Category Archives: Personal Finance

25 Oct

Eligibility to Qualify for a Personal Loan: Discover Lenders

Generally, people who apply for a personal loan encounter financial difficulty and do not benefit from the necessary money to fulfill certain obligations or they want to transform into reality old projects like starting a family business. However, in order to proceed with the application, they have to assess their eligibility and put things in order because when it comes to giving a loan, most lenders initiate a detailed research concerning the borrower’s background, personal and additional information. This helps them determine if the person is trustworthy and has the possibility to repay the loan otherwise, they will be taking a loss. Credit rating, employment history and repayment history, current financial situation, collateral and other eligibility considerations matter significantly in front of any lender so if you know that you do not meet one of the requirements you should rethink your application or find and approach other lenders that might accept you as an eligible candidate.

Credit Score
Logically, an excellent credit score will undoubtedly facilitate the process of receiving your much-desired loan and you can also beneficiate from a lower interest rate while poor credit will narrow your options drastically, if not even ruining any chance of getting a personal loan in the first place. If you have a credit score above 800, lenders will practically compete in providing you options meaning that you afford to be selective. A credit score below 700 is acceptable because you can apply for a loan, but you will no longer have the opportunity to choose a lender. With approximately 600 you will have a hard time finding someone who will approve a loan and with 500 you should kiss your loan goodbye or start improving your credit score.

Employment and Repayment History
Employment stability represents the second requirement that lenders impose because they have to make sure that you are a stable employee and that you do not have the habit to change jobs frequently in order to exude reliability. This does not mean that you have to work for the same company years in a row, but to remain in the same field. If you are self-employed then lenders might require further information in order to evaluate your income and reliability. Repayment history refers to the way you handled debts in the past. Lenders are able to see if you have unpaid debts by checking your credit score and this will definitely affect your eligibility. If you want to avoid causing a negative impact, you can erase late payments from your history by writing a letter to your creditors.

Income Information
Apart from establishing if you are a reliable employee, lenders must assess your monthly income in order to decide if you are able to repay the loan. Therefore, they might demand contact details of your employer or employers in the past. If you do not know exactly how much you make and spend each month, then you should start calculating the numbers and see if you afford the rate. The lenders can require additional information or proof concerning your income, such as utility bills or current bank statements.

Source: valuewalk

07 Sep

Apply Online Credit Card with Finheal

Apply Online Credit Card

A Credit Card is a card issued by the financial company giving the person an option to borrow money or sometimes for sale.

Credit Card Benefits:

Convenience: Credit cards can save your time and trouble for searching for an ATM or keeping cash in hand.
Record keeping: Credit card statements can assist you to trail your expenses. Some cards even offer year-end summaries that actually help out at tax time.
Low-cost loans: You can use rotating credit to put aside today (e.g., at a one-day sale), when obtainable cash is a week away.
Instant cash: Cash advances are rapid and suitable, putting cash in your hand when you need it.
Perks: From common effort miles to discounts on automobiles, there is a program out there for everyone. Many credit card companies offer incentive programs based on the amount of purchases you make.
Build positive credit: Controlled use of a credit card can help you establish credit for the first time or rebuild credit if you’ve had problems in the past as long as you stay within your means and pay your bills on time.

11 Feb

Loans you can acquire in Delhi – There is One for each require!

Many people make use of loans for urgent situation requirements. In Delhi, there are various types of loans available for personal loans to vacation loans. However, using the right loan for suitable use is the key. The rate of interest for a car loan is higher than a home loan. Similarly, personal loan interest rates and charges are higher than a home loan. It is vital to examine the need for loan and accordingly apply for one. Here is the list of different types of loan available in Delhi and their benefits:

Home Loan:
This loan is provided by banks in order to pay money for a property/ home for personal use or for letting out. In Delhi many folks take the way of a home loan as it will assist in financing for big projects and will also offer tax benefits. Just like the folks paying a monthly rent for their space, the amount can be invested in buying a property while using it. Housing is a major investment that allows a family to cut down on much other expenditure.

The potential owner must first appear out for the family’s monthly income and then look out for a loan which is kind so that he need not use his entire life repaying the loan. The Home loan is made available to ensure people find it reasonably priced to buy homes anywhere in Delhi. The rate of interest and other charges are comparatively low and the government is encouraging individuals to make use of this loan alternative for investment.

There are many types of home loan in Delhi, which is used for a variety of purposes:

Home loan for Residents

Top-up loans

Land purchase loan

EMD loans – Loan for Earnest Money Deposits

Loan against Property

Home loan amount totally depends on the requirement; though there is limit is loan amount which is ranging from Rs.1 lac to Rs.50 lac, and this is calculated on applicant’s eligibility, repayment capacity and income.

This helps with capital approval; there is no qualm property prices have boomed in the past 5 years. Investment in home has been forever a safe and elegant move. The value of land always increases and thus appreciation for your investment can be visibly seen within a few years.

Personal Loan:
This type of loans is decided by banks to assist individuals to cover any emergency expenses. This can be used for medical assistance, wedding necessities, buying gadgets, air ticket booking for vacations and more. Some people make use of personal loans purely for emergency needs while others make use of this for extra shopping and luxuries causes. In simple, banks will not confine anyone for not using the money for investment purpose. However, it is not advisable to take personal loan for non-investments. Personal loan will revolve helpful only when there is return on the amount from the investment made and when the return is higher than the rate of interest paid for the loan.

Car Loan:
Just as the name states, this loan is made accessible to meet the monetary requirements in owning a car. As this is not measured as a basic requirement the rate of interest on car loans is high as compared to other types of loans. Car loans are typically secured, i.e. in case if the borrower fails to pay back the loan amount on the car, banks will take ownership of the asset. Essentially, lenders has every correct to recover back the approved loan amount by ceasing the vehicle in case if the borrower defaults to make payments.

Business Loan:
Loan approved purely for business purposes are considered as business loan. Those who are looking for business to start up their business can decide this type of loan. Even for working capital and additional funding for business this type of loan can be used.

There are two main types of interest- Fixed and floating rate of interest. In simple, it can be said that there is loan available in this country for any type of needs. But how much you earn will determine how much you can get. The place you live in will determine what should be your loan amount and EMI value. Living in expensive cities will attract more interest and charges. Bank will scrutinize every aspect of your income and expenditure to check what percentage of your income is available to repay the loan amount. For this they need your salary slips, bank statements, employer authentication and more. Make the most use of these types of loans available in Delhi in case of any needs.

10 Dec

How to obtain a New Car Loan?

If you are first time purchaser, then buying a new car will be a very significant event of your life. Happiness that you get from owning a new car is only going to be coordinated (or exceeded) by that of buying a home.

First car is forever a special thing. But if you are concerned that lack of money will stop you from realize your dream of owning a car, and then you need to give up that worry. The procedure of receiving a car loan is fairly simple and translucent. If one is responsibility his/her due diligence properly, then there won’t be any problem in availing a car loan.

Let’s see the broad steps that need to be taken to avail a car loan:

First thing to recognize is that even although most lenders will be eager to give a loan of 100% value of the car, it’s forever good to have some of your own money to put as down-payment. So get a rough idea of the cost of the car that you desire to buy and try arranging at least 10% of the cost yourself.
Now the next step is of course, to discover the right car for you. Make sure you make sure and compare crossways all brands, car types and variants.
Once you have finalized the car, you need to tax the exact financing condition. As already mentioned, lenders will be eager to give you 100% as loan on select car models. But if you can manage to put in some sum as down payment, then that will be immense.
Now the most significant criteria for selection of loan is interest rates. So compare all available options and choose the loan that offers the lowest interest rate and also, a repayment schedule that you are at ease sticking with.
Once the lender is finalized, the applicant has to submit the loan application with all necessary documents like identity proof, age proof, address proof, income proof, etc.
Banks process the application and establish credit-worthiness of the applicant. Once that is established, the loan application will be approved and loan will be sanctioned.

06 Dec

How to Obtain Tax Deduction on Personal Loan?

Loans assist us in achieving such goals in life which look financial hiccups. Still, they are in the end a financial load for us. The government understands the strain these loans put on us and therefore it offers monetary relief in the form of tax deductions. Several loans like education loan, home loan, business loan, etc. are eligible for tax deduction. However, there is no specific provision in the Income Tax Act about tax deduction on Personal Loan. This gives increase to the query that how can one get tax deduction on a Personal Loan?

Personal Loan usage is flexible, so the deduction is given on Personal Loan on the basis of the purpose for which the loan is taken. If the purpose for which Personal Loan is availed qualifies for tax deduction, then deduction will be allowed otherwise not allowed. Below we can see some cases under which a borrower can get a tax deduction.

Loan amount used for business

An amount expected from a Personal Loan can be invested in the business. If such an asset is made then one can declare its interest payment as a deduction. This brings down the net taxable profit which has the consequences in decrease of tax liability. The best part of such venture is that there is no maximum limit for the sum which can claim as a deduction.

Loan amount used for buying or building of residential property

If the Personal Loan is used for the construction or purchase of a house, then one can have the benefit tax deduction under section 24. However, you have to be able to prove that the sum was actually exhausted on purchase or construction of your house. The maximum amount of deduction allowed in this case is Rs. 2, 00,000 for Self-occupied house. However, there is no maximum limit if the amount has been invested in a house which has been given on Rent or has been deemed as let-out.

Loan amount used for the purchase of any other asset

If the personal loan has been taken for the purchase of any asset like Shares, Jewelry, Nonresidential House etc., the amount of interest paid on such loan would be added to the cost of acquisition of the asset.

The Tax benefit of this cannot be claimed for the year in which interest is salaried but in

Deduction for this won’t be satisfactory correct away in the year in which the interest has been paid, but would be additional to the Cost of Acquisition and Tax Benefit would be permissible in the year in which such an advantage has been sold.

In all the above mentioned cases, Deduction would be allowable for the Interest constituent of Personal Loan. The deduction would not be allowed for the repayment of the principal component, but would only be allowed for the repayment of the interest component.

If the amount raise through a personal loan has been used for any additional reason, then no income tax benefit would be permitted for the alike.

Other important points regarding tax benefits of personal loan for you

1) When you raise an amount through a personal loan, it is not chargeable in your hands because it is not considered an income but a loan.

2) To claim deduction in any of the on top of mentioned cases, you have to have appropriate evidence or proof to hold up your claim.

3) To claim Income Tax Benefits for a Personal Loan, you should keep a copy of all important documents like the amount of loan taken, amount and interest to be repaid and all other relevant documents.

Persnal Loans in Cities

Home Loans in Cities

Business Loans in Cities

Car Loans in Cities

LAP in Cities

Mutual Fund in Cities

Credit Card in Cities