Peer to Peer Lending Around the World

p2p leadingPeer to peer lending has become a phenomenon throughout the world in a very short time Due to the many variations of this practice throughout the world it can be confusing to people when this subject is discussed. Each country or region has its own laws, attitudes and customs in this area and they can differ significantly. So, if you are interested in peer to peer lending as a borrower or lender, or just want to study the topic some more, then read on!

What are some of the differences in meanings for the term peer to peer lending? In many countries, particularly those that are more advanced, technology plays a larger role. Lending and peer to peer investing platforms are online and bring together lenders and borrowers from all over an entire country. Investors do not know the individual whom they are lending money to and only see an online credit profile with which to make their decision. These platforms engaged in hundreds of loans each day. They also process loan applications, check credit of the borrowers and collect payments. These are large, and in some cases, publicly traded companies.

On the other hand, in some countries peer to peer lending is more local and personal. The lender will likely meet the borrower and they will develop a relationship. These relationships can ultimately result in several loans and the trust that allows a borrower to get more money if they have been faithful in their payments.

In some countries, the purpose of peer to peer loans is mostly to pay off credit cards or refinance existing debt. In other places, these loans may be more likely used to start a small business or pay unexpected medical expenses. There are also many other reasons to take these loans and more personal relationships allow the lender to assess the needs of the borrower and the likelihood that the loan will be repaid.

The laws of the land also play a big factor in how these loans, platforms and relationships work. Privacy laws may limit the types of information that a lender can know about the borrower. For example, a loan request for medical expenses may not include details about the borrowers specific medical issues. Credit reporting and bankruptcy laws also vary by country which affects the information available to lenders and may make is harder for them to assess the viability of certain loans. In areas where lender and borrower meet, the personal appeal and information provided by the borrower can go a long way in convincing the investor to make the transaction.

As the world has seen rapid adoption of this type of loan over the past ten years, the number of platforms and models has grown dramatically. Also, governments have scrambled to make laws protecting both borrower and investor. While there have been some issues, for the most part this type of lending has been highly effective for both parties and the future seems bright. Experts expect the outlook to continue to be good and growth forecasts indicate the market will continue to increase significantly.

Term and insurance and tax deductions -What you should know

insurance and taxWe all know that saving money is an art, but saving money on tax is a bigger art. Well, we all are aware of different tax rules associated with our daily life. And who doesn’t want to save money on tax? We basically evaluate all our expenses and savings and try further to save money on tax. One of the most common and highly effective tools associated with tax saving is the investment in life insurance policy. Yes, in India, life insurance is eligible for tax deductions under Section 80C. But do you really think it is simple, there are many terms and conditions associated with the same.

Tax rules you must know

1. When it comes to the tax deduction, there is a certain limit associated with the same. For all those policies which were issued on or before March 31, 2012, the maximum premium amount that will be eligible for tax deductions will be around 20% of the total sum assured. Anything in excess to this will not be liable for any deduction under Section 80C.

2. The maximum premium that is eligible for deduction for the plans that are issued on or after April 1, 2012, will get 10% of the total sum assured as the tax deduction. For example, if you invest in an insurance plan and that too which carries the sum assured of Rs 10 lakhs. Keep in mind that the annual premium which will be eligible for tax deductions would be around 1 lakh cannot be claimed for tax benefits. However, if the person is suffering from an illness that is listed under Section 80DDB or has a disability listed under Section 80U, an additional deduction in premium of around 5% is permitted. Therefore, in such cases, the maximum premium which will be eligible for deduction under Section 80C will be 15%

3. Premium amount that is paid someone else like other than children, spouse and self will not be liable for deductions.

4. In case of maturity, if an individual is fine with all the above-stated criteria, the maturity benefits stand exempted from tax. But if in the case where the annual premium exceeds the percentage limit which is mentioned above, the tax will be levied in accordance with the income tax slab

5. In case of demise of the insured person, the death benefits are not taxable.

Moreover, the good thing is that the term insurance plan which is a strong form of life insurance is not much affected with the same. And, in today’s market, there is the multiple and wide range of such plans is available in the market. Such effective plans carry a sum assured which is much higher than the annual premium. So investing in the same is not a big deal and it always comes out with a wider range of benefits.

However, it is important for you to understand that the concept can be different with single premium policies. As a part of these policies the sum assured is not high just to improve the returns. Therefore the premium amount associated with the same fall low, creating not enough percentage difference between the sum assured and the premium.

Under such policies, the sum assured will not be more than 1.5 times the premium amount. As a result single premium plans will not be liable for the tax deduction.

It is true that a life insurance plan demands a long-term commitment that may last for a couple of years. It is obvious that between the tenure policy you don’t want to discover that you made a huge mistake as your premium will not be liable for tax deductions. Then it will become quite late. Even if you want to cancel the policy then you have to pay unexpected charges.

So it is important for you to pay attention to the tax laws, study the same properly before investing in any insurance plan. Term insurance plan comparison is a great choice if you are planning to invest in the term plan. It will provide the needful financial cover to your family in your absence and will be liable for tax deductions. For making an investment in a term insurance plan, you can take help of PolicyX.com which is a great platform and assisting customers in choosing the right plan for them.

Buying a New Home Is No More a Distant Dream

money for homeEvery individual dreams of purchasing their own home. A safe place where they might want to raise a family, or look after their parents. While the rising cost of real estate often dissuades people from the task, it’s important to remember that with the help of a home loan, your dream home is no longer just a distant hope that won’t be fulfilled.

If you’re hoping to realise your ultimate dream of owning a home, let’s take a look at a few steps that will help you along your journey.

1. Get Your Priorities in Order

Before you even start looking for a house, it’s important that you understand what you’re looking for. Do you want a home that’s in the middle of the city where you work, or do you want something that’s a bit quieter and closer to your hometown? Think about whether you want a large house with a garden or park nearby, or if you’re content with a smaller home with a good view. Figure out what is most important for you to have in your home. This makes the selection process much easier.

2. Outline Your Budget

Whether you’re funding the house by yourself or applying for a loan, it’s important that you have an estimate of how much you can afford to spend on a home. Even if you do take out a loan, you’ll have to factor in the EMIs that you will have to repay into your monthly budget. For a better understanding of what you can afford every month, you can use an online home loan EMI calculator. Once you have your budget and priorities in order, you’ll be able to find a home that meets your needs.

3. Create a Shortlist

The house-hunting process is generally quite a long-drawn one. You may see several houses before you find one that you truly identify with. If you’re lucky, you may like a home the instant you walk in and see it. However, this isn’t always the case. Once you’ve seen a wide selection of houses, you should make a list of the ones that you would definitely consider buying. Then you can list out the pros and cons of each home before making your final decision.

4. Find Financing

Unless you’ve won the lottery or you’ve been saving incredibly well over the last few years, you’ll probably require a loan to cover the cost of your new home. There are a number of loan options available to you, and you will need to find one that fits your needs. Depending on your requirements, you could find a loan that offers higher financing, better interest rates, or quicker disbursals. You could also use a home loan calculator to find out the kind of EMIs you would be required to pay based on the interest rates being offered.

5. Budget for Your EMIs

Now that you’ve found your perfect home and got a loan to finance it, it’s a good idea to come up with a repayment plan. You may have to readjust your monthly budget to factor in your EMIs and curb your expenditure a little. Of course, it goes without saying that you should also ensure you put away some amount of your savings for any financial emergencies that may come your way.

With our 5 quick tips, you could soon be on your way to finding your dream home and settling down with your family. Remember, a home loan doesn’t have to be a burden, it could be the stepping stone that helps you achieve your dreams.

How should you plan for a proper trading method?

money tradingTrading is simple and hard at the same time. It could be either one for you. Or you might experience both while you are in this business. But, if you manage to make a good and simple plan for the growth of your business, it will be very easy for you to maintain your trading performance. With time you can improve your performance and quality of your trading. For that, you must have a basic method of trading. It will be the skeleton for your trading process. And all of the fleshes can be modified according to your preferences. Today we are going to talk about a simple method of trading. Hope you will use this technique for designing your trading approach.

Long lasting trades is first

You might be thinking like a normal business while trading in a marketplace. But here, it is actually the opposite. To make profits, you don’t have to trade too much. If you can trade with efficiency for a long time, it will help you to make a good amount of profit. And the amount would be far better than winning multiple trades. This is the secret of the trading business, to be simple and relaxed. Because with that environment, your head remains sharper than being busy with trades. So, it can think properly and use the strategies in your trade’s plan correctly. And when you can execute a trade correctly and you keep it open for a long time, it will make you a lot of money in the end. So, always try the long trades.

Learning from your mistakes

Learning from your mistake is very hard. But the professional Aussie traders always rely on their past trade to make a decent profit from this market. You might be thinking about the digital journal in the CFD trading industry. Being new to this industry it’s very obvious you will get confused with the long-term outcome of this market. But this is just like your traditional business. You can’t make any real progress unless you trade the market with discipline. To be a disciplined trader you must work really hard. But this is not enough to ensure your profit factors. You must develop the unique skills to learn from your mistakes. Fix your existing issues with the extreme level of care and trade the market with logic. Forget about the big winners even though you have access to high leverage accounts.

Using the daily charts

Before executing any trades, you must observe the condition of the market first. For that, you will have to look at those price charts that are changing in real time. It defines the condition of a market in any current situation. Looking at the charts also have some effects on your trading performance. When you use the smaller time frame charts, it will bother you more than using a longer time frame chart. Because the prices will be frequently changing, you will have to look at them more often. You have to keep up with the market to trade. But, being too busy with chart watching, you might get distracted at the right moment you have to trade. So, you must use longer time frame charts for example at least with 1-hour time span.

Focusing on the position

Timing is necessary for your trades. Otherwise, they might not make good profits. Because the market is not obsolete and it is constantly changing. One minute it could be by your side and the other it can be the opposite side of your trades. So, you must trade with accuracy on time. It is not possible for every trader or every time. But, you must try to improve yourself with time. If you have the focus on timing, one day or another it will get right. Just stay relaxed and look for the right moment to pull the trigger.

Rent’s Due and Money’s Tied Up: Quick Solutions to Footing the Bill

money billsFor some people, renting is a lot more affordable and easier than owning a home. There’s no property taxes, homeowners insurance, maintenance, or repairs that you have to cover. Though it can be convenient to simply pay rent, there are months where footing the bill is easier said than done. A car repair, high utility bill, medical emergency, family emergency, or a mix up with your paycheck can exhaust your funds leaving you in a bit of a jam.

There’s a lot of programs that help homeowners struggling to afford their mortgage payments, but what can you do as a tenant? With only a few weeks before the first and the threat of eviction for nonpayment, you may feel like you’re back is against the wall. Before you throw in the towel and wave your white flag, here are some quick solutions to getting that rent paid.

Work Something Out with Your Landlord

First and foremost, let your landlord know that you’re going to be a bit late on the rent this month. This prepares them financially and could stop them from starting the eviction process. Ask for an extension on the rental payment if possible. If you’re usually good on paying, they may be willing to work out an arrangement with you where you break the past due amount up into smaller amounts and add them onto the regular rental payments until you’re caught up.

Move Some Things Around

Now, take a look at your personal finances. Are there bills that you were due to pay on or around the same time your rent was due? Can these bills be paid at a later date? This can free up some cash you need now and give you more time to pay the other bills later. If another bill is going to be late, reach out to the service provider to inform them to try and avoid fees or collection efforts.

Sell Some Things

When things get down to the nitty gritty sometimes the only way it can be handled is to sacrifice. Perhaps you can clean out your rental property and sell some things for cash. You can get a quick response by taking photos and using an online app to sell to interested parties nearby.

Installment Loans

If your rent payment is due and the deadline is only a few days away, you probably won’t have time to earn enough to pay the balance in full. If you’re simply dealing with a temporary setback (a higher energy bill) and not a serious financial crisis (loss of employment), there are installment loan direct lenders that will lend you a helping hand. If you meet the minimal eligibility criteria, you could have several hundred or thousand dollars deposited into your account within a few business days. Then, you can pay the loan off with conveniently monthly payments.

Get a Roommate

If you’re dealing with an ongoing financial problem like the loss of a job or a decrease in pay, you may want to consider finding a roommate to move in with you. This can be a friend or family member who is in need of a place to stay. You might also offer a room to college students or single individuals who don’t mind a small space. Make sure this is alright with your landlord prior to offering your space. Having someone else in the place with you cuts down on all costs ensuring you can pay your rent on time.

Try Ridesharing

If you can’t get enough to pay your rent from your income, perhaps the solution is to boost your income. Ridesharing has become increasingly popular. Many companies even offer a sign-on bonus of a few hundred dollars. You can get paid a decent amount each day depending on how frequently you drive and where you live.

Government or Private Assistance

Lastly, there are some options for renters who have fallen on hard times. Check with your city, state, and county to find out about government and/or private programs that help tenants with back rent. You may need to meet certain criteria, but if eligible you could have your rent paid for you and even reduced in the month’s ahead.

As cost-effective as renting can be for some individuals, there are times when paying the rent each month is impossible. If your funds are all tied up or you’re going through something that will change your finances temporarily or permanently, there are still resolutions to getting your rent paid. Remember, start by talking with your landlord to avoid eviction procedures and then consider the tips listed above to accumulate the cash you need.