Buying a home is not an easy task. Most people have to avail of a bank loan to fund part of their purchase as banks – as a rule – do not sanction loans over 70% of the loan amount. Hence, one needs to save enough to down pay a part of the total proceeds.
QUOTE OF THE WEEK:
“If the US can regulate and cover by deposit insurance more than 7,000 banks, India can surely manage at least a few hundreds.” — Nirmal Jain, Chairman, India Infoline Group
YOUR FINANCE DEMYSTIFIED:
Missed your home loan EMI: How to get back on track?
Buying a home is not an easy task. Most people have to avail of a bank loan to fund part of their purchase as banks – as a rule – do not sanction loans over 70% of the loan amount. Hence, one needs to save enough to down pay a part of the total proceeds.
A home loan is often the only financially viable method for a person to fund major purchases like a house. It also offers significant tax benefits to borrowers. For many buyers, home loan equated monthly instalments (EMIs) constitute a significant portion of regular outgoings. So, what happens if you find yourself in a position where you can’t meet your EMIs on a regular basis? This may be on account of a family emergency or a loss of job, among others… Read more
Understanding various loan terms
Are young consumers the target of payday loans?
Payday loans are short-term cash loans or advance loans. The average loan term is about two weeks. These loans are given to the borrower on the basis of his personal cheque held for future deposit or on electronic access to his bank account. Borrowers write a personal cheque for the amount borrowed and the finance charge and receive cash in return. In some cases, borrowers sign to get electronic access to their bank accounts to receive and repay payday loans.
Lenders hold the cheque until the next payday when loans and the finance charges must be repaid in lump sum. To repay a loan, borrowers can redeem the cheque by paying the loan with cash, allow the cheque to be deposited in the bank, or just pay the finance charge to roll the loan over for another pay period… Read more
Auto loans: Understand the total cost
The Indian market, in present times, is filled with banks and other financial institutions offering auto loans, making cars much more accessible to the common man. Auto loans can be availed for all types of vehicles, whether they are new or used ones. It is, therefore, helpful if a buyer understands the total costs involved while buying a car with a loan.
An auto loan payment consists of three parts; the principal, interest and term. The principal is the price of the car being purchased. The interest is the percentage of the loan a borrower pays to the financing agency. The term of a loan is the amount of time that the borrower agrees to pay back the loan… Read more
DID YOU KNOW?
What is advance tax & who is liable to pay?
As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. Also called ‘pay-as-you-earn’ scheme, advance tax is the income tax payable if your tax liability is more than Rs. 10,000 in a financial year. It should be paid in the year in which the income is received… Read more
TERM OF THE WEEK
First year premiums
Regular premiums received during the year for all modes of payments chosen by the customer which are still in the first year. For instance: For a monthly mode policy sold in March 2012, the first installment would fall into first year premiums for 2011-12 and the remaining 11 installments in the first year would be first year premiums in 2012-13.
IN THE NEWS THIS WEEK
General insurers, reinsurer to set up TPA by Sept
Life insurers’ new business premiums fall 6.3% in FY13
IRDA probes money laundering allegations against insurers
Cobrapost: 23 Banks, insurance firms in money laundering
MFs report net inflows of Rs. 765 billion in FY13: SEBI
MF folios decline 4.5% to 2 million in six months: AMFI
MFs offload equities worth Rs. 16.14 billion in March
FIIs invest Rs. 91 billion in equity in March
ABOUT FLAME
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.
Aug 12, 2022
Aug 12, 2022
Aug 12, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
Aug 11, 2022
The laws of the financial world are different from the physical world. You can have prolonged periods of time, when sanity takes a back seat and excesses happen.
R. Venkataraman Aug 20, 2021
Retail trading or day trading has exploded because of falling brokerage rates, democratization of information, higher transparency and mobile platforms.
R. Venkataraman Jun 15, 2021
My simple message for dear readers is, if you don’t have any desperate need for funds, then don’t do anything.
R. Venkataraman May 12, 2021
The blow up of a US hedge fund has resulted in WhatsApp university offering many courses on what went wrong with Bill Hwang and Archegos.
R. Venkataraman Apr 09, 2021
The expensive valuations have been sustained by strong rebound in corporate earnings which led to ~8% upgrade in FY22 Nifty EPS since October 2020.
R. Venkataraman Mar 26, 2021
We believe the interest rates are likely to have bottomed due to inflationary pressure, large government borrowings and normalizing credit growth. Hence rate sensitive sectors should be avoided in our view.
R. Venkataraman Feb 17, 2021
As markets make new highs, one gets more emails and messages, which highlight the accomplishments of traders who have found a formula for making money.
R. Venkataraman Jan 27, 2021
Data does not seem to convincingly prove that short periods of high returns are always followed by meagre returns. Only in 4 instances, we had negative returns in the subsequent year.
R. Venkataraman Jan 01, 2021
Since September end, Bankex is up 16% with large banks like ICICI Bank, Bandhan up 20-27%, Housing Finance Companies like Repco, LICHF, PNB Housing are up 50%-100% from their six-month lows.
R. Venkataraman Oct 13, 2020
Morgan Housel’s 'The Psychology of Money' explains in detail the role of human biases in investment decisions.
R. Venkataraman Sep 26, 2020
Per Order for ETF & Mutual Funds Brokerage
Per Order for Delivery, Intraday, F&O, Currency & Commodity