Types of Loan (part 2)

In this post, I will tell you more about the kinds of loan, and most of banks have the own service or loan programs for their customers, but here I just tell you some of most popular loans.

Gold Loan

This loan is known as with Silent Features:
  • It is easy and quick Loan against the Security of Gold Ornaments
  • It is easy Liquidity
  • And it is Safety of the Ornaments, Under the Safe Custody of the Bank
This loans is provided the Emergency requirement for Personal and Ceremonial use and the Period of Term loan is1 year with the Interest Rate is 11%.

Postal Certificate (N.S.C. Loan)

It is for Personal and Business Purpose with the Rate Of Interest is 11% and Period of loan is till the Maturity Date of Certificates. To Security for Postal Certificates (Banks lien to be noted on the Postal certificates Pledged with Bank at the Post Office from where it is purchased). All Loans are subject to discretion of the Bank & subject to conditions stipulated by Bank. Interest Rate are subject to change without notice.

Vehicle Loan


Personal Vehicle Loan

The target Group is Salaried Person working in reputed companies, firms, ofessionals and Businessmen with the Purpose is purchase of 2 wheelers, Car for own use and the maximum Loan Amount is 85 % of Vehicle Quotation (inclusive of Basic cost+ duties, tax & Insurance)
The Period of loan is often 5 years with Interest Rate is around 12%

Commercial Vehicle Loan

The Purpose of this loan is Purchasing of taxi, Rickshaw, Cars and others 4 wheeler Vehicle for Transport Purpose. Maximum Loan Amount is 85 % of Vehicle Quotation (inclusive of Basic cost+ duties, tax & Insurance)with Period of loan is 5 years and the Interest Rate is 14%. To Security you need to noticed that: Hypothetical of Vehicle with Regional transport Office and 2 Guarantors. Penal Interest 2% for the Defaulted Amount for the Defaulted Period, Prepayment Penalty Nil

Fixed Deposit Loan

This loan has many advantages and i think it is really important for you when you are wondering if choosing this loan or not:
  • Easy & Quick Loan against the Security of own Fixed Deposit Receipts
  • Easy Liquidity
  • Fixed Deposit receipt to be discharged and submitted to the bank
  • Maximum Loan amount 90% of Fixed Deposit Amount
  • Interest is charged the rate of 2 % above the fixed deposit Interest Rate
  • Interest is charged Monthly, Amount to be repaid at will & If a borrower is unable to pay the loan the Maturity amount of Fixed Deposit is transferred to his Fixed Deposit loan Account
  • Interest on Fixed deposit is directly credited to the Fixed Deposit Loan Account
  • Period of loan is till the maturity of Fixed Deposit Receipt
  • Interest is charged monthly
In 2 posts, I will show you some types of loan, they are very popular now and I think you can choose one is the best for you. Good Luck!!

Types of Loan (part 1)

Housing Loan

This type of loan is for Individual or Individual jointly with Spouse (Group of Individual not permitted) to get the loan with purposes are purchasing a new or old house or flat which is the borrower want to have. And when the borrowers apply for this loan, they can use n construction of new house or flat for own use. Besides, this loan is also used in taking over of housing loan from other bank's and reputed housing finance companies

You can apply this loan with period of loan is 10 years or 15 years with the interest rate around 12%. Actually, the interest rate is always fluctuating with the moving of market.

To make the security for loan, you need to register mortgage of house or flat with 2 guarantors.

And next type of loans is House Repair

It is used in Renovation and Repairs of House or Flat. And I will show you some information about this loan. Its Period of loan is : 5 year, 7 years with the Interest Rate is around 13%. You also need to Register mortgage of House or Flat with 2 Guarantors.

Next is Business Loan


The Purpose is Acquisition of Factory Shed or Industrial Gala, Plant Machinery , Equipments, Furniture and Fixtures etc and Cash Credit Loan for Purchase of Raw Material and Working Capital requirement. But you need to concern about the Documents Required. It includes: Balance Sheet, Profit and loss for the last 3 Financial Years, Income Tax returns, Purchase orders, And the Period of Term loan is often 5 years. But in this loan, you need to register Mortgage of Building ,Shed, Shop and Machinery with 2 Guarantors

In the next type of loans is Group Loan Scheme

I will show you the differences in this loan. The Special Feature is Minimum 3 Permanent employees of Public and private LTD company Bluechip Companies and Reputed institutions can avail this facility
. This loan will help for meeting personal or family finance requirement including Purchase of household articles or electronics or computer equipments,Marriage ceremonies and Expenses for Medical treatment...It requires the necessary paper is:
  • Salary slip for last 3 months,
  • Company Undertaking
And the period of this loan is often 5 years or 7 years with the rate of Interest is 11 %.

Basic Steps To Get a Loan

There are many steps to apply for a loan, but now I will show you the basic steps and you will have more understanding about the loan process and you will be easier to success in this process.

At first, you need to get the Mortgage Grade:

It includes your Basic Information, they will give you a form and you have to fill exactly and all of their requirement. After that is getting Mortgage Qualification Results, in this part, you must to read carefully

The second is Getting Guidance:

In this step, you will be noticed to the most important concern about the Rate Trends and Current Rates, from that you can have your own comparation and choose the most suitable interest rate which you think it is the best for you. But you might be qualified or not qualified with the loan that you choose, in this case, the home account will help you what you have to do to be accepted for the loan you want:
  • Qualified: Home Account will guide you to the best loan program
  • Not yet qualified: Home Account will provide financial exercises to get you qualified
Next step is Getting Loan:

When you chose a loan already, you will be guided to select a loan program and the more important is choosing the lender who will let you borrow their money. And when you are finish, the home account will walk you through the closing your loan.

Here you are, you had enough information about getting a loan . And I hope, this post will be very useful for you...

Mortgage Calculators

Mortgage calculators:
  • They are an available way to determine how much house a customer can afford?
  • How much a monthly payment will be?
  • And the amount of interest saved by financing for 15 as opposed to 30 years.
For a business, using mortgage calculators as part of the business plan when they are expected expenses to potential investors.

Mortgage professionals:

They have a variety of financial calculators available, and the businessman can use them to provide information to your potential customers and you increase satisfaction as well as the likelihood of closing a loan.
  • The main purposes of using a mortgage rate calculator:
  • Showing prospective borrowers a variety of loan options, it includes fixed and adjustable rate scenarios.
  • Printing an amortization table to show for the borrower the amount of each monthly payment which goes to the principle and how much to the interest.
  • Showing the borrower the maximum amount they can borrow, and their monthly payment for that amount.
Mortgage calculators can be used to calculate:
  • The interest on mortgages,
  • Monthly mortgage payments
  • Other important information about mortgage payment options.
They are important tools for mortgage companies and you should use them when your clients apply for a mortgage or refinance their current mortgage. By using mortgage calculators, you can show your clients exactly what they'll be dealing with when they are buying or refinancing their home. Using mortgage calculators will help you put these numbers together for your clients.

Steps in Calculating the mortgage loan rate:
  • Use mortgage loan calculators to calculate mortgage payments
  • Find interest rates using a mortgage rate calculator
  • Calculate monthly mortgage payments using a loan payment calculator

Benefits of Debt consolidation

The action of combining several loans or liabilities into one loan. Put another way, debt consolidation is the process of taking out a new loan to pay off a number of other debts. Most people who consolidate their debt are usually doing it to attain a lower interest rate, or the simplicity of a single loan. Also known as a "consolidation loan".
( www.answers.com)


When you are a home owner, you will have many advantages, It is not the least of which is that the value of your home could be used to finance future purchases. Whether you want to take a dream vacation, and pay for your college tuition or take advantage of debt consolidation, home equity loans may be an option.

Now, I will tell you some benefits of Debt Consolidation, I think they are really helpful for you when you want to apply for a debt:

At first, you need to discovery about the Interested in debt consolidation and Home equity loans which can ease for your financial obligations by giving you the option of just one low mortgage rate.
  • Consolidating your high interest credit card debt, car loan or student loan payments into one fixed-rate home equity loan.
  • Saving hundreds or even thousands of dollars in annual interest with a home equity loan.
  • Your mortgage interest may be tax deductible unlike your revolving debt interest.
  • Get instant cash when you refinance with a fixed-rate loan.
Home equity lines of credit:
It acts like a credit card and you only pay interest on the outstanding balance, and your interest is tax deductible.


Leveraging the equity in your home and getting immediate cash in your pocket. With the cash you'll get from your home equity loan, you could purchase a new car, fix up your home to increase the value of your home, or take a much-needed vacation! Good luck to you.


Current Prime Rate

The current prime rate

It is known as the interest banks which are charged for borrowing from one another. The prime rate is established by the Federal Reserve. It is the bank that controls the flow of money and cash for all other banks and consumers and it is heavily tied to the governmental demands and national policy. However, it is not controlled by the government entirely and it can establish its own policies on how best to manage the interest rate. It is affected by many factors and these are 5 key factors:

  • Inflation
It is a major factor of the Fed considers when determining the prime interest rate. A lower interest rate is supposed to help curb inflation. And the reasoning behind this is fairly simple- it is explained that : When banks charge high interest rates, the cost of a loan goes up over time and the Costs going up over time are, at heart, what inflation truly is. Keeping costs low over time with low interest rates is one way to control how high prices adjust. Inflation is the biggest threat during a recession, and this is when the Fed generally lowers the prime rate.
  • Default Rates
A high amount of default on loans across the country may result in a lower interest rate on the federal level. Example : If home mortgage defaults are high, then mortgage lenders will risk going out of business if they have to repay their loans at high interest rates. To keep these lenders healthy, the Fed will offer them cheaper loans. The Fed aims to make it possible for lenders with good business practices to stay afloat, especially during a recession.
  • Credit Market Health
As default rates go up, lenders will start to pull back from the market. They will offer less loans to consumers. Businesses and households will stop making large purchases without the financing, and the economy will stoop into recession. In order to prevent this, the Fed attempts to encourage lending by making it very cheap for institutions. In the worst recessions, the prime rate will approach zero. This happens when the Fed agrees to make no profit at all on its own loans in order to keep other lenders active and profitable.
  • Government Incentives
The Federal Reserve is highly tied to national policy. When the country as a whole decides it is time to encourage spending and lending, the Fed will generally follow. The only way the Fed can truly encourage lending with its limited scope of powers is to lower the interest rate. It is possible for the chairperson of the Fed to disagree with policy and take other steps, but this does not usually occur.
  • Financial Institution Solvency
The worst recessions threaten the solvency of banks and lenders. At that point, lenders may start going out of business. This is bad for the general health of the economy because most business and households, including the federal government itself, rely on debt to expand and get through points of low cash flow. It is in the best interest of the country to keep financial institutions healthy as they are the backbone of the economy. The Fed will lower interest rates when the current economy is threatening the health of banks and lenders.

You can read more at site:
www.loan.com

Term of Mortgage Loan

The term of a mortgage is the length of time for which certain factors, such as the interest rate you pay, are set when you negotiate a mortgage.

Terms usually last anywhere from six months to 25 years. At the end of the term, you either pay off your mortgage or renew it. If you renew, you can negotiate terms and conditions again.

Generally, the longer the term of the mortgage, the higher the interest rate. The term of a mortgage is not the amortization period.

The amortization period is the time period over which the entire debt will be repaid. Most mortgages are amortized over 15-, 20- or 25-year periods. The longer the amortization the lower your scheduled mortgage payments. But you pay more interest over a longer amortization.

For example, for a $100,000 mortgage at 10 per cent interest with a 25-year amortization period and a monthly payment of $895, you will pay $168,500 interest. If you amortize over 10 years for the same amount at the same interest you pay only about $57,000 interest. But your monthly payment is much higher—about $1,311.

You want to pay the least-possible amount of interest on a mortgage. Here are some ways to reduce the amount of interest you pay:
  • Make a larger down payment.
  • Make lump sum principal payments, or prepayments (paying principal before it would be paid under the regular payment) from time to time in addition to the regular principal and interest payments.
Closed mortgages usually have a penalty for prepayments. Open and variable rate mortgages allow prepayments. If you are negotiating a mortgage take-back from the vendor, negotiate for prepayments without notice or bonus.

The faster you pay off your mortgage, the less interest you will pay, and the sooner you will enjoy the security of a mortgage-free home.
  • Arrange a mortgage with a shorter amortization period—higher regular level payments so that the mortgage is paid off sooner.
  • Arrange a mortgage with more frequent regular payments, such as every two weeks or weekly, instead of monthly.
Some other options to consider:

This allows someone who buys your home from you to take over (or assume) your remaining mortgage. It is attractive if interest rates are higher when you sell than when you bought because an assumable mortgage then increases the value of your home.
  • Portability this means you can carry your mortgage with you to the next home you buy.
  • Expandability this lets you increase the amount of the mortgage (for whatever reason) at the same interest rate, which is probably lower than the rate for a second mortgage.
You may read more at site to have more information:
www.ottawaliving.ca

Types of Mortgage

There are many types of mortgage. And now, i will show you some of them
  • A split or multi-rate mortgage:
It allows you to arrange part of your mortgage at one rate and term and another part at a different rate and term. The advantage is that you are getting at least one portion at a fixed rate, if you don’t qualify for the whole amount at that rate. It also means you can pay off the mortgage in chunks. In Canada, mortgage interest rates can be fixed, variable or protected (or capped) variable. A fixed rate does not change during the life of the mortgage.
  • An open mortgage:
It is a mortgage you can repay in part or in full at any time without penalty. Generally, interest rates are higher with this type of mortgage, but it makes sense if you plan to sell your home soon. An open mortgage can also be good for a short period of time when interest rates are high, giving you the option to lock into a longer term when the rates fall, or if rates start rising even higher. To take advantage of an open mortgage you have to be able to make payments from time to time additional to your regular mortgage payments.
  • A closed mortgage:
It usually offers the lowest interest rate available but is not flexible. A closed mortgage does not allow prepayments or lump sum payments, or allows them only upon payment of penalties. Some closed mortgages allow limited additional repayments of principal, for example, once a year. Make sure you understand exactly what is allowed and at what additional cost, and how much, if any, notice must be given for each such prepayment.
  • The term of a mortgage:
It is the length of time for which certain factors, such as the interest rate you pay, are set when you negotiate a mortgage.

Terms usually last anywhere from six months to 25 years. At the end of the term, you either pay off your mortgage or renew it. If you renew, you can negotiate terms and conditions again.

Generally, the longer the term of the mortgage, the higher the interest rate. The term of a mortgage is not the amortization period
  • A variable rate changes:
It is as the prevailing market rate changes. Usually, your monthly payment to the lender stays the same. But the amount that goes to the principal and the amount that goes to interest change as the interest rate changes.

The protected (or capped) variable rate sets a limit on how high your interest rate will rise. Lenders usually charge a premium for a capped variable rate.

You may read more at site to have more information:
www.ottawaliving.ca

Mortgage Workpaper

To apply for a loan, you will have to provide the lender with detailed documentation of your financial history. And the lender will request a credit report from a credit agency and will verify the information provided in your loan application. There are some types of document what you need to prepare :
  • Signed Mortgage Application; Including Disclosures
  • Mortgage Application Fee
  • Most Recent 30 days of Pay Stubs for All Employers
  • 2 Most Recent Years W2s and tax return may be requested.
  • Most Recent 2 Months Bank Statements (DOCUMENTING PROOF OF 2-6 MONTHS RESERVES, OR FUNDS FOR DOWN PAYMENT WHICHEVER IS REQUIRED BY UNDERWRITING)
  • Homeowners Insurance Declaration Page and Insurance Agent Name and number
  • MONTHLY STATEMENTS FOR ANY and LOANS ALL LOANS BEING PAID OFF
  • All Asset Information to Support Application ( Retirement Accounts, Saving Accounts, Stocks, Bonds, IRAs) Only If you are putting money down from these accounts, or if you are using any of these accounts to qualify.
  • Property Tax Bill- For Refinances Only
And these are the necessary documents that you want to Purchase Mortgages
  • Real Estate Agent Name and Telephone Number & Email Address- All Contact Information
  • Signed (BY BOTH PARTIES!!!) Purchase and Sale Agreement ( NO RATE LOCK WITHOUT THIS DOCUMENT)
  • Copy of ALL Checks Cleared for PROOF of DEPOSIT- Bank Statements May be Necessary
And another documents is for Self Employed Borrowers
  • Last 2 Years Tax Returns ALL PAGES-Documenting Proof of Income
  • Business License Showing 2 Years Employment or CPA Letter
Miscellaneous Items that may be Necessary
  • Alimony/Child Support Documents
  • Copy of Pension Award Letter/Statement- That States Terms and Duration of Payments
  • Copy of Disability Award Letter/Statement- That States Terms & Duration of Payments
  • Bankruptcy Discharge Documents
  • Separation Agreement
  • Divorce Decree
IF YOU HAVE STUDENT LOANS IN DEFERMENT OR COSIGNED- THEN WE WILL NEED A LETTER AND OR MONTHLY STATEMENT THAT STATES THAT, or original loan documents
  • Letter of Explanation for any Derogatory Credit
  • Letter of Explanation for any Credit Inquiries over the past 90 Days.

MBA Outline

The internationally recognized MBA qualification is designed for practicing managers aspiring to higher positions. The emphasis is on strategic analysis, interdisciplinary skills, intellectual stimulation and independent judgment. Within the broad framework of organizations, their external context and management, you will learn to use the knowledge to analyze, synthesis and evaluate a wide range of situations. Among these will be economic, environmental, social and technological change issues, corporate governance, markets and customers, managing resources and operations, financing organizations, management and development of people, developing information technologies for application in business and management within a global knowledge-based economy, and development of appropriate business policies and strategies within a changing context to meet stakeholder interests. The courses comprising the MBA are challenging. They assume that you already have some experiential knowledge acquired from managerial work.

There are many universities which have full time and part time MBA for you to chose and these tables are restricted to full-time study programmes, many students on which seek employment after they complete.

If you are particularly interested in public services and governmental organizations, you may wish to consider our Master of Public Administration (F44). Having said that, the MBA has been completed by many people with such interests. Other alternatives to this general MBA are our MBA (Technology Management) (F03) and MBA (Life Sciences) (F38).

The MBA qualification is in two stages. You must expect to successfully complete Stage 1 before you enrol on Stage 2.

Stage 1

There are three routes through Stage 1.
  • Route 1 – if you already have a bachelors level qualification
To follow this route, you must have at least a bachelors level qualification from a recognized university or the equivalent. Further details are set out under Approved Minimum Entry Requirements below. If you are eligible for this route, you can complete Stage 1 either by taking the Postgraduate Certificate in Business Administration course, Fundamentals of senior management (B713) or, if your qualification is in the business studies area, you can study the Professional Diploma in Management course Managing performance and change (B700) (see under Approved Minimum Entry Requirements below for more about which course you are eligible for given your qualifications). Both B713 and B700 involve, on average, 600 hours of study over 12 months.

  • Route 2 – if you already hold the Professional Diploma in Management

If you have our Professional Diploma in Management (D64) you can count this as Stage 1 of the MBA. There is a 10 year maximum period within which all study towards the MBA must be completed; if you graduated from the Diploma some years ago, contact the Student Registration and Enquirer Service.
  • Route 3 – if you are experienced in managerial work
If you are experienced in managerial work but not eligible for Route 1 or 2, you can take our Professional Certificate in Management (C31), prior to entering Stage 1. When you complete that certificate, you are then eligible to study our Professional Diploma in Management (D64) as Stage 1 of the MBA. The Certificate followed by the Diploma will take two years.

Your first Stage 2 course must normally be Strategy (B820) . Once you have completed B820 you are then able to continue with the rest of Stage 2.

You can read more at website: www3.open.ac.uk/study/postgraduate/qualification/f02.htm


Benefits of Entirement Plan

Each people who are going to retire in the near time in the future. They often think for themselves a plan to make everything is suitable and assets in qualified retirement plans may represent a large portion of their total assets and be an important factor in planning testamentary gifts.

Social protection is known to be a major problem of retirement plan which implemented a comprehensive social program, under which it contracted out retirement benefits for its employees. To this end, it created a retirement fund and professional retirement benefits are standard for all of the enterprise’s employees. Corporate retirement benefits are comprised of the employer’s allocations and its employees’ voluntary contributions.

The government regulates the investment policy of such retirement funds. While those funds can only be invested in bank instruments, companies choose their management companies. Reserves accumulated in a retirement benefit fund are then typically transferred to the management company at a guaranteed rate of return (unlike the state-owned retirement benefit plan).

The retirement benefit plan is based on the main provisions of the National Retirement Benefit Reform that envisages, in particular, the promotion of long-term pension savings. This retirement benefit system will be adopted as a corporate standard.

Your retirement plan depends on the type of appointment you hold. If you hold a staff appointment, you need to know whether your position is professional staff, or classified staff. If you are unsure of your appointment type, ask your supervisor, or your department's administrator or payroll coordinator.