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Category Archives: Finance

Boat Loans

The most important fact to be considered while taking any boat loan is the interest rate it carries. The Annual Percentage Rate (APR) on any boat loan will depend on many factors. The credit history of a borrower, the value of collateral, the requested loan amount, the value of the boat and the length of the repayment period, affect the APR on the boat loan. The typical APR’s on boat loans vary from 7.5 % to 16% depending upon the borrower’s financial condition and repayment history. The amount, which a borrower can get on a boat loan, also depends on the factors given above. Taking into account the repayment capacity, value of the collateral and credit history of the borrower, it can start from £10000, and can go up to £ 10, 000, 000.

When a borrower decides on the amount of his boat loan, he should take into account the service contracts for the boat and its insurance costs. The borrower should also take care that the boat loan includes the cost of the essential accessories. The huge amount involved in purchasing these services and equipments will be difficult to manage after a boat loan is taken and without these the borrower might not be able to use and enjoy his boat fully.

When a borrower starts looking for a boat loan, he is overwhelmed with numerous offers. The situation is quite confusing and the unaware borrower is likely to get carried away by glitzy marketing campaigns. A discerned borrower however, will take an informed decision by shopping around for a lender with the right offer. A boat loan with low interest rates, minimum documentation and low fees will be an ideal choice for most of the borrowers. An online lender is most likely to satisfy the condition of the best loans offers within the shortest possible time periods. After deciding on the right lender, the formal process of applying for the loan begins. Most of the prestigious lenders offer online application facilities. Filling up of an online application is the fastest and most convenient way of applying for a boat loan in UK. Care should be taken that every detail asked by the lender is provided and the information is correct to the best of the borrower’s knowledge.

Computer Loans

Computer loans have been born out of the idea of assisting every person in the UK to have a computer of his own. It is difficult to do without computers in the present age. Whether it is a simple classroom work for kids or your own office work, almost everything demands a computer. Such is the craze of computers that people will prefer to have a computer just as people would have craved to have television in its heydays.

People desirous of purchasing computers can easily apply for computer loans. Computer loan is similar to a personal loan, as far as the terms go. Though computer loans have a long list of benefits for borrowers, the best among these is the facility of stretched payments. Payments in a computer loan are stretched over a period called the term of repayment. Had it been for a cash purchase of the computer, borrower would have to pay the price of computer immediately. Only those with enough cash to make the immediate payment would have been able to purchase computers.

However, when computers are purchased through computer loan, borrower does not have to pay to the seller through his own pockets. It is the loan provider who makes the payment instead of the borrower. However, it will appear as though the borrower is making the payment. Bargaining on price, commonly associated with cash purchases can be conducted on purchase through computer loans too. This is because the borrower has the loan proceeds with him and he has the discretion on the manner and the amount up to which he wants to use the computer loan proceeds.

The amount that one had to pay to the computer dealer will now have to be paid to the computer loan provider. The manner in which computer loan is to be amortised is an important decision. The complexity of the decision increases because of the multiplicity of options available for loan repayment. You can either make a balloon payment towards the loan or pay through instalments that accrue monthly or quarterly.

Balloon payments are advantageous for borrowers who hope to lay hands on a sizable sum in the near future. Interest charges are significantly reduced through this method. The alternative method whereby payments are to be made through periodic instalments will bring greater interest to borrower’s loan, but suits people with fixed incomes.

Interest is the cost of inflation on the amount lent to borrowers. Typical interest rate on a computer loan ranges from 7.25% to 15%. APR is generally dependent on the amount of loan that is being taken and the borrowers’ credit status. Yes credit history is not going to leave you even in computer loans. A good credit history is preferable to get a larger amount for computer loans at cheap rates. Loan providers who work with sub-prime borrowers may arrange good deals for the borrowers with bad credit in computer loans.

About No Money Down Loans

Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal requirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.

But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.

Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.

There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.

Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.

Believe it or not, there are loan packages available that combine both of these examples – no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.

Applying Online for a Loan

How do you go about using this valuable resource? The place to start is determining what kind of loan you require and how much you can afford to borrow. Basically, you have to choose between a unsecured loan, normally used for purchases such as a car or a holiday, and a secured loan which is generally taken out either to consolidate your debts or to make a home improvement. Car loans are available for all types of circumstance and can be obtained online from websites like creditmonster.co.uk which specialises in loans for cars and also provides a resource for people that may have been affected by adverse credit in the past.

Currently, UK interest rates are generous for both types of loan. In addition, Internet only financial institutions often give better rates or features than High Street banks because they cut costs by cutting out the middle man.

Once you have decided what kind of loan you need, you should use the Internet to carry out research. Although you can use search engines to find different loans, it’s easier to find a site which has done your legwork for you and presents a spread of different UK companies and loan rates in an easily digestible format.

You can also use online loan calculators to help you find out exactly how much your monthly repayments will be, with and without payment protection.

When you have chosen the loan product you want, you can also apply online. Because of various scare stories about computer security, a lot of people are wary about giving their details online. However with some preparation and a bit of knowledge you can ensure that your online transactions are just as safe as your offline ones. (See our tips on online security).

First, make sure you have all your personal details to hand – name, address, phone number (including your mobile phone) and your email address. You should also have your financial details worked out – how much you want to borrow, over what period and what your current salary (individual or joint) is and, if you are taking out a secure loan, what the current estimated value of your house and the current amount outstanding on your mortgage is. You will also need details of other loans and credit cards with outstanding amounts and the level of monthly repayments.

It is also important to choose a unique password for your account as many companies give you computer access to your loan account using your email address and password as security. They may also use other details such as your mother’s maiden name, a memorable date or address. Your password should be made up of small and capital letters and numbers and be at least 8 characters long. Don’t use the same password for other accounts. Write it down and store it safely.

Fast Loans for Unemployed

Fast loans for unemployed are like the payday loans lent to the employed people. In fact, fast loans for unemployed takes much from payday loans. The structure as well as the process of fast loans for unemployed is similar to the payday loans. The only difference however is in deciding candidature. Payday loans would have never lent to an unemployed person, but fast loans for unemployed do.

The speed of approval is one of the most important features to look for in a fast loan for unemployed. As mentioned before, fast loan for unemployed is to be utilised towards fulfilment of very basic needs. Unless the money on loan is received fast, the needs will have to remain unfulfilled. This implies that if the loan is to be used for buying ration, borrower will have to do without his daily food if loan approval is delayed.

What distinguishes fast loans for unemployed from the regular loans is that they are approved within a day, rather than a minimum of weeks that elapses between application and approval of regular loans. Most lenders promise to give loan approval within 24 hours. Most lenders do keep up to their promise and make a fast credit to the borrowers’ bank account. However, there are certain lenders who will make borrowers wait endlessly for approval. It is these lenders whom borrowers must evade in their search for fast loans for unemployed.

As soon as an unemployed borrower shows his desire to use fast loans for unemployed, the lenders tell that they must be prepared to pay a high rate of interest. The hike in interest rate is attributed to the high degree of risk in lending to the unemployed. It must be understood at this stage that the unemployed borrowers are considered with bad credit. With no stable income in hand, they are thought incapable of supporting fixed payments on a loan. Through a high rate of interest lenders try to provide for the worst, i.e. when borrower does not pay.

Fast loans for unemployed are expensive because of the relatively shorter term that they need to be repaid in. All short term loans charge a high rate of interest.

However, unemployed people can find the lenders charging reasonable rate just as they find lenders who deal with the unemployed people. Most such lenders who do offer reasonable rates of interest or can be brought to a reasonable rate of interest have it mentioned on their website. All such lenders must be contacted. Since, it will not be easy to contact each lender personally, it will be beneficial if the lenders are first requested to present a list of the terms on which fast loans for unemployed will be lent. Through a loan quote, borrowers can get a peek into the actual loan terms of a large number of loan providers. Unlike loan calculator which may not have updated entries for the loan rates, loan quote always gives the terms as they are.

Applying For a Grant

1. Find an appropriate grant opportunity in which you’d like to apply.
Visit Grants.gov/search/searchHome.do for specific information on grants available to you. Be sure you meet all criteria, or your time spent will be wasted because your application will be voided in that instance. Jot down the grant’s CFDA Number or Funding Opportunity Number, which will be needed for Step 2, below.

2. Download the application package.
Once you’ve determined which grant or grants you’ll apply for, you’re ready to download your grant application package. Your first step is to download PureEdge Viewer, which is a free software package required for filling out the application. The software is available to both Macintosh and PC users. Instructions are included as to how to install and use the software. After installing PureEdge Viewer, you’re ready to download your specific application package. Have the grant’s CFDA Number or Funding Opportunity Number for this step, which should have been obtained in Step 1, above.

3. Register with Central Contractor Registry (CCR).
Grant applicants need to be registered with CCR prior to submitting a grant application through Grants.gov. By registering with the CCR, the organization is required to designate an e-Business Point of Contact (EPOC) According to Grants.gov, the EPOC is the sole authority of the organization capable of designating or revoking an individual’s ability to submit a grant application on behalf of their organization through Grants.gov. The CCR also provides organizational information that Grants.gov uses to verify an applicant’s identity and to pre-fill repetitive information on grant application, which will ultimately save you time in applying for a grant.

4. Register with Credential Provider.
Grants.gov employs the use of e-Authentication to ensure the security of your information that is submitted electronically in an application. e-Authentication is done through the use of Credential Providers. It is the process of determining, with certainty, that the person applying for the grant is who they are claiming to be in the application. The Credential Provider for Grants.gov is an organization called Operational Research Consultants (ORC). When you, as a grant applicant, are applying for a grant, you’ll receive a username and password, which is then used to register with Grants.gov as an authorized organization representative, or in other words, as an individual designated as authorized to submit grant applications for your business or organization through Grants.gov. Once you’ve registered as an authorized organization representative, your EPOC is asked to validate the registration. Once your EPOC validates the request, the individual requesting authorized organization representative’s status for your organization will receive a notification via email confirming that you’re not able to submit grant applications electronically through Grants.gov, which is the fastest and easiest way to expedite your grant application.

5. Register with Grants.gov.
As mentioned, when applying for a grant, it is necessary to register with Grants.gov as an authorized organization representative in order to submit a grant application electronically. According to Grants.gov and their instructions file, the E-Business Point of Contact (EPOC) listed on an organization’s Central Contact Registry (CCR) registration will receive email notification stating that the grant applicant has registered to submit grants. The EPOC will then need to log onto the EBiz section of Grants.gov and assign the “Authorized Applicant” role to the grant applicant. Once the EPOC does this, the applicant will receive email notification stating that they have been designated as an AOR and will be able to submit applications through Grants.gov.

About Bridge Loan

A bridge Loan is also known as ‘gap financing’ because as the name suggests, it is more to do with filling or ducting the empty crevices in your financial condition, especially when it is an emergency monetary need or crisis that you are facing, be it in terms of purchase of personal property or be it with respect to business issues. This loan has become very popular among the mob of real estate owners or businessmen despite the high rates of interest that come as a baggage. When in terrible need of monetary support and that too within a restriction of some weeks before you make the down payment or any other necessity, then a loan is the only option because this loan can be available in a shorter period of time comparatively with a minimal number of submission of documents for verification and rechecking before the loan is granted. It is a short-term interim loan as it only lasts up to as long as one year only.

Real life examples where loans can help: Let us take a hypothetical case where you are looking for a new apartment or a two-storied house depending upon your needs, requirements and inevitable requisite. The difficulty is that you need to sell your present home in order to buy the new one and your broker has given up and you alone are unable to find the right buyer. Here in this situation where you are facing time constriction for advance payment and are in dire need of that amount, the bridge loan becomes very useful in spite of exorbitant interest rates. Unless and until you come up with a permanent solution to pay the mortgage as well as make the advance payment for a better deal in the housing complex, bridge loan, or interim financing is the only pathway you can act on with the assurance of proper execution of your plans with minimum official trouble.

Keeping the above example in mind, why it is said that taking a bridge loan is very flexible:

  • The terms of the loan state that in case you are unable to sell the house within six months, then you have to pay the reimbursement of the rate of interest on the loan.
  • If you are able to find a suitable buyer within the time frame of six months, then you won’t have to pay back the loan with due rates of interest.
  • Bridging the cleft made by the time struggle between selling and buying, this loan solves all your financial junctures.

What is the eligibility criterion for applying for the bridge loan: The lender will perform a credibility check of your history with loans and anything that proves you are not worthy of the loan. You will have to pledge any collateral or real estate asset. Also, bridge loans are often offered by individual lenders and not by any bank.

Holiday Loans

Did we hear some borrowers complaining about the clause of interest in a holiday loan? It is not justified to complain about the interest, given that interest is the compensation due to the loan provider for the period when loan is unpaid.

There is one more reason for not flinching at the interest charged on holiday loans. When compared with the helplessness in fulfilling a small need of ones family like going on holidays, a small expenditure in the form of interest seems trivial.

Payment for interest is good as long as the interest rate is reasonable. There are loan providers who know from the urgency of your need that you will pay whatever is the rate called for. However, do not mistake the rate of interest for mere one or two digit numbers. When calculations are made on the loan balance using these numbers, the figure obtained may go very high. So you must be very cautious in making the decision regarding interest rate.

Deciding the timing of the holiday loan is very important in holiday loans. Either the holiday loan will be required before going on the holiday or might be required after the holidays have been spent. This speaks much for the amount of planning that a person makes in his day to day activities. While the former likes to go through a well defined plan, the latter doesn’t. The former class of individuals knows the approximate expenditure that they are going to make on the holiday. They would make every attempt to be within their limits. Consequently, the amount drawn by this class of people will be somewhat near the estimated expenditure. Some people do draw an amount in excess of the estimated expenditure to provide for any contingencies or to use the holiday loan proceeds for any other personal needs like debt consolidation or home improvement.

The latter class of individuals is prepared to make expenditures as they come. They will draw holiday loans only after the expenses have been made. The borrower may have planned to use his personal savings or income towards the holiday payment. But, increased expenditure forces the individual to take up holiday loans later. This method has a positive side too. This significantly reduces dependence on loans. The drawback of this method is that borrowers can accumulate a large debt load. Moreover, when the process of receiving holiday loans is delayed, the borrower will find himself in a crisis.

Before making an application to holiday loan, one must be aware of the trends of approval. If it has often been seen that loan applications of borrowers belonging to diverse circumstances too get a fast approval, then you can take the chance of applying on a shorter notice. However, where approvals are delayed, it will be necessary that sufficient time gap be kept between application and approval. When application to holiday loans is made through the online mode, there is a faster approval.

Qualify for a Loan

1. Ability to repay the loan.

First and foremost, when qualifying for a loan, a lender needs to be reassured that you have the ability to repay the money that is borrowed, and that you are trustworthy enough to make your payments. Lenders want to see your cash flow and if possible, a secondary resource, such as collateral. Your credit scores help them determine if you’ve paid off credit cards and other loans. Lenders check your credit scores to see if you’ve made your payments on time, and to see if you’ve defaulted any creditors. If you’re applying for a business loan, lenders like to see a business that’s been in existence for a long time, and that it’s been profitable for a long time. Qualifying for a personal loan or a mortgage is much the same. If you have a credit history that shows that you’ve paid your other bills, and you have a steady flow of income coming into your budget, chances are good that the loan will be approved. If your credit is questionable, however, it may be of benefit to seek a lender specializing in loans for individuals with poor credit.

2. Credit history.

As mentioned, the first thing that a lender will do to determine if an individual, couple, or business can qualify for a loan is to pull their credit report, usually from Experian, Equifax, Transunion, or another smaller credit bureau. Therefore, before you approach a lender, or even start preparing to request a loan and see if you qualify for a loan, make sure your credit scores are as high as possible. Get a copy of your credit report from each of these three credit bureaus. Review each item on the report carefully, and report any errors that you find. For example, if you’ve gone through a divorce and a loan was placed in your spouse’s name, request that that item be removed from your report to not reflect the current history of that particular loan. Watch for items that may not be yours, too. Identity theft and identity errors are common, and it’s important to protect your credit and remove anything that simply does not belong on your report. Once a dispute is filed, the creditor has 30 days to respond to the credit bureau. If no response is received, the item must be removed from your credit report, and your credit scores will increase. Check your name, social security number, and address at the top of each report to make sure they are correct. Contact each individual credit bureau with questions and disputes before determining if you qualify for a loan.

Qualifying for a loan can also be a matter of being honest, regardless of credit scores. If your credit scores dropped due to a divorce, medical crisis, or job loss, and those issues have been resolved, you can still easily qualify for a loan by explaining these events to the lender. Bad things happen to good people, so be honest and explain and detail these issues in writing, and submit that information along with your loan application to determine if you qualify for a loan.

3. Equity.

Lenders often ask for equity when qualifying for a loan, especially if the loan amount is large, such as to construct a new building for business or purchase a home. In these instances, the building or home itself can be the collateral, and equity is built by offering the lender a down payment. To qualify for a loan, be prepared to offer equity, either with a down payment or some type of collateral.

If your credit scores are high, and if you’ve never had any financial difficulties, qualifying for a loan should be a fairly simple process. If you’ve had financial challenges or extreme financial difficulties in the past, be prepared to offer explanation of these problems to the lender when finding out if you qualify for a loan. Seek out a lender specializing in poor credit loans if your credit scores are too low for a conventional loan. You may find that by seeking these lenders, you’ll easily qualify for a loan.

Unsecured Business Loans

Unsecured business loans are designed specifically for UK businesspersons to finance their need for capital to start up or expand a business. Unsecured business loan offers flexibility to a borrower; he can use the loan for any purpose. Purpose of borrowing an unsecured business loan may vary from person to person. The amount borrowed with an unsecured business loan can be used for the commencement of business, expansion purpose, to finance the asset or equipment purchase and refinance or to restructure finances. Some entrepreneurs use the loan proceeds as a working capital. It allows a borrower to preserve his cash and working capital.

The best thing about an unsecured business loan is that it does not require a borrower to put a security against the loan. Thus, the borrower’s property is not under any risk of repossession.

Unsecured business loans are available for amounts ranging form £15,000 to £ 250,000. The repayment period of the loan vary from 1 to 20 years depending on the amount of loan a borrower wants and his or her credit history. This loan is best suited for short term and small cash needs.

A borrower by applying for an unsecured business loan gets the following benefits:-

o Retention of the Ownership – An entrepreneur can retain the current ownership in his company instead of raising funds by selling interest in his company to an outsider.

o Cash Flow management- Unsecured business loan provides borrower an access to capital with minimal up-front payments and the flexibility to design a loan repayment schedule suitable to your finances.

o Tax Advantage- Interest on the loan is tax deductible. Thus, can help in saving hard earned money of the borrower.

Each loan requires a borrower to pay interest on the amount borrowed. Unsecured business loan are usually provided at higher rate of interest as no collateral is put against the loan. You can either choose to pay a fixed interest rate or variable interest rate on the amount borrowed. In a fixed rate business loan, the interest rate applied to the outstanding principal remains constant for an agreed period that may be the loan term. Variable interest rate imply that rate of interest on the loan is not constant and fluctuates to common standard rate.

You need to understand the fact that the lender is entitled only to the interest on its loan. You are not liable to pay any percentage of the profits or a share in the company that an investor would expect.

A good credit history is always useful while applying for a loan. In case of an unsecured business loan, absence of collateral makes it necessary for a lender to recognize or identify the credit worthiness of the borrower to avoid any default by the borrower in the future. Higher the credit score, higher is the possibility of getting a cheap and fast loan, so work on your credit score and you will see it doing wonders for you.

Though, there are various lenders in the finance market. Online lenders can help you overcome all the shortcomings that you must have faced while borrowing from the traditional lenders. Apply for an online unsecured business loan that will save your time and money. You just need to fill up a small application form online which hardly takes few minutes and the lender will get back to you with the appropriate loan option. If you are looking for the best loan, then don’t relax. Collect loan quotes from various lenders and compare them, I assure you will definitely end up with the best deal.