loan against property Archives -

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.

08 Feb

Eligibility and Criteria for Loan against Property in Ghaziabad

Are you setting up for your children’s big fat Indian style wedding ceremony? Want to send them to overseas for better tutoring? May be a long vacation to a dream destination with your family is the next thing in your TO DO List? Or you might be thinking of how you should get bigger, your small business to make it an enormous achievement. Is the worry of arranging such a huge quantity to make your dreams come true worrying you? If yes, then Loan against property (LAP) is the answer for all of your doubts.

It is a secured loan type which usually has a longer tenure and smaller interest rate than a personal loan. Anyone who owns a property (self-occupied or commercial), can apply for it. LAP applicant is given a certain particular percentage of the market value of property.

Generally there are a variety of parameters set by banks to apply for loan related products. However, there are certain eligibility criteria that are common for every customer who is applying for all LAP products. Below, we have enlisted some of these common criteria for your reference.

Eligibility Criteria for Loan against Property

The most important criterion necessary while applying for Loan against property is that the property should be a freehold and it has to be self-owned by the applicant.

Another very important common parameters are:

Who can apply for LAP?

To successfully apply for Loan against property or Overdraft loan, you need to be at most one of the following:

Salaried or Self Employed Entities
Salaried Corporate Employees or Salaried Government Employees
Salaried Consultants
Proprietors
Professionals (Doctor / MBA/ CA or other)
Private Limited Companies/ Directors/ Partnership Companies/ Partners (Minimum 51 % Shareholder or partner should be loan applicants)
HUF(Hindu Undivided Family)

Who have miserable chances of getting LAP?

Some applicants with even high collateral value are deprived of loan on various bases. Here’s counting who all are not entitled for securing a loan against property.
Salaried Individuals receiving salary in Cash or Kind only. Or other salaried individuals not receiving regular salary.
Self Employed with Negative Profile or those involved in High Risk Industries (Real Estate Developers / Small BPOs / Share Traders)
Self Employed organizations in net Losses
Politically exposed People

Documents Required to Apply for LAP

Below is the list of documents that are generally required to apply for LAP.

LAP application form
Passport size photograph(s)
Proof of Identity, date of birth, residence and applicant’s signature: Passport, driving license, voters ID, PAN card, ration card, telephone/electricity/water bills.
IT Returns / Computation Of income / Complete set of Audit reports or P&L AND Balance Sheet Duly attested by regular CA for last 3 years
Income proof: (Salaried) Bank account statement or salary slip for the last 3 months, and Form 16.
Business Continuity Proof (for last 3 years), latest VAT / excise / Service Tax Returns for last one year depending on the nature of business.
Bank Account Statements of last six months (may vary as per different bank’s requirements.)
Copy of property documents / papers to be mortgaged along with respective Sanction Map / Municipal taxes.

31 Jan

What you require to identify: Loans against Property

Get Loan Against Property at Lowest Interest Rate

Sending children abroad for education or finance a business requires an ample amount of money, and this amount is not usually willingly accessible for everyone. The most ordinary ways to acquire funds is to take a loan. The loan could be a personal loan for the requisite amount or you could take a loan out on your property.
A loan against property (LAP) is a loan given or disbursed against the mortgage of a property. The loan is given as a definite percentage of the property’s total value, typically 40% to 60%. This loan falls under the secured loan category where the property is used as security. These loans can be taken for a variety of reasons such as financing your business, meeting family obligations such as marriages, purposes of higher education, funding medical treatments or your personal reasons.
The loan can be in use out of your self-occupied or rented residential property. This could be a house or even just a plot of land. To be eligible to apply for a loan against property, banks must approve the following fields of the applicants:

Your income, savings, debt obligations
Cost/value of the property mortgaged
Repayment track record for other loans, credit cards, etc.

While most banks have other criteria as well, these three are ordinary among them all. The interest rates on loan against property range from 12% to 15.75% and the tenure is for 15 years.

A loan against property is one of the most excellent ways to raise money. The only disadvantage of this kind of loan is that if the borrower is not capable to pay back the loan, the bank takes possession of the property which was used as collateral. So, before taking this kind of loan, one should take into account how dependably they would be able to pay back the loan.

10 Jan

Here’s What no One Tells You about Loan against Property

Finheal
Loan Against Property
Tags: EMI, LAP, loan against property, secured loan
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Here’s What no One Tells You about Loan against Property

LAP – Loan Against Property

A loan against property (LAP) is just that – a loan you get against a property you need to keep as collateral. This makes loan against property a secured loan. The borrower gives a guarantee of repayment using the property as the security.

The rate of interest for a loan against property differs from Bank to Bank. The tenure of loan against property can be up to 15 years.

Loan against property is a fantastic way to arrange for funds when you want to meet any type of high expenses. The list below includes (but is not limited to) what it can be used for:

Wedding
Setting up a business
Purchasing a new home/ land/commercial property
Studying abroad
Medical emergencies
Travel/ Vacation/Honeymoon

The financial information, capability for reimbursement, and value of the property are the majority normally assessed. But other common factors banks look at are:

Your income
Savings
Debt
Value of the property mortgaged
Your past repayment record for loans, credit cards, etc.

Benefits of loan against property:

The long tenure of LAP makes the EMI more reasonable
The loan amount is much superior as compared to a personal
As it is a secured loan. the rate of interest is lower compared to any other unsecured loan
You have the chance of liquidating LAP whenever surplus funds are available without incurring a prepayment penalty
LAP can be easily refinanced through other lending institutes

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