Follow us on - Bankfin linkedin Bankfin google-plus


Unsecured / Secured / Wealth Management

Unsecured Loan

An unsecured loan is one where the individual/business doesn’t offer any collateral for the repayment obligations. Here, the lender’s risk is higher, because an event of default will leave that lender totally exposed – and without any other specific asset against which to recover what remains due under the loan. For obvious reasons, these unsecured loans will be offered at higher rates than secured loans.

What are types of Unsecured loan? Business Loan / Personal Loan/ Ecommerce Loan / Professional Loan / Unsecured OD / Working Capital

How is my loan amount/eligibility calculated? Loan amount is dependent primarily on your last two years income , the current loan obligation and the credit score of the individual / entity and/or the partner/director/proprietor of the borrowing entity as reflected in CIBIL

What is an EMI? EMI or Equated Monthly Installments is the fixed sum of money that the borrower pays to the bank every month. A part of the EMI goes towards payment of interest while the remaining goes towards payment of the outstanding loan balance.

What is a Loan Tenure? A loan tenure is the duration or the number of years over which the borrower agrees to repay the loan. This is typically in the range, 1-5 years

Pre Closure vs part- prepayment? Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount Some banks have a lock-in of 6 months to a year while some banks allow you to pre close even after the 1st EMI has been debited from your bank. In addition, banks may levy a pre closure fee (2-5% of the amount being pre-closed). Some banks also allow part payment

What is the minimum and maximum loan limit offered 50000 – 10000000

How long does it take to disburse the business loan? 5-10 working days

What is Loan repayment? Loans are meant to be repaid over a fixed period known as the tenure or duration of the loan through payment of a fixed monthly installment known as an EMI (Equated monthly installment). This process is known as loan repayment. The customer needs to give few PDCs (Post dated cheques) and sign an ECS mandate in favour of the bank disbursing the loan.

How is the interest on my loan calculated? Interest on a loan is payable on the entire loan balance at any given point of time and the simplest method of calculating interest is: Interest= (Principal X rate X time)/ 100.

What are the bases of interest rates calculation? The interest on most loans is usually calculated on Monthly Reducing or Yearly Reducing balance. In Monthly Reducing Balance, as you pay your Emi each month, the principal part of the EMI is adjusted against the outstanding principal on a monthly basis, however in Yearly Reducing Balance, the principal is reduced at the end of the year, therefore the borrower pays interest on a certain part of the principal which has actually been paid back to the bank. This means that the monthly reducing system is a cheaper means of paying on your loan.

What is the difference between reducing and flat interest rate? Reducing Balance Interest Rate needs the borrower to pay interest only on the remaining loan balance. Flat Interest Rate is where the borrower needs to pay interest on the entire loan balance throughout the loan term.

Is there any extra charge payable when applying for loan? Processing fees between 1-3% of the loan amount.

What is loan insurance/ credit insurance? Most lenders offer an insurance plan covering the outstanding amount on the loan. This is usually a depleting term plan which covers the risk of an unfortunate event in the borrower’s life that may lead to inability on the borrower or his/ her family’s part to pay the loan installments. These are usually single premium policies taken at the time of availing the loan.

What is a Loan Outstanding? At a given point in time every open loan has a balance principal, which is still required to be paid. This is the loan outstanding amount

What is a Loan Agreement? A loan agreement is a legally binding contract between the borrower and the lender which outlines the terms and conditions on which the borrower and lender agreed to the loan. In the event a borrower is unable to make the loan payments, the lender can take legal recourse with the help of the loan agreement.

What is a Cheque bounce fee? The lender can levy a charge on a borrower’s account for each time the borrower’s monthly payment does not clear. This is known as a cheque bounce charge/ fee.

What is a default? Continued inability to pay your installments for any reason constitutes a default on your loan. At this point the bank/ lender can demand a payment of the full outstanding amount of the loan. The lender can also serve a legal notice on the borrower and in case of secured loans, acquire the loan security (property car etc) and try to dispose of the same to recover their money.

Secured Loans

Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on such item. The debt is thus secured against the collateral — in the event that the borrower defaults, the creditor takes possession of the asset used as collateral and may sell it to regain some or all of the amount originally loaned to the borrower, for example, foreclosure of a home.

What are types of secured loan? Loan Against Property / Lease Rental Discounting (LRD)/ Commercial Property Purchase Loan (CPPL)/ Construction Finance /Home Loan/Working Capital/Auto Loan/Gold Loan

Can I use the money obtained from Loan against property for business activities? Yes. You can use the loan obtained by mortgaging your property for business activities as well as for any personal financial distress you might be facing. However, you are not allowed to use the money for any illegal or speculative activities.

Who is eligible for Loan against Property? The Loan against property criteria vary from one bank to another. However, the common factors that all banks consider are:
Your income, savings, debt obligations
Cost/value of the property mortgaged
Your repayment track record for other loans, credit cards

Do I need a co-applicant for this loan? A co-applicant for loan against property is mandatory only when the property being mortgaged is owned by more than one person. In such as case, all co-owners of the property mandatorily become co-applicants.

What do you mean by the market value of a property? The market value of a property is the estimated value in terms of money that a property can raise if it is sold at prevailing conditions.

What types of properties are accepted by lenders providing Loan against property? Lenders accept various types of property whether they are residential (rented out and self occupied) or commercial use properties. A plot of land without any construction can also be considered as appropriate collateral by the prospective lender.

Are only residential properties eligible for loan against property? No, you can avail a Loan against mortgage of residential/ commercial property owned by you.

For how long can I can take a loan against property and what interest rate will I be charged? The tenure of a loan against property can be as long as 15 years, with interest rates ranging from 12% to 15.75%. The exact tenure and interest rate on your loan may vary to a certain extent from one lender to another.

Can NRIs avail loans against property? Yes, several financial institutes offer loans against property to NRIs, subject to verification of all documents.

Do banks accept uninsured property to sanction loan against property? No, in most cases, banks require the property to be insured before approving a loan.

Can I prepay my loan against property? Yes, you can prepay the loan taken against property; however, you would have to abide by certain terms & conditions levied on prepayment of loan by the particular bank.

Wealth Management

Wealth management is a high-level professional service that combines financial and investment advice, accounting and tax services, retirement planning and legal or estate planning for one set is a practice that in its broadest sense describes the combining of personal investment management, financial advisory, and planning disciplines directly for the benefit of high-net-worth clients.

What is the meaning of wealth management? Wealth management is a practice that in its broadest sense describes the combining of personal investment management, financial advisory, and planning disciplines directly for the benefit of high-net-worth clients.

What is the difference between wealth and asset management? Asset management refers to providing investment products & advisory services to individual clients & institutional investors.Wealth management refers to specialized services provided to meet the wealth planning, investing & financial managementneeds of Wealthy & High Net Worth individuals.

What is wealth management and investment banking? Wealth management is kind of a bank within a bank,that aims at offering the full spectrum of banking services to high net-worth individuals. Services may include asset management, brokerage, market making, loans, tax planning, succession planning, and even some middle-market mergers and acquisitions. The Corporate & Investment Banking area provides worldwide coverage for large corporations, financial institutions, infrastructure funds, venture capital, sovereign wealth funds, government issuers and central banks, as well as the Mergers & Acquisitions and Equity Capital Markets (ECM) teams

What is the minimum level of investment required? There is no prescribed minimum level of investment that we require to start our relationship. However, to gain access to more sophisticated services and privileges, we may require a certain minimum commitment from you.

Why bankfin  for wealth management services? Offers independent, unbiased investment advisory service. 
Qualified and experienced Advisory desk to recommend the products that are best suited for you. 
Product performance based and not commission driven recommendations. 
Investor counseling where not to invest your hard earned money. 
Customer oriented approach. Both holistic financial planning and Goal based financial planning undertaken..  Analyze and evaluate your cash flows and financial status. 
Define your goals. 
Determine your risk tolerance level. 
Ascertain your Tax situation. 
Determine your Insurance needs.
Finalise appropriate asset allocation for you.
Prepare a financial plan best suited for your goals, Implement and review the same periodically

Request a Call Back