Impact of Base Rate Cut on Home Loans is the hot topic these days. RBI surprised twice by out of cycle Repo Rate cuts of 25 basis points each or 0.25%, Banks were reluctant to cut Base Rate. Despite the public displeasure of both RBI and the Govt, Banks stood firm on their stand. As i highlighted in my post that RBI is King without Kingdom, a very little can be done by RBI in this regard. Rather i will say, its a cartelization similar to that of Telecom and Airline Companies. Only 2 banks i.e. Union Bank of India and United Bank of India cut the base rate to benefit customers. As these banks ... Read More
The Rule of 72 – Avoid Being Cheated
"The Rule of 72" is the most powerful rule for "Quick Calculations on Investment and Inflation" in your mind. Personal Finance space is quite confusing for the common man. This is the main reason why mis-selling is rampant in the personal finance space. Besides, mis-selling there is a widespread misinformation to score brownie points for personal gains. Most recent example is on "Returns from Sukanya Samriddhi Account". Some financial planners are misleading the common man by throwing some arbitrary no's on returns from Sukanya Samriddhi Account. These calculations are based on certain ... Read More
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 ... Read More
Delay Property Registration to Save Tax
Do you know if you Delay Property Registration then you can also Save Tax :). At first instance it sounds very confusing and contradictory but it is true. Recently one of my client Ms. Rashmi was planning to register resale property in Ahmedabad. I asked her whether she can wait till April'15 for property registration and she told me that it is feasible. I suggested her to Delay Property Registration till April'15 and she can save tax by doing so. Any property registration during last quarter of Financial Year i.e. from Jan to Mar should be done after due diligence. Reason being we are towards ... Read More
Should i opt for Fixed Interest Home Loan ?
Recently ICICI Bank launched Fixed Interest Home Loan at 10.25% for 10 years. It created buzz and i received multiple queries from my readers whether to opt for Fixed Interest Home Loan at 10.25% for 10 years or not. Sometime back i wrote a post on Truly Fixed Interest Rate Home Loans . Fixed Interest Home Loans cater to specific set of Borrowers who are basically risk averse. Fixed Interest Home Loan product is more suitable during uncertain economic conditions. Broadly speaking interest rate movement is basically a 10 year cycle in which interest rates move from bottom (Trough) to High ... Read More
Floating vs Fixed Interest Rate Home Loan
At the time of availing Home Loan, the biggest dilemma is to select Floating vs Fixed Interest Rate. Any wrong decision can put big hole in your pocket. Normally, risk averse customers opt for Fixed Interest Rate. If you decide to switch loan from Floating to Fixed during loan tenure then you might need to shell out charges upto 1% of outstanding loan amount. Let's find out pros and cons of both to solve this riddle of Floating vs Fixed Interest Rate Home Loan Floating Interest Rate Home Loan Between Floating vs Fixed Interest Rate, In Floating Home Loan interest rate is linked to Base ... Read More