Monthly Archives: May 2014

Home Loans: An Easy Financing Solution


Although there has been a drastic rise in the income levels of people in India, the prices of almost each and every single item has shot up. One of the most alarming, being real estate. What was once considered ‘affordable’ and within the reach of even a common man has almost slipped out of their reach, becoming an impossible price to afford. Therefore, banks as well as NFBCs (Non-Financial Banking Companies) are known for offering a variety of financing options to aid people in the process.

Known as home loans, these lenders are known for offering a wide variety of financing products for seeking home buyers. It is easy to visit the website of any of these financiers (banks or Non-Financial Banking Companies (NFBCs) to read about their different loan facilities.

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Home loan interest rates are one of the most crucial factors in determining which lender to choose from. They are offered at different rates and it is easy to compare these rates online on a single platform, where a person can make a wiser and better decision before availing for one. This provides better insight of what is actually available in the market.

It is easy in today’s time and age to apply for the same online. However, before that one has to fulfil the eligibility criteria to obtain the same. These are generally factors regarding the age at which one can apply, regarding his/her income levels, the repayment procedure, etc. It is also easy to get instant approval for these financing options online.

Each provider will have their own tenure, some of which may range from 12 to 240 months. Here, one can find online forms to fill. However, these can only be filled in, after meeting the eligibility criteria that are imposed by the provider. They can view quotes that are offered by the various providers as well.

The processing is quick online; there is flexible documentation and competitive terms and conditions. Home loan seekers can also request for a call back from the provider by providing their personal information such as name, phone number, email address, the requirement, etc. However, there are also a section of people who prefer the traditional method of availing these financing options where they actually visit the bank branch or Non-Financial Banking Company (NFBC) and apply for the same in person.

So, whether you have decided to avail for these loans offline or online, making use of the internet to compare the interest rates that are offered by different lenders is known to help a person gain a better insight of what is available.

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Current Scenario of Indian Equity Markets


Being one of the largest and fastest growing economies in the world, the Indian economy is dependent on several factors. India is also one of the preferred destinations for many people to make their investments. Investors across the country are always in constant hope that the economy remains stable. However, there are plenty of factors that lead to hindered growth of the economy.

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The Equity Market in India, also known as the Indian Stock Exchange is the third biggest market, right after China and Hon Kong in the Asian region. It refers to the association or body of individuals that have been established for regulating and controlling of different securities.

This body is strongly dependant on three main factors:

  1. The performance of corporate houses
  2. The funding of equity from all over the world
  3. Monsoons

There are mainly two types of funds that are used in the Indian stock market: private equity funds and venture capital funds. The market also deals with various transactions that are based on two major indices: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Besides this, the market is also affected through trade integration policies. This market is also inclusive of the debt market, which is controlled by primary dealers, wholesale dealers and banks. This month (May, 2014), the equity markets started off on a positive note.

They had recorded their highest ever mark in April, before it lost most of the gains where it closed the month on a flat note. The Sensex was even up by 5.9% on April 20th, 2014 (based on a Calendar YTD-Year-to-date basis). In fact, this drastic improvement in the current account deficit (CAD), stability in the currency and moderating inflation (CPI-Consumer Price Index and WPI-Wholesale Price Index) are some of the factors (positives) that have led to a market rally.

As far as the market outlook is concerned, there is tremendous hope of a strong growth uptrend which could also herald 6-7% GDP (over a span over the next 5-10 years). Investing in different equity funds, is yet one of the most popular ways of investing money. The DSP BlackRock –Top Equity is known to be a very good performer and takes concentrated exposures. This year, India’s second largest private bank-HDFC Bank and the state-owned United Bank of India have already made plans to tap the equity markets so as to raise funds to boost the capital base.  

Seeking a Home Loan? Make Use of a Guide Before you Apply for One


In today’s times it has become extremely difficult for even a middle class man to afford a house. As a result of inflation, property prices have increased to such an extent where many people depend on various banks and non-banking financial companies (NBFCs) in order to pay for a house. With the advent of the internet, it has become extremely easy for people to browse through the various banks and NBFCs which offer home loans.
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So, if you are one of those people who are seeking a housing finance, there are many factors which should be kept in mind. These loans can be taken for residential, commercial as well as plot collateral security. They can be used for a wide range of personal as well as business purposes, either as a home loan or loan against property (LAP). They have different tenures, during which a person has to be able to make the repayment.

It has become increasingly popular to apply for these loans online, where many banks and NBFCs offer their services. However, it is important to follow a guide to apply for housing finance. Some of the main factors to keep in mind include:

  •  Eligibility: Anybody, who is salaried or non-salaried, can apply for these loans. They may be an individual/ sole proprietor/a partner in a business/corporate entity. Making use of the home loan eligibility calculator, which is available online can help a person determine how much of a loan that they may avail.
  • Interest Rates & Charges: There are different interest rates that are charged by the various lenders (banks or NBFCs). It is very important to compare these rates. There may be processing fees and foreclosure which are also involved. These rates may vary from lender to lender. The interest rates may fluctuate from provider to provider, but one thing is certain that the higher these rates are, the larger the amount you will have to shell out each month. For example, certain banks may charge an interest rate of 10.25% p.a. or they may even go up to 12.25%.
  • What is the loan process? In order to apply for a loan, one needs to submit a loan application along with all the essential documents. Some of these documents may include KYC documents, income documents, proof of residence, etc. There will be official visits that are involved for the purpose of investigation, tele-verification and personal discussion.
  • How do I Apply? It is easy to apply for these loans. One can submit all the necessary documents at the bank branch or they may even apply for the same online.
  • What are my tenure options? Various tenure options are offered. The tenure of these loans may range from 1 to 30 years. However, this term will not extend beyond one’s retirement age or 60 years.
  • What is the maximum loan amount that I can avail? The loan amount is subject to the income level of the person and the valuation of the property. Besides this, other factors such as one’s repayment history, outstanding loans (if any), etc. may also play a role in determining the maximum loan amount that one can avail.
  • Can I get a home loan without having a bank account? No, it is not possible to obtain a loan without having a bank account. It is necessary to show a bank statement of the past 6 months.

By keeping in mind these points it will be easier for a person to apply for a home loan, with ease.

Balanced Equity Funds: An Ideal Investment Instrument to Park Your Funds


Mutual funds are known to be the most common types of investments that every investor usually starts his investments with. There are different types of funds that a person can own and the main thing which differentiates them from one another is the type of investments that they own.Image

There are some mutual funds which are known only to own stocks and these are referred to as equity funds. There are others which own only bonds. There are, yet others which own both types and are known as blended, or balanced funds.

These may also be referred to as balanced equity funds or hybrid funds and are typically invested in equities and debt instruments. They are thus, equity-oriented as well as debt-oriented hybrid plans. Thus, balanced equity funds are known for their unique ability to achieve a certain level of diversification.

The asset allocation is usually taken care of by the fund manager. These funds are also beneficial because of the risk-adjusted returns which it offers. In fact, there have been many instances when they have been known to outperform equity funds.

This could also be, because the fund manager employs an aggressive method on the equity portion and also has a significant small and mid-cap exposure. It could also, be a result of stock picking or portfolio management capabilities of the fund manager.

Investing in these types of funds is known to be extremely beneficial for investors. It can help to achieve strong long-term track record for its returns. It also is a result of dynamic asset allocation between equity and debt funds. As a result, it combines high-return potentials of equity asset class with the low-risk benefits of fixed-income asset class.

Investing in these funds is primarily suitable for those investors who seek long-term investment horizon and capital growth and income. They are known to involve a high amount of risks with them. Some of the top sectors where these funds are invested in are banks, software, pharmaceuticals, finance, textile products, petroleum products, pesticides, consumer non durables and construction projects.

There are plenty of mutual fund companies offering various balanced mutual funds to invest in. It is easy to browse through the various fund companies online. Investors can even make their investments for the same online. However, before making any investment it is always advisable to first consult a financial advisor before making any investment.

Different Types of Child Plans


Congratulations! You are gifted with an adorable baby. You are surely filled with happiness by the coming of this bundle of joy. Amidst all this, it is also very important to not forget your responsibility. The responsibility of presenting your child with a better future and be well prepared for the ever soaring education cost.

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Before you begin your hunt for the best child plan in India, let us help you understand the different types of child insurance plans.

Single Premium Plans

As the name suggests, the buyer has to pay a lump sum amount when buying this policy. There are no quarterly or annually premiums incurred from the buyer.

Regular Premium Plans

Under this plan the buyer of the policy is bound to pay the premium annually until the child becomes 18 years old. This amount is later paid back to the insurer over a time period of 4 years. This policy also comes with a cover for the parents. For instance, in case of the parent’s death before maturity, the insurance company takes care of the premiums and gives the child the sum assured. It also comes with the feasibility to take out your money at any moment.

Endowment Plans

Endowment plans entirely depend on the performance of the insurance company. The profits earned by the insurance company directly affect the value of your funds. It is however advised to not expect much from these policies. There are many financial institutions offering this plan, for instance SBI child plan, ICICI Prudential child plan, children plans from AEGON Religare etc.

Child ULIPs (Unit Linked Insurance Plans)

Child ULIPs take advantage of equity investment. The longer time you stick to them, the more you are likely to lower the risk involved with them. Higher entry charges are incurred for purchasing these plans. The value of the money invested, ascends as the time passes by. These plans also yield better returns.

The Modern Modes of Banking


The usage of internet over the last few decades has soared. It has completely changed the way chores are taken care of now. Be it communication, shopping, money transaction or boosting the work sector. The changes are amazing and significant.

Internet has given people the feasibility to carry out their tasks while on the go. With every sector catching on this need of their consumer the banking sector is no different. Every bank these days is getting equally competitive with a huge trail of services they have on offer.

The consumers are getting modern and so are the banks moving ahead from the traditional way of banking. Internet and mobile banking have paved the paths to new chapters in the banking sector. Let us put light on the many advantages of these features.

Advantages

Payment of Utility Bills: Standing in lengthy queues and paying your utility bills can be a real tedious task. It gets even tough if you happen to miss on the due date of the payments to be made. There are many private sector banks who understand this need of yours. Now you can pay your utility bills or mobile recharge online. Some even have gone ahead and given you the service of setting your account on recurring mode to make your bill payments time to time. So now you can peacefully carry on with your busy schedules as your bill payments are completely taken care of.

Fund Transfer: A cheque takes at least three working days to get encashed in your account. However certain circumstances can ask for a huge amount within a short span of time. When under such circumstance, internet banking can prove to be very effective. It comes with feasibility to conduct large transactions online. For instance you can pay your child’s fee online or as small as conducting a prepaid mobile recharge.  Where you can transfer money to another bank account of the same bank or other bank, however transactions to other banks are charged some nominal fee depending upon bank to bank.

Account Details: You needn’t every time step into the bank to update your passbook and to get hold of your account details. You can now keep a tab on your account online as well. With your unique log-in identity number, you can avail all your account details. The money debited and credited, if you have undertaken a loan from the bank then the whereabouts of the EMI etc.

Ask for Service: Banks are completely at your service these days. You needn’t write a big formal letter to the branch manager requesting for a certain service to be provided to you. Their websites are designed in such a manner that all your needs are just a click away. You can request for a new cheque book, passbook or stop of a cheque payment and many such tasks are now just a click away.