Personal loan is a comprehensive term for any loan, which does not have a limited purpose. Personal loans are very popular among the people because of its unique advantages and flexibility in the loan structure. Personal loans are available from different sources such as banks, private lenders and credit card companies. Now, acquiring a personal loan is an easy task as the online loan application and loan approval has helped considerably to reduce the task involved in the loan processing. However, the processing time will differ slightly according to the type of personal loan.
Personal loans are available in most categories of loans such as secured, unsecured, equity, refinancing, and payday. Even though the horizons of most of the loans will intersect with each other, the personal loans are generally categorized into secured loan and unsecured loan. The secured personal loans
…show more content…
The unsecured personal loans have the unique advantage of quick processing as it does not involve any property appraisal and needs only a less documentation. The unsecured personal loan does not arise any risk for the borrowers, as it does not require any collateral security, but the lenders are stringent about the conditions since they are risking their amount. The unsecured personal loans may be characteristic of quick turnaround time as the lender will be in the urge to get back the money. However the risk involved in the unsecured personal loans are compensated by levying high interest rates. The credit card loans and payday loans can be reviewed as types of unsecured personal loans.
The eligibility criteria to apply for the personal loan include employment for at least the last three months, and the income proof. The credit is not a considerable criterion for personal loans and some lenders are ready to offer personal loans to bad credit people too. However the interest rates of bad credit personal loans are considerably
The special equity applicable to a case where a wife gives a guarantee of a debt for the benefit of her husband and where the wife's agreement to give the guarantee was obtained by undue influence, pressure or misrepresentation on the part of the husband or without an adequate understanding of the nature and effect of the transaction, she has failed to establish that she executed the relevant guarantee as a result of the exercise of actual undue influence on the part of the husband. In my opinion, in today’s society married women do not strive the need for the rule of special protection found in Yerkey. In addition banks have no obligation to take caution into transactions where a married women is to become a surety for her husband even though it may be a possible disadvantage to her.
Palgo Holdings Pty Ltd carried on a business of making small secured loans. Each borrower would sign a two-part document. The first part of the document, titled “Secured Loan Agreement”, recorded the amount of the loan and the date on which the principal and interest was due. The second part of the document, titled “Bill of Sale/Goods Mortgage”, was made as a deed between the borrower as mortgagor and the lender as mortgagee. It also recorded that the terms of the bill of sale were set out in the schedule of terms attached.
Personal Finance Essay Many students in today’s world believe they need to take out student loans for college. I believe you don’t have to take that path. Student loans are hurting many students who attend jcollege, and I believe that the loans should stop. Any student can get through college and be debt free at the end.
One cold morning Sam Black woke up with aching chest pain. Troubled by this new condition he went to see his Heart Doctor. Little did Sam know that hours later he would be lying on the operating table in route for a triple bypass surgery. The surgery went as planned, but it was not the last of them. Sam was sent to many specialists and rehabilitation centers, building a large bill, which they had no money to pay them with. He still pays several grand a year for the medication he is prescribed. Years after the operation Sam and his wife, Elsie, have narrowly escaped foreclose, however the most problematic debt they have is the hundreds of small term loans with interest rates in the triple digits. Elsie once said in an interview regarding the loans they had to take out, “You can’t really keep up with them” (Wright, 2011). Almost a decade later Sam has trouble speaking and has to carry around an oxygen tank. This is a normal couple that got caught in the continuous cycle of payday loans. Like other millions of Americans The Black family settled for shady overpriced short-term loans.
There are two major different types of student loans; they are Federal and Private Loans. Federal loans are loans offered by the government. There are three different types of Federal Student Loans and they are Federal Stafford Loan, Federal Plus Loan, and Federal Perkin Loan.
Personal - refers to the knowledge we have of ourselves and what we have seen and experienced. This type of knowledge comes to us through the process of observation, reflection, and self-actualization.
Microcredit group lending practices aim to solve both of these problems that prevent poor borrowers from receiving credit through traditional methods. Individuals in the recipient community form groups among themselves and receive a loan as a collective with the knowledge that every member of the group is liable for the debts of the other members. The fact that these groups are voluntary and among people who live in the same community greatly reduces the risk of unreliable individuals receiving loans.
Abstract As people of many ages wish to further their education outside of high school, they tend to take out student loans in order to fulfill this wish since the large tuition payment is not in their budget. Paying for an education that presents a degree seems easy to many by taking out large loans to pay for their education. Recently, student loans have challenged the economy of Americans. Education is perceived as a necessary expense to many, in which they do not mind putting a burden on the economy for.
Rohan Perera, was unable to submit audit report at dead line given by the Central Bank. He requested to extend the deadline by stating that more time required for conducting the external audit. The bank also did not have customer grading system. Therefore it lost the chance of customer monitoring. When granting a loan to a customer the bank adopted poor policy. The credit department did not have followed the written manual offered by the Central Bank which should follow before granting a loan. The bank has granted loans without proper evaluations about the customers. Loans had granted to the customers who had no any contractual agreement. Granting fresh loans to recover overdue loans was a general practice followed by the
Many countries in the world have a concerning percentage of poverty in which both food and financial sources are disturbingly limited. Most of the world’s poor have suffered from the deficits of using financial services. Because of a bad credit history or a lack of proof of employment, financial services are most often not accessible for the low income client market. In the western and developing countries, people are being eliminated by the traditional financial system based on the deficiency of guarantees of unaffordable costs to process the loan application, and the lack of data related to their credit history. These factors sometimes lead to borrowing illegally, and neglecting the regulation of lending.
The lifestyle of people across the world is developing rapidly. As there is a growing concern for people about the lifestyle and way of living, the scope for the microfinance industry is also at a growing pace. A large number of people across the world prefer finance for the purpose of purchase of consumer durables as well as lifestyle products. As the credit card EMI options are more expensive, people prefer NBFCs for the purpose of consumer durable loans. The project done in bajaj finserv explains the role of NBFCs in the consumer durable loans and the procedure undertaken in order to disburse the consumer durable loans.
The study defines “default” is a risk to the repayment history of borrowers where the borrowers are missed at least three installments in 24 months. This showed a symbol and indication of borrower behavior will actually default to cease all repayments. This definition does not mean that the borrower had entirely stopped paying the loan and therefore been referred to collection or legal processes; or from an accounting perspective that the loan had been classified as bad or doubtful, or actually written-off (Pearson & Greeff, 2006).
Obtaining a home loan is comparatively easier now a days. On the other hand, there are eligibility criteria that have to be met. The amount of the loan given by financial institution depends upon factors including your Salary, age, qualifications, work experience, number of dependents, spouse's salary, stability of salary and employment, assets, liabilities, etc.To get any home loan some relevent documents are required to support the deal. Self employed and salaried people require different documents to support the deal.
There are two main ways to raise money for a project, growing business, or startup company: debt financing and equity financing. Debt financing includes long-term loans, while equity financing is the process of raising capital through the sale of shares in an enterprise. It is essentially the sale of an ownership interest to raise funds for business purposes.
An important term that is cropping up everywhere nowadays is “Microfinance”. It is important for every person interested in the field of finance to be aware of this term, as in the coming days Microfinance is expected to be one of the brightest and the most appealing sector of the Indian Economy.