Monthly Archives: February 2017

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Takeover of Home Loans

Home Loan may be taken over from the following Institutions?

  • Scheduled Commercial Banks (SCBs);
  • Private and Foreign Banks;
  • Housing Finance Companies (HFCs) registered with National Housing Bank (NHB);
  • Borrowers employers if they may be Central/State Govts. Or their undertakings or Public Sector Undertakings, yes. Issue to the following:-
  • Borrower should fulfil the eligibility standards for availing Home Loan as in line with the Banks instructions.
  • The borrower needs to have serviced interest and/or instalment of the existing loan regularly, as in step with the authentic terms of sanction.
  • The borrower has valid documents evidencing the title to the house/flat.

Take over with sanction of Higher Loan Amount is possible?

Bank may sanction an amount higher than the amount taken over from different bank/ monetary group for purposes of protection/ extension/ furnishings. Similarly extended repayment period may be sanctioned supplied that always the standards regarding maximum permissible finance and security margin under the Bank’s schemes aren’t diluted.

What is the process for Take Over?

  • The borrower ought to deal with a letter to the bank/ economic group from whom he has availed the loan asking them to supply, at once upon receipt of the loan quantity, the name deeds and other securities, if any, direct to our lending branch;
  • The borrower must give to the branch a request letter for paying to his existing lending financial institution / monetary group the excellent quantity of his mortgage by debit to his mortgage account.

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Loan Takeover

Banks and finance businesses are looking to gain enterprise by offering lower interest rates. But you, as a borrower, want to study other components as properly, before shifting your loan from one bank to another.

Technically called “takeover of mortgage”, shifting a mortgage means approaching a bank and asking it to problem a loan amount that is outstanding amount with the current bank, repaying to the current bank and persevering with the loan with the new bank. You will enjoy the lower interest rates or decrease EMIs. It gains new business. But, is the interest rate or a lesser EMI the best consideration? Here are few important factors that help you take the final choices:

Calculate the full outflow?

Although the new bank attempts to attract you by using decreasing your month-to-month EMI and providing you with a longer span to repay (increasing your tenure), you have to be clean that such facilities increase the total amount you pay to the bank due to the fact the interest keeps on including to the outstanding loan amount. If you’re paying better EMIs with your present day bank, compare the total outgo for each bank and then take a choice. If you aren’t difficult-pressed for coins, you need to prefer staying with your bank, pay a bigger EMI and finish off your mortgage as quickly as feasible to shop all the cash you will overpay, by means of opting for an extended tenure.

Study the processing fees and different allied prices

Take into attention the processing charge, stamp duty, legal charges, valuation rate, technical expenses that your new bank would fee and examine it with the benefit in terms of reduce interest rates.

For some banks, processing fee is a percentage of the overall loan amount, while for others, it relies upon whether you are salaried or run a business. If the bank calculates it on the basis of the outstanding amount, calculate it in rupee terms to find the cost. Also, your present bank may jack up the charges of closure of account if it reveals out that yours is a case of takeover.

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Financing Tips for Female Entrepreneurs

Financing Tips for Female Entrepreneurs

It’s critical for ladies marketers to apprehend how the usage of enterprise credit may additionally advantage their operations. Business credit can offer an enterprise the source of funds it desires for more than one functions, from bridging gaps in coins drift to pursuing increase opportunities. As women-run businesses retain gambling an important position in our local economy, we want to do the entirety we can to help those agencies thrive.

Here are few guidelines we provide women business owners to assist them be triumphant financially:

Explore your financing alternatives.

According to the some organisation, women business owners stated their pinnacle 3 assets of preliminary investment for his or her enterprise are cash or savings (85 percentage), personal credit score playing cards (37 percentage) and financial gifts or guide from family or friends (29 percent). Today, enterprise proprietors have many business financing options to remember.

Seek creditors with a dedication in the direction of women business proprietors.

It’s a competitive market for small business loans, and that’s appropriate for women enterprise owners. Lenders are looking for to make each responsible mortgage they are able to credit score-worth business proprietors.

When selecting a lender, you should remember financial institutions which have proven a dedication and document of running with women-owned agencies as well as a lender who may also have carried out lending goals or applications focused on women-owned businesses.

Connect with other women entrepreneurs.

The U.S. Small Business Administration (SBA) has a network of more than 100 women business centres throughout the country aimed toward supporting women who own small agencies.

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Lakshya Financial Management

Things Investors Want to Know Before Signing a Cheque

Prepare by putting yourself within the investor’s footwear. What do they look for whilst comparing your organization? Here is a listing of the few most essential things that an investor desires to understand before sinking money in a company.

Financial performance.

You need to understand your numbers. Prove to potential traders that your organisation has great economic performance, particularly if you are in search of funding from a financial institution. Venture capitalists will search for an ability of excessive returns and a clean go out opportunity.

Prepare to reply questions about the financial balance of your employer. Investors will ask in case your company indicates symptoms of boom and when you have plans such as issuing shares or borrowing money to stimulate boom. Your debt reimbursement plan should also be well provided. Prove your enterprise is able to managing its monetary duties.

Background and experience inside the industry.

Investors don’t need entrepreneurs to make mistakes on their dime. Investors search for skilled marketers and management teams with a track record of high performance and leadership inside the organization’s enterprise or in previous ventures. Most investors will studies your business enjoy and your historical past within the enterprise. Passion and dedication ought to be glaring to inspire confidence in investors and stakeholders.

“Investor match” is specifically vital to angel traders compared to challenge capital fund managers.  Angel investor’s vicinity tremendous significance on “chemistry” between themselves and the entrepreneur due to the fact they commonly take a more fingers-on technique inside the agencies they spend money on.

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Reasons to Regularly Check in on Your Business Debt

Reasons to Regularly Check in on Your Business Debt

When it comes to paying off debt, many business owners just go on auto-pilot. They installation their charge plan, usually via automatic financial institution withdrawals, after which don’t provide their loans a second idea from that factor on.

Your credit rating may additionally have improved.

Building up a credit score takes time. When you have been simply beginning out, you likely didn’t have the credit history had to qualify for loans at the high-quality interest rates. As a result, you’ll end up owing greater interest as you pay off your debt.

If you’ve been making all your debt payments on time, even though, your credit score will have regularly stepped forward. You must be capable of qualify for future loans at a decrease interest rate. Your credit score could also help you qualify for a higher deal on your present day loans via refinancing at a decrease rate. This might right away lead to decrease month-to-month payments.

Your financial state of affairs and goals may additionally have modified.

As time is going by means of and your enterprise grows, your monetary situation will trade considerably. This can also change the ideal debt method on your corporation. For instance, in case you’ve grown your sales, you could find yourself with a vast quantity of extra money. It may additionally make feel to use this money to pay off your debt now and avoid paying any extra interest.

You might also have get admission to new products

One other purpose to agenda a biannual debt evaluation is that you could now qualify for new product that better match your goals. New businesses generally don’t have many assets. After a few years, though, your business may also have accumulated valuable assets, like stock or equipment. You could use these as collateral for an asset-backed mortgage, which could help you qualify for larger loans and probable a better interest rate.

If your credit score and economic situations have advanced, you can additionally now be capable of get right of entry to a line of credit score, which will give you plenty more flexibility to manage your financing. If you have some of small loans, you would possibly discover that you may decrease your overall debt bills via consolidating the whole lot into one mortgage.


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What Kind of Different Loans You Can Get as a Business Owner

Every promoter wants to grow and amplify his enterprise. There may be a situation while proprietors require urgent budget to grow their businesses. Opting for a loan facility from a financial group can be useful to satisfy those fund necessities.

Before determining to avail of a mortgage, it would be advantageous to know different types of loans which are to be had. Here are few sorts of loans which are typically available for commercial enterprise owners:

Working Capital Loans

This kind of mortgage is needed by means of businesses to satisfy their normal running expenses. Having enough running capital is vital for the survival of any business. These loans may in addition be classified as:

Secured loans:

These are to be had by means of presenting lenders some sort of collateral, such as device, accounts or other security. Based on the cost of the collateral, the lender approves the loan amount.

Unsecured loans:

Such loans are supplied without taking any safety. Most agencies discover it difficult to avail such varieties of economic arrangements.

Term Loans

Term loans are to be had each for the quick term in addition to for a longer duration. The tenure on short-time period financing may additionally enlarge up to three years. Long-time period loans may additionally range among 10 and 15 years. Most agencies use those facilities to fund enlargement plans or installation new centres. Term loans are repaid via month-to-month instalments and frequently have competitive enterprise mortgage quotes. Well-set up corporations with a song record regularly find it simpler to avail term loans.

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startup loan

How to get a Business StartUp Loan

Individuals who want to start their own corporations but do now not have the desired funds to begin operations can method banks to fulfill their monetary wishes. Start-up loans are an excellent way to acquire finances that can be repaid to the lender at a later date. Here, we will discuss about “Line of Credit.”

Line of Credit

A commercial enterprise start-up loan in the form of a line of credit works in a similar way to a credit card. However, the card is tied to the individual’s business in place of their personal credit. One of the high-quality benefits of a small commercial enterprise line of credit is that clients will have no obligation to pay interest at the borrowed sum for the primary 9 to 15 months, thereby making it less difficult to cowl expenses at the same time as getting their enterprise to an awesome start. The interest after the afore mentioned period will upward thrust to anywhere among 7.9% and 19.9%, however the customer will handiest must pay interest at the sum they use (much like a credit card).

For example, if the line of credit availed is Rs. 10,00,000, and the patron draws Rs. 2,00,000 to cover beginning costs. In this case, the client will only have to pay interest on the Rs. 2,00,000 along side the applicable interest price. The interest will handiest apply to the Rs. 2,00,000 and not the complete sum of Rs. 10,00,000.

Customers who are looking for a line of credit for their new enterprise are required to have a credit score above 700. Moreover, approval from the financial institution can take nearly a month after the consumer has furnished a detailed credit report. However, clients need not pledge any asset as collateral for this type of mortgage.

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Ways to avoid paying too much on a business loan

The good news is that there are a few simple tricks you may use to weed out the awful apples and make sure you get a fair deal on your financing. If you’re searching out an injection of cash to jump-begin your enterprise, right here are few approaches to avoid overpaying for a loan:

If they can’t let you know the APR, walk away.

Application costs, annual fees, service charges, origination charges — you’ve got the proper to realize the whole value of any loan you are offered so you can easily examine it to other offers and make the proper selection for your enterprise.

Unfortunately, financing has historically been bought with pricing that can be confusing or misleading — and the authentic price of a mortgage is regularly not disclosed. Instead, a few lenders quote “rates” which might be calculated a little differently from a real interest charge, so their products appear less expensive.

Don’t take delivery of prepayment consequences as par for the course.

Some credit products charge a fixed repayment amount, making it impossible in an effort to keep money by means of paying early. This isn’t always usually transparently disclosed, so if in doubt ask the lender to give an explanation for how an awful lot you’d owe in case you repaid early on a particular date. If it’s extra than the major great, then there’s a prepayment penalty. End of story.

Watch out for double dipping.

If you are taking out a brand new mortgage before repaying an present one with a lender, make certain you are not unfairly double charged for the superb portion of your loans. The new fixed costs must most effective be calculated primarily based on the additional capital you’ve got acquired.

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Repayment Plan

Plans Based on Your Income

A repayment plan primarily based to your earnings allow you to control your loan payments.

There are four plans generally called Income-Driven Repayment (IDR) Plans and a further Income-Sensitive Repayment (ISR) Plan. These plans offer flexible options to repay your mortgage and many of them are based totally on monetary hardship, own family size, or income.

Eligibility and Program Features

Eligibility and program features are primarily based on some of standards, which include loan program and disbursement date. The monthly payment amount calculated makes use of a system set by the authorities. For some of the plans, married borrowers will also be able to encompass their partner’s eligible loans within the formulation depending on tax submitting status.

As with any alternate to a repayment plan, decreasing your month-to-month charge amount can enlarge the length of your loan due to the fact less money is carried out to essential that could upload extra interest for your loan and motive the overall lifestyles of the mortgage to growth.

IMPORTANT: Once authorized, each year you’ll want to update your profits facts and we inspire you to re-certify your marital repute and own family size. Your monthly price amount may additionally boom or decrease in case your earnings or circle of relatives size modifications from year to year. As your mortgage servicer, we can work with you and remind you whilst to start the renewal procedure and you may constantly test the fame on-line.

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Small-Business Credit Card Basics – Ways to Get the Most Out of Your Card

Small-business credit cards offer numerous advantages over other financing alternatives; rewards and cash back for spending, 0% interest on purchases, and sign-up bonuses are just a few. But to get the maximum fee out of your small-business credit card, you need to keep away from the costly mistakes that may easily outweigh the cardboard’s advantages.

Here are methods to get the maximum out of your small-business credit card.

Always, usually pay on time

It sounds obvious, however many fail to heed this easy rule, and it charges them. Late charges can have an effect on plenty and if you keep to miss the due date, extra prices can be charged.

Paying late can also result in a penalty interest rate.

Know when your 0% interest promotion expires

Maybe you like the sound of zero% interest on purchases for one year. This kind of deal can be absolutely tempting — it’s essentially an interest-free loan and might help your business manipulate a short-time period cash shortfall.

Once the zero% APR period ends, however, small-commercial enterprise owners have to recognise what the new interest fee on the card could be. You can discover this to your monthly credit card declaration beneath “purchase APR” or to your cardholder agreement. To keep away from getting dinged by using interest, you’ll want to pay off the complete stability on the card each month earlier than your fee due date. If you’ve got the coins to accomplish that, it’s a sensible investment.

Maximize rewards, and don’t forget to redeem them

One of the most important perks of a business credit card is the rewards you get on purchases. Make it a priority to earn them. If your card offers you 5% cash again on purchases at office deliver stores or on gas, use your card for the ones matters.

Companies may additionally provide rewards inside the shape of a gift card, a direct deposit for your bank account or a statement credit, however bear in mind that you can must log on to an internet account to actually redeem those rewards. Do so, otherwise you’ll kick your self. And stay on top of them due to the fact a few points or rewards would possibly expire after a sure amount of time, relying on the card issuer.