Possible Reasons for Rejection of Your Home Loan

What happens when a well employed person applies for a loan to fund his dream home and the same gets rejected? It is not only highly disappointing but frustrating too that despite the fact that you met all the criteria and are capable of repaying the loan amount at the right time, your application was rejected. We need to investigate the reasons for such rejections and try to avoid them. 

Reasons for Rejection of Home Loan

Apart from the loan applicant not meeting the bank’s requirements for a loan seeker, there are several other reasons that could result in the rejection of a loan application. 

• Unapproved Builder: One of the primary reasons for rejection might be that the builder chosen by you is not approved by the particular bank. It is always advisable to check with the builder about the banks that have approved their projects for lending. This will ensure quick and hassle free clearance of your application.
• Unapproved Project: In this case, the builder may be approved but a specific project may not be approved by the concerned bank. In some cases, certain segments or phases of a project may not be approved by the bank as yet. Such situations may lead to rejection of your application, so it is important to check that the project and the phase in which you wish to buy your dream home is approved for loan purposes by the bank concerned.
• Dispute Over Valuation of Property: The bank may reject an application if the valuation done by its experts differs from the price decided by the buyer and the seller.
• Credit History: Although the current financial position of an applicant may be good, his/her previous credit record plays a important role in helping the bank decide about their finances. The lender will always check your credit record and take note of any delays or defaults by you in paying your EMIs, credit card bills or installments on other loans. So, it is essential that you maintain a good credit record if you wish to avoid rejection.
• Your Address: In case somebody with a bad or poor credit resided at the address in which you live in at present and the same is included in the list of defaulters for a particular bank, your application could be rejected.
• Previous Loan Rejections: These are never ignored. So, it better to apply home loan to one bank, check the reason for rejection, correct the mistake and then apply again.
• Income Tax Returns: You need to have an updated tax filing record because banks prefer to see the income tax returns of the past two years before approving any application. 

Apart from these reasons, banks can also reject loan applications on the basis of mismatched signature, wherein your signature on the loan application differs from the one on other attached documents. Other points considered by a bank for approval or rejection include the age of the applicant, his work experience, educational qualifications, dependent members, number of co-owners in the property to be funded, etc. So, first check with the lender of your choice for their eligibility criteria and ensure that you fulfill them all before applying because rejections also create a poor loan history for you.

The Devastation of Jammu and Kashmir Floods in 2014

Even with the most advanced technology serving us, natural disasters still leave us feeling totally helpless. They come and shake up our lives, leaving devastation and casualties in its wake. One such calamity was faced by what we call ‘Paradise on Earth,’ the state of Jammu and Kashmir.

In September 2014, the beautiful valley faced the worst flooding in almost 60 years. Incessant rains during the first week of the month resulted in massive floods. In many parts of the state, the water level was about 12 feet deep and submerged entire villages. In Srinagar, homes as high as two storeys were submerged in water.

According to data released by the Ministry of Home Affairs, nearly 12,565 structures were destroyed, 2,600 villages were washed away, and approximately 770 people lost their lives due to nature's onslaught. While some people had life insurance of India, others left behind families in complete financial crisis. Damaged homes that needed immediate repairs, huge medical bills and the loss of belongings left people distraught. No one thinks of life insurance plans at such times, but these can help rebuild the lives of your loved ones. No wonder they are considered as guardian angels.

Since mother nature does not recognize political boundaries, the violent outburst stretched beyond India, causing devastation in several parts of Pakistan such as Lahore, Rawalpindi and Sailkot.

PM Modi's Intervention

As soon as the heart-wrenching news reached the PMO, Mr. Narendra Modi instantly left for Jammu and Kashmir to take stock of the entire situation by conducting an aerial view of the flood affected areas. After attending a high-level meeting with the then Chief Minister of J&K, Omar Abdullah, PM Modi announced a compensation of Rs.1000 crores for the state. While this is indeed a huge amount of aid, the magnitude of the destruction was such that people were still running helter-skelter trying to device a way to rebuild their homes, and their lives.

Rescue Operations

A total of 83 aircrafts and helicopters, 350 boats, 10 battalions of the Border Security Force (BSF) and 330 columns of the Indian Army were deployed to rescue the civilians trapped in the floods. There were three aircrafts that carried a total of nearly 50 tonnes of essential supplies including food, medicine, drinking water and clothes for the people left with practically no resources. According to Lt. General Subrata Saha of the Indian Army, over 200,000 people were rescued from different parts of Jammu and Kashmir. He further added that the rescue operations would not have been successful without the assistance and determination of the local youth.

Sometimes it’s difficult to predict a natural calamity and contain the damage through timely action. 

Some strategies are being devised to protect cities from floods, including the construction of flood channels, conducting dredging at regular intervals, monitoring land use and land cover, among others.

Proper disaster management needs to be implemented. As responsible citizens, we could assist in the implementation of such techniques. Besides this, opting for life insurance plans in India is very important to safeguard the financial future of loved ones.

3 Things You Should Know About Whiskey

In the first six months of 2016, the export of Scotch whiskey in India rose by 3.1%, reflecting the booming demand for the product in the Indian market. Going by the numbers, the demand in India grew by 41% by volume and 28% by value, bringing the total sales at 533 million bottles.

For years, it has been a symbol of class, especially for men. Honestly, who doesn't love to keep a bottle of Jack Daniels or well-aged Glenlivet in their cabinet before inviting their friends for a dinner! Having said that, it clearly isn't every man's drink and there are certain things about whiskey that you probably don't know.

There are Different Kind of Whiskies

This fine beverage is distinguished based on its nationality.

• American whiskey is usually sweeter and is distilled in America before being aged in barrels for at least 2 years. Bourbon is distilled from 51% corn; rye is distilled from 51% rye and Tennessee whiskey is distilled in the state of the same name and is filtered through charcoal.

• Scotch whiskey is whiskey is distilled in Scotland and has a smoky and earthy flavour to it. It is aged for at least three years. 

• Irish whiskey is distilled in Ireland and is a light-bodied beverage.

All of Them contain Different Alcohol Levels

All the bottles come with different alcohol levels, which are either measured in percentage or proof. The amount is usually measured on the bottle itself.

You Should Buy Life Insurance Online Before Getting a Bottle Home

Whiskey kills. In fact, any alcohol does. There is a reason why there is a high demand for banning of alcohol in India. According to the Spend analysis for 2013 by the National Crime Records Bureau (NCRB) data, 15 people die everyday due to the effects of alcohol, which comes down to one life every 96 minutes.

These are concerning numbers as the per capita consumption of alcohol in the country grew by 38 percent from 1.6 litres in 2003-05 to 2.2 litres in 2010-12, according to the World Health Organisation (WHO).

More than 11 percent of the Indians fall in the category of binge drinkers and contribute to domestic violence as well. This was the reason why 52 percent people in Tamil Nadu and 47 percent people in Bihar supported the government's decision to impose a ban on liquor stores.

Even after this, if class matters to you more than your health, buy life insurance online so that at least your family's financial future remains safe.

The ultimate financial plan for your retirement

How much money should you accumulate before you retire? Use our handy plan to create enough wealth before you retire.

Your retirement has the potential to be the best phase of your life. But you must start planning for it from today. Are you unsure about drawing a retirement plan? Don’t be – just follow our lead.

1 Tabulate your finances. Use this table below to map out your current finances. It helps you analyse your current spends and cut down on unnecessary expenses. Consider this hypothetical snapshot:

Month	Monthly income	House hold expenses	Saving	One-time expense	Total balance
April 2016	Rs 75,000	Rs 30,000	Rs 2,000	Rs 6,500 life insurance premium	Rs 40,500
May 2016	Rs 75,000	Rs 40,000	Rs 500	Rs 50,000 on holiday	Rs 26,000
June 2016	Rs 75,000	Rs 30,000	Rs 1,000	NIL	Rs 72,000
July 2016	Rs 75,000	Rs 45,000	Rs 1,000	NIL	Rs 1,03,000
August 2016	Rs 75,000	Rs 45,000	Rs 0	NIL	Rs 1,78,000

Ideally, you should hold the sums of money showed in the last column – but if you don’t, you have many hidden expenses or investments that you are not accounting for. Include them to get the most accurate picture of your finances. Also, you must try and reduce the sums in Column 3 (Household expenses) and increase those in Column 4 (Saving) as you progress towards retirement.

2 Assess your investments. After your retirement, when your income stops and expenses continue, only your present-day investments will help you tide over financial uncertainty. Your current investments could include life and health insurance, car insurance, PPF, fixed deposits, etc. Find out your tax liability for the year and look for more investments that can maximise capital and also give tax benefits.

3 Invest in retirement plans. The retirement or pension plan you buy today will reap rich rewards for the future. Look for retirement plans that pay annuity throughout your life and also provide a lump sum payment (i.e. returns all premiums paid) to your partner on your unfortunate demise. Use a pension plan calculator to find all the monies payable in the savings cum protection plan you choose. The retirement planning calculator also helps compute maturity income, tax benefits, death benefit, etc.

4 Recalculate surplus funds in the future. Some lifestyle changes in the future will help you recalibrate your finances for retirement. For example, the 3 BHK house you live in could be sold in the future when you and your partner move into a smaller house post-retirement. You could also sell some of your assets (car, unused furniture) or let out a spare room to make a monthly income.

India Looking Towards a Fruitful Decade For Its Economy

Charles Darwin said, “It's not the strongest of the species that survive, nor the most intelligent but the ones most responsive to change.” Looks like the Indian government has taken some inspiration from those words. In the current decade, that is between financial year 2011 and 2020, India is set to enter a new era of inclusive growth. The results will be visible in the larger population soon, an aspiration that was missing till now.

BIMAROU is the term used for the states of Bihar, Rajasthan, MP, Orissa and Uttar Pradesh, for not using their man power and resources efficiently. They account for 34.7% of the country's geographical area and 40.2% of the population, and yet contribute only 21% to the GDP.

Ever since the country's independence in 1947, a need for more equitable growth was recognized but the efforts to uplift the weaker sections of the society started only recently. The BIMAROU states lagged here as well, and although it will take more time for fully inclusive growth, the current decade will definitely see huge progress in this regard.

Reason for This Strong Belief

Many a times, people tend to associate development with political aspirations alone. However, there is a bigger picture being painted in this South Asian country. There is a significantly large untapped market in the rural parts and to unlock this potential, the government as well as private companies are taking important steps. By the end of 2020, there is expected to be a massive improvement in terms of infrastructure, education and healthcare.

There is also a special focus on improving the condition of the financial services in the country. Services like endowment policies are being encouraged. For example, Bihar has the lowest per capita deposit and credit, which means there is a huge potential market for endowment policy there.

How Some of the Indian States are Expected to Behave in This Period

• The share of the eight larger states of the country, the BIMAROU states as well as Gujarat, Andhra Pradesh and Maharashtra, in India's GDP is expected to grow from 51.5% in 2010 to 55.9% in 2020.
• The contribution of the BIMAROU states alone will be 24%, an improvement from 21%.
• Maharashtra is expected to be the largest contributor, at 15.6% in 2020, although Gujarat is likely to leave it behind in terms of per capita income.
• The per capita income of Madhya Pradesh and Bihar is expected to triple in this period.

Many financial companies are expected to invest in these states in the coming years, driving this growth. Investments made in endowment life insurance, retirement plans, etc, will also yield good results. State governments have taken important steps to attract investors by improving the infrastructure as well.