Did you know that your credit report alone can compel a lender to turn down your loan application? Banks are becoming increasingly reliant on credit scores as part of their loan sanction process. And why not? A good credit score is an indicator of credit worthiness of the borrower. It does not end there. Banks have started to even link loan interest rate to your credit score. … [Read more...] about Checking Credit Reports: What to Look For? How to Fix Anomalies?
As online banking, electronic transactions and debit or credit cards find greater acceptance, the room for electronic banking frauds also grows. RBI has come out with a circular that details the scope of customer liability in case of an unauthorized transaction. It is a welcome and a long-awaited move from the banking regulator. The regulator had come out with draft … [Read more...] about What is your Liability in a Credit Card or Online Banking Fraud?
Karthik, a good friend, forwarded an article from ColloborativeFund.com titled “The Reasonable Formation of Unreasonable Things”. The article talks about how market bubbles and crashes are inevitable. And that bubbles are a result of shortening investment horizons. And that volatility is needed if you need big returns. The article made a lot of sense to me. By the way, the … [Read more...] about How Traders and Investors have different expectations and how it affects markets?
Last week, the interest rate for PPF, Sukanya Samriddhi Scheme, Senior Citizen Savings Scheme, NSC and other small savings schemes were cut by 0.1% p.a. Let’s look at what the rates are. Latest Interest Rates for PPF and other Small Savings Schemes I am copying a snapshot from Ministry of Finance notification dated June 30, 2017. Here are the latest interest … [Read more...] about Interest rate for PPF and other Small Savings Schemes cut by 0.1%. What should you do?
With mutual funds, you can take exposure to equity markets (both domestic and foreign), debt investments, gold and now even real estate and at the same time have your money managed by professional managers. You do not need big upfront amount to start investments. You can start small with even as low as Rs 500 per month. You do not need any special investment expertise. You can … [Read more...] about Why I prefer Mutual Funds over other investments?
There is no standard nomenclature. The nomenclature may differ across banks. I call these step-up home loans because EMI increases after a few years. Let' dig deeper. What are Step-up home loan products? Under such loans, there are two types of repayment periods. Moratorium period (let’s call it that): It can be 3-5 years depending upon the loan product. During this … [Read more...] about What are Step-Up Home Loan Products?
One of the first questions that many have on their minds while short-listing a life insurance policy is whether insurance company will pay up if the policy holder dies. The greatest worry is if, after so many years of paying premium, the insurance company will reject the claim and leave your family high and dry in times of such emotional stress. No surprise many trust … [Read more...] about Claim Settlement Data of Life Insurance Companies: Hides more than it Reveals
LIC Jeevan Umang is a non-linked participating whole life traditional life insurance plan. The meaning of whole life is almost literal. The plan matures when you turn 100. Let’s look at at some salient features of the plan and how LIC Jeevan Umang makes for an insurance and investment product. Salient Features of LIC Jeevan Umang Policy Maturity: At the age of 100 years (I … [Read more...] about Review: LIC Jeevan Umang
Met a cousin at a wedding in the family a couple of months back. He is a bright young boy, still in his teens. He had vague idea about what I did for a living. As it usually happens at family weddings, most of us have to bide time till the evening when the real festivities begin. There is never enough space to stretch your legs and sleep. With nothing to do, he began asking a … [Read more...] about How much do I need to Invest per month to accumulate Rs 1 crore?
There is a BIG difference between financial planning for retirement (accumulation phase) and financial planning during retirement (decumulation phase). Let’s look at what I mean. In this post, I will limit the discussion to investments. Financial Planning for Retirement (Accumulation Phase) During this phase, you are trying to accumulating funds for retirement. Quite … [Read more...] about Financial Planning For Retirement vs. Financial Planning During Retirement