How Loan against Fixed Deposit differs from Personal Loan?

Prematurely breaking the FD to use money is a bad idea as your interest income is also gone! Instead, you can take a loan against FD! Read on to know more!

Mr. Prem Chaudhari, a resident of Kanpur, was once a happy man. He had two children, and one of them was to get married in a month’s time. However, just 15 days before the marriage when the family went to Lucknow to do shopping for the wedding, an unfortunate incident of robbery happened.

Some people barged into the house from the terrace and looted the money and jewelry worth Rs.3 lakh. Because of the incident, a vibrant feeling of joy and happiness converted into sadness. He needed around Rs.3 lakh to pay for wedding costs immediately.

He has invested in a Fixed Deposit Scheme of a leading online non-banking finance company (NBFC) for an amount of Rs.5 lakh. However, that amount was saved for the wedding expenses of his other child. Should he break the fixed deposit? Or, was there any other method to cover his needs of such a huge amount of money? This worried him a lot, and he had no option but consult his finance expert to get a solution.

The finance expert suggested him not breaking is fixed deposit because by doing so, he would also have to let go of the hefty interest payments received at a tenor completion. Thus, it was decided that breaking the fixed deposit prematurely was not a wise decision.

Prem Chaudhari thought of availing a personal loan to cover his needs, but since for that he would have to cough up around 12% as the rate of interest, it was ruled out. His finance manager finally advised him to avail the facility of applying for a loan against the fixed deposit amount.

Since he needed around 3 lakh and his FD investment was for Rs.5 lakh, he was eligible to get a 90% loan against it. They calculated and found that he could get a loan of up to Rs.4,50,000. He applied online for a loan of Rs.3,25,000 quickly which was approved soon, and relived a sigh of relief as the wedding went off without issues.

If you have invested in any of the fixed deposit schemes, you should know that you are eligible for a loan at a lower rate of interest. Let’s know more now!

What is a loan against fixed deposit?

Many leading banks and other financial institutions allow an FD investor to avail a short-term loan against your FD without breaking it prematurely and lose the interest payment.

You are allowed to avail a loan up to 90% of the fixed amount which is considered a security. In case if you fail to repay the loan in time, lenders may utilize the FD’s money to recover the loss.

The good news for availing a loan against FD is that you only need to pay 1-2% higher interest rate for it than your FD interest rate. What’s more, there are also no prepayment charges on such a loan. Nevertheless, you may have to pay a negligible processing fee to your lender to facilitate the same.

Thus, when compared to a conventional personal loan with a higher rate of interest along with other costs, a loan against FD is more economical and easy to afford!

The Bottom Line

Don’t be stuck with other costly money alternatives when you can easily make the most of the facility that’s available inside your feature-rich fixed deposits. Yes, should you have an urgent need for money, you would ask for a loan against the FD super-easy!

Eligibility Criteria to Take a Home Loan in Mumbai

Mumbai is the biggest metropolitan city in Maharashtra. It is famous as the entertainment and financial capital of India. It is one of the largest cities in India and dearly called the city of dreams.

But, if you have a dream to own a house in Mumbai, it can be a financial burden for you. You can take a Home Loan in Mumbai to fulfill your dream of a home. The Home Loan takes care of all your needs for your home and offers them in a drafted package.

Eligibility criteria for taking a Home Loan in Mumbai

For taking House Loans in India, you must be eligible for it. So, check the general eligibility criteria below:

  • Citizenship

For acquiring a Home Loan, you must be a resident of India.

  • Age

You should be of an age of 25 years to 58 years.

  • Experience

You should be a salaried person with more than 3 years of work experience.

If you have qualified the eligibility criteria for taking a housing loan in Mumbai, you must know what you need to do further.

You should know the required Home Loan documents that will be needed to take the loan. Prepare all the necessary documents and keep them up to date to submit when asked.

Documents required for a Home Loan in Mumbai

Following documents will be required to take the Home Loan:

  • A complete filled application form
  • Your KYC documents
  • Your photographs
  • Your identity proof
  • Your address proof
  • Your income details that include form 16, your latest salary slips and ITR document
  • Your bank account statement of past 6 months

How to get the best Home Loan interest rate in Mumbai?

Getting the best Home Loan interest rates in Mumbai is not as difficult as it seems.Few of the leading lenders not only offers the lowest housing loan interest rates in Mumbai but also helps you get instant approval with nominal fees.

To get the best Housing Loan interest rate you can do the following things.

  • Survey the market

Keep noticing the trends of the RBI’s repo rate change, government policies, fluctuating demand of homes, and various economic factors. This will give you an idea when you can get a better and lower Home Loan interest rate.

  • Negotiate

If you are an existing customer of the lender’s firm, you have all the freedom to negotiate with your lender. Lenders may offer the most beneficial alternative and provide you a better interest rate. You can use various Home Loan calculator available at the lender’s website, to get an estimate of the interest rate and other charges that you will be paying.

  • Choose the right lender

When opting for a Home Loan, choose a lender whose rates are based on MCLR (marginal cost of funds based lending rate) rather than a base rate to offer you the lowest interest on the loan. By doing this, you can avoid the chances of paying higher interest by the end of the tenor or any extra charges.

  • Go over the credit score

To get the best Home Loan rates, you should try to maintain your credit score. You must take care of the bill payment due date of your credit card as it may affect your credit score. You must also repay EMIs on time for an existing loan, as it will help you in maintaining a good credit score.

The Bottom Line

Now, as you know that you are eligible for taking a loan, go ahead and apply for a Home Loan in Mumbai to fulfill your dream of a home.

Happy Housing Loan application!


Facts About PRE-ICO Concept

During a blockchain project launches, we often come across terms like pre-ICO and ICO. The pre ICO system is involved with the selling of tokens before the actual crowdfunding campaign. ICO is also selling of tokens. Moreover, the question arises why there is a need to have a pre-sales prior to a sale.

Pre ICO and the need for it

In other to raise money for their blockchain project, companies make use of pre-ICO. This pre-sales of tokens in concerned with companies which will allow a selected group of certain people to buy before the official crowd sale begins. With this process, there aren’t a lot of funds but it gives the whales an opportunity to stockpile the tokens which they were trying to sell. It can be considered as a New ICO Exchange.

In order to get investors, companies apply this policy. These investors provide a good amount of operational cost for the company while being still completing their white papers. Also, the money that is collected from this pre-sale is usually used for building infrastructure.

Who can avail this pre-ICO?

Usually a month or two months before the beginning of Initial coin offering, this pre-ICOs take place but it can also happen just before prior to it as well. This opportunity is not given to all people. You have to be approved by KYC which is the abbreviated form of Know your customer. Also, a minimum and maximum amount are concerned with pre-ICOs.

What are the benefits of Pre ICO?

There are several benefits that are associated with pre-ICOs. Those who are involved with pre-ICOs are benefited with a higher bonus amount and also a cheaper coin amount for each coin. Also, they get additional bonus or merchandise. Sometimes they are gifted with free cards and many more similar things. The biggest benefit of these pre-ICOs is that investors are given the opportunity to buy tokens at a major discount which can even rise to 50%. The tokens are sold at a cheaper rate because then the fundraising target will be lower than for official crowd sale.

Also, there are many ICOs that are heavily oversubscribed. So to make sure that that you are allocated to the number of tokens that you want to purchase, they take part on PRE-ICOs. Also, projects can utilize this fund that is raised from the pre-sale in order to ramp up the interest of the investors for the purpose of the official ICO. A pre-sale will also make sure that the project has gained some traction already within the time of the official ICOs.

The pre-sales of ICO will help you to test the water before you are participating in the main event. This is smaller so it is more controllable and manageable. If something goes wrong it can be fixed and less number of people will be affected.

Another very recent trend that is seen in ICO pre sale is to get private VC investments at a larger discount for the project and even at an early stage.

Water Heater : Your Home Hardly Needs

New research proposes that later on, a standout amongst the most humble, exhausting, and pervasive of home apparatuses — the electric water heater — could come to play out an astounding exhibit of new capacities that assist the influence network, and conceivably even spare cash on home power bills to boot.

The thought is that these water heaters later on will progressively move toward becoming “framework intuitive,” speaking with neighborhood utilities or other planning elements, and in this way giving administrations to the bigger matrix by adjusting their vitality utilize, or warming water at various circumstances of the day. Also, these administrations might be sufficiently significant that their proprietors could even be made up for them by their service organizations or other outsider elements.

“Electric water heaters are basically pre-introduced warm batteries that are sitting inert in excess of 50 million homes over the U.S.

The report finds that net investment funds to the power framework all in all could be $ 200 every year for each heater – some of which might be passed on to its proprietor – from empowering these tanks to associate with the network and participate in various abnormal however barely uncommon accomplishments. One illustration would be “warm capacity,” which includes warming water during the evening when power costs less, and hence diminishing interest on the lattice amid crest hours of the day.

Obviously, correctly what a water heater can do in cooperation with the framework relies upon factors like its size or water limit, the state or power showcase you live in, the innovations with which the heater is prepared, and significantly more.

“Clients that have electric water heaters, those current water heaters that are now introduced can be utilized to supply this administration,” says the Brattle Group Ryan Hledik, the report’s lead creator. “You would require some extra innovation to associate it to network, however you wouldn’t have to introduce another water heater.”

Electric Water Heater : Purposes

In all actuality, Hledik says that much of the time, individuals most likely won’t add innovation to existing heaters, yet rather swapping in alleged “matrix empowered” or “keen” water heaters when they supplant their old ones. Later on, their energy organizations may empower or even help them to do as such.

Commonly, a standard electric water heater — set to, say, 120 degrees — will warm water harum scarum for the duration of the day, contingent upon when it is being utilized. At the point when some water is utilized (say, for a shower), it leaves the tank and more icy water streams in, which is then warmed and kept up at the coveted temperature.

Interestingly, timing the warming of the water — by, say, doing the greater part of the warming during the evening — could include either having a bigger tank to ensure that the boiling water doesn’t run out, or warming water to significantly higher temperatures and after that blending it with cooler water when it turns out to regulate that additional warmth.

Through such changes, water heaters will have the capacity to act like a “battery” as in they will store warm vitality for longer time frames. It isn’t conceivable to then send that vitality back to the matrix as electrical vitality, or to utilize it to control other family gadgets — so the battery similarity must be recognized as a constrained one (however the Brattle report, entitled “The Hidden Battery,” intensely accentuates it).

However, the possibly vast time-slack between the utilization of power to warm the water and utilization of the water itself, in any case, makes key battery-like openings, particularly for the network (where service organizations are extremely intrigued at the present time in including more vitality stockpiling limit).

That is to say, for example, a cost sparing if water is warmed late during the evening when power has a tendency to be the least expensive. It additionally implies that the exact measure of power that the water heater attracts to do its work at a given time can vary, even as the heater will at present complete its activity.

These administrations are profitable, particularly if numerous water heaters can be collected together to perform them. That is on account of the bigger power framework sees enormous

Car Insurance : The Best For Youngsters

Each teenager sits tight enthusiastically for the day he turns 16 so he can begin driving, and in the meantime, every parent holds her head in giving up. For teenagers, driving means opportunity, yet for guardians, it implies more costs, more cerebral pains and more stresses. Guardians ought to be stressed as drivers younger than 25 are four times more prone to kick the bucket in a car crash as per the Bankrate site. That, as well as insurance rates, can increment by as much as 50 to 100 percent while adding a youngster to an insurance arrangement, so finding the best teenager insurance approach ends up vital in the high schooler driving procedure. The best insurance frequently relies upon every adolescent’s one of a kind circumstance.

Correlation Shop

On the off chance that you have a decent insurance rating with your present car insurance Dubai company, approach about rate increments for adding your high schooler to your insurance strategy. Much of the time, the expanded premium you pay will be lower than buying another strategy only for the adolescent driver. Be that as it may, on the off chance that you have a mishap enrolled on your grown-up insurance approach, you need to search for an alternate insurance arrangement for your high schooler, as your insurance rate will increment by excessively on the off chance that you put the teenager on your momentum strategy. Contrast teenager strategy costs and check with seeing when the backup plan orders the adolescent driver as a grown-up, as a few organizations give grown-up arrangements with bringing down rates to grown-ups at 23 years old, rather than 25. Call surely understood insurance suppliers and audit diverse online insurance approaches (see Resources).

Teenager Car

When acquiring an car for the teenager, pick the car model and make precisely. Your teenager may need that games auto, yet the more secure utilized car may have the lower insurance rates you require. An utilized, safe car is more averse to be stolen and improves crash-test rating, improving it an insurance chance, so an car guarantor will offer lower rates on this sort of vehicle. Consider putting the vehicle in your name or that of the other parent, regardless of whether the adolescent drives it. Insurance organizations tend to see a grown-up proprietor as being more mindful, so lower premiums are advertised.

Evaluations Matter

Some insurance organizations have motivators for understudies with decent evaluations. Solicit any from the insurance organizations you are thinking about whether they make extraordinary premiums accessible for distinctions understudies. Tell the company your adolescent has great evaluations. Numerous guarantors offer great understudy rebates, as studies demonstrate these understudy drivers are more capable. This rebate can be as much as 10 percent.

Driver’s Education

Ensure your youngster takes a driver’s training course, as insurance premium suppliers offer better costs to adolescents who take proficient drivers instruction courses rather than your showing him to drive. Indeed, a few states require a professionally given drivers training course for adolescents needing their permit at 16; without it, the youngster will be not able get a permit until the age of 18. Some insurance suppliers can present to a 15 percent rebate to teenager drivers who have taken this compose obviously.