Loan Planning: Why the loan calculator will benefit you

Although you may have a sufficient income, at times, certain financial requirements will exceed beyond your means. However, you can still make the necessary transaction without comprising on your finances. All you need to do is apply for a personal loan.

However, applying for such a loan is a responsibility. In this case, you need to ensure that can afford the loan in a long time. You do not want to be in a position wherein you get the required loan amount only to realize you will not be able to afford it till the end. Furthermore, your credit history will be affected, thus reducing the chances of getting a beneficial deal on other loan applications.

In such a case, you can always use a loan calculator to assist in your decision. Here is how this financial tool can assist you:

Set your budget

What you want may not match what you need. Additionally, you will need to afford what you want and what you need. In other words, the personal loan amount that you want, may not be the amount you can afford, especially if your income and credit history doesn’t match. In this case, you can always use the loan calculator to calculate the amount that you need. In this way, you can not only get an understanding of the budget you can afford but also eligible for. Additionally, the EMI calculator will help you make adjustments on how affordable you can make your loan.

Help you plan your payments

One of the major mistakes of loan applicators is failing to plan the payments for the loan properly. Therefore, in between paying off the loan, they realize they cannot afford the payments. Additionally, certain unavoidable factors in between this loan tenure can affect your ability to repay the loan. However, by using the loan calculator, you can take into consideration the different facts that can affect your repayment and make the necessary changes. Additionally, you can also calculate the minimum or maximum amount you can afford in EMI’s.

Plan other loans for the future

A loan for many may be perceived as a means to satisfy a temporary financial problem. However, many are unaware that loan can affect more than your ability to repay. It also affects your credit score. Therefore, if you cannot afford the loan, your credit score will decrease, thus affecting your ability to get other loans in the near future. Therefore, by using this tool, you can easily plan your current personal loan in order to ensure that your credit score is not affected in the long run.

Golden rules to borrowing a personal loan today

There comes a time in your life, where you will need to opt for borrowed funds in order placate your financial requirements. While there are plenty of options available in the market, loans are the ideal option for most cases.

If you have varied financial requirements, then the personal loan is the ideal choice. Through this loan, you can satisfy multiple financial requirements, without any restrictions. Additionally, you can use the personal loan EMI calculator to calculate the ideal loan amount that will suit your needs.
However, when it comes to borrowing funds, there are certain factors you will need to keep in mind. Although borrowing of funds will offer you plenty of benefits, one would also need to keep track of the repayment measures for it. Borrowing of funds come with certain golden, rules, which is given below.

Don’t borrow an amount that you cannot afford
This is one of the major rules of borrowing funds through a personal loan. A loan should provide you with a relief to your financial woes and not add to it. You must not live beyond your means. Opt for a loan amount that you ca easily repay. The thumb rule for borrowing these funds, especially for this EMI’s should not exceed 10% of your net monthly income. Use the personal loan EMI calculator to ensure that you get the ideal loan amount you can afford in this case.

Opt for a tenure that is as short as possible
The tenure of the loan affects the value of the EMI’s. in this case, the longer the tenure of the loan, the lower is the EMI. This fact will surely make it tempting for those who would want to go for a 20 to 30 long tenure. However, in this case, your interest rates will rise, making you pay for a loan amount that is more than you can afford. Additionally, this will increase your debt to asset ratio, thus reducing your chances to apply for another loan application. Use a personal loan EMI calculator to calculate the ideal loan tenure that will suit your requirements.

Ensure you make timely and regular repayments
Opting for a loan would also include repaying the borrowed fund. Whether it is a short-term debt, you must ensure that you do not miss your payments. A delay or missing a repayment will impact your credit profile. This, in turn, will hinder your chances of taking a loan later on in your life.

Avoid excessive splurging and investing 
Once you borrow funds, you will need to take the means to repay it back. Therefore, you should ensure that you avoid splurging the funds unnecessarily. Additionally, you must not use these funds to invest in other options. This is because the risks on the returns can be high. Additionally, an even safer option such as termed deposits may not offer you the ideal return on investments to match the interest rates on the loan.

How to make the most of your credit card rewards

Certain banking cards like the credit card aren’t only designed to make transactions convenient. With the right strategic decision, you can use it to reap valuable rewards and perks. Some of these rewards you will not get with physical cash.

Here are a few tips that will help you make the most of the rewards you generate from your credit card.

Opt for reward credit cards based on your lifestyles

Every individual has different financial requirements. Therefore, a standard reward program would not benefit every individual. In this case, you will need to see how much you spend on different categories. For example, if you shop at a particular retailer, you can use certain credit cards at these places. This is also applicable for online shopping and frequent travelers amongst many other categories. In these cases, you can apply for rewards that will get you extra reward points that can be redeemed for items in the same category. Alternatively, you can also get other forms of rewards such as free hotel stays of companion plane tickets.

Opt for cash back shopping portals

Anytime you shop online, you will earn certain features such as extra points, miles or cash back. What no many individuals don’t know is that your credit card bank has its own shopping portal. Through this, you can start your shopping spree, especially through certain cash back sites. Cash back sites such as Cashkaro, LafaLafa and Gopaisa will offer you great cashback rewards anytime you want to shop.

Know your reward categories

Not many are aware that there are different reward categories for a credit card. As mentioned previously, each individual often possesses a different financial requirement. Therefore, if you are collecting reward points during your expenditures, you must check the different reward point categories you are eligible for. In this way, you can ensure that you get the most of your expenditures in terms of your reward points.

Drop the annual free

Certain reward credit cards often charge annual fees. Credit cards such as the travel reward cards are one such example. Although the benefits of these cards are worth it, it would be double the worth if you manage to waive the annual fee. Do contact you credit card bank to know the ideal process to waive your annual fees.

Apply for a credit card during the biggest bonus periods

It is not uncommon for credit card companies to offer to sign up bonuses to those who are applying for credit cards. These sign-up bonuses can be worth thousands. When you time your credit card application at this time, you can make the most of your bonus sign up, especially against the normal sign up bonus.

What are the different personal loan mistakes to avoid today?

When it comes to opting for the ideal financial aid, the personal loan has been one of the most preferential choices. Applying for this loan today is convenient, however, at the same time, it can become a financial burden if you take a wrong step. Given below are the common personal loan related mistakes you should avoid, should you ever need to apply for this loan.

Opting for more than one personal loan:

A personal loan, by nature, is an expensive affair. Although it will provide you with the financial support you want, you should opt for this loan as a last resort. However, since individuals can easily opt for this loan, many are prone to taking this loan for every small reason. Over time, taking this loan will be more of a routine, thus inculcating more than one loan. Although servicing more than one personal loan will offer you the ideal financial support, it will damage your current finances and save while also affecting your credit score. In this way, you should reconsider your loan application before proceeding to opt for more loans than you can afford.

Borrowing a loan amount you cannot afford

When it becomes convenient to get such a loan, it is easy to get carried away borrowing funds. In this way, many unaware individuals opt for borrowing an amount that will satisfy financial requirements more than required. When it comes to the time to repay the loan, the added interest rate will make it seem nearly impossible to repay. To avoid such a situation, opt for a loan that is 35 to 40% of your income. This income should be calculated after your monthly expenses. Also, try and avoid opting for pre- approved loan offers or loans that come with unbacked loan rates.

Applying for loan without reading the fine print

Most loan applications come with a fine print regarding the terms and conditions. It may seem convenient just to skim the surface of this contrast, without reading it in detail. However, if you sign the contract without going through the details, you will be putting yourself at a grave risk. If any dispute or misunderstanding between you and your lender arises, your lender can use the contract to challenge your dispute. If the terms of the contract are pitted against your challenge, you may end up losing the challenge. Do make it a point to read and understand the details of the terms and conditions related to the loan.

Opting for a long loan tenure

Many lenders will offer you a loan tenure that will be long. Although it may seem convenient to repay a loan that will take you more than 7 years, other factors will be affected. Factors such as the EMI will be affected by the loan tenure. While it may seem pocket-friendly, you will end up paying a lot more on your EMI’s than you expect. Use a personal loan calculator to figure out the best tenure that will suit your needs, while paying off your loan amount.

What are the benefits to opting for EMI’s in a loan?

If anytime there is a requirement for finances, you can always apply for a loan. However, at the same time, you will be required to pay back the borrowed funds, along with an added interest. This can be done through equated monthly installments.

Also known as EMI, it is a fixed amount a borrower will pay to repay the loan. This amount is paid at a particular date until the loan tenure is met. This EMI’s comprises of an amount that includes the interest as well as the principal amount. You can even use the EMI calculator to get the required amount that will suit your needs while repaying the loan.

As mentioned previously, EMI’s will be made every month as part of the repayment process of a loan. This EMI amount constitutes of a principal amount along with a certain rate of interest. This rate of interest depends on the amount that is borrowed, the tenure of the amount and the lender. Throughout this tenure, the principal component is less than the interest component, especially in the initial period of repayment. Over the tenure, the rate of the interest will decrease gradually whereas the principal amount will increase.

 EMI is fixed payments made every month as a part of loan repayment or a purchase. EMI constitutes of the principal amount to be paid and a certain rate of interest. The rate of interest depends on the amount borrowed, the duration for which it is borrowed and the lender. The principal component is lesser than the interest component in the initial period of repayment and the rate of interest will decrease gradually and the principal amount will increase over the period of repayment. But how can you benefit from this form of repayment?

In reality, EMI’s are a convenience to those who depend on a steady source of income, especially if they are capable of paying a fixed amount. This makes it easier in terms of affordability, as it provides a choice of purchase for many items that require a lump sum payment. Additionally, it also provides a means of flexibility. Through this form of payment, you can easily decide the amount you will need to pay in installments especially with the assistance of EMI calculator. Keeping in mind your financial situation and income; you can easily calculate the amount that will suit your requirements. Additionally, EMI’s are completely easy on your finances, as it allows you to make minimal payments every month rather than large amounts which are not affordable. One of the best parts of EMI’s is that you need not submit it through a middleman or any intermediate sources. The amount gets deducted directly from your account on the required date.

Get the right education loan to fund your dreams of learning

It seems really unfair if a meritorious student doesn’t get to achieve his or her desired career goals only due to lack of finance. Almost every bank offers education loans these days. But not all come up with convenient rates of interest and repayment formalities.

Students are in need of more options of education loan, where they can find rapid loan processing system, faster disbursal, and lower ancillary expenses. Education loans need to come with competitive interest rates and also seamless repayment formalities. The repayment formalities need to start off (as some banks do) only after the completion of the moratorium period. The more the repayment formalities carry customizable and conducive terms, the more will the students be benefitted by the education loan. Education loan that comes with tax benefits, post-graduation EMI schedule, and a flexible tenure make higher studies more affordable and convenient.

Students are offered a moratorium period by some banks against their education loans, which allow them to repay the education loan only after six months post the completion of the course. In some educational courses like that of an engineering course, students get an additional one-year exemption, apart from the four years during which the course runs; to start with the repaying.

Whichever education loan you go for, ensure that it allows the repayment to be started only post one year after the completion of the course, even if the student doesn’t succeed in getting a job during the placement sessions.

As soon as the repayment starts, the borrower is free to utilize the advantages he is entitled to, under Section 80-E of the Income-Tax Act. With such conducive education loans, students are able to put full attention on their career goals and study with no stress.

An education loan covers only the academic cost of any particular course, so it might not be adequate enough to meet the entire cost of an educational course, but still it comes a long way in helping you with your desired career option. Most of the parents decide to go for education loans rather than utilizing their savings account. They tend to keep the savings for emergency purposes only.

Generally speaking, an education loan is the first loan a student avails. So while repaying it if he or she can build a good credit history, it will be beneficial for him in getting future loans like that of automobile loans, home loans, personal loans etc.

Assess your loan against property via auto loan calculator

Anyone can be granted a loan against property, provided he or is the legal owner and the concerned property is a legal or licensed one. A loan against property (LAP) is as the name suggests, a loan given in lieu of a property or rather given against the mortgage of a specific property. The loan granted, is given as a certain percentage of the property’s market value, which is generally somewhere around 40 to 60%.

Under ‘loan against property’ get a secured loan. Loan against property is by default a category of secured loan where the lender takes a guarantee from the borrower by taking the latter’s property as a security deposit. On failing to repay the loan the borrower gets full privilege to cease the deposited on permanent basis. You can always understand the nitty gritty of your loan against property via the online auto loan calculator.

There are different purposes against which you can get ‘loan against property’. Following are the probable purposes against which you can avail a loan against property.

• Expanding the scope of your business.
• Getting your children married off.
• Higher studies of your children to some abroad destination.
• Financing your dream vacation which can be a global trip.
• Arranging money for medical treatments.

Kind of properties you can keep mortgage for a loan
Normally, you can avail a loan against only self-occupied or rented residential property, which can be a house or even a piece of land. Get a clearer view of the valuation on the online auto loan calculator.

Eligibility criteria to get a loan against property

The eligible criteria vary from one bank to another. However, there are certain factors which the all banks keep as common, like the following:

• Your income, savings, debt obligations
• Cost/value of the property mortgaged
• Your repayment track record for other loans, credit cards, etc.

Rate of interest and tenure allotted for repayment offered for a loan against property

The rates of interest rates on loan against property range from 12 per cent to 15.75 per cent, and the loan tenure can be up to 15 years.

Pre-requisite documents for applying for a loan against property

Apart from a few exceptions, most of the banks and financial institutions typically require the following documents:

For salaried people:

• Application form with photograph
• Identity and Residence Proof
• Latest Salary-slips
• Last 6 months’ bank statements
• Processing fee cheque

For self-employed people :

• Application form with photograph
• Identity and Residence Proof
• Education Qualifications Certificate and Proof of business existence
• Last 3 years Income Tax returns (self and business)
• Last 3 years Profit /Loss and Balance Sheet
• Last 6 months’ bank statements
• Processing fee cheque

For businessmen:

• Application form with photograph
• Identity and Residence Proof
• Education Qualifications Certificate and Proof of business existence
• Business profile
• Last 3 years Profit /Loss and Balance Sheet
• Last 3 years Income Tax returns (self and business)
• Last 6 months’ bank statements (self and business)
• Processing fee cheque