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Casual Articles - Loan Guide - Tips To Help You, Before Availing A Loan
We all know a web site cannot be successful without quality links pointing to it. Unfortunately there are many people that have learned black hat techniques that will hurt your site if you link to theirs. I am sure you have heard of ‘Link Farms’; these are web sites that are created solely for the purpose of tricking the search engines into high rankings. This type of technique has become uncovered by all of the major SE’s but there are still those who choose to test them. It is very important to avoid these types of sites as they will not only do you no good they will most likely hurt your SE rankings.There are also link-building programs that anyone can join and exchange reciprocal links with one another. These programs are usually built with very good intentions and if used correctly could be very beneficial to everyone involved. Unfortunately many that take part in these programs find ways to take advantage so you must b
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective.
Leaving a job is often a difficult step. Sure, there is the exciting opportunity to do something different, but if have been with an employer for over a year this can become an emotional step. People leave jobs for various reasons. The old job might just plain and simple suck. The pay is lousy and the boss is behaving like a dictator of a 3rd world country. Or the job might be target of outsourcing and the employee is pro-active by looking for his/her own way out. Or the job is a dead end. No opportunity and the daily routine is boring. It could also be that the immediate co-workers and managers are just not as nice and that there is no great work relationship that makes the employee to love to go to work. A not so exciting job can still be a great place to work if you have great co-workers and managers around. Work is about money, but the socializing part is important, too.We're not trying to get into the reasons for leavin
So if you are planning to avail a Home Loan, Student Loan or Study Loan, Mortgage Loan, Home Equity Loan, Pay Day Loan, Vehicle Loan or Conveyance Loan etc., here are certain vital tips for you.
THE COST OF A LOAN CONSISTS OF TWO PARTS:
(A) HIDDEN COSTS (B) INTEREST COST
A) HIDDEN COSTS:
These are the costs about which the representatives of the banks/finance companies are generally silent at the time of selling their product (i.e. loan). But these costs are very much written in the finer prints of the contract you sign with lender. So, it is wise to go through the entire content of documents you are going to sign for availing a loan. Believe me, there will be many points on which you will like to have clarifications from the lenders.
HIDDEN COST CONSISTS OF THE FOLLOWING THINGS:
1. UPFRONT INSTALMENTS:
Some finance companies take certain installments on the first day of the disbursal of the loan. Suppose you have availed a loan of $10,000 and your EMI (Equated Monthly Installment) has been fixed at $410 per month. Now the lender wants you to deposit, say 5 installments in advance. It means you will deposit $2,050 as upfront installments. In this case the finance company has financed you actually $7,950 ($10,000 - $2,050) but the amount of loan on which you are paying interest will be $10,000. The principal amount from your angle is $7,950 but the lender is charging interest on $10,000. So negotiate with the company for not paying any upfront installments.
2. PROCESSING FEE:
Processing fee is the fee charged from the borrower for preparation of documents. Processing fee is generally negotiable and certain companies waive off the entire fee on negotiation. The companies generally reduce the fee if do not waive off the entire fee. So try your best to negotiate on this front before agreeing to avail the loan. It will save you a handsome money.
3. CHECK BOUNCING CHARGES/LATE EMI CHARGES:
If you are not able to pay the monthly installment on time or the checks given by you for repayment of the loan have bounced due to certain reason, the lender will charge a penalty from you. Different companies charge different penalty in such cases. Check out with the competing companies and fix this condition accordingly. If not settled before hand, you will have to shell out as per the terms written in the contract which may be exorbitantly high.
4. FORECLOSURE PENALTY:
Foreclosure means paying back the entire loan before the agreed period. Suppose you have availed a loan and undergone an agreement with the lender to pay off the entire money in 24 equal monthly installments. After 10 months you have got some money from somewhere and now you want to pay off the entire loan to the lender. This is a case of foreclosure. The lender will charge certain percentage on the remaining principal. This is called foreclosure penalty. Certain lenders don't let to pay off the entire money before a fixed period, say you will not be allowed to opt for foreclosure during first 6 months and after that you may pay off the loan that too with foreclosure penalty. The foreclosure clause should be clearly understood and settled with the finance company well in advance. After reviewing your financial credibility, the financer can alter/delete this clause to your benefit. So, do negotiate on this point.
INTEREST COST:
Interest cost is the main cost of the loan availed. Here are given some finer points to be learned about the interest rate component.
INTEREST RATE IS OF TWO TYPES
1. FLAT INTEREST RATE 2. MONTHLY REDUCING INTEREST RATE
1. FLAT INTEREST RATE:-
"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.
Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.
i.e. EMI = (Principal + Interest) divided by number of months
In our example EMI comes out to be ($10,000 + $800) / 24 i.e. EMI will be $450 per month.
Looks to be very simple - Isn't so? But you have borrowed $10,000 and paying interest on $10,800 for all the 24 months.
In reality, the interest burden must reduce every month as the principal is coming down with every installment repaid by you. Here you are paying $33.33 every month ($800 divided by 24) irrespective of the principal amount.
REMEMBER, THE COST OF FLAT RATE OF INTEREST COMES OUT TO BE ALMOST DOUBLE IN COMPARISON TO THE MONTHLY REDUCING INTEREST RATE. HERE IS THE TABLE SHOWING THE COMPARISON BETWEEN THE TWO. HERE IS THE TABLE SHOWING FLAT RATE V/S EFFECTING RATE
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective.
The Emperor's New ClothesThe Emperor's New Clothes is a Danish fairy tale written by Hans Christian Andersen that was first published in 1837. It is a story about an emperor who had been swindled by two con men who declared that they could make the finest suit in the land. They promised that the cloth had a special capability that permitted it to be invisible to anyone who was either “stupid” or “not fit for his position.”All of the emperor’s subjects were afraid to tell the emperor that they could not see this unique and fine cloth, for fear of being labeled stupid. Even the emperor himself would not admit that he could not see this righteous cloth. So, the whole town denied the nakedness of the emperor, until a small boy pointed out “the emperor has no clothes.” Suddenly, everyone could see the truth that should have been so obvious just minutes earlier.The Naked MarketerTelling a child’s story might s
2. PROCESSING FEE:
Processing fee is the fee charged from the borrower for preparation of documents. Processing fee is generally negotiable and certain companies waive off the entire fee on negotiation. The companies generally reduce the fee if do not waive off the entire fee. So try your best to negotiate on this front before agreeing to avail the loan. It will save you a handsome money.
3. CHECK BOUNCING CHARGES/LATE EMI CHARGES:
If you are not able to pay the monthly installment on time or the checks given by you for repayment of the loan have bounced due to certain reason, the lender will charge a penalty from you. Different companies charge different penalty in such cases. Check out with the competing companies and fix this condition accordingly. If not settled before hand, you will have to shell out as per the terms written in the contract which may be exorbitantly high.
4. FORECLOSURE PENALTY:
Foreclosure means paying back the entire loan before the agreed period. Suppose you have availed a loan and undergone an agreement with the lender to pay off the entire money in 24 equal monthly installments. After 10 months you have got some money from somewhere and now you want to pay off the entire loan to the lender. This is a case of foreclosure. The lender will charge certain percentage on the remaining principal. This is called foreclosure penalty. Certain lenders don't let to pay off the entire money before a fixed period, say you will not be allowed to opt for foreclosure during first 6 months and after that you may pay off the loan that too with foreclosure penalty. The foreclosure clause should be clearly understood and settled with the finance company well in advance. After reviewing your financial credibility, the financer can alter/delete this clause to your benefit. So, do negotiate on this point.
INTEREST COST:
Interest cost is the main cost of the loan availed. Here are given some finer points to be learned about the interest rate component.
INTEREST RATE IS OF TWO TYPES
1. FLAT INTEREST RATE 2. MONTHLY REDUCING INTEREST RATE
1. FLAT INTEREST RATE:-
"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.
Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.
i.e. EMI = (Principal + Interest) divided by number of months
In our example EMI comes out to be ($10,000 + $800) / 24 i.e. EMI will be $450 per month.
Looks to be very simple - Isn't so? But you have borrowed $10,000 and paying interest on $10,800 for all the 24 months.
In reality, the interest burden must reduce every month as the principal is coming down with every installment repaid by you. Here you are paying $33.33 every month ($800 divided by 24) irrespective of the principal amount.
REMEMBER, THE COST OF FLAT RATE OF INTEREST COMES OUT TO BE ALMOST DOUBLE IN COMPARISON TO THE MONTHLY REDUCING INTEREST RATE. HERE IS THE TABLE SHOWING THE COMPARISON BETWEEN THE TWO. HERE IS THE TABLE SHOWING FLAT RATE V/S EFFECTING RATE
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective.
Content Management Systems and search engine optimization (SEO) used to be mutually exclusive terms. But the SEO community has been driving the developers of Content Management Systems to integrate more SEO-friendly methodology within their systems.Content Management Systems (CMS) are a hot topic right now with many corporate websites are turning to these systems to handle thousands of pages of dynamic data that they need to update regularly. Content Management Systems allow information to be added, edited or deleted automatically over the entire website. This can save hundreds of hours in manual updates. Pages of content are generated on the fly using a template driven system.When Content Management Systems were first developed, most had little regard for the requirements of search engine optimization. For some Content Management Systems this still holds true. Most CMS's, however, now have workarounds to accommodate
4. FORECLOSURE PENALTY:
Foreclosure means paying back the entire loan before the agreed period. Suppose you have availed a loan and undergone an agreement with the lender to pay off the entire money in 24 equal monthly installments. After 10 months you have got some money from somewhere and now you want to pay off the entire loan to the lender. This is a case of foreclosure. The lender will charge certain percentage on the remaining principal. This is called foreclosure penalty. Certain lenders don't let to pay off the entire money before a fixed period, say you will not be allowed to opt for foreclosure during first 6 months and after that you may pay off the loan that too with foreclosure penalty. The foreclosure clause should be clearly understood and settled with the finance company well in advance. After reviewing your financial credibility, the financer can alter/delete this clause to your benefit. So, do negotiate on this point.
INTEREST COST:
Interest cost is the main cost of the loan availed. Here are given some finer points to be learned about the interest rate component.
INTEREST RATE IS OF TWO TYPES
1. FLAT INTEREST RATE 2. MONTHLY REDUCING INTEREST RATE
1. FLAT INTEREST RATE:-
"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.
Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.
i.e. EMI = (Principal + Interest) divided by number of months
In our example EMI comes out to be ($10,000 + $800) / 24 i.e. EMI will be $450 per month.
Looks to be very simple - Isn't so? But you have borrowed $10,000 and paying interest on $10,800 for all the 24 months.
In reality, the interest burden must reduce every month as the principal is coming down with every installment repaid by you. Here you are paying $33.33 every month ($800 divided by 24) irrespective of the principal amount.
REMEMBER, THE COST OF FLAT RATE OF INTEREST COMES OUT TO BE ALMOST DOUBLE IN COMPARISON TO THE MONTHLY REDUCING INTEREST RATE. HERE IS THE TABLE SHOWING THE COMPARISON BETWEEN THE TWO. HERE IS THE TABLE SHOWING FLAT RATE V/S EFFECTING RATE
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective.
Goal 1. Acquires donorsIf your organization is typical, you lose around 15 percent of your donors each year. They simply stop responding to your appeals.Fifteen percent is average, but it’s a terrifying percentage all the same. If your organization has 10,000 active donors today, and if 15 percent stop giving this year, then you will lose 1,500 donors.This is the main reason that you need to create and manage a well-planned, annual donor acquisition program. You cannot afford to simply mail to your existing donors only. You need to replace the donors who never renew. Without a steady influx of new donors, you will be moving backwards each year, not forwards.Goal 2. Renews donorsA whopping 65 percent of donors acquired by direct mail give once and never give again. What all of this means is that the most important gift in direct mail fundraising isn’t the first gift but the second one
INTEREST RATE IS OF TWO TYPES
1. FLAT INTEREST RATE 2. MONTHLY REDUCING INTEREST RATE
1. FLAT INTEREST RATE:-
"Flat interest rate" is the rate of interest that is determined at the time of application and is fixed for the duration of the loan.
Let's illustrate it with an example. Suppose you have borrowed $10,000 @ 4% flat rate of interest for 2 years. At simple interest rate formula, the interest for 2 year comes out to be $800. Now the lender adds this $800 in the principal and calculates EMI for 2 years.
i.e. EMI = (Principal + Interest) divided by number of months
In our example EMI comes out to be ($10,000 + $800) / 24 i.e. EMI will be $450 per month.
Looks to be very simple - Isn't so? But you have borrowed $10,000 and paying interest on $10,800 for all the 24 months.
In reality, the interest burden must reduce every month as the principal is coming down with every installment repaid by you. Here you are paying $33.33 every month ($800 divided by 24) irrespective of the principal amount.
REMEMBER, THE COST OF FLAT RATE OF INTEREST COMES OUT TO BE ALMOST DOUBLE IN COMPARISON TO THE MONTHLY REDUCING INTEREST RATE. HERE IS THE TABLE SHOWING THE COMPARISON BETWEEN THE TWO. HERE IS THE TABLE SHOWING FLAT RATE V/S EFFECTING RATE
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective.
For the last century, psychologists have been studying simple persuasion tactics that can be used to motivate people and get them to take immediate action. This article gives you three persuasion strategies guaranteed to have a positive impact on your sales.1. Make Your Product Appear “In Demand” or “Hard-to-Get”.Always present yourself and your product as “limited,” “scarce,” or “in demand.” Why? People want what they can’t have. Repeatedly, persuasion researchers have shown that human beings find more value in things that they have a hard time obtaining.This is an important point for sales and marketing purposes. Car salespeople are quick to let you know that, “This is the last model like this available—after it goes, that’s it.” Newspaper and television ads tell us that the “sale ends soon,” that “supplies are limited” and that “time is running out.”When customers feel an opportunity is about to
FLAT RATE ========= EFFECTIVE RATE
2.00% ============== 3.70%
3.00% ============== 5.49%
4.00% ============== 7.29%
5.00% ============== 9.09%
6.00% ============== 10.89%
7.00% ============== 12.69%
8.00% ============== 14.49%
9.00% ============== 16.19%
10.00% ============= 17.99%
11.00% ============= 19.70%
12.00% ============= 21.50%
15.00% ============= 26.60%
18.00% ============= 31.70%
20.00% ============= 35.10%
24.00% ============= 41.70%
30.00% ============= 51.40%
This type of interest rate is prevalent in Auto Financing and Cash/Payday/Personal Loans etc. Looking at the above facts it is always advisable to go for monthly reducing interest rates. The effective cost of flat rate is quite higher than what is looks to be. For example the effective cost of 11% flat rate comes out to be 19.70 % - quite a high cost indeed!
MONTHLY REDUCING RATE:
This is the rate which is most cost effective. You should try your level best to borrow only at this rate. Under this rate, the actual amount of loan availed by you is debited to your account and interest is charged on this amount. The interest burden goes on declining with every installment paid by you as with every installment paid, the principal is coming down.
THIS RATE AGAIN HAS TWO VARIANTS
Fixed rate Floating rate
Fixed rate remains fixed throughout the loan period whereas floating rate goes on changing with the rate prevalent in the financial market. If you expect that in future interest rate will rise then you should opt for fixed rate but if you feel that in future the rate of interest will come down then you should go for floating rate of interest. To sum up it becomes evident that some knowledge about the interest rate and some home work done before buying a loan product will help us in saving us a lot of money.
For more qualitative information on LOANS & FINANCE, please logon to http://www.imdollar.com
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