Friday, June 26, 2009

Important Documents Required For Home Loan


Home loan is one of the loans offered by the banks or financial companies to its customer to buy a property. Banks offers home loan which can be easily repaid in monthly EMI without having burden of huge loan. Home loan is one of the secured loans and long-term loan which offer you a period of 20 or more years to repay the loan.

Following documents are important for Home Loan

Duly completed application form: Each banks and financial institutes will have its own application for applying for home loan. You need to complete all the details furnished in the application. Enclose two passport size photographs along with your duly filed application form.

Proof of identity: You need to produce id proof. it can be copy of driving license, passport, PAN card, driving license, employee id, voter id. You will also need to proof your permanent address and current residing address with some document support. Documents can be Ration card, Passport, property (if any), utility bill such as telephone bill, electricity bill etc.

Age Proof: Document to proof your age is one of the important documents required for applying home loan. To prove your age you can submit copy of school certificate, birth certificate, passport, driving license etc.

Financial statements: This is very important for determining the whether an individual should be allotted a home loan or not. You need to prove your financial capacity and affordable amount or credit for month. Financial documents can be proof of monthly income, bank statement of 3 to 6 months, Income tax return filed for last two or more years, repayment track of existing loans or advances, affordable monthly EMI etc.

Property title proof: for sanction of home loan you need to provide the details of property you intent to buy and copies of documents available with you. Plan of building approved from concerned authorities, purchase agreement, details of agreement made for buying the property, no objection certificate and certificate from builder’s charted accountant certifying that building has not mortgaged.

You need to know the market trend and offers made by lending company or banks before signing and agreement for loan. Contact two or more lenders to know interest rate and offers made for you. Select one which suits you most and you need to know the penalty or fee charged by lender for switching the loan or repaying before the tenure of period. You need to make good market research before applying for home loan. There are number of lending companies compete each other for offering loans to new customer. You can get your loan from other banks or lender if your lending company is not providing you the loan. Negotiate with your lender to get best offer on your home loan.

Saturday, June 20, 2009

Credit Card an Ease Loan for Your Requirement



Credit card provides you short term fund/loan for meeting your immediate requirement. Credit card is also known as world of plastic card which provides you an alternative method to pay cash when making purchase or receive any service. A credit card can be an asset for your business or lifestyle, but if you not handle them carefully they will put you in debt trap.

Credit card is simply a plastic card which enables you pay for transaction or service received. One of the main advantages of credit card is bank or finance companies charge no interest if you make prompt payment. Credit card enables you to meet your personal expenses such as shopping, trip or vacation, world tour, buying home appliance, fund for wedding or for other function, fund for emergency etc.

Main disadvantage of credit card is you become a liability for debts if you spend more than affordable by you. You need to spend only for those which you can make a prompt payment. If you use credit card for unnecessary shopping and spending, you will end to paying more interest for your debt every month.

While choosing credit card you need to choose bank or finance company which charge less interest for your credit and no annual fees or lowest fee for your credit card. Before signing for credit card you need to read terms and condition. Make transaction or spend amount which you can afford to repay. Make good research and contact more banks to know the best offer for your credit card. Never use more credit card two is more than enough for individual use.

Credit card can be best used for paying online transactions, pay your utility bills and your monthly telephone and mobile bills. Credit card enables you travel anywhere without taking risk of handling cash. For example, if you are planning to shop for furniture or home appliance around Rs 50,000/- you need not required to carry whole amount. When shopping you can either use credit card or make partly cash payment and remaining by credit card.

One of the myths in using credit card is users think card will make them liability for huge debts. If you have limited transaction in a month and the bill at the end of month is affordable by you, you can enjoy your shopping, family outing, friends or relatives wedding and even fund for emergency requirement. Learn to budget your monthly expense and manage your credit card efficiently.

Friday, June 12, 2009

Know Your Personal Loan

Personal loan is easy loan available to meet your personal requirement. There are number of banks and financial institute compete each other to offer personal loans. HDFC, Citibank, ICICI, Canara bank are some among them which provides personal loan. The loan amount and monthly EMI varies depending upon the profession, income, credit history and other factors.

Before applying for personal loan, you need to know about your lender and for what purpose you are using the loan. Some borrow personal loan for buying vehicle, new house or repair house. You can avail loan such as vehicle loan, home loan which offer more time and better option for repayment without having burden of loan.

Personal loan can be classified as secured loan and unsecured loan. Secured loan needs guarantor or collateral security when applying for loan. Unsecured loan needs no collateral security and easy documentation but interest rate is higher compare to other loans. When comparing personal loan and using credit card, personal loan is convenient and affordable.

You need to contact two or more lender before you apply for personal loan. Negotiate with your lender and apply for personal loan where you will get most benefit or which bank charge low interest. For example, Citibank offers 50% discount on processing fee that can be best utilized by you.

Remember personal loan is available easy and before adding a creditor to your credit history, know your need and lender. If you can manage without personal loan then it is wise. You need to stop impulse buying and spending unnecessarily to make your future secured. So when you apply for personal loan, know your need and interest rate offered by various lenders.

Tuesday, June 9, 2009

Debt Consolidation Loans for Merging Your Loans

Debt consolidation loan helps you to merge your entire loan under one lender or bank and helps you to repay loan in easy installments. Banks offer different loans such as personal loan, vehicle loan, home loan, over draft etc. If you have loans in two or more bank, you may end up paying more than half of your monthly income towards banks monthly EMI.

Paying different loans in a month may not be affordable for you or your monthly EMI may confuse you, here is a solution for your problem. Debt consolidation loan is loan which helps you to consolidate your loan and bring all loans under single lender. Banks offers consolidation loan to borrowers who struggle to pay off their monthly credit card debts and other bank loans. Consolidating loan under single lender helps you to lower your monthly EMI and longer repayment period.

There are number of banks which offer debt consolidation loans to reduce burden of borrower. These loans help borrowers who have bad credit history and improve credit report by eliminating creditors from credit history. Debt consolidation loan can be available under secured or unsecured loan basis. Under secured loan borrower has to pledge his asset or property as security. Debt consolidation loans help to reduce burden of borrowers, improve credit history and eliminate creditors. This is very helpful for small businessman and credit card holders.

Thursday, June 4, 2009

Personal Loan to Make Your Dream True

Banks and financial institutes offer various loans and advance for helping you to meet your immediate requirement. There are number of loans such as vehicle loan, home loan, educational loan etc. When you apply for these loans you need to prove or convince your lender that loan is used for right purpose. For example, when applied for home loan, you need to show details of property for which you borrow loan. Personal loan is one of the loans which you can use for any personal use.

What is personal loan?

Personal loan is loan available for short term for one year to five years. Personal loan can be used for meeting your immediate requirement. If you dream to owe a computer, pay off outstanding debts of credit cards, refurnish house, repair your vehicle or go for world tour. Personal loan needs no collateral security and you can avail loans up to 15 lakhs.

Why personal loan?

Personal loan is easy and available in short period. When compare to other loans personal loans needs less paper work and documents in support. Documents for personal loan includes documents to support your identity, residence and bank statement or income proof.

How can I get a personal loan?

Personal loan is easily available and needs no security or guarantor for loan. You can contact any bank which are lending personal loan. If you have an account in any bank, they will offer you personal loan. Some important banks which lend personal loans are following.

State Bank of India provides personal loan for legitimate purpose such as meeting immediate requirement like medical expense, renovation or business development, expense for Trip or Tour etc.

ICICI Bank is one of the leading banks which offer various loans such as home loans, personal loan, vehicle loan, educational loan etc. Repayment option range from 12-60 months and needs no collateral security.

Citibank is known for its service and fast cash. Ready cash personal loan is one of the important features of Citibank. They offer cash up to 15 lakhs at your doorstep within 48 hours. If you are applying for Citibank personal loan refer the reference code "CF2009" for getting 50% discount on processing fee.

HDFC Bank is leading bank which offers insurance covers for borrower in case of death or permanent disability. Insurance insures principle outstanding on the loan.

Reference:

Easy personal loan

Know more about personal loan

wikipedia.org/wiki/Personal_loan

Wednesday, June 3, 2009

Educational Loan for Higher Studies

Are you planning to do your higher studies or any professional course? Is your course fee a hindrance for making a career? If yes, educational loan is boon for you. Banks offers loans or advance for continuing your higher education. Earlier parents were much tensed when they think of fees and expense of their child’s higher study but now educational loan has become source of relief and help for them.

If you are planning for higher studies and course fees are not affordable by you, you must best utilize educational loan for completing your higher education. This helps you to make good career at affordable cost. If you are resident of the country and your course is approved by central and state government. Course can be any professional course, graduation, post graduation, or diploma you are eligible for educational loan.

Security and guarantor is not required for loans up to four lakhs and if the amount exceeds four lakhs you will have to provide security inform of any investment such as bonds and shares, bank deposits or property.
You need not worry about repaying loan when you are studying, your repayment of loans starts only after completion of your education or after getting a secured job. Normally banks provide up to 10 years for Rs 4 lakhs and higher the amount is longer will be your repayment period.

While applying for educational loan you will have to submit documents such as copy of mark list of last qualifying exam, proof that you got selection for higher education, list or fee structure of your education and your passport size photos.

Repaying time is six months to one year after completing job or when you get a secured job after education whichever is earlier. You need to discuss the detail and interest rate of your educational loan to one or more bank to get best for your education. Banks and financial institute provide 10 or more years time for payoff the loan.

Important banks offering Educational loans:

Tuesday, June 2, 2009

Home Loan for Your Dream Property

Your home is place where you relax and spend your memorable moments with your family, friends and relatives. Buying a home is an investment and your lifetime achievement. Home loan is aid or assistance that helps you to buy your dream home without much burden on your lifestyle and monthly income. Following are important element to consider when applying for home loan.


Important Elements to consider

Credit History: Bank needs to know your credit history before deciding the amount to be sanctioned. Your credit history can be known by your bank statements and banks have access to its applicant’s debt or financial obligations.

Amount available: Repayment of home loan includes amount borrowed and interest on the amount. It is divided into monthly EMI for easy repayment. Loan available depends on your income, monthly expense, age, and tenure or loan period, affordable monthly EMI etc. More your income is more you get loan and if you want more loan but limited monthly EMI, tenure of loan will be extended. It depends on the bank or financial institute that offers you home loan.

Eligibility: Applicant must not be less than 18yrs of age. May or may not be citizen of the country. Applicant must be salaried person, self employed professional or businessman or government employee.

Tax benefit: You can avail tax benefit for the amount borrowed and principal amount repaid. To get the benefit of tax benefit you must pay your monthly EMI without any default and fulfill conditions stated in Income Tax Act.

Co-applicant for home loan: You can enhance your loan amount by including co-applicant for home loan. You can include your spouse, parents, or children as co-applicant for home loan.

Tenure of loan: Tenure of loan depends upon the mutual agreement between lender and borrower. Normally loan can be repaid over a maximum of 15 years for self employed professionals and businessman and 25 years for salaried person. If you reach 60 years of age or loan period whichever is earlier.

Purpose of home loan: Home loan can be applied for buying a new home, reconstruction of existing home, purchase a ready built flat or house and switching from existing home loan to another loan etc.