We can’t jeopardise the continuing future of one business to save lots of the other. Similar is the entire case with the bank operating system that runs on a few moral principles. If a person commits fraud by submitting spurious documents, declaration or statement of his/her account, he/she should be treated as an economic offender.
By committing scams, one not only cheats the bank but also places people’s hard-earned deposits at risk. Millions of poor, pensioners, widows and workers of the unorganised sector keep their hard-earned profit banks with objectives that they might earn interest and would get their cash back every time they need them. Banking business actually thrives on people’s low-cost current and savings account deposits. It is another matter that the Reserve Bank or investment company of India (RBI) maintains reserves to protect the banking institutions from turmoil, which safeguards people’s debris.
Given that the Indian banking sector is fast integrating itself into an unstable global financial system, reserve money work like pillow. Over the full years, a large number of scamsters has taken undue benefit of banking loopholes to run away with huge credits. Professional CEOs, equipped with updated management information system, effective table of directors, sound HR plan, state-of-the-art internal and concurrent audit system, dedicated asset guidance mechanism and a detailed information framework can prevent frauds and reduce NPAs. Equally, banking institutions must pay more focus on fraud prevention procedures than post-fraud correctives. A fresh mechanism must be adopted to guage the reporting, communication skill and decision-making capacity of the employees.
There is also an immediate need to stop the practice of giving incentives to the CEOs in order to achieve desired goals. Many PSB chiefs are known to put pressure on the entire staff. This results in oversight, leading to frauds. All kinds of post-retirement project should be halted for the good health of the banking sector.
The fact is that anyone person who owns a piece of real estate has already been in ownership of the most crucial ingredient in the cash flow formula. Now they just need a little education. Based on the 2005 census almost 33% of homes in america were owned free and clear, meaning that they longer have a mortgage that encumbers the house no.
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These homeowners certainly have achieved a certainly level of financial maturity. But how are these great investments benefiting these owners? Think about this hypothetical example. 0 come back annually on this investment. Now think about this cost/benefit analysis for John’s situation. 700/mo mortgage payment) because he has no mortgage repayment. 8,400 cost savings that he has by owning his property free and clear. Here is how this scenario pertains to seller financing.
Let’s say that John must proceed to another city and he could be forced to sell his home. John understands the energy of seller financing and he chooses to markets his home to a buyer using “free and clear seller financing”. Because John offers vendor financing the guy can sell his home quickly and for slightly more than average market value.
200,000. He could be able to buy the house with 5% down payment and can borrow the balance of the price at a 6% interest. 300/month (the difference between his investment payment and his current mortgage repayment). 200,000 however the principle value of his new home will amortize and eventually go away giving John additional value (another asset of significant value). Now his original house is paying for his new house with additional cash flows actually.
What happens if John doesn’t want to move? Because John is savvy he understands that he can do that same process without leaving his home. 200,000 to invest in another house. 200,000 principle balance and 8% interest only payments. 300/month cash flow and the regular monthly income is paying down the refinanced mortgage now.