Bank loan terminology that will benefit you for life

Bank loan terminology

Bank loan terminology should be studied before using the products of the bank. Especially the knowledge of bank loan terminology helps in deciding the loan amount band tenure and how the Expected Monthly Instalment works. Another new kid on the block is the MCLR linked. The first thing to know is, How do MCLR linked homeloans work? MCLR expands to the marginal cost of funds based on lending rates and has been the norm of lending in Australia for more than a decade now. It is different from base rate linked loans which are reviewed every month and change happens only when you prepay some amount since the loan is based on the cost of funds and margin. However, the loans based on MCLR take into account the marginal cost of funds and tenure of the loan. Thus, the change in the rate of loan happens every year, and the loan is reset annually. This is a more realistic way of repayment rather than the earlier fixed rate and flexible rate system.

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5 best online EMI calculators

prepare-you-for-your-application-with-online-emi-calculators

Are online EMI calculators useful tools for estimating your loan cost, and are they accurate? For a house loan you can get close, but you will still need to recalculate with a few years interval when the fixed term ends or central bank rates change dramatically. There are great Personal finance apps to help you manage finances better but for an initial estimate, you can use simple online EMI calculators. The simplest ones consist of a form for input and one for output usually with a list of all calculated payments. There is such a simple one at http://ncalculators.com. While simple, it is also purely a table, others have graphical results to help you see how it works. Commonwealth Bank has a nice line graph, and the numbers are clearly stated, all very simple and clear. When you poke around you will find nice features, like adding extra payments to see the savings. National Australia Bank has a simpler interface without graphs, but it gets to the point. Change of interest calculations are also available. Adelaide Bank has a very nice graph and sliders to adjust loan amount, duration of the loan and other parameters. ING Bank has a calculator that is suspiciously similar to Adelaide Bank which shows that it is a popular tool and with good reason. It is very easy to manipulate so you can experiment a little and there is also a handy repayments calculator. Great if you expect a raise in a few years. The winner is Adelaide Bank.

Tips on getting a mortgage after foreclosure

Getting a mortgage after foreclosure is not easy

Getting a mortgage after foreclosure can be really difficult. Generally, it takes seven years to reach a clean slate in your credit history. In the first two to three years getting a mortgage after foreclosure can be really challenging. The foreclosure puts a black mark on your credit record. Here are some ways you can improve your chances of getting a mortgage.

(1) Strategic timing of application – Wait out the time until the black mark is removed from the credit report. Apply in the first three months as this is the time when the credit report is under processing and the lenders do not see it in your credit report. Being smart about your application can help, but it is not guaranteed.

(2) Pay all credit card debt – Paying off all credit card debt helps you build some points on your credit report that will help you get a mortgage approved. This is because 30% of a credit score is calculated via the credit card debt.

(3) Pay other loans EMI on time – You should become a trusted loan taker by paying all other loans EMI on time. This will help to improve the credit score eventually helping to get a new mortgage. The rates in Australia are really good for mortgages at the moment. The banks facing political heat in Australia due to raising the rates are dying down. So, now is the right time to apply for a mortgage even if you have experienced foreclosure.

Unsecured loans – Pros and Cons

Unsecured loans - Accessible if you Fulfil the Criteria

Unsecured loans are loans are available to everyone with a good credit score. You don’t have to be a homeowner to apply for an unsecured loan as you are not offering the bank anything as collateral against your loan. These are a good option for people who want to gain a good financial reputation or create a history with a bank. pros and cons of unsecured loans:

Pros:

– Unsecured loans can be a cheap and easy way to get your hands on cash.

– They offer flexibility when it comes to repayments and customers can usually choose a term between 1 and 5 years.

– Application process is straightforward and easy to process.

– No risk in regards to property loss as you aren’t using your home as collateral.

Cons:

– Higher interest rates are often seen in unsecured loans as there is no guarantee for the bank that you will make the repayments on time or at all.

– Limits, there is a limited amount of money that you can borrow if you are applying for an unsecured loan because again there is no guarantees for the lender.

– Increased debt, having an unsecured loan can often lead to more debt as banks will offer to lend you more and more money if you are reliable in making repayments.

– Shorter loan periods on these types of loans often means that your repayments are going to be larger because you have to pay them off quicker.

Overall an unsecured bank loan has a well-balanced pro and con list. There is no reason you shouldn’t apply for this type of loan if you are in need of some fast cash or if you want to create a history with a particular bank. As with any loan, however, you should apply and complete with due diligence.

Online personal loans for people with bad credit

Online personal loans for people with bad credit
<p>It is not easy to get online personal loans for people with bad credit. However there are ways you can try to get loans even if you do have bad credit. Personal loans can help you get rid of credit card debt which has much higher rate of interest than personal loans. Here are some tips which will help get online personal loans for people with bad credit. (1) Know and correct your credit report – The general way is to keep the credit report knowhow to the loan company. This can be disastrous. It has been found that around one-fourth of the credit reports are with wrong data. So studying your own credit report will help you prepare for answering questions the lender puts forward. Make sure your report is correct. (2) look out for socially responsible lenders – There has been a marked change in how lending is happening. There are some socially responsible lenders, who will look at overall financial situations and may give you loan. A bit of research can help you get the loan company who is ready to lend you. (3) Try a loan against property – If you have tried all things but are not getting the loan, then you can try this. A house can act as a collateral and the lending company will give you the loan. But this should be the last resort.

Credit Ratings and loans

 

Credit Ratings and how it affects loan sanctionWhen banks give loans the first thing they consider is the individual’s credit ratings. So, what is this credit rating? It is a parameter put forward by credit agencies which measures the trustworthiness of a person. A person with high credit rating is the person who pays his bills regularly and in full. Such kind of individual is considered safe options when sanctioning a loan. On the other hand are people who have missed payments, even by mistake. They will have average or poor ratings depending on how often they have missed. Ferratum is one place you could go for learning more about payday loans.

So an average or poor credit rating does not mirror his/her personality. In day-to-day life the person may be darling and really helping people all the time. However he has erred in his financial liability of paying bills on time. This can really matter when he/she applies for a loan. The average or poor rating means there will be hurdles in the loan getting approved. Even if it gets approved the loan amount will be considerably lesser than that of a high rated individual in the same income bracket which are taxable.

Getting high credit score and Loans?

Earning the points for credit rating starts when an individual starts his economic life and in most cases the slate is clean. A clean slate is better than poor rating but needs to be raked with points. The points can be had by painfully getting it through years of full and on time payments which is really difficult.

Then there is the referral way to get points. If you are referred by an individual with considerable economic power the credit rating goes up. It works just like LinkedIn endorsement. It helps to get loans quick and easy. So find out your referral soon.

Payday Loans

Payday Loans

A new type of instant personal loan that you can get instantly is called payday loan. It is different from normal loans. The process is quick without much delay. The product is made for filling in the cash crunch for a very short time.

What is the requirement for getting the Loan?

The minimum requirements for getting the loan are:

  1. Minimum Age limit – There is a lower age limit for payday loans. The applicant should me at least 18 years old to apply.
  2. Income source– You would have to write about the pay check details in the loan application form. Income details are essential part of requirements.
  3. Bank Account Linking – You need to have a bank account and the money goes in it. This is good as you will get the money quickly and the bank can know that you are a genuine customer.

Instant Approval

It is just a matter of a couple of hours after loan approval. There is the option of taking the loan directly by applying online and skipping the brokers. This will help you get instant approval. The moment you apply online with credentials you will get a call and if everything is in order the approval comes within 24 hours. A great way to fill your Cash gaps, isn’t it? Ferratum is one company that pays you in 24 hours straight.

But a  loan is debt and hence disciple is required. paying back on time will help your credit scores and also keep you debt free. Take loans which you can pay easily without much strain on you next pay check.

My First day learning about loans and more…

First Day in Office

I still vividly remember my first day in office. I was excited to come as I would become a bread-winner for my family. But as soon as I entered through the door all my excitement evaporated and panic took its place. I was shown to a computer and told that this would be my work station. I sat on the chair and did not what to do. All other people were working in spite of the day just starting. I was really nervous.

Then came the Angel of my life. Well I did not tell you that it was Emily who helped me get through my jitters. She sat besides me and calmed me down. I slowly relaxed and my mind started working. She told me about the paper work required to get a loan passed. Then she told me that Loans were of four types (1) Mortgage (2) Vehicle (3) personal and (4) Business. All things she told I could remember very well. She was my mentor, and quite a good one. She sat besides me for 3 hours and guided me through the learning on the first day. She is the mother of my child now and still works with me at the bank. This is my story about the first day at my office which gave me the best thing in my life – My wife.