Confused about Loans???Get the Solution

Queries - Car Loans

noreply@blogger.com (Surabhee) — Wed, 16 Jan 2008 09:43:00 +0000

Q - Can I get tax benefit on two wheeler loans?

A - There are no tax benefits on two wheeler loans unless you are using the two wheeler for the purpose of your business.

Q - Is a loan for the purchase of a commercial car entitled for tax rebate in form of depreciation or interest paid on account of the loan?

A - The interest payable on the car loan can be set off against the income from leasing the car.

Q - Does car loan taken from Public Sector Units like UBI, SBI etc allow part repayment which can be greater than the monthly EMIs, just to wind off the loan earlier?

A - The clause relating to pre-payment on a car loan will have to checked in the car loan agreement. It will normally attract pre-payment charges, but you will have to check the agreement to be sure.

Q - What is the best interest rate that one can get for a car loan? What can one expect even if the tenure is for 5 years, after 2 years or so we could give a bulk amount and reduce the EMI significantly for next 3 years. Is it possible with any bank?

A - Interest rates on new cars loans vary very widely depending on the car and the model since it is usual to club manufacturer discounts into the car loan rates. Though banks look at a minimum returns of around 12-13% for themselves (net of their sourcing charges), the actual cost to the consumer can be lower depending on the manufacturer and dealer discounts available. Shop around to get a deal at the lowest interest rates.

Q - Which loan should one go for for buying a car, personal or an auto loan? Which will be beneficial?

A - To buy a car, one must apply for an auto loan as it will be cheaper than a personal loan.

Q - What type of loans can be claimed for income tax deductions?

A - Home loans, personal loans and educational loans are eligible for tax deduction benefits. However, this is subject to certain conditions.

Education Loan Queries

noreply@blogger.com (Surabhee) — Tue, 08 Jan 2008 12:15:00 +0000

Q - Is education loan tax free?

A - If it is for a course which is of a kind or similar to the one mentioned in section 80E, the interest paid is eligible for tax deduction benefits.

Q - What is amortization?

A - It is the process of knowing the break-down of the EMI(Equated Monthly Installments) into principal and interest components of a loan repayment. It also lets you know how much of your loan is outstanding and how much of your EMI is towards repayment.

Q - Something about study or education loan.

A - Any person can avail a loan for his/her studies both in India as well as abroad for up to Rs. 15 lakh. Banks offer loans up to Rs. 4 lakh without security. Providing collateral or security is mandatory for loans above Rs. 4 lakh. The loan covers the cost of travel, lodging, books, tuition fee etc.

Q - What is GPA?

A - GPA or "Grade Point Average" is a long-term indicator of a student's future performance. Generally, most master's courses require a minimum of GPAs of 3.0 or 3.3, and for the Ph.D. courses require minimum GPAs of 3.3 or 3.5.

Q - Can bank officials reject an application for education loan?

A - Banks can reject loan applications if doesn't meet their eligibility criteria. Taking a loan against property or securities like jewellery, life insurance policies with high surrender value, shares, mutual fund units etc can ensure that it doesn't get rejected.

Q/A - Credit Cards

noreply@blogger.com (Surabhee) — Fri, 04 Jan 2008 11:58:00 +0000

Q - Is using a credit card a good practice for repaying after 50 days or should we use the debit card instead at wherever possible?

A - Using a credit card is useful provided you follow 2 rules:
1) Plan your spending in a balanced manner- Resist the urge to make an impulse purchase through a credit card. If you cannot resist such urges then debit card would work the best for you.
2) Pay off the full amount before the due date - Make the payment before the due date so that you do not pay any late payment interest charges which is quite a messy business.

Q - What do credit card companies or banks gain from the customers who pay their bills on time? If they don't , then why do they have reward points for paying bill on time?

A - It is incorrect to state that banks do not gain anything from consumers who pay the entire sum on / before the due date although the income from such clients is only marginal. Banks make a fee on every transaction that you make using your credit card. The reward points come from this fees. Through reward points the banks promote expenditure on the card with a view that at some point of time you may actually use the revolve payment facility and also they would make more money with more of your transaction.

Q - Could the credit cards be used for shopping online on the website outside Indian IP address or for making payment in dollars? Does the rule permit it?

A - It can be used except for gambling and lottery purposes. The spend has to be within the limit specified by RBI which is quite liberal.

Q - Some banks are charging a service tax @12.36% whereas others are not? Why is it so?

A - All banks charge the service tax @ 12.36% on interest and other fees.

Q - How is minimum amount calculated and what is it significance. Whats the advantage if I pay only minimum amount due to cash crunch?

A - Normally most card issuers allow you to pay off a minimum of 5% of the total outstanding every month. However interest is chargeable on the entire amount from the date of debit. It is not advisable to use the minimum payment facility as the credit charges are quite high (around 36% per annum). If you have a temporary cash crunch you can either get another credit card to pay for it or for longer period you can go for personal loan for paying it.

Q -Is the credit day's limit same for both cash transaction as well as the merchant transactions?

A - Some banks have different limits for cash transaction but the cash limit could be sued for purchases from merchant establishment although vice versa is not possible.

Q - Incase someone uses your credit card by stealing the card details for transactions online, how can one be secured of it and what should be done?

A - First thing to do is to immediately get your card frozen by calling the concerned bank and get the reference number for such request. You can then get a replacement credit card from the same bank which you should keep safely.

Bad Credit Laon - Loan Defaulters

noreply@blogger.com (Surabhee) — Thu, 13 Dec 2007 08:53:00 +0000

Borrowers with bad credit history have a low credit rating and are usually refused loans from elsewhere. As the repayment ability of the loan seeker is crucial before seeking a loan. Hence, as per the loan seeker's circumstances the loans are available in secured or unsecured options.

In order to further ensure approval on bad credit loans, the loan seeker should pledge home or any property as collateral depending on the borrowed amount. Collateral cuts lender's risks and hence the loan approval comes without credit history hurdle. But people should go for secured loans only for greater amount of loan as you the rate of interest would be very low as compared to unsecured loans. Also you can repayment duration could differ from 5 to 25 years.

In case you are tenant or living in a rented house with bad credit history, then unsecured loans are the only options left, although homeowners also are eligible for the same. Smaller amount would be approved for 5 to 15 years on high interest rates.

Tips to Remember:

1. Ensure that you have made a good comparison between the lenders/banks as each has their own interest rate.
2. Take rate quotes from them for beneficially comparing them.
3. It is advisable to take bad credit loans from online lenders for a competitive rate offer and for less costly loan.
Last but not the least, make sure to repay the loan in time so that your credit score improves substantially and loan availing in future becomes lot easier.

Glossary on Credit Cards

noreply@blogger.com (Surabhee) — Mon, 05 Nov 2007 08:42:00 +0000

Below are few of the definition of different kinds of credit cards that we come across:

What is a credit card?

A credit card is plastic money which is used to pay for products and services at over 20 million locations around the world. All you need to do is produce the card and sign a charge slip to pay for your purchases. The institution, which issued the card to you, makes the payment to the outlet on your behalf and would be reimbursed at a later date by you.

What is a debit card?

Debit cards are substitutes for cash or check payments much the same way that credit cards are. However, banks only issue them to you if you hold an account with them. When a debit card is used to make a payment, the total amount charged is instantly reduced from your bank balance. A debit card is accepted only at outlets with electronic swipe-machines that can check and deduct amounts from your bank balance online.

What is a charge card?

A charge card carries all the features of credit cards. However, after using a charge card, you will have to pay off the entire amount billed by the due date. If you fail to do so, you are likely to be considered a defaulter and will usually have to pay up a steep late payment charge.

What is an Amex Card?

Amex stands for American Express and is one of the well-known charge cards. This card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. This card is typically meant for high-income group categories and companies and may not be accepted at many outlets. There is a wide variety of special privileges offered to Amex card holders. For more information, please visit our card browser section.

What are MasterCard and Visa?

MasterCard and Visa are global non-profit organisations dedicated to promote the growth of the card business across the world. They have built a vast network of merchant establishments so that customers worldwide may use their respective credit cards to make various purchases. They also develop various technologies that are required for running the credit card business.

What is a smart card?

A smart card contains an electronic chip, which is used to store cash. This is most useful when you have to pay for small purchases, for example, bus fares and coffee. No identification, signature or payment authorisation is required for using this card. The exact amount of purchase is deducted from the smart card during payment and is collected by the smart card reading machine. No change is given. Currently, this product is available only in very developed countries like the United States and is used only rarely in India.

What is the Diners Club Card?

Diners Club is a branded charge card. There is a wide variety of special privileges offered to the Diners Club cardholder. For instance, as a Diners Club cardholder, you can set your own spending limit. Besides, the card has its own merchant establishment tie-ups and does not depend on the network of MasterCard or Visa. However, since this card is typically meant for high-income group categories, it may not be acceptable at many outlets. It would be a good idea to check whether a member establishment accepts the card or not in advance. For more information, please visit our card browser section.

What is a photo card?

If your photograph is imprinted on a card, then you have what is known as a photo card. This helps identify the user of the credit card and is therefore considered safer. Besides, in many cases, your photo card can function as your identity card as well.

What is a global card?

Global cards allow you the flexibility and convenience of using a credit card rather than cash or travellers' cheques while traveling abroad for business or personal reasons.

What is a co-branded card?

Co-branded cards are credit cards issued by card companies, which have tied up with a popular brand for the purpose of offering some exclusive benefits to the consumer. For example, the Citi-Times card gives you all the benefits of a Citibank credit card along with a special discount on Times Music cassettes, free entry to Times Music events, etc.

What is an affinity card?

The card issuer ties up with popular organizations/institutions which are often non-profit organizations (e.g. Citi-WWF card or the StanChart-Cricket cards) to offer an affinity card. When the card is used, a certain percentage is contributed to the organization/institution by the card issuer.

What is an add-on card?

An add-on card allows you to apply for an additional credit card within the overall credit limit in the name of family members who include parents, spouse, siblings and all children above 18 years of age. Your billing statement would reflect the details of purchases made using the add-on card. You are liable to make good all the payments for the purchases made using the add-on card(s).

How many add-on credit cards can a customer get?

Normally, an issuing bank permits two add-on cards per credit card.

Is it possible to control the spending limit on add-on cards?

Yes. Some credit card issuing companies do set a limit for each transaction as well as for the total value of transactions allowed on a particular add-on card every month.

*source: http://www.apnaloan.com/primers/credit-card-india/cardtypefaqs.html

Open your Own Business by taking the Personal Loan for Self Employed within a shor spam of time...

noreply@blogger.com (Surabhee) — Fri, 26 Oct 2007 11:11:00 +0000

Education Loan's ROI offered by major banks...

noreply@blogger.com (Surabhee) — Wed, 03 Oct 2007 09:11:00 +0000

Check the ROI offered by Major Banks in India

http://www.apnaloan.com/education-loan-india/rates.html

Some Don't to remember while using Credit Cards

noreply@blogger.com (Surabhee) — Mon, 01 Oct 2007 05:36:00 +0000

Listed below are few don't attached with the use of Credit Cards, if you want to remain happy:

Never use them for buying Long Term Expenses - Never buy products such as Cars or any loan time product item from your credit card even though it allows it. Do so only in case you have that much of balance in your saving account or if you have taken a car loan.
Use it within your income limit - If you have a Rs. 25,000 income and your expense is Rs, 35,000, for this short fall never use your credit card for the Rs. 10,000 short falls as it will slowly become a nightmare of debt trap for you.
Borrow money as little as possible as against your credit card - Withdrawing money as against your credit card is not a smartest thing to do. In case of emergencies like traveling, where you fall short of money and need emergency funds, then you can withdraw maximum of 40% of your credit limit, thats is on Rs. 15,000 limit, withdraw up to Rs. 6,000 as you start paying high interest from the time you start taking funds. Hence the best way is to pay it back as soon as you reach back home so as to avoid going in debt.

Documents required while going in for Car Loans

noreply@blogger.com (Surabhee) — Fri, 28 Sep 2007 07:35:00 +0000

Following documents you should carry while going in for Car Loans:

Form 20 or application for new car registration
Photocopy any proof of your address - Insurance Policy, Driving License, Ration Card, Voter's ID, Invoice of the car.
Form 23 or Original Sales certificate document, sales tax receipt and Octroi Receipt
Form 22 or Pollution control certificate
Form 34 or Copy of your car loan / letter from the financier addressed to the RTO asking them to endorse the lien on your car registration certificate
Document of your Car Chassis Number
Photocopy of your PAN number

Car Loan's ROI offered by major banks...

noreply@blogger.com (Surabhee) — Mon, 24 Sep 2007 09:16:00 +0000

Check the ROI offered by Major Banks in India

http://www.apnaloan.com/car-loan-india/rates.html

Any Questions??

noreply@blogger.com (Surabhee) — Sat, 22 Sep 2007 11:18:00 +0000

If you have any questions regarding any kind of loan then get in touch with me on surabhee.gupta@gmail.com

How to get Tax Benefit from education loan???

noreply@blogger.com (Surabhee) — Thu, 20 Sep 2007 10:17:00 +0000

Another Benefit in line to make get your child in for Higher Studies. Get an education loan and get tax benefit along with reducing the overall cost of the loan.

1. Under Section 80 E it is clearly mentioned that a person having an education loan will get a tax rebate for the interest paid (without any limitation as it used to earlier), and not an the Principal Amount, as the repayment of the loan for the first 8 years. Any loan above that time period will not get tax rebate after 8th year.

2. The tax benefit is given to only those people in whose name the loan has been taken, whether it is the person itself, or for spouse or for your children. It does not take into consideration the loan taken by elder brother or sister for the education of their siblings.

3. The loan taken by financial institutions or banks only give you the flexibility of tax reduction. Loans taken by family members, friends or employer doesn't add value in the tax reduction. Some charitable institution are also approved for the same by Govt. Of India.

4. Part time course loan are not included in tax benefit plan. Full time courses for Graduation or Post Graduation are included in the same.

Needs Education Loan - Make sure you have the required docs

noreply@blogger.com (Surabhee) — Tue, 18 Sep 2007 11:01:00 +0000

Below are the list of the docs that you need to deposit in the bank while taking an education loan along with the complete application form:

1. Mark Sheet of the last qualified examination

2. Proof from the institution of your admission / registration

3. Detail of the expenses and the break-up of the course fee

4. Bank account statements for last six months (if you have any)

5. Income tax assessment order for last 2 years. If you are not an income tax payee then your parent's tax statement would also be good enough

6. A brief analyzed statement of the assets and liabilities of the borrower, again of your parents if you don't owe any.

Car Loan or Personal Loan

noreply@blogger.com (Surabhee) — Mon, 17 Sep 2007 09:16:00 +0000

I recently wanted to buy myself a new car and thought that instead of the total payment at one go I would go in for a car loan instead.

But then when I called up various banks to check the ROI they were offering I was shocked that most of banks told me to go in for a personal loan rather than taking it up as a car loan.

Well well I think the way they were trying to convince me it seems that most of the people have come in their rat trap. Now please don't get into this trap.

Car Loans are always better than personal loans.

On car loans you have to pay a lower EMI and also you get a lot of fringe benefits such as free car accessories and many more.

Also to tell you a secret this is the best time for taking car loans at the best rate as during this time the sales goes low and due to quarterly year ending in September sales people need to complete their target and hence you give the best rates possible with maximum benefits. :)

Credit Cards - Devil or Angel in Disguise

noreply@blogger.com (Surabhee) — Fri, 14 Sep 2007 08:54:00 +0000

We should always try to get the best out of the credit cards. They are infact a great gift to us but yes they can become nightmares for us if not used properly....

The best thing that I like about Credit Cards are that I can buy anything form them without disturbing my balance (as I can pay them later when my salary comes due to fixed billing date) and also there is no Interest headache even attached to it. Soemtimes if I forget to pay then also I get a reminder from the bank about payment due date on emails or on my mobile.

Also when you doa big shopping through your credit cards banks offer you reward points and redeem them for anything you would like. Or they might also transfer it to your other card if your due date for payment is coming near.

But yes at it is said correctly that nothing in today's world comes for free. hence, for this also to work properly for you, you should have adequate credit limit in your new credit card for the balance to transfer. Some banks even transfer the balance for free for the initial period.

So with so many benefits make your Credit Cards a blessing for you rather than taking loans over loans for paying credit cards bills.

So be alert and HAPPY SHOPPING....

Zoom out on the favourite car on easy EMIs

noreply@blogger.com (Surabhee) — Fri, 17 Aug 2007 06:07:00 +0000

Wanting to buy the Car Of Your Choice from long time but it doesnt fit into your salary... So what to do???

Well car loans in any case are fairly quick and convenient today to get as compared to the type of loans if you could fulfill the following parameters:

1. You should be able to put up the down payment (about 10-20%) of the on-road price of the car.

2. Proper paper regarding your identity and income documents will ensure that you get your loan quickly.

3. Another very important point which most people are not aware about is that the no-claim bonus on your car insurance (if this would be your second car) follows you rather the car. So if you have not yet made a claim on the insurance policy on your previous car make sure to get the advantage of the no-claim bonus on the much larger premium payable on your new car.

So Happy Zooming....

PSUs OR Private Banks

noreply@blogger.com (Surabhee) — Thu, 16 Aug 2007 06:26:00 +0000

It is more about getting loans fast with low ROI that matters the most rather than which one go for. There is Chinese saying that says that the colour of the cat does not matter as long as it catches mice.

The same goes for the banks as well. There is no things such as which one to go for or which one is better? Though it is seen that currently PSUs are slightly cheaper with regards to home and car loans but then their norms and procedural formalities are slightly more tight.

But when it comes to personal loans, the PSU banks are not aggressive players at all in this field hence their counterparts, private sector banks, are the only choice left with the consumers.

On credit cards field again the PSU banks are little low (although SBI cannot strictly be classified as a PSU since it is managed by a JV between SBI and GE with regards to credit cards).

Want an easy home loan? Here are few easy quick tips

noreply@blogger.com (Surabhee) — Tue, 14 Aug 2007 06:49:00 +0000

The only solution for the same is that get all the proper property documents are with you as in most cases of home loans the problem arises mainly on the property and their document front rather than on credit sanction from the banks.

Anyways it is always advicable to keep all our property papaers, whether onwed or rented, safe with you, no matter if you have enough money and do not wnat to go in for a loan anytime. You never know when you would require them in the future.

No Permanent Address.... How to get Home Loan???

noreply@blogger.com (Surabhee) — Mon, 13 Aug 2007 07:33:00 +0000

Living in a rented place for quite sometime now and looking for a permanent house to call your own. Great News congrats... but it would be difficult for you to get a personal home loan without proper proof of residence, thats what the bank policy says before giving loan to people. Don't worry there are ways to deal with the same:

1. If you are staying in a rented accommodation with proper documentation (i.e. a rental agreement, same address on your passport/driving license etc.) then you can possibly get the loan.

2. Also if you are employed with a top 500 company then it may still be possible to get a personal loan based on some certificate from your HR department.

If still facing problem then take the guidance from financial advisors or use the market place guides such as www.apnaloan.com for further help.

General tips on Home Loans

noreply@blogger.com (Surabhee) — Sat, 11 Aug 2007 12:18:00 +0000

Home Loans are the most confusing of the lot when it comes to getting loans since it involves huge amount or even your property at stake. Hence here are few general tips that need to be kept in mind while looking for home loans from Banks:

1. Since home loans are a long term financial commitment so think and research well before actually taking the decision.

2. Also remember there are other factors such as nature of the rate (fixed or floating, be very careful and read the documents for the floating and fixed rate before signing of the papers) prepayment charges, property eligibility(if you are staking your property for the same) loan eligibility, repayment of the loan, etc that will also determine your choice of the lender.

3. Also there was this case where the person signed in for a fixed rate amount and the bank increased the rate of interest after one year with the increase in the actual market also. Hence as I said before read the documents very carefully, especially the fine prints, before signing.

So All-in-all scout around the finance market before making your choice. For rest I am always there.

Confusion confusion...!!!!

noreply@blogger.com (Surabhee) — Thu, 09 Aug 2007 08:54:00 +0000

When it comes to shopping of small things I don't think twice about buying an item no matter what price. But yes finance is an area where everyone would like to think 100 times before investing. Well I think whether it is investing or taking up loans it is always a difficult are to deal in. and definitely requires a lot of thinking and researching is required.

I usually find it strange when people cry over not getting too many options to look forward to. But for me confusion happens when I usually find too many options to choose from and can't get my opinion stick to one thing. At this point of time I keep remembering a chant said by our ancestors, which my mom keeps telling me... Too little or too much of anything is not GOOD...

Being a financial advisor I have had people coming to me day in and day out asking for some guide and advice in their financial matters. The strange thing that I have always encountered while solving their problem is that they are usually scared in dealing with banks. According to them banks are like lions (well I know my associated will not be too happy with this comparison) who are always ready to tear their prey (loan seekers).

Well in my opinion it is not so. All you need to learn is a little trick to tame them. ;)

So people stop getting CONFUSED and learn the trick… there is a solution to all the problems… so does this have…