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.

Loan Against Property.jpg

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.

Read-

Advertisements

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.

Image result for TOP-UP LOAN: BEWARE OF TRAPS

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.

Step by Step Employee Provident Fund Withdrawal

The cumbersome process of EPF withdrawal has now become fas easier and a matter of days.

Some key benefits for this are:

a) Reduced time to file an application and its processing.

b) Reduced errors, as the information is entered by the employee.

c) The headache of getting employer approval is on EPFO.

Some key points to remember are:

a) UAN is mandatory for all EPF members as it acts as an umbrella account.

b) Aadhar linking is also mandatory with EPF account, bank account to ensure transparency.

The form is required to be submitted physically in the office.

Some key benefits for this are:

Image result for EPf

a) Reduced time to file an application and its processing.

b) Reduced errors, as the information is entered by the employee.

c) The headache of getting employer approval is on EPFO.

Some key points to remember are:

a) UAN is mandatory for all EPF members as it acts as an umbrella account.

b) Aadhar linking is also mandatory with EPF account, bank account to ensure transparency.

Steps for Online EPF withdrawal are:

a) Firstly, ensure that your UAN and LYC details are verified as it is mandatory to access new forms. In case they are not updated then log in to EPF portal and update KYC information.

b) Check which form is applicable in your situation. Form 19 is required in case of withdrawal after retirement and leaving the job. For partial withdrawal as per EPF provisions, Form 31 is applicable.

c) the filled form needs to be sent to the appropriate EPF office in which your account is opened. You can use the EPF office locator option to find the right EPF office for you.

The form is required to be submitted physically in the office.

READ:- Step by Step EPF Withdrawal Guidline

All EPF Related Question & Answers

EPF is considered to be one of the safest alternatives to investment when are about to get retired. It is a scheme that provides benefit to the old age individuals as it is typically a retirement benefits scheme which is available to all the salaried employees and is managed and controlled solely by the retirement fund body, Employees Provident Fund Organisation of India (EPFO).

Image result for All EPF Related Question & Answers

Any organization having more than 20 employees, has to register with EPF and also has to make mandatory contributions in EPF account is an employee earns a minimum of Rs. 65,00 per month. And the individual who earns more than Rs. 6,500 per month is not required to make necessary contributions in the EPF account. One should be well versed with all the technical details about EPF and what benefit it offers to you when you start making a contribution in EPF accounts.

The above-mentioned information will help the EPF subscribers to know about the technical know-how related to EPF so that they may be able to make a better and informed decision.         

Source:- All EPF Related Question Answered

Mortgage Loan Vs Unsecured Loan: which one to use

With the availability of a plethora of loan options today to help individuals to meet their general and personal requirements, one may choose a loan against property as compared to any unsecured loans like personal loans and business loans. This is because they carry a higher rate of interest which may cost you so much and availing a Loan Against Property would be more beneficial as it has a lower rate of interest and also it takes very less processing time to get your loan approved.  

Image result for Mortgage Loan Vs Unsecured Loan: which one to use

However, when you are about to finalize your decision between the two of them, you should be aware of the quantum of finance you would require, this will help you to choose the most favorable option. With the basic differences mentioned above, one might assess which option is more beneficial to you and why? Based upon your requirement and your current financial situation either of the loan types could be advantageous. But, you need to check each and everything related to your loan before you make any decision. You should check your eligibility first and also your repayment capacity as of now. A loan against property or LAP is a preferred option in case you want good terms, a lower rate of interest, longer tenure and high loan amount as compared to any unsecured loans.             

        

Tax Benefits On Your Home Loan Emi

In India, everyone from each section of the country desires to own a house of his/her own. But because of some reason or the other are not able to do so. The Indian Government is trying its best to motivate people to purchase their own house or construct one with schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY).

There are many benefits which an individual can claim while taking a home loan. The authorities under whom individuals are entitled to these claims as and when the requirements are fulfilled are also stated. You can enjoy various deductions such as:

  • Deduction for first-time buyers
  • Deduction for a joint home loan,
  • Deduction for interest paid on housing loan
  • Deduction in respect of interest paid towards home loan during pre-construction period
  • Deduction for stamp duty and registration charges
  • Deduction on principal repayment

There are multiple deductions and savings which you can avail through home loan so to earn those benefits be very cautious while applying for it.

Related:-Tax Benefits On Your Home Loan Emi That You Need To Know About

Important Question ask before Applying For Loan Against Property

People in India stress over the value of the property owned. Everyone wants to earn from the property either by providing it for rental purposes or by selling it off at a higher rate than the purchase rate.

When in need of funds people tend to take personal loans which have a higher rate of interest and EMIs with shorter repayment period, and it tends to increase the chances of non-repayment of the loan. But on the other hand, there is a Loan Against Property.

Before opting for a loan against property, you should consider asking following questions such as type of property that can be used, eligibility criteria to get loan, loan amount that can be availed against that property, documents needed, repayment options, time for the loan approval and so on. Always ask these questions first before applying for a property loan.

Additional Reading:- Important Question To Asked For Applying For Loan Against Property