Tag Archives: loan
How Can One Get An Auto Loan With Zero Credit History?
There are millions of people affected by the recent credit crunch and the global economic recession. No wonder, there are bountiful numbers of persons who have got a staggering bad credit history because of the job loss and pay cuts. However, the world economies are gaining back their momentum sooner than expected. The governments still support the stimulus packages which create a healthy atmosphere for the banks to offer more numbers of loans. People are very much encouraged to take up loans at cheaper interest rates. Generally, lenders will hesitate to offer loans to borrowers with bad credit history or zero credit history. Lenders will try to neglect auto loans for people with zero credit history. One of the best ways to obtain loans is to start building a good credit score.
A co-signer might help to obtain the loans. A co-signer is the person who is willing to pay the loan in case if the borrower fails to do it. He acts as a guarantee while obtaining the loan. Building a good credit score will not take too longer and there are lot more easier ways to do it. The first step to be done is obtain a secured credit card. It is important to make the first few payments very promptly. Repeating this process for fewer months will substantially improve the credit scores. This might be a supporting factor at the time of obtained auto loans with zero credit history. This condition does not exist when you make your credit cards payment properly.
Online lenders can be of immense help to obtain the loans. Online financing will save time and money in a better way. This is due to the fact that most of the online lenders work below the subprime rates and act as subprime auto lenders. Individuals who have zero credit history can approach such organizations and get approval. However, the interest rates might be higher. Making comparisons and obtaining quotes from 3 or more online lenders will put the consumers in the drivers seat and help them to secure a better interest rate. The market faces a stiff competition from various lenders. Hence, the consumers should make use of this opportunity to buy their dream vehicle.
The present market conditions help the consumer to obtain auto loans with zero credit history or even after bankruptcy. This comes at a cost of higher interest rates. A co-signer will help to obtain the loan hassle free. Times have changed now and it is not mandatory to have a co-signer to get the loan. These can also act as the stepping stones to build up the credit history. The monthly payments can be adjusted according to the income level. The loan amount might go up if it is an unsecured loan. Gone are the days where lenders and banks demanded lots of documents and procedures to sign up for an auto loan with zero credit history. People can easily step down their streets to take delivery of their dream vehicle within 2 or 3 days of time if they do their research work efficiently.
10 Steps to peaceful Home loan processing (Page 1 of 3)
Building a home of our dream is a life time achievement to a middle class person. For making this dream come true to a middle class person banks are playing a significant role by providing them with the right home loans at door steps. But if do not plan properly and if we are not aware of the policies, terms and conditions of the bank we will end up paying more to the bank in terms of principal and interest components.
For the convenience of our customers we planned to give a 10 steps plan which the customer has to understand to take a home loan to build a dream home of their life.
Please read these 10 steps of processing carefully and follow these to make the transaction a memorable moment in your life.
Before going for a home loan processing please be aware of your loan product and the terms and conditions that the Bank is asking to fulfill to have the loan done. There are different products for which bank is having different terms and conditions for each product. Normally the Bank will have the below products which come under home loans.
a. New Purchase of Flat or Independent House: In this a customer can purchase a New Flat or Independent house of his choice which is under construction or in ready to occupy position.
b. Resale purchase: This product is applicable to those customers who wants to go for a Flat or Independent house which was already owned by some body else.
C. Plot + Construction: The product is applicable to those customers who want to buy a Plot and do the construction immediately, but banks ask you to start the construction with in the specific period of time.
d. Balance Transfer (BT): A person who wants to transfer a loan from one Bank/Financial Institution to other can opt for this product.
e. Construction: A person who wants to construct a house in his/her plot can go for this loan.
f. Plot: A customer can go for this loan who wants to purchase a Plot which is under HUDA, Municipality and Grampanchayat limits.
g. Enhancement: Increasing the loan amount which was already taken from the same bank is called enhancement.
h. Top Up: This loan is just a facility that banks provide to customers to take on the basis of the previous loan and the repayment track.
I. Mortgage: It is the loan that a customer can opt by depositing the original property documents with the bank which he already owns.
2. Rate of Interest (ROI): The most important point to be taken care of in taking a home loan. There are two types of interest rates which banks normally have i.e Floating and Fixed.
Floating Rate of interest is subject to change according to the money market conditions. If the interest rate increases then the bank will increase the Rate of Interest on your loan vice versa.
Fixed Rate of Interest is fixed for the complete tenure of for over a period of time depending on the Banks, but Banks reserve the right to modify the rate of interest if they is any huge differences in the money market conditions.