Factors to take into consideration when applying for a business property loan

A business loan is a great way to finance your business and ensure its progress and success. This loan can be utilised for several purposes, which includes ensuring certain business goals are met, focusing on financing certain projects, marketing a new product and much more.

One of the many factors you can take into consideration is the purchase of the business property. Plenty of business may still have an online presence, but yet invest a physical space for storage or even for a production plant. Therefore, if you are looking to invest in a loan to purchase property for your business, here are a few factors you can take into consideration

Ensure your business has good cash flow

Just like a lender will need to ensure that an individual has sufficient income before lending a loan, the same will be expected with your business. In other words, your business must have a steady if not a healthy cash flow in order to obtain a property business loan. You will need to provide sufficient evidence that your business has a strong base and can benefit more from the additional funds. You will also need to provide sufficient evidence that you have the means to repay the loan, regardless if your goal is achieved.

Plan a detailed strategy to generate returns from the property

It is quite obvious with a home loan, you will intend to live in the property or rent it out, and therefore you do not need to demonstrate how you plan to use such a property. However, the same cannot be said for purchasing a property. In terms of this loan, you will need to indicate how the acquired property will have an impact on the business is structured. You will also need to have a clear idea of how the purchased property will fit within your business strategy. Whether it is used the purchased property to manufacture products or purchase a property to store retail products, you will need to communicate these needs to the lender.

Track market conditions

Lending institutes take into consideration plenty of factors before providing a business loan, one of which is the current market conditions. In a weak market or recession, lenders tend to protect their interest over yours. Therefore, you might find it a bit tougher to obtain approval for business property loans. Alternatively, in a strong market, the property prices will be higher, which can affect the outcome or profitability of your business. Therefore, it is essential to time the purchase of your property in accordance with affordable market prices.

Validate your ability to repay the loan

While your business may be enjoying a healthy cash flow, you will still need to provide solid evidence that you are making sound decisions pertaining to the stability of your business, in order to repay the borrowed funds. Therefore, when taking such a loan, you must prevent any over stretching of your funds that will affect our debt – repayment ability.

3 points to keep in mind to ensure a flexible credit card payment

Amongst all the banking cards that are used, the credit card is one of the most popular ones. There are plenty of reason why this card is popular, ranging from a large access to funds, flexible credit card payment and reward system amongst many others.

But while the credit card will provide you with the means to access plenty of funds, you will also need to keep in mind, that at some point in time, you will need to repay back these funds. Additionally, depending on the time you will pay back the funds, you may also need to repay back an interest rate. Any delay in this repayment will attract additional fees.

So how do you avoid any additional fees or delays when it comes to this repayment? You only need to create a flexible repayment plan. Here are a few pointers you can take into consideration when doing so:

Lump sum vs.installments

One of the facilities that a credit card shares with a loan is the fact that you can use a large number of funds to facilitate your transaction. You can even repay back the borrowed funds just like the loan, in fixed installments. However, this depends on the amount you have borrowed. If the amount is large, you can divide it into installments that you can afford and pay off the borrowed funds over time. But, during this time, you may have to pay an additional amount as interest. Alternatively, if the amount you have borrowed is low, you can opt to repay back the funds in one lump sum. This will help you avoid any additional funds as interest.

Create an auto pay system from your account

Another credit card payment system you can opt for is the auto pay system. Most lenders offer this facility, especially if you have attached your credit card to an account, wherein which, the funds of the account are used to pay off any borrowed funds. By creating an auto payment system, the funds from your account will automatically be deducted in order to pay the bill. This is extremely beneficial for those who use their credit cards on a regular or monthly basis. During this time, you will be required to select the date and amount that needs to be deducted until you will be required to change it.

Keep track of the interest-free payment period

Another way to repay back funds borrowed through a credit card is through the interest-free period. Unlike loans, most lenders offer an interest-free credit card repayment period. However, this offer is only limited to certain conditions, such as new credit card joiners as well as loyal customers. This can also be offered as a promotional scheme for and upgrade on your credit card.

How to shop safely with a credit card?

The e – commerce industry is slowly progressing and evolving. Not only is it easier to shop online, but also make transactions from the comfort of your home. However, while the e – commerce industry has progressed to offer such convenience, the fact remains that there will always be a risk involved. Whether it is transferring funds from one account to another or using a banking card to make a purchase from an online store, you risk your financial data being leaked to the public or individuals who can have the means to access it
This is no different for the credit card. The credit card, a popular bank card is used by several individuals who use it for several transactions such as making online purchases, bill payments, or even taking and paying off small loans. However, in most cases, it is used as a means to shop online. So keeping in mind the risks associated with the e – commerce, how can you shop safely with this banking card? Here is how:

Create Strong Passwords

While this may not be news to you, it is still an important piece of advice you must keep in mind. The password is one facility that allows you to access your funds. Most cards are compromised due to the fact that the password can be easily deciphered. Creating a stronger password will help eliminate this problem. You can make your passwords stronger by using a mix of complex, upper case, lower case, letters, numbers and symbols. As far as possible use a unique password whenever you can.

Opt for chip indented card

Another way that credit cards are compromised is through compromised card readers, wherein which, your card data is collected as the magnetic strip on your card is being swiped. That includes the password you use, as well as the account being accessed, as the data on the magnetic strip does not change. Unlike these traditional magnetic strip cards, the EMV card which is chipped cards, use a unique transaction code which cannot be used again. In the event, a hacker managed to steal the information from a specific point of sale; the chip cannot be easily duplicated.

Track your credit card statements

While the data on your credit card can be easily compromised when you use it, it can also be compromised when you don’t use it. In other words, transactions which you have not authorised may be made from your card. But how do you know when and where your card is being used? This can be done by tracking your card statements. With each transaction you make, the date, time and location will be recorded. Review it in details when you can. You will notice if any unauthorised transactions have been made without your consent. You can even sign up for alerts, thereby alerting you if any transactions have been made.

Bike Loan – Travel smart and save time

As a professional, the saying ‘time is money’, could not be any truer. Our professional and lifestyle has been created in such a manner where every minute has been utilized to its full potential. Whether it is used to earn more money, or even to look out for other opportunities to further your venture or even catch up on some ‘me’ time, each second counts.

But when you are caught in unnecessary traffic, you spend hour’s just wasting away, waiting for the vehicle in front of you to go ahead. What would have taken a half an hour drive back home, takes you forty five minutes more. That is plenty of opportunities if not time, that is wasted away.

But while there are not many means to avoid traffic during peak hours, there is one way you can go through it. One way you can do so, is by traveling by a two wheeler. Most two wheelers are designed to provide a good mileage and the means to travel through narrow and tight gaps, such as the ones you will find in traffic.

So how can you purchase a two wheeler? One way to do so, is through a bike loan. Most banking and financial institutes provide this loan, making it easier to purchase a two wheeler in a short time. Here is all you need to know about the two wheeler loan and how it can benefit you.

Quick loan processing:

One of the main benefits of a bike loan is that, it has a short loan processing tenure. As a part of the loan processing, the documents that you provide will need to be verified. Additionally, the documents pertaining to the collateral, as in this case, the bike itself, will need to be verified. If you are getting a two wheeler from a bank or financial institute that is tied up to a dealership, the document processing will also take a shorter time.

Economically beneficial in the long run

When it comes to purchasing bike or any vehicle, there are financial factors you need to consider. For one, you need to take into consideration the fuel expenses, the scheduled servicing, and the insurance amongst many others. While independently, these factors may be expensive. However, under the schemes provided with the bike loan these factors are covered. Additionally, when taking a loan from a dealer, you can get additional benefits, which in the long turn can work financially in your favor.

Financially viable

When it comes to purchasing a bike or any other vehicle, you will require a large number of funds to facilitate this purchase. However, while you may have the means and facility to save funds to facilitate this purchase, you also have to face the probability that a financial emergency may arise during some course of time, which will require to utilize these saved funds. But with a bike loan, you can get the borrowed funds to make the purchase, and yet have the means to repay back the borrowed funds without causing any financial distress.

What are the available loan options for an emergency financial fund?

You’re planning your son’s marriage when you suddenly realise you don’t have sufficient funds to cover it. You’ve also realised that need to pay the premium for your insurance. Your fellow family members, who have already pitched in financially, do not have additional funds to assist you. In this case, what do you do?

For one, you can opt for a loan. Through a loan, you can opt for financial funds that will not only cover your current financial requirement but also provide you with additional funds to satisfy any unforeseen financial requirements. At the same time, you will also have a flexible repayment tenure that will allow you to pay back the borrowed funds and interest rate with ease. But to satisfy such a criteria, you have two loan options you can consider, namely the loan against property and the personal loan. Here are the differences with between the two loans and how it can work in your favour:

Processing time:

For any emergency financial situation, the first factor you need to consider is the processing time. Each loan has a different processing time, as both loans come under different categories. For example, the personal loan comes under the category of unsecured loans, wherein which, no collateral is provided. Therefore, the processing time will be short. However, with the loan against property, the processing time will be a bit longer as the lender will need to consider the collateral provided through this secured loan.

Loan amount:

Depending on your requirement, you can always opt for a loan amount that will suit your needs. Through the personal loan, you can always apply for a loan amount that is high. However, with the loan against property, you can only opt for a loan amount that is fixed to the value of the property. In other words, you are eligible to get only 70 to 80% of the value of the property. However, the lender will have the last word on how much funds you are eligible for depending on your financial profile. So this is one factor you must take into consideration.

Loan tenure:

Loan tenures differ based on the loan category one is applying for. For the personal loan, the loan tenure can last anywhere between 5 to 10 years. For a loan against property, the loan tenure can be anywhere over 15 to 20 years. While a loan tenure may bring down your EMI’s, it also increases your affordability for big-ticket loans. However, long tenures would also increase your interest payout.

Interest rate:

When applying for any loan, the interest rate is one factor you need to take into consideration. For one, it determines how much additional funds you will need to pay along with the borrowed funds. In secured loans, such as the loan against property, the interest rate is normally as low as 11 to 15 %. However, in an unsecured loan such as the personal loan, the interest rate is as high as 24 %.No matter the differences in each loan, you must consider all the available factors to know what you are eligible for, and whether it can satisfy all your emergency financial requirements.

Gold Loan – Unlocking funds for any financial emergency

You’ve suddenly realized that you need extra funds to furnish you newly purchased home or use extra funds to finance your own start – up. But while you may have exhausted all other financial options, there is always the gold loan you can opt for.

For most Indian’s this loan is one of the most viable options, for one reason. Indian cultural beliefs consider gold as one of the gifts that must be passed on from one generation to another. Even auspicious and special events call for the purchase of gold items and jewelry, which is then further passed on to their respective generations. In such cases, the gold itself can be used as a collateral, for a small amount of funds, whenever required.

So if you need any emergency funds, how can a gold loan work in your favor? Here is how:

Short processing time:

One of the main benefits of the gold loan is the short processing time. Since the gold loan comes under the category of secured loans, the provided collateral would be required to be verified. As compared to other secured loans, the gold collateral is easier to verify. Most gold lenders have been equipped with experts who have the experience and qualifications to verify the value of gold in a short period of time. Once the verification process is done, the lender will provide the appropriate loan value rate. Therefore, you need not wait for a long time for your loan to be verified.

Loan to value rate

Different lenders will have different values. However, as compared to other secured loans, the loan to value ratio for gold loan is considerably higher. For one, the range of gold loan values lays between 65 to 85 %. In addition to this, the value of the gold will also differ on several components, such as the current value of gold in the market, exclusion of making charges, the weight of the precious stones embedded in jewelry or even the hallmarked gold items.

Affordable interest rates

Interest rate for gold loans vary across banks and NBFCs. In most cases, the level of interest rate will depend on the tenor, the loan amount, LTV and of course the base lending rate. However, in order to compensate for the high risk associated with lending funds, the interest rate is normally charged at a level appropriate to the borrower’s profile. In most cases, the interest rate for gold loan lays between 9 to 11 %, which compared to other secured loans is considerably lower.

Tenure of a loan

The tenure of the loan primarily plays an important role in determining the EMI’s of the loan. Therefore, the longer the loan, the less EMI’s you will need to pay. However, at the same time, you will end up paying more of the interest rate. For a gold loan, the tenure is not more than a year, making it one of the most affordable loans for any individual.

What are the advantages of having a forex card?

Travelling abroad offers plenty of opportunities. For one, there are plenty of employment and career options. Additionally, if you are looking for short term visits, you can always tour different locations around the world.

But no matter the reason for your travel, there are plenty of factors you need to consider when travelling abroad. For one, you will first need to consider your financial requirements. Not only are you restricted to carry a limited amount of funds abroad, you will also need to take precautionary steps to protect the funds you have. Additionally, if you exhaust your funds during that period, you will need to access additional funds.

Keeping these factors in mind, what are different options you can consider when it comes to taking funds abroad? For one, the forex card is one option. This card, is a form of prepaid banking card that allows you to store foreign currency. When you travel abroad, you can use this card to make purchases, transactions or satisfy any other financial requirements. Apart from this, there plenty of other advantages you can take through this card. They include:

Transaction 24/7:

One of the main advantages of this prepaid banking card is that it can be used anytime around the clock. Therefore, if you need to make a transaction at a merchant outlet during the day, you can use the card. If you urgently need to pay a bill when studying or working abroad, you can use this card for any of your transactions. Thus, the forex card will provide you with sufficient financial protection anytime, a financial emergency arises.

Low conversion rates

One of the main features of the card, as well as advantage to its user is the ability to use foreign currency at a low conversion rate. When you load this card, you load it in a currency value at the time it is being loaded. Therefore, when you use the card anytime in the future, the currency conversion value will be locked on the card. In this way, you can save funds on currency conversion in the long run, especially if the financial market works in your favour.

Multi – currency

Another feature of the card you can use to your advantage is the multi – currency feature on the card. Most card lenders offer such a card, which can be used in multiple countries and in their local currency. This not only helps you save funds in the long run, but also allows you the financial flexibility which is not offered by other types of banking cards. Therefore, while you have access to common international currencies such as Australian Dollars, Euro, Japanese Yen and the USD, you can also have access to other rare foreign currencies such as South African Rand, Sweden Kronor, Saudi Arabia Riyals and New Zealand Dollars amongst many others. However, you will need to check with your card lender to know more.