Be a Smart User of Credit Cards

Holding a credit card is something that can be a very positive… as long as it is used responsibly. There are many ways for people to use credit cards to their advantage, but credit cards might also get people into financial trouble. By following a few simple tips on managing the use of credit, a credit card can become a beneficial piece of plastic to own.

Establishing CreditFor anyone who has never owned any sort of credit card earlier and has never loaned money, there will probably be very little information (neither good nor bad) on his or her credit report. Without a credit history, it’s difficult for credit card companies to determine whether or not to offer a line of credit to a person. In this situation, the credit card companies tend to not offer a card on the side of caution. However, if there is any credit card company willing to offer a card with a small line of credit to someone with no credit history, then that card should be immediately obtained. It should be wisely used to purchase a few low-priced items, and the monthly payments for that credit card should be made on time. As time goes on, this sort of spending and monthly payment will allow the growth of a credit report with nothing but good marks. A person’s credit score can continue to grow higher and higher when they show the ability to handle and pay for their credit card purchases. Over the time, a person’s positive credit report will allow him or her to obtain either additional credit cards or credit cards which have attractive interest rates and other types of benefits.

Don’t Charge Too MuchHaving obtained a credit card does not mean it should be overused or misused. If a new credit card has a credit limit of about Rs.50000, it is wise to keep the balance on that card significantly lower than the maximum allowed credit. So, using no more than Rs.35000 – at the most – is reasonable. A credit card company issues the credit limit based on their assessment of how much a person can afford to pay. And, higher balances mean a significant amount of interest must be paid on the balance, which, if not afforded makes the amount due. If the credit card is used to charge more than the available credit limit, the credit card company will issue an over-charge fee and the user will not be able to use the card again until some of the balance has been paid.

Don’t Make Late PaymentsWhen it’s time to make a minimum payment on a credit card balance, PAY IT! Payments should NEVER be late. Late payments can negatively affect a person’s credit report, and in turn, lower a person’s credit score. Making payments on time, conversely, can help a person build a good credit history and earn a better credit score. Knowing the approximate date of receiving the credit card bill every month, prepare ahead of time and make sure there is enough money in the bank to send At least the minimum amount due.

Keep Credit Cards SafeIn today’s world of being able to easily purchase items via telephone or the Internet, it is important to keep credit cards and credit card numbers safe. If the credit card gets into untrustworthy hands, charges could be made to that card without the consent, authorization or the knowledge of the card owner. While most credit card companies do not hold the cardholders responsible for unauthorized charges, it might not look good if this sort of situation arises more than once.

Personal Loans

Personal loans help you to take care of your immediate requirements without much of a hassle. The most attractive feature of the personal loan is that you do not have to give any kind of security to avail this loan. No Security, Collateral or Guarantors are required to avail personal loans. Also, no questions regarding the end use of the loan are asked.

The maximum amount of personal loan for which you are eligible depends upon your net salary take home. Loans are repayable in equal monthly instalments or EMIs. Loan tenure varies from 1 to 5 years. Since personal loans do not require any security or hypothecation of assets, the rate of interest charged by them is higher compared to any other secured loans.

honeybeeindia in news

Web Portal ‘www.honeybeeindia.com’ Launched
Portal Offering End-to-End Loan Services to the Customers

Chennai, Tamil Nadu, India, Wednesday, July 18, 2007 – (Business Wire India)
www.honeybeeindia.com – a bank neutral web portal offering loans and financial consultation services at free of cost to customers is launched. The portal offers the entire spectrum of personal financial products including personal loans, home loans, mortgage and credit cards services. www.honeybeeindia.com is India’s most focused and dedicated personal finance websites, with comprehensive data that addresses consumers’ requirements of financial products, especially loans and credit cards.

Tools and features are designed to help visitors compare financial products online and choose the products that match their needs the best. This easy to navigate portal has remarkable tools like comparative chart, select & compare interest, loan amount calculator and EMI calculator.

The portals hosts other utilities like online application forms for Indian and Non Indian Residents, check lists, application status, eligibility criteria, loan guides, articles on loans, discussion forums, advisors column and free counseling from product experts.

The portal is transparent, independent and highly secured. User information submitted in the site is kept confidential. Content of the website is continuously updated. The portal is an impartial intermediate which simplifies and expedites the process for the customers.

The main source of revenue for the portal is from the charges paid by lending institutions on each transaction executed, hence nothing is charged from the customers.

Talking about the honeybeeindia, Mr. S.Nagarajan, Managing Director, honeybee eSolutions Pvt Ltd, said, “The idea is to help customer with right information at the right time hence allowing customer to take a well informed and well researched decision on their loan matters. Even one percent saved in the interest rate means a lot to the loan takers, by coming to www.honeybeeindia.com loan seekers can find the right lender and save money and time. We also offer value added services like loan counseling over phone and online.”

Customers are also serviced offline, thus the loan seekers can avail “end to end” service from www.honeybeeindia.com by dialing 044 – 4264 1001.

honeybee eSolutions Pvt Ltd.,
New # 16, Old # 34, Saravana St.,
T. Nagar, Chennai – 600 017      

For press backgrounder on honeybeeindia.com click here

Media contact details

S. Nagarajanm Managing Director,
honeybee eSolutions Pvt Ltd,
+91 (044) 4264 1001/ +91 98406 99905,
rajan@honeybeeindia.com

Home Loan Scenario in India

There have been major up and downs in Home Loan Market in India, but the Centre has taken some steps to offer relief to borrowers. With increasing interest rates on home loans, the common man carries the burden of fat EMIs.

Since March, the interest rates fluctuations have been puzzling public and even to some experts. The floating interest rate is now around 11.25-12% while the fixed rate is hovering around 13.25-14%. The beginning of 2007 saw floating and fixed rates at 9.75% and 11%, respectively. If the loan is taken for the short term, the increase in rates – by 150 basis points – changes to a 9% rise in the EMI bill in the last three months.

Adding to the woes came floating and fixed rates which were only 7.75% and 8.25%. This translates to more than one-fifth increase in EMI for the borrowers narrowing down on floating rate loans. In case of fixed rate home loans, it could be one-fourth.

New Guidelines to Cut on Prices

Foreign companies have been trying hard to make big in Indian real estates. Many local real estate developers had been availing the opportunity to raise money from abroad to invest here. Easy money was pushing the property prices and leaving home buyers at the receiving end.

The finance minister cracked the whip on raising foreign funds from May 1. Coupled with the directives released by the Reserve Bank of India (RBI), the foreign fund leash is likely to stem the increasing property prices.

Investment Guidelines

The Government simply wants to keep a sharp eye over speculations in real estate and arrest volatility. No one raises finger on the long term growth potential of the sector. In case, the market continues to witness upward trends, small time investors can ask for their shares as well. The market regulator, SEBI, is learnt to give final touches to directives for realty mutual funds.

FORECLOSING LOAN A BETTER OPTION IN INDIAN BANKS

In 2004 housing loan was available for 7.5% floaing rate.The same has now gone up to 12%.The question every borrower is facing is whether he or sheshould partially foreclose the account.What will be the possible savings?

For example,if one had borrowed Rs.20 lakhs at 7.5 per cent interest for a term of 10 years, the EMI is about Rs.23,471.

Now, the interest rate has gone up to 11.75 per cent and the EMI is 28,406. If he has saved Rs 5 lakhs in the last three years through other sources, would it be better that he pays Rs. 5 lakhs towards the loan? Let us work out the options.

By paying Rs. 5 lakhs towards the loan, the EMI would come down to Rs.23,305.

This would fetch him a monthly saving of Rs. 7, 101 towards EMI.

If he were to invest Rs 5 lakhs in other deposits, it would fetch him only Rs 4,125 per month at 10 percent interest.

It would be advantageous to pay Rs. 5 Lakhs towards the loan and reduce the liability. In addition the loan can also be transferred to another bank, which may offer lower interest rate.

ADJUSTABLE RATE HOME LOAN:

Loan under Adjustable Rate is linked to Retail Prime Lending Rate (RPLR).

The rate of interest on loan will be revised every three months from the date of first disbursement.

If there is a change in RPLR, the interest rate on loan may change.

However, the EMI on the home loan disbursed will not change subject to certain conditions.

If the interest rate increases, the interest component in an EMI will increase and the principal component will reduce resulting in an extension of term of the loan and vice versa.

The two in one home loan provides customers with a choice of breaking up the loan requirement into adjustable and fixed rate loans. This helps them hedge their interest rate risk against rising interest rates to the extent of the fixed rate portion of the loan.

Simultaneously they take advantage of falling interest rates, with the adjustable rate portion.

Banks Prune Home Loan Rates

Interested home loan buyers do not need to be afraid of interest rates anymore and can pick their dream house soon. Since the banks are seeing large investments, the rates are finally falling after nearly three years.

HDFC Ltd. has already cut its floating interest rates by a quarter a percentage point (0.25%) to 11% under its special monsoon offer. The bank has also lowered its processing fee. Following in footsteps is Bank of Baroda. It has recently trimmed its rate by 50 basis points to 11% for loans up to Rs 20 lakh and 11.25% on home loans above Rs 20 lakh.

Then, it is Allahabad Bank which has reduced its rate by 1 percent point cut to 12% to 25-year loans. However, the banks have made offers valid for new borrowers only. Existing home loan customers require waiting for some more time to enjoy a reduction.

Other banks such as the State Bank of India (SBI) are likely to join the race in near future. As the festival season is approaching, these offers will pitch as a bonanza. Well! The good news is that the reduction on interest rates will continue even later as they plan to pass on the decline in the cost of funds. The deposit rates have already come down.

Existing borrowers will have to wait for the reference rate to lower down. However, they need not worry as continued high liquidity in the system will result into lowering of benchmark rates soon, say bankers.

High liquidity is the only underlying reason for bankers to search for potential customers.  Bad loans account for less than 1% of the home loan portfolio. With this, the segment is once again coming up as a nice option for bankers.

Why Honey bee?

We want you to choose honeybee because we offer you: Opportunity to choose the best deal; Transparency in process; Personalised customer service.

With honeybee India you need not go from pillar to post for information. Sitting at home or at office, all you need to do is to fill a form specifying your need for a home loan, personal loan, Loan against Property, and credit card and you can have your loan pre-approved and processed without any hassle. You can gather relevant information about loans from multiple banks, calculate and apply.

honeybee India is a “One Stop Shop” from advice to transactions

honeybee is One Stop Shop for loans. A customer can be certain of getting a best deal when with honeybee. We take special care to ensure that the customer has access to current data and information pertaining to loans and credit cards. We do crosscheck everyday and make corrections as and when banks make changes in their interest rates, processing charges etc. Use ‘comparative chart’ to understand loan offers from different banks, use tools like ‘select and compare’ to compare between banks and ‘calculators’ to know your EMI and loan amount. Finally, you take a well-informed and researched decision with honeybeeindia.

Ideally, we provide a Single Platform Transaction – a convenient and reliable platform from which our users can obtain information, apply for loans or credit cards online or offline.

End to end service

honeybee stays with the customer from beginning till the loan amount is received. One who seeks loan can gather all relevant information with regard to loans, compare loans from different banks, calculate payments and apply online. Our site is designed in such a manner that it carries all information a loan seeker might look for. If the customer still has queries, free counseling is available at honeybeeindia.

The honeybee innovation helps you make an informed choice

honeybee is all about innovation. We are innovative not just in technology but also in the way you use it. Say for instance, all the tools we have are specially designed to give you comprehensive product details – a full picture about the loan you want, so that, you don’t need to visit a bank manager to clarify –honeybee gives you the power to do it yourself using the Internet.

Our continued research will help you make a better choice

We believe that our key Differentiating Feature is research. Our research team will come out with articles and content that will help customer to choose right product.

At honeybee customer is a king

We really mean it, when others make mere lip service. At Honeybee India, we believe in empowering our customers. We let you know and understand all that we know about loans. The whole process and transaction is transparent, which means you are in full control of everything all the time.

As a customer at no point are you at the mercy of the banks/lenders or anyone for that matter. You decide on everything – the lenders, the deal and the loan. This means effectively that you maximize your chances of getting the best deal possible without moving from the comforts of your home.

The individual customer is our primary focus

honeybee India is focused on individual customers. It is for personal finance only – not for businesses or organisations. So we’re 100% for you. And when you deal with us, you’ll have the expertise of a focused financial organization backing all your loan transactions.

At honeybee India, the customer has the control

At honeybee India you take control simply because the money is yours! We just assist you. Actually, we give you a platform to interact with multiple lenders and apply online. Nowhere will we influence you or will do anything without your knowledge.

At honeybee India we offer many Value Added Services

honeybee provides host of value added services, which include various online and personal financial counseling, online and SMS update of loan status and new product availability. Customers can buy products or get information on telephone, through Internet, and can avail of free documentation service.

At honeybee India we offer many Value Added Services

honeybee provides host of value added services, which include various online and personal financial counseling, online and SMS update of loan status and new product availability. Customers can buy products or get information on telephone, through Internet, and can avail of free documentation service.

Where does honeybee differ from others?

As we believe in customer empowerment and transparency, we let you know all that we know, our ‘comparative chart’ helps in comparing loans from multiple lenders, ‘select and compare’ helps in comparing lenders of your choice, ‘EMI and loan calculators’ help in arriving at the exact figure you might pay as an EMI and exact loan amount you would be eligible for.

We have features like discussion forum, where you can post your questions and get them clarified. We also have provided FAQ’S for your reference and offline services. These tools and features help you to make a well-informed and researched decision on your money matters. This is where; honeybee stands apart and stands tall!

Everything is OK, how much does this cost me?

Absolutely nothing, honestly this service comes to our customers absolutely free of cost. We are very happy to help you fulfill your dreams.

Finally, is my information safe?

We take consumer privacy seriously. For details, please refer to our Privacy Policy.

Who are the people behind honeybee?

Please refer Management

honeybee is focused on Customer service

The entire concept of honeybee India is focused on customer service. The whole business model, the process, the technology and the system have been developed keeping the customer in mind and their satisfaction. You can feel this when you use our tools; they are meaningful and to the point and our services are designed to delight the customers.

For more details mail us enquiry@honeybeeindia.com

Welcome to honeybeeindia’s blog

This is Honeybeeindia’s Blog. And the Honeybeeindia team will update this blog with the latest news from loan industry not to mention their latest offerings.

So, if you are looking for a loan or are interested in the loan industry, we suggest you follow this honeybeeindia blog.