Category Archives: Finheal

10 Feb

When to funding Your Business with a Personal Loan

funding Your Business with a Personal Loan

Thousands of new and original ideas are being constructed into business ventures every year.
With the call for business development comes the requirement for finance. There are many business loan products accessible in the market today for small, medium and large businesses. But the business has to please many criteria to avail a business loan. Instead, for certain business needs, availing a personal would be an improved choice. But, under what conditions should you use a personal loan for business purposes? The answer to the question can be resulting from the following:

Documentation and Loan Amount:
Applying for personal loan involves minimum paperwork and can be done online. In case the loan amount required is small, you would not like to go throughout lengthy procedures to acquire a loan. Personal loan satisfy your instant cash necessities with least amount credentials.

Interest rates:
Interest rates for personal loan are much lesser than business loans. Banks also offer interest rates depending upon your relationship with them. Having an account with the bank from where you are taking a personal loan is an additional advantage. As an account holder, you are treated as a privilege customer, and additional consideration of interest rates is comprehensive to you.

Business loans also offer you with low-interest rates, but those are loans secured against your business assets.

Collateral:
Personal loans are unsecured loans. No collateral or security is to be provided for availing the loan. Therefore, if you obtain a personal loan, no charge on your personal assets is created. You can additionally take a loan against such property (assets) separately for vital business requirements. Some banks do give business loans with no collateral but those are in the form of Overdrafts and the interest rates are much higher.

Credit assessment:
In the case of startups or new businesses, almost, there will be no credit report or track record of the business. In such a circumstance, you can choose for a personal loan and take benefit of your personal credit ratings and track record.

Business not legally responsible:
Your business, being a separate legal entity, will not be affected by the personal loan transactions. The bank will not have any lien on your business assets to get well the personal loan, although you will be personally legally responsible for the payment of your personal loan.

A personal loan is an outstanding tool for short-term financing of your business. It ensures the smooth functioning of your business with no disturbing its financial structure.

09 Feb

Refinancing Loans – Significant Considerations

Finheal
Finheal
Tags: finheal, finheal.com, home loan, loan against property, loan tenure, loan transfer
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Are you completely happy and fulfilled with the recent loan that you have?

What is Refinancing?
Refinancing loans of any nature are an outstanding option available for smart borrowers. It typically means uneven an existing loan with a new one under different terms to decrease risks and enjoy more benefits. With this, borrowers can with no trouble improve the terms and interest rate of the loan.

Do you wish to improve your present loan? Do you find the interest too much or the benefits too less? Do you wish to enjoy more funds, but your principal bank isn’t really complying? Would your life become easier and simpler, should your loan tenure were to boost?

If yes, Refinancing or Balance Transfer Top-Up is the best answer available for you.

The Indian financial sector has witnessed a number of loan takeovers by diverse financial institutions. Various schemes are often rolled out by banks to entice clients with good repayment history. They offer better loan amount as well as a lower rate of interest and longer tenure to stand out in the competition.

If the idea of a loan transfer is making you curious now, then the following discussion would be significant for you Of course, it has to be a well considered decision as you don’t want to switch without knowing the complete picture.

Why Balance Transfer or Refinancing is a Good Option?
Although, there can be lots of reasons to choose for refinancing, we have compiled underneath some key cases wherein you might want to choose for it.

To get improved your existing debt for business growth or other personal reasons and your principal bank isn’t ready to provide the funds you need.
To reduce the existing and oftentimes longer tenures.
To significantly reduce the monthly EMI payments.
To enjoy a reduced rate of interest.
To consolidate expensive loans or debts into one.

Things to think Before Refinancing Your Existing Loans
Have a look at some vital tips that you must examine before transferring your existing loan to a different bank.

Calculate Benefits vs. Costs

It is not essential that you will forever benefit from refinancing. Carefully calculate the amount you will save by re-financing your existing loan.

Factor in the penalty plus service tax since you are closing your existing loan without completing the tenure.

Be careful of Heavy Mortgage Charges

You will require mortgaging your assets for refinancing as a security, particularly for home loans or Loan against Property. Although home loans are by defaulting exempted from exit penalties, you still need to issue in the new mortgage charges.

Identify the correct refinancing option with lower mortgage charges. In a healthy scenario, you should be able to recover the costs of switching loans within 2 years.

Rate of Interest

The Interest rate is the vital aspect to recognize and choose a better refinancing option.

It is sensible to choose for re-financing only if the difference between your current interest rate and refinancing interest rate is at least 0.75 – 1.00 %, as well enhancing the present debate. This is because many banks charge exit fee for terminating the existing loan, and in that case you may end up paying more than you gain by interest difference.

Tenure

If you want lesser tenure, decide a higher EMI refinancing option and if you need lower EMI payments, opt for higher loan tenure. This relation between tenure and EMI is always inversely proportional.

If you have a rise in your income and want to repay your loan sooner, but your existing bank is not approving on restriction the tenure, then refinancing may help you a great deal.

Evaluate Loan Amount

When opting for refinancing, know that only the outstanding principal is transferred. Hence, you need to evaluate the outstanding amount of loan and interest paid till now.

Refinancing loans can be fairly risky for those with bad credit history.

Refinancing can be availed on any loan type, including home loan, car loan, and LAP. If you have a brilliant credit history, you can with no trouble apply for refinancing or loan top up.

It is sensible to look at all factors previously to allowing for refinancing, and if you feel that it’s an improved deal in the long run, then go for it.

20 Jan

3 Easy steps to get your finances on way in 2017

Finheal
Finheal
Tags: EMI, retirement plan, Systematic Investment Plan
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Strengthen Your Finances

Resolutions are out-of-date, say some. Resolutions changed my life, believe a few. Resolutions are meant to be broken, grin others. Whichever group you fit into, there are a small number of resolutions that ought to be a part of your life – financial resolutions. And trust us; these are not the ones to be broken. We have put jointly a list of the top 3 resolutions that should preferably form an essential part of anyone’s financial plan. If you are by now following a few of these, then more authority to you! For others, now is as good a time as any to take a hardly any of these resolutions and exchange them to behavior that safe your financial future.

#1. Budget, and never stray – If there is one golden rule for managing your personal finance, it’s this. If you want a prospect that is not debt-ridden, then you have to be accountable about your currency. The easiest way to generate a budget is to mark down every single thing that you spend in a month – right from the rent you compensate, down to the biscuit you bought. Write everything down, and at the end of the month you will be surprised to see where your money went. Then use that in order to weed out the playful from the necessary expenses.

#2. Create a financial plan – If you haven’t done so by now, now is a good time to start planning your financial goals in life. Identify your long and short term goals; holidaying in Europe, for instance, could be a short-term goal, while funding your child’s education or buying your own house is a long-term goal. One of the obligatory long-term goals that should be a division of your portfolio is your retirement plan. Calculate how much you need to save up to attain each of your goals (don’t forget to factor in inflation as you calculate this).

Take stock of where your current investments stand (if any) and what are the returns you are getting from them. See how much more you need to build and in what time frame, to overpass the gap between where you are now and your goals. Start a Systematic Investment Plan (SIP) for each of your goals. If you’ve just conventional your annual bonus, or have some inactive money in your account, move it to a high soft mutual fund, best right for your profile and requirement. Depending on the time frame you have for each goal, you could opt for equity (long term) or debt (short term) funds. Every day that you haven’t invested, is a day where money, that could have been made, is lost.

#3. Limits your loans and start a SIP – If you can’t altogether wipe off your debts, strive to limit them to absolute basics. It can be quite attractive to indulge in frequent shopping sprees on exorbitantly priced products, through credit cards and EMIs. But be careful, that if you aren’t prudent about your spends, you could soon see yourself burdened with a heap of debt, and spend the better part of your high-earning years paying them off. Appreciate the beauty of compounding, and how investing early can work wonders for you in achieving your dreams, with little or no loans. Get an obvious understanding of what your total, essential expenses are, versus what you want on an impulse.

Chalk out a plan to see if you can achieve your goals, like buying a house for example, without loans, or at smallest amount with less of it. Investing elegantly in a SIP, for the same number of years that you would be paying off an EMI, can help you get what you require without a loan, and even better, sometimes with extra cash to spare. At Finheal, we offer guided recommendation on how to plan your investments to attain your goals systematically.

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