5 Types of Loans to help you financially in 2017

The New Year has jumpstarted already and the best resolution you can make for this 2017 is ensuring a better financial stability for yourself. Make safe investments that give adequate returns, plan daily and long-term expenses, secure funds for important things when necessary.

In the pursuit of prospering your finances, you may require certain types of loans so that you do not lack economically in clenching your goals. Here are 5 types of loans that can help you stabilize or strengthen your finances this 2017.

Business Loan for Crucial Company Developments

If you are self-employed and run a company, you may find the New Year a good time to expand your business. You may want to explore better trade opportunities and take advantage of trends that reflect your business goals. Requirement for a satisfactory economical support to achieve these possibilities can be fulfilled with a business loan from loanbaba.com.

If you find it difficult to liquidate assets or get instant cash-support, then business loan will definitely help in providing a strong financial backing for your business plans.

Personal Loan to Meet Myriad Expenses

The 2017 year may surely hold a lot of surprises. Definitely you would like to lead your life into the New Year with enough monetary backing to satisfy any economic needs. Be it shopping, paying off debts, getting cash for travel plans, setting a start-up company, etc. you can apply for a personal loan as less as INR 1 lakh for securing any fiscal assistance.

Small Cash Loan for Monetary Emergencies

Financial emergencies can come up any moment and rupture economic stability if immediate cash support is unavailable. But, you need not worry as at loanbaba.com you can get small cash loan within 24 hours, and borrow up to INR 50K. The money is successfully credited to your bank account the very day.

Instant Education Loan for Students

The New Year an also throw up many opportunities for education, be it a vocational or professional course in question. If you are a parent to someone, and your child shows brightness at any skill that can be honed, or his/her college or school fee is pending, then you can set the finances right for the purpose

Like an instant cash loan, a small education loan up to INR 50K can aid in overcoming economical crisis hindering your child’s studies. Such short-term study loans can be easily repaid without affecting your finances.

Loan against Property for Important Expenditures

A mortgage loan or loan against property is a secured loan taken against a property you own. If you have special financial needs this 2017 that require monetary support, then taking a loan against property can help. You can apply for a mortgage loan for end number of reasons, but at the same time, you need to adhere to a financial planning, so that the loan is repaid in time.

The tenure for loan against property can extend to 15 years, so you can quit your worries, and repay the loan comfortably.

[Source: http://blog.loanbaba.com/5-types-of-loans-to-help-you-financially-in-2017/]

Beginner’s Guide to Loan against Property (LAP)

What is a loan against property?

A loan against property 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.

How much loan can I get against a property?

The loan amount you get depends on the value of the property. Usually, lending institutes sanction a loan of, approximately, 65% of the value of the property.

How much is the rate of interest of loan against property?

The rate of interest for loan against property ranges from 12% to 16%.

What is the tenure of loan against property?

The tenure for loan against property can be up to 15 years.

 What can loan against property be used for?

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

What type of properties can I take a loan against?

You can take a Loan against Home:

Self-owned residential property

Self-owned and self-occupied residential property

Self-owned but rented residential property

Self-owned piece of land

Self-owned commercial property

Self-owned but rented commercial property

 What factors are assessed to determine my eligibility for loan against property?

Your financial information, ability for repayment, and value of the property are most commonly 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.

What are the other advantages of loan against property?

The long tenure of LAP makes the EMI more affordable

The loan amount is much higher 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 prepayment penalty

LAP can be easily refinanced through other lending institutes

[Source: http://blog.loanbaba.com/beginners-guide-to-loan-against-property-lap/]

Features of Home Loan Calculators

Home loan calculators are used to help a current or potential real estate owner determine how much can afford to borrow they are a piece of real estate. Mortgage calculator can also be used to compare the costs: interest rates, payment schedules, or help change the determine application trust in the length of the mortgage loan by making principal payments added.

Thesis calculators are tools that the user to enable the automated quickly determines application trust the financial implications of changes in one or more variables in a mortgage financing arrangement. The major variables include loan principal balance, periodic interest rate compound interest, number of payments per year, total number of payments and the regular payment amount.

You will find separate interest rates you are able to choose from depending on the marketplace prevailing conditions, credit profile and reasons for your loan. Home loan calculators could be used to estimate Loan on Property, auto loans etc. Will the interest rate depends on the kind of loan you call for. Most calculators on the internet for home will enable you to enter to obtain numerous combinations separate outputs.

They help you to choose the periodic terms and then calculate you need a loan calculator helps you to choose the periodic terms and then you need to be calculate the quantity raid each and every month now and listen to the you need men and women when they bank can dictate terms tell them rather according to go to your preferences.

Order bank still wants to verify the particulars on some monetary your status, your household employment and just before approving background so often the calculation you made which will vary. Some calculators ask can the frequency of payments you are able to make in a year. Other people want to ask the quantity of down payment you are able to make some other people and the home insurance and property tax expense.

Making use of these figures, a Home loan calculator can accurately project total monthly home loan payment amounts that may consist of principal, taxes, interest and insurance. They are probably the most powerful and valuable online home loan applications available on websites, which certainly functions to the future of benefit homebuyers.

Customers can make use of some of these, and various other home loan applications to acquire all round to estimate of the price of their loans you buy the old structures will not be expensive but good will get you money after renovating. Websites in the internet can give you details of the available places along with their prices. You can know these details of properties from the local newspapers and this help you to locate the property you intend to buy which.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/features-home-loan-calculators-596670.html?]

How Can You Benefit From a Loan Against Property?

When it comes to applying for a loan, there are several factors you will need to consider. For one, you may need to review the requirement for the loan. Do you need the finance to pay off a previous debt or do you need it to purchase a car? While there is a financial requirement for both, the situation for each one is different. Opting for the right loan for the right situation is important. But in the occasion, you need the finances to satisfy multiple requirements; the loan against property is your best option. Here is how you can benefit from this loan:

Low loan rates

When it comes to acquiring funds to satisfy your financial requirement, you will also need the means to repay it. While there are several loans in the market, they may or may not satisfy your financial requirements completely. Amongst the different loans, the personal and the loan against property are the only one that will provide you with the flexibility to use the finances for any type of financial requirement. However, the personal loans come with high rates, especially when it comes to the interest rates. In this case, the best alternative to such a situation is the loan against property. You only need to submit your property as collateral wherein which, you will receive a amount that will reflect your property value.

Multi - purpose loan

Plenty of loans are available in the market. However, each of these loans has specific function and is required to be used for specific needs. For example, a business loan can only be used for a business related financial requirement. In the same way, gold, home, and car loans function in the same manner. They can only be used for the purpose they have been provided for. However, in the event that you need funds for multiple purposes, the personal and the Property Loan will be viable options for you. In this case, the loan against property will prove to be the viable option owning to its beneficial and low rates.

Best with short tenures

As a part of the loan requirements and features, certain loans come with certain tenure range. For example, home loan tenures can last between 10 years to 30 years. Similarly, other tenures last for lengthy periods of time. No doubt, a long tenure will provide the applicant with the convenient means to repay the amount. However, with long tenures comes high interest rate. But with low rates, the loan against property will provide you with the required amount and the means to repay back the amount in convenience.

[Source: http://www.sooperarticles.com/finance-articles/mortgage-articles/how-can-you-benefit-loan-against-property-1516442.html?]

It Is Easy To Apply For Online Mortgage Loan

Before financial crisis people would felt free to walk into the banks even if they had bad credit rating to get their loan approved by banks. But now this can be no longer possible as the banks have increased their lending requirements in order to get the mortgages approved. There was a time when state mortgages were very popular but not anymore. You have to go through strict criteria to get your loan approved. These days you can apply for online mortgage loan which is a very easy and efficient way to get loans.

In case you have bad history like poor credit or past bankruptcy so you have to provide a lender with some extra amount of money for risk that he is taking by approving your loan. Usually people with poor credit rating have to face more defaults on loans and banks offsets the risk by charging more interest rate and fees. There are some lenders who take advantage of those with poor credit rates so for them it's good to shop around for a while before taking any decision.

If you choose short term mortgage in order to pay off the loan faster, then, you will have to pay higher monthly installments. Fixed rate home mortgages however are easy to pay as they are long term and installments that you pay are also less in amount.

An interest only mortgage loans also has many benefits. If you are finding difficulty in applying for online mortgage loans because of the rise in the prices of houses then interest only Loan on Property may be the only answer. There are many who do not know about interest only mortgages but they are getting increasingly popular day by day. Before considering they go through all the facts and details.

Mortgages with flexible rate of interest can be very tempting for a customer especially when the rates are low. But at the same time they are very uncertain. By opting for fixed rate mortgages one has to pay monthly payment which remains stable regardless of changes in the interest rates. All you need to be is little bit cautious and intelligent in your research, and you will be able to find a genuine online mortgage loan which will meet your all requirements and allow you to be a proud homeowner. If still confused, take help of professional expert who are 24*7 ready to help you to get mortgage loan. Check out the many online sites offering mortgages. If you have low credit scores it is possible to obtain a mortgage loan through traditional methods but unfortunately this service is not yet available through the online mortgage loan.'

[Source: http://www.sooperarticles.com/finance-articles/mortgage-articles/easy-apply-online-mortgage-loan-916332.html?]

Tips to Reduce Interest Burden on Home Loans

The biggest expenditure for most individuals is the monthly installment paid towards the loan taken for buying a home. This expense accounts for approximately 30% to 40% of a person's income. This makes it difficult for users to invest towards achieving other financial goals.

Reverse compounding effect

Investments earn higher returns when these are held for a longer period of time because of the compounding effect. Many homebuyers choose longer tenures with the objective of reducing their monthly outflows. However, when an individual takes a loan with a long duration, this phenomenon is reversed. They pay more interest in the longer period. In comparison, when a borrower chooses shorter home loan tenure, the principal repayment occurs quicker. Because interest is calculated on the outstanding principal balance, higher repayment reduces the absolute servicing cost.

Here are two ways to reduce the interest burden on existing property loan

1. Refinancing

Borrowers may consider refinancing the outstanding loan amount to decrease the home loan interest rate. With a lower rate, the monthly installment reduces, which may result in huge savings over a period of time.

Here is an example to understand the benefits of refinancing. As per the home loan EMI calculator, if the interest rate reduces from 10% to 9%, the monthly installment decreases from INR 45,435 to INR 41,960 on a loan of INR 50 lakhs. Over a period of 25 years, the total savings on the interest outgo is approximately INR 10.42 lakhs.

However, while refinancing, users need to consider pre-payment penalty, legal charges, and other fees that may be levied by the original lender. These additional costs may reduce the actual interest savings.

2. Repay principal faster

Repaying the principal amount faster reduces the interest burden on the borrowers. Individuals are advised to pay a higher amount than their regular equated monthly installment (EMI), which will reduce the principal amount and save interest.

Here are three ways to repay the principal faster

Pay an extra EMI

Borrowers may use their annual bonuses to pay an extra EMI over and above the existing installments. Using the above example, if an individual pays an additional EMI of INR 45,435, the home loan is fully repaid in 19 years and 1 month. The interest saved on the balance duration is over INR 62 lakhs.

Increase annual EMI

Most salaried individuals receive an annual increment to their incomes. Borrowers are recommended to increase the EMI on their loans by a certain percentage. This could be based on the increase in the average annual salary. If a borrower increases the EMI by 5% each year, the loan of INR 50 lakhs is repaid in less than 13 years. The home loan interest savings in this example is almost INR 45 lakhs.

Combine both

Borrowers may choose to pay an extra EMI each year as well as increase it by a certain percentage. When both these options are adopted, the entire home loan may be repaid in 11 years and 8 months, which translates into interest savings of roughly INR 39 lakhs.

Reducing the interest burden is beneficial; however, it is important to choose an option that will not result in financial distress. Borrowers must opt for an EMI that they are able to pay without facing liquidity crises. Failing to pay timely installments has severe outcomes and therefore, avoiding this is absolutely crucial.

[Source: http://www.tatacapital.com/blog/home-loan/tips-to-reduce-interest-burden-on-home-loans.htm]

How to manage your finance with the property

            Loan Against Property