Browse Category

Finance/Business

Quick Loans: meaning and usage of loan

In today’s world where everyone is moving at a frenetic pace, it becomes quite difficult for some people to keep track of their finances. This can lead to complicated and ugly situations and to tide over their fiscal woes, they turn to borrowing. While some have the wisdom to make the right choices, a lot of individuals make the wrong decisions, especially when they are under pressure. Turning to pikavipit seems the easiest solution as many of these types of loans are available online and they advance you the money required in a matter of minutes. Their application process is very simple and the funds are transferred directly to the borrower’s bank account.payday-cash-advance-loans

Why Quick Loans?

There are various factors that turn people to borrowing. Extravagant lifestyles or bad investments, or emergencies and unforeseeable events of many kinds makes people to choose this option as it is faster than traditional sources like banks. Also, many a time the borrowers may have already tried and failed to obtain loans banks and other financial institutions. Quick loans offer the easy way out of troubles as they provide the money almost instantly. Given the fact that these loans, being of small value inherently don’t require a collateral security also attracts those people who don’t qualify for loans from banks. payday-loan-1

Repayment

Since these loans are given at short notice and without any security and for very short loan periods, the interest rates are higher than banks. At the time of taking these loans, most people don’t realize the impact of the higher interest rate. It is a very important thing to know exactly how the loan works and what are the terms and conditions. Making hasty ill informed decisions can only lead to further problems. Sometimes, the amount of money paid in interests totals to more than the initial loan amount if not repaid in the stipulated time. Anyone who takes these types of quick and short term loans must ensure that they are repaid within that time and not extended over a long period. The longer the loan period, the more acute is the borrower’s problem.

Criticism

These types of loans have received severe criticism for various reasons.  The critics say that lenders often trap people from low income groups and exploit them financially. The lenders on the other hand argue that if it were not for these short term loans, these borrowers would have no other option. Another reason for disapproving these loans is the methods employed by lenders to recover the debts. Lenders are known to have used intimidation and force on borrowers.

Many laws have been established and enforced to protect the borrowers from unnecessary harassment, but the lenders have invariably found ways to circumvent these laws.

Should these loans be taken?

While not prudent, sometimes emergencies do arise which may force a persons hand. However, du caution must be observed and the loans should be repaid within the time period. Many people will take a second one in order to repay the first loan. This situation should be avoided as it can turn into a vicious cycle that could financially cripple a person. Also, all other options like banking loans and overdraft facilities, credit cards, etc., should be tried before choosing this option. Also, many lenders lure people into taking more loans than they actually require. So, anyone taking a short term loan should only borrow what is required, that is the bare minimum. Also, this route should only be taken to cater for emergencies or necessities and not for investing in stock markets or to lead and support expensive and avoidable lifestyles.

Financial decisions have long term impacts and an unwise judgment could lead to severe complications and problems.

Trading With Binary Options

Thinking of getting into the stock market to invest and trade? Well that’s not a bad idea at all as everyone is getting into it and you don’t really need a degree. All you need is some knowledge, some experience and some personal analysis and you are good to go. I have seen smart people earn a lot from it and I have also seen a lot of people lose their money in this business by being cheated or by some other way. You need to be observant and confident. These two things are the key, and you can never rely on anyone. Start off slow and to gain some experience about the market you can start off using opciones binarias which is actually the safest and fastest option. You don’t even lose much money on it and the amount that the brokers involved is very less. On top of all this you can easily start trading using Binary Options with just $200 in the bank.e83.binary-options-az-cover-picture

WHAT IS BINARY OPTIONS?

Binary option is basically making estimates about certain stocks in certain things like gold, oil and see if your estimate comes correct. It is very safe but to understand Binary you need to first understand how the rest of the market works. In most of other trading and stock market exchanges, a customer buys some assets or stocks and then trades it later. Depending on the value of the trade at that time, the customers’ profit or loss is decided. If the value increases later then it’s a profit and if the value decreases then it’s a loss.

Trading-Binary-Options

The thing that happens in Binary Options is a bit different. In BO we trade on the future of the market and not on the market.

There are two ways by which you can trade in Binary Options. One is the ‘Call’ option where you predict that the value of the particular stock will increase from the current value during a fixed time period and you invest in it. Let’s say you invest $40 on it and if under the certain time period, the value increases then you will earn 100$ but if the value is the same or it falls then, you lose all your money. There is another option too, which is called the ‘Put’ option. In this option you estimate that the value of a certain stock will decrease or stay the same during a certain time period. If the value decreases or stays the same then you profit or else you lose all your money.

Many indices like NASDAQ, FTSE markets are open to trade and you can trade in almost all the currencies in the world. Companies like Google, Coca Cola stocks are open to Binary Options but you need to have fair amount of knowledge about the deal that you are trading in.

One the biggest pros of Binary options are that you don’t lose a lot of money in it. Obviously you lose money but the amount of money you lose is chosen by you and it’s something that you can control. When you are investing you already know the amount of money you will gain if you profit and the amount of money you will lose if you go through a loss. The best part is that many brokers make you invest very less, something like $10. You can’t earn much with that but won’t lose much too and you always have to start with something right? You can even hedge it if you think the risk was too much, just to be safe.

This trading option doesn’t even need that kind of market exposure as the trades are very quick, sometimes even within a minute. You choose the deal that you want to invest in, decide how much you want to invest and after you have invested, your deal will be done within 60 seconds sometimes depending on the time frame. Unlike stock markets you don’t need that extensive knowledge and to be honest luck is also included in it.

You don’t need to be constantly under pressure while you are doing the Binary Options deal unlike trading stocks where after acquiring a stock you constantly need to keep an eye on the market to see if the stock’s value has increased or not so that you can sell it with a profit. The constant fear that the value might drop low is there in stock market but in Binary Options the stress is way less as the deal is finished within no time and the stress is only initial when you are deciding for the deal. As the investment is way less that’s why the stress is also very less.

There are some cons too like if you want to make a healthy profit you need some exposure to some candle chart sticks. There are many brokers that provide it to their clients but then you will need to apply to them. Although some websites provide their clients with the charts, we can’t really comment on their authenticity or reliability. So you probably will need to hire a broker to get yourself some charts.

The irregular win loss percentage is also a downside as if you win you get around 90% of the money and if you lose then you lose all of it and not even a penny comes back to you. This is because when you win then the broker you went through charges some money and taxes, so around 10% goes in that.

There is no way to practice before investing in binary options unlike the traditional stock trading where you can download an app and invest and try your hand in the stock market virtually. There are some apps that help you learn how to invest in Binary Options but they are not yet that good so all you can do is practice by yourself and check the results without cheating.

All in all Binary Option is great if you are new to the stock market and gives you a lot of knowledge about the market that you can later use in stock exchange.

Taking A Personal Loan

Personal Loan also known as consumer loan in India helps you to fulfill your domestic needs. It is often referred as “Loan for domestic Need”. Personal Loan is very popular among the salaried working class people. Such loans are mostly granted on unsecured basis which means that there is an unsecured loan against the personal guarantee of the colleague. The special feature of this loan includes the fact that the bank does not keep a track of the end use of this loan i.e. a customer can invest the money which they borrowed in the name of personal loan wherever he or she wants.

ELIGIBILITY

  • Eligibility Criteria includes individuals having regular income with a good track record. A track record can include the address and necessary contact details through which the bank can get in touch with the customer.

young-man-working-at-home-table-laptop-notebook-dressed_573x300

  • In most of the cases, it is important for one to have an account in the bank from where they’ll be taking the loan. This is so that the bank can check the record of the customer and keep a track of their personal information.
  • Having a Cibil score of 760 and above. A Cibil score is a brief summary of your past credit records which helps the bank to check whether you have paid your previous lainaa tekstiviestillä or not. It is beneficial for one to have a good Cibil score as this improve your chances of getting a personal loan with much ease. The bank gets in touch with the credit institutions from where one has already taken a loan and inquire about necessary details of the customer.

SCALE OF ADVANCEMENT

After the person if found eligible to take a loan the bank decides the amount which can be landed to him/her. In most of the banks the individual is landed 5 to 10 times of the gross salary/income which he or she is earning. The rate of interest on Personal Loan is usually higher in comparison to the other advances and varies from bank to bank. The reason for higher rate of interest is due to the fact that it is an unsecured loan and there is no guarantee placed by the customer on this type of loan. Therefore, this makes it a loan of high risk. However, having said that this loan contains high risk, the bank creates it very difficult for an individual to secure this loan and put a lot of obligations to check the background as well as honesty of a person.

DOCUMENTATION REQUIRED

  • Income proof which may include a Salary Certificate, ITR (Income Tax Return).
  • DPN (Demand Promissory Note): This note is a legal instrument that is duly signed by the borrower which says that an individual has to pay the loan in a certain specific time period.
  • Guarantee Agreement: It is a stamped agreement which includes the signature of the person who took a guarantee on behalf of the loan taker.
  • Authority for instalments i.e. a specific institution is authorized from where the borrower will make the payments for his or her personal loan.
  • Employers undertaking to remit the funds of terminal benefits: This document is important in case of any mishap caused to the borrower and due to which he is unable to repay the loan. Then in that case the funds which he or she owns will be first used to pay the amount of his or her loan and then for other expenses. This document is necessary in case a person dies.

FullSizeRender-2

PROCEDURE TO GET PERSONAL LOAN

A person is required to get a loan application which is easily accessible. One needs to fill up the application and provide a photograph of himself/herself. The procedure is also known as KYC (Know Your Customer) which helps in identifying the identity of the customer.

Next, he is required to submit the application with the necessary documents such as Salary slip, Employer Certificate, Bank Check Cibil Score etc.

Finally bank follow the process of checking the eligibility of the customer and if found eligible loan amount is credited in his or her account.

Personal Loan is very popular in the bank in all departments and repayment schedule is usually within 24to 36 EMIs.

What To Look For In A Licensed Money Lender

When you find yourself with unpaid debts and little income to spend, your situation may eventually lead to stress. In such cases, people turn to their family and friends to help them financially. However, in the absence of help by near ones, you will have the option of borrowing money. The ultimate source for taking money on credit is from licensed money lender.

WHY LICENSED MONEY LENDER?

Debt may arise suddenly, with surprise payments and bills that may be a result of medical troubles, home equipment that needs repairing and other such sources of expenditure that cannot always be predicted. In such cases, money may be required within short time-frames.

licensed-money-lender-singapore

Banks do offer loans, but the process is long-drawn and time consuming. Working with a credible licensed money dealer, on the other hand, has a number of profits over the banks :

  • Money lenders cut the waiting-time period tremendously. While the paperwork and initial submission of application itself, with traditional bank loans, takes up hours and even days, the money lenders only require the borrower to fill in a brief online form. Upon meeting the eligibility and criteria such as employment details and age, the application is processed. In contrast, formal loans from the banks may require a series of documents that one might have to hunt for, compile, gather photocopies and other such hassles.
  • The approval for bank loans takes a long period of time, whilst the licensed money lenders may contact and give their approval within a matter of days. The stress of the waiting period should also be considered when laying the pros and cons of each institution.

The best way to find the best money lender is by researching and quoting with the different licensed money lenders that are available in the locality. It is crucial to find the right partner, in order to avoid any chances of increasing the debt that one already finds himself in. Here a few pointers that will help to decide and judge the researched subjects :

  • Interest Rate :

Depending on the financial circumstances one finds himself/ herself in, this is the first and foremost quality to look out for. Comparison of the different rates of interest will help to find out the most reasonable price quoted. Make sure that the interest rate is within your own means, however, also remember that the lowest interest rate does not always mean that the institution will provide the best services.

  • Credibility :

The best way to assure the credibility of any moneylender is to confirm that they have a valid license. A valid license should be affiliated with any registry that is recognized by the law. The most advisable moneylender to work with are the ones who have been in operation over a longer period of time.

money-lending-1024x731

  • Return Time :

Before engaging in any agreement with the money lender, make sure that you are given enough time allowance to return the loan with the interest. In accordance with your financial circumstances, be realistic about the time-period and negotiate in advance about flexibility if required.

  • References :

Talk to friends, family members and other people who have experience in this field and ask them for recommendations to narrow down your research.