personal finance planing on credit

8/8/2019 Personal Finance Planing on Credit

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ASSIGNMENT OF PERSONAL FINANCE MANAGEMENT

SUBMITTED TO

VIKAS AANAD SIR

SUBMITTED BY

VIBHU BABBAR

R1902

RR1902A12

10901344


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Various credit sour ces f or loans

There are so many types of credit sources available today make many people becomeconfused. In this post well try to describe various types of loans currently available, whichmay be useful to you in determining the type of loan is right for you;

Bad C redit Persona l L oan

A Bad Credit Personal Loan is a loan made for people with a bad credit rating. However created, your past record of County Court Judgments, mortgage or other loan arrears can liveon to deny you access to finance that other people regard as normal.

Purpose :-Home improvements or buy the new car you want.

Bad credit personal loan is a credit for those person who want to purchase a new car or theywant to reconstructive house. So If you are a homeowner with equity in your property, a BadCredit Personal Loan can bring that normality back to your life. Secured on your home, a BadCredit Personal Loan can give you the freedom, for example, to do the home improvementsor buy the new car you want.

The limit of the bad credit personal loan is up to 125% of your property value.

B ridging L oan

Purpose:- Loan used to bridge

This short term loan is a kind of loan used to bridge the financial gap between monies

required for your new property completion prior to your existing property having been sold.Bridging loans are short-term loans arranged when you need to purchase a house but are cantarrange the mortgage for some reason, such as there is a delay in selling your current home.The beauty of bridging loans is that a bridging loan can be used to cover the financial gapwhen buying one property before the existing one is sold. A bridging loan can also be used toraise capital pending the sale of a property. Bridging loans can be arranged for any sum andcan be borrowed for periods from a week to up to six months. A bridging loan is similar to amortgage where the amount borrowed is secured on your home, but the advantage of amortgage is that it attracts a lower interest rate. While bridging loans are convenient, the truthis that the interest rates can be very high.

Business L oan

Purpose:- for business purpose

As the name suggest business loan is designed for a wide range of small, medium and startup business needs including the purchase, refinance, expansion of a business, development loansor any type of commercial investment. Business loans are generally available at reallycompetitive interest rates from leading commercial loan lenders. A business loan can besecured by all types of business property, commercial and residential properties. BusinessLoans can offer up to 79% LTV (Loan to Valuation) with variable rates, depending on status


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and how long the term is. Business loans are normally offered on Freehold and longLeasehold properties with Bricks and Mortar valuations required. Legal and valuation feesare payable by the client.

P ayday L oan

Purpose:- for fulfilling short term needs

It is for those people who are already employed. Payday Loans also known as Cash Loans arearranged for people in employment who find themselves in a situation where they are short of immediate funds. A Payday Loan can assist you in this situation with short term loans to helpyou get through tough financial times. Loans are repayable on your next payday, although itis possible to renew your loan until subsequent paydays. To apply for a loan you must be inemployment and have a bank account with a checkbook. A poor credit rating or debt historyis initially not a problem.

C ar L oan

Purpose for purchasing a car:-

The basic types of car loans available are Hire Purchase and Manufacturers schemes.Hire purchase car finance is arranged by a car dealership, and in essence means that you are hiringthe car from the dealer until the final payment on the loan has been paid, when ownership of the vehicle is transferred to you. A Manufacturers scheme is a type of loan that is puttogether and advertised by the car manufacturer and can be arranged directly with them or

through a local car dealership. You will not own the car until you pay back the loan in full.The car would be repossessed if you default on repayments.

Home L oan

Purpose:-for purchasing a home

A Home Loan is a loan secured on your home. You can unlock the value tied up in your property with a secured Home loan, and many people choose to do so with this kind of loan.The loan can be used for any purpose, and is available to anyone who owns their home.Home loans can be used for any purpose such as, home improvements, buying a new car,taking a vacation, paying of credit cards and debt consolidation.

Home I mprovement L oan

Purpose:-for Home Improvement

A Home Improvement Loan is a low interest loan secured on your property. With a HomeImprovement Loan you can borrow money with low monthly repayments.


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The loan can be repaid over any term between 5 and 25 years, depending on your availableincome and the amount of equity in the property that is to provide the security for the loan.You need to talk to your lender about that. A Home Improvement Loan can help you withinstalling a new kitchen, bathroom, extension, loft conversion, conservatory, landscapingyour garden or purchasing new furniture. You can even use it on non-house expenditure likea new car or repaying credit card or other debts, which makes it convenient and useful for

multi purposes.

P ersona l L oan

Purpose:- for personal use

There are two categories of personal loans: secured personal loans and unsecured personalloans See individual titles below. Homeowners can apply for a Secured personal loan(using their property as security), whereas tenants only have the option of an unsecured

personal loan.

R emortgage L oan

A remortgage is changing your mortgage without moving your home. Remortgaging is the process of switching your mortgage to another lender that is offering a better deal than your current lender. This process is done to help you save money. A remortgage can also be usedto raise additional finances by releasing equity in your property.

You can borrow money and rates are variable, depending on status.

Secured L oan

A secured loan is a loan that uses your home as security against the loan. Secured loans are

suitable for when you are trying to raise a large amount; are having difficulty getting anunsecured loan; or, have a poor credit history. Lenders can be more flexible when it comes tosecured loans, making a secured loan possible when you may have been turned down for anunsecured loan. Secured loans are also worth considering if you need a new car, or need tomake home improvements, or take that luxury holiday of a lifetime. You can borrow anyamount of money and repay it over any period from 5 to 25 years. You simply select amonthly payment that fits in your current circumstances.

Secured P ersona l L oan

A Secured Personal Loan is a loan that is secured against property. Secured personal loansare suitable for when you are trying to raise a large amount; are having difficulty getting an

unsecured personal loan; or, have a poor credit history. Lenders can be more flexible when itcomes to Secured personal loans, making a Secured personal loan possible when you mayhave been turned down for an unsecured personal loan. Secured personal loans are also worthconsidering if you need a new car, or need to make home improvements, or take that luxuryholiday of a lifetime.

You can borrow any amount you need and repay it over any period from 5 to 25 years.


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Student L oan

Purpose:-for study purpose

A student loan is way of borrowing money to help with the cost of your education.Applications are made through your Local Education Authority or the government. A studentloan is a way of receiving money to help with your living costs when youre attendingcollege. You start paying back the loan once you have finished studying, provided your income has reached a certain level.

T enant L oan

A tenant loan is an unsecured loan granted to those that do not own their own property. Atenant loan is always unsecured because in most cases, if you are renting your accommodation, you do not have an asset against which you can secure your loan. Tenantssometimes find that some loan companies will only lend money to homeowners. If you are atenant you need to look for a company, bank or building society willing to give you anunsecured loan.

Unse cured L oan

An unsecured loan is a personal loan where the lender has no claim on a homeowners property should they fail to repay. Instead, the lender is relying solely on the ability of a borrower to meet their loan borrowing repayments. Because you not securing the money youare borrowing, lenders tend to limit the value of unsecured loans. The repayment period willrange from anywhere between six months and ten years. Unsecured loans are offered bytraditional financial institutions like building societies and banks but also recently by thelarger supermarkets chains. An unsecured loan can be used for almost anything a luxuryholiday, a new car, a wedding, or home improvements. An unsecured loan is good for peoplewho are not homeowners and cannot obtain a secured loan for example; a tenant living inrented accommodation.

Unse cured P ersona l L oan

An Unsecured personal loan is a personal loan where the lender has no claim on ahomeowners property should they fail to repay. Instead, the lender is relying solely on theability of a borrower to meet their loan borrowing repayments. The amount you are able to

borrow varies. The repayment period will range from anywhere between six months and tenyears. An Unsecured personal loan can be used for almost anything a luxury holiday, a newcar, a wedding, or home improvements. An Unsecured personal loan is good for people whoare not homeowners and cannot get a secured loan. For example, this is a good program for

renters.


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Need of loan (5 l akh)

Actually I want to do a MBA and I have not enough money for doing a study. So I want totake a study loan for doing MBA and I choose a bank of India for taking a loan .there aremany factors behind it, like interest rate is less as compare to other banks and many more

P urpose: Pursuit of studies In India and abroad

Approved C ourses:

Graduate and post-graduate courses in engineering, computer technology, medicine etc.Allvocational courses/job oriented diploma courses, recognised by govt and universities. Similar courses pursued in universities abroad. Full time post graduate research in any of theaforesaid subjects.

El igibi lity: A person Should be a citizen of India. For vocational training courses and job oriented courseage of the individual should be between 15-28 years and 18-30 in case of post graduatecourses and/or studies abroad. The applicant should have a good academic record. For studiesabroad, the candidate should have secured admission in a particular university after havingappeared in the specific entrance examinations. The applicant should have secured aminimum of 50% marks in the major subject. In case of SC/ST candidates eligibility normsmay be relaxed.

A mount of loan: The loan could vary depending on the specific subject requirement. For studies abroad Rs15lac. For studies in India Rs 7.5lakhs

M argin Up to Rs 4lakhs -nilFor Studies in India- 5%For studies abroad-15%

R epayment Within 15 years from the first date of disbursement, including moratorium period

Card Issuers Interest Rate (in %) APR(in %)Bank Of India 34.49 4.59

ICICI Bank 41.75 5.56SBI Bank 36.59 4.87

Standard Charted Bank 44.75 5.96HDFC Bank 35.49 4.73


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I choose this bank because the first reason is that this is a government bank, and second isthat the interest rate is less than other banks and the APR is also low of the bank of India.Because I compare the interest rate with other bank like Punjab national bank charge a 12%interest up to 4 lac, state bank of Hyderabad charge 10%. So in this way I can find that whichis best and cheap source for taking a study loan, so I chose a bank of India

C redit card comparison:-

1. Discover Student More Card

Built for actual exam-taking, power nap-loving students.

y 5% Cash back Bonus* in categories that change like travel,department stores, gas, groceries, restaurants, and more meansextra money for you, and extra toppings for your pizza.

y 5% to 20% Cashback Bonus at our exclusive (as in you need

to be on the list) online shopping mall.y Up to 1% unlimited Cashback Bonus on everything else you

buy - from textbooks to toothpaste, automatically.

Intro APR Intro Period Regular APR Annual Fee Balance Transfer Credit Needed0%* 6 Months* 13.99% - 20.99% (Variable)* None No Fair

2.Discover Student Card - Monogram CollectionBuilt for actual exam-taking, power nap-loving students.

y 5% Cashback Bonus * in categories that change like travel,department stores, gas, groceries, restaurants, and more meansextra money for you, and extra toppings for your pizza.

y 5% to 20% Cashback Bonus at our exclusive (as in you need to be on the list) online shopping mall.

y Up to 1% unlimited Cashback Bonus on everything else you buy - from textbooks to toothpaste, automatically.

Intro APR Intro Period Regular APR Annual Fee BalanceTransfer Credit

Needed0%* 6 Months* 13.99% - 20.99% (Variable)* None No Fair


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3.Citi Forward Card for College Studentsy No Cosigner requiredy APR reduction on purchases when using credit wiselyy 100 ThankYou Points each billing period that you pay on

time and stay under your credit liney Earn up to 8,500 bonus points after you sign up for paperless

statements and make $250 in purchases within the first 3months of

IntroAPR Intro Period Regular APR

AnnualFee

BalanceTransfer

Credit Needed

0%* 12 months on BalanceTransfers*12.99% - 19.99%*

(Variable) None Yes Good

4. Discover Student Open Road CardPut a road trip in your wallet.

y Double Cashback Bonus at any gas station and anyrestaurant (yes, even on those infamous 1 AM burritos.)

y Hello 5% to 20% Cashback Bonus at our exclusive onlinemall; goodbye mall-walkers.

y Up to 1% unlimited Cashback Bonus on everything else you buy along the way, automatically.

y Turn your Cashback Bonus into even bigger rewards byredeeming for gift cards or eCertificates from more than 100

brand-name retailers.

IntroAPR

IntroPeriod Regular APR

AnnualFee

BalanceTransfer

Credit Needed

0%* 6 Months* 13.99% - 20.99%(Variable)* None* No Fair


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MY CREDIT CARD

Citi Dividend Platinum Select Card for CollegeStudents

y No Consigner Requiredy Earn 5% Cash Back on purchases at supermarkets, drugstores,

gas stations, convenience stores & utilities (including cable)for 6 months; 1% thereafter*

y Earn at least 2% cash back in popular rotating categories likerestaurants, apparel, hotel and more. Enrolment required*

y Earn a full 1% cash back on all other purchases*

IntroAPR Intro Period Regular APR

AnnualFee

BalanceTransfer

Credit Needed

0%* 7 months onPurchases*12.99% - 21.99%*

(Variable) None No Good

C omparison-

According to me Student credit cards are, simply put, credit cards intended to benefit studentsin high school and college. If I am a student and looking for a reliable credit card option,student credit cards should definitely be on list of considerations to make. Some studentcredit cards even offer special benefits for students depending on what company is offeringthe card, so make sure to weigh your options in order to best benefit from what credit cardsdesigned specifically for students have to offer. From the first day that you go to school,having student credit cards at your disposal is a smart way to go. From the first day that yougo to school, you will notice that there are many opportunities out there for acquiring student

credit cards. It is important that you prevent yourself from becoming wide eyed and navewhen it comes to signing up for student credit cards because not all are everything that theyare cracked up to be.

College students need money, and many of the credit card companies are taking advantage of this necessity by developing student credit cards, which are credit cards that are designedspecifically to suit students in college and in high school. These student credit cards generallyhave high interest rate, monthly and yearly fees and other charges that students will have tocontend with over time. In order to get what you want when it comes to student credit cards,you need to first know what you want before you ever apply for a student credit card. If youdo not know what you want when it comes to student credit cards, you may end updissatisfied with what you end up with. The truth is, credit card companies make acommission off of you rather than necessarily having your best interest in mind. Someone hasto have your best interest in mind when it comes to applying for student credit cards, andthat's you.

When choosing student credit cards, make sure that you look at the inside and outside of every card you consider. Research each of the student credit cards that you are considering,looking at how it may possibly benefit you. What are you going to get out of each of thestudent credit cards that you are considering applying for? Which student credit cards look

beneficial to you and which look like they will hurt you in the end? Look for the major logo


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on each of the student credit cards you consider as well, because there are a wide variety of different major logos out there, and not all are as beneficial as others.

When it comes to student credit cards, it is always best to research first rather than simply applying before youread the fine print. No two student credit cards are alike, so make sure that you get the one that is best tailoredfor your special needs.

http://www.credila.com/

http://www.hindustanlink.com/careertex/educational-loans-india.htm

http://www.customercreditcards.com/student-credit-cards.

http://lcsource.org/the-things-you-should-know-about-student-loans/#more-82

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