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How to Use Top up Home Loans Effectively

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A Top Up Loan is a kind of additional funding that can be obtained from a bank if the person already has some kind of existing loan arrangement with it. This is a kind of universal loan that may be availed if additional financial needs crop up and so the top up can be applied for sudden and large medical expenses, to pay for higher education, for a wedding in the family or as down payment for a car. A Home Loan EMI calculator helps calculate how much one would have to pay each month as a repayment for the existing loans and so one should only apply for a Top Up Loan if they are confident they would be able to repay it as well along with the original loan, as the EMI would go up.

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In case one does apply for such a top up, there are quite a few benefits to be enjoyed from it though and one should use it to their best advantage.

 

  • It provides an improved scope for negotiating a loan amount. With the help of a Home Loan eligibility calculator, one can determine how much loan amount one could apply for based on their present income and once the basic eligibility is met with, Top Up Loans are extended to current Home Loan borrowers. One should have paid the existing Home Loan without any delays for at least 6 months to apply for a top up and this is mostly 70% of the original loan amount. The high point is, that if income increases, there is the scope for negotiating for higher loan amount in future, or if the original loan has been paid off to a large extent, and in this way one would keep fulfilling every need of the family over time.

 

  • To apply for a Top Up Loan, one would have to submit the same document required for Home Loan, in addition to the bank records that shows that the existing Home Loan is being steadily paid off. The original documents include photo ID, age and address proof, income proof like salary slips of the last six months, banks statements of the last three months, and IT returns of the last three consecutive years, and business proof like TAN and sales tax papers for self employed people. One already has these documents in place as they had applied for a Home Loan earlier and so if an additional loan could be obtained without hardly any extra paperwork, then why not? In fact, in some banks, there is no need to submit the documents anymore as the borrower has already gown through a round of verification and the top up is automatically approved.

 

  • Today many banks and NBFCs like Bajaj Finserv are offering the lowest Home Loan interest rates as possible and the interest rate on the top up is higher by just about 1.5% to 2%. However, with an interest rate of around 11% to 12%, the top up can be a cost effective solution because applying for another personal loan or even gold loan would prove to be far more expensive because these loans mostly carry an interest rate of 14 to 24% a year. Education loans might have lower interest but one would have to go through the paperwork again and these are secured loans and providing a collateral can again be a cumbersome task. One would hence have to pay far less towards the EMIs for a Top Up Loan than one would have ended up paying had they applied for another personal loan.

 

  • There are a number of tax benefits to be availed for Top Up Loans which one should make full use of. If one applies for a Top Up Loan to purchase a property, then the interest and the principal repayments would be eligible for tax deductions under the 80C and section 24 of the IT Act. Hence, not only would one get loan for a house with the least hassle possible, but they would also be enjoying tax benefits. However, such exemptions are only allowed for buying a home and not if the top up has been applied for some other reason.

 

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The Ultimate Guide To Assure A Safe Cryptocurrency Trading

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The Ultimate Guide to safe cryptocurrency trading

2017 was the biggest year for the crypto-craze. Before 2017, cryptocurrencies were known only to a small community of people – mostly into finance or tech – the FinTech industry. However, once the prices started to rise and Bitcoin price hit $10,000, it became a matter of international discussion. Front page stories, prime-time slots and the homepage of your favourite social media – cryptocurrencies were dominating media. This led to many new and novice investors investing in cryptocurrencies for the first time.

While investing in cryptocurrencies seems to be a very lucrative idea initially, when you look a the long-term picture, it has many risks of its own. Cryptocurrencies tend to offer huge, unprecedented profits, the losses are equally huge. Cryptocurrency investments should not be made on an instinct as they can result in some severe financial damages if not done correctly.

While the crypto-economy appears very different from the regular economy, the rules of trading are quite similar for both of them. Let us take a closer look at some of the best tips which will ensure that you are able to trade cryptocurrencies safely.

Best Tips To Trade Cryptocurrencies Safely

1. Research about the currency before you invest in it

Before you buy a cryptocurrency – you need to research into it. What does the currency stand for, who are the people who have developed the currency, what real-world problem does this currency solve, how long has the currency been around, etc. It would also be advised to look up the social media handles of the currency you are about to invest in.

You need to look up the whitepaper of the cryptocurrency that you are going to buy. A whitepaper is a document which contains all the technical, managerial and marketing details of the currency – it is basically how the creators envision the currency to function. It contains of a road-map for the future as well. It is essential to read the whitepaper before investing in a new currency.

Researching a cryptocurrency also involves looking up some historic details – analyzing the graphs of a currency’s year-on-year performance can give you a hint on when the currency usually tends to lose or gain price. Moreover, you can also check out how closely is the currency linked to Bitcoin prices and trade accordingly in the future.

2. Understanding the ‘right time to buy’

Timing is everything in cryptocurrencies. Investing in the right currency at the right time can give you massive returns. One such example is that of Ripple, which was dormant for most of the year but suddenly boomed by 36,000% over the last couple of months. One of the most frequently asked questions in the world of cryptocurrencies is – ‘is this the right time to buy’.

There are two types of ‘good buying decisions’ that you can take:

  • Buying the dips: There’s a set of people who believe that cryptocurrency markets will always bounce back. Hence, they tend to buy during the dips, i.e., buy when the price drops. If the price at the moment is $10,000 – and it drops to $8,000 – they’d buy it at $8,000, hoping the prices to bounce back to $10,000 and make a profit of $2,000 in the process. If the price falls even lower, they’d keep buying as long as funds allow them to – as these optimistic investors believe that the markets will recover eventually. 
  • Buying when the price rises: There’s another set of people who do not believe in the aforementioned theory of buying during the dips. They hold during the dips and wait for the prices to begin rising again. Once they notice that the prices are rising for a significant time, they invest in the currency and make a short-term profit on this positive momentum.

Basically, there is no fool-proof way of ensuring that every purchase will make a profit. However, these are the two general practices which many traders follow.

3. Setting Stop Losses and Targets

This is something which is quite similar to regular trading – as you’d do it in the stock markets. Targets and Stop Losses are critical. Every time you invest in a cryptocurrency, you need to consider three things: the current price of the currency, a desired profit, the maximum extent of loss you are willing to suffer.

These targets and stop-losses are supposed to be adjusted periodically depending on the movement of the markets. Moreover, most cryptocurrency exchanges and trading platforms also allow you to automate this process – which ensures that you trade safely and your investments do not lead to a loss.

4. Follow the news

For those investing in cryptocurrencies, it is critical for them to follow and stay up to date with cryptocurrency updates from across the world. Cryptocurrency markets are largely dominated by sentiments. A news of a nation banning cryptocurrencies could have a global impact as it could invoke a global FUD – Fear, Uncertainty and Doubt. Staying updated with all the latest news updates could give you an idea if the markets are going to go through a dip. For instance, news updates such as China banning crypto-exchanges or rumors of South Korea imposing a similar ban resulted in the markets crashing.

5. Do not invest more than you can afford to lose

The final bit of advice is rather simple. Do not invest more than what you can afford to lose. Basically, all the investment in cryptocurrency should be made from a pool of money that you have lying around and will not need for your day-to-day life. This should ideally be the kind of money, losing all of which will not affect your life. There have been cases where people have sold their cars or mortgaged their home to invest in cryptocurrencies – which resulted in massive losses. It is critical to understand that all investments in the cryptocurrency markets are subjected to major risk given how volatile the markets are!

Conclusion

To conclude, there can never be a way to ascertain for sure if you have invested in the right currency and at the right time. There are certain sites like CryptoGround where you can get the latest knowledge about it and keep yourself updated of the market trends. However, if you follow the aforementioned advice – there is a strong chance that you can make a decent profit out of your investments – or at least ensures that you do not end up making a loss, no matter how bad the market scenario may be at the moment.

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What Should You Do If You Run out of Money While Renovating Your Home?

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Running out of funds while your home renovation is still in progress is an embittering experience. However, it is a reality that bothers many Singaporeans. Whether you have taken a renovation loan or not, running out of your reserves before the completion of your project can lead to a number of problems.

Leaving your home renovation unfinished can affect you in the following ways:

  • Affects the aesthetic appeal and look of your home
  • Can make your home less liveable
  • Can affect the resale value of your home
  • Can affect the rental value of your home

Common Issues Leading to Budget Overrun

Some of the common issues that can lead to cost escalation and budget overrun are as follows:

  • Heavy structural changes
  • Deviations from the original plan
  • Poor workmanship
  • Encountering unexpected design-related problems
  • Failure to properly forecast total cost of renovation

Smart Solutions for Your Problem

The most important thing that you need to keep in mind is that the liveability and safety of the residents of your home shouldn’t be compromised even if you can’t fully complete the project. The following ideas will help you deal with this problem smartly:

Know what to finish first

Getting stuck with an unfinished renovation project could be frustrating, especially if it is due to lack of funds. However, through proper planning and by setting priorities, you can still add value to your home. If it’s a major renovation or improvement project, you’ll have to break it down into parts and prioritise them in terms of importance. A bathroom or electricity project can’t be left unfinished, it’s purely functional in nature.

However, a painting project or cosmetic upgrades can be put on hold temporarily till arrangement for extra funds can be made. If you were planning to add new fixtures or mood lights to the living room or replace your old lights, you can put it on hold. Your master bedroom should ideally be fully completed, since this is where you spend most of the time.

However, your living room, which requires detailing to work and naturally more investments, can be kept for later. Prioritise structural reinforcements over simple facelifts.

Scout for additional funds

This seems to be an obvious step. However, arranging for additional funds at a short notice may not be easy. You can explore the following options:

 

  • Use your emergency fund: If you have been maintaining a separate emergency fund for all sorts of emergencies, this may be a good time to use it. Using your own funds will save you interest payments.
  • Ask for help: If your friends or family can help you arrange the additional funds immediately, you can finish renovating your home or at least the important parts of it. This will give you time to arrange for money to pay back the dues without having to worry about interest payment.
  • Take a home renovation loan: If you haven’t taken a renovation loan and you were paying for renovation out of your own pocket, you may apply for a renovation loan. You can borrow up to S$50,000 in renovation loans in Singapore and is often considered the smartest way to finish a renovation project on time. However, if you have already taken a renovation loan and have run out of money, you may have to look for alternatives. Try to broker a deal with the lender. Sometimes, if you can find a guarantor, the lender may agree to offer you a line of credit with higher limits. Of course, your current financial standing and ability to repay will be evaluated.
  • Take a personal loan: A low-interest personal loan is another option that you can explore for additional funds. Usually, an EIR of 8-10% p.a. will be applied on your loan. A balance transfer is another smart choice.
  • Use your credit card to take a loan: Although taking a loan with your credit card isn’t an ideal choice because you may have to pay interests at the rate of 24-28% p.a., it may be the only option left to you if you have exhausted all other options and are still falling short by a few hundred or thousand dollars.
  • Use a secured overdraft: If you have a valuable asset that can be used as a collateral, you may make use of the secured overdraft facility to get a line of credit, where the credit limit is decided by the value of the pledged asset. It gives you extra cash without forcing you to liquidate your funds/assets. Most assets like FDs, structured funds, bonds and securities will have clauses under which heavy deductions will be made for premature withdrawal, leading to a real or notional loss.

 

If you were planning to rent out your flat and think that leaving it fully or partially unfurnished may affect the rental value of your home, your apprehensions may not be totally unfounded. On the bright side, you can still have a rental income if your tenant is okay with an unfurnished/semi-furnished property. You can deal with the aesthetic aspects of your project in a phased manner.

If you think that your contractor is overpricing services, it’s best to look elsewhere. The longer you take to finish a project, the higher are the chances of cost escalations.

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How to Get Car Loans with Bad Credit No Money Down

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It is very common that most of the car loan lenders will ask make some down payments whenever a person applies online for car loans with bad credit score. But still; there are some financial lenders that will finance loans for bad credit car loans no money down.

Could the motivation for the dealer and lender to collect the down payment up front be to lower the risk of bad credit auto loans (if the borrower never makes a payment, or stops making their monthly payments after a while) or is it simply that the dealership or lender would like to make a little extra profit up front? The answer is actually a little of each.

  • Fill Out our 60 Second Application Form
  • Drive away your dream car
  • Fastest Approval, Bad Credit OK
  • Auto Loan Bad Credit In Just Four Easy Steps
  • Fill out online application form
  • Get a call from our dealer representative
  • Receive your loan approval
  • Choose your car and drive it home

GUARANTEED AUTO LOANS WITH BAD CREDIT AND NO DOWN PAYMENT

Car buyers trying to apply for a bad credit auto loan often feel that they have to obtain their auto financing from the automobile dealership for the car loan due to their credit score or due to past credit issues. The mistake that those with bad credit often make is that they never even check with their bank or other local banks before making the choice to obtain financing through the automobile dealership. Due to this simple oversight the principal of the loan increases because of inflated finance charges and transaction fees that are added by the dealer or auto lender.

It’s pretty much a given that car dealers will raise the final price of the car or truck above invoice price (what they pay the factory or what they pay when they buy a used car from a previous owner). However, if you apply for car loans with bad credit no money down, the dealership will very often raise the interest rate several percentage points. Basically, your monthly payment could go up by, for instance, the amount you spend on gas every month, if you finance a bad credit car loan with no money down through a dealer.

You can get a guaranteed approval with no money down bad credit car loan outside of the dealership. Make sure you try this before you go out for serious car shopping. You need to know how much money you are approved for the no money down auto loans. That way you and the dealer both know you have secured a loan and have a set amount to spend.

However, if you are able to scrape up even a minimal down payment, you could save a considerable amount of money. Many dealerships will accept a down payment as little as $199 or less. Many times dealerships will run specials where they will accept a lower down payment. When you are negotiating the terms of your bad credit car loan is the time that your future monthly payment will be decided. Therefore it’s urgent that you don’t just jump into a loan that you won’t be able to afford, that will just lead to the repossession of the car that you need. If you are able, to get a lower monthly payment by making even a tiny down payment, it would serve you well to do so.

It is possible to buy a car with bad credit and no money down, even in today’s post recession environment. In the past, if you needed a bad credit auto loans to buy a new or used vehicles, you almost needs had to put down a size able down payment in order to qualify for auto finance online.

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