Buying a resale property comes with its own set of benefits and challenges. While you get access to a strategic location, property transaction disputes arising from ownership rights isn’t unheard of.

Have you zeroed down on the resale property you wish to buy, but are a little unsure about how to authenticate its ownership? Fret not! We are here to help you overcome this challenge so that you can validate if the house of your dreams has a clean title of ownership.

Sale Deed

The first step towards substantiating the ownership of a resale property is to ask the previous owner to furnish legal documents related to the property.

The Sale Deed is the most important document to determine who owns or owned rights to the property. The deed is drawn on a non-judicial stamp paper of fixed value, as specified by the state government. It needs to have details such as:

• Price of the property
• Terms & conditions agreed upon by the parties
• Payment history
• Personal details of the parties
• Location/construction details of the property

There have been cases where miscreants used fake non-judicial stamp paper to commit fraud. Therefore, it is advisable to hire a legal consultant who could check the sale deed on your behalf to test the legality status of the document.

No Objection Certificates

Run a series of a check by asking for documents that prove that there’s no pending violations or disputes. Checking this would ensure that you are not penalized for changing the layout in the future. Nor you are not stuck with unpaid dues of the previous owner. This would include:

• Looking at the sanctioned building plan to check if the approved plan of the space by relevant authorities of your state and the one being sold to you has any discrepancy
• NOC from the residential society that approves the transfer of title along with original possession letter and share certificate
• A record that reflects previous bill payments such as property taxes, electricity bill, water bill, maintenance charges, telephone bill, gas bill and other utilities up to the date of handing possession
• General Power of Attorney document, if you are buying a property from an authorized representative of a property owner who lives outside India

Debt Status

Did the previous owner take any personal or private loan for the property? Has it been cleared? It is wise to demand a NOC issued by the bank from the previous owner so that you get a mortgage-free property. Ask for clearance proof, in case the owner borrowed money from a private lender, family or friends.

Encumbrance Certificate

If you plan to buy the property via home loan or are looking to apply for a loan against property, then you would need an Encumbrance Certificate. EC assists in determining the legal ownership of the property and check if it is free of any debt.

Here are the features of this certificate:

• It tracks down all financial transactions registered against the property for a particular period
• While government authorities and lending institutes ask for 10-15 years of encumbrance, as a buyer you can ask for up to 30 years encumbrance certificate to be verified by the authorities
• A person needs to submit the encumbrance application at the jurisdictional sub-registrar’s office
• It takes about 15-30 days for the authorities to conduct the necessary check and issue the certificate.

Verify Property Registration Online

Original registration and stamp duty receipts are two of the other important documents that a buyer needs to demand from the seller while negotiating a resale property deal.

In this digital age, it is also possible to check land records online. Many states in India provide computerized Record of Rights (RoR) that a person can check after registering on the website. For instance, you can find land records for Uttar Pradesh here. Similarly, there are online registries of states that give land record details or have listed out the procedure:

• West Bengal
• Tamil Nadu
• Telangana
• Andhra Pradesh
• Maharashtra
• Madhya Pradesh

One quick search online would take you to the land records sites of other Indian states.

The legal requirements to own a piece of land or property, changes with State to State in India. Within each state, the rules are different in urban and rural pockets. In addition, the method of record keeping also differs, more so in the case of old properties or the properties built on agricultural land.

Therefore, it is sensible to hire an expert or advisor during the purchase process. A property expert would be able to guide you about verifying the ownership of a resale property. In most cases, reputed lenders or financial institutes do offer assistance in getting these legal formalities straightened out before finalizing the loan terms.

Debt is a necessary evil of our financial life cycle. It can help you fulfil essential milestones of life such as building an asset – your house. But the same debt can cause you mental distress by disturbing your financial peace. What separates good debt from bad debt is a healthy debt-to-income ratio.

Read on to find out if you’re dealing with an overwhelming amount of debt. Learn the difference between good, bad and toxic debt.

As long as you resolve to solve your money woes, there’s a way out of the debt pile.

How much debt is too much?

Regardless of whether the debt is good or bad, you ideally want it to be as low as possible. It is vital to balance your liabilities and income to stay financially flexible for emergencies and life goals.

If you’ve reached a stage where you’re struggling to keep up with your loan’s repayments, you’ve likely hit debt saturation. It is recommended that you maintain a debt-to-income ratio of less than 43%. Anything above 43% is a sign that you’re dealing with a financial crisis.

Use our debt calculator to find out how problematic your debt is.

Here’s what your scorecard says about your debt:

• DTI<36%: A debt-to-income ratio that’s less than 36% indicates that your debt is affordable compared to your income.

• 42%>DTI>36%: Things aren’t still out of hand. You can use some DIY techniques to defuse your debt– debt avalanche or debt snowball. You can choose to pay off the highest or lowest interest debts first, respectively. An unsecured personal loan taken to consolidate debt can help you combine them into a single loan.
  
• 50%>DTI>43%: If you’re DTI is above 43%, the chances are that you’re overwhelmed with repayments. You should consider professional help from a not-for-profit credit counselling agency. Denying your financial problems may worsen the situation. It is best if you act on it.
  
  While these guidelines are a more generalized thumb-rule, know that one size doesn’t fit all in financial planning. Devise debt management strategy that suits you best and take action accordingly.
  
  

  Is debt always bad?

  Now that you have some clarity on your debt-to-income ratio, the next step is to understand the kind of debts you’re dealing with. A good way to start is by separating the good, bad and toxic debt.

  Good debt

  Debt isn’t always bad. A loan with a low, fixed interest rate that you borrow to build or invest in an appreciating asset, such as your house or business, is good debt. What’s even better is a mortgage or student loan whose interest is tax-deductible.

  Bad debt

  When you borrow a high-interest loan to finance the purchase of a depreciating product, a high APR credit card debt with an increasing balance, for instance, may be affecting your financial wellbeing. A loan or credit, if used responsibly, can help you spread the cost of your purchase into affordable instalments. But taking on more debt than you can handle can put your finances at risk.

  Toxic debt

  If you live or have lived from payday to payday, the thought of getting a payday loan must’ve crossed your mind at some point. Some of us did end up falling into the trap of this high-cost short-term credit. Payday lenders use the no-credit-check marketing gimmick to attract vulnerable customers and then impose exorbitant interest rates. The APRs can exceed 36%, and you end up paying way more than the item’s worth. Pawnshops that require collateral you can’t afford to lose, such as your car, also exemplify toxic debt.

  A mortgage borrowed at 3.5% APR and a credit card with a 26% APR , for instance, can be weighed differently. When you accumulate bad debt with sky-high interest rates, it impacts your cash flow, limits your savings and hampers your ability to borrow credit to reach important milestones in life.

  Can my other types of debts cause problems?

  Here’s an idea of how much debt is too much in the following categories and what you can do if you’re overwhelmed with payments:

  Auto Loans

  The recommended total for your auto loan costs, inclusive of car payments, should not exceed 20% of your take-home pay. The length of your loan term should ideally be four years or less, along with a 20% down payment. Keep your loan term short will ensure that you don’t pay more than what the vehicle is worth. If you choose a longer-term, you’re only piling on more interest.

  The solution: Financial circumstances can change. If you find it challenging to keep up with your auto loan, consider refinancing it or switching to a less expensive car.

  Housing

  Buying your first house is probably one of the biggest life goals. Your mortgage should ideally not exceed 36% of your income.

  The solution: If you’ve been sincerely repaying towards your loan obligations, the chances are that your credit score would have improved over time. You may now be eligible for better interest rates on your mortgage. In such a case, mortgage refinancing could help you replace your existing mortgage with a better one – better in terms of interest and repayment period. Another way is to downsize or move to a less expensive area.

  In case you plan to move to a new place or refinance your mortgage in your 40s or 50s, consider a 15-20 year mortgage plan. This will allow you to pay off your debt by the time you retire.

  Medical Expenses

  Medical expenses are often unforeseen and beyond our control. In many cases, this debt may be interest-free, but some costly medical procedures can break the bank, making the debt intractable.

  The solution: The first and foremost step would be to address the financial crisis and negotiate with the billing office to lower the amount. If you feel that you can repay the entire bill but need more time, you can set up an affordable payment plan with them. Debt relief can be a possible solution, but you’ll be better off covering the costs on your own.

  Education Loan

  Education loans can be tricky business if you lack a realistic approach towards the job market. Try not to borrow more than what you expect to earn in the first year of your employment. For instance, if you’re expecting a starting pay of £30,000, you should stick to borrowing £10,000 per year for a three-year degree. Over-borrowing doesn’t pinch you at the time of borrowing but disturbs your financial equilibrium once you start earning and saving. Besides, the sooner you pay off your education loan, the sooner you will be able to fulfil subsequent life goals.

  The solution: You can go for an income-driven payment plan which will give you some repayment flexibility. These plans depend on the borrower’s income rather than the loan amount owed. Explore your repayment options and choose one

  How to handle an overload: Explore your repayment options, including income-driven repayment plans and refinancing.

  Do I have too much debt to deal with?

  Are you struggling to keep up with your debt payments? Or, are your high-cost debt payments holding you back from accomplishing your life goals? If that’s the case, the chances are that you’re dealing with a debt overload. Even if you’re making timely repayments, a debt overload can cause financial imbalance – inability to save money, missing bill payments, or borrowing to regulate cash flow for day-to-day expenses.

  Here are 5 signs to help you find out if you have more debt than you can handle:

  1. You don’t know how much money you owe: Living in denial or trying to escape a problem is not a long-term solution. If you’re doing it on purpose, it’ll only make things worse. We know it’s a long battle, but to win it, you must start somewhere. Pull out a copy of your credit report and recent bank statements and make a list of all the outstanding balances. Crunch the numbers to find out your total payable debt.
     
     
  2. You’re borrowing more to pay off your debts: If you’re struggling to stay afloat and have borrowed money from friends, family, and pawnbrokers or used a cash advance to make payments, you’ve accumulated more debt than you can handle. You’ll eventually run out of places to borrow. Plus, you’ll have to sort out the debt you’ve piled up with your family, and things could turn awry. If you’re low on income, a good way to cope with debts would be by starting a side hustle to make extra money. You could also revisit your budget and streamline it by eliminating unnecessary expenses.
     
     
  3. Avoiding phone calls from collectors: If you’ve been neglecting your debt for too long, you’ll eventually hear from debt collectors seeking to recover their money. You may be able to avoid their phone calls, but things can go off-course if they decide to take legal action against you. Lenders can summon you to court and get a County Court Judgment (CCJ) issued in your name. A CCJ can leave a lasting impact on your credit profile, hampering your chances of securing credit in the future. A positive approach in this situation could go a long way. Instead of dodging their phone calls, communicate your problems and devise a more affordable arrangement to repay your dues.
     
     
  4. You’ve exhausted all your savings: If you’ve spent all your savings while trying to settle your balances, it indicates a problem. Even if you drained your savings to make ends meet, it’s equally big a problem as using your savings to pay off debt. In either case, your circumstances may force you to take on more debt to stay afloat or to tackle an emergency. Again, try to find out ways to maximize your income or cut down miscellaneous expenditure from your budget.
  5. You need credit to survive: When you start using your credit card to buy household basics, that’s when you know you’re dealing with a severe financial crisis. If you lack money to sustain your basic lifestyle, that means either your earnings don’t suffice, or you’re not spending responsibly. If it’s the former, you should figure out a way to increase your income. Otherwise, address your spending issues by making a budget and strictly adhering to it.

  Here’s what can help: The 28/36 rule

  The 28/36 rule is a general principle that you can use to calculate a manageable debt load. Herein, a household shouldn’t spend more than 28% of their gross income on housing expenses. This figure is inclusive of mortgage payments, homeowners insurance and property tax.

  And the 36% figure denotes the maximum percentage of gross income that a household should allocate to total debt service, such as auto loans and credit card debt.

  For instance, if your gross annual income is £38000, as per the 28/36 rule, your housing expenses should be less than or equal to £10,640 annually or £886.67 monthly. Similarly, your debt servicing cost shouldn’t exceed 36% of your gross annual income.

At one point or another, we’ve all had our own share of trouble with personal finances. Whether it’s not fully understanding how the interest rate worked on your first credit card, or not properly budgeting to pay off student loan debt, we all could have used a little more early instruction on how to take care of our finances. The good news, however, is that it is practically never too early or too late to start.

Here are five ways that you can help ensure your kids have a solid foundation of financial skills to lead them to a prosperous future.

Start them young.

It is never too early to start thinking about your offspring’s financial future. The concept of saving and spending can be understood as early as 3 or 4. Consider starting a three-jar system in which to store your child’s money. The first jar should be labeled “Save,” and should be saved over the longer-term for a larger purchase. Label the second jar “Spend,” and allow them to spend this money on smaller items more freely. The third jar should be labeled “Share,” and this money can be used to donate to a cause or charity of the child’s choice. Any time your child receives money, put 1/3 of it into each of these jars. Your child will be able to watch the savings jar fill slowly, while the amount of money in the others will fluctuate depending on how much they spend.  

Get them a bank account.

As your child gets older and their cash-flow is outgrowing the holding capacity of the savings jar, it might be time for them to move on up to a savings account at a bank or credit union. A basic savings account will also introduce them to the concept of interest, and how it functions. Show them that just for putting your money in the bank, the bank will give you a small amount of money in return… forever. Having our money work for us is never a bad thing, and a savings account is one of the easiest ways to demonstrate how that works.

Make in-store or online shopping an event.

This one is fun for the whole family! Make your next online or in-store shopping experience an event, and involve the kids. Give them small tasks that will show how to find the best value for their money. For example, try giving your child $5 and ask them to buy certain kinds of fruits, and help them figure out how many of each they can buy. You can also count out cash and let them hand it to the cashier as “practice.” All of these techniques immerse your child into the world of being a consumer, and they will have that much more financial experience under their belt. 

Should you give an allowance?

While the debate of whether or not we should give children allowances roars on (and is beyond the scope of this article), giving money to your child for chores or deeds done can be a great way to introduce income into the educational experience. With more income comes more financial freedom, but also more risk, in that they can easily outspend what they earn if a proper budget is not in place.

Lead by example.

Even if you are not the greatest personal financier, teaching your kids the foundations of good money habits may change your outlook on your own finances. Being in control of your household finances can also help to avoid future problems with credit cards and loans. All of the habits discussed can be scaled up as income grows, and you can start implementing these practices at any time.

With hard work and a little luck, your child will have a good understanding of financial fundamentals by the time they head off to the land of adulting and paying rent and utility bills!

Absolutely yes, you can go for a Balance Transfer for personal loan to other banks if it is really beneficial with lower interest rates.

You should also analyse the EMI you pay and the closing charges for that particular bank , since some bank impose high closing charges, particularly if the loan is being closed within 6 months. This period varies for Banks, so please check your current agreement to be sure of this.

In addition, you should consider the processing charge of the new loan and the difference between current and new(proposed) EMI to be sure of your effective saving in the transaction.

You can apply for an attractive offer with best possible Rate of Interest and Terms for Personal, Business and Home Loan.

While investing in the company, one should look at the efficiency ratios, one such ratio is EBITDA Margin. Efficiency Ratios are an important parameter under fundamental analysis which helps to analyze numerical values present in a company’s financial statements. Efficiency ratios are used to analyze how well the company is using its assets to generate returns. It is used to measure the performance of the company, current and past. We will discuss the impact of EBITDA margin on financial valuation.

Some of the important ratios are as follows:-

EBITDA Margin (%)

EBITDA margin (%) is an important parameter to measure a company’s operating profitability, expressed in the terms of percentage of its total revenue. It is calculated as earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue. EBITDA margin helps an investor, business owner, or financial professional with an ease to perceive the company’s cash flow and operating profitability.

Importance of EBITDA Margin (%)

EBITDA Margin is used to compare companies of different market capitalisation and sectors because it breaks down operating profits in terms of percentage of revenue. A higher EBITDA margin is considered good as it signifies less operating expenses and higher company’s earnings. A rise in EBITDA margin also signifies better performance of the company.

EBITDA Margin Formula:

Formula: EBITDA Margin = EBITDA/Revenue

EBITDA Margin Example:

Suppose in 2016-17 the company sales is 50 crores and expenses excluding interest tax and depreciation or amortization is 45 crores then EBITDA is 5 crores

EBITDA margin % = 5/50= 10%.

Nowadays we don’t have to calculate EBITDA Margin (%) on our own. StockEdge gives us EBITDA Margin (%) of the last five years of any company listed in the stock exchange. We can look and compare EBITDA Margin (%) of any company and filter out stocks accordingly.

Suppose we want to look at the EBITDA Margin (%) of Suven Life Sciences Ltd. of last 5 years. In the Fundamental tab of Suven Life Sciences Ltd, click on the fundamentals tab, we will get the Ratios tab.  Then in the Ratios tab click on Efficiency Ratios, EBITDA Margin (%) will come of Suven Life Sciences Ltd.

Bottomline

EBITDA margin thus helps investors in making decisions in which company to invest by comparing the performance of the company with its peers. This data is easily available under the ratios section of each share for free. We also have scans based on EBITDA under the premium offering of stockedge app, with the help of these you can filter out companies generating increasing EBITDA in seconds. If you still do not have the StockEdge app, download it right now to use this feature.

What Is The Full Form Of CIBIL?

If you’ve ever wondered, the term “CIBIL” stands for Credit Information Bureau (India) Limited, the first credit information company in India, established in the year 2000. The company plays an important role in India’s money related framework.

What is a CIBIL score?

Simply put, your CIBIL score is a reflection of your credit worthiness; how reliable you are as a borrower. The better your score, the more willing lenders are to offer you a loan.

How Is Your CIBIL Score Generated?

Your CIBIL score is based on your borrowing history. Factors such as your limit utilisation rate, payment rate, length of payment history, whether your borrowing is secured, and the number of credit queries contribute to your score. Every time you take a loan, or seek a loan from a bank or NBFC, that information is passed to CIBIL and incorporated into you score. That score is then made available to all other lenders as a reference the next time you seek a loan.

How Does My CIBIL Score Affect My Chances Of Getting A Loan?

Your CIBIL score is generated in the range of 300 to 900. The closer you are to 900, the greater the confidence your loan lender/bank will have on your ability to repay the loan. Hence, the better are your chances of your loan application being approved. You’ll be willingly granted credit cards, given access to the choicest of interest and insurance rates, and will even be able to land your dream job (yes indeed, sometimes potential employers will ask to check your CIBIL scores!)   

If you have not borrowed before and thus have no credit history, your CIBIL score will show as -1.

Anything above 750 is considered to be a good CIBIL score. In most cases, if you have a score below 700, banks will be unwilling to offer you credit, particularly if the loan is unsecured. There will be some NBFCs that are more flexible, but the rates you’ll be charged will be much higher.

At NIRA, we require a minimum CIBIL score of 681 in order to approve your loans. We can also accept applications from borrowers with a -1 score.

8 Effective Ways To Improve Your CIBIL Score Quickly

By now you have a fairly clear idea that a bad CIBIL score can make things extremely difficult if you are in urgent need of money. For instance, in cases of debt repayment or medical emergencies where being approved for a loan is the only way out, the final judgement ultimately rests on how close to 900 your CIBIL score is.

But what you may still be a little foggier on is exactly how you can improve your CIBIL score. Here are some helpful tips!

1. Be Punctual.

Always try to be consistent and punctual with your loan and credit card payments. This will show you’re financially responsible and that you have a good, steady flow of finances - which means less risk for the person or the bank lending you the money!

2. Bring In Some Diversity.

Try and maintain a fair balance between secured and unsecured loans. Why? Because lenders like to see consumers with a history of on-time payments across different types of credit. This demonstrates responsible credit management and also helps the lender in question understand your credit risk.

3. Be Careful With Your Credit Cards.

While your loan repayments would shrink your principal loan amount over time, keep an equally vigilant eye on your credit cards. Limits are meant to be adhered to, especially if they’re related to financial matters. So don’t max out your credit card too often; it won’t help boost your credibility in any way!  

4. Be A Responsible Joint Account Holder.

If you are a joint holder of any bank accounts, you are equally responsible for late payments. If the joint holder of your account fails to make payments on time, it will show you in bad light as well and will end up decreasing your credit score. Lesson to be learned? Stay on top of your co-signed, joined and guaranteed accounts and constantly monitor payments to prevent your credit score from dropping.

5. Don’t Go Overboard With New Credit Application.

When you take loans of limited amounts, it shows the lender that you know your repayment capacity well and are hence, unlikely to make deferred payments. If, on the other hand, you apply for too much credit, it will only increase your debt amount and will, in turn, make it look like you’ve bitten off more than you can chew.

6. Take A Small Loan.

Approach the bank you hold a salary account with and ask them if you’re eligible for a loan of 50,000/- or less. This may seem counterintuitive, but small loans are easier to pay off on time and will quickly boost your credit score!

7. Get A Secured Credit Card.

In case the bank you hold a salary account with refuses to give you a small loan, don’t worry. There’s yet another trick you can use. Check with them to see if they can offer you a secured credit card against a fixed deposit. Then you can start using about 30-40% of the credit limit every month and proceed to clear your repayments over time. Carrying maxed-out credit cards might be bad, but having an open credit card account with little-to-zero balances will up your reliability score and display your confidence in handling the money that has been lent to you!

8. Check Your Report For Errors.

You can apply for a credit report any number of times in a year. Once you get your hands on your report, be sure to examine everything. Keep an eye out for accounts that reflect unpaid bills or late payments - because this is the information that will bring your score down. Your report is not infallible, so make sure to take the time to analyze if that information is inaccurate. If you do find errors, make sure you send your dispute in to the concerned authorities immediately.