Banks getting strict for Loan Recovery

Banks have decided to follow Sarfaesi Act 2002 for recovering their loans, especially home loans, from defaulters and those who don’t repay loans on time. The act gives banks and the financial institutions have the power to auction or sell the mortgaged residential or the commercial property of the borrower in case of non-payment.

“This is because of the worrisome increase in the non-performing assets and the Reserve Bank of India's constant goading to keep NPAs under manageable limit,” a top official of Canara Bank said.

The Act works as an effective tool for recovery of loans and receiving positive response. Mr. Shiv Kumar, Managing Director, State of Bikaner and Jaipur, said deployment of the Sarfaesi Act was one of the last but effective recovery tools for banks.“But one should ensure proper repayment in home/property loans while remembering that a bank is also under obligation to recover the dues,” he said.

Car loan helps numerous families to fulfil their dreams of a vehicle

In order to avail the car loan, you can get in touch with any bank. Each of the banks these days are providing car loan at quite attractive rates. You can go any term of the year to repay the loan. The interest rate for the same varies from 8% to 10% depending on the bank you have availed the loan from. You can also make the use of the car loan calculators available on almost every bank’s website and see how much EMI you would be paying on the amount of the loan availed.

Car loan are taken by almost each person nowadays whether he belongs to medium class or upper class. It is actually easy to make your dreams come via through these offers.

Summary: Car loan helps the people make their dreams come true and bring in their dream car to home.

Education loan rates requires deep study

The rate at which the need for education loan is increasing has benefited banks in all terms. But banks have also come up with some attractive and flexible offers for the students. Education loan rates nowadays are not as high as they were used to be previously. You need to go through the procedures that each bank follows to give the education loan and more importantly compare the loan rates for different banks.

Understand the repayment nature of each and every bank and go with the ones that offer education loan rates at a low price with no flaws involved in the same. Also there are not much documentation stuff that is required to avail such loans and very easily accessible through any bank. The agent is just a call away and your dream of a higher education will no longer be a dream now.

Summary: Education loan rates vary from bank to bank hence requires deep study on the same.

Importance of a home loan agreement

All the terms and conditions related to a home loan are listed in a home loan agreement and that has to be signed by the borrower, which means that the borrower has agreed to mentioned conditions. Despite being of such immense importance, it is taken just as a formality by most of the borrowers.

The main reason behind this neglect is the bulky size and the language that is used is the document, it prompts the borrower to sign it quickly and conclude the loan formalities as soon as possible but this can not be an excuse because doing so can cause a harm to the borrower in many ways.

As there are a lot of lenders available in the market, it has fueled the competition among them to lure customer. For the reason they come up with new schemes and only the highlights are made available to the customers, however there are a lot of terms and conditions applicable with it about which the customer is oblivion.

A lot of people approach the lender and intoxicated by the advertisements they want to borrow the scheme as soon as possible without making any further enquiry and in the mean time they also sign the loan agreement as well which makes the lender the ultimate authority; by the time the borrower gets to know what blunder he has made it is already too late.

Nothing like this would have happened if the borrower would have read the document carefully. For instance, if a person has borrowed a loan under fixed rate scheme which promises him loan at minimum possible rates. Most of the lenders now mention a clause in the agreement which allows them to revise the rates after a certain period of time, about which the lender obviously will be unaware about if he has not read the document carefully.

Not only these but there are a lot of other details about the defaults and various clauses related to the home loan which makes it really important to read the loan agreement carefully.

Get your home loan insured

Home loan insurance is as important as a home loan itself, most of the people are concerned about the home loan and once they succeed in borrowing they get relaxed and their home loan is what they bother about but a home loan insurance is also an essential part of a home loan.

In case of demise of the borrower of a home loan it becomes the responsibility of the family to repay the loan and in most of the cases the families are found jostling because of the double whammy, basically the family members are left to face the consequences and most of the times they have to face foreclosure.

Home loan insurance provides the security from the threats posed by any such situation, if a person has got his home loan insured then the insurer is responsible to repay the remaining home loan amount in case of beneficiary’s demise.

There are few variants available of home loan insurance schemes out of which a person can choose from, most of the lenders repays the pending loan amount but a scheme offered by ICICI Lombard covers a certain amount and when required the insurer pays the pending loan amount and the remaining amount is paid to the family.

Apart from security that this security provides the beneficiary can avail tax benefits as it is categorized under life insurance and under section 80C income tax deductions can be claimed; but this facility lapses in case the borrower has clubbed both Insurance Premium with the monthly installments.