debt To Income Ration – Add all of your credit card balances up. Do they add up to more than 15% of your annual income? This plays a crucial role in your decision because if your debts add up to more than 15% of your annual income, chances are, you will not qualify for enough of a credit line to transfer your balances via balance transfer credit cards. Also, you may be in the midst of a financial hardship.
  2. Add Up All Of Your Minimum Payments – Can you afford to pay at least that amount of money every month? If not, you are dealing with a financial hardship and your lender has assistance for you.
  3. Figure Out Your Credit Scores – If you have poor to fair credit scores, the truth is, you will not qualify for any balance transfer credit cards that are worth applying for. This however is often a sign of financial hardship!
  4. Make Your Decision – If your debt to income ratio is too high, you can't afford to send at least your minimum payment comfortably and you have bad credit scores, financial hardship programs will be a better option for you than balance transfer credit cards. However, if you do have a low debt to income ratio, good credit scores and can afford to pay make your payments with a little extra comfortably, balance transfer credit cards are going to be your best option.

Step #3: Reduce Your Interest Rates: 

I have written several publications on both options for reducing your interest rates. If you decide on financial hardship programs, I suggest reading, “Understanding And Applying For Credit Card Hardship Programs”. If you decide that you would rather use balance transfer credit cards for interest rate reduction, please read “Do It Yourself Credit Card Debt Consolidation”.

Step #4: Decide On A Constant Payment: 

Have you ever noticed that as you pay your credit card bills, every month or two, the payments get a few cents or even a buck lower? This is because your minimum payment is based on your credit card balance. Therefore, if you can commit to sending no less than your minimum payments this month, you can commit to sending more than your minimum payments in the future. Every extra penny going to your principle balance saves you money in the long run. So, to decide on a constant payment, add all of your minimum payments together. Can you afford to send more than the total? If so, write down the total payment you can afford. Now, commit to sending no less than this every month until your debts are completely paid off. If you do so, you stand to save thousands of dollars in interest and years of time paying off your debts!

Step #5: Stack Your Debts: 

The debt stacking payment method is one that attacks your highest interest rate first. To do so, send minimum payments to all of your credit cards with the exception of the highest interest rate each month. All extra funds left within your constant payment should be directed to your highest interest rate. When your highest interest rate credit card is paid off, don't go back to making small payments and keeping the rest! Now, send all extra funds to your next highest. This aggressive payment method will really get you paid off fast!

My Conclusion

Even if you're retired, you don't have to live with credit card debts. If you follow this plan, you will be free in just a few years and finally be able to enjoy your retirement. I hope you've enjoyed my article and hope you come back to read more to come!

About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance author. This article was inspired by his most recent series, “Balance Transfer Credit Cards – A 7 Step Guide To Understanding This Option”. Join the discussion about this article, Joshua's series or any personal finance topic of your choice on Google+!

Saturday, March 2, 2013

6 Effects of the HDFC Home Loan Cuts

Interest Rates
Interest Rates (Photo credit: 401(K) 2013)
The Housing Development Finance Corporation (HDFC) has announced that it will cut down its basis points for home loans. This cut has drastically reduced the amount of money you have to pay per month over a period of twenty years. This move has been initiated by the government to help the market recover. This move has made money available in the hands of the people and has some favourable effects. Given below are six effects of these HDFC home loan cuts- 

Money Available In The Hands Of Buyers

The reduction in the basis point by the HDFC has brought down the rate of interest for home loans. This means that you have to pay almost seven or eight lakhs less in total than you would have previously paid on the same loan amount. With less money to repay, buyers are now keener to take home loan in India and buy houses. 

Increased Demand For Real Estate Investment

With the market looking favourable, and the real estate market is looking better, thanks to reduced rates. More people are showing interest in the investing in homes. Property prices are rising and people are trying to buy before the prices rise further and this has increased the demand. 

Increased Buying of Property

Property prices are rising with improvement in infrastructure and development of the outskirts of the cities. In such a scenario it becomes difficult to buy property in good areas of Mumbai, Delhi. These cities have sky high property rates, and therefore investors are looking for property in tier I and tier II cities. The demand for property in these places has gone up after the HDFC’s rate cuts. 

The Young Crowd Is Buying Property

The RBI’s rate cut has favored property investment by the young crowd. The young working class earns a good amount annually and with the slashed rates they can now afford a house of their own. The reduced rate and special offers for woman’s loans, many young women are also going ahead and buying their own property in some of the leading cities of the country. 

Property Prices Are Rising

The reduced rates of loans have increased the demand for property. This in turn has increased the property prices to go up. Prices had taken a hit with low demand, but now that the market is recovering and the investors are increasing their property prices. This has in turn increased the demand for property, so that buyers like you can buy property before the prices rise further. 

Foreign Investment

Reduced rates have brought in investments from international investors. They have realized that India has a strong stable real estate market with a good rate of interest. These foreign investors have taken up some high end projects. This will also attract more investors, both national and international in the future.

These are the six effects of HDFC’s home loan cuts. It is time to make full use of it and benefit from it.

Tuesday, February 12, 2013

The Logbook Loan: Quick and Convenient Solution to Borrow Money

Loan (Photo credit: Philip Taylor PT)

What is a Logbook Loan? 

Logbook loan is a mode of obtaining funds. In logbook loans, commoners can borrow funds from logbook loan companies to have instant cash which can be used as business capital, for business use, and for other personal purposes. 

How a Logbook Loan Aids People?

Logbook loan is distinct from other loans because your vehicle will have to serve as collateral. However, logbook loan companies merely rely on the logbook V5 and possession of vehicle documents as security. They do not take possession and ownership of the vehicle until the applicant defaulted in making their payments. Logbook loan companies provide for an easy and expedient process in availing the loan.

Gone are the necessity for background check and credit investigations. It is fairly common for people with bad credit or financial history to find loan application burdensome. Often than not, their loan applications get discarded. If not, they may avail of a loan, but with very high interest. Availing such a loan will only put your financial status at a risk. It’s more of a loss than a winning solution. This is what logbook loan is made for. Logbook loans give all applicants a chance to obtain some funds without asking so much in return. Logbook loans are the cheapest of all loans. Also, logbook loans can be helpful in regaining your financial stability and further attain a good credit standing.

Logbook loans are the perfect choice for people who are in need of immediate cash. Companies may grant a loan amounting to several thousand but with very little rate of interest. But it bears stressing that the amount of loan which can be granted depends on the value of your vehicle. Moreover, logbook loan companies do not look into the bad credit or financial history of the applicant. 

Spotting a Reliable Logbook Loan Company

Logbook loan is a novel concept. Hence, people are not yet familiar with logbook loan companies. If interested in applying for a logbook loan, choosing the right company matters. In finding the credible logbook loan company, consider online reviews and customer testimonials. They can be found online or in the company’s message boards. Take more effort looking for suspicious and negative comments. They may be helpful in letting you decide whether to take the loan or not. Another thing to consider is the company reputation. Also shop or inquire for company information, loan grants and payment schemes. 

Advantages of a Logbook Loan

  • A logbook loan is beneficial and convenient because it can be obtained in a definite and short period of time. This is a perfect loan option for commoners who are in need of instant money. 
  • In logbook loan applications, a bad credit or good credit is not the sole basis for granting the loan. In logbook loans, applicants are spared from stringent credit scrutiny. 
  • Logbook loans do not require applicants to place properties as collateral to the loan. Most logbook loan companies merely rely on the V5 document as security. 
  • Logbook loans also promises an easy and fast processing. Moreover, logbook loan companies do not charge unconscionable rates of interest. They provide minimal interest rates which applicants can easily pay off. 
  • Those who were granted with a logbook loan can choose from an array of reasonable payment options. There are installment schemes in monthly basis which is a fitting payment scheme even at financially difficult times. 

So, the next time that you will be in dire need of money and you have a car (but do not want to sell it), you can try availing for the Logbook loan. Who knows? This can be the best mode for you to borrow funds.

Author Bio:

Click 4 Logbook Loans is a leading UK price comparison provider for logbook loans site dedicated to bringing you the best possible deals from the top Log Book Loan providers in the UK. Click 4 log book loan helps you to get log book loan as quick as possible.

Thursday, January 24, 2013

What are Your Car Finance Options?

With the new year in, many people will be looking to make some changes in their lives, and for some this might mean buying a new car. It can be one of the most expensive purchases you make, which is why you have to give it a lot of thought. If choosing the car wasn't hard enough, you've then also got to decide how to pay for it. There can be many different options, and finding the right one can save you quite a lot of money.

Outright Purchase – This is of course one of the best ways to buy a car. If you can afford to buy it without finance, then you won’t be paying any interest at all, making the vehicle cheaper. It might also be possible to negotiate discounts or extras on the car if the dealer knows you can pay there and then in cash.

Leasing – Leasing can be great value with relatively low costs, but the key is that you never actually own the car, unless you decide to pay a lump sum at the end of the agreement. There are lots of different options, depending on the length of the lease, the deposit you put down, and a variety of other factors. This is one of the best ways of combating depreciation however, so it’s worth a look.

Dealer Finance – Dealers often offer good rates of interest, and will have special deals from time to time. If you can take advantage of them, then do so, but be aware that you’ll often have to pay a large deposit.

Personal Loan – If you don’t want to pay a deposit, then a loan is likely to be your best option, depending on circumstances. A personal loan is likely to cost the most in terms of interest, but offers the least risk. There are of course limits to personal loans, and in some cases it will be difficult to get a loan for an expensive vehicle without a deposit.

Secured Loan – Secured Nemo homeowner loans also offer another option. The minimum term is usually over 3 years, so this isn’t really a good option if you don’t plan on keeping the car for a long time, but otherwise it could save you a considerable amount of money in interest. However, because the cost is often spread over a longer term you might end up paying more in interest.

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