Category Archives: finance

Fix your finances up!


We live in a world wherein the amount of trust one places into a fund or scheme is heavily dependent on the amount of monetary returns that it can reward you with. In such a scenario, people are increasingly likely to ditch highly risky schemes and instead look for a programme that doesn’t bleed more money than it generates each year. One such example of a fund is the fixed income scheme. Here are some things to know about them.

fixed income scheme

  • They are safe

Unlike the funds trusted by people to pay back larger magnitudes of money in comparison to the investment, fixed income products work on a very different premise. The amount pledged here is fixed in magnitude and does not suffer the whims of the market and its fluctuations like the other funds out there.

fis

  • They are user-friendly

Due to the optimum balance that they maintain between input, yield and the amount of liquidity (or cash) required, fixed income plans are perhaps the most suitable for those investors who are adjudged to have a very risk-averse profile, meaning that they ideally prefer to avoid the risk of losing money at all. Moreover, these plans allow for a regular and quantifiable return which is stable every time, thus appeasing those who are not too fond of unpredictable winnings (or losses, for that matter)

  • The working of a FIP

The plan intends to yield returns to the investor from a differing mix of debt as well as stock-related options wherein the money is invested. The positive is that one does not have to worry about market forces, interest rates or even larger investors throwing a spanner into their plans for growth, as the increase in returns here is constrained, regulated and incremental in nature.

  • Where to find one?

Most financial institutions will offer a variety of such plans. It is important to read the fine print to keep oneself aware of all obligations. Moreover, one should research thoroughly before committing to such a plan.

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Second Hand Car Buying Tips


If you wish to purchase a second hand car, then it is absolutely essential to know how you can obtain a used car loan. There are a number of banks that offer used car loans which are quite simple to obtain if you follow a few guidelines. This form of a car loan takes into consideration the age of the car and its model for financing decisions. Mentioned below are a few things you need to keep in mind before availing a car loan.

The age of the car

Availing finance for a new car is relatively easier, but in case of used car loans, one of the crucial aspects of it is making a decision as to whether the required loan is worth taking up or not. The model of the car is also taken into consideration because if its availability in the market. If the model no longer exists, then there is a possibility it wouldn’t be financed. The age of the car and the tenure is used to determine the kind of finance it would generate. Also, the tenure is also determined on the basis of the age of a car.

Interest rates

The interest rates are based on the valuation of the car which is determined on the basis of the condition of the car, the number of kilometres it has undertaken and the model. This valuation will eventually help the bank of the financer to lend you money in order to purchase. Therefore, the interest rates are charged in accordance with the car model, the age of the car and the customer profile. It is better to look out for a bank than a lender because you will be offered a lowered interest rate via a bank than an NBFC. The processing of the documents does not take much time; it takes about 6 to 8 days approximately.

You can look out for a dealer

The current scenario has a growing number of people who sell their cars off as soon as a newer model hits the market. This way, you have a larger option to avail various used cars. Also, there are a number of organised dealers who source cars and certify them after which they put them up for sale. These dealers ensure the cars are in a great condition, accident free and whether the documentation work is complete or not. You can also avail a warranty of a few months to a year through these dealers.

Quick Tips to Avail Tractor Finance for Agricultural Purposes


Tractor finance for agricultural purpose is extremely useful for people whose primary mode of occupation is farming. In earlier days, this occupation was conducted by making use of bullock carts and ploughs but with the advent of technology, things have taken a rapid turn, for the better. The productivity has definitely increased with the usage of tractors and they are useful to simplify the complicated farming process.

The main issue here is the affordability of these machines. Purchasing this machine becomes difficult for some; therefore, quite a number of banks launched flexible tractor loans in order to realise the dreams and ambitions (of the farmers) of owning a tractor and multiplying the output.

Tractor Finance for Agriculture Purposes

The following tips will help you obtain a tractor loan:

Look out for a financer

This is one of the most important tasks because quite a number of financial institutions will offer you varied rates and you need to select one that suits your needs best. This can only be possible if you read the loan documentation carefully of every institution you approach. This will help you decide what is perfectly suited to your requirements.

Apply for the one offering you best interest rates

The interest rates always depend upon the amount you intend to borrow, the duration of the loan (also known as the tenure) and other similar factors. Hence, you should keep that in mind before availing tractor finance for agricultural purposes.

The documents required

In order to avail tractor finance for agricultural purposes, you are required to produce the following documents:

  • Documents pertaining to land ownership
  • KYC documents (that include your name, age, address and DOB)
  • Encumbrance certificate
  • Your guarantor’s KYC and ownership documents

You can avail the facility of a foreclosure

You can also avail a provision where you can foreclose the loan before the closing date. This is for all those people who do not wish to remain under the debt of a loan (for a long term). This provision is allowed after the completion of 6 months (commencement) with an additional fee of about 5 percent on the outstanding loan.

Tips for Receiving an Approval for Small Business Loans


Securing funds for small business loans have become simpler; you need to follow the right steps and prepare in advance to increase your chances of securing a business loan approval.  Certain companies that are looking out to grow require these loans to increase their working capital, upgrade or hire more employees.

Take a look at the following details in order to avail a business loan:

Provide all your information

This is mandatory and you are required to produce all the specifics and details about how you intend to make use of the funds. You also need to provide them with information regarding how you will accomplish your goals; therefore, you should prepare in advance to answer certain questions that the lender will pose to you.

Share your financial information

You will have to provide your lender with all the financial information and background of your company and your future growth plans that include your personal information. This information will help the bank and the lender to gain an insight into your current financial scenario in order to sanction your business loan. This is mandatory because a lender would be required to know all your past history so that it is easier for him/her to approve your loan.

Try looking out for multiple lenders

This requires a bit of research where you can create a list of potential lenders and discuss with them the possibilities of the loan you wish for. This will help you create more options if any one of them declines your application. Also, their feedback will help you prepare better for future business loan applications.

Look for SBA lenders

Before you take any step regarding a business loan application, you should definitely visit counselors who can assist you with any loan process. They shall also help you with various products available that you may not be aware of. Therefore, with a little assistance, you may be able to secure a loan and build your business further.

Commercial Vehicle Finance and its Importance


First of all, what are commercial vehicles? These are vehicles, like pick-up trucks, mini-vans, three-wheelers, etc., that are specially designed to transport cargo or paid passengers. These vehicles are engineered in such a way that they are able to take on both the smooth city roads and the tough rural terrain.

commercial-vehicle-loan-960x320 (1)

Alright, so what significance do these vehicles have for a country India? Well, our economy is booming, mostly due to small and medium scale businesses. These businesses have seen a tremendous increase in their supply needs, this requires them to have commercial vehicles. Usually, these businesses need to purchase more than one commercial vehicle, which puts a lot of financial pressure on them and to ease this pressure, commercial vehicle finance comes in.

Commercial-VehicleThere are a lot of private and nationalized financial establishments that provide commercial vehicle finance. Most of them would first try and understand the need of your business and would then tailor make their loan to best suit the growth of your business. These loans are applicable on almost all commercial vehicle brands and unlike other vehicle loans, are disbursed fairly quickly. Many financial establishments tend provide loan of about 75-100% of the price of the commercial vehicle, thus, letting business owners focus on the growth of their business and not on running around to gather funds. Interest rates too tend to be on lower side, typically ranging between 10-20%. Most establishments also require minimal documentation and provide you with various flexible repayment options.

Small and medium scale businesses are the backbone of our nation’s economy. Pick-up trucks play a major role for cargo needs, whereas mini-vans and other vehicles are used as a means to transport people. These businesses along with their commercial vehicles will play a vital role in the economic growth story of our nation. Commercial vehicle finance will simply help such businesses prosper.

Should You Buy Life Insurance This Year?


The year 2015 has already begun and we are pretty sure that you may have made a few resolutions. Moreover, you may have even started working on these resolutions in full swing. Making New Year resolutions is a part of many people’s lives, especially for the purpose of welcoming the New Year.

life-insurance

Such resolutions can start from losing weight, going for jogging, purchasing a new car, etc. There are thousands of wishes and necessities which people put forth as New Year resolution. While most of them are meant to make your life better, a few of them may be reserved for protection of life. One such resolution that will offer such protection is life insurance.

What is Life Insurance?

Life Insurance is a noble financial instrument that offers substantial financial reimbursement to the nominees of the insured. For a small amount of premium, you can easily avail extensive life cover. No other financial product offers such extensive benefit. Thus, it is said to be noble.

Why should you buy a Life Insurance plan?

There are several life insurance companies in the market that sell an assorted range of products. These products cater to the various demands of people. Based on the demands and protection offered, these products are classified as:

  1. Term Insurance Plan:
    This plan offers extensive financial reimbursement to the nominees of the insured person after any unfortunate event that causes death.
  2. Whole Life Plan:
    Whole Life Plan offers the combined benefit of death cover as well as savings advantage. The savings advantage is known to last for the entire life time of the sum insured.
  3. Family Income Benefit:
    This offer cover for the entire family. It is actually analogous to a monthly income plan as it provides periodic pay-outs to the insured individuals.

The Pros and Cons of Home Construction Loan


Building one’s own home is one of the biggest joys of life but sometimes, one has to hold back due to poor financial circumstances. In order to eradicate this particular hurdle, you can avail a home construction loan that involves the payment of the construction and mortgage of a property. A construction loan differs from a traditional mortgage. These loans have certain advantages and disadvantages for a borrower; thus, you need to be sure of all the pros and cons associated with a Home Construction Loan.

Construction-Loan

One of the main advantages of availing this home loan is that you save a lot of time and energy, since you can close it in one instance that leads to less paperwork and stress. Also, you can reduce the closure costs, which are somewhat expensive. Another advantage is the fact that you can avail a good interest rate, and can choose from a fixed or floating interest rate.

Here are some points you might need to consider before selecting a home construction loan.

Build your own house

You can avail independence to building your own house because construction loans increases your chances to borrow a large amount of money, in order to build a house. When you undertake a traditional mortgage, you are supposed to purchase an already existing/constructed property. Thus, this process helps in fulfilling al your construction needs.

Construction to permanent loan

Borrowers are allowed to receive a construction to permanent loan by home loan companies wherein a loan begins as a traditional construction loan and is eventually converted into a permanent mortgage. Also, you will have to only pay for one closing cost, rather than paying for two.

Interest rate

The interest rates vary every year if you avail a floating interest rate policy. It is extremely advantageous for you when the interest rates drop at intervals. This way, you can pay a lesser amount. Bu if the interest rates are higher, say during inflation, then it can create problems for you because you shall have to pay much more than you originally planned.

Short Term

This kind of a loan has a short tenure, therefore, you will be required to take an extension or reapply for finance. When you are in the construction phase, you will have to avail a regular mortgage if you do not have a construction to permanent loan.

Thus, you can avail a home construction loan if you wish to fulfil your dream of a home that you can your own.