What does it mean? It is calculated by dividing the company’s total liabilities by the total equity fund belonging to the shareholders. It reflects the proportion of equity and debt that the company has employed to finance its assets. Usually only long–term debts are considered when computing this ratio. If a company is having a… Read More »
According to the Income Tax Act, it is the interest component of any loan be it home loan, personal loan etc that has a tax deduction option and not the principle component. But for example, if you have borrowed an education loan for your family members then, as per Section 80E, an assessee can claim… Read More »
You should inculcate the habit of visiting a financial planner as they can guide and advise you about your financial health. It will help to create a sense of disciplined savings pattern and make you watchful about your investments. Most people have the wrong notion that one must visit a financial planner only if you… Read More »
Yes, that is correct. It has been proved in the eighth edition of Cartoon Network’s research study, New Generation, on kid’s lifestyle had estimated that Indian children earned as much as Rs. 664 crore as pocket money (including gift money) compared with their earnings to the tune of Rs. 478 crore in 2008. (The survey took a sample size… Read More »
It is important to pursue the path of systematic savings, in order to avoid getting into a debt trap of a personal loan, home loan, car loan etc. But equally important is to, save your money into diversified asset classes. Many times we come across various instances, for example, people looking forward to increase their… Read More »
Avoiding loan defaults is the best way to save your credit record. While the financial market today has opened up avenues for all sorts of borrowers, risk options are also running high at the same time. While secured loans such as home loans, may offer the best solution for short – term borrowing at a… Read More »
The Finance Act of 2007 has brought relief amongst the borrowers of educational loans in the country where in you get a tax benefit for the loan taken to pursue your higher education, or your spouse’s or child’s education. This act was recently amended prior to which, tax benefit was provided only to those borrowers… Read More »
Short – term loans to corporate houses are being held back by the State Bank of India and other prominent banks in the country to tide over the liquidity crunch. This means that if a corporate has a drawing power of Rs. 150 Crores and the bank’s loan outstanding to the company is Rs. 100… Read More »
If you are looking for a short – term loan, then secured loans can be an answer to your query. However, as feasible as it sounds, it does come with a few chinks in the armor. Secured loans require pledging your property, vehicle or jewelry as collateral, until the repayment of the loan amount. Moreover,… Read More »
If you have saved enough funds, then borrowing money to go for that much awaited vacation to your dream destination or indulging yourself in some luxurious shopping may not be such a bad idea after all. Borrowing may not be a bad choice as long as it is done smartly. Do not opt for any… Read More »