Category Archives: Loans

Types of short term loans

short term loansThe procedure to apply for short term loans has become easy. Short term loans normally extend between 10-14 days but the money lenders may want to extend this period to some more days to get the interest. There are various types of short term loans depending on the amount of money you need and the duration of the loan. Given below are the types of short term loans:

• Payday loan- this is a type of loan where the amount of money taken on loan varies from £50 and £500. This is required to meet the temporary cash and can be repaid the next time you get paid. A payday loan is essential when there is financial emergency such as immediate work for your house like car repair and stuff. It can also be required to pay the direct debits which are outstanding for the current period.

• Bridging loan- this is a loan which is taken to meet the immediate expenses. There are times when your money may be blocked somewhere else for which you are not able to pay the current expenses. One best example to explain this loan is when you buy a commercial property and want to set up an office and you need money for renovation but you don’t have enough cash in hand because it has been used up in buying the property. The amount of money taken on loan in cases of bridging loans is higher than the amount taken in payday loans. The interest rate in bridging loans is also higher than payday loans because the lender has to lend more money in this case.
• Credit card- this is a settlement with the bank and there are no intermediaries. In this procedure a person can take a loan from the bank any time they want and after a month or so they can repay the amount.

A Guide To Student Loans

Student LoansNowadays student loans hold a very important place in the lives of the student. Higher education has become so expensive that most of the students have to get loans from the appropriate authorities. Handful students get hold of scholarships. But majority of them will dependant on student loans only. Student loans are specifically designed for students. Students can payback the loan after their particular educational course is complete and they get a good stable job. Plus the rates of interest related to the student loans are agreeable and better than the other kinds of loans.

The two main sources of student loans are: Federal government and private organizations. It is better to apply for student loans provided by your government since you will get more unique benefits. But at times federal student loans may not cover all your expenses. Therefore you can approach some reliable private organization for a student loan. Federal government will give you a loan only if you have definite proof that you are in need of a financial help. Plus your conduct and character will also be taken into account before your student loan is approved.

The rates of interest offered by the private organizations are surely higher in comparison to the rates offered by the federal government. If you get multiple student loans then it is advised by experts that you must consolidate them. Once consolidation is done you will be able to repay your loan through single monthly payments that also at lower interest rates. Whenever you are signing an official document regarding your student loan make sure that you read through the terms and conditions carefully.

Before applying for the student loans keep the necessary documents ready. Decide whether you want a federal loan or a private student loan. After the decision is made apply for the loan and wait for the good news.

How to Decrease/Negotiate Auto Loan Interest Rates as A Student

Auto Loan, loansIf you are a student and you are planning to take out a loan for your car, you need to understand the ways by which you can reduce the interest rates on the loan for the car. Auto loans are of many types and there are special student auto loans available as well. When you go out to get a student auto loan, you need to give them a complete report. If you are buying the car with your own money, then you will be given more flexibility. If you have a clean driving record and if you have as special certificate from a driving school for excellent passing marks then also you might get some benefits. You need to have a good record as mentioned earlier. If you are planning to get a second hand car then the rates are lower. If you have good grades, in some companies, that is considered as well.

Working Process Of Loan Rehabilitation

Loan Rehabilitation, loanIn the hard economy managing to pay ever increasing loans are difficult. Banks today are comparatively harsher on defaulters than before as they have come up with more stringent rules for loan rehabilitation. Loan rehabilitation is nothing but getting the defaulted sign off your account. If a person takes up a loan and is unable to pay back his dues then he is a defaulter.

Loan rehabilitation deals with looking up a lender who would be willing to take up the defaulted account. As a result of the economic turmoil such lenders are hard to find and so is the rehabilitation program scarcely available. Once such a deal is made the defaulter must pay 9 monthly payments over a period of 10 months. This has to be without fail. From 14th August 2008 it has been issued that a person can enter the rehabilitation program only once for each loan. The sum of money to be paid is negotiated by the rehabilitation program and the defaulter must be absolutely sure that he can come up with that amount monthly for the next 9 months.

Disadvantages of Reverse Mortgage

Reverse Mortgage, mortgageA reverse mortgage is basically a loan which is given to mostly senior citizens and one can keep the house or property as mortgage while taking out the loan. Though there are many advantages of reverse mortgage like going for a long term retirement plan and getting a steady flow of money, in that age, reverse mortgage has its own disadvantages too. Make sure that you have backup if you’re unable to repay the debt in time.

The interest rates for a reverse mortgage loan are higher than most general loans. You could talk to more than one agency and find out the various interest rates that are involved. See if you’re getting any kind of discounts or deals in any. Compare prices, service records and the other options you have. So don’t take any decisions without thinking about the future especially in matters concerning mortgages and loans while you’re a senior citizen.

Business loan with a personal bad credit

Business loan, loansAcquiring a business loan with a bad credit can be difficult. Most of the financial organization that are of some reputation will have a criteria that would require you to have a proper credit profile. However, it is not that it is completely impossible to get a business loan without a good credit profile.

There are certain institutes which may agree to grant you with the loan amount with collateral. Then, you may also be able to get a good loan from the private institutions if they like your business proposal. Therefore, it is very important that you make a very good proposal in order to get a business loan with a bad credit. There are different qualifications of the lenders. You could qualify fro the microloan; cash advance loan or peer to peer loan. You can go for these loans if you are not qualifying for an SBA loan.

Commercial loan calculator for business owners

Commercial loan calculator, loan calculatorCommercial loans are an important mode of boosting the stability of a business, however big or small it is and in this context, commercial loan calculators are such a tool which every business owner must consult. Commercial loan calculators help in selecting the loan suitable for the needs of the business. It also calculates how much you will save from your interest by paying the principal earlier than given time.

Commercial loan calculators efficiently compute the loan payment, total interest and costs involved. Loans of any type such as for purchasing real estate properties or for buying new equipment are well served by these calculators. You can use online loan calculators for free. Make sure you use the appropriate calculator based on the terms of loan you require. The computation is done on a pay back schedule to confirm your eligibility for the loan. When you have good credit score, potential client list and steady cash flow to the business, get an idea of the approximate payments of loans with commercial loan calculators and enrich your business to your objective.

Easy personal loan tips

Are you planning to apply for a personal loan? Well, if you are, here are some tips that will come in handy. The first tip is, avoid unsecured loans as much as possible. Putting some security in your personal loan will help you to get lower rate of interest. The second tip is, apply for the personal loan honestly. State the reason for loan application honestly. This will help your bank to offer you solutions in accordance with your circumstances.

If you cannot get a standard personal loan, don’t despair. There are other alternatives. If banks, credit unions and building societies refuse to give your loans, you can seek the help of non bank lenders. Fourthly, check the loan statements minutely for errors. Fifth, don’t make multiple applications for the same loan. Sixth, make sure that you get all the right information about loan terms and conditions before you apply for it.


About Cross-collateralization

Collateral refers to the security pledged for the repayment of a loan. And when this collateral for a particular can be applied as collateral to secure another loan, it is called cross-collateralization. You can use any of your assets as collateral, if it has a monetary value.

But the loans must be issued from the same bank. For example, if you have taken a home loan and a car loan from the same bank, the car (after paying off the car loan) is used by the bank for the security of home loans. In this case, if you plan to sell your car, the bank may go against it. Cross-collateralization cannot be made if you do not have outstanding loans.

Cross-collateralization can also be applied if a person has a loan and also a checking deposit account at one bank. If you cannot repay your loan, the bank will either withdraw your fund from your checking account or freeze your account until you the repayment.

Bank loans: help or a curse

Loans are an easy way out to deal with a financial crunch immediately. As in when you don’t have lump some money immediately, you can take a bank loan and fulfill the dream you have dreamt of. But some dreams can turn into nightmares if not reverted on time. The same applies for Bank Loans. If you get the money immediately, it can be equal pain sustaining the loan.
However some consumers look at the positive sides of taking bank loans. The loan procedure isn’t too cumbrous consisting of a small application form with some proofs. If money is required to pay something immediately, a cash starved consumer could pay a vital bill in minutes of taking the bank loan.
But every boon comes with a bane. Bank loans can be equally painful. The burden of the high interest rates is the master of all nightmares. Interest rates are on the rise every month, and it irks a lot to end up paying double the amount of actual payment. Taking loans could be an easy dip into the sea, but help yourself from drowning.