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7 Types of Unsecured Loans for your Needs

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There are two major types of loans: secured and unsecured. Unsecured loans are usually popular because it is easy to obtain. They are not attached to any collateral, allowing borrowers to get money for almost any purpose. With unsecured loans, people are not worried that they lose everything if they are not able to pay on time or not at all. This type of loan is a little less risky for borrowers as the consequences are not as immediate if you fail to repay.

Below are some of the unsecured loans you can get:

Credit Cards

A credit card is a form on unsecured loan because you are only borrowing money from the credit card company to buy something and paying back at a later date. Using a credit card means you have a pool of money available at your needs. Credit cards are popular due to the fact that borrowing money is easy; once application is approved, you can use the money with anything you want to purchase.

Payday Loan

This popular loan type usually came from a non-financial business. The borrowers get enough money to cover their expenses and make a payment on their next paycheck. Payday loans are easy and convenient. However, they have a high transaction fee as well as huge interest rates.

Student Loans

This type of loan is designed for education funding. This is always a good fit for students because they can get unique features that cannot be found somewhere else. It has flexible repayment options, enough grace periods, and subsidized interest. There are no other requirements except the borrower should be a student.

Small business or Start-Up Loans

Usually, start-up businesses have few assets or no collateral at all to use when they apply for a loan. Most of the financial institutions will offer unsecured business loans for those who are starting to put a company. Depending on the loan company you borrow from, the repayment terms can be flexible. Keep in mind that the loans are being approved with the understanding that the business is responsible for paying back the loan.

Peer to Peer Loans

This loan is allowing you to borrow money from individuals instead of traditional lender such as a bank. There are many online loan companies allowing people to post a loan request and individuals may or may not accept the request. These peer to peer loans are on a fixed-rate instalment and features competitive interest rates. However, keep in mind that your credit score is important to get approved.

Signature Loans

This type of loan is unique because it only needs your signature to secure a loan. The borrower only needs to promise that he or she will repay the person or business lending money. Signature loans are frequently available at banks and other credit unions; usually released in instalments. Generally, the borrower will pay back the loan with certain monthly amount until the total amount has been repaid fully. This loan has a lower interest rate, and so it is recommended for first-time borrowers.

Term Loans

This is offered by financial institutions with a specific amount that is agreed by both lender and borrower. The agreed amount has a fixed repayment schedule and to be paid on following options: monthly, bi-monthly, or bi-weekly instalments.

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Finance

Rising Credit Card Debt? Apply a Personal Loan to Pay it off

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Credit cards are one of the most popular means of paying for transactions. The ‘buy now pay later’ concept of the card makes it quite attractive as individuals having a shortage of cash can also use the card for making transactions. Moreover, the card also allows you to pay a minimum amount due and revolve the remaining outstanding balance to the next month if you are in a financial crisis. Though this revolving credit facility seems like a good way to delay paying your credit card bills, what you overlook is the high-interest charges which are applicable. Revolving credit facility incurs an interest on the entire outstanding balance. The interest rate goes up as high as 40% and you inevitably rake up a high credit card debt. If you have multiple credit cards, the debt becomes too high to pay off. But, there is a solution to the mounting credit card debt you face. You can take a personal loan and pay off the entire debt in one go. Yes, a personal loan helps you to pay off your credit card debts. What’s more, it also has various advantages. Do you know what? Let’s find out –

You can consolidate the entire debt and pay it off in one go

When you take a personal loan for paying off your credit card dues, you get the benefit of consolidating the outstanding balances of all your active credit cards. You can sum up the total debt outstanding to your name and then pay off the debt by availing a personal loan online. Since the debt is consolidated and paid off you are freed from the task of remembering the due dates of multiple credit card bills. You just have to remember the EMI payment date of the personal loan which you availed. You can be freed up of that too if you automate your EMI repayments through Standing Instructions or ECS facility in your bank account. So, a personal loan brings together all your debts under one head and makes it convenient for you.

You save a fortune on interest payments

Do you know that credit cards have the highest interest rates associated with them? Interest rates on your credit cards go as high as 40% per annum. Therefore, your credit card dues multiply because of the incidence of the high-interest rate. Personal loans, on the other hand, have very low-interest rates compared to credit cards. The interest rate for personal loans ranges from 10.75% to 22% depending on your eligibility. Thus, by substituting your credit card debts with a personal loan you lower your interest outgoes considerably.

You can control your EMI payments

When you opt for a personal loan, you have complete control on your EMIs. You can increase or decrease the loan tenure to arrive at the EMIs which would be most affordable for you. Credit card debts don’t give you this control. Under your credit card,you have to pay the minimum amount due to carry forward the remaining balance to the next cycle. This amount might not entirely be affordable especially when you are in a cash crunch. So, take a personal loan and control the EMIs which you pay for your debts.

You can improve your credit score

Even though revolving credit facility is available on your credit cards, the facility, when availed, reflects badly on your credit score. It depicts that you are not paying your credit card dues regularly and are building up debt. This depiction hampers your credit score and lowers it. In a personal loan, the EMIs payable are a part of the loan. They, therefore, have no effect on the credit score. Thus, when you repay your credit card debts with a personal loan your credit score improves as the dues are not revolving every month. Availing a personal loan in place of a credit card has no effect on the score because you substitute one type of unsecured loan with the other.

So, personal loans are the best bet to repay your credit card debts. They do not require any collateral security and are allowed easily. You can take a personal loan online and consolidate your Credit Card debts. So, don’t increase your credit card dues any further. Avail a personal loan and clear them off.

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Finance

How Does a Home Loan EMI Calculator Works?

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Are you planning to apply for a home loan and are worried what the EMIs will be? Well, you need not worry about this at all as the home loan EMI calculator will calculate the EMIs for you in seconds. The home loan EMI calculator is a simple, fast and reliable source of information to calculate your  EMI’s. Moreover, you will be well-informed about your loan even before you approach a bank.

Here are the few advantages of using a home loan EMI calculator:

  • Saves your precious time
  • Gives you accurate results
  • Helps you to plan your finances
  • Offers a list of housing deals just for you

Home loan EMI calculator computes the EMI according to the details entered by you in the calculator. It works on the following inputs:

• Loan Amount

• Tenure of home loan

• Interest Rate

Loan Amount:The amount of money that you borrow to purchase a house is the home loan amount. The amount that can be borrowed depends upon the cost of the property and your repayment capacity. The lenders generally give 80% of the property value as a loan (the rest 20% is to be paid as a down payment). Keep all these things in mind to have a better idea of how much loan amount you need to apply for. Do your calculations correctly in order to get the correct value of your EMIs. Also, enter an amount keeping in mind that EMI or monthly installments cannot account for more than 40% of your monthly income.

Tenure:Once you have decided the loan amount, choose the tenure for the repayment of your loan. Home loans are long-term loans with long repayment tenure of up to 30 years. You can choose the loan tenure as per your choice, but remember the longer tenure you choose the more interest you will have to pay. However, you can modify the tenure on the EMI calculator and arrive at a tenure that works for you.

Interest Rate:After entering the loan amount and tenure on the home loan EMI calculator, you need to enter the interest rate offered by your preferred bank. You can check the home loan interest rates by visiting the bank’s website or through the website of different financial aggregators.

Amortisation Details: The home loan EMI calculator also has the option to display the amortisation details of your home loan. These details help you understand your principal home loan amount, interest paid and the outstanding loan details on monthly, half-yearly or annual basis.

After entering all the details on the EMI calculator, press the ‘Calculate EMI’ button. You will get your monthly home loan EMIs in seconds.

Conclusion:Using a home loan EMI calculator can help you manage your finances better. In addition, it saves a lot of time and gives you accurate results. It is more reliable and easy to use as compared to the mathematical formula.

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Finance

How to Start Business Support Services?

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Even if you are in a technological startup, there are many techies’ tasks you will probably need to outsource. Budgets are tight, and every startup employees are famous for being forced to wear a number of hats. However, employing a DIY approach can sink a startup faster than an investor who pulls out funding at the last minute. The best approach is budgeting for business support solutions so that the founder and employees can focus on their own jobs.

The size of the market for business support services in Darwin is difficult to estimate for a number of reasons. The primary reasons are the providers, services and customers who are constantly evolving with technological advances. For example, the secretarial service of the 1960s and 1970s were the good electric typewriter was pretty much all you needed but now it’s get off the ground today’s businesses. And who knows what technology will be able to do in 30 to 40 years from now?

To understand the future perspective, take a look at how the industry has evolved over the span of the 20th century. The administrative demands of doing business have grown tremendously, creating a need for clerical support. With the introduction of desktop computers and increasingly sophisticated office equipment, the skills and knowledge requirements of employees have also increased.

At the same time, the general business landscape has changed radically. Big business is looking for ways to streamline their operations, and one popular option is a farm out, where they retain another company to provide a service that may have traditionally done by employees. Small business companies want to stay lean and profitable; even they are turning into outsourcing rather than fattening up their payroll.

Combine the obvious need with new ways of operating in the business world; you have a dynamic young industry wide open with opportunities: business support services. In fact, there are so many opportunities that if you don’t have a clear plan, target market, and specific services, your chances of success are low. With a lot of thought and preparation and a minimal amount of cash, you can quickly be on the road to profitability.

Types of services

You can offer a wide range of services; the following list encompasses the kind of services you can offer. The most important thing listen to your clients, they will let you know what they need and then you can decide if you can provide it.

  • Taxation
  • Accounting
  • Bookkeeping
  • Business improvement and automation solutions

Taxation

Taxation is very important for business support services because it helps you for the preparation of tax return for individual and companies and trusts.

Bookkeeping

The biggest advantage of bookkeeping is that remote bookkeeping solutions can go paperless. By using your Smartphone you can have a secure portal into your accounting software. The stressing of filling and fear of losing your receipts is not an option for you.

Business improvement and automation solutions

As technology improves and industries become more competitive, many businesses want to remain profitable. With new software applications being developed daily you can take advantage of technology to increase productivity and reduce administrative costs. There are many affordable technical solutions available that suit your business needs.  Through the implementation of business support, you can roll out new software system and processes.

Accounting

The manual processes and diverse data and legacy system used financial reports must provide accurate and timely information. The processes should be the standardized and efficient workflow that enables your organization to capture and share accurate financial data across the enterprise.

Target market

You have three broad markets for business support services in Darwin.

  1. The general public
  2. Small commercial and home-based businesses
  3. Large corporations.

General public

By “general public” we mean the individual person who is not into businesses. The two largest segments of this market are people with college or school students and housewives.

Small commercial and home-based.

The majority of your clients will fall under this category. These are companies that require administrative support but do not have the money, space or need for the full-time employee. They may prefer to outsource specific tasks rather than invest in the talent and equipment necessary to get a job done right. Hiring temporary employees can be more costly than small businesses needs demand.

As the number of small businesses continues to grow, so does your potential market. The list of services they use is limited only by your imagination and personal preferences. As you develop a relationship with small businesses, you will be in a position to make a suggestion that will increase volume and expand the scope.

Large corporations

Large companies also use business support services when their own staff members are unavailable for certain reasons like vacations or illness. They may not actually need a temporary staff they just need someone to come in and be present in the office. Sometimes they may need someone who can handle all or part of the work of the absent staff.

Marketing

Marketing is an area where your creative side can shine. It is something many people don’t like to do it it’s very essential if you are going to build a successful and profitable business.  Don’t get discouraged if your marketing efforts don’t produce an immediate response. You will have to put together a professional and attractive information package. It is not unusable for a sales contact not to generate a response for months or even a year.

Advertising

Advertising is a great way to bring new business, but choosing effective media may take some experimentation. The single best place to advertise is your local newspapers because that’s the place where people look when they need a service and don’t know who to call. Don’t limit yourself with local newspaper; try to put ads on a radio station and news channel. You can place ads in the university newspaper classified section and get a good response from that.

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