For first time home buyers

every one can afford to buy a house, especially with their money. We all have other essential requirements. Thus people generally resort to home loans, which is a suitable and affordable means for the first time buyers.First time homebuyers are usually the most confused lot.

They are not aware of different home loan packages that are available in the market.

First time homebuyers should be well aware of loan market.First time home loan buyers must take utmost care while deciding which home loan to avail.

You choose a right home loan you can save a lot of your money.

For the first time buyer it’s not an easy task to gather all relevant information about property and loan in order to take an informed and well-researched decision. Another difficult task is approaching the lenders – meeting them directly is time consuming and a tedious job. This is where honeybee comes handy. There are countless lenders who offer home loans. The fastest way to approach them is through web or online. You will gather lot of information regarding home loans and its lenders. For the first time buyer it’s always fruitful to go through all the norms of the loan market and its lenders before taking a decision.

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.

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.