Finance Tips

Fast loan approval is the need of hour which actually is not proving to be possible in the current economic scenario. However, one cannot change the priorities according to the recession generating inside the country.

There are a lot of expenses like education fees and electricity bills which impose the fines and penalties if one gets late in paying off the expenses. Hence, if not an approval, some transactions have to be done on a quick note.

Therefore, the facility of quick unsecured loans is revealed by the lenders. However, this looks tough when we take names of both ‘quick’ and ‘unsecured loans’ together. But, if one goes for fulfilling all the terms and conditions, he can get this credit product easily inside his pocket.

Firstly, to avail unsecured loans on a quick note, a person have to make sure that no debt from the past is hovering over his head. Here, if the lenders find that the person has has still not repaid all the debts of the past or is having some default recorded over his name, they question the repayment ability of that individual.

One should remember that in case of the loan where no security is pledged, the lenders try to make sure that the borrower is having the ability of repay on time and if they doubt somewhere, the loan gets canceled.

Further, one should also show the permanent employment record to the lender. There is a big chance that a lender might skip on the credit check but, it would be checking the present and permanent income of the borrower to assure the repayments on time.

If a lender would be earning sufficient to repay the installments on monthly basis and would be having less chance of getting unemployed, the larger amount of quick unsecured loans could be disbursed to him.

Hence, getting the hands over an unsecured credit facility has never been a tough task and would not become in future also if the loan seekers fulfill all the terms and conditions.

Over the last few years Indian Banking, in its attempt to integrate itself with the global banking has been facing lots of hurdles in its way due to its inherent weaknesses, despite its high sounding claims and lofty achievements. In a developing country like ours, banking is seen as an important instrument of development, while with the strenuous NPAs, banks have become helpless burden on the economy. Looking to the changing scenario at the world level, the problem becomes more ironical because Indian banking, cannot afford to remain unresponsive to the global requirements. The banks are, however, aware of the grim situation and are trying their level best to reduce the NPAs ever since the regulatory authorities i.e., Reserve Bank of India and the Government of India are seriously chasing up the issue. Banks are exposed to credit risk, liquidity risk, interest risk, market risk, operational risk and management/ownership risk. It is the credit risk which stands out as the most dreaded one. Though often associated with lending, credit risk arises whenever a party enters into an obligation to make payment or deliver value to the bank. The nature and extent of credit risk, therefore, depend on the quality of loan assets and soundness of investments. Based on the income, expenditure, net interest income, NPAs and capital adequacy one can comment on the profitability and the long run sustenance of the bank. Further, a comparative study on the performance of various banks can be done using a ratio analysis of these parameters. There are a number of ratios that can be used to comment on the different aspects :

The essential ratios that can be used for assessing the banks’ profitability and sustenance are

Profitability

Intermediation Costs/Total Assets

Assets

Net Interest Income/Total Assets

Other Income/Total Assets Continue reading ‘Performance measurement of Banks -NPA analysis & credentials of Parameters’ »

Unsecured loans are the ones which are helping the individuals in getting what they want. These are the loans which are helping the people in unlocking many doors and getting the various deals done for the people. these are the loans which have been of utmost important for the people in many ways. These are the loan which have been of great interest and is helpful in solving the various desires of the individuals. Unsecured loans are the ones which have so many features attached to them. These are bad credit availability. This means if individual is having bad credit ratings he/she can avail the offer and use this facility for various purposes. These are the loans which are very effective and can be availed anytime. These are the loans which are very important and can be of great use for the individuals. These are the loans are must for many people from different perspectives. Unsecured loans are available easily on bad credit score so they are also known as bad credit unsecured loans. These are the loans in which there is no requirement of paper.

These loans include less paper work or we can say no faxing. These are the loans which are very effective for different uses and can be treated as great for others. They are of great help in many things but business is the main purpose for which these loans are availed. Unsecured loans are the ones which are of great importance for business. They can be used in expansion of the business, these are the loans which are very much useful in other business related purposes also and have taken a special toll for the people at large. These are the loans which should be taken without any much thinking as they don’t involve assets of the people also. Unsecured loans are the ones which are very much in demand and can be used to get the various deals done for the individuals through the use of the websites. These websites are the ones which are getting the various thing done for the individuals and would be giving as a special treat to the individuals at large. One can get the various deals and can be very fruitful for the people in getting the cheap bad credit unsecured loans deals.

CAPITAL EXPENDITURE

REVENUE EXPENDITURE

1. Nature of Assets purchased

Any expenditure incurred to acquire a fixed asset or in connection with installation (expenses for installation) of fixed asset is capital expenditure.

Any expenditure incurred as price of goods purchased for resale along with other necessary expenses incurred in connection with such purchase are revenue expenses.

2. Discharging Liability

A payment made by a person to discharge a capital liability is a capital expenditure

An expenditure incurred to discharge a revenue liability is revenue expenditure

3. Based on Transactions

If expenditure is incurred to acquire a source of income, it is capital expenditure e.g., purchase of patents to produce picture tubes of TV set.

An expenditure incurred to earn an income is revenue expenditure. E.g. salary, advertisement etc. Continue reading ‘CAPITAL EXPENSES VS. REVENUE EXPENSES’ »