Tuesday, June 30, 2015

Impact of Greek Debt Crisis on Indian Markets !

How would the Greece Debt Crisis reflect on Indian Stock Markets and what impact will it have on the Indian Economy ?

This is a very important question of the hour.

I welcome all my valuable readers to Add their COMMENTS and VIEWS on my blog below.

Monday, June 29, 2015

Loans for Sellers from Amazon.com

Sellers on Amazon can get funds for their business.

Amazon has announced that it will be launching a program which will provide loans to new businesses.

According to thenextweb.com, the idea is to help them get started and gain market share.

Reuters reports that selected sellers in Canada, China, France, Germany, India, Italy, Spain and the UK will be eligible for the loans from later this year.

The service has been in limited testing in the U.S. and Japan for a number of years. It offers three to six month loans of USD 1,000 to USD 600,000 to help new sellers buy inventory.

Amazon takes repayments directly from the seller's earnings.

Saturday, June 27, 2015

Secured Loans and Unsecured Loans Explained

There are two basic categories that most loan types fall into – Secured and Unsecured.

Secured Loan
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 finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.

Secured loans are usually the best (and only) way to obtain large amounts of money. A lender is not likely to loan a large amount with assurance that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.

Secured loans are not just for new purchases either. Secured loans can also be home equity loans or home equity lines of credit. Such loans are based on the amount of home equity, which is simply the current market value of your home minus the amount still owed. Your home is used as collateral and failure to make timely payments could result in losing your home.

Secured loans usually offer lower rates, higher borrowing limits and longer repayment terms than unsecured loans. As the term implies, a secured loan means you are providing "security" that your loan will be repaid according to the agreed terms and conditions. It's important to remember, if you are unable to repay a secured loan, the lender has recourse to the collateral you have pledged and may be able to sell it to pay off the loan.

Examples of Secured Loans:
  •     Mortgage
  •     Home Equity Line of Credit
  •     Auto Loan (New and Used)
  •     Boat Loan
  •     Recreational Vehicle Loan

Unsecured Loan

On the other hand, unsecured loans are the opposite of secured loans and include things like credit card purchases, education loans, or personal (signature) loans. Lenders take more of a risk by making such a loan, with no property or assets to recover in case of default, which is why the interest rates are considerably higher. If you have been turned down for unsecured credit, you may still be able to obtain secured loans, as long as you have something of value or if the purchase you wish to make can be used as collateral.

When you apply for a loan that is unsecured, the lender believes that you can repay the loan on the basis of your financial resources. You will be judged based on the five (5) C's of credit -- character, capacity, capital, collateral, and conditions – these are all criteria used to assess a borrower's creditworthiness. Character, capacity, capital, and collateral refer to the borrower's willingness and ability to repay the debt. Conditions include the borrower's situation as well as general economic factors.

Examples of Unsecured Loans:
  •     Credit Cards
  •     Personal (Signature) Loans
  •     Personal Lines of Credit
  •     Student Loans (note that tax returns can be garnished to repay delinquent student loans)
  •     Some Home Improvement Loans

Thursday, June 25, 2015

Why Purchase Structured Settlement !

Structured Settlement is known as an arrangement of financial or insurance meaning that provides the person with regular payments over the course of several years or for the rest of his life. Many types of Structured Settlement like Personal Injury, Wrongful Death and Worker’s Compensation. You can defined as a structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving periodic payments on an agreed schedule rather than as a lump sum. Structured settlements were first utilized in Canada after a settlement for children affected by Thalidomide. Structured settlements are widely used in product liability or injury cases (such as the birth defects from Thalidomide). Lets have a look on real life example: A factory worker Jonathon was standing on a ladder installing new hardware for the company. When he slipped and had an untimely death the court had ruled that the factory was negligible in his death. His wife Diane was the recipient of his structured settlement. The factory's insurance company agreed to pay out for the next 30 years, $3,500 a month just above what Jonathon was bringing in at the factory each month.A structured settlement can be implemented to reduce legal and other costs by avoiding trial. Structured settlement cases became more popular in the United States during the 1970s as an alternative to lump sum settlements. The increased popularity was due to several rulings by the IRS, an increase in personal injury awards, and higher interest rates. The IRS rulings changed policies such that if certain requirements were met then claimants could have federal income tax waived. Higher interest rates result in lower present values, hence annuity premiums, for deferred payments versus a lump sum. There is a difference between SS and Structured Settlement Annuity. Please don't mix up.

Structured settlements have become part of the statutory tort law of several common law countries including Australia, Canada, England and the United States. Structured settlements may include income tax and spendthrift requirements as well as benefits and are considered to be an asset-backed security. Often the periodic payment will be created through the purchase of one or more annuities, which guarantee the future payments. Structured Settlement Broker who is also known as an Annuity Broker, is an expert of prepared in arranging a payout plan for a money related settlement Structured issues. Settlement payments are sometimes called periodic payments and when incorporated into a trial judgment is called a “periodic payment judgment."