How to Choose the Right Bank for Taking a Personal Loan

What is a Personal Loan?

Personal Loan is an amount taken from a financial institution against which no security is required. 

This loan amount can be used for various purposes like—marriage, medical emergencies, household expenditures, and even vacations.

The amount you take as a Personal Loan is not monitored by the bank and can be repaid through a fixed installment scheme over a fixed period of time.

How should you Apply for a Personal Loan?

You can apply for a Personal Loan in 4 easy steps:

• Step 1: Go to the bank website and fill the online application form.
• Step 2: Once the bank approves your application, select the loan amount and tenure.
• Step 3: In this step, a bank representative will get in touch with you for collecting the relevant documents. 
• Step 4: Post document verification, the loan amount will get credited to your account within 3-4 days. 

Documents Required for a Personal Loan

The requirements vary from one institution to another. However, the following documents are common to almost all banks and NBFCs:

• Identity proof
• Residence proof
• Bank statements (3 months)
• Salary slip (3 months)
• 2 passport size photographs

How Should you Choose your Bank?

Every bank or NBFC offers various Personal Loan schemes with the aim of attracting more customers. Each has different policies and norms and choosing the right one is anything but easy and usually leads to a lot of confusion.

Here’re a few ways you can bid adieu to that confusion and choose the right lending institution. 

Pre-approved Personal Loan

If you’re already associated with a bank and have a good relationship with them you’ll come across text messages and telemarketers pestering you to take a Personal Loan. 

This is called a pre-approved Personal Loan. In this case, the bank or NBFC has already considered you to be eligible to take a loan; in some cases, you won’t have to even submit any documentation. Pre-approved loans can save you a lot of time. 

Rate of Interest

It’s important you do a lot of research on the interest rates offered by each bank. 

Every bank tries to offer low-interest rates to get your attention but they have almost invisible terms and conditions that will lead to an increase of the interest rate once you have availed the loan. 

So, make sure look for loopholes and read the terms and conditions well before go forward with your application. 

Flexi Personal Loan

Flexi Personal Loan is a very borrower-friendly loan. In the case of flexi Personal Loan you can pre-pay the loan amount with idle funds at no extra cost. 

You save a lot of interest as you only pay for the utilised amount; which means you won’t be charged any interest on the prepaid amount.

Loan Amount

While taking a Personal Loan you might have a set amount which you’ll require to fulfil the task. 

Every bank has a fixed amount they can loan to you based on your eligibility. Do sufficient research to see which bank or NBFC offer the amount of fund, you’re in need of.

Prepayment Charges

While repaying the loan there may be situations when you come into an unexpected windfall or get a bonus at work and want to pay off a part of your loan. 

Make sure to choose a bank or NBFC that doesn’t charge any prepayment penalties. This holds true for foreclosure charges too. 

EMI

Using the online calculator for calculation of Personal Loan EMI that you’ll be paying. This will give you a figure that you need pay off on a monthly basis and you’ll get a clarity on how affordable this loan is.

Multiply the EMI with the tenure and subtract the loan amount. This is the interest that you’ll be paying. Consider all these while making the final choice. 

Processing Fee and Time

The processing fee is the amount charged by banks for processing your loan. This amount is cut from the loan before crediting the sum to your account. 

Banks charge up to 3% as processing free so it’s always better you go for the institution that charges you the least.
Processing time is the time taken to approve and credit your loan. 

Pre-closure Charges

Not many people may know this but you can pay your entire loan before the tenure. You can pay off the entire loan amount anytime before the loan tenure. 

Banks charge an interest on pre-closure that ranges from 2-5% on the outstanding amount. Another thing to keep in mind is to find out if the bank even allows pre-closure; in some cases, the bank may allow this but only after a certain time.

Researching online is the best way to begin your search for the right bank or NBFC. 

Every bank has all the information available on its website, and with proper research, you’ll be able to find the right bank based on your repayment abilities and one offering you affordable interest rates. 

 So, you need know everything about loan before applying that will help you to choose the right one.

Chapter 13 vs. 7: What You Need to Know About Bankruptcy

Are you facing overwhelming medical bills? Have you acquired more debt than your monthly income can cover? 

When you've done all you can to pay your debts and it's not enough, you may decide to consider filing for bankruptcy. To decide whether filing Chapter 7 or Chapter 13 is better for your particular circumstances, compare these pros and cons.

Chapter 7

If you're willing to give up some of your assets in order to satisfy your creditors, Chapter 7 may be your best option. 

Considered the "liquidation bankruptcy," this filing means you'll relinquish certain possessions such as real estate, vehicles, stock, and other personal property. Chapter 7 is also an option even if you have few or no assets to offer.

The court will sell these assets and use the proceeds to satisfy your creditors. 

The creditors must accept the final settlement they receive and discharge your obligation, even if you have few belongings to sell.

Chapter 7 is not intended to wipe you out by taking everything you own. Instead, it provides a clean slate for starting your life over. 

To this purpose, property which is considered necessary for living is exempt from being sold. This usually includes at least one vehicle, some furniture, equipment you need for work, and perhaps even some equity in your home.

As state laws differ on what may be considered exempt, you may want to contact a lawyer from a firm like Demers Gagnier Inc. to assist you in determining whether your income qualifies for this filing and which properties you may be allowed to retain.

Chapter 13

Chapter 13 is for those seeking to protect their home from foreclosure, or who have a business they don't want to be liquidated. 

It's also ideal for those who desire to pay off their debts rather than have them discharged.

This type of filing consolidates your debts into one affordable monthly payment, typically over a five-year period. 

Once the plan is established, you make payments to an independent agent who disburses the funds to your creditors. These payments can also include a system to help you catch up on your mortgage payments over time.

After You File

Neither Chapter 7 nor Chapter 13 discharges student loans, divorce and child support settlements, or your home mortgage. In addition, expect your bankruptcy to remain on your credit report for seven years. 

Despite these drawbacks, the best benefit of a bankruptcy filing is the relief you get from having a chance to start over.

Does It Make Sense to Refinance Your Home in Your 50s?

There may be many advantages to refinancing a home loan. You could get a lower interest rate or even cash out your equity. 

However, if you are 50 or older, does it make sense to refinance your mortgage when retirement may be just around the corner? 

Can You Lower Your Interest Rate?

According to the experts at Republic State Mortgage Co, most people refinance to lower monthly payments or even shorten the terms of their loan. If you took out your mortgage before the Great Recession of 2008, you should certainly refinance your loan. 

You could save hundreds or even thousands of dollars per month that can be put into your 401k, IRA or other long-term investments. 

Even if you reduce your interest rate by a point or two compared to what it was when you borrowed the money, that point can still represent a significant savings. 

Are You Paying Mortgage Insurance?

A bankruptcy, low income or other circumstances could have put you in a position where you could only qualify for an FHA or similar home loan. 

FHA loans typically require you to pay mortgage insurance, which may add hundreds of dollars to your loan payment each month. If you have sufficient equity, you should refinance and get rid of that burden. 

Will Cashing Out Equity Help Your Financial Situation?

Taking out a second mortgage may help you consolidate credit card or other debt at an interest rate similar to that of your original mortgage. However, losing equity in your home could make it harder to sell if you wanted to downsize in the future. 

Therefore, you should project how much it would cost to pay off other debts under their current repayment terms compared to what it would cost to pay your mortgage for an additional 10, 20 or 30 years.

You Want to Pay Your Loan Before Retirement

Ideally, you will pay off your mortgage before you retire, or have it mostly paid down when you hit retirement age. If you decide to refinance your mortgage, make sure that you don't significantly increase your loan's term. 

Otherwise, you could be using money that you need for health care or other expenses in retirement to pay down a mortgage you could have completely paid off already if you resist the urge to refinance.

Should you refinance your home after you turn 50? That depends on your unique financial situation. However, if you think that refinancing can save money that will be used to fund a retirement account or otherwise help secure your financial future, it may be a strategy worth considering.

4 Suprising Ways to Save Big on Big Auto Repairs on a Shoe String Budget

You're driving down the highway and your check engine light chimes. You begin to worry as your engine temperature rapidly elevates. 

Smoke rises from the engine as you pull to a stop on the shoulder. Opening the hood, you hear the sound of sizzling coolant on the engine block. The head cracked on your motor, producing not only a mess and added inconvenience, but a repair with a very hefty price tag. 

What are you doing to do?

Many of us have had to deal with a similar situation. Vehicles are imperfect, meaning that they are capable of breaking down at any time. 

Sometimes, the required repairs are quite expensive. If you find yourself in this situation, there are four ways you can dramatically reduce the price of your repair and get you back into your car quickly.

1. Do the Work Yourself

For most auto repairs, a significant cost in the repair at a garage or service center is labor cost. If you are mechanically-inclined, this could be a chance to save some major dough. 

Some jobs require a lot of time, so if you are willing to source your own parts and spend your weekend completing repairs, you could reduce your repair bill from thousands of dollars to hundreds.

2. Visit a Scrapyard

If you are comfortable doing repairs yourself, many parts can be found in salvage vehicles that have deeply-discounted prices over new OEM parts. 

Visit a pick-a-part style scrapyard, like U Pull & Pay, and ask for your year, make and model. Most sites will have a very similar vehicle. If you remove the parts yourself, you can get your car running for a fraction of the price.

3. Borrow Tools

If you have not had the chance to get a lot of specialized tools, you can typically go to an auto parts store and rent a tool. 

This is significantly cheaper than buying a special tool you may only use once.

4. Avoid Dealer Service Centers

If you are not comfortable doing the work yourself, take your vehicle to a local and trusted garage. 

Dealership service centers tend to have higher labor rates and higher part costs. By finding a small garage, they usually know the best ways to save you some money. This could be by using remanufactured or aftermarket parts, or charging a lower labor rate.

The next time you find yourself needing an expensive repair, keep these tips in mind to save yourself a lot of money.

7 Everyday Ways to Save Money

In today’s society, we often spend more than the ideal amount for our families. Whether you would like some wiggle room in your budget or a family vacation, you don’t necessarily need to make more. 

There are tons of ways to save money on a weekly or even daily basis. Below are 7 easy, everyday ways to save money for you and your family:

1. Make a Grocery List

Before you take the trip to the grocery store, make a list. When you go food shopping without a written list, you tend to buy unnecessary items and forget important ones. 

The cycle continues when you have to return to the store for those forgotten items.

Start by writing down the items you know you need like milk, eggs, and bread. Then, look through your local store’s circular for sale items you can use that week. 

Fruits, vegetables, and meats can be found on sale every week. It helps to write the list by section of the store to make it easier to follow. It can also help to add up each item’s price with a calculator as you put it in the cart. 

Though this makes the shopping trip take a bit longer, it will encourage you to stay within your budget. By using these tips, you can save money on your grocery bill.

2. Utilize Coupons

Coupons are gaining popularity and can be found in print and digital forms. A lot of people think of coupons for groceries but they are also available for retail stores and other products too. 

There are some great resources out there if you are unsure of where to start.

CouponMom is a website that covers major chain stores in most states and gives you clear coupon matchups to go along with sales. 

This allows you to save extra money on items you would buy anyway. RetailMeNot is another great website and app that allows users to find coupons for retail stores and either print or use them right from a smart phone.

The searches are simple and can save you a lot.

3. Cut Unnecessary Expenses

Do you wonder where all of your extra money is going? Take a look at your statements to see if there are any subscriptions you are being charged for and aren’t actually using. 

These can include newspaper, magazine, gym, and credit check subscriptions. Also, think about other items you buy regularly and determine whether you really need them.

4. Walk More

It’s true—we live in the land of getting everywhere fast; but sometimes it’s good to slow down and enjoy life. 

Choosing to walk to nearby destinations can be good for your mental and physical health, in addition to saving you gas money.

5. Maintain Tires to Save on Gas Mileage

Simply keeping tires inflated can help you save on gas mileage. When tires are inflated to proper levels, the amount of improvement can range from 0.6% to 3%. 

In addition to inflation, tires should be rotated every 5,000 miles. Rotating your tires helps to create even wear. Not only does even wear prolong the life of your tires, it can also save on gas mileage, so visit a tire center like City Limit Tire & Service today if you haven’t for a while.

6. Make Your Coffee at Home Instead of Purchasing by the Cup

Some of us cannot go a morning without our cup of coffee. If you usually purchase your coffee on your way to work, try making it at home and taking it with you for a week. 

Depending on how many coffees you have each day, there could be a pretty good savings (e.g. 2 coffees x $2 x 5 days per week = $20).

7. Bring Lunch from Home

It’s okay to go out for lunch when you can, but if you are looking to save money, bringing your own may be a better option. 

Say you spend $10 on lunch every work day. That’s now $50 per week. Add that to your $20 on coffee and you have $70 you could have saved.

Now that you have some ideas on how to save some extra money, give one or more a try this week. Check your tire pressure, make a list, use a coupon, and pack a lunch. 

These small steps will all add up over time and save you a lot of money.

Tokenization - Security Technology Incredibly Effective at Preventing Online Credit Card Frauds

Security is the biggest term of the decade regarding credit card buying that has become one of the most common habits of the customers. 

However, the data violation regarding the credit card online transaction or offline transaction is rapidly increasing. Even, the security has become more prominent among the users and business owners, after the current data breach at Best Buy and Target.

Advancement is the natural phenomena and by holding the hand of this guide, a new technology termed as EMV has been launched in the market in the recent time. 

It is a chip, inside the credit card which is very much useful to control the fraud case in various environments like supermarkets, retail stores where you need to deal with your credit card. 

Nevertheless, in the event of a card-not-present transaction, the information is more susceptible to fraud because the details are loaded on the server of the high risk merchant accounts. Protection is the only key in this context. 

Secure payment processing with Tokenization:

With the assistance of tokenization, the encrypt security has become stronger by securing the detail information of credit card and by avoiding the violation data feasibility altogether for card-present and card-not-present transactions. 

In this process of tokenization, the system or defined technology converts the information of customer’s credit card into a bunch of random numbers. 

If there is a tokenization error, then how to fix card tokenization failure is by sending a tokenization warning that will be sent whenever there is an issue. Then tokenization will not prevent the system from tokenizing the card. Such failures not only jeopardize the current transaction but can also expose sensitive data to potential security threats. But the customer should always be made aware of the issue.

The tech world has faced a rapid and nifty advancement in this domain in last few years. Tokenizing is the essential tool to secure the personal credit card information from the cheaters or hackers. If customer's data is saved to your server, then you are liable for data breach damages.

What is Tokenization and how does it work with EMV?

Tokenization is the keen way to reinforce the way of security for e-commerce and credit card transactions. Also, it minimises the cost complexity by complying all rules and regulations of government and industry standards. 

The working procedure of tokenization evokes a particular pathway in which the merchant is issued with a specific tokenization service provider which drives the credit card to convert into a random token of alphanumeric or numeric combinations during any transaction. 

As tokens are not the real cards, it cannot be used by hackers outside this context of the transaction. In that case, the service provider bears the liability to keep the data secret.

EMV is designed to improve the inherent security of e-commerce card transaction that is an enticing gun to protect from the fraud at the POS (point of sale). 

It is an authentication process that can reduce the retail fraud in the e-commerce e-market. However, it is not entirely technically sound to protect the chip-enabled cards. In the sphere of online marketing, EMV does not provide protection more than traditional cards. 

It just asserts the swipe and sign in of the card by delivering the card number, CCV code and an email verification to complete the process of purchase. 

What is encryption?

Data encryption is the profound way to protect the information of the card holder. Nevertheless, the latest launch is the approach to secure the data beyond encryption, and that is called Tokenization. 

This viable solution to avoid the breaching of credit card information is ideal regarding encryption at the point of card swipe. The point-to-point or end-to-end encryption is designed to locate the risk of unwanted interception during the transaction from POS terminal to the payment processor. 

Which method is best?

To identify the fraud patterns and to prevent them as well Tokenization is the latest solution. 

When it is applied to the data security concern, it transforms all given information into equivalent non-sensitive information from sensitive data element. The original value is stored in a protected local data warehouse. 

The goal is to eliminate the risk factor of losing sensitive information in the retail fraud case, and Tokenization is the best in this regard. 

Concerns with Tokenization:

A number of mindful considerations are related to this system, and they are compiled below.

• Data isolation
• decreased scope for PCI issues
• Internal protection
• goes well with other technologies
• Online protection
• Secured usernames, passwords, employee and patient files, e-mail addresses
• is cost effective 

Should you embrace Tokenization within your store?

Tokenization is to be incorporated in every store, whether it is a small scale retail store, or if your store is to be accessed online. 

This is effective because the hackers won’t get anything to track for as your store does not have any data right after the transaction.

You can always make your tokenization process more secure with the help of secure gateway of payment. Remember, thieves are meant to steal, and their endeavour shall continue as more advanced technologies come up in the market. 

Nevertheless, the system of tokenization is comparatively easy to install in your workplace. You do not have to change your infrastructure entirely to adopt this process.