Yaaree Sort of ‘Loan & Insurance’ Category
Everyone aspires to buy a house and rightly so. However, before you go out for thathome loan, it is important to indulge in a bit of self-reflection and prepare yourself. This is especially true if you are running your own business or have started one recently.
1) Find a loan that suits you – Whenever you go for a loan, do a thorough research. In almost every post I have harped on the need to conduct your own research on what type of loan will suit you, what schemes would fit your bill and which bank to approach. There are numerous banks and financial institutions that can extend a loan to you and it is important to get a clear picture. It is often seen smaller banks sometimes have the best deals and schemes, compared to bigger and more popular banks. You may also seek professional help in trying to zero in a suitable bank with the best option. What is, however, advisable is that you opt for a fixed rate of interest. While it may be on a higher side, it is always good to know how much you would be paying as EMIs when other things around you maybe fluid when starting up.
2) Do not have other debts – A home loan is often a big amount and about per lakh in loan would mean about Rs 1000 in EMI. Hence, if you want a loan of Rs. 30 lakh, it would be give-or-take around Rs. 30,000 in EMI. This is a substantial amount and it is advisable that you first clear away your existing debt before you saddle yourself with another loan. In financial parlance, get your debt-to-income ratio to a manageable level. Banks also look at this ratio to determine what would be the effect of a home loan with regards to your income.
3) A look at those credit cards – Many do not realize that credit cards are a part of debt you owe. Many go on adding credit cards to their name because a bank is offering them. However, when you are seeking a loan having multiple cards means you have a ready medium to a source of unsecured debt that can alter your debt-to-income ratio. It is good to have credit cards, but not multiple one, especially if you are not using it. What is even more important is that you settle all your credit card outstanding debts before you apply for a home loan. Banks are not comfortable with high unpaid credit card dues and more importantly, it will be an additional burden for you as a borrower.
4) Some stability – Try and achieve some level of stability in your business. It is no use piling on debt if you are fighting a battle to run your company. As ambitions soar, I often find youngsters rushing to buy a house without giving much thought. However, it is important to realize that a home loan often stretches into two decades and you need to be reasonably sure of your income stream. It is okay to not have your own house if you are not ready to buy one. Even banks like individuals who have a steady source of income and finances that show a level of certainty.
A business does not have any specific time to require capital. The necessity of funds can arise at any stage or moment of a business. It is very important to specify the exact need of your capital requirements and then apply for any business loan. But, your work as an entrepreneur does not end here because it is also imperative to take the decision where the capital will come from.
Majorly small business owners require money for usual reason that includes: Start-up or expansion of a business To meet working capital needs for business operations Payment of debt and at times employees’ salaries. These are a few main reasons why Continue Reading…
Health Insurance companies support the health care organizations by providing assurance against risk of incurring medical expenses. They assist you in maintaining your health conditions and encourage you to live a healthy strong life. Given below are the top ten health insurance companies in the world in 2012.
1. American International Group (AIG)
American International Group (AIG) in the best health insurance company that is doing justice to its work. It is the leading international insurance organization with operations in more than 130 countries and jurisdictions American International Continue Reading…
The cost of running a car just keeps rising. As if this week’s fuel price rises weren’t bad enough, now comes the news that insurance has rocketed by more than 15 per cent.
The AA found the average comprehensive premium has gone up by £128.71 in a year, to £971.40.
Young and middle-aged male drivers have been hit hardest, largely down to the fact men have more accidents than women..
But even this is set to change, with new European laws in December making Continue Reading…
Soon millions of people will shop for health insurance on their own. The health care overhaul requires nearly everyone to have health insurance, after all, and employer coverage has been slowly, steadily declining.
One way that some health insurers are angling to appeal to millions of new insurance shoppers by opening retail stores where people can buy a policy, check on an existing claim, maybe even take a class in healthy cooking or yoga. Highmark in Pennsylvania and Blue Cross and Blue Shield of Florida are the two insurers that have made the biggest commitment Continue Reading…
Top 10 Ways to Avoid Loan Fraud
Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Below you’ll find the top ten ways to avoid becoming a victim yourself.
1. First of top ten ways to take your time and shop around. You should be able to compare prices and houses. If a lender or broker tells you they are your only chance to get a loan or owning Continue Reading…
Borrowing money has become more and more popular in the UK over recent years, and this is partly due to the fact that it has become far easier to borrow money. The rising popularity of consumer finance has also been aided by the wide variety of deals and the low interest rates available these days. Secured loans have become very popular with those that own property, and this type of finance deal offers affordability Continue Reading…