Thursday, October 16, 2008

Loans -Deals with Financial Problems

Government has made a very important financial dealing by creating LOANS. Loans basically are the debts which one has to pay after the time period of the Loan has finished. The borrower takes the money from the lender (can be any organization or any bank) which they pay, and a genuine loan interest has to be paid by the borrower.

It can be said that it is a legal process of monetary dealings with the borrower and the lender which he has to pay back. There are two types of loans:-
Secured Loans
Unsecured Loans

Secured Loans are those types of loans in which the borrower pledges some assets(property, building, home etc) as a collateral for the loan. Secured type of loan has an advantage over the unsecured one, that the loan will be given back to the lender (as he has the assets of the borrower).

Unsecured Loan are those types of loans that are not secured against the borrowers assets.

Wednesday, October 15, 2008

Why to have financial planning?

Finance term is widely recognized as a very powerful department in any organization or at your home. Every country establishes his financial operations to make his countries financial infrastructure more stable. It lets the financial adviser of any organization to see whether the organization is in loss or in profit. And financial planning plays a vital role for making our future secured. The plans which we make, effects us and our future. It is a way of depicting our daily needs and also our money matter according to that need. This helps to evaluate the expenses and losses with gains (if any).

What do you have to do today to put your children through college? How are you going to cover your retirement needs? If you met with any type of accident then will you will be able to cover that financial need? These are the questions which one will tackle in his life. Financial planning requires excellent interpersonal skills. Like we keep money in banks, it is also a future planning of your finances.


Monday, October 13, 2008

Need Of Finance and Loans

Need Of Finance and Loans
Some times in life one undergoes financial difficulties. The Finance has a central role in implementing Government policy, in particular the Program for Government, and in advising and supporting the Minister for Finance and the Government on the economic and financial management of the State and the overall management and development of the public sector. In formulating this advice the Department is guided by its mission which is to support the achievement of the Government’s economic and social objectives by promoting a good, sustainable economic and budgetary environment, continuing improvements in the efficiency of public services, and an effective framework for financial services.Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your bank accounts, pension and savings will also help make sure they are still right for you. It will also alert you early to potential financial problems. Moreover, financial goals can help you plan your finances more efficiently. You can set one goal - or several goals as part of an overall financial plan. The products suitable for achieving your goal or goals will depend on your resources and individual factors, like timescales and up coming risks.

Short and long-term financial goals

Financial goals can be short to medium term, like paying off a loan, or long-term like saving enough for retirement. Your goal might be linked to a purchase, like buying a car or house, or to the desire to know that you can provide for your dependants in the future.
To help you identify financial goals that could form part of an overall financial plan. Bear in mind that you may have to set new financial goals if something changes unexpectedly in your life, like loss of a job or any accident.

Loans : Loans are used to fulfill the finances. Loans are provided by any organization and also by Banks.

Two types:
short-term loans are those which are payable within a short duration of time (within one or two months), long-term loans are those which are payable after years.

Personal Loans: loans which are required by clients for their personal use.

Business Loans: are used for starting any business or if the company is in crisis.These loans are approved by that particular organization or by the Government.

Student loans: are government-funded repayable financial assistance. This funding is intended to help students finance their post-secondary education. Your eligibility is determined by a standard means test developed by governments. While you pursue post-secondary studies on a full-time basis, the government subsidizes the interest on your loan.

Moreover. Loans can be for the personal usage, like Car Loans or Home Loans or any other type of need.