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What is a Home Loan and How Does it Work (Bad Credit)?

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For many people, buying their dream home is a significant milestone. However, the high cost of owning a house can make it difficult for some to fulfill this dream. This is where a home loan comes in. A home loan is a financial product that is specifically designed to help individuals purchase a house. In this article, we will discuss what a home loan is and how it works.

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What is a Home Loan?

A home loan, also known as a mortgage, is a type of loan that is offered by financial institutions such as banks and housing finance companies. It allows individuals to borrow money to purchase a house or a residential property. The borrower has to repay the loan amount along with interest in regular installments over a specific period of time.

How Does a Home Loan Work?

A home loan works in the following way:

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  1. Loan Application: The first step in the home loan process is to apply for a loan. The borrower has to submit an application form along with the necessary documents such as income proof, identity proof, address proof, etc.
  2. Loan Approval: The lender will evaluate the application and determine the loan amount that the borrower is eligible for. If the borrower meets the eligibility criteria, the loan is approved.
  3. Disbursement: Once the loan is approved, the lender will disburse the loan amount to the borrower. The amount can be used to purchase the house or residential property.
  4. Repayment: The borrower has to repay the loan amount along with interest in regular installments over a specific period of time. The installments are called Equated Monthly Installments (EMIs).

Types of Home Loans

There are various types of home loans available in the market. Some of the popular ones are:

  • Fixed-rate Home Loans: In this type of loan, the interest rate remains fixed throughout the loan tenure.
  • Adjustable-rate Home Loans: In this type of loan, the interest rate is linked to a benchmark rate such as the repo rate or the base rate. The interest rate may fluctuate as per the benchmark rate.
  • Home Construction Loans: This type of loan is availed by individuals who want to construct a house on a piece of land they own. The loan amount is disbursed in stages as the construction progresses.
  • Home Improvement Loans: This type of loan is availed by individuals who want to renovate or repair their existing house.

Benefits of Home Loans

Home loans offer various benefits to borrowers such as:

  • Easy Access to Funds: Home loans provide easy access to funds that can be used to purchase a house or residential property.
  • Tax Benefits: Borrowers can avail tax benefits on the interest paid on the home loan under Section 24 and Section 80C of the Income Tax Act.
  • Flexible Repayment Options: Home loans offer flexible repayment options such as longer loan tenures, prepayment options, and partial prepayment options.
  • Low-interest Rates: Home loans usually have lower interest rates as compared to other types of loans such as personal loans or credit card loans.

What is bad credit in Home Loan?

Bad credit refers to a poor credit score or history that reflects a borrower’s inability to repay debts or loans on time. It can happen due to various reasons such as missed or late payments, default on loans, bankruptcy, or high credit utilization.

Having bad credit can make it difficult for an individual to get a loan, as lenders consider it a high-risk proposition. However, there are still options available for individuals with bad credit to apply for a loan.

One option is to approach subprime lenders or alternative financing companies that specialize in providing loans to borrowers with bad credit. These lenders typically charge a higher interest rate and may require additional collateral or a co-signer to mitigate the risk.

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How to Apply Home Loan for low CIBIL score?

Another option is to improve the credit score by making timely payments, reducing credit utilization, and correcting any errors in the credit report. This may take some time, but it can help in getting better loan terms and interest rates in the future.

It is also essential to research and compare different lenders to find the best loan option available for individuals with bad credit. Some lenders may offer loans with more favorable terms or lower interest rates, even to borrowers with bad credit.

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FAQs

1. What is the maximum amount of home loan that one can avail?

The maximum amount of loan depends on various factors such as the borrower’s income, credit score, loan repayment capacity, and the market value of the property. Generally, the maximum loan amount is 80% to 90% of the property’s market value. However, some lenders may offer up to 100% of the property’s value as a loan.

2. Can one avail a home loan for purchasing a commercial property?

No, home loans are specifically designed for purchasing residential properties. For purchasing commercial properties, one can opt for a commercial property loan.

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3. What is the minimum and maximum loan tenure for a home loan?

The minimum and maximum loan tenure for a home loan vary from lender to lender. Generally, the minimum loan tenure is 5 years, and the maximum tenure can be up to 30 years.

4. Can one prepay the home loan?

Yes, borrowers can prepay the home loan partially or fully. However, some lenders may charge a prepayment penalty if the borrower chooses to prepay the loan before the end of the loan tenure.

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5. How is the interest rate on a home loan determined?

The interest rate on a home loan is determined based on various factors such as the borrower’s credit score, income, loan amount, loan tenure, and the prevailing market conditions. Generally, borrowers with a higher credit score and stable income are offered lower interest rates.

Conclusion

A home loan is an excellent financial product that enables individuals to purchase their dream home. Before availing of a home loan, it is essential to understand the terms and conditions, the interest rate, and the loan tenure. One should also compare various lenders to find the best home loan deal. With the right home loan, owning a house can become a reality.

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Australia’s Coles misses profit estimates on higher costs, low tobacco sales

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Coles Lags Behind: High Costs and Slipping Tobacco Sales Hit Profits

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What’s Happening?

Coles Group, Australia’s leading supermarket chain, reported its annual profit fell short of projections. The disappointing results were attributed to rising operational costs and a decline in tobacco sales, impacting its high-performing Supermarkets division. As the new business year gets underway, the company anticipates continued challenges.

Where Is It Happening?

The financial results impact Coles’ operations across Australia, with implications for customers nationwide.

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When Did It Take Place?

The disappointing financial performance was announced on August 26, summarizing the fiscal year just concluded.

How Is It Unfolding?

– Rising operational costs have squeezed profit margins across the board.
– Tobacco sales, a traditionally strong revenue driver, have seen a notable decline.
– The Supermarkets division, usually a financial leader, now faces slower growth.
– Shoppers are adapting to protective measures, like plexiglass dividers at checkouts.

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Quick Breakdown

– Coles Group’s profit fell below market expectations.
– Higher costs and weaker tobacco sales contributed to the drop.
– TheSupermarkets division is growing at a slower-than-expected rate.
– The company expects ongoing challenges in the new fiscal year.

Key Takeaways

Coles Group is feeling the pinch from rising expenses and shifting consumer habits, particularly in tobacco sales. The retail giant’s Supermarkets division, typically a steady performer, is now facing hurdles that could impact its future growth. As costs continue to climb and traditional revenue streams diminish, Coles may need to explore new strategies to keep up with changing market demands.

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It’s like trying to balance a budget while your biggest income source dries up—quick adjustments are needed to avoid falling behind.

It’s a wake-up call for the industry. Retailers must innovate or risk falling behind in a rapidly changing market.
– John Davis, Retail Analytics Expert

Final Thought

Coles Group’s struggle to meet profit expectations highlights the broader challenges at play in retail today. Higher costs and shifting consumer habits force companies to adapt quickly. As tobacco sales decline, Coles must find new ways to drive revenue and maintain profitability. The road ahead may be tough, but strategic shifts could help the supermarket giant bounce back.

Source & Credit: https://www.reuters.com/world/asia-pacific/australias-coles-misses-profit-estimates-higher-costs-low-tobacco-sales-2025-08-25/

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Warming Seas Worsen Japan’s Price Shock With $120 Urchin Rice Bowls

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Sea Urchin Shortage Hits Japan as Warming Oceans Drive Up Prices

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What’s Happening?

Japan is grappling with a severe sea urchin shortage as soaring ocean temperatures devastate their populations. This has led to a staggering price surge, making the luxury delicacy prohibitively expensive for many. The crisis is particularly acute in northern regions, where sea urchins have been a staple for generations.

Where Is It Happening?

The crisis is centered in regions like Rishiri, located in northern Japan, known for its thriving sea urchin fisheries. The impact is rippling across the country, affecting both local economies and consumers nationwide.

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When Did It Take Place?

The shortage became apparent this summer, coinciding with Japan’s hottest recorded temperatures. The decline in sea urchin catches has been steadily worsening over the past few years due to climate change.

How Is It Unfolding?

– **Temperature Surge:** Ocean warming has disrupted sea urchin habitats, reducing their numbers.
– **Price Hike:** Prices have skyrocketed, with some servings reaching $120 in restaurants.
– **Economic Strain:** Fishermen are struggling as catches dwindle, impacting livelihoods.
– **Consumer Impact:** Many traditional dishes, like urchin rice bowls, are now luxury items rather than everyday meals.

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Quick Breakdown

– Sea urchin populations are plummeting due to warmer ocean temperatures.
– Prices for the delicacy have surged, with some bowls now costing $120.
– Fisheries in northern Japan are hit hardest, causing economic strain.
– The crisis highlights the broader impact of climate change on marine life.

Key Takeaways

This sea urchin shortage is a stark reminder of how climate change is altering our food systems. As oceans warm, species like sea urchins are struggling to survive, leading to economic and cultural consequences. For many in Japan, these spiny delicacies are more than just food—they’re a piece of heritage. But as the crisis deepens, accessing them is becoming increasingly difficult, pushing the dish from comfort food to luxury.

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Imagine paying $120 for a bowl of rice—something that used to be as common as a bowl of ramen. It’s like finding out the price of avocados has skyrocketed overnight, turning chipotle bowls into a rare treat.

“Climate change threatens more than just the environment. It’s reshaping economies and culture. When traditional foods become luxuries, it’s a wake-up call for sustainable change.”
– Dr. Masao Tanaka, Marine Ecologist

Final Thought

**Japan’s sea urchin shortage is a wake-up call. The crisis reveals how climate change disrupts food sources and livelihoods, pushing once-affordable delicacies out of reach. For fishermen, consumers, and cultural enthusiasts alike, this event underscores the urgent need for action to protect marine ecosystems. If ocean temperatures continue rising, more seafood staples could follow the same path—turning beloved dishes into expensive rare treats.**

Source & Credit: https://www.usnews.com/news/world/articles/2025-08-25/warming-seas-worsen-japans-price-shock-with-120-urchin-rice-bowls

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In Protein-Deficient India, McDonald’s, Bollywood and Cricket Fuel Wellness Craze

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India’s Protein Deficit: How Burgers, Bollywood and Cricket Are Changing Diets

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What’s Happening?

In a country where protein deficiency is a pressing health concern, McDonald’s is turning the tide with an unlikely hero: a 30-cent vegetarian protein slice. This innovative burger topping is flying off the shelves in South India, sparking a wellness craze that extends beyond fast food to Bollywood fitness trends and cricket-inspired protein supplements.

Where Is It Happening?

South India, with a focus on urban centers like Mumbai and Chennai.

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When Did It Take Place?

Ongoing trend observed and reported in May 2024.

How Is It Unfolding?

  • McDonald’s introduces a high-protein vegetarian slice, mixing eating out with health benefits.
  • Celebrities and Bollywood stars promote fitness regimes and protein-rich diets.
  • Cricket players and sports influencers endorse protein supplements, normalizing it for fans.
  • Healthcare providers and nutritionists advocate balanced protein intake to combat deficiency.
  • Local food companies launch affordable protein-rich snacks targeting middle-class consumers.

Quick Breakdown

  • McDonald’s protein slice costs just 30 cents, making health more accessible.
  • Low-cost protein options are bridging the gap for South India’s protein-deprived population.
  • Bollywood fitness trends are influencing millions to adopt healthier lifestyles.
  • Cricket’s star power amplifies awareness about protein supplements among youth.

Key Takeaways

India’s struggle with protein deficiency is being addressed through a unique blend of affordable fast food, celebrity-driven fitness trends, and sports culture. McDonald’s innovative protein slice, though small, symbolizes a major shift in how everyday convenience food can meet nutritional needs. Meanwhile, Bollywood and cricket are turning health consciousness into a lifestyle movement, proving that wellness can be as viral as a blockbuster film or a championship win. This cultural shift isn’t just about fad diets—it’s a grassroots effort to improve public health.

Imagine turning a burger into a health boon—or a cricket match into a protein pitch meeting. In India, that’s not just a fantasy; it’s a revolution in progress.

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Subtly incorporating health into fast food was never about a dietary overhaul but about making small habit changes that lead to big health wins.

– Neha Sharma, Nutrition Scientist

Final Thought

From McDonald’s counters to Bollywood screens, India’s wellness movement is rewriting the rules. Affordable, accessible, and influencer-backed solutions are closing the protein gap one burger, one fitness reel, and one cricket match at a time. The cultural shift proving that good nutrition isn’t a luxury but a national lifestyle makeover in the making.

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Source & Credit: https://www.usnews.com/news/top-news/articles/2025-08-25/in-protein-deficient-india-mcdonalds-bollywood-and-cricket-fuel-wellness-craze

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