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Cancel Credit Card

How to Cancel Credit Card?

In Banking Sector, there is no standard process defined to Cancel Credit Card. As a result, most of the times credit card user end up with low CIBIL score due to unintentional payment default. I also suffered in past, thankfully i noticed before it impacted my CIBIL Score. Credit Card is both a blessing and a curse depending on how you use it. Some people have habit to experiment with credit cards. Trust me, it is most dangerous game. They apply for new credit card when they receive new offers and cancel credit cards which are not in use. This habit can cost you heavily if process to cancel credit card is not followed properly. Daily i receive multiple cases wherein my clients suffered after few years because process to cancel credit card was not followed properly. Banks demand huge amount as credit card dues along with penalty and fine. Though customer claim that they placed cancellation request but in the absence of any written proof, legal stand of customer is on weak front. In this … [Read More...]


Dividend in Non Equity Funds – A Wealth Killer

Dividend Payout is one of the most popular option and USP for Mutual Funds. It may be good for equity mutual funds but for non-equity mutual funds, its a wealth killer. Infact Dividend option is "Silent" Wealth Killer as it kills your wealth without your knowledge. As i explained in my post Capital Gain Tax - Short Term Capital Gain that a mutual fund is classified as Equity Mutual Fund only if 65% of its AUM is invested in equity market. Any fund which does not fulfill this condition is non-equity mutual fund. Non-Equity Mutual Funds broadly include Debt Funds, Monthly Income Plan, Balanced Funds with less than 65% equity exposure etc. In this post, we will discuss how Dividend option of such Non-Equity Funds kills your wealth. Recently one of my client Mr. Shankar invested in debt mutual funds. Being a retired senior citizen, his critical concern was regular source of income and risk free investment. Based on suggestion from his investment advisor, he opted for Dividend option in … [Read More...]

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Save Tax

Pay Rent to Your Parents and Save Tax

Not many people are aware that if they are staying in their parents house then they can pay rent to their parents and save tax. I briefly covered this point in my post Tax Benefits on HRA - House Rent Allowance. Its a comprehensive topic as it involve lot of ifs and buts. As it help to save tax, it doesn't mean we can blindly follow this rule related to HRA. It require financial impact study i.e. whether paying rent to parents will actually help to save tax or not on net basis. Sometimes due to ignorance of finance team of employer, HRA exemption is rejected specially in case rent is paid to parents. Employee gets frustrated as it increases tax outflow towards the end of FY. In my opinion, the two major concerns of any salaried employee is … [Read More...]

Composite Loan

Composite Loan – Two in One Home Loan

Composite Loan is a mix of Land Loan and Construction Loan. It is not very popular jargon in Indian Mortgage Industry. One of the reason is scarcity of land in big cities i.e. buyer prefer flats in big cities. The concept of independent house or villas is more relevant in small cities due to availability of land. As i promised in my last post that next post will be dedicated to composite loan. Yesterday i visited one of the leading PSU Home Loan provider to get some clarity on Composite Loan. Whole branch took 45 mins to understand what is Composite Loan. Loan Manager of the branch called Regional Manager (Home Loan) to understand this alien term Composite Loan. In this regard, staff of leading Housing Finance Company was well aware. The … [Read More...]

Land Loan

7 Facts You Should Know About Land Loan

Land Loan or Plot Loan (used interchangeably) is one of the most confusing subject for borrowers in Loan / Mortgage segment. Confusion is normally between Home Loan, Land Loan and Composite Loan. All three are different products with different features, benefits, Terms and Conditions. Unfortunately all three i.e. Home Loan, Land Loan and Composite Loan are loosely referred as Home Loan only. At macro level, Land Loan is sanctioned only for purchase of residential plot or piece of land. Composite Loan is Land Loan + Construction Loan i.e. to complete construction on plot. In most of the cases, my clients are not aware whether they have availed Land Loan or Composite Loan. A land loan can be availed only to purchase a Non-Agricultural plot or … [Read More...]

Direct Plan

Avoid Direct Plan of Mutual Fund

Direct Plan of Mutual Fund is creating lot of buzz in Personal Finance space. In last one month or so, i have gone through atleast dozen posts on Direct Plan of Mutual Funds. The advantage of Media coverage is that it create buzz. Investors are seriously considering Direct Plan of Mutual funds which currently contribute less than 10% of total investments (Industry Estimate). Currently this channel is utilized by Institutional investors or HNI's and that too in debt category. Contrary to the fact that expense ratio of debt category is very low compared to equity. In my post on 7 Steps to Select Right Mutual Fund,  i mentioned Expense Ratio as one of the key criterion to select Mutual Fund. The advantage of Direct Plan is low Expense Ratio … [Read More...]

financial mistake

7 Financial Mistakes You Should AVOID

Everyone is bound to make financial mistakes because of complex personal finance world. Even i also learnt from my financial mistakes after paying price for the same. Financial wisdom says that "Listen to your mind". Most importantly "Heart should not overtake mind while making financial decisions". In my opinion, the biggest problem in our country which in turn is sole reason for committing financial mistakes is "FREE ADVICE". Its a fact that anyone giving FREE FINANCIAL ADVICE will have vested interest in mind. Be it insurance, stock or financial investment. Assuming i ask a bank employee which insurance product is suitable for me. Now i can't expect genuine advice from his end as he will push the insurance product which help him to meet … [Read More...]

joint property

7 Important Points about Joint Property

The concept of "Joint Property Purchase" is being popularized by Home Loan Providers and the Govt. The objective to promote Joint Property Ownership is different for both Govt and the Home Loan Providers. State Govt's are providing incentives in stamp duty and registration charges to empower women through Joint Ownership. In many cases, i observed that Husband is willing to include Wife as a Joint Owner only to save stamp duty. Whereas from Home Loan provider perspective, they have selfish motive to safeguard their business interest which is not wrong also. Home Loan provider first push for Joint Purchase and sell this concept by highlighting advantages. The biggest USP is increased Home Loan eligibility & Home Loan tax dedcution. Many … [Read More...]


5 Questions a Buyer Must Ask a Seller

As we know that while buying a property entire risk rests with the buyer. It is imperative for buyer to ask a seller few imp points. In this post we will discuss 5 such questions which a Buyer Must Ask a Seller before buying a property. In India, most of the property deals are closed through Real Estate Agents or Brokers. Normally Brokers don't allow buyer and a seller to discuss the nitty gritty of the deal. All the communication is through Real Estate Agent which might create confusion at later stage. I have observed that Real Estate Agents usually favor the seller therefore the interests of a buyer are not safeguarded in this entire process. Focus is mainly on Property Negotiations which i highlighted in my post Property Negotiations - … [Read More...]


Employee Layoff – The Real Story

Recently Social Media was abuzz with Employee Layoff by one of the IT major. Layoff is not something new in IT industry but this time the scale of Layoffs rattled the IT employees. In new age economy, Job security is on back burner and Layoffs are reality. Even employees are also mentally ready for such kind of events. The biggest proof is new kind of insurance features which secure EMI of loan against Job Layoff. After a month's silence on this subject, IT major issued statement that their "Involuntary Attrition" or Layoff is as per past trends. There is no significant change in the "Involuntary Attrition". In short, there are No Large scale forced exits or Layoffs.  After this statement, the topic of layoff went off air. The people who … [Read More...]