Personal Loans For Bad Credit – Cash For Needs, Whims and Fancies

November 30, 2009

Bad credit holders often find it difficult to get a loan. Personal loans for bad credit people are easily available to those people without hassle. These loans are made for them specially.

As the name suggests, these loans, can be available to anyone to fulfill their personal reason. No credit check personal loans, personal loan without credit check, poor credit personal loans, etc are the other names and forms of personal loans given to the bad credit holders.

Bad credit holders may suffer from arrears, CCJ, default and late payments. These loans can help you in fulfilling your personal need. You can use the loan money for plush wedding, go for a vacation, complete your education, purchase a new car and anything else.

Secured genre of these loans are easier to get. The rate of interest is low due to the placed security. The collateral can be your house, car, valuable documents or any jewellery. The loan amount will depend on the value of the asset. The loan amount varies from £5000 to £75000. The loan term is 5 years to 25 years.

Unsecured bad credit personal loans are available without any collateral. The rate of interest is high for the absence of collateral. The loan term varies from 1 year to 10 years. You can borrow from £1000 to £25000 through unsecured loan. Continue reading →

$10,000 Personal Loans For Bad Credit

November 28, 2009

Getting $10,000 personal loans for bad credit is not the easiest thing to do and there are not many options out there. When you have bad credit there are not many companies that are willing to work with you. Here is a reasonable way to get a personal loan that you need.

You can use a website called Prosper for your $10,000 loan. This site is perfect for your loan because you can get people to bid on your loan just like eBay. Here is how it works.

Prosper will allow you to join for free and they will pull your credit for you. This will give you a rating on the site and you will be able to go about getting a loan from that rating. You will be able to put of an ad a lot like an auction to allow those that have signed up to fund loans to bid on it.

You will have multiple people that will bid on your loan. This is because they might only bid $50 or $100 on your loan. They can bid all the way up to the full amount, but they don’t have to. If you get enough bids that your loan funds in full, then you can leave it open and give other private lenders that chance to bid on it at a lower rate. Continue reading →

ROLE OF BANKS IN PROMOTING FINANCIAL INCLUSION

November 28, 2009

The Indian economy is growing strongly which ensures better recovery and asset valuation. Progressive bank reforms and low interest rates will increase borrowing activity to meet their financial targets. Banking industry is making rapid strides with Information technology driven initiatives and has led to expansion of products (i.e.) expansion of financial services giving birth to the concept of Financial Inclusion. Financial Inclusion is the availability of banking services at an affordable cost to the disadvantaged and low income groups. In India, the basic concept of financial inclusion is having a saving or current account at any bank. In reality, it includes loans, insurance services and much more, for all members of an economy. An inclusive financial system has several merits. It facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. In addition, access to appropriate financial services can significantly improve the day to day management of finances.

An inclusive financial system can help in reducing the growth of informal sources of credit such as money lenders, which are often found to be exploitative. Thus, an all inclusive financial system enhances efficiency and welfare by providing avenues for secured and safe saving practices and by facilitating a whole range of efficient financial services.

In line with the above, after liberalization, the banking environment in India had grown more competitive with the relaxation of restrictions and adoption of International standards banks are forced to adopt measures to survive. The recent financial reforms and greater competition in the banking industry have made it necessary for banks in India to concentrate towards the excluded mass. Successful banks in India focus on the rural sector by providing Financial Inclusion service. The importance of an inclusive financial system is widely recognized in the policy circle and recently Financial Inclusion has become a policy priority in many countries. Legislative measures have also been initiated in some countries.

Further more, in recent years, Indian Banking System has become dynamic and there is an increasing trend in the number of depositors in Banks. The quest of financial inclusion is indispensable for the well being and growth of any country, more for a developing country like India with large sections of population in the unorganized sector. The Government of India as well as Reserve Bank of India has been taking steps over the years to make financial services accessible to all .It is in this context, it is worth to mention the perils of financial exclusion.. Financial exclusion not only hurts the excluded by keeping them trapped in a vicious circle of poverty but also has ramifications for the entire country. Financial empowerment leads to economic and social empowerment. There is empirical evidence on the critical role of finance in economic growth. Therefore financial inclusion, financial literacy and inclusive growth are the themes of modern banking in India It is found that, the commercial banks in India work broadly through three segments namely,. Corporate, retail and treasury.

For Instance, in the United States, The Community Reinvestment Act (1997) requires banks to offer credit throughout their entire area of operation and prohibits them targeting only the rich neighborhoods. In France, the Law on Exclusion (1998) emphasizes an individual’s right to have a bank account. In the United Kingdom, a “Financial Inclusion Task Force” was constituted by the Government in 2005 in order to monitor the development of financial inclusion.

Amidst this background, the Banking sector is the most leading sector in India has been among the top performers in the markets. It is quite remarkable to note that, Indian Banking industry can have itself as one of the most impressive branch network comprising of about 47,000 branches of Scheduled Commercial Banks (including RRB”S) and over 100,000 Co-operative Credit outlets in rural and semi urban areas. Despite this, a large number of poor continue to remain outside the fold of formal banking system. The problem of financial exclusion is very acute in India. According to the 59th round of the NSS survey, only 48% of the cultivable households availed credits from the formal sector. According to a recent NCAER–World Bank Rural Financial Access survey (RFAS), 70% of the marginal landless farmers do not have a bank account and 87% have no access to formal credit. Hence, the banks in India felt the need for Financial Inclusion. The Government of India, Reserve Bank of India and NABARD together have initiated a number of programs like Poverty Alleviation programs, SHG – Bank linkage program, Micro Finance Institutions (MFI), Kisan Credit Card (KCC), General Credit Card (GCC), No Frill Account, opening up of more Rural Banks, and immediate workable options like NGO’S / CBO’S / CSO’S, Farmers club’s, Co-operatives, Agri Clinics / Agri Business Centres / Kiosks, Self Help Groups (SHG), local volunteers, Rural Development and Self Employment Training Institutes (RUDSET), Post Offices, etc.

According to FICCI survey, the strong focus of the Indian Banking industry is the regulatory system, enabled India to carve a place for itself in the global banking scene. The regulatory systems of Indian banks are rated above China and Russia, and at par with Japan and Singapore.

In India, the Reserve Bank of India has initiated several measures to achieve greater financial inclusion, such as facilitating “no frill” accounts and “General Credit Cards” for low deposits and credits. The German Bankers’ Association introduced a voluntary Code in 1996 providing for an “everyman” banking transactions. In South Africa, a low cost bank account called “Mzansi” was launched for financially excluded people in 2004 by the South African Banking Association. Alternative financial institutions such as micro finance institutions and Self Help Groups have also been promoted in some countries in order to reach financial services to be excluded.

Dr.R.SRINIVASAN is a Post graduate in commerce and Management. He received his doctoral degree from Alagappa University in 1997. He is now Working as an ASSOCIATE PROFESSORin Post graduate and Research Department of Corporate Secretaryship at Bharathidasan Government College for Women (Autonomous), Pondicherry University, Puducherry.He currently teaches Accounting ,financial management and Research Methodology Subjects. Before Joining BGCW, he was teaching in SNR College, Coimbatore, Sindhi college, Chennai& T.S.Narayanasamy College, Chennai for eight years. He was with the industry for a short term at Salzar Electronics Pvt. Ltd, Coimbatore. He has about 20 years of teaching experience and having research experience of 15 years. His interests are in Accounting and finance, Capital Market, Quantitative Methods. He underwent the Faculty Development Programme at Indian Institute of Management Ahmedabad during 2000-01. He has presented 20 papers in national and international conferences and has published twenty papers in the areas of Finance and Human resource Management in National Journals. Co-authored a book titled, ‘Investors Protection, published by Raj Publications, New Delhi He has delivered lectures in contemporary finance topics at Pondicherry University. He is involved in consultancy projects for Godrej Saralee, Chennai in the areas of Statistical Applications. He has supervised a number of research projects in the area of corporate finance and Human Resource Management. He is the Board of examiner in corporate Secretaryship and Management for the past two decades.
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Article Source:http://www.articlesbase.com/banking-articles/role-of-banks-in-promoting-financial-inclusion-1516161.html

Divorce and Finances – 6 Tips For Financial Preparation

November 26, 2009

Divorce is a daunting prospect for many people. There are so many factors to consider. Living arrangements, intimacy, time with children, lifestyle changes, and relationships with mutual family and friends are all significantly affected. Finances are generally high on the lists of concerns. For the financially disadvantaged spouse – the one without a job or a significantly lesser income, it can be particularly scary facing the prospect of going it alone in the future. There are some preparatory steps that should be taken as you face an impending divorce. Here are 6 tips that can help you as you go through the process:

1. Open your own bank account. If you have joint funds, your partner is typically not supposed to prevent you from accessing marital funds during the course of a divorce for living expenses, but divorces get ugly and it is good to have money you can count on. You will need your own account moving forward anyway. If you don’t want to tip off your spouse to your planning, you can use your debit card for purchases and ask for cash back to stash in the account. Continue reading →

Is it Possible to Obtain Student Loans With Bad Credit?

November 24, 2009

If you require bad credit student loans, you have fought with debt in the past, or have not had time to get a good credit history. Both of these factors contribute to what is known as bad credit history, and acquiring student cash under both of those categories can be challenging in the best scenario.

There are a few methods you can use to make bad credit student loans possible to obtain. However, you will need assistance, as many times the solution to this style of issue involves having a co-signer help you. The first step in acquiring the bad credit student loans that you need is to acquire a co-signer with excellent credit. The co-signer takes charge of your debt, and must make certain that you pay back the finances owed. Continue reading →

Commit a secure bet on saving account

November 23, 2009

There was this time when an individual used to go miles to reach out to the bank which was suited his budgetary requirements and schemes. Those long waiting hours for completing a single monetary transaction is now a history as the entry of private as well as foreign banking organisations has resulted in the emergence of a new banking revolution.

Banking entities are nowadays more customer-oriented and are not afraid of employing a broad catalogue of products and services to meet the specific needs and desires of their customers. Putting it in a more simple way, clients have become the virtual rulers of the market. However, it is the saving account, that the Indian people are heedful of. It is the best place to park funds and earn interest.

The excellent feature of this bank account is that it pulls in interest for the account-holder. It is just like an investment, where customers invests his/her money and earns interest on the parked funds. However, the interest rates are not ample enough for the consumers and are entirely dependent on different banks who in turn operate on the guidelines prescribed by apex banking body of the country, RBI.

These days, there are lot of banks in the nation which comprises of public sector and private sector banks like, Allahabad Bank, Axis Bank, HDFC Bank, ICICI Bank and State Bank of India (SBI). All of them specialises in providing their clients a catalogue of several accounts to select from so that the clients can select the best among them.

In its business portfolio, State Bank of India renders this service in 2 categories, first is saving account, where the benefits for forthcoming savings is given and another is saving plus account where the saving account co-related advantages are available with term deposit account.

Besides this, there is also a fund transfer technique, through which transferring money to other accounts is quite an easy process. The Internet banking facility for operating it is also provided by virtually all banking organisations through which an individual can check cash balance and can carry out all the required dealings through the banking organization’s business website. This assists an individual in getting rid of long queues in banks. Nevertheless, an individual had better choose his/her kind of saving account according to budgetary requirements.

The author is a business writer for finance and credit products. Know more on saving account, current account at www.paisawaisa.com/

Article Source:http://www.articlesbase.com/banking-articles/commit-a-secure-bet-on-saving-account-1481883.html

How Does a Cash Back Credit Card Work?

November 22, 2009

The popularity of cash back credit cards is increasing with every progressive day. Unlike other credit cards, cash back credit cards help you receive some cash back after making every purchase. Therefore, if you wish to apply for such credit cards or own one, you are sure to gain by reading further.

The working of cash back credit cards depends on the type of cards you are applying. Few credit cards give back more amount of money for purchase of particular items. For instance, some credit cards may give you more amounts of cash on gasoline or grocery purchases. Therefore, you have to decide as to which type of cash back credit card you want. If you are a frequent flier, then you need to consider buying airline credit cards because the more often you use these cards, the more cash or free tickets you get.

Working:

The terms, policies and conditions of cash back credit cards vary from one company to another. However, the process of earning points or rewards is nearly the same. Usually, credit card holders receive one point on every single dollar, which they use to make purchases. Some companies offer two points for every two dollars. These points are later converted into cash, so the name cash back credit cards. Continue reading →

Bad Credit Personal Loan Resources

November 20, 2009

Bad credit personal loan resources include banks, financial companies, and credit unions. Personal loans up to $1,500 are provided without checking your credit score or accepting any collateral. All you need to avail yourself of this kind of loan is a source of income, which could be a job or pension. Additional criteria include a valid bank account and a minimum age of 18.

Bad credit personal loans have different fee structures, loan terms, and minimum requirements. Careful consideration is therefore required before proceeding to take a loan. A financial expert can help you to make an informed choice. Another option is the Internet. There are numerous websites dedicated exclusively to bad credit personal loans. Online resources enable you to compare fees, interest rates, and late fees of various banks at the click of a mouse. Bank websites also facilitate online application of loans. Cash advance personal loans up to $1,500 are usually passed within minutes. Collateral is not required for small loans. Loans in the range of $15,000 and above require collateral.

Working people can avail of payday loans, which are small amounts meant to be repaid in shorter periods of time. Such loans are usually taken during financial emergencies and are sanctioned quickly. Moreover, the paperwork is relatively low. The money is transferred to the borrower’s account within 24 hours. Continue reading →

RETAIL BANKING IN INDIA

November 18, 2009

RETAIL BANKING IN INDIA

INTRODUCTION

To keep in pace with the ever changing customer needs and preferences, banking sector is undergoing a rapid revolution in the recent past. New financial products are being innovated day by day. The bankers being aware of the fact that the plain vanilla products cannot satisfy the demanding customers. Several creamy layers have developed .One such nourishing layer is the introduction of retail banking services. Retail banking segment is continuously undergoing innovations, product re-engineering, adjustments and alignments.

RETAIL BANKING – ESSENCE AND LATITUDE

Retail banking is made available by commercial banks, as well as smaller community banks. Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so forth.

Retail banking is that part of bank’s operations providing services at its branches for small account holders. In short, retail banking is the banking services for individual customers.

The term ‘Retail Banking’ encompasses various financial products viz., different types of deposit accounts, housing, consumer, auto and other types of loan accounts, demat facilities, insurance, mutual funds, Credit and Debit Cards, ATM and other technology-based services, stock-broking, payment of utility bills, reservation of railway tickets, etc., catering to diverse customer groups, offering a host of financial services, mostly to individuals. It takes care of the diverse banking needs of an individual.

Retail banking can be outlined as, the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet with fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side.

UNIVERSAL GAINS OF A RETAIL FRANCHISE TO THE BANKS

Retail banking clients are generally loyal and tend not to change from one bank to another very often.

Interest spreads are wide, since customers are too fragmented to bargain effectively; Credit risk tends to be well diversified, as loan amounts are relatively small.

There is less volatility in demand and credit cycle than from large corporate organizations.
Large number of clients can facilitate marketing, mass selling and the ability to categorise/select clients using scoring systems/ data mining.

Relative safety implied by the mortgage loans.

RETAIL BANKING IN INDIA

A remarkable shift in the Indian economy from the manufacturing sector to a budding service sector (Banking) can be witnessed in recent years. The banking scenario in India is at the crossroads and is continuously evolving, but the progress has been remarkable over the past decade. With the retail banking sector expected to grow at a rate of 30%, players are focusing more and more on the retail and are walking up to the potential of this sector of banking. In future the retail banking industry in India is likely to reach a value of $300 billion by 2010.

INDIA’S RETAIL-BANKING CUSTOMERS

Indian customers are hidden behind an impenetrable wall of loyalty to local banks.
They have a general aversion to credit.
The most profitable and fastest-growing segments—the young and the relatively affluent—are quite willing to give foreign entrants a chance.

By delivering quality service and a sophisticated portfolio of financial products the Multinational banks may create an opening in this wall of loyalty and capture a share of India’s fast-growing retail-banking market.

DOOMS OF INDIAN RETAIL BANKING INDUSTRY

1. Rural/Agricultural credit: Organized Banking has failed to focus on the provision of Rural Credit or Agricultural Credit as it is very costly to finance micro units in remote areas. Technology can change all this by reducing the costs of low unit financing.

2. Technology crisis: Even though technology lends a supportive hand to the overall development of the banking sector through internet banking, phone banking, ATMs, Credit and Debit cards etc, there is increasing menace of hacking, phasing and farming through which scanners are creating havoc indulging in cyber crimes on a large scale, which is difficult to be checked.

3. Lack of apt product strategy: Indian banks have shown little or no interest in innovative tailor-made products, which is the need of the hour. The products of the West will not work out in our diversified economy anymore.

4. Absence of positive credit bureau: One of the biggest impediments in foreign players leveraging the Indian markets is the absence of positive credit bureau. In the west the risk profile can be easily mapped to things and this information can be publicly traded.

5. Credit card issues: Various undesirable practices are exercised by credit card issuing institutions and their agents, which troubles the customers. Some of them are

Unsolicited calls to members of the public by card issuing banks/ direct selling agents pressurising them to apply for credit card.
Charging very high interest rates /service charges.
Lack of transparency in disclosing fees/charges/penalties. Non-disclosure of detailed billing procedure.

6. Deficiency in legal framework: A swift legal procedure against consumers creating bad debt is virtually non existent.

7. Unpopularity of credit culture: The spend-now-pay-later “credit culture” in India is just not picking up among rural population.

8. Rural exposure: lack of proper infrastructure facilities in the rural area hinders the interest of private banks to access rural areas.

9. Absence of prompt loan repayment culture: Prompt loan repayment culture has not yet set in many sectors of society.

10. Thrust on the fluffiest segment: All banks are targeting the fluffiest segment i.e. the upwardly mobile urban salaried class. Although the players are spreading their operations into segments like self-employed and the semi-urban rich, major thrust is given only to this segment. Over-dependence on this segment is bound to bring in inflexibility in the business.

SUGGESTIONS TO EXPAND THE INDIAN RETAIL MARKET

To enlist the “unbanked” segment of the society by the service providers is a method to expand the retail market. It is this underserved segment that is now becoming the focus for some of the large financial institutions.
- Rural Credit or Agricultural Credit is a segment to be explored. It can

be considered as an unbanked segment. It has always been looked upon as a charitable activity rather than a profitable activity.

Now, the time has come for the Customer to demand a product that is not currently available in the Banker’s kitty and the Bank has to literally create customer-specific products. Here comes the Banker in the role of a Financial Engineer.
Lowering the minimum deposit requirement for opening new accounts as announced by RBI. To achieve greater financial inclusion, all banks need to make available a basic banking ‘no frills’ account either with ‘nil’ or very low minimum balances as well as charges that would make such accounts accessible to vast sections of population.
Banks should allow the earlier facilities to sink into the culture of the customers before any new facilities are launched. Also, the earlier facilities should be embedded with services so that customers not only appreciate new technology, but are also in a position to operate.

With the effective usage of the cell phone technology, coupled with web developments service providers can innovate and offer feature-rich, user-friendly mobile banking applications.

CONCLUSION

With much scope in the avenues for operations, the true challenge for the banks in the current scenario is to stand out in the midst of hard-hitting regulations of the apex body. Globalization, consolidation and want of expertise are drastically redefining the banking taxonomy. Thus the participants, be it a Indian financial player or a foreign entrant in the retail sector have to adopt a different approach in everything viz., products, services to hold the Indian market share, as a popular saying goes as variety is the spice of life.

REFERENCES:

1. Investopedia.com

2. www.gbc.hu/english/bszotare4.htm

3. Ms Shyamala Gopinath, Deputy Governor of the Reserve Bank of India

at a seminar at MDI, Gurgaon on December 3, 2005.

4. Sunny Banerjea, Cormac Petit dit de la Roche and John Raposo, “Retail

Banking in India: Considerations for entering high growth

Product areas”, http://www ibm.com.

5. The report ‘Indian Retail Banking Sector Analysis (2006)

6. Dr.K.S.Jaiswal &Neetu Singh, “Retail Banking: Indian Scenario”, Indian Journal of Marketing, January 2007, p-34

Article Source:http://www.articlesbase.com/banking-articles/retail-banking-in-india-1465022.html

Bad Credit Loans – How to Get Bad Credit Loan Help

November 16, 2009

Loans are everywhere. There are unsecured and secured type of loans. Depending on your credit you can qualify for one or the other. Some loans require extensive documentation of your financial status others not so much. If your credit as of lately has not been so worthy and if you want to find out how to get bad credit loan help then you need to rest this article.

We’ll discuss the types of loans that are available for people that have a credit score in the lower rankings as well as what the market is prevailing on these type of loans. When you finally get a bad credit loan approved for you then you’ll want to read the fine print of the contract as well.

By the end of this article you’ll be able to understand why bad credit loans exist and how you can be aware of the pitfalls some people have gone into when signing a bad credit loan. Continue reading →

Personal Finance

Monthly Archives: November 2009