Category: Loans

Inflation leads to a series of effects on businesses as well as the economy as a whole. Business investments may get reduced while they struggle to pass the higher cost of purchases to the consumer. Rising inflation can also increase business loan interest rates, which can make business loans expensive and hinder growth. Hence, you need to protect your hard-earned wealth from inflation. Here are some smart ways to immunize your business,

1. Invest in assets that protect your business wealth – Business owners can invest in physical assets like real estate which keeps appreciating over time. Investing in equipment, while subject to depreciation, can ensure that you keep up with supply.

You can also invest in precious metals like shares of gold mining companies. These assets are less affected by inflation and are often regarded as an inflation hedge.

2. Cut down business expenses – An effective way of creating savings is to cut down on your expenses. When you sense impending inflation in the near future, try to prepare an expense budget. Identify expenses that are in your control and make a plan to slowly reduce or eliminate them. If you can put a check on such expenses, it will increase your reserves and put you in a better position to tackle inflation.
3. Maintain an emergency fund – Prolonged inflation can lead to recession. Therefore, it is important to create an emergency fund for your business. This will help you manage the financial situation during the difficult times of inflation. In case of a demand slowdown due to inflation, your emergency fund can come to meet operating expenses.
4. Manage debts and receivables – You can also consolidate your existing debts to lower your borrowing expenses. For example, you can check your business loan eligibility and look for low business loan interest rates to pay off high-interest debts.

Recovery from customers should also be accelerated. Efficient collection of receivables without hampering customer relationships can strengthen your cash position.

5. Study your material price and stock smartly – With inflation, the cost of purchase also increases. Therefore, businesses need to study the market and monitor their sourcing strategy constantly. Due to consumer prices rising, many businesses need to sacrifice their profits to remain competitive. This happens if they are not able to pass on the cost of goods sold to the consumer. Keeping a close look at the material price can help you keep up the normal profit margin even during times of inflation.

If you want to avail business loan to prepare for inflation, check your business loan EMI calculator to find out a suitable loan tenure. Your preferred lender may offer flexible loan repayment options as well. By managing these aspects of business, you can strengthen your business to face inflation better.

India as a nation has effectively strived for development through numerous government-driven schemes. The Central Government, as part of the Digital India Land Records Modernisation Programme (DILRMP) has developed a unique way to digitise land records across the country. It essentially intends to create unique identification for every piece of land. Land pockets will have an Aadhaar-like unique identification for the convenient referral.

The initiative has been named Unique Land Parcel Identification Number (ULPIN). The plot pieces will be assigned a geo-referenced 14-digit alphanumeric ID. At present, the programme has been initiated in about 11 states across the country and the rest of the states are slated to be covered by March 2022.

There is no doubt about the fact that the programme will help format the data on land and make it easier for citizens to access the same. It is also intended to improve the process of obtaining land resource information in real-time, better optimise the use of land and assist states in undertaking effective policy planning.

Digitizing of Land Records – The Immense Opportunity

The physical management of land records until now has been extremely inefficient. The ripple effects of this practice are especially witnessed in the fertile lands of the rural regions across the country. Common inhibitors of the small towns are at the mercy of revenue officials. The digitization of land only comes as a modern and efficient way to record land data and keep these administrative issues at bay.

The idea of digitization of land records began in 2018 and the benefits have been recognized across states. At the moment, the people of Jharkhand can view their land records through the ‘Jharbhoomi’ portal. The land records of Gujarat too can be viewed on the official “AnyRoR Gujarat” website. The portals can be used to view the status of land tax, make a land tax payment, register property and even apply for online land mutation.

ULPIN further aims to enhance the service for citizens and effectively prevent the risk of land fraud. The system can bring about transparency in land-related transactions and assure unique identification of land even when the records are outdated. For people of rural areas, this initiative will help access home loans. ULPIN can indeed turn out to be a very successful initiative.

Are there possible downsides?

While India is heading towards being the most well-equipped IT hub, it is still not there yet. There continues to be a major digital divide within the country as most regions do not have access to even basic digital means. The pandemic has further crippled the ongoing developments and digitisation of land could lead to more out of the pocket expenses for rural region citizens.

The Legacy issue is another aspect that has to be addressed. While the centre has assured that the linking of the Aadhaar number will only be done post consent, it is bound to become mandatory with time. Additionally, other possible issues can arise from the complexity involved with linking the Aadhaar card and carrying out biometric identification. The programme can also have a counter effect on the Forest Rights Act (FRA). It could go against traditional living conditions that forest inhibitors have been following for centuries.

To Conclude..

Digitising land records can truly help to effectively manage land administration in India. However, like any other system, it does have its own set of drawbacks that could surface over time. India is especially a country with disputed land records and outdated data. If the risk factors are not weighted well, the digitization of land records will hardly end up being a game-changer as it is currently pitched to be. The key lies in rectifying the previous injustices and updating existing land details before they can entirely move towards the new process.

To stay updated on everything related to the digitising of land records and all the updates on the government land record portals, you can visit Finserv MARKETS.

There will always be an unexpected financial emergency that might happen and you should worry about how you can tackle that situation. According to a recent study, the concern over unexpected financial emergencies is totally normal. In 2015, the Pew Research Study shows that about 54% of the people of America don’t have enough savings that can help them in difficult financial times.

Financial advisers always recommend having at least six months of savings in your bank account. But these savings don’t always get your back when it comes to an unexpected financial crisis. If you consult with a financial adviser or try using a savings calculator, you might get an idea of how much money you should have to survive in an emergency situation.

There are some cases in which no matter how much money you have in your savings account, you still are facing a shortage of money to meet your unexpected financial expenses. But in this article, you will get to know some extremely useful ways that will help you survive if you find yourself in a financial shock.

Keep Yourself Calm:

When someone finds himself in an emergency financial crisis, this makes him panic. If you keep panicking and don’t focus on what exactly the problem is, you might end up making bad decisions. You should keep yourself calm and analyze the situation. It will help you understand your monetary situation better. Keeping your mind focused on the problem will help you explore a lot of available options. You can use the “tuck-and-roll” option to get yourself out of this crisis that is given below:

You have to identify the source of the problem.Create a list of your expenses and compare them with your previous spending over the years to find out are you spending less or more. Focus on those categories of your expenses that can be adjusted or eliminated if they are extras. Try to define your priorities of living. Reducing your monthly spending might hit hard on you but it will definitely lower your expenses quickly and result in increased savings.

Increase Your Earnings:

According to a study in 2017, 78% of full-time workers are living on a paycheck. It means only one-fourth of the job holders can afford to pay their bills. Even if it is shocking and unsettling in terms of financial situation, people have to work hard and extra to make money each month. But you can reduce this tiring routine by keeping yourself away from extra expenses.

Are you looking to sell items of your house that you consider unnecessary? You can sell them online or arrange a backyard sale. You can also get a part-time job to meet your financial expenses. You might be working hard and putting in your extreme efforts to get a promotion at work. Even people are trying to get smaller vehicles that can be affordable. All of this talk is about covering your financial needs or emergencies by saving your money for unexpected events. You can easily achieve your financial goals by exploring every possible option.

Pay Visit To Your Lender:

Just like most Americans, you might be struggling to clear your debts from paycheck to paycheck or want to cover your bills. Taking a loan can be a good short-term option. Power Finance Texas has been in the finance industry for years and they know ways that will help you solve your unexpected financial problems. It is very common that even a little financial stress can turn into a serious problem. We are providing our services and loans that are specifically designed to meet the financial needs of the borrower. Below are a few examples of loans we are providing.

Personal Loans:

These are unsecured and non-business loans that don’t have any typical underwritten document by the lender for your repayment capabilities.

Installment Loans:

Generally, these are incremented repayment plans that are designed for six months after calculating the daily interest model. It makes sure that you don’t overpay. A very common example of an installment loan is a cash advance.  Installment loans you can get via online very easy.

Payday Loans:

These short-term loans are designed to help people until their paycheck and they are up to $1000. The borrower must have to pay them back till his next payday.

Short-Term Loans:

There is a limited amount of time to completely pay the short-term loans as its name suggests and the installments must be paid equally.

You can learn about more financial options offered by Power Finance Texas by contacting them and learn about the qualification for loans. We have experts that will help you in your difficult financial situations and emergencies.

Taking a home loan with the lowest interest rate isn’t always a sound decision. Factors like prepayment facilities, loan tenure and processing fees have an effect on how much you end up paying for the loan. It’s also crucial to know what home loan options are available to you, so that you won’t have to go through any of the problems encountered by first-time loan seekers.

Here are some types of home loan options that you should know about if you’re applying for a loan.

Fixed Interest

If you take a fixed home loan, your interest rate will remain stable for the entire loan tenure. Financial institutions even offer semi-fixed loans, where the initial rate remains the same for 2-5 years and then changes.

While this may seem like a great bargain, fixed-loan schemes are 1-2% more expensive than floating loans. While that may seem like a small percentage, it can translate into quite a lot of money for a high-principal, long-tenure loan.

And if you want to close your loan early, some lenders even mandate that you pay a penalty fee. Others, like Bajaj Finserv, offer zero foreclosure charges, allowing you to repay your loan without any additional debt.

Floating Interest

Variable home loans are currently one of the most sought-after home loan options in India. With this scheme, interest rates vary based on the economy, and are also influenced by the Prime Lending Rate (PLR) and Base Rate System used in your financial institution. A fall in market prices leads to a dip in the rates and vice-versa. With viable prepayment options and lower costs, it’s one of the most popular home loan options for first-time buyers.

Balloon Payments

Banks love this repayment option. A balloon payment involves paying larger instalment amounts, generally more than one-third of the standard instalment. It’s a great way to improve your loan eligibility and a quick solution to ridding yourself of debt. The downside is that the interest rate on this kind of loan is often a lot higher than most other home loans.

Refinancing

While procuring a home loan, the best option would be a loan that you can refinance. This means substituting your current home loan with another loan under different terms like a 20-year fixed refinance rate. This way you can take advantage of more feasible interest rates, reduce your risk, and maybe even shorten your loan tenure. With Bajaj Finserv, you can take loans that are proportionate to the current value of your property, provided that you purchased it in the last 12 months with your own funds.

Accelerated Repayment

If your repayment capacity is higher than your current monthly instalment, this scheme is best suited to you. It involves paying a larger EMI, so your loan is repaid faster and with minimal overall expenditure. As an added bonus, you can even enjoy the tax benefits that accompany a lengthy loan tenure.

Before choosing a home loan option, carefully consider your alternatives. Don’t worry about wasting time, technology has made it possible to avail a loan at the click of a button. For example, Bajaj Finserv, approves online Home Loans within minutes of your application, and disburses the amount in the next 72 hours.

 

Different types of loans are offered by loan companies, for different companies. Their loan contracts include a variety of terms and conditions. Every person tries to choose the loan that benefits him the most. These loans may be among friends and family members or from lending companies and banks.

Loans include personal or collateral loans, student loan, signature or co signer loan. If you are in need of loan to fulfil your financial need, or to make your life easier, check and search every detail of terms and conditions offered by the lending companies and compare them.

One type of loan is signature loan, which you can get easily, even with low credit score. Signature loan is also known as good faith loan. It is an unsecured loan, where no collateral is needed. But this loan demands high interest rate, as there is no personal equity involved in it.

You only need good credit score and monthly income record and then will easily be eligible for Hawaii Signature loans. This is a short-term loan; a great option for financial emergencies. Many signature-based lenders can help you to overcome medical emergencies, unpaid utility bills, car repairs and home renovations.

If you are not confused or not satisfied, you can always discuss with a financial advisor, to consult your doubts. You need to make sure that you are taking right kind of loan for your specific need.

There are many types of consumer credit and loans. Loan contracts include all kinds of terms and forms, ranging from simple to complex loans. They can be simple promissory loans between friends and family members; or complex, like pay day, student loan, mortgage and auto loans.

You can get loan from banks, credit unions and lending companies for important and necessary items like home, car or student loan. You can also get small business loans for different conditions.

Every loan and its conditions of repayment are conducted by state for the protection of consumers. The interest rate and loan length are clear and is discussed to avoid any fraud or scam.

People use credit card for daily expenses like food, transportation, clothes and small repairs for home and car. Close-end credit is used to get finances for specific purposes or a specific period of time. They are known as installment loans because the consumers have to pay back loan in monthly installments, including interest charges; for a certain period of time, which is decided before.

Closed-end credit includes loans for cars, students, pay day and house or mortgages. To find a good mortgage render, is very important. Some clients want to start a small business and get mortgage on their home for the finances. When you need more loan, you can get secondary financing on your first mortgage. This could be for any reason, like, purchasing another asset or renovating your property.

Applying for a home loan to purchase a new property can be exciting and confusing, especially for first-time home buyers. Initially to need to work out how much you need to earn to get on the property ladder. When you begin to compare loan options, you may find a variety of terms that you are not familiar with. Even terms that you think you understand may have a different meaning when applied to a home loan repayment plan.

Estimate Your Home Loan Repayment

With a better understanding of the key phrases and terminology used to describe a home loan, you should be equipped to compare home loan options. The next step is to calculate your potential home loan repayments to gain a more accurate idea of what you can afford.

The following home loan terminology should help you gain a better understanding of the various figures and values that you are presented with.

Lenders Mortgage Insurance (LMI)

Lenders mortgage insurance (LMI) is commonly required for borrowers that cannot make a significant deposit on a home. While LMI is common, nearly 25% of Australians do not understand who benefits from these payments. Many people assume that it protects the home buyer.

LMI is protection for the lender in case you cannot complete your home loan repayments. When the borrower defaults, the lender can recoup their loss through the insurance company.

Loan Valuation Ratio (LVR)

When applying for a loan, you may hear the term LVR. This refers to the loan valuation ratio. A high LVR may require you to pay LMI.

Typically, if the LVR is higher than 80%, the lender will require the borrower to pay lenders mortgage insurance to protect against the borrower no longer affording repayments. To increase the LVR, a borrower needs to raise additional funds.

Fixed and Variable Interest Rates

Borrowers need to choose between fixed and variable interest rates for their home loan. There are advantages and disadvantages to both options.

A fixed interest rate means that the interest rate is set and will not change during the fixed rate term. Typically, the fixed rate term lasts one to seven years, depending on the lender.

The variable interest rate is the most popular option in Australia. With the variable interest rate, the interest rate will change during the life of the loan based on the current state of the economy. When Australia’s economy is doing good, your interest rate will be lower. However, there is a risk that you may experience higher interest rates if the economy should shift in the opposite direction.

Comparison Rates

You may also find a comparison rate when looking at interest rates. In Australia, the National Consumer Credit Protection Act 2009 established the National Credit Code (NCC). The NCC requires that lenders include a comparison rate when advertising a fixed term loan.

Before this requirement was made, lenders could merely advertise the proposed interest rate. The comparison rate includes the interest rate plus most of the fees and charges. This provides a more realistic look at the interest rate that you will end up paying.

Estimate Your Home Loan Repayment

With a better understanding of the key phrases and terminology used to describe a home loan, you should be equipped to compare home loan options. The next step is to calculate your potential home loan repayments to gain a more accurate idea of what you can afford.