A home within your budget

Old homes are available at a discount of 25%, or even more, compared to new homes in many localities. If you aren’t finicky about latest facilities, you could get a good bargain

 

YOU may have to live with higher residential prices. After all, in a country where citizens are increasingly flocking to big cities for job opportunities, is there any other way that property prices could go? But then if you are a smart buyer, who is willing to see through the dust, there are opportunities galore to buy that dream house. And yes, that too at an affordable cost.

   There is light at the end of the tunnel for home buyers. Old houses in the same locality are available at much cheaper market rates than the newlyconstructed ones. So should you toy with the idea of buying an old house? Raj Kumar of Jones Lang Lasalle Meghraj says: “That depends on one’s level of need, one’s paying ability and the condition of the house. While a new house is always a better investment, there are certainly occasional good deals available in older units, too. Units in projects by reputed builders often do have sufficient resale value, especially if they are in good locations. If the unit is in a location that meets the buyer’s need, all necessary conveniences are available in the vicinity and if it is in good condition, buying it makes sense”.

 

More space

 

 

The biggest advantage of going for an old house is that of getting more carpet area. This is primarily because of the low-loading factor in old constructions. Today, most of the residential constructions come with amenities such as clubhouse, gymnasium, swimming pool and all these spaces get loaded into the overall property rates. So, for instance, a new residential house might be a 1,000 sq ft home, giving only 750 square feet of carpet area (33% loading). In case of an old house, you could get probably get 800-850 sq ft.

 

Spruce up old homes

 

 

“Newly-built houses are usually designed keeping in mind the requirements of the existing generation. Be it more attached bathrooms with bedrooms or service area for maid servants, you name it and they have it. In contrast, older houses mostly have provision for only one bathroom, says Dharmesh Thadani, a Mumbai-based interior decorator. Even the modern kitchens are wellequipped with additional plug points and right electrical fittings. But then the big question is to ask about the incremental cost to redo the old house with such state of the art electrical fittings.

But….

There are some things though, which can’t be done even if you wish for it. Take for instance, the elevators which some of the old house might not have. This could be an area of concern, especially if there are elderly members in your family. Also, one might have to forego the commonly available amenities. “The new constructions usually have large housing complexes with common facilities such as swimming pool, recreation club/gym, etc. They also have appropriate provisions like a lawn or a park for the children to play in the compound itself, adds Mr Thadani.

 

Renovation costs and lower resale value

 

 

An old house comes at a lesser cost. But one has to discount the renovation cost before zeroing in on one. Used homes tend to deteriorate in overall condition and often require extensive repairs and refurbishing. They have far less resale value than new units, and no home loans are available on them after they have reached a certain age. This further reduces their marketability. They may have flawed titles and pre-existing litigation issues, since the transparency in property deals is only a recently emerging phenomenon in India, says Mr Kumar.

   In the end, the choice of whether to go for an old or a new house is an individual decision. Some might want the best amenities and are also willing to pay for it. But if you feel that affordability is pinching you, old homes — (of course, those that have been constructed not more than 10 years ago) could be a good consideration. After all, you get it at a discounted rate — not to mention more space to boot.

Fed steps in to protect home loan borrowers

Lenders would have to confirm that a borrower can afford a mortgage before making the loan under protections proposed by the Federal Reserve on Tuesday following the havoc wrought by the US subprime loan crisis.
The proposals are intended to replace loose standards that have put many Americans at risk of losing their homes because they took out loans they could not afford and may not have fully understood. The new rules will not assist today’s struggling homeowners but would give consumers the right to sue mortgage lenders who act unfairly and deceptively in preparing loans. Millions of Americans who stretched to buy homes in recent years face the risk of foreclosure as mortgages with initial “starter” rates reset sharply higher.
The Fed’s board unanimously approved the standards recommended by its consumer rights staff and said they strike a balance by protecting consumers while preserving their access to credit. “These new rules, once adopted, would apply to all mortgage lenders,” Fed Chairman Ben Bernanke said as the board met to consider the proposal. He said the rules would be “consistently applied and vigorously enforced” by state and federal regulators. The new rules would put the nation’s 50,000 mortgage brokers under some federal supervision, according to Fed staff. The proposal was criticised by several leading lawmakers and praised by an industry group. The Fed has been faulted for failing to use all its consumer protection authority during the housing boom that ended in 2005. — Bloomberg

Christmas: Value for money festive season

Praveen Pillai (27), a medical transcriptionist, has lavish plans for the festive season a Christmas vacation with friends and gifts for family. This will cost him a fortune and hes toying between pulling out money from his mutual fund savings or swiping his credit card either option will dent his future finances.
Pillai represents todays generation who want to enjoy, and feel compelled sometimes to dip into their investments to finance that binge. The festive season is that time of the year when discount tags literally push you to buy products and services. In fact, 50%-60% of the spending is unplanned and impulsive. Lured by freebies and discounts, people end up buying more, which hampers their budgets and finances, says Anand K S, wealth manager of Nile Financial Planners, who adviced Pillai to avoid the options he was looking at.
Holidays, gifts, parties and marriages the list of occasions seems endless. With the year-end craze setting in, its important you plan your budget so that you dont go overboard with credit card payments and loans.
So whats the solution?
Plan your holiday spending without affecting mandatory expenses like taxes, childrens school fees and other annual commitments. Including festival spending into your financial plan is critical.
Anil Rego, CEO of wealth consulting firm Right Horizons, says one of his clients used to be an erratic spender. Based on our advice she now makes a budget every January and looks at major expenses she has to cover. She takes into account bonus payments and uses that to meet expenses, says Rego.
For the shortfall, we suggested a regular monthly recurring deposit. A lump sum investment of Rs 50,000 would be difficult to squeeze out. She now easily manages it with Rs 5,000 per month. She also manages her tax saving investments by doing a monthly systematic investment plan with both unit linked insurance plans and equity linked savings schemes. It saves on interest payments she used to make earlier to credit card companies.

Festive Fin Plan


• Include festival spending in your annual plan/budget

• Dont jump at offers. Identify and evaluate products you need and wait for discounts.

• Plan and book your holidays to avoid rush and price hikes

• Minimize credit card purchases and EMIs

• Use your annual bonus to shop and for vacation

• Choose a short-term personal loan over credit card

• Dont miss your tax saving and other investments because of the holiday expense

• Plan for the next year before its too late

Higher study loans set to get cheaper

Getting finance for expensive professional courses is set to become cheaper for students from modest middle class homes. A Rs 4,000 crore plan is in the works that will enable the government to take over the interest burden on education loans during the ‘moratorium period’— the time when students are pursuing their studies and have not yet begun earning.
As things stand, education loans come with a clause that allows students not to pay interest during their academic life. The interest for this period is added to the principal and payments begin once the student starts working.
Now, under a mega scheme being finalised by the Planning Commission, the Prime Minister’s Office and the HRD ministry, the government will take over the interest burden for the moratorium period, estimated at about Rs 650 crore a year, assuming that five lakh students from families earning Rs 2.5 lakh a year or less avail of the loans. To qualify for the scheme, the student’s household income must not exceed Rs 2.5 lakh per annum. It will be open to students engaged in professional and technical courses at the under-graduate or post-graduate levels.
Broadly, this means those coming from families with a monthly income of Rs 20,000 will get an interest waiver.

1 cheap loan per student: Govt


New Delhi: The new education loan scheme that the government has planned will cost it Rs 4,000 crore for the 11th Plan period. The government, which intends to implement the scheme from the 2008 academic session, also wants to restrict the waiver benefit to one loan per student. So, if you borrow to complete your graduation, don’t expect a similar helping hand for a postgraduate course.
Bankers said that the move would also encourage many banks to lend more freely. In the absence of any clarity on when a borrower starts working, bankers often shy away from extending education loans. Some of them even insist on collaterals although the government has repeatedly maintained that the practice is virtually non-existent now.
The idea is not just to check brain drain from the country but also ensure that the government taps talented students who cannot otherwise afford professional studies because of the high fees.
According to government estimates, there are approximately 50 lakh students in professional courses of which about five lakh students come from families within the income range of Rs 2.5 lakh per year.
In recent years, a large number of students, especially those pursuing MBA courses in India or going abroad for higher studies, have borrowed from banks. According to latest data released by the Reserve Bank of India, there was a 51% rise in education loans—from Rs 9,962 crore at the end of March 2006 to more than Rs 15,000 crore at the end of March this year.
Tax sops have also played a role in accelerating loans and with the government allowing parents to avail of benefits, there could be a further spike in the coming year. Earlier, tax sops were available only if the student borrowed and paid the loan individually on completing his education.
The existing scheme for educational loans, devised in consultation with the RBI and the Indian Banks Association, covers all kinds of courses, including professional courses, in schools and colleges in India and abroad.
Under the scheme, banks provide a loan of up to Rs 7.5 lakh for studies in India and up to Rs 15 lakh for studies abroad.
For loans up to Rs 4 lakh, no collateral or margin is required and the interest rate is not to exceed the PLR, while for loans above Rs 4 lakh, the interest rate will not exceed PLR plus 1%.
The loans are to be repaid during a period of five to seven years with the provision of a grace period of one year after completion of study.



With cheaper loans, the Centre is trying to check brain drain and tap talented students who wouldn’t have been able to afford high fees

On the house: Elders can now own and earn

Senior citizens can now live off their homes, literally. Taking a cue from developed countries, the government has announced its sanction for reverse mortgage products in the country. In a reverse mortgage, senior citizens can avail of a loan against property owned by them without having to pay back monthly installments. 

The finance minister announced that the National Housing Bank (NHB) will shortly introduce a novel product for senior citizens: a reverse mortgage under which a house-owning senior citizen can avail of a monthly stream of income against the mortgage of his or her house. 

He or she can continue to remain the owner and occupy the house throughout his/her lifetime, without repayment or servicing of the loan. 

Reverse mortgage products are already available to citizens in countries like the US, the UK, Australia and Spain. In a normal mortgage, a customer will avail of a loan from a bank to buy a house and then repay it in monthly installments. 

In reverse mortgage, a senior citizen can pledge his/her house to a bank and get a lumpsum amount or monthly payments, based on the value of the property. They don't have to pay back any installments to the bank till they continue to stay in their house. The large Indian banks have welcomed the new development. Says V Vaidyanathan, retail banking head, ICICI Bank, "We like the concept and look forward to launching our products soon." 

Says an executive from HDFC, India's leading housing finance company, "This is a welcome development and we are awaiting NHB to announce further details of the product. We are certainly interested in launching our products in this space." 

In a typical deal, the bank or finance company will value the house using a standardised norm and arrive at a lumpsum or monthly equated amount payable over a specified period of time. In an earlier note prepared by NHB, a lending rate of 6% and a tenure of 20 years were used to arrive at amounts payable to senior citizens. 

At present, however, there is some ambiguity on how the income from mortgaging the house would be treated in the hands of senior citizens. There are no clear rules if such a payment would be taxed or not. 

Tax experts are, however, confident that since each payment creates additional loan, the payment on mortgaging property will not be taxed. 

Though the scheme has been announced formally in this year's budget, companies like Dewan Housing are already offering a reverse mortgage product called Saksham to senior citizens with an in-principle approval from NHB. 

The product is modelled as a regular income product for customers above 60 years of age who have been living in their house for at least one year. Says an HDFC official, "We wanted to be sure of the rules before we put out our products." 

 

PRE-LAUNCH V/S SOFT LAUNCH

Pre-launch, a highly-debated issue in real estate, means raising money from the public for projects which are yet to get regulatory approval in the form of licence and clearances.

In short, it is like selling a house which has not even had its foundation stone laid. Soft launch is legally permissible, but it is different. When investing, an individual needs to understand between the two.

Q. What is the difference?
A. While both are meant to attract investments before a project is actually ready, in the case of pre-launch, a builder seeks investments even before seeking regulatory approvals are in place. In case of soft launch, the move follows after receiving all the necessary approvals.

Q. How can an investor understand the difference?
A. One can make it out by the mode of payment asked for. Since pre-launch is an illegal practice, a builder will insist on cash payment. An investor should understand that only the amount one pays in cheque is the actual and official valuation of the property that he is investing in.

Q. Why then are there takers for pre-launch?
A. Investors are often lured by the significantly low prices on offer. On an average, a property's pre-launch price is less than one-third the price after actual launch. But since the entire transaction is through a benami deal, the investor often does not have an enforceable right.

Q. What is the area that should be considered while buying a flat?
A. There is no regulation pertaining to this issue, and investors are often at the mercy of whims and fancies of the developers. However, the government has emphasised that carpet area, and not super area, should be the basis of all transactions. A regulation pertaining to this is expected to be introduced in Parliament soon.

Q. What's the difference between carpet & super area?
A. Carpet area is the actual built-up area of a property. Super area also includes the value-add spaces. The difference is particularly striking in case of apartments, where super area includes space taken up by facilities such as lift, parking and open space.

Q. Do we have a regulator?
A. The ministry is planning to set up a real estate regulator to bring about more transparency in the sector. The proposed regulator will make sure that developers stick to guidelines. It will also be mandated to ensure that consumers fulfill their commitments.

Q. What if a developer does not deliver property on time?
A. Regulations pertaining to developers' adherence to a timeframe is not clear as yet. However, if the proposed bill for realty regulator is instituted, deadlines will become legally binding.

Loans for Learning

Study now pay later scheme could replace college reservations

The government’s Rs 4,000 crore megascheme — to which the Planning Commission is now putting the final touches — to subsidise education loans for students from families earning Rs 2.5 lakh a year or less, is a welcome sign of fresh thinking in official quarters on human resources issues. It’s a much better way of improving access to college education than the current approach of caste-based reservation quotas. According to the scheme the government will take over interest repayment on education loans for the ‘moratorium’ period, or the time in between when the student borrows the money, and when he starts work and therefore is in a position to repay the loan. The scheme is open for professional and technical courses at undergraduate or postgraduate levels.
One of its great advantages is that it replaces caste with income as the criterion for receiving support from the government. The arbitrariness of using community-based standards for measuring individual disempowerment has been exposed in Rajasthan’s caste riots, where the Gujjars are threatening turmoil because they have not been deemed worthy of receiving scheduled tribe (ST) benefits. The rival Meenas, who enjoy ST status, are on the other hand happy with the verdict of the Chopra committee that threw out Gujjar claims, as it does not expose them to competition from Gujjars. In this game, a win for one community amounts to a loss for another. That’s a recipe for clash between communities and political instability. Incomebased criteria, on the other hand, are better targeted and no cause for political gripes to anybody.
The other advantage of government subsidies for student loans is that it doesn’t devalue merit in the same way that caste-based reservations do. It still devolves on the student to find admission to the college courses of his choice on merit; admission standards will not be specially relaxed for him. This is particularly important when the Indian economy is facing a skills crunch and the employability of graduates who possess formal degrees is turning into a major issue. The scheme should serve to tap talent that cannot be developed currently because of the modest family background of students. If administered well, it should increase opportunities for youth and help plug the skills gap that prevents the Indian economy from firing on all cylinders.
It is being hoped that the scheme will check the brain drain from the country, whereby Indian students spend more than three billion dollars abroad every year in search of quality education. That will, however, require further measures in deregulating education and allowing excellence to thrive.

Have a room to spare? Govt will help you earn from it

'Bed and Breakfast' scheme gives house owners an income stream

Dilip Dixit is a retired service man who owns a 710 sq ft house in Pune. With space to let, he's hoping to join the country's first-ever `Bed & Breakfast' scheme, which has been launched by the Ministry of Tourism, Government of India.

Inspired by the success of European 'flop-houses' or B&B centres, this scheme is expected to boost the fortunes of property owners like Dixit and of Indian tourism per se, which is growing at 25% annually. The term 'B&B' has its genesis in Great Britain, but its practice began in the Middle Ages when monasteries housed travellers. Its escalating success in recent times is credited to the Internet and online bookings and pricey hotel tariffs.

India's pioneering B&B scheme aims to provide standardised home-stay facilities to tourists in metros and other destinations across India. Goa, Alibaug, Nashik, Shirdi are just some of the hot B&B spots earmarked by the government. The scheme hopes to also address the accommodation crunch in cities like Mumbai and Delhi, in addition to these vacation spots.

Property owners aren't complaining. Says Dixit: "Since I am a retired person, the income would be beneficial to me. The accommodation that I am offering is spacious and clean. Huge hotels charge at the very least Rs 3,000-4,000 per night. The price-tag that I would ask for would be much lesser, say around Rs 500-1,000 per night."

Dixit is cheered by the safety net inherent in a government-led scheme. "The biggest attraction of this scheme is the fact that it comes with government approval stamped on it."

Ministry circles are enthused about the prospects of B&B. Says C Gangadhar, assistant director, India Tourism. The basic idea is to provide a clean and affordable place for foreigners and domestic tourists alike, including an opportunity for foreign tourists to stay with an Indian family and experience Indian customs, traditions and authentic Indian cuisine.

The total number of tourists who visited Mumbai in 1997 was 6.95 lakh, while in 2006 it topped 8.25 lakh.

How the scheme works
Seems like there will be different beds and breakfasts. The B&B scheme will be classified as follows: Standard and Premium. The ministry has formed a Regional Classification Committee, which will inspect and classify the B&B establishments based on the facilities, area and services offered. The committee consists of principal secretary (Tourism State Government), regional director (India Tourism), representatives from IATO, representatives from State Tourism Department etc. The downside is that there's a deposit fee of Rs 3,000 (standard) and Rs.5000 (premium) that is charged with the submission of the form.

Says Dixit: "If the ministry rejects the form on the basis of a technicality, the amount that I have paid will not be refunded. I would have to look at the check-list a lot more carefully."

Explains Gangadhar: "It is the house-owner who decides what amount is charged from a tourist for x number of days. We only intervene in cases where we feel that the rates are over-the-top."

"The fact that a premise is available as B&B is communicated via our 23 offices in India and 13 offices abroad. We also have a website-Incredible India! where an ad will be placed."

Says Gangadhar: "It helps us understand just how many residents are open to the idea. This form of accommodation has become a necessity in metros. It's an entirely new concept and we are getting a lot of queries. The idea is that the residents should maintain their way of life, and yet house tourists."

India will be hosting mega-watt global events like the 2014 Asian Games in Delhi. Media reports state that there is a demand for 30,000 hotel rooms in Delhi and only 10,000 hotel rooms are available. The B&B scheme hopes to effectively tap at least some of the nearly18,000 spare rooms available in the residential sector in the capital, thus addressing the acute accommodation shortage during such seasons.

If this home tourism effort takes off, it could be a cost-effective option for tourists and a golden goose for retired middle-class folks like Dixit. Indian tourism could also get quite comfortable with such room service.

Home buyers to get precise size of flat

Draft Central Realty Bill Says Builders Have To Give Break-Up of Built-Up And Carpet Area In Sale Deed.

Builders may soon find it impossible to hide behind terms like "super area''-built-up area in Mumbai builders' lingo-to conceal the real floor area of apartments they are selling. A new law to regulate real estate developers will require builders to exclude common spaces and balconies while spelling out the floor space of a residential unit.

The proposed bill, a draft of which the Centre is currently working on, will make it mandatory for the builder to specify the area of an apartment in the sale agreement. Besides, a break-up will have to be provided of what the builder is charging for the apartment and a separate calculation for charges levied for common spaces like corridors, parking and lifts.

The Real Estate (Regulation and Control) Bill would allow the buyer to know clearly which common facilities and areas can be used freely and where residents would have limited access.

Builders often juggle between carpet area and super area to confuse buyers, who end up not knowing the floor area of their houses. There have been instances of apartments in the same block having different floor areas and builders even adding parts of common spaces into the floor area of a flat.

The proposed bill notes that often developers promise the moon, claiming that an apartment complex will have its own clubhouse, gym and swimming pool. It is only after buyers have moved in that they realise that many facilities are charged extra. The payment is not merely service charge but also the construction cost.

The bill hopes to provide stringent safeguards against claims that are not honoured.

The urban development ministry intends to put the onus of registration on the property developer and has provided that the sale agreement be registered within three months of the signing of the deal. Failure to comply with the provision will result in a fine of up to 5% of the cost of the house or Rs 50,000, whichever is higher. Builders will also have to shell out Rs 1,000 for each day of default.

This again is the result of developers promising to get the property registered and often sitting on the registration and processing fee collected from buyers. Some of the builders have in the past just kept the money in their bank accounts and earned interest on it for as many as three-four years.

The bill also seeks to bind developers to the date when possession will be given to the buyers. The clause is proposed to be included in the sale agreement itself and any delay will attract a penalty in the form of interest on the advance, to be decided by a regulator, which the Bill also envisages.

The bill is likely to be tabled in the winter session of parliament.

BRICKS IN THE WALL

- The draft bill asks real estate developers to exclude common space and balconies while spelling out floor space of a residential unit

- Builders have to give break-up of charges for flat and a separate calculation for costs levied for common spaces

- The bill seeks to ensure promises like clubhouse, gym and swimming pool are honoured and not charged separately later

- The onus of registration will be on the property developer within 3 months of the signing of a deal on the pain of penalty

- The bill also seeks to bind developers on possession date. Any deviation from date on deed will attract penalty

Living life King-size

Call it the spillover of bulging wallets, or the simple desire for scaling up. India's aspiring middle and upper classes, eager to upgrade their lifestyle, are driving the real estate market to new highs. The numbers speak for themselves - as developers build up their capacity to meet this growing demand, the luxury apartments market (Rs 1 crore to Rs 5 crore) has grown by over 25% in 2006.

Take a look around. Luxury apartments, which often feature standalone villas or high-rise apartments, continue to pop up in and around big cities - with each vying to provide the best of luxuries, from the usual air conditioning, parking and security to the unimaginable - jacuzzis, pools and spacious yards.

Says Anshuman Magazine, managing director, CB Richard Ellis, South Asia: "Luxury housing in India is on a high growth curve. People are now willing to shell out premium for quality, larger space and amenities.

There is a lot of pent-up demand for luxury housing. The demand is being driven by globe-trotting executives, new and successful businessmen, higher income levels and NRIs whose interest level in India has increased, besides availability of mortgage. The shortage of good housing in the country is also pushing the demand for high-end homes. The consumer is now exposed to global standards. They look for good infrastructure and hi-tech amenities."

Agrees Sanjay Verma, executive MD, Cushman & Wakefield: "Property prices increased by 30 to 40% in 2005, but last year saw prices appreciating by almost 60 to 70% and in some cases by even 100% for projects under construction and other Grade A luxury properties. New benchmark rates were created as prime stock of apartments hit price levels that were higher than 1995 levels."

Due to higher returns on investment, many developers are switching to the luxury housing segment, especially in heated markets like Mumbai and the National Capital Region (NCR). Not to be left behind are Hyderabad, Bangalore, Chennai and Pune, where a number of luxury residential projects are under construction. Another thing that has attracted more demand for these apartments is the rising aspirational level, leading to demand for better quality homes built on international standards offering state-of-the-art modern amenities.

Many locations in Mumbai, where demands for high-end options far exceed supply, have witnessed significant appreciation in property prices ranging from 80% to 120% over the last 12 to 15 months, according to Cushman & Wakefield. At the high-end segment, the size of large apartments used to be about 3,000 sq ft. Today, that space is about 5,000 to 7,000-sq ft in the city. In addition to space, the newer complexes offer ample parking space, swimming pools, gardens and health clubs.

Even grander in scope - and price - are the full-scale city communities, much like those in Dubai, which are being developed around the nation. Among the pioneers in this arena is RIRIC, the Vancouver-based global real estate investment firm, which has plans to launch multiple planned city sites around India in the next few years.

Says Rohtas Goel, CMD, Omaxe Group: "The buyer seems to be impressed by the hi-tech amenities being provided by various developers. These luxury apartments are in exclusive neighborhoods done by renowned architects with plenty of space, luxurious interiors, private lifts, landscaped gardens, gyms, swimming pool, mini spas in bathrooms, children's play areas and security and CCTV."

Developers even provide billiard rooms, sound-proof cinema halls, three to five covered garages, open air Jacuzzi, 16-seater home theatre, semi-covered 100-foot pool-facing scenic walks and gardens with gazebo. Security features promised include high-tech perimeter security, videophone doorbells from main gate, compound movement sensors with intruder alarms and infrared car proximity sensors.

The demand for luxury housing would continue at the back of expected economic growth, resulting in increased purchasing power for larger number of people. But just because there is demand doesn't mean there is supply or enough supply, anyway. The demand and supply dynamics clearly point to an unabated demand for good housing in this country.

As far as the market is concerned, luxury apartment prices are end-user driven to a large extent. For instance, this kind of development is led by individuals buying their second or third homes. Developers are, therefore, able to construct and develop more projects of this kind. In the residential sector, the price boom is a phenomenon that literally feeds itself.

Says Vikram Sabharwal MD, Sabharwal Developers: "The current boom in luxury apartments has been largely contributed by rising income levels and affordable interest rates on mortgages. The rising interest rate scenario, coupled with the rising property prices will not effect the off-take of this segment. Merrill Lynch has forecast that the Indian realty sector will grow 7.5 times by 2015."

The demand for quality options far outweighs the supply with too much capital chasing too few properties especially in the Rs 1 to 5 crore range. As a result, the upward trend is likely to continue over the next 12 months with a stabilising of prices at current levels.

Settled right

UNLIKE THE TRADITIONAL INDIAN PRACTICE, STUDENTS TODAY ARE TAKING ON THE RESPONSIBILITY OF FUNDING THEIR OWN HIGHER EDUCATION
It's payback time of a different kind for these youngsters- young, ambitious students who move abroad for their higher studies, funded by educational loans, they are expected to pay back over a stipluated period of time, once they are employed,without passing the burden on to their parents. And the number of such students is only rising.
Take the example of BCom graduate, Arindam Saha. His cost to pursue an MSc in Management at the University of Central England was 8,000 pounds.To fund the same, he took a loan of Rs 6 lakh at an interest rate of 11.5 per cent.
”The bank gave me a up to seven years to repay the loan. You are expected to start repaying the amount a year after completing the course, or once you start earning,” elaborates Saha. Currently employed with an inte r n a t i o n a l n e w s agency,Saha repays Rs 12,000 a month, and hopes to clear his loan in five years.
Loan notwithstanding, Saha is one of many students who prefer studying abroad as the MBA programme in India is often a two-year course, (as opposed to one year in England), in addition to the valuable exposure that comes with studying abroad.
While Saha went abroad soon after completing his BSc, Harsha Vellal completed a year of work experience before leaving for foreign shores.
Following a BSc in Computer Science, Harsha worked for a year before enrolling for an MBA in Marketing at the University of Liverpool. The course fee alone stood at Rs 11 lakh, for which he took a loan to pay the entire amount. Before leaving the UK,Harsha also completed a course in interior design, and has since,established an interior design business in India. ”I'm still repaying my loan. I was given seven years for repayment, of which I have completed two years,”he says.There are others who have worked longer and saved part of the fee amount before going for higher studies in foreign universities.
Aravind Krishna did his BE, worked with Infosys and decided to then add an MBA to his portfolio. He did an 18-month MBA at NTU, Singapore and was able to fund his education by himself. On the other hand, his classmate, Gaurav Sharma, a chemistry honours student, began a 16-month MBA at NTU, Singapore after working at a pharmaceutical firm.While he paid for a part of the course fee with his savings, the availed of an educational loan of Rs 10 lakhs to finance the remaining costs. Although he was given 10 years to repay the loan,“I've already returned my entire loan amount,'”he asserts.
Evidently, a common thread tying all the above cases is the student’s pride stemming from funding his or her education, as opposed to passing the buck of funding their higher studies on to their parents.

Nothing grey about retirement homes

While Pune and Bangalore, the oldest destinations for retired citizens, offer several models to choose from, developers in Dehradun, Kerala and Goa are catching up fast. They have designed serviced apartments tailor-made to suit the needs of senior citizens. And of course, they are also building on the regions' inherent tourist potential with planned investment.

Among the developers who have forayed into this segment are several reputed ones such as Paranjpe Builders and Gera Developers of Pune, Bangalore's Brigade Group and the UK-based Goldshield, which is developing homes in Goa, Kerala and Dehradun. Retirement homes are also coming up on the outskirts of Mumbai and Bangalore.

The UK-based Goldshield is looking at developing a "Well-being Village", in India. The first such village is expected to open in Mumbai in December this year. You can either buy a house outright or pay a deposit and a rent for the rest of your life.

The deposit will revert to your children as part of your estate. But, if you choose to buy a house, then it cannot revert to your children, as most of these colonies have an age bar - most don't accept people under 55 years of age. Nor is anyone allowed to buy a house as an investment. However, builders, such as Paranjpe, offer a buyback scheme for these homes after the demise of the resident couple.

This is part of the original sale agreement with a built-in price escalation.

Says Gaurav Mashruwala, a Mumbai-based wealth management consultant, "It makes a lot of sense to invest in retirement homes.

People are living much longer - with or without the spouse - so they need the security of knowing that there is someone to take care of their everyday needs, which is what these new retirement homes are offering." At the industry level too, there is a lot of excitement about the concept. Says Ajoy Veer Kapoor, promoter and managing director of Saffron Asset Advisor, "Retirement homes segment is the latent undiscovered value creation opportunity, which is going to happen in the next 5 to 10 years." Recently, Yatra Capital raised 100 million euros, which Kapoor will manage.

"We are looking to invest in retirement home projects very actively.

It is a different model of housing. Here, you have retirement homes, healthcare and tourism, all combined into one," he adds. As the income levels of the upper middle class grow, analysts expect several takers for this concept, though it will remain a niche segment.

While the current offerings are targeted at the upper end of the market - between Rs 50 lakh and Rs 2 crore, Mashruwala feels that as market matures, more options will come up at the lower end of the spectrum too.

Analysts also feel that though mortgage lenders have not started to look at this segment, big private sector and public sector banks will soon find the retirement home segment a lucrative area to focus on.

Mashruwala points out that the concept is aimed both at younger couples who will retire in the next 15 to 20 years and those who are due for retirement in the next 5 years.

Developers are also looking at a big NRI retirement market and building homes for the high-income couples working abroad in the US, Canada, Europe and even the Middle East who will retire in the next 3 to 5 years.

"It is a big opportunity. There are couples working abroad, who would want to spend 3 to 6 months in a year in India. Retirement homes could target them as well," said Kapoor.

With several India-focused real-estate funds getting launched overseas, analysts are expecting a sizeable amount to go into funding retirement home projects.

Depending on the requirement, retirement homes are likely to spread across the country. "Some people may want to spend their retired life near places such as Goa, where you have good ambience and surroundings," they said.

Documents for loan

You will need the following documents for getting your loan processed.

Just check out the list so that you will not have to wait later.

These documents are generic to all banks (Check sidebar/Top links for banks) and make your processing faster.

List of Documents Salaried Customers Self Employed Professionals Self Employed Businessman Application form with photograph Application form with photograph Application form with photograph Identity and Residence Proof Identity and Residence Proof Identity and Residence Proof Latest Salary-slip Education Qualifications Certificate and Proof of business existence Education Qualifications Certificate and Proof of business existence Form 16 Last 3 years Income Tax returns (self and business) Business profile Last 6 months bank statements Last 3 years Profit /Loss and Balance Sheet Last 3 years Income Tax returns (self and business) Last 3 years Profit /Loss and Balance Sheet Processing fee cheque Last 6 months bank statements Last 6 months bank statements (self and business) Processing fee cheque Processing fee cheque

Home Improvement Loans

External repairs, internal repairs… need to get your house back in shape? Losing sleep over how much the repairs are going to cost? Then you can get the Home Improvement loan from many banks.

Add value and life to your house taking this loan.

Home Improvement Loan will provide you loans to finance any improvements that will increase the value of your home, contribute to a better living environment and add value to your house.

Some of the home improvements you could undertake with Home Improvement Loans:

External repairs Waterproofing and roofing Internal and external painting Plumbing and electrical work Tiling and flooring Grills and aluminum windows Waterproofing on terrace Construction of underground/overhead water tank Paving of compound wall (with stone/tile/etc.) Borewell

The Home Improvement loans are easy to arrange and can be customized according to your repayment capability. You can avail of this loan even if you are an existing customer of these banks.

Sell Your Home To A House Sale Specialist

If you have always used an estate agent to sell your home you may not be aware that it is not a legal requirement to sell your property in this way and that there is an alternative. House sale specialists operate differently in that offer you a quick cash sale for your home. This can be achieved in as little as seven days.

They do not charge any fees. This means no estate agent fees, no fees for a valuation; no solicitor's fees and you will not need to provide a home information pack either. You will not be offered the full market value but when you total up your savings from the fees and the typical extra months of mortgage payment you will have to pay, whilst waiting for an estate agent to sell your house, there will be next to no difference in the final price, achieved from the sale.

There are hundreds of these house sale specialists and you will find that many operate throughout the whole of the country, by providing each area with a local agent. So as with an estate agent it pays to shop around and see what is on offer.

Most like, A Quick Sale Direct whose main office is in your city, provide a free phone number where you can contact someone twenty-four hours a day and after initial contact, you will usually have a written offer within forty-eight hours.

With the housing market as it is at the moment and house prices starting to fall, there are obvious benefits, if you choose to sell your house quickly. There is nothing worse than putting your house on the market and watching it devalue month by month as you wait for a prospective buyer to come along and view. It is equally depressing to find your self in the middle of a chain, wondering who will make the next move, or if you have a buyer pull out at the last minute. There are none of these problems when you use a house sale specialist as you are guaranteed a sale, price and at a time to suit you. Most importantly you are always in control.

There maybe many other reasons to consider a quick sale of your property, such as, repossession or financial difficulties, separation or divorce, illness, bereavement and inherited properties, emigration and relocation.

When you sell your property through an estate agent, you must vacate on the completion date. The house sale specialist offers an alternative here as well. They will buy your house from you, release the equity to you and will then rent back at the market rate, if this is your requirement. This is great if you are experiencing temporary financial problems, as you will also be given a pre-agreed price to buy back your home, when circumstances improve.

House sale specialists also deal in commercial property and do not discriminate as to condition, value, size, state of decoration, or length of lease and whether the property has vacant possession or is tenanted. If you are looking to sell you house then it is well worth investigating this option further.

Making Your Home Sellable

You've listed your home and the agent wants to start showing it to prospective buyers. Here's a few tips to help it look its best.

You may have already read the importance of clearing out clutter. Well, that's because it can't be stressed enough. It is one of the most important aspects of making your home appealing to buyers, for two reasons. First, not just papers and dishes, clutter includes decorations and furniture too. Too much of it can block a persons view of the house itself. If everywhere they look they see stuff, a buyer doesn't see your home. It is imperative that they have a clear view, or they won't want to buy.

Second, all that clutter screams personality. Your personality. And this is not what a buyer wants to see. When someone is looking over a home, what they need to do in order to be motivated to buy is to imagine themselves living in that home. If the house is so full of the current owner, a potential buyer can't get past that and make the mental leap to visualizing themselves in the home.

Because of this, some sellers choose to box up a lot of their personal goods and put them in professional storage. This gets it right out of the house, so even the boxes aren't clogging up the spare rooms and closets, which are also important selling features.

It is also important to fix things around the home. Keep in mind how well the doors around your home work, as buyers will almost always open closets and cupboards. If the doors are sticky or squeak, that gives a bad first impression. Obviously, your front door is the first candidate for a good hinge-oiling.

While you certainly don't want to enter into major renovations, a new coat of paint can really brighten up a home and make it more appealing. Consider both the outside and inside of your home. And as tempting as it is to choose trendy colors or things you are personally attracted to, neutral tones are best. White or off-white are your safest bets as they will help a home appear bright, and give a new owner a good base if they wish to paint the home more uniquely.

Speaking of a bright home, be sure to leave all the lights on when your home is being shown. Open all the curtains, too, so that viewers feel that your home is bright and welcoming, and they can see clearly. Dusting every surface also helps your home look brighter.

Consider smell, an important sense that impacts our first impression. Do a good deep cleaning, especially if you have pets or smoke indoors. Air the home out a bit. You may wish to install some air fresheners, but be sure not to choose anything too overwhelming, as more and more people have sensitivities to scents these days.

Good luck with showing your home!

Guide To Preparing Your Home For Sale

If you have made the decision to sell your home and lets face it there are lot of people in that very position right now the very best thing you can and should do is prepare your home for sale properly. Most of this is common or uncommon sense as far as I am concerned but I will run through the basic steps any person can take when they are preparing to sell. My first piece of advice is to determine how quickly you need to sell the property and how important price is, if like most people price is very important then you need to invest some time to do the job correctly. Make a list of any jobs that need to be done around the place and get them done, check taps, drains and gutters. Inspect the house from top to bottom for any obvious repairs or damage such as broken hinges on doors and cupboards, holes and dents in walls and other obvious signs of wear and tear.

These small things make a big difference in the way people and real estate agents will view your property, once you have the small jobs done then it's time to start with the cleaning, if your not good at cleaning then hire a company to come in and do it for you, pay attention to windows and around doors and light switches. Make sure you get the floors cleaned by a professional. Once the house is clean then you can easily determine if you need to repaint, I always advise people to repaint as it makes a massive difference to the way the house will look, make sure you use neutral colours because that is going to appeal to the broader audience, your favourite shade of hot pink may not appeal to everyone. Once the house is neat and tidy on the inside with a fresh coat of paint then it's time to attack outside and the garden, clean up as much rubbish and undergrowth as possible and take it to the dump, trim the bushes and repaint the outside if it needs it.

Check the condition of the roof and make any repairs cosmetic or functional that may be needed. The front of your house is where potential buyers will get their first impressions so it must be spot on. Once you are satisfied with the general state of the house take a look at your own furniture and consider hiring in some new up to date items if needed for open inspection days. People like to be impressed and a little bit of money invested here might just pay off so look at modern furniture and paintings, there are companies who will hire you these items. On inspection day have nice pleasant music playing, some scented candles burning and you will be well on your way to getting the highest possible price for your home. Good Luck!

Sell Your Home Fast By Using These Tips

It is time to make a move and you need to sell your home fast. Use the following strategies to sell your home quickly:

Step 1: My Marketing Strategy

When selling your home, how do you want to distinguish your home from the rest of the flock? How serious and dedicated are you in doing what it takes to sell your house before your neighbor sells his?

There are several steps you can take to speed up the home selling process:

· Have a marketing plan, nothing complex but come up with something that reflects some effort on your part.
· Separate yourself from the local herd
· Do what it takes to distinguish your home by repainting, landscaping, among other creative steps.
· Hold an open house
· Advertise in the local paper
· Post you home on the internet
· Most importantly list your home with a local realtor. A professional realtor can also help you with your marketing plan
· A professional realtor can make the process simple and help your home in the shortest time possible

Step 2: My Price

Included in your marketing plan is your list price. Consider certain things before deciding upon your home value price:

· Don't make it too expensive, if priced too high many buyers will simply gloss over your listing
· Set a realistic price, based on recent sale prices of comparable homes sold in your area
· Evaluate local housing and real estate market trends
· Look at what your competition is doing
· Ask a real estate agent for help in assessing your home value

Step 3: Time to Show My Home

It is time to put your best foot forward.

· Clean your home top to bottom, every crevice, nook and cranny
· Get rid of clutter, have a garage sale if necessary
· Give the home a fresh coat of paint, if it needs it
· Manicure the lawn
· Put some effort in landscaping
· Speak with your realtor about ideas for curb appeal

Step 4: Making My Deal Happen

This is the time to get down to the nitty gritty. Someone wants to purchase your home and has made an offer, time to negotiate.

· Get guidance from your realtor during the negotiation, they are an invaluable resource
· Your realtor works on your behalf to get you the best possible price for your home
· Once you like the offer, it is time to seal the deal, make sure deadlines are met with regards to home inspections, buyer visits, deposits, and other items
· Be prepared for any renegotiation

At the closing, come prepared have the proper documents to seal the deal. Your professional realtor can help you prepare for the close.

Best Commercial Loans For Business Owners

Discover the “Forgotten” SBA Program Worthy of another Look

Much has been written on these pages in the past two years about a little understood and even less used commercial real estate loan program called the 504. As our lending firm was the first and is still the only nationwide commercial lender to exclusively focus on only this loan product, I’d like to succinctly put to rest some of the more common misconceptions about this terrific loan product. Rather than waste anymore ink, let’s get right to issue at hand . . .

Who Uses It?
The 504 loan is for commercial property owner-users. It is not an investment real estate loan product per se. Borrowers of 504 loans must occupy at least a simple majority (or no less than 51%) of the commercial property within the next year in order to qualify. Two operating companies can come together to form an Eligible Passive Concern (EPC) (otherwise known as a Real Estate Holding Company, typically as an LLC or LP), however, to take title to the commercial property. In other words, a 504 loan doesn’t have to be just one small business owner purchasing his commercial property. It could be a physician and an accountant each utilizing 3,000 square feet in a 10,000 square feet office building (at 6,000 total square feet in their LLC, they would occupy 60% and be eligible) for example. Additionally, at least 51% of the total ownership of the Operating company(ies) and EPC must be comprised of U.S. citizens or resident legal aliens (those considered to be Legal Permanent Residents) to qualify.

There are no revenue restrictions or ceilings for 504 loans, but there are three financial eligibility standards unique to them: operating company(ies’) tangible business net worth cannot exceed $7 million; operating company(ies’) net income cannot average more than $2.5 million during the previous two calendar years; and the guarantors/principals’ personal, non-retirement, unencumbered liquid assets cannot exceed the proposed project size. These three criteria usually do not disqualify the typical, privately-held small to mid-sized business owner; only the absolute largest ones get tripped-up on these. Last fiscal year (October 1, 2004 to September 30, 2005), nearly 8,000 business owners used 504 loans for over $11 billion in total project costs representing a recent five-year growth rate in the program of 22% year-over-year.

Why Use It?
These loans are structured with a conventional mortgage (or first trust-deed) for 50 percent of the total project costs (inclusive of: land and existing building; hard construction/renovation costs; furniture, fixtures and equipment [FF&E]; soft costs; and closing costs) combined with a government-guaranteed bond for 40 percent. The remaining 10 percent is the borrowers’ equity and is usually a third to half as much as traditional lenders require. This lower equity requirement lowers the risk for small business owners as opposed to lowering a lender’s risk profile with more capital injected into the project like with ordinary commercial lending. It also allows the small business owner to better utilize their hard-earned capital, while still getting all of the wealth-creating benefits commercial property ownership provides.

Unlike most commercial bank deals, these loans are meant to finance total project costs as opposed to a percentage of the appraised value or purchase price, whichever is less. The first mortgage (or trust-deed) is typically a fully amortizing, 25-year term at market rates, while the second mortgage (or trust-deed) is a 20-year term, but with the interest rate fixed for the entire time at below-market rates. The second mortgage (trust-deed) on 504 loans is guaranteed by the U.S. Small Business Administration (SBA) and is, contrary to popular belief about SBA loan programs, the cheapest money available for typical small business owners. For most of the past two years, the SBA bond rate hovered near six percent fixed for 20 years, which is an incredible deal for any small to mid-sized business owner and very tough to beat. Not only do these loans provide better cash flow for borrowers (by borrowing at better rates and terms), but they also provide the highest cash-on-cash return available in the commercial-mortgage industry which is a financial metric used by most successful real estate investors. Furthermore, these loans are assumable should borrowers decide to sell their property in the future, but a better strategy for most small business owners would be to sell their operating company while keeping their EPC and cashing rent checks long into their retirement.

Why You May Not Know Much about These Loans?
Many bankers and brokers don’t like to offer 504’s because they fundamentally are smaller loan amounts for the bank (typically only 50% first mortgages or trust-deeds versus the common 80%), which means a banker has to work that much harder to bring in more assets and the smaller loan amounts also hit the typical commercial loan officer right in the pocketbook. They would rather discuss the SBA’s more notorious 7(a) loan program, which has a well-established, if not egregiously well-paying secondary market (due to Prime-based, floating rate pricing) already in place, when the issue of low down-payment commercial loans comes up. When you couple those two reasons with the fact that these 504 loans take more effort and skill only on the part of the lender, it’s no wonder this loan product has only recently started to catch fire in the marketplace.

So what are Some Common Questions about These Loans?

Isn’t There Tons of Paperwork Involved?
This was certainly the case years ago, but it is no more. With the advent of more and more specialty lenders and the recent focus on streamlining the SBA application process, 504 loans are no more involved than most ordinary commercial loans. While the documentation is specific and detailed, most small business owners are ably organized and prepared when the alternative is to pay two to three points higher in interest rates with no documentation or stated income commercial loans.

Aren’t There Extra Fees Involved?
When all closing costs are considered, 504 loans usually average about 25 to 50 basis points more in total loan fees on an average sized transaction. With stronger borrowers (i.e. better debt service coverage ratios [DSCR], higher personal liquidity, and/or better personal credit scores), these fees can usually be negotiated lower. Most small business owners utilizing 504 loans are willing to pay slightly higher fees, however, in order to receive longer-term, below-market fixed interest rates on nearly half of their deal, while receiving the highest cash-on-cash return from their property. This is exactly the reason my business partner and I chose a 504 loan when plenty of alternatives were available to us. That’s right – we actually have a 504 loan and have been in the shoes of 504 loan borrowers, so I have first-hand experience of using the loan product that we offer.

Don’t These Loans Take 3 or 4 Months to Close?
This is another old relic of the past regarding these SBA loans. Our quickest 504 loan to date took only 35 days from the first phone call to the closing table, and the commercial appraiser ate-up most of those days while we waited. We’ve done countless others in much less than the typical 60 day commercial real estate contract. If a lender claims they need nearly four months to fund a 504 loan, then perhaps you should look elsewhere. Twenty-four to forty-eight hour pre-approvals and four or five-day commitments are becoming the norm with most specialized SBA lenders.

Aren’t These Loans for Start-ups or Low DSCR Borrowers?
Plenty of 504 loans are approved with start-up borrowers and/or borrowers that don’t have DSCR’s greater than 1.25 times. While it is true that most 504 loans are for more credit-worthy (usually bankable) borrowers, this is not a necessary condition. Frequently, 504 loan borrowers with lots of experience in a given industry, but no actual ownership experience, will have an easier time securing a 504 loan than a conventional bank loan. Projections-based deals and franchised deals are often great candidates for 504 loans when the project involves commercial property. There are other SBA loan programs that may be a better fit for pure start-ups, as 504 loans do not allow for the financing of working capital, but those other SBA loans can often be used in conjunction with SBA 504 loans.

Doesn’t a Borrower have to Pledge their House as Collateral?
Only some lenders require this for 504 loans, and it is increasingly rare. Other SBA loans, on the other hand, must be “fully collateralized” in order to maintain their government-guarantee which is where this generalization comes from. Most 504 loans only secure the commercial property and/or equipment that are financed as part of the 504 loan project.

What if a Borrower has a “Checkered Past”?
Misdemeanors and/or felonies are not in and of themselves, reasons to disqualify someone from getting a 504 loan. There is an added process that often lengthens the time to closing, but the SBA usually approves borrowers with misdemeanors or borrowers with felonies that occurred in the distant past. Defaulting on previous government-guaranteed financing, however, will preclude someone from securing a 504 loan or any other SBA loan. Personal bankruptcies that occurred more than seven years ago usually will not prevent a 504 loan approval, assuming the present-day underwriting variables look promising, but more current bankruptcies are examined subjectively and frequently won’t be approved.

How do you determine who to Call for a 504 Loan?
If you visit a lender’s website to do some due diligence on them, make sure they at least list and/or mention 504 loans, as a means by which you might gauge their competency with these loans. Any lender can say they do 504 loans, but it is far better to work with those that can demonstrate their past experiences with the product, as well as detail their commitment to it on a go-forward basis. Like most things delivered better by specialists, it isn’t usually a question of if a regular lender can provide a 504 loan; it is a question of how well they can provide it. Choose wisely.

Christopher Hurn is President of Mercantile Commercial Capital (MCC), the nation’s leading 90-percent loan-to-cost commercial loan provider. He was recently named 2006 Banker of the Year by his industry’s only trade association, the Marketing Guru of the Year by Coleman Publishing, and the SBA’s Financial Services Champion of the Year for Florida and for the twelve-state Southeast region.

Refinance Used Car Loans - An Advantageous Way To Reduce The Pressure

Refinance used car loans presents a unique opportunity by aiming at reducing the debt burden. If you had bought a used vehicle by availing a beneficial low interest loan and a sudden change in the market made the interest rates suddenly higher, then you can make use of the new rates.

If you think that the pressure the existing loan is a bit higher than your budget can afford, then you need to refinance your exiting funding option. After availing this type of cheap finance, you do not have to pay high monthly installments. These options also benefit those who have improved their credit score and employment status. This acts as a cheap car loan. You can lower the payments by refinancing and by extending the duration, but you might have to pay more interest in the course of the loan.

The amount depends on the current market value and the outstanding amount. You will not be able to get a loan in which the amount surpasses the market value of the used vehicle. Generally, smaller amounts are involved in refinancing of them for used cars and this trims down the hurdles of the lender.

Before applying for any funding option for used vehicles, you should contact your current lender for the balance of your existing finance.

The Cyber Homes:

The lenders like the banks, financial institutions and agencies have a cyber home for catering their services. The vibrancy of the internet has showcased their plans with details. If you want to make use of the refinance used auto loans then browse through a number of sites and obtain quotes from those agencies that interest you. Conduct a background research on the agencies to find if they are reliable. Now compare the results you have in hand and see which one benefits you the most, primarily looking for larger repayment duration and lower interest rate.

You can apply online by supplying details such social security number, employment information, mortgage payment if any; monthly income and contact information may be also required. An online application saves a lot of time and there is no processing charge involved. As online lenders work with several lenders, refinancing should not be a problem if your credit is good or bad.

Finally:

After receiving the check, send it to your previous lender and complete the other formalities as per instructions.

Repair Loans :

Apart from these there is another important thing that you may benefit from - car repair loans. This funds expensive repairs and pays for insurance deductible. It even helps for a major breakdown.