IMPORTANCE OF CIBIL SCORE FOR PERSONAL LENDING

Goals are important in one’s life, and the completion of these goals is the most important task. A goal can be a short-term like going on a holiday, or it can be a long-term goal like abroad studies or higher studies. Such important goals need proper funding. And to provide them financial help we have loans such as education loan, and loan against property. But before the financial organizations grant you a loan they need to check your CIBIL score. One can gain the trust of the potential lenders with a high CIBIL score while the low score is not worth their trust.

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With a high score, you can easily have an advantage over your lender and the processing time of your application can be minimized while on the other hand, a low score can have slow processing. Even a high CIBIL score can give them a privilege over the lenders to negotiate for a low rate of interest. High CIBIL score benefits you when it comes to the loan amount, and a high score means a high amount and a low score means a low amount. Generally, the CIBIL score is between 300 to 900. A score equal to 750 or higher is good enough for faster processing of your application.

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When Does Your Home Loan Tax Deduction Get Revoked

A number of Sections under the Income Tax Act, 1991 falls under the category where one can claim deductions. For instance, the deduction claimed under the heads of investments or expenses that are incurred during that particular financial year.

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These home loan tax deductions help in decreasing the tax liability of an individual and by reducing their taxable income. But you must pay attention to the lock-in periods to such deductions. Otherwise, the amount of deduction claimed can further be revoked.

Let’s take a look at what are the home loan tax deductions? What are the heads under which one can claim such deductions? What are the lock-in periods?

Read- When Does Your Home Loan Tax Deduction Get Revoked

Tax Benefit on Home Loan – Tips to Reduce Tax Liability

Owning a house is not just a mere dream now. The Government is providing various opportunities and facilities to help fulfill the dreams of individuals to buy their own house. That is a home loan.

While an individual takes a home loan, he/she gets additional tax deduction benefit from the Government. These facilities are provided by the Government to motivate individuals to purchase a house.

Individuals must have a thorough knowledge of home loan and the deductions attached with it and make full use of it. What are the deductions available under the Income Tax Act, 1961? What are the different heads under which deductions can be claimed in relation to the home loan taken?

Also Read:- Tax Benefit on Home Loan – Tips to Reduce Tax Liability

How to use Mortgage Loan for StartUP.

Nowadays, startup or new ventures are increasing at a larger pace. It may be the case, you do not have a sufficient amount of funds with you to grow up your business initially. In such a case, you may apply for a loan against the property if you have any idle property lying without to take a loan. The loan will help you to meet all your business requirements. Basically, a loan against property is a kind of a personal loan which can be availed against either industrial, commercial or residential property. You can use this loan to fund up your newly started business in a number of ways like:

1) Firstly, you need to decide how much loan amount do you exactly require to grow your startup

2) Secondly, get your property valued against you will be sanctioned a loan by your lender

3) Evaluate your eligibility first to know whether you are eligible for a loan or not by checking all the requirements set by the lender

4) Ensure that you have with you all the documents which your lender may ask you at the time of sanctioning a loan to you

5) Always check your affordability for the loan to know whether you will be able to service the loan EMIS well on time or not by using eligibility calculator online

Read- How to Use Loan Against Property For Startup

10 Things you must know about EPF!

The contribution towards EPF is one of the best options for the salaried class individual in order to inculcate the habit of savings among them. In this way, you can build a large amount of corpus until your retirement that will help you to meet your financial need over the long term.

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It is always advisable to invest in the EPF scheme as it immensely helps one to meet the retirement goal when you are employed and you are planning to save a huge amount. Savings invested in EPF are quite useful when you are running short of funds. EPF offers a host of benefits which most of us are unaware of like we also get the insurance benefits along with some other additional benefits which help an individual to meet any special occasion such as marriage, education, purchase a new house, meeting any medical emergency and many more.

The above-mentioned information will help one to clear their doubts regarding EPF so that they may be able to make a better and informed decision at the time of making an investment in EPF account to give themselves better security.       

Additional- EPFO – 10 Things You Must Know About EPF!

Loan Against Property vs. Education Loan

After looking at the current employment status, maximum students tend to deviate towards higher studies or abroad options. But funding of these options is costly. So, people generally take education loan or loan against the property to finance their studies. Education loan is in high demand and is offered by many organizations and banks.

But the question comes which is the best?

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On comparing both of the options on various grounds, the loan against property is the best. For instance, the repayment tenure for the loan against property is around 2-20 years, but for the education loan, it is 5-6 years which is very short. And due to the shortage of time, the EMIs are comparatively high. The second benefit is of the high amount, education loan when offered can give around 7-8 Lakhs, but loan against property offers you about 20-25 Lakhs which is a high amount.

Read:- Loan Against Property vs. Education Loan: Which one is better?

If the amount for the education loan exceeds 7.5 Lakhs, then the individual requires collateral, but this is not the case in loan against property. But if there is the case for a person that it is not possible to mortgage a property then for them the education loan is the best.

 

TOP-UP LOAN: BEWARE OF TRAPS

Banks offer a facility to avail a loan in addition to the borrower’s existing Home Loan. These are known as top-up loans. Bank representatives by their smooth words influence the borrowers to avail these offers.

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But there are traps attached to these offers that the borrower should be aware of. Borrowers should not avail a loan top-up offer without taking into consideration the aftermaths of the same and should not get carried away by an offer that sounds attractive without any analysis.

Bank representatives call their prospective customers with lucrative offers and with better interest rates. The borrower may feel that these are a genuine and viable financial option. But the borrower must thoroughly examine these offers as sometimes the cost may exceed the savings of the borrower that any other bank offers him/her.   

Do a thorough analysis before taking up top-up loans without it the customer will further

Read:- TOP-UP LOAN: BEWARE OF THESE TRAPS

increase the amount of financial pressure upon him/her without any reasonable ground.