Faircent Bureau In the current Indian economy, credit has played a very crucial role in fulfilling dreams on consumers such as owning a house, car, improving the house and so on. You name a requirement and there is credit available in the market to fund it. Just because someone is willing to lend, it does not mean that you can get the loan. Lending behaviour has evolved over a period of time from checking a borrower’s income to his past repayment history in form of credit score before disbursing funds. Given this scenario, a bad credit score is a crucial reason for not securing a loan.
Faircent Bureau Have you been feeling overwhelmed by debt of late? If your target is to free yourself from debt then below are three classic strategies to your rescue as per your comfort. However, one thing is very sure: If you do not have a plan then there is no possibility of emerging from this debt spiral. When in doubt, repeat these words: Plan and Budget: follow the Plan, stick to the Budget. Especially and definitely if you have several kinds of debt.
Late last month a significant piece of legislation was passed in the US. The Jumpstart Our Business Startups (JOBS) Act, which was signed into law by President Barack Obama in 2012, finally introduced a rule that now allows anyone and everyone to invest in startups.
Citizens in the US (known as non-accredited investors) are now allowed to participate in equity crowdfunding and investment in startups and small businesses. The new rules state that startups now have the option to raise either $ 20 million or $ 50 million through two alternate ways.
The Union Budget for 2015 is less than a fortnight away and this year the government needs to fix vital components of the economy and ensure startups are provided the right atmosphere to grow and flourish. According to me, the budget should address the following five issues on a priority to ensure the country meets its growth targets
Everybody has lean patches their life when they will be compelled to take a loan and straighten out obligations and expenses until everything falls in place and assumes a normal flow. Unfortunately, a large proportion of people end up relying on credit cards during stressed times because all they need to do is swipe a card and collect cash.
The last couple of years have been tough for the Indian middle class. Economic slowdown coupled with ever rising inflation has squeezed the finances of every such household. The last couple of decades had witnessed a credit lead growth of the economy, where the availability of cheap credit helped fuel demand generation in the economy. Much of this demand generation was from the middle class which availed home loans, auto loans, personal loans, or relied on credit cards for pacing out their consumption needs.
One of the main reasons for the growing popularity of P2P lending in developed economies has been the rate of returns that investors have been earning. Here is a comparison of the rate of returns from the two major economies, UK and USA, which shows why P2P is gaining such popularity.
UK
In the UK, the top deposit rate for 6 months tenure is around 1.1% while that for a 2 year period is 1.6%. For 6 month fixed rate bonds, the returns are around 0.9-1.1%, while the same for a 2 year period is around 1.35-1.6%.
Even as global markets go shaky and experience volatility making many sweat; it is the Online Direct Lending zone of peer-to-peer finance that not only remains unfazed, but seems all set to offer some dramatically interesting, money-making opportunities even for those who do not have knowledge of the stock market.
