| Need funds: Encash your home equity
When Nishant Sheth, a textile entrepreneur , was contemplating borrowing funds to expand his business, the first option that came to his mind was applying for a personal loan.
But he thought over this and had almost approached a bank, when his father asked him to reconsider.
His father suggested mortgaging the house where Nishant lived, pointing out that a loan against property would work out to be cheaper than a personal loan.
Nishant saw merit in his father's words and decided to approach the bank for a loan against his property. .
Seattle Investor Group Calm as Markets Swing
It certainly could be. Thirty-year fixed-rate mortgages have been dropping since Christmas. The average is now 5.5 percent, quite low by historical standards. So if you have an adjustable rate mortgage that's going to reset, now could be an excellent to time to swap into a fixed-rate loan. Lending standards have changed since the "anything goes" days of the housing bubble that burst last fall. "Here's why," says Greg McBride, senior financial analyst with bankrate.com, a personal finance Web site. "There are actually standards now. Instead of the loan requirement being the ability to fog a mirror, the people now in the best position to get mortgages have good credit, proof of income and either money for a down payment or equity in an existing house." Lower interest rates will take some of the sting out of adjustable rate loans that are resetting higher.
Motley Fool Personal Finance: Beware The Two-Tier Mortgage
If you dislike horror stories then please look away now, especially if you borrow money. That's because a two-tier mortgage market is just around the corner. According to the Bank of England, lenders scaled back lending to households in the last three months of 2007 as strains in the money market took its toll. The Bank's quarterly credit survey shows that households found it increasingly difficult to borrow money towards the end of last year. Unsecured lending, which includes credit cards, personal loans and car financing, fell. Worryingly, secured lending, which are loans secured against properties, also fell as a result of banks reducing their appetite for risk. The upshot is that some homeowners who are coming off fixed-rate mortgage deals may find it difficult to get new loans.
The Man Who Is Creating a World Without Poverty
Since it first opened, Grameen's loans have totaled the equivalent of $6 billion, and virtually all are repaid, despite the initial poverty of the borrowers. And Grameen is no longer the only microcredit institution in Bangladesh. There are a number of others, such as the Bangladesh Rural Advancement Committee. Microcredit today reaches four-fifths of all poor families in the country, and we expect to reach all of them within five years. One of the key ideas behind Grameen Bank is the notion of “social collateral." Could you explain how this works, and how you came up with the idea? Is this a way of assuring that the loans are used for business rather than personal consumption, and are eventually repaid? Although the bank gives loans to poor women, there are no formal guarantees the loans will be repaid: There are no legal documents, no lawyers to assure repayment — no one can be sued.
Bank demands EMI without a loan
Having to pay a loan installment without getting a loan sounds strange, that's what happened to a loan applicant in Hyderabad. Harassed and aggrieved the man has now filed a police complain.
Mohommad Bin Mahfooz applied for a personal loan of Rs 2.24 lakh from a leading corporate bank at Hyderabad in October last year.
He was told the amount would be dispatched within ten days. He never received the amount, instead Rs 8098 was deducted from his bank account in December as a monthly installment towards repayment.
Mahfooz said, ''I told them ECS has been cut, what to do? They said we can't do anything and you cancel the loan. We will deduct charges and return the amount. How is that fair?''
The bank says the loan cheque had been dispatched but returned undelivered and that they could not stop the EMI from being collected.
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