Andhra Bank Personal Loans - Eligibility Criteria for Andhra Bank Personal Loan

Andhra Bank Personal Loans

Andhra Bank provides personal loans to its customers for different financial needs at very affordable rates of interest, and other benefits such as quick documentation process and reasonable repayment options. mymoneykarma gives you all the information you need on Andhra Bank personal loans.

Benefits of Andhra Bank Personal Loans

Andhra Bank personal loans are loaded with customer-friendly features. Here are a few features of Andhra Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 25,000 to a maximum of Rs 5 lakhs. The loan amount depends on the applicant's credit score, repayment capability, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Attractive interest rates ranging between 11.55% - 14% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers if the applicant is an existing customer of Andhra Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to Andhra Bank.
• Simplified loan application and approval process with minimal documentation.

Types of Andhra Bank Personal Loans

Andhra Bank offers a single type of personal loan that is acceptable for a large pool of customers ranging from freshers to senior citizens.

Eligibility Criteria for Andhra Bank Personal Loan  

Applicants must meet the following criteria to get a personal loan from Andhra Bank.

• Minimum income of Rs 1 lakh per annum.
• Sound repayment capability and a good credit score.
• An age range of 21-55 years..
  

Documents Required for Andhra Bank Personal Loans

Applicants need to submit the following documents while applying for Andhra Bank personal loan.

• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Two copies of recent passport sized photographs
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous six months,
• Bank statements of the last six months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
  

How to Apply for Andhra Bank Personal Loans Online

Applicants can apply for Andhra Bank personal loans online by visiting the Andhra Bank website, following the on-screen instructions, and uploading the required documentation on to the website. Subsequently, the applicant profiles are evaluated, and the loan amount is deposited in the applicant's account upon the approval of the loan within a few days.

How to Apply for Andhra Bank Personal Loans Offline

Customers can also directly walk into the personal loan centers of Andhra Bank along with the necessary documents. They can fill up the application form received at the bank and submit it with the documentation. The loan is approved within a few working days.

How to Apply for SBI Personal Loan? - Benefits of SBI Personal Loan

SBI Personal Loan Eligibility Calculator

With the help of SBI personal loan eligibility calculator, anyone can check if he/she is eligible for a personal loan from SBI. Moreever, there are many similar personal loan calculators available online for free to assist. The calculation is based on the following:

• Individual's income
• Monthly expenses
• Other financial liabilities (current loans/EMIs, credit card outstanding)
  

Documentations Required for SBI Personal Loan

These are the list of documents that a person needs to submit if he wants to apply for a SBI personal loan:

• Signed loan application form.
• Identity proof - PAN Card/Voter id Card/Passport/driving License.
• Processing fee cheque, if applicable.
• latest 3 months bank statement or 6 months passbook, whichever requested.
• Current pay slip & income certificate with the latest Form-16 for salaried individuals.
• Bank statement or latest ITR of Form-16 for self-employed individuals.
  

How to Apply for SBI Personal Loan?

SBI allows the choice to either go for an online application for the loan. However, one also can visit the nearest branch and complete the formalities.

SBI Personal Loan Apply Online

SBI allows you to apply for a personal loan online through its website. You can visit SBI's website and look for the personal loan section and follow the on-screen instructions to complete the application at your convenience. After submitting the form, your profile will be evaluated, and then the bank executives will get in touch with you for procedures.

SBI Personal Loan Contact Number

If a borrower has some queries associated with SBI personal loan, he/she must contact the bank on the toll-free no.: 1800 425 3800. The moment you approach them, the bank executives make sure to solve all your queries and complaints.

SBI Personal Loan Status

With the help of SBI Personal Loan online website, the applicant can take a look at the status of loan at any time. SBI allows you to check the status of your loan through an easy and quick technique. All that the consumer needs to do is simply login to the respective account and receive the status of their loan account in a few seconds.

SBI Personal Loan Application Form Download

In case you want to avail a personal loan from SBI, your first step is to fill an application form. It is mandatory for an applicant to submit the required form along with relevant documents. However, to avoid long queues inside the bank, all you need to do is download the form online. You can go to the website of SBI and download the forms. Fill the form and submit the same either online or visit the nearest branch with the application form.

About SBI Personal Loan

SBI is the 45th largest public sector bank in the world and the largest in India, with an asset value of 37 Lakh Crores and a customer base of 500 million. It is customer-friendly in all divisions, and personal loans are considered one of them. The bank understands the borrower very well.

Personal loans may be availed by salaried individuals in addition to self-employed people as well those who need to meet their unforeseen monetary requirements. A borrower can take a personal loan from SBI for reasons like wedding-related expenses, overseas journey, overseas training, health related costs or every other economic expenses.

Why choose SBI personal loan?

Personal loans are the unsecured loans which suggest that there is no collateral required to get it. Similarly, SBI personal loan is also given with no collateral. Some of the important elements that make SBI personal loan scheme specific have been mentioned below.

Attractive Rate of Interest: SBI charges one of the lowest personal loan interest rates and therefore is customer-friendly. The personal mortgage costs of SBI are on a daily recurring balance, and therefore, it guarantees maximum gain to the loan borrower.

Timely Discounted Schemes: SBI is one of the first banks to offer personal loans once in a while. There are offers during various festivals and discounts for authorities, employees, doctors and other professionals.

No Hidden costs: There aren't any hidden charges or penalties for any SBI personal loan scheme.

No Prepayment Penalty: For personal loans, SBI takes no prepayment or foreclosure fees. However, if the loan is being re-paid earlier than six months of the loan approval date, the bank charges 1% of the loan amount.

Instantaneous Loan Approval: As there is no collateral required to take a personal loan from SBI bank, the loan approval is faster and smoother.

Online Loan Approval: Nowadays, as everything is going online, people look out for online loan application. Keeping the trends in mind, SBI allows online loan applications that save the borrower’s time.
Benefits of SBI Personal Loan

The personal loan scheme of SBI has many benefits like low interest rates, low processing prices and higher loan amount, and so on.

Mentioned below are few of SBI personal loans are:

• Higher loan amount
• Low-interest costs
• Fast loan processing
• Specialised mortgage Schemes
• 24X7 customer service

PNB Personal Loans - How to Apply for PNB Personal Loans Online

PNB provides personal loans to its customers for meeting their varied financial needs at affordable rates of interest. In addition, PNB also provides hassle-free documentation process, reasonable repayment options, top-up loan facilities, and instant loan approvals. mymoneykarma gives you all the information you need on PNB personal loans.

Benefits of PNB Personal Loans

PNB personal loans are loaded with customer-friendly benefits and features. Here are a few highlights of PNB personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 10 lakhs. The loan amount depends on the applicant's credit score, repayment capability, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of 60 months.
• Attractive interest rates ranging between 2% - 6.55% on top of the MCLR or 11.65% - 12% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Simplified loan application and approval process with minimal documentation.
• Special offers on the applicant being an existing customer of PNB.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to PNB.

Types of PNB Personal Loans

PNB offers the following types of personal loans
PNB Personal Loans for General Public

These personal loans are available for the general salaried and self-employed customers.

Eligibility Criteria

• Minimum income of Rs 10,000- Rs 12,500 per month in non-metro cities.
• Minimum income of Rs 15,000 per month in metro cities.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years.
• Maximum age of 60 years.
• Minimum work experience of 2 years for salaried people and 5 years for self-employed people.
  

PNB Personal Loans for Pensioners

These personal loans are available for senior citizens only.

Eligibility Criteria

• Available only for senior citizens holding pension accounts in PNB.
• Sound repayment capability and a good credit score.
• Minimum age of 60 years.
• Maximum age of 75 years.
  

PNB Personal Loans for Doctors

These personal loans are offered exclusively to doctors holding accounts in PNB.

Eligibility Criteria

• Minimum age of 21 years.
• Maximum age of 60 years.
• Minimum income of Rs 5 lakhs per annum pan-India.
• Minimum 2 years of work experience.
• Minimum 2 years of stay at current residence.
  

Documents Required for PNB Personal Loans

Applicants need to submit the following documents while applying for PNB personal loan.

• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Two copies of recent passport sized photographs
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
  

How to Apply for PNB Personal Loans Online

Customers can directly apply for PNB personal loan online by following these steps.

• Go to the PNB website and select ‘personal loans’ from the PNB loan products tab.
• Click on the type of the personal loan required and click on apply.
• Download the application form.
• Fill in the details such as the name, salary details etc. and sign the document electronically.
• Upload the scanned copies of the required documentation and click submit.
  

How to Apply for PNB Personal Loans Offline

Applicants can also directly walk in the personal loan centers of PNB along with the necessary documents. They can fill up the PNB application form and submit it with the documentation. The loan is approved within a maximum of ten working days.

Benefits of Kotak Mahindra Bank Personal Loans - Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank provides personal loans to its customers for different financial needs at very affordable rates of interest, and a lot of other benefits such as quick documentation process, reasonable repayment options, and instant loan approvals. mymoneykarma gives you all the information you need on Kotak Mahindra Bank personal loans.

Benefits of Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank personal loans are loaded with customer-centric benefits and features. Here are a few highlights of Kotak Mahindra Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 15 lakhs. The loan amount depends on the applicant's credit score, repayment capability, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Attractive interest rates ranging between 11% to 24% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers on the applicant being an existing customer of Kotak Mahindra Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to Kotak Mahindra Bank.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
  

Types of Kotak Mahindra Bank Personal Loans

Kotak Mahindra Bank offers only one type of personal loan. This loan is suitable for a large pool of customers.
Eligibility Criteria for Kotak Mahindra Bank Personal Loans   

Applicants must meet the following criteria to get a personal loan from Kotak Mahindra Bank.

• Minimum income of Rs 20,000 per month.
• Minimum income of Rs 20,000-25,000 per month in metro cities.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-55 years for salaried individuals.
• Minimum work experience of one year
  

Documents Required for Kotak Mahindra Bank Personal Loans

Applicants need to submit the following documents while applying for Kotak Mahindra Bank personal loan.

• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
• Two copies of recent passport sized photographs.

How to Apply for Kotak Mahindra Bank Personal Loans Online

Customers can apply for Kotak Mahindra Bank personal loan by following these steps:

• Go to Kotak Mahindra Bank website.
• Under the Tab indicating loan products, click on ‘personal loans’ and download the loan application form.
• Fill in the details and upload the scanned copies of the required documentation.
• Check on electronic signature box and submit.
  

How to Apply for Kotak Mahindra Bank Personal Loans Offline

Applicants can also directly walk into the personal loan centers of Kotak Mahindra Bank along with the necessary documents. They can fill up the application form at the bank and submit it along with the required documentation. The loan is approved within two working days.

How to Apply for IDBI Personal Loan Online - Documents Required for IDBI Personal Loan

IDBI Personal Loan

Whatever be the financial need, IDBI offers a smooth resolution of business problems with personal loans. These loans can be used to cover the massive medical bills, substantial wedding expenses, international vacation expenses, or debt consolidation. IDBI personal loans do not require any security or collateral and are hassle-free with an easy application process. mymoneykarma gives you all the information you need on IDBI personal loans.

Benefits of IDBI Personal Loans

IDBI personal loans are loaded with customer-centric benefits and features. Here are a few highlights of IDBI personal loans.

• Significant loan amounts ranging from a minimum of Rs 25,000 to a maximum of Rs 10 lakhs. The loan amount depends on the applicant's credit score, credit history, repayment capability, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of 5 years.
• Attractive interest rates ranging between 12.45% - 13.50%.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Complimentary personal accident insurance coverage.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.

Types of IDBI Personal Loans

IDBI offers only one type of personal loan. This loan is suitable for a large pool of customers.
Eligibility Criteria for IDBI Personal Loan   

Applicants must meet the following criteria to get a personal loan from IDBI.

• Minimum income of Rs 1.8 lakhs per annum for salaried customers.
• Minimum income of Rs 3.6 lakhs per annum for self-employed customers.
• Minimum income of Rs 5 lakhs per annum for business people.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years
• Maximum age of 60 years
• Loans provided only to the following.
     Salaried individuals with an IDBI salary account.
     Resident senior citizens with an IDBI pension account.
     Self-employed professionals without any existing relationship with the        Bank
     Salaried resident individuals or self-employed people having an asset relationship with IDBI

Documents Required for IDBI Personal Loan

Applicants need to submit the following documents while applying for IDBI personal loan.

• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Two copies of recent passport sized photographs
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
  

How to Apply for IDBI Personal Loan Online:

Applicants can directly apply for IDBI personal loans online by visiting the website of IDBI and downloading the loan application form. They can submit the form after filling it and uploading the necessary documentation on to the portal.

How to Apply for IDBI Personal Loan Offline:

Applicants can also directly walk into IDBI personal loan centers along with the vital documents. They can fill up the application form received at the bank and submit it with the documentation. The loan is approved within 7-10 working days.

Apply RBL Bank Instant Personal Loans At Lowest Interest Rates

RBL Bank, previously known as Ratnakar Bank Limited, is a private scheduled commercial bank. It was founded in the year 1943 and headquartered in Kolhapur, Maharashtra. It provides financial products and services to the customers with an employee strength of over 2,798 employees. The bank has a vast network of over 193 bank-branches in more than 13 Indian states.
RBL Bank Personal Loans

RBL Bank provides personal loans to its customers for different financial needs at very affordable rates of interest. These loans can be used to cover medical bills, wedding expenses, international vacation expenses, or debt consolidation. mymoneykarma gives you all the information you need on RBL Bank personal loans.

Benefits of RBL Bank Personal Loans

RBL Bank personal loans are loaded with customer-oriented benefits and features.
Here are a few highlights of RBL Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 1 lakh to a maximum of Rs 20 lakhs. The loan amount depends on the applicant's repayment capability, credit score, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Attractive interest rates ranging between 14.5% - 23% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Simplified loan application and approval process with minimal documentation.
  

Types of RBL Bank Personal Loans

RBL Bank offers the following types of personal loans
Personal Loans for Education

These personal loans from RBL Bank can be used for financing children’s education and further studies in India and abroad.

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 25-60 years for salaried individuals.
• Minimum work experience of 3 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.
  

Personal Loans for Wedding

These personal loans from RBL Bank can be used to cover the costs of a wedding in the family or of the applicant.

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 25-60 years for salaried individuals.
• Minimum work experience of 3 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.
  

Personal Loans for Home Renovation

These personal loans from RBL Bank can be used much like a home loan, to upgrade or renovate the applicant’s house.

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 25-60 years for salaried individuals.
• Minimum work experience of 3 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.
  

Personal Loans for Medical Expenses

These personal loans from RBL Bank can be used for medical expenses or emergencies.

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 25-60 years for salaried individuals.
• Minimum work experience of 3 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.

100 Minus Age Rule of Thumb for Investing - What is the 100 minus age rule?

You know that in order to make your investments successful, you need to diversify them, right? If you know that, it’s great. But do you also know in what proportion you need to make those investments into various diversifications?

This is where the 100 minus age rule comes in.

What is the 100 minus age rule?

This rule says that the percentage of equity assets in your portfolio needs to be equal to the difference between 100 and your own age. For instance, if your age is 30, then according to this rule, you need to invest 70% of your assets into equities.

One of the good things about the rule is that it supports the “Declining Equity Glide Path” concept. This is where you diminish the allocation you give to your equities each year or once every few years. This ultimately leads to the reduction of risk level and volatility in your own portfolio.

Now, the older you become, you need to have capital security and be risk-averse. This is exactly what the rule wants you to be or do. However…

Does the rule actually work?

In this rule, people’s ability to take risk is generalized, and the rule depends on just the age factor. However, can the rule be applied for one who is in his or her early 30s and who is risk-averse? The rule has to consider all factors like risk appetite, return requirements, planned time to reach goals, and other factors. These have to be considered for determining asset allocation.

Practical problems with the rule

This rule is not without its problems. For one, the rule assumes that for every one financial planning will be the same. But that is not the case. Financial planning depends on the individual. For instance, investing decisions depend on current assets, financial goals, future income potential and other factors. For instance, if you are 55 years of age right now and don’t plan to withdraw from your retirement accounts till you reach the age of 70, there are still many years to go before you can access your own money.

And if you want your funds to have more chances of getting a return of more than 5% a year in interest, investing 50% of your funds in stocks can be too conservative for your time frame and goals.

How Fast Can Your Double Your Money? Find Out with the Rule of 72

Want to double your money?

No, this is not a scam.

And it’s not magic either.

Nor is this a major secret which only the millionaires know.

The Rule of 72 is a theory or a formula which can show you how fast you can grow your money.

So what’s the big deal about it?

This formula lets you see in how many years you can double your money, considering all other variables remain constant. For instance, if you have variable interest rate, it’ll get complicated.

The Rule of 72 is useful for investors and advisors to find out how long it can take for an investment to double. So if you know the formula, you can discover these exciting things yourself!

All you need to do is divide the number 72 with your investment’s fixed rate of interest. You’ll get a more or less rough estimate on the length of time it’ll take for the investment to double.

However, if you have a variable rate of interest, you may want to try a different formula that accounts for these changes in interest rates.
What is the Rule of 72?

As said before, you can use the Rule of 72 to find out how long it will take your investments to double as long as the interest rate is fixed, and as long as there are no additional contributions.

By the way, there is also the Rule of 115 which tells you how long it can take your investment to triple. In that, the principle is the same: divide 115 with the fixed rate of interest.

Either way, both of these Rules can help you find the power of compound interest. So the higher rate of interest you have, the shorter time it’ll take for you to double or even triple your investment.

So how do you use the Rule of 72?

Let’s say that you have Rs. 100000 at hand and you decide to invest it. However, before doing that, you want to find out how long it will take for your investment to get to Rs. 200000 without adding more finds. The given interest rate is 7%.

You divide 72 with 7% and you get 10.29 years.

However simple the calculation is, it is not foolproof. To get a more accurate result, you may want to use the formula below:

T = ln(2) / ln(1+r)

Where:

T= time to invest

In= natural log function

R= compounded interest rates

How to Choose a Mutual Fund? - Mutual Fund

For people who wish to enter the stock market for the first time, or for those who wish to make a more conservative investment, mutual funds is the way to go.

However, the problem is not in deciding whether to invest in mutual funds, but in which mutual funds to pick.

After all, there are so many such funds on the market. A simple search engine search will give thousands of results, while advice from banks and agents will only confuse you more with more choices you can handle.

So how can you solve this problem short of going through thousands of guides and articles online, or short of listening to multiple financial advisors?

All you need to read is this one single article! Here’s we will give you guidelines that can help you pick mutual funds which shall be best for your financial goals.

So let’s get started.

You need 2 things to select a mutual fund

• You need to select the mutual fund category
• Then, you need to select the mutual fund scheme
  

Selecting the mutual fund category

When selecting the categories, here are the aspects you need to know.

Investment objective: This refers to your future financial goal through your investment in the mutual fund or funds. The objective can be long term or short term, and can range from retirement planning to give education for your children.

Time horizon: This refers to the time period for which you’ll be making the investment in a chosen mutual fund scheme.

It depends on your financial goal. For instance, you may want to have just an overnight investment or one of 5 years. Time horizon is important as it enables you to find suitable mutual fund schemes faster.

Additionally, it also plays a central role in managing your mutual funds. For instance, you want to have a debt fund for the short term and for the long term in ELSS. Long term investments are more stable while short-term ones tend to be more volatile.

Here are the various fund categories according to Time Horizon.

• 1-3 days- Liquid Funds
• 3 months-1 year- Ultra-short duration funds
• 1 year-3 years- Short-duration funds
• 3 years-5 years- Hybrid/Balanced funds
• 5 years- Equity funds
  

Risk appetite

Investors have to take into consideration their risk appetite or the risk factor. Let’s face it: investing in anything is not without risk, however small. For instance, investing or saving in the Post office has little risk, but in stocks in the stock market has a lot of risk. Mutual funds come with their own slew risks, which depend on various factors like time of investment.

From 2015, SEBI has made it imperative for mutual fund houses to inform potential investors about the risk level of each scheme. These are low, moderately low, moderate, moderate high and high. Each person’s risk appetite is different. For instance, people in their 20s have less responsibility and therefore less risk, which means they can take risky investments in the hope of getting high returns.

Selecting the most suitable mutual fund scheme

When you have determined the fund category, your purpose for investment, the time interval for investing and your risk appetite, it is now time to select the mutual fund scheme. Just follow these aspects.

Fund’s performance against benchmark index

What is a benchmark index?

It is a standard which mutual funds can compare their performance against. Announcing a fund’s performance has been made mandatory by SEBI in 2012.

Now coming back to the question of your chosen mutual fund, how is it performing? Is it outperforming the index? If yes, buy it! If not, don’t.

By the way, SEBI has made it mandatory for all mutual funds to have TRI or Total Returns Index as their benchmark index.

Performance against the category

You also need to check how well a fund is doing against others in the same category. However, the comparison should be against other funds of the same scheme type.

Unity in performance:
The best mutual fund is the one that gives you good returns. More importantly, this needs to be consistent, and this shows the fund’s commitment toward investors. For this, you need to check its historic data to determine whether the fund is giving returns on a consistent basis. An ideal mutual fund is that which maintains its performance in both bear and bull markets.

Experience of fund manager:
This is a big factor by itself. Before making a final decision, you need to check out the fund manager’s performance for the mutual fund. What you need to know is how experience the fund manager is, and whether the manager has generated any returns in the past.

AMC Track Record:
AMC or Asset Management Company is a company that manages mutual fund schemes. It decides which schemes shall be invested and thus it is essential you check whether, according to AMC, the scheme is good or not.

Assets under Management (AUM):
AUM is a total fund managed by AMC. AUM is both good and bad, as in useful and harmful. For instance, a large AUM in a small-cap fund can hinder an asset manager from entering and exiting the company as needed, and that makes it risky for an investor. On the other hand, if short-term debt and liquid debts have a large AUM, it makes it less risky.

Expense Ratio:
This is the fee charged by AMC for managing, administering, promoting and distributing various mutual funds. It includes all expenses incurred in handling these funds. If the expense ratio is low, you get more return.

What is a Dividend? - What are Dividends in the Stock Market?

If you remember your economic classes back from school, you may remember that there are several factors of production: land, labour, capital and entrepreneurs. And if you also remember, they also get their returns in the forms of rent, wage, interest and profit respectively. For this, we learn that the return of an entrepreneur is a dividend.

Dividends are the payments that are made by a company to share its profits with shareholders. This is just one of the several ways investors get a return on their investments. Dividends can be in the form of additional shares or cash. When these are announced, they are accompanied by proportional decrease or increase in share price.

Let us understand everything about dividends.

Shareholder’s reward

Dividend is the reward companies give to their shareholders for investing in them. Dividends are given from the profits a company gets post meeting all other expenses. So it is kind of like net income, and dividends form a part of that. However, companies do not give over the entire pool of profits as dividends. They keep some of the profits back as reserves. Rate of dividend is decided by the Board of Dividends and is approved by all shareholders.

Dividends are also paid in other ways that cash when needed, such as:

• Physical assets: This is rare, but sometimes companies give over assets as dividends to investors.
• Stocks: This is more common than giving physical assets. Companies give bonus shares above and beyond what they give as dividends.
  

How is Dividend Policy decided?

It is not easy even for the company’s Board of Directors to decide how much dividend to pay. They have to consider factors like:

Stability of earnings and dividends: A company can give a stable rate of dividends only if they are stable.

Liquidity: A company may be doing quite well, but it can choose to not declare dividends. This can happen if the dividends are illiquid. Besides, companies try never to borrow to pay dividends. However, they can give bonus shares.

Dividend policy of competitors: Companies of the same industry type to follow the same type of dividend policy. So if your competitors are giving more dividends, you may want to follow suit.

Expansion plans: If a company has a high potential for growth, it will be keeping more reserves of profit to finance such growth. However, a saturated company will give more dividends to lower its growth prospects.

Taxation: After the government’s abolishing of Dividend Distribution Tax in 2020, companies can now give more dividends without having to worry about giving tax on them.

How can you calculate dividend income?

Most of the time, dividends are given on share’s face value. Thus, when companies say they’ll pay 100% dividends, they mean they’ll pay just Rs. 10 per share and not 100% of the current share price.

From the view of investors, dividend is found out by Dividend Payout Ratio. According to this, the declared dividend is divided by the company’s net profit.

The other alternative is the Retention Ratio, which is complementary to the Dividend Payout Ratio. It is calculated by dividing retained earnings by a company’s net profits.

Both these ratios help to understand the financial goals of a company. For instance, companies declaring lower dividends are good prospects to invest in. Companies giving high dividends is a sign of a lack of future plan, although this is not always so.

The financial effect of dividend

Dividend is an appropriation of income, and not an expense. It has effects on a company’s financial statements, such as:

• In the company’s balance sheet, it reduces overall reserves and the average cash balance
• In cash flow statement, it is an outflow under Financing Activities
• It is not shown in Income Statement as it is not an expense
  

Its effect on share prices

Giving dividends does not normally affect a company’s value, but it has an effect on its share prices. This happens because when companies declare dividends, their share price goes up since investors buy shares and get dividends. Share prices fall by the same proportion after the expiry of date for being eligible for getting dividend.

There are times when the rise in price of a share is more than the amount of declared dividend. This leads to a net increase in share price.

How do you identify dividend stocks?

On the BSE, there are more than 5000 listed stocks. Besides, there are various types of traded shares. Some of these are called Dividend stocks as these give a majority of their profits as regular dividends. These should certainly be in your portfolio as they aid in getting passive income. Examples include REITs and PSUs.

Here’s how to find them:

• The company should be paying regular dividends
• Dividend yield should be between 3% and 6%
• Stocks need to have a dividend payout ratio of a minimum of 50%
• Earning per share needs to constantly increase
• P/E ratio needs to be analysed

9 Questions to Ask Your Financial Advisor about Retirement

Perhaps you have just started to save for retirement, or maybe you have been investing for that for decades. Regardless of for how long you have been doing it, getting the advice of a professional can make a world of difference. However, before you do that, you need to ask the professional certain questions. This shall ensure you both shall be a good match.

For instance, before you get into a contract or before you start taking the service, you need to be sure about what you’ll be getting. And the best way to do this is to ask the right questions. In this article, we are going to show you 9 questions you can start asking from the get go. And by the way, if the professional cannot answer these, you may want to keep looking. After all, your retirement is way too important.

So, without further ado, here are the questions you got to ask.

What do you love about your job?

This may sound like a stupid question to start with, but bear with us a bit. IF you find a professional who cannot tell you what he or she loves about his or her job, then you probably are better off without such a professional. You have to find one who enjoys his or her job, one who enjoys helping people, one who is not doing the job just for the sake of it, etc. Only such a person will be able to help you out, or in other words, give you a top level service.
An ideal professional can help you in:
- developing tax strategies
- manage your healthcare costs
- build wealth
- creating a budget
- repay debt on time
When you are asking this question, notice the person’s body language. Is the professional smiling too little or too much? What about hand gestures? Is the person distracted? All of these can be red flags.

Which service will you be giving?

This is a basic question, one you’ll ask anyway. But there is more to this question. For based on the professional’s answer, you’ll be able to determine:
- find out how much you’ll need to retire
- how to create a long-term strategy
- how to rebalance your investment strategy
- how to manage your expenses
- how to make a long-term healthcare plan
- how to create a fantastic tax strategy

What are your qualifications?

You want a professional who’ll be able to give you advanced retirement planning service. So look for qualifications and work experience.

How do you want to be compensated?

It is always important to know from beforehand how you’ll be paying the retirement planning professional. Things you should be asking about are the person’s hourly rate, price per service or session, rate per transaction, annual service charge, etc., based on your assets. Some prefer to get paid through commissions.

This does not mean you should be staying away from people who charge more. People who charge more do so because they give you much better results, in general. If someone is offering his or her services at a rate too low, beware. Try to stay away from the ones who desire commission-based compensation since it could mean you’ll be forced to buy products with higher fees later.

Will your firm hold my investments and property?

Apart from the fees you give them, financial advisors should have no other contact with any of your assets. If you have to use the services of a third-party reputable custodian, do so. Such a person can also be from within the financial advisor’s firm. A Custodian is generally a banking institution who will hold your securities for safekeeping. This prevents loss and changes of stealing. They can also hold stocks and physical assets.

What is your investment philosophy?

This may seem like an advanced question, but is actually a basic one. If you want a professional who has knowledge enough to help you, the person will be able to tell you about his or her investment philosophy. After all, only a person with a strong investment philosophy will be helping to aid your investments to grow.

What shall we keep in contact?

At a bare minimum, you should expect to be in contact on a quarterly basis. Ideally it should be on a monthly basis. On such meetings, the professional advisor should explain to you every transaction, and review your portfolio’s status, and even give you necessary educational resources.

If something happens to you, what becomes of my money?

In case the professional advisor retires, there should be a plan B regarding you. There should be someone else to take the reins. Make sure the advisor can explain this from the beginning.

Is there anything else I should be asking you?

At the end of the interview, both parties should be at ease. This is the perfect time to give additional information which will be helpful to you.

As you can see, asking the right questions can go a long way in ensuring you get the best possible service.

Stop Living from Paycheck to Paycheck - Living Paycheck to Paycheck

Do you know how many have a saving which can be wiped out but just one single emergency? If you get that statistic, you’ll see that it is in fact alarming. Just a single stroke of bad luck can wipe off one’s years’ worth of hard-earned savings. Life can get overwhelming, to say the least, if one is faced with accidents, business loss, and financial and medical emergencies, and for some even repairing a broken kitchen appliance.

And yet, people still continue to ask for credit cards and loans during these times, which makes their situation even worse.

How many people in India live from paycheck to paycheck?

According to studies, it can range from 50% to 80%. That is a pretty high percentage of the population who are dependent on salaries or wages. An even alarming percentage is 22% to 50%. That is the percentage range of the population who have an emergency fund. If you are feeling alarmed, don’t be.

Here are a few tips to help you get out of the paycheck-to-paycheck life.

• Take inventory of your finances: The very first thing you need to do is take stock of your current financial situation. How much are your monthly expenses? How much do you earn, and from what? Do you have passive income, or is your salary your only source of income? What are the things are you spending on? Do you have debts? If yes, how much?
  
  
• Continue making your payments on time: You must be making at least your minimum payments per month. If you miss payments, your credit score goes down. And that is not something that you want happening to you. Without a good credit score, you won’t get further loans, and repairing the score takes a lot of time. Now, if you are paying just the minimum EMIs, find out how long it’ll take you to repay the loan and how much you’ll be paying in interest.
  
  
• Changing your spending habits: If you find that you overspend on unnecessary things like junk food, unnecessary transportation, and etc., you need to stop those habits. For instance, if your office is just a walking distance away, why take a cab ride? If you know junk food is ruining your health and your wallet, why continue? Contrary to popular belief, the best place to start saving is not on expensive one-time purchases, but on the smaller expenses that keep on recurring. So figure out what you overspend on, and then create a plan to eliminate the habit. There will be an inclination to return back, a temptation of sorts. But it’s something you need to control. For instance, if you want to get out of debt, avoid the temptation to use your credit card.
  
  
• Make your budget leaner: Cut back on things you can do without. You’ll be surprised to find how much you can save.
  
  
• Create an emergency fund: Regardless of whether you need the funds right now or not, you do need to have an emergency fund. This is for those times when you are short of money and need to take emergency loans. Thus, emergency funds save you a ton of money.

Money Habits - Habits of the Rich that Make Them More Rich

The difference of wealth of the rich and the poor can be fascinating at times. After all, how can one small section of the population just continue to prosper, while the rest seem to be stuck where they were, at best? Does it have to have class and economic mobility? Can the attitude and action of the classes be observed to know what is really happening?

The secret language and behaviours of the wealthy that helps them to become wealthier

Wealthy people think and act very differently from how we do.

Imagine that you have 1 crore in the bank. You are, of course, very happy. However, you have no idea about saving, investing, or any way to make this wealth last or grow. As a result, you spend frivolously. The wealth lasts for a few years, and then you are back to where you were in the beginning!

Now take the example of a man who is already wealthy. Let’s say he gets 1 crore from his business profits. He has all the required knowledge to make this wealth last sustainably and grow. Thus, his wealth continues to grow.

See the difference?

Just getting a load of money won’t help you. You need to know how to make it last and grow.

So, what are their behaviours that help them?

• They do not wait for permission: While the rest of us are taught from a young age to ask for permission every time we need anything, the rich are instructed differently. We grow up with those values, and thus we still end up asking for permission for everything. The wealthy, in their adulthood, shift their mindset to control from permission.
  
  
• They know the financial landscape: In most countries and cultures, it is considered bad to speak about money. They say it is bad manners. Thus, most people don’t speak of money a lot. That is unfortunate since doing so aids them in understanding the financial world, and helps them in taking educated financial decisions. The rich are not abashed to speak of wealth growth and money, not to ask for advice and information regarding money.
  
  
• They ask when they don’t know things: This is a big factor. When the poor and the middle class do not know or understand something, they prefer not to delve deeper. They prefer not to ask and understand the topic better, especially if it is about wealth growth and money. Thus, they tend to live in ignorance in these topics. The wealthy people are not like this. They have the benefit of having a team of financial advisors to give them timely advice and information. Besides, they can always ask their friends and family members, who also have a ton of knowledge about these topics. Now, you may not be wealthy or rich, yet, but you can still have a lot of knowledge. Most of it is available online!
  
  
• They value their time: The rich understand that their time is valuable. They place a lot of importance on their own time, and desire others to value their time too. After all, they understand that time is money, just like money is time.
  
  
• They understand and speak the language of money: One way the wealthy continue to get wealthier is because they are financially more literate than the rest.
  
  
• They know more about personal finance than the poor do.

• They know the importance of making money grow over a long time: The poor especially think that money can be acquired within a short span of time. The rich know that wealth can only be generated over a long time.
  
  
• They know the importance of outsourcing: Since they already understand that their time is valuable, they prefer to outsource some of their tasks and requirements. Many of the wealthy have their personal trainers to take care of their fitness levels, dedicated family doctors, a team of financial advisors, cooks, drivers and more. After all, they save them time and money. The poor and the middle class do not have the resources to outsource, unfortunately, nor do they understand its importance.
  
  
• They understand the importance of recharging from time to time: The rich understand the importance of rewinding and recharging from time to time, from where they can come back stronger and more focussed.

Now let us come to…

Habits of wealthy and successful people

Let’s see what exactly separates the wealthy and the poor. We have looked at the behaviours, now let us look at the habits.

• They surround themselves with positive and like-minded people: They do not like being around negative people. They like to be amongst people with a can-do attitude.
• They don’t stop after failing: The poor and the middle class really fear failure. To them, one failure is the end of the world. For the rich, a failure is just another opportunity to learn.
• They are masters of time-management: Since they know their time is limited and valuable, they don’t like wasting a second of it.
• They don’t follow the herd: This includes not buying expensive things and showing off their wealth. They don’t follow various cultural norms, the way others invest, and choose to go their own way.
• They act with a purpose and direction: They act with a purpose since they value their time. It’s like they have a mission in life and have a long-term goal.

Are Personal Loans Really Good for You?

Personal loans are one of the most versatile forms of credit on the market. In fact, as long as you don’t use it for speculative purposes, you can use it for anything at all as long as it is legal. In fact, most banks and lenders don’t even ask you what you’ll be doing with the loan. Great, is it not?

This means you can use personal loans for anything, ranging from home renovation, education, tuition fees, medical expenses, buying electronics, and much more! You can buy a home with it or fuel a business as well, but there are specialized loans which cater to those specially and offer more useful benefits.

The flexibility is not just in usage, but also in:

• Repayment plans
• Loan amount
• Tenure
  

 Additionally, there are more than 100 banks, financial products, and NBFCs waiting for you! Well, not exactly not waiting for you so liberally, but yes, you have a wide range of options.

In this article, we shall go through the various benefits and disadvantages of long term personal loans.

Benefits

• Loan amount: If you want a long term personal loan, which are those loans of more than 5 years, you can choose to take the maximum amount depending on your current debt-to-income ratio. Most lenders give loans of Rs. 40 lakhs for a term of 4 years. You can serve 7 years as well, depending on your eligibility. Long term personal loans enable you to borrow more than what is possible from short-term personal loans.
  
  
• The size of EMIs: It is a common knowledge that the longer your repayment term is, the less your EMIs become. This enables you to pursue your dreams without fearing about money shortages. However, remember that your interest rate increases in direct proportion to the loan term, and so you’ll be paying more anyway. Even if you can manage a lower interest rate, the loan’s overall cost shall be higher. Thus, tenure should only be extended if you are not able to repay in the short term.
  
  
• Foreclosure: Most personal loans come with a foreclosure cost. This can range till 4% of the outstanding loan principal. In case of long-term loans, this fees is considerably less, but only after you have paid 24 month’s EMI.
  
  
• Collateral: These are unsecured loans and thus there is no question of security or collateral. You get this loan based on age, debt to income ratio, age, and credit score. However, you can still pledge a collateral and thus get a lower interest rate and longer duration.
  
  
• It is good for your credit score: Paying EMIs and instalments of long term personal loans build up your credit score, and makes you a much more lucrative customer to future lenders.

The Disadvantages

1. Long term personal loans limit your credit eligibility: Think about your current debt to income ratio before going for a long-term personal loan. Because once you get a long term loan, you may not be able to get any other loans before repaying the current loan, which of course will take many years to repay. Besides, even if you can get other loans, it’ll be very stressful having to pay EMIs for them all.
   
   
2. Overall cost of loan rises: If you go for a longer tenure, you increase the loan’s overall cost.
   

If you are going to pick a long-term loan out of compulsion, we recommend you check out other options like home loan and education loans first. You’ll get more tax benefits from such loans.

5 Things to Know Before Taking a Loan against Property

Loan against Property is a secured form of borrowing or getting credit. Here, you keep your property as a security with the bank and get a high-value loan at an attractive interest rate. Loan against properties also go by names like mortgage loans. The market for this type of loan has become very popular lately. By 2023, LAPs are expected to grow by 22% at least.

If you are in need of considerable funds but do not wish to part with your beloved property, getting a mortgage loan can be a very good choice. After all, who wants to sell off their home even in times of great financial need, right? Fortunately, banks have a very helpful service in the form of Loan against Property. In this service, basically you’ll be getting a loan in lieu of your property. It means the property shall be the bank’s collateral. If you repay your loan on time, you get your property ownership papers bank from your lender.

However, before taking an LAP or Loan against Property, there are 5 factors one needs to consider.

The loan amount you can get: Loan against property is still a loan against your land or property, no matter the loan is called. As such, it falls under the umbrella of other similar loans like land mortgage loan, home mortgage loan, loan against plot, and mortgage against agricultural land. The loan amount you get is actually a percentage of such properties’ market value.

The interest rate: On the whole, Loan against Property comes with a very affordable interest rate. This is because it is a form of secured loan. Your lender’s money, or loan, is back by a collateral. However, know that the interest rate can differ from one lender to the next. This is why one should shop around a bit before finalizing on any bank’s LAP. After picking a bank, you still need to decide on either floating interest rate or a fixed interest rate.

The repayment tenure and its EMIs: LAP’s are normally about a significant loan amount. After all, it is a credit line against the value of your property. Thus, banks give you enough time to repay such loans. Generally, the repayment term is 20 years. Depending on your lender, this term can be even more. However, since longer repayment terms mean more interest over the long term, it is more prudent to pick a shorter term.

Your tax benefits: Just like a reverse mortgage gives you some tax benefits, so does a mortgage loan. However, you still need to show that you’ll be using the funds for home improvement. You can get up to Rs. 2 lakh tax benefits under IT section 2B.

Foreclosure and prepayment fees: Most lenders charge for these. For if you want to foreclose the loan, or if you want to pre-pay it, there will be a price to pay for it. Generally, this is around 2% to 4% of the total loan amount.

Dangers of Debt Consolidation

No one feels good when they have debt. Debt makes people helpless and irritable. They limit how much you can save each money for a long time, depending on your loan tenure. And if you have multiple debts, you need help. This help comes in the form of debt consolidation.

Debt consolidation lowers your monthly payments, interest rate and makes repaying loans simple. However, even debt consolidation is not a risk-free option.

To make sure debt consolidation does not make your life worse, you need to understand its dangers before you make a choice. Below given are the four major risks one can face with Debt Consolidation.

You could fall deeper into debt: Your first priority is to pay back your current debts and to ensure you don’t fall deeper into debt. However, with Debt Consolidation, there is the risk of just that.

Let’s say you take a personal loan and a balance transfer to repay current debts. This frees up your burdened cards, which means you’ll have a lot of available credit on those cards. However, if you start using those cards again, you’ll soon be having a debt on your debt consolidation loan. Thus, this is where you need to tread lightly.

Further, don’t go into debt consolidation before you have a plan to avoid overspending. Create a budget and stick to it. Create an emergency fund too and seriously decide not to use your credit cards to make new purchases.

You may end up paying more in interest: You take debt consolidation to lower your interest rate, right? Now, a balance transfer credit card or a personal loan can give you 0% for a few months, giving you much lower interest rates than all of your current credit card debts.

However, at the end of the day, your interest rate is not the only thing in your interest to be paid. Your tenure for debt repayment has a big role to pay as well in counting towards the interest rate.

You can take a debt consolidation and lower down your monthly payments by extending your tenure, but then your total costs shall be even more since you’ll be paying over a longer period of time.

If you want to avoid this, consider making your monthly payments, or more than that if you can manage, to repay your debt faster. But do make sure you don’t incur any prepayment charges.

There are consolidation scams: Unfortunately, there are some unscrupulous lenders who are in the market only to find customers who are in grave financial difficulty. The problem is that these loans are not good for your finances.
You’ll have to deal with high interest, longer tenures and various other unfavourable terms. And if you miss a payment, you’ll have to deal with exorbitant penalties.

Construction Loan vs Home Loan - Differences between Home Loan and Construction loan

Everyone desires to own a home at some point of their life. Owning a home, compared to renting one, gives you so much more freedom. Now, one way to fulfil your dream to buy and own a home is to get a home loan, unless you have tons of money lying around!

Now, if you are looking for a loan, there are two options for you contrary to what most believe. Your options are Home Loan and Construction Loan. Now, these are loans for different requirements, and it is important that you know their similarities and differences.

The only similarity is that both of these can be used for buying a home. But that’s where the similarities stop and the differences start.

Differences between Home Loan and Construction loan

Tenure of a construction loan is much shorter- When compared to a home loan, the tenure of a construction loan is much shorter. In some ways it is good since with a shorter repayment period you’ll save money in the long run. However, your EMI’s per month shall be higher in comparison. A higher EMI is there in order to offset the risk of your lender.

Home construction loan amount is given to you in phases

In a home loan, you get all the amount in a lump sum, right? Well, in the case of a construction loan, it’s not like that. Here the loan amount is disbursed over to you in phases. This is to coincide with the various phases of construction.

In a way, it is a good plan. Construction happens in phases, and since you are getting your money in phases, you won’t be wasting the funds. In phases, you’ll be getting just what you need and applied for.

Construction loans have large down payments

In case of home loan, the down payment is 15% to 20% of the loan amount. Think that is a lot of money? Well, construction loans have 25% down payment. That is a pretty hefty amount of money as down payment, but if you are sure you want this type of loan, and if you have the funds, go for it.

Interest rates

Home construction interest rates are higher too. These are generally between 11% and 14%. In home loans, interest rates are between 8% and 10%.

What is a Reverse Mortgage? - What is the Reverse Mortgage Loan eligibility criteria?

When we think about our lives after retirement, we start wondering about all the problems we’ll be having at that time, problems like lack of regular income and absence of a proper support network. These are serious worries, and not worries out of thin air. Aged citizens routinely have to worry about the rising cost of living, cost of healthcare and much more. More or less.

Most aged citizens own a property or two. However, since these are illiquid in nature, one cannot convert these into instant cash or a regular income stream.

Here comes Reverse Mortgage to the rescue. The concept of Reverse Mortgage was introduced by the Indian government as early as 2007.

What is Reverse Mortgage?

Reverse Mortgage, just like the name suggests, is the total opposite of a normal mortgage. In a reverse mortgage, a person owning a home or property can mortgage it and get a regular amount from the bank. The bank or financial institution concerned has the legal right to sell off the property after the customer’s death. The remaining amount is given back to the applicant’s legal heirs.

Its use and situation in India

Studies have determined that by 2050, 20% of Indian population shall be senior citizens. To help them out in their late age when they can be beset with many financial problems, the government and private lenders offer the service of reverse mortgage. It is for giving candidates healthcare benefits and social security. As for the lenders of this service, it gives them a lot of opportunities to promote the service even more.

Why should one go for reverse mortgage in the first place?

One of the biggest benefits is that it gives senior citizens social security, financial security, and this mental peace. Someone with a reverse mortgage shall be getting timely money each month from the concerned bank. Thus, senior citizens can make budgets and live their lives comfortably instead of depending on anyone. Besides, they don’t need to move out of their mortgaged house either. They can stay at their own homes and enjoy the fruits of this service.

So a reverse mortgage is perfect?

Not really. There are some problems, but it has more to do with the Indian traditional viewpoint. For example, parents may not want to give away their property even after their death to the lender. Instead, they would want it to go to their legal heirs or children.

Another problem is that of the huge initial costs of reverse mortgage. These expenses form a part of the initial loan and thus accrue interest.

Loan amount and interest rates can change as well, since these depend on the real estate industry.

What is the Reverse Mortgage Loan eligibility criteria?

• One needs to be over 60 years of age. If you are applying together with your spouse, the age of the spouse needs to be more than 58.
• One needs to have a fully owned property or home. If the applicants are a couple, at least one of them needs to own a property.
• The property should have existed for the last 20 years at least
• Properties that are used for commercial use and which are let out cannot be used for reverse mortgage
  

Documents you’ll need for getting a Reverse Mortgage

• Address proof
• ID proof
• ID card of employer
• Property papers
• Last one year’s loan account statement
• Last 6 month’s account statement of all bank accounts
  

Main points of a Reverse Mortgage loan

• The maximum loan given is Rs. 1 crore
• The minimum tenure is 10 years. The maximum tenure depends on your lender.
• One can pick monthly, quarterly, yearly, or lump sum payments.
• The property concerned will be inspected and reevaluated by the lender every 5 years
• The reverse mortgage loan rates depend on your lender, and on the type of loan chosen.
• The processing fee depends on your lender.
• You can prepay the loan at any time during the loan’s term without worrying about a prepayment fee.
  

Top benefits of a reverse mortgage loan

• The income you get from the lender will be tax-free.
• If you repair or renew your home with the money, the amount spent shall be deductible from income tax.
• Loan’s repayment at term’s end is not considered to be tax-deductible.

Floating Interest Rate Home Loan - What Is A Fixed Interest Rate Home Loan

When you want to get a home loan, interest rates are what most people are concerned about. Because taking a loan is just not a matter of repaying the principal amount, but also about the interest rate on top of that. Thus, taking a home loan is one of the biggest decisions of one’s life. Likewise, it is important to pick the lowest interest rate, without compromising on the service quality.

However, picking an interest rate is not that simple anymore. There are various types of interest rates like fixed and variable interest rates. There’s a lot of difference between these two - differences which can cost you a lot of money if you don’t know what they are. Thus, you need to know what these are and how they affect you.

What is a fixed interest rate?

Having a loan with fixed instalments means that you’ll be paying fixed, equal and regular EMIs throughout the loan tenure. The benefit here is that the interest rate shall not change during your tenure, no matter what.

It won’t matter what the market conditions will be in the future. It won’t matter if there’s an earthquake. It won’t matter if a war breaks out. Your interest rate won’t change. Consumers pick fixed interest rates especially when the market is down.

What is a floating interest rate?

This interest rate type keeps changing based on the financial market fluctuations. It is therefore volatile. Floating interest rate depends on the base rate quoted by various lenders, and thus whenever this base rate goes through a change, you’ll see a change in the Variable interest rate as well. It is cheaper when compared to a fixed interest rate. The fluctuation is also temporary, as the financial market dictates. Floating interest rates are quickly becoming the more popular option for new home buyers.

Can you shift from a fixed interest rate to a floating interest rate and back?

Yes, you can do this. However, each time you change your interest rate structure, there is a 2% conversion fee to be paid, which can add up to a considerable amount depending on your total loan.

If you wish to pre-repay your home loan, the prepayment charges range from 2% to 2.5%, depending on your lender.

IndusInd Bank Personal Loans - Types of IndusInd Bank Personal Loans

IndusInd Bank offers a smooth resolution of financial problems with IndusInd Bank personal loans. These loans can be used to cover medical bills, wedding expenses, international vacation expenses, or debt consolidation. IDBI personal loans do not require any security or collateral and are hassle-free with an easy application process. mymoneykarma gives you all the information you need on IndusInd Bank personal loans.

Benefits of IndusInd Bank Personal Loans

IndusInd Bank personal loans are loaded with customer-centric benefits and features. Here are a few highlights of IndusInd Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 15 lakhs. The loan amount depends on the applicant's repayment capability, credit score, credit history, and yearly income.
• Loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Affordable interest rates starting from 10% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers if the applicant is an existing customer of IndusInd Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to IndusInd Bank.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
  

Types of IndusInd Bank Personal Loans

IndusInd Bank offers the following types of personal loans

Personal Loans For Education

These personal loans from IndusInd Bank can be used for financing children’s education and further studies in India and abroad.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Wedding

These personal loans from IndusInd Bank can be used to cover the costs of a wedding in the family or of the applicant.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personals Loans for Home Renovation

These personal loans from IndusInd Bank can be used much like a home loan, to upgrade or renovate the applicant’s house.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Medical Expenses

These personal loans from IndusInd Bank can be used to mitigate costs of medical treatments, surgeries and other medical emergencies for parents, other family member, or the applicant itself..

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Balance Transfer

These personal loans from IndusInd Bank can be used to reduce the costs of interest for other loans that have been transferred from other banks.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Documents Required for IndusInd Bank Personal Loans

• Applicants need to submit the following documents while applying for IndusInd Bank personal loan.
• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Two copies of recent passport sized photographs
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.

YES Bank Personal Loans - Types of YES Bank Personal Loans

YES Bank Personal Loans

YES Bank provides attractive personal loans to its customers for fulfilling their different financial needs at very affordable rates of interest, hassle-free documentation, reasonable repayment options, and instant loan approvals. mymoneykarma gives you all the information you need on YES Bank personal loans.

Benefits of YES Bank Personal Loans

YES Bank personal loans are loaded with customer-centric benefits and features. The following are a few highlights of YES Bank personal loans.

• Large loan amounts ranging from a minimum of Rs 1 lakh to a maximum of Rs 40 lakhs. The loan amount depends on the applicant's credit score, repayment capability, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 6 months and a maximum period of 60 months.
• Attractive interest rates ranging between 10.75% to 16.99% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers on the applicant being an existing customer of YES Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
• The facility of doorstep document collection.
  

Types of YES Bank Personal Loans

YES Bank offers the following types of personal loans.

Holiday Loans

These personal loans from Yes Bank can be used for planning holidays to exotic locations in India and abroad.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years.
• Maximum age of 65 years.
• Minimum work experience of 2 years and 1 year at the current company.
  

Wedding Loans

These personal loans from Yes Bank can be used to cover the costs of a wedding in the family or of the applicant.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years.
• Maximum age of 65 years.
• Minimum work experience of 2 years and 1 year at the present company.
  

Home Renovation Loans

These personal loans from Yes Bank can be used much like a home loan, for covering the costs of upgrading or renovating the applicant’s home.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years.
• Maximum age of 65 years.
• Minimum work experience of 2 years and 1 year at the present company.
  

Documents Required for YES Bank Personal Loans

• Applicants need to submit the following documents while applying for YES Bank personal loan.
• A filled loan application form with necessary details such as income, occupational details, and personal information.
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
• Two copies of recent passport sized photographs.
  

How to Apply for YES Bank Personal Loans Online

Applicants can directly apply for YES Bank personal loans online by visiting the YES Bank website and downloading the personal loan application form. They must submit the filled form and upload the required documentation on to the portal. Then, the applicant profiles are evaluated and the loan amount is deposited in the applicants’ accounts within 5 working days.

How to Apply for YES Bank Personal Loans Offline

Applicants can visit the nearest YES Bank loan centre along with their documentation. They can fill up the application form received at the bank and submit it with the documentation and the bank approves the loan within 5 working days if the applicant profiles meet all the eligibility criteria.

IndusInd Bank - Types of IndusInd Bank Personal Loans

IndusInd Bank offers a smooth resolution of financial problems with IndusInd Bank personal loans. These loans can be used to cover medical bills, wedding expenses, international vacation expenses, or debt consolidation. IDBI personal loans do not require any security or collateral and are hassle-free with an easy application process. mymoneykarma gives you all the information you need on IndusInd Bank personal loans.

Benefits of IndusInd Bank Personal Loans

IndusInd Bank personal loans are loaded with customer-centric benefits and features. Here are a few highlights of IndusInd Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 15 lakhs. The loan amount depends on the applicant's repayment capability, credit score, credit history, and yearly income.
• Loan tenures ranging from a minimum of 12 months and a maximum period of five years.
• Affordable interest rates starting from 10% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers if the applicant is an existing customer of IndusInd Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Facility of personal loan transfer from other banks to IndusInd Bank.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.

Types of IndusInd Bank Personal Loans

IndusInd Bank offers the following types of personal loans
Personal Loans For Education

These personal loans from IndusInd Bank can be used for financing children’s education and further studies in India and abroad.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Wedding

These personal loans from IndusInd Bank can be used to cover the costs of a wedding in the family or of the applicant.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personals Loans for Home Renovation

These personal loans from IndusInd Bank can be used much like a home loan, to upgrade or renovate the applicant’s house.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Medical Expenses

These personal loans from IndusInd Bank can be used to mitigate costs of medical treatments, surgeries and other medical emergencies for parents, other family member, or the applicant itself..

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year at the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.
  

Personal Loans for Balance Transfer

These personal loans from IndusInd Bank can be used to reduce the costs of interest for other loans that have been transferred from other banks.

Eligibility Criteria

• Minimum income of Rs 25,000 per month.
• Sound repayment capability and a good credit score.
• Loans available only to salaried customers.
• An age range of 21-60 years for salaried individuals.
• Minimum work experience of 2 years with 1 year in the current organization.
• Minimum stay of 1 year at current residence.
• An age range of 25-65 years for self-employed individuals.

Bank of Baroda - Benefits of Bank of Baroda Personal Loans

Bank of Baroda provides personal loans for various financial needs at attractive rates of interest, and a suit of other benefits such as feasible repayment options and instant loan approvals. mymoneykarma gives you all the information you need on Bank of Baroda personal loans.

Benefits of Bank of Baroda Personal Loans

Bank of Baroda personal loans are loaded with many benefits and features. Here are a few highlights of Bank of Baroda personal loans.

• Significant loan amounts ranging from a minimum of Rs 50,000 to a maximum of Rs 10 lakhs. The loan amount depends on the applicant's repayment capability, credit score, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 6 months and a maximum period of 60 months.
• Affordable interest rates ranging between 11.05% - 11.6% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Various feasible repayment channels such as NEFT, post-dated cheques, and online banking.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
  

Eligibility Criteria for Bank of Baroda Personal Loans   

Applicants must meet the following criteria to get a personal loan from Bank of Baroda.

• Minimum income of Rs 1 lakh per annum for salaried customers.
• Maximum income of Rs 2 lakhs per annum for self-employed customers.
• Must be an account holder of Bank of Baroda.
• Sound repayment capability and a good credit score.
• Minimum age of 21 years.
• Maximum age of 65 years.
• Minimum work experience of 1 year.
  

Documents Required for Bank of Baroda Personal Loans

Applicants need to submit the following documents while applying for Bank of Baroda personal loan.

• Filled loan application form with necessary details such as income, occupational details, and personal information.
• Copies of the applicant's PAN card and Aadhaar card.
• Copies of income proof such as salary slips of the previous three months, bank statements of the last three months, and a copy of Form 16.
• Copies of residence proof such as telephone bills, electricity bills, or rental agreement attested by the applicant.
• Two copies of recent passport sized photographs
  

How to Apply for Bank of Baroda Personal Loans Online

Applicants can directly apply for Bank of Baroda personal loans online by visiting the Bank of Baroda website, going to the personal loan section, downloading the loan application form, submitting the filled form and uploading the required documentation on the website. The applicant profiles are then evaluated, and the loan is approved on meeting all the eligibility criteria.

How to Apply for Bank of Baroda Personal Loans Offline

To apply for Bank of Baroda personal loans, applicants can also visit any personal loan center of Bank of Baroda along with the required documents. They can fill up the application form received at the bank and submit it with the documentation. The loan is approved within 3-5 working days.

ICICI Bank Personal Loans - Benefits of ICICI Bank Personal Loans

ICICI Bank provides personal loans to its customers for different financial needs at very affordable rates of interest along with benefits like reasonable repayment options, hassle-free documentation process, top-up loan facilities, and quick loan disbursals. mymoneykarma gives you all the information you need on ICICI Bank personal loans.

Benefits of ICICI Bank Personal Loans

ICICI Bank personal loans are loaded with a host of customer-oriented benefits and features. Here are a few highlights of ICICI Bank personal loans.

• Significant loan amounts ranging from a minimum of Rs 25,000 to a maximum of Rs 20 lakhs. The loan amount depends on the applicant's repayment capability, credit score, credit history, and yearly income.
• Long loan tenures ranging from a minimum of 12 months and a maximum period of 60 months.
• Attractive interest rates ranging between 11.50% - 16.75% per annum.
• Loans available for salaried individuals, public and private company employees, and government employees.
• Special offers on the applicant being an existing customer of ICICI Bank.
• Various feasible repayment channels such as NEFT, post-dated cheques, and ICICI net-banking.
• Facility of personal loan transfer from other banks to ICICI Bank.
• Simplified loan application and approval process with minimal documentation.
• Dedicated 24/7 customer service desk for query resolution.
  

Types of ICICI Bank Personal Loans

ICICI Bank offers the following types of personal loans to its customers.
Holiday Loans

These loans from ICICI Bank can be used for planning holidays to exotic locations in India and abroad.

Eligibility Criteria

• Minimum income of Rs 17,500 per month in non-metro cities.
• Minimum income of Rs 20,000-25,000 per month in metro cities
• Sound repayment capability
• Competetive credit score
• An age range of 25-58 years for salaried individuals.
• An age range of 28-65 years for self-employed individuals.
• Minimum work experience of 2 years for salaried people, 5 years for self-employed people, and 3 years for doctors.
  

Wedding Loans

These personal loans from ICICI Bank can be used to cover the costs of a wedding in the family or of the applicant.

Eligibility Criteria

• Minimum income of Rs 17,500 per month in non-metro cities.
• Minimum income of Rs 20,000-25,000 per month in metro cities
• Sound repayment capability
• Competetive credit score
• An age range of 25-58 years for salaried individuals.
• An age range of 28-65 years for self-employed individuals.
• Minimum work experience of 2 years for salaried people, 5 years for self-employed people, and 3 years for doctors.
  

Home Renovation Loans

These personal loans from ICICI Bank can be used much like a home loan, to upgrade or renovate the applicant’s house.

Eligibility Criteria

• Minimum income of Rs 17,500 per month in non-metro cities.
• Minimum income of Rs 20,000-25,000 per month in metro cities
• Sound repayment capability
• Competetive credit score
• An age range of 25-58 years for salaried individuals.
• An age range of 28-65 years for self-employed individuals.
• Minimum work experience of 2 years for salaried people, 5 years for self-employed people, and 3 years for doctors.
  

NRI Personal Loans

These personal loans from ICICI Bank can be to mitigate costs of medical and family emergencies and is available for NRI customers.

Eligibility Criteria

• Minimum income of Rs 17,500 per month in non-metro cities.
• Minimum income of Rs 20,000-25,000 per month in metro cities
• Sound repayment capability
• Competetive credit score
• An age range of 25-58 years for salaried individuals.
• An age range of 28-65 years for self-employed individuals.
• Minimum work experience of 2 years for salaried people, 5 years for self-employed people, and 3 years for doctors.