Auto loans are loans offered to customers for the purpose of purchasing new vehicles and also refinancing old one. In India, auto loans fall into three different categories namely two wheeler loans, car loans and commercial vehicle loans. Recent reports say that the sales rate of two wheelers and four wheelers have gone up. Banks… Read More »
The amount by which assets exceed liabilities is called the net worth. This term is applicable to both companies and individuals. In case of an individual, it is the difference between the assets and liabilities of the individual. In business, net worth (sometimes called net assets) is the total assets minus total outside liabilities of an… Read More »
An automated teller machine (ATM) is a machine which enables immediate cash withdrawal from a person’s bank account. This withdrawal requires an ATM card or ATM/debit card and the password to access the cash from the account. This removes the trouble of going to the bank were a person’s account is, to withdraw the cash… Read More »
Using cheques for financial transaction is more frequent these days. The use of cheque as a financial instrument is done in the good faith that the cheque will be honored and cleared when given in for processing in a bank. The condition when the actual financial transaction is not possible by the cheque or the… Read More »
A report of all transactions in an account during the time from the previous statement to the current statement is called the bank statement. It could be report of monthly transactions or even annual transactions. The opening balance of previous period (month or year) along with account of all transactions and the closing balance of the… Read More »
Loan agreements are basically binding contracts between a lender and a borrower that specify the terms and conditions that rule the extension and repayment of the loan. The terms and conditions laid down in the loan agreement are in accordance with the local and national laws prevailing. This arrangement is generally useful for both the… Read More »
Credit history is a report which documents anything related to how an individual managed their financial transactions. The Credit Information Bureau (India) Limited (CIBIL) was incorporated in 2000 by the Government of India and the Reserve Bank of India to provide credit information about commercial and consumer borrowers to a limited group of members, including… Read More »
Secured loans are those loans that are protected or backed by an asset or collateral of some kind. The item purchased using such loans, such as a home or a car, can be used as collateral, and a lien can be placed on such purchases. This is kept with the finance company/ bank will hold… Read More »
A Fixed Deposit / Term Deposit is an account which allows one to deposit money for a fixed time period. When the deposit period is over, (i.e. at maturity of the deposit) the depositors get interest on the amount that is deposited. The fixed deposit interest rates can be as high as 9.5%. Any individual/HUF/Trust/Partnership… Read More »
Debit cards are issued by the banks to its customers. The card allows instant purchase and withdrawal of money from account using ATM’s. Debit cards are different from credit cards in the way they allow purchase based on funds available in the account unlike credit cards which uses a line of credit that can be… Read More »