Make in India – Key to Revival of Economy

make in india

Make in India campaign was launched by Prime Minister Sh. Narendra Modi on Sep 25, 2014. The key objective of Make in India campaign is to invite businesses not only in India but across the world to invest & manufacture in India. The purpose of Make in India campaign is (a) Job Creation (b) Economic Development (c) Global Recognition Indian economy is going through bad phase. In past, i wrote an article on Why India is heading towards Recession. Clouds of recession are still looming large. Current euphoria is because of election of Mr Modi and stable Govt in India. Sweeping economic reforms are need of hours to pull back economy from clutches of Recession. It is commendable that in such a short span, Modi Government has identified the reasons why economy is in bad shape. At the same time Govt has taken right steps to bring Indian economy back on track.  Make in India campaign is Right Step in Right Direction. Make in India is recognized globally and has featured in "100 … [Read more...]

Should i invest in Kisan Vikas Patra ?

Kisan Vikas Patra

Kisan Vikas Patra was initially launched in the year 1988. Kisan Vikas Patra was one of the most popular and successful small savings scheme in India till it was withdrawn in 2011. The reason for withdrawal was laundering of Black money through this small savings scheme. "Double your Money in 5 and a half year" was USP of Kisan Vikas Patra during 90's. The investment discussion between my parents revolved around only 3 saving schemes i.e. NSC (National Savings Certificate), PPF (Public Provident Fund) or Kisan Vikas Patra. To be honest, not many options were available during those days. When i was a kid, i used to think that only a Farmer can invest in Kisan Vikas Patra then how come my parents are investing in this instrument. Kisan Vikas Patra was re-launched recently and i was feeling quite nostalgic. In its new avatar, Kisan Vikas Patra will double the money in 100 months i.e. 8 year and 4 months which means effective Rate of Interest is 8.7%. The key objectives of Govt to … [Read more...]

How to calculate Income from House Property

Income from House Property

Income from House Property is clubbed with the total income while filing Income Tax Return. One of the most common query i received is on how to calculate income from House Property. Income from House Property arises when you have a property which is Let out Property i.e. you receive Rental Income from such property. Though this head is titled as Income from House Property but it is not necessary that you only gain income from House property. In case of Home Loan, Income from House Property can be negative i.e. you may incur Loss from Let out property when Home Loan Interest outflow outweigh the Rental Income. In another scenario, in case of Self occupied property for sure you will incur Loss from Self occupied property as Gross Annual Value of Self occupied property is Zero subject to max limit under income tax act. Any loss from self occupied property is also reported under Income from house property. We will discus loss from self occupied property towards the end of this post. Lets … [Read more...]

Pay High Interest for Higher Loan to Value Ratio

Loan to Value Ratio

Indian Home Loan Market is gradually maturing. Sometime back a very imp news which went unnoticed was regarding setting up of India Mortgage Guarantee Company (IMGC). India Mortgage Guarantee Company is promoted by IMF, AIG and NHB (National Housing Bank) which in turn is wholly owned subsidiary of Reserve Bank of India (RBI). All HFC's (Housing Finance Companies) have to register with NHB before starting Housing Finance Business. Now you must be wondering why i am sharing this background and as a borrower how will i benefit from setting up of India Mortgage Guarantee Company. Lets check it out At the time of availing Home Loan, every borrower come across a term Loan to Value Ratio. Loan to Value Ratio or LTV is ratio of the Home Loan amount you wish to borrow to the actual value of the Home/Property. For example, one of my reader Ms. Shalini Arora is planning to buy a property worth 50 lakhs in Jaipur and she wish to avail Home Loan of 45 lakhs then her Loan to Value Ratio is 90%. … [Read more...]

Affordable Housing – A Myth or Reality

Affordable Housing

Affordable Housing is new buzz word in Real Estate market. Currently Real Estate sector is going through difficult times as the economy is still in bad shape and interest rates are high. Job loss is still a reality and it will take atleast 2-3 years to bring the economy back on track. Real Estate inventory has piled upto alarming levels in major cities. Currently banks lend at 14%-16% to builders which further increase the cost of  property. In order to boost demand recently RBI revised the definition of Affordable Housing to benefit borrowers. Affordable housing is clubbed with infrastructure lending and is covered under priority sector lending. As per RBI, definition of Affordable Housing is Housing Loans eligible under Priority Sector Lending. RBI eased norms for banks to raise long term funds to finance Affordable Housing projects. In short, any fund raised for Affordable Housing is exempted from regulatory compliance like CRR or SLR therefore it may reduce cost of funds by upto 2% … [Read more...]

Why you should not apply Online Home Loan

Online Home Loan

Online Home Loan is very fast catching the fancy of many. The key reasons for increase in uptake of Online Home Loan service is convenience and intelligent online marketing. Remember that Convenience comes at a Cost, lets check how. In the month of July'14, i log in to internet banking of ICICI Bank. Welcome screen of internet banking offered me Pre Qualified Home Loan of 90 Lakhs. I decided to give it a try to check Online Home Loan service/process. Here i would like to add that Online Home Loan application software of most the banks is managed & powered by Bank Bazaar which is basically an online marketplace. In short, Bank Bazaar provide lead management tool for online Home Loan application. Preliminary screening of all online home loan applications is carried out by Bank Bazaar and shortlisted applications are forwarded to respective bank. Even online credit card application interface & preliminary screening is managed by Bank Bazaar on behalf of banks. My experience of … [Read more...]

Best Term Insurance Plans

Term Insurance Plans

One of the most common query from my readers is regarding Best Term Insurance Plans in India. In past i wrote an article on 5 Points to consider while buying Insurance Policy. In continuation of this post, recently i bought online term insurance plans for myself and thought of sharing my list of best term insurance plans based on my research, analysis & study. I will try to keep this post very simple and easy to understand. Before you buy term insurance plans it is important to do basic groundwork. I adopted theory of exclusion rather theory of inclusion for selection. I feel that theory of exclusion is more critical and analytical for selection. Its like evaluation of shortlisted plans on critical parameters in order of priority  and reject the plans which does not fulfill the criterion or score low on critical parameters. This method is more scientific and widely accepted. I considered following criterion's for shortlisting to select the best term insurance plans in same order of … [Read more...]

Beware of Dynamic Pricing of E-Commerce


Indian E-commerce industry is still in an evolving phase. One of the major E-commerce player Flipkart launched "The Big Billion Day" on Oct 06, 2014 similar to Big Friday sale in USA. Later flipkart apologized for shortcomings of the offer as there was backlash from online community. In my opinion, The Big Billion Day backfired because of fusion of Dynamic Pricing and Special Event Pricing by Flipkart. We will discuss both pricing models later in the article. Indian buyers love simple and straight forward pricing structure. Any confusion on pricing will backfire. Customer would not like to get cheated through hidden Terms and Conditions / agenda of E-Commerce player. E-commerce players should try to win confidence and trust of a customer through transparency. The offers/deals/discounts and respective communication should be easy to understand and without any ifs and buts. A customer is not comfortable with idea of paying different price for same product under same offer. Any strategic … [Read more...]

5 Financial Benefits of Swachh Bharat Mission

Swachh Bharat

On 2nd Oct, 2014 Prime Minister of India Sh. Narendra Modi Ji launched Swachh Bharat Mission. Swachh Bharat is a noble mission and Prime Minister has appealed fellow Indians to devote atleast 100 hours every year towards the cause of cleanliness.  Swachh Bharat Mission is time bound project to be completed before 2nd Oct, 2019 i.e. by 150th Birth Anniversary of Father of Nation Mahatma Gandhi. As a layman, i only foresee cleanliness or clean india as sole objective behind Swachh Bharat Mission but on deeper analysis, you will observe financial benefits behind Swachh Bharat Mission. As a common citizen of India, i can conclude that if Swachh Bharat Mission is successful then it will be financially beneficial for all the citizens of India. Lets check 5 Financial Benefits attached to Swachh Bharat Mission Tourism and Swachh Bharat India is a land of cultural heritage and rich history. Tourism generate approx 6.6% of India's GDP and 39.5 Million Indians are directly employed in this … [Read more...]

7 FREE or Cheapest inbuilt Insurance Covers

Insurance Cover

There is a famous saying that Ignorance is Bliss but not always. Insurance Cover is very critical be it Health, Life or a Property. As i keep highlighting that in India, Insurance cover is more of investment tool rather protection cover. Whenever i suggest insurance cover to any of my clients then 1st question is what is the return on same. In my opinion, inbuilt insurance covers are more appropriate for indian psychology. What if insurance cover is inbuilt along with product or a service. Inbuilt insurance cover can be Free or very cheap as such policies are group insurance policies or public liability insurance policy. Let's check, 7 Free or cheapest insurance covers which are inbuilt. Pradhan Mantri Jan Dhan Yojana On 15th Aug, 2014 our Honourable Prime Minister Sh. Narendra Modi Ji launched Pradhan Mantri Jan Dhan Yojana. Under this scheme, an accidental insurance cover of Rs 1,00,000 and life insurance cover of Rs 30,000 is provided FREE of Cost along with Zero Balance bank … [Read more...]