Instant personal loan
Think about your future , your goals, aspirations, or the need to acquire your home. While it's only human to aspire for more and want the best, for most people, there is a gap between such hopes and reality. This gap is financial and bridging it can be a complicated process. May be it is time to stop and consider the best way to resolve this frustrating situation. May be it is time to consider taking a loan. To cross the gap and fulfill our dreams, borrowing is a financial bridge that most of us use at one time to another, be it for personal desires, professional enhancement, a better education for your children, or buying a home.
PERSONAL LOANS .
Salient Features: .
Loans are available for the salaried, for self-employed professionals and businesspersons.
Flexible loan tenor of up to 4 years (i.e. 12, 18, 24, 36, 42, or 48 months) .
Loans available from a minimum of Rs. 50,000 up to a maximum of Rs. 500,000.
Easy monthly repayment through Equated Monthly Installments (EMIs) with either post-dated cheques or direct debit to your bank account.
Transfer of an existing personal loan from another bank to your bank, at attractive interest rates.
Existing customers are entitled to special relationship discounts on processing fees.
No collateral/guarantor required.
Easy documentation and quick disbursal.
Hassle-free loan based on 12 months credit card/retail loan track record.
Special schemes for corporate salary accountholders holding accounts for over 6 months.
Personal loans can be used for:
Purchasing of consumer durables or equipment.
Home-related expenses.
Retiring other debts.
Education or marriage expenses.
Holiday travel.
Purchasing a car or a two-wheeler.
Investment in new share issues or in secondary markets.
To transfer an existing loan from another bank.
Top-up loan.
Any other personal needs and contingencies Loans available for business expansion purposes.
Eligibility: .
Personal loans are offered to salaried/self-employed individuals who are resident in India.
Professional self-employed individuals eligible for a personal loan are Doctors, Chartered Accountants, Cost Accountants, Company Secretaries, Architects, Engineers and Management Graduates.
GLOSSARY OF TERMS USED IN PERSONAL LOANS
Amortization .
The process of writing off or liquidating an asset or loan periodically on an installment basis.
Annuity .
A series of receipts or payments of a fixed amount for a specified number of years. Alternatively, a pattern of cash flows that are equal in each year, that is, equal annual cash flow.
Bad debt .
Debts that are not collectible and therefore, proves to be of no worth to the creditor.
Bridge Loan .
Refers to short-term loan to fund temporary needs as long as permanent financing is not available.
Capital Asset Pricing Model (CAPM) .
It explains the behavior of security prices and provides a mechanism whereby investors could assess the impact of a proposed security investment on the overall portfolio risk and return.
Capitalization Rate .
A rate of interest (discount) employed to calculate the present value of future cash flows. This is the rate that investors expect.
Capital Market.
The channel through which savings become available for industrial investment.
Collateral .
Assets that are offered as a security for the repayment of a loan or other credit.
Collection Period .
It is the average period taken to collect receivables. It is equal to the number of days in a year divided by debtor's turnover (total credit sales/average debtors).
Coupon Rate .
It is the stated rate of interest on a bond or debenture.
Covenant .
A binding agreement promising to do or not to do a particular thing.
Credit Analysis .
The process of determining whether an applicant satisfies the credit standards of a firm and the amount of credit that should be extended to him.
Debt .
An amount of money borrowed or owed by one party to another. Example, loans, commercial paper, and bonds.
Default Risk .
Uncertainty of expected returns from a security attributable to possible changes in the financial capacity of the issuer to make future payments to the security owner.
Delinquent .
A situation where one fails to make payment, which can lead to foreclosure.
Endowment .
It is a fund containing assets whose use is restricted only to the income earned by these assets.
Equity Funds .
Long-term funds provided by the owner of a firm and consist of ordinary share capital and retained earnings.
Factoring.
It is an agreement in which receivables arising out of a sale of goods/services are sold by a firm (client) to the factor (a financial intermediary) because of which title to the goods/services represented by the said receivables passes on to the factor.
Financial Lease .
It involves a relatively long-term commitment on the part of the lessee.
Float .
The amount of money tied up in cheques that have been drawn but have not been collected.
Floatation Costs .
Costs incurred in issuing securities. For e.g. underwriting & brokerage costs, printing, legal, publicity, etc.
Guaranteed Loan .
In this case, a third party guarantees the payment of a loan if the borrower fails to perform.
Hedging Approach .
Financing the short-term requirements of funds by short-term and long-term requirements by long-term funds.
Inter-Corporate Deposits .
These are short-term deposits with other corporate firms.
Internal Rate of Return .
The rate of return that equates the present value of future cash flows to the initial investment on the project.
Leveraged Lease .
A lease arrangement, which involves a third party, which is a lender in addition to the lessor and lessee (also referred to as third-party lease).
Limited Liability .
The shareholders? liability limited to the amount invested in the business.
Line of Credit .
A bank agreement stating a company may borrow at any time up to the specified limit.
Loan Agreement .
A written contract between a lender and a borrower, stating the rights and obligations of both the parties in regards to a specified loan.
Loss Reserves .
Reserves set out by the board of directors of a company to meet unanticipated future loan losses. These reserves are not used for lending purposes.
Negotiable Certificates of Deposits .
It is a marketable receipt of funds deposited in a bank for a fixed period.
Off-Balance Sheet Financing .
Hidden form of debt without being shown as a liability.
Opportunity Cost .
The return that would have been obtained from an alternative investment.
Option .
It provides its holder with an opportunity to purchase or sell a specified number of shares at a stated price or on before a specified period.
Pac-mans .
A form of tender offer under which the firm under attack becomes the attacker.
Portfolio .
A group of assets or investments held by an investor, Investment Company or a financial institution. For example, bonds, stocks, mutual funds, etc.
Promissory Note .
A written agreement sent by the borrower to the lender promising him to repay a specified sum of money at a stated time.
Receivables .
Money owed to a business by customers who have bought goods or services on ordinary extension of credit.
Recourse .
The right to demand payment from the guarantor of a commercial paper when the borrower fails to pay.
Roll Over .
A situation where parties to the contract agree to carry over the loan for another stated period at the time of maturity.
Safety Stock .
The minimum level of inventory that provides a cushion against the possibility of being out-of-stock because of change in demand.
Security.
Any thing offered or given to fulfill the performance of a contract. For example, real estate, stocks, fixed assets, jewelry, etc.
Stretching Accounts Payable .
Strategy of paying bills as late as possible so long as the firm?s rating is not damaged, taking into account any cash discount offered.
Warrant .
An option that gives right to its holder to purchase a specified number of equity shares at a pre-decided price over a certain period.
White Knight .
A company that comes to the rescue of a firm that is being targeted for a takeover.
Write off .
To consider as a loss or failure in case of uncollectible investments.
Yield .
The actual return received by an investor.
Zero Coupon Bond .
The bond that does not pay any interest. It is issued at a price lower than its maturity values.
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