All about personal loans
By Kavita Sriram
Sounds incredible, but it is true – You can get personal loans sanctioned in a matter of 2 to 3 days. A bank official will come down to your house, procure necessary documents from you and complete all formalities.
Unlike gold or marriage or consumer durable loan, you can do anything you want with personal loan. Avail it to meet personal exigencies and requirements. Medical or engineering college expenses of your children or expensive hospital bills of your parents could burden you. Or your house urgently needs renovation. Personal loans come to your rescue.
How is personal loan different?
The amount that will be sanctioned to you depends on your take home salary. From as little as Rs 20,000 to as much as Rs 10 lakhs, get a personal loan sanctioned. If you take the loan jointly with your spouse, her income is also included for determining the loan amount. In case of home loan or home improvement loan, you will be required to spend the money only for building or maintaining the house. In case of personal loan, the banker is not at all concerned about how you spend the money. Further, you are not required to present any security, collateral or guarantors.
What are the eligibility criteria?
Typically, a salaried employee with a public, private, multinational or government organization, who has been in the current job for an year and is between 25 to 58 years can easily qualify for the loan.
Also eligible are self employed engineer, trader, doctor, CA or a manufacturer, who make a considerable net after tax profit, and is between 25 to 65 years. These professionals have to show to the bank that they can repay the loan amount. Each bank has its own eligibility criteria.
Some institutions lend only to its customers or offer them more lucrative rates. Others also sanction personal loan to pensioners of government or public sector banks, who have take voluntary retirement prematurely. Full Article
Inheriting Debt: How to Deal When You’re Left a Money Mess
by Adam J. Wiederman
Grandma and Gramps are not doing well. In fact, the state of finances for the elderly is a shambles.
Let’s start with falling home prices. The AARP found that between 2007 and 2011, “3.5 million loans held by people age 50 or older were underwater, 600,000 were in foreclosure, and another 625,000 were 90 or more days delinquent.” And that doesn’t include the 1.5 million seniors who lost their homes during that period.
When the going got tough, Grandma and Grandpa did what those of any age do — turned to credit cards. But in their case, credit card debt has been a major factor in driving them to declare bankruptcy. Between 1991 and 2007, the number of people ages 65 to 74 seeking bankruptcy rose 178 percent. Even worse, among those 75 and older, the number seeking bankruptcy was up 567 percent!
In a paper analyzing the data from a Consumer Bankruptcy Project, law professor John Pottow writes that “the median elder debtor in bankruptcy carries fifty percent more credit card debt than the median younger filer.”
And to top it all off, these folks have little to no savings: Two-thirds of those age 75 or older have absolutely nothing money left in their retirement accounts, and have little hope of finding a decent job to help them make ends meet.