Banking and Loans option

[chetan3335]

hi, i am new to management paradise. Please tell me that what is the use of 'Banking abd loans" option in the User cp.
Please help...

 

[abhishreshthaa]

Banking loans refers to the different types of banking loans offered by banks. Banking loans may be availed of for various purposes. Banking loans are governed by banking laws and banking regulations.

Depending on the need of an individual, banking loans should be applied for.
The banking loans are provided by different banking institutions after an individual satisfies certain criteria.

Banking laws and banking regulations governing banking loans:
The banking loans are governed by banking laws and banking regulations. The banking laws and the banking regulations may be either at the state level or at the federal level.

Banking loans rate of interest:
Banking loans are availed of by paying a particular rate of interest. The rate of interest of the banking loans may be either fixed or the rate of interest may be variable or adjustable.

The rate of interest are influenced by several factors. If one opts for a variable rate of interest, the rate of interest fluctuates with the rate of interest prevailing in the market at that point of time.

If an individual opts for a rate of interest which is fixed, the rate of interest throughout the duration of the loan period remains constant. In this case the rate of interest is not affected by the market conditions.

Factors affecting rate of interest of banking loans:
Rate of interest of banking loans usually vary due to few reasons. The reasons affecting banking loans rate of interest may be as under:
Inflation:
Inflation is one reason due to which the rate of interest of banking loans get influenced.

If there is a modest or moderate rise in inflation the rate of interest increase by a lower margin. On the other hand if inflation is high, the rate of interest also rises markedly.

The other reason for the increase in rate of interest is the prevailing economic condition of the market. The rate of economic growth also influences the rate of interest.

Banking loans are influenced by the term period of banking loans.



If an individual opts for banking loans for a long term, the rate of interest may be less depending on the type of rate of interest opted for.

Federal reserves also influence the rate of interest of banking loans.

Banking loans are also subjected to a certain term period. Term period refers to the duration of the banking loans. The duration of banking loans may vary depending on the type of banking loans availed by individuals.

On line banking loans:
Banking loans can also be availed on line or through the Internet.

One can apply for banking loans on line or through the Internet by simply filling up banking loans form depending on the type of banking loans an individual is applying for.

Applying for banking loans on line is much easier and faster as compared to applying for banking loans through a banking official.

On line banking loans provide the facility of comparing the rate of interest of different banking loan providers.

There are times when certain banking loan providers offer schemes to the banking loan seekers.

If the banking loans are applied on line , one should take care of the safety measures while performing transactions involving banking loans. One must guard oneself against Internet fraud.

Banking loans may be of the following types:
Banking loans can be availed of, for various needs like buying ones home, buying a vehicle, staring a business, enrolling for a course in the university etc.,.the list can go on.

The above facilities can be availed off in different categories of banking loans.

Banking loans can be broadly classified as undermentioned:
Secured banking loans:
Secured banking loans are availed in exchange for a security or collateral. The banking loans provider offers banking loans to an individual provided the banking loan borrowers give something as security.

In the event when the banking loans borrower is unable to pay back the loan amount, the banking loans lender has the authority to confiscate the security. Security may be ones property or some asset.

banking loans providers or lenders do not provide banking loans which exceeds the total value of the property. 100% payment is not provided.

banking loans providers may provide as much as 60% to 80% of the property value.

Unsecured banking loans:
Unsecured banking loans are the banking loans which do not require any security.

There are hardly any banking loans provider wishing to offer unsecured banking loans to individuals intending to begin a new business.

The reason being the banking loans provider or the banking loans company is not aware of the credit history of the banking loans borrower and is not intending to any risk.

Under these circumstances, unsecured banking loans are extended to individuals whose credit worthiness is known and the individual has a good report.

Tax benefits of banking loans:
One can avail of tax benefits on applying for banking loans
The interest paid by individuals are subjected to tax benefits.

Banking loans:
Banking loans of the following types may be offered to individuals:
Business banking loans:
Business banking loans are provided by banks for the purpose of starting a business.

Business banking loans are provided by banks depending on the credit history of the intending banking loans borrower.

During the early days of a business firm,operations are kept rolling with the help of the business banking loans.

Business banking loans play an important part in keeping the business rolling during the early days.

The business banking loans are provided to individuals depending on the type of business one intends to start.

Criteria for availing business banking loans:
One should have a good credit history for availing business banking loans. A good credit history gives the impression of being a good and responsible business banking loans borrower.

One can also avail of the the Free Credit Reports, offered by the government of United States Of America.

This credit report is made available to all American citizens to spread awareness among the citizens.

The Free Credit Report provides extensive information as to how one can prevent ones individuality from being misused by others.

The report also enables an individual to keep oneself abreast with the latest information pertaining to business banking loans.

Business banking loans are provided depending on the nature and the age of the business firm.

Business banking loans may be provided to well established business houses or a business firm about to be launched.

Business banking loans for small business firms:
The credit history is ascertained
Necessary documents are required to be furnished
The business banking loans borrower is required to explain the financial status of the individual
The business plan has to be dealt with.
The final step is to select a business banking loans provider having a good history and offering the optimum facilities.

Business banking loans:
Banking loans provided by business banking loan providers are as given below:
Unsecured credit lines:
The unsecured credit lines refer to the upper limit of money funded by a lender to a borrower.
The rate of interest for unsecured credit lines differ from one banking loan provider to another.
The rate of interest for unsecured credit line is also determined on the basis of business one intends to start.

Banking loans for a short term:
Banking loans for a short term period can be availed off as a capital fund.

One is required to pay the principle amount as well as the interest for every month for banking loans borrowed.

The duration of banking loans for short term period do not exceed a time frame of three years.

One is also required to opt for collateral security.

Banking loans for a long period:
Banking loans for long term are usually made available to the individuals intending to buy instrumentations or valuables.

Banking loans for a long period are granted for financing for a second time. The banking loans are to be tagged along with a security.

Banking loans for a long period requires one to make prepayments and banking loans compact connected with the banking loans.

Criteria for availing unsecured credit lines banking loans:
credit history of the borrower
age of the business firm
whether the borrower banks with the lending bank.


Business banking loans for starting a new business: Business banking loans for starting a new business are hard to avail of.

The reason for the unavailability of the business banking loans for beginning new business is that the business banking loans provider finds it hard to trust an individual intending to start a new business.

The initial years of a new business house have the tendency of facing a lot of doldrums.

Should any mishap occur, the business banking loan providers are subjected to loss. For such reasons, very few business banking loans are made available to individuals.

However, business banking loans can be availed off as personal banking loans.

Mortgage banking loans:
Mortgage banking loans can be provided to banking loans borrowers for building a new home or renovating an existing asset.

Mortgage banking loans schemes may vary from one banking loans provider to another.

The mortgage banking loans rate of interest also differs depending on factors like federal reserves, inflation, term of mortgage banking loans etc.,.

Mortgage banking loans may be of a rate of interest which may be fixed or adjustable.
If an individual opts for rate of interest which is fixed ,one is required to make payments which remains constant throughout the loan term.
On the other hand if an individual opts for an adjustable or variable rate of interest, one is required to make monthly payments depending on the prevailing market conditions.

Prior to applying for mortgage banking loans, an individual needs to qualify for the amount of money that can be borrowed.

Also taken into account is an individual's borrowing capacity.

Mortgage banking loans come for a fee which is required to be shelled out by the one applying for banking loans. The mortgage banking loans fee may range anywhere from $50 to $500.

In order to avail of mortgage banking loans one is required to furnish documents as listed below:
details about debts, if applicable
ones social security number
a detailed information about ones assets.
Ones income proof.


Mortgage banking loans can be of the following types:
Balloon mortgage banking loans:
Balloon mortgage banking loans provided to an individual offers banking loans with a low rate of interest.

Balloon mortgage banking loans are also known as reset mortgage banking loans. One is required to pay back the loan amount within a period of either 5 or 7 years.

The balloon mortgage banking loans are regarded as more dangerous than normal mortgage banking loans.

The reason for this being the sudden increase in the rate of interest.

In other mortgage banking loans, the monthly payment which one is required to pay consists of the principle amount and also the interest.

Jumbo mortgage banking loans:
Jumbo mortgage banking loans are extended to people falling in the higher income group.

These banking loans are mainly made available to individuals intending to purchase very expensive residents in very expensive areas.

The rate of interest of the jumbo mortgage banking loan, is approximately 0.5% more than conventional mortgage banking loans. Jumbo mortgage banking loans fall in the category of non conventional banking loans.

Convertible mortgage banking loans:
Convertible mortgage banking loans allow an individual to switch over to fixed rate of interest mortgage banking loans from the existing variable or adjustable mortgage banking loans.

The banking loans provider takes a flat fee for the same.


Escrow account under mortgage banking loans:
An escrow account is an account which is mainly held by banking loan providers.

The escrow account is an account from which money for the payment of insurance charges and property taxes are debited.

In a nut shell, mortgage banking loan services offered by a bank can be of the following categories:
Government loans
Construction loans
Lot loans
Conventional loans
Portfolio loans
Non traditional financing
Pre approved loans
Auto banking loans:
Auto banking loans allow an individual to own an automobile.

The bank also called the auto banking loans provider or the auto banking loans lender makes available the fund essential for the same.

The auto banking loans products offered by banks differ from bank to bank.

However, a good banking loans providing bank is expected to have the undermentioned features and advantages:
processing of auto banking loans expected to be completed without much harassment.

The first payment or the deposit should be low. Preferentially as low as about 15%.

one should be able to opt for auto banking loans which have the provisions of being customized according to ones own needs.

The duration of auto banking loans should be elastic. The term of auto banking loans should be ranging between one to 7 years.

The rates of insurance for auto banking loans offered is expected to be offering better options as compared to other auto banking loans available in the market.

The auto banking loans should allow booking of the vehicle or the automobile in advance.

The bank should be transparent in the dealings with the customers availing auto banking loans. Transparency is preferred.
Guidelines for availing the best auto banking loans:
Managing ones credit:
An individual opting for auto banking loans can follow up ones credit history prior to applying for auto banking loans.

A good credit history can work as a good qualifier for availing banking loans.
One should have a clear understanding of the amount one can shell out. One can also take the help of auto payment calculator.

One should read between lines for the fine print of the terms and conditions of auto banking loans.
A term or condition of auto banking loans may require one to make minimum deposit initially.

This feature mostly misguides people as auto banking loans seekers are required to pay more eventually after the banking loans terms and conditions are executed or implemented.

Buying a disability insurance:
The auto banking loans providers usually fear that an applicant may fail to repay the loan amount in the event of a disability. For such reason the banking loans providing bank prefer to insure one self.
An individual should opt for banking loans which are allowed to be paid off prior to the closing of auto banking loans.

One should take the initiative of making a thorough research of all the auto banking loans banking companies prior to taking the plunge.


The following automobile products are financed by auto banking loans:
The following options are offered to the customers availing of auto banking loans:

Booking the automobile in advance:
One can book the vehicle in advance and wait for the delivery of the vehicle after some time after availing of auto banking loans.

This facility is applicable for vehicles of the following companies:
Suzuki
Honda
Dewan
Indus.


Prompt delivery of the automobile:
The vehicle is delivered to the customer in no time.
This prompt service is offered to all auto banking loans borrowers.

Auto banking loans for cars or vehicles which are used: The funding option can be availed of for as long as 5 years.
The conditions governing the funding of cars which are used states that the vehicle which is used should be older than 5 years.

Salient features of auto banking loans:


Age of the applicant of auto banking loans should range between 23 to 65 years.
The amount of fund which is entitled to be financed under auto banking loans is $3572 to $83334.

The aim of auto banking loans includes funding of non commercial automobiles.

The down payment or the deposit amount should be 15% of the total value.

The following kinds of automobiles can be owned with the help of auto banking loans:
Brand new vehicles
Vehicles which are used
Vehicles which are imported.

Duration of auto banking loans:
The duration or the term of auto banking loans range from 1year to 7 years.

Document requirement for auto banking loans:
application
identity card
bank statement.
Salary statement
insurance policies , if any.


Student banking loans:
Student banking loans are provided to students for the purpose of completing ones education. There are several banks offering student banking loans.

However, the student banking loans packages may differ from one bank to another.

There are several student banking loans offered by banks in the United States of America.

List of student banking loans:
Federal Stafford Loan: Federal Stafford student banking loans under this category have the following features.

There are two varieties of the federal Stafford student banking loans:
Subsidized student banking loans

Under subsidized student banking loans, the government makes all the payments of the interests while the student is on the rolls of the school register for a minimum period.

These types of student banking loans do not require the student to make any payments whether the principle amount or the interest amount before six months after majoring in a particular subject or after leaving school.

Unsubsidized student banking loans
In case of subsidized student banking loans, one has the liberty to postpone the payment of the interest.

After a student passes out or finishes school, the student is required to make all the payments including the interests.

Discounts on student banking loans(Stafford loans ):
Student banking loans provide the incentive of allowing discounts on the rate of interest to all the eligible students.

Federal plus banking loans:
Federal plus student banking loans are provided to graduates who are about to complete their graduation.

The federal plus banking loans are also offered for undergraduate students who are dependent.

The student who applies for federal plus student banking loans do not apply due to financial emergency.

This entitles a student to avail of the federal student banking loans to fund for the entire course of education.

There is however a criteria that needs to be fulfilled.
A student is expected to fill up a form intended for financial help, prior to applying for the federal plus student banking loans.

The credit history of the student applying for the federal plus student banking loans need to be verified.

Federal consolidation banking loans:
Federal consolidation student banking loans provide the following incentives for the students applying for the federal consolidation banking loans.

The incentives are mentioned here below:
One can combine several student banking loans into one single student banking loan.

Rate of interest for these student banking loans usually have a fixed rate. This means the rate of interest remains constant throughout the tenure of the banking loans period.
Also the rate of interest of student banking loans falling under this category is low.

The payment which one is required to make every month is comparatively low. This saves the burden of paying a huge sum every month.

The student gets plenty of time for the repayment of the student banking loans.

Essential features of the federal consolidation student banking loans:

The rate of interest of the federal consolidation student banking loans offer approximately fixed rate of 6.88%.

A student enrolling for an auto payment method can avail of a saving of 1.25%.

In the event when a student selects a repayment period which exceeds the normal repayment period of 10 years, one can minimize the payments by a wide margin.

Federal consolidation banking loans can be paid back within a time span of 30 years.

An individual who avails of federal consolidation banking loans can enjoy the benefit of 1% deduction in the rate of interest provided the payment for 36 months were regular without any default in payment.


Supplemental student banking loans:
Features of supplemental student banking loans:
Based on credit
Allows a joint application holder(a person catalyzing qualification of student banking loans faster).

Eligibility depends on the credit history of the applying individuals.

One is not required to pay the principle or the interest amount of the fund during the time the student spends in school.

The supplemental student banking loans allows an individual to avail of the banking loans through the Internet.


Given below is a list of other student banking loans made available by the U.S. Bank:
U.S. Bank DirectEd Loans
U.S. Bank No Fee Education Loan
U.S. Bank Gap Education Loan
U.S. Bank Graduate Education Loan
U.S. Bank Five Star Education Loans
U.S. Bank Bar Review Education Loan
U.S. Bank GOAL Loan
U.S. Bank CASH Loans
U.S. Bank GOAL II Loan


Personal banking loans:
Personal banking loans comprise of the banking loans availed of an amount which is less than $5000.

The personal banking loans are usually unsecured banking loans.

Unsecured banking loans because in order to apply for personal banking loans. An individual is not required to provide any security or collateral.

Personal banking loans are provided by banks depending on the credit history of the applicant.

Personal banking loans are availed for purposes different from what one gets to see in other categories of banking loans.

The personal banking loans may be availed of for spending a holiday, or paying off ones medical expenses etc.,.

Similar to the other banking loans, personal banking loans are also subjected to the banking laws and the banking regulations.

The rate of interest offered by different personal banking loans providers may vary depending on factors including inflation, federal reserves, rate of economic growth of the country and also the type of rate of interest one has applied for.
The rate of interest may be either fixed or variable.
The rate of interest of personal banking loans fluctuate depending on the fixed rate type of interest or the variable type of interest rate opted for.

Benefits of personal banking loans:
One can avail of withdrawing money for free for 10 months.

An individual applied for personal banking loans can repay the amount prior to the term of the banking loans end.

an individual is able to repay the full amount within a short span of time. The individual can enjoy benefits low interest rate provided the individual has opted for a variable plan of rate of interest.

can protect ones personal banking loans repayments from untoward incidents by insuring.

Making payments can be done through auto payments which deducts the amount from the account.
Payments can also be made through the Internet or by tele banking. This saves an individual from defaulting in payments and shelling out default fees.
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