The place of residence is significant in HRA calculation as for a metro the tax exemption for HRA is 50% of the basic salary while for non-metros it is 40% of the basic salary. This holds true especially when you work at a metro and reside at a non-metro. In this case, your city of… Read More »
It is important to ask certain questions: Have you chosen the right card? Do you know the interest rate on your credit card? Did you stop to read the fine print? Do you depend on your card and spend the maximum credit limit? Do you buy impulsively and purchase things you don’t really need? Have… Read More »
A bank is eligible to demand additional security when property prices fall. Even if you are loyal on your EMI payments, this clause demands a security cover in addition to your loan amount and if a borrower fails to provide such a security then he/ she may be declared a defaulter by the lender.
There is always a direct relation between prices of certain commodities and inflation. Let’s take the price of oil. This and inflation are connected in a cause and effect relationship. As oil prices move up or down, inflation follows in the same direction. The reason why this happens is that oil is a major input… Read More »
Prepayment implies closing the loan earlier than planned. Most banks impose a penalty on prepayment. However, very recently SBI has announced that it will be dropping prepayment charges on its loans. This announcement came the next day after it hiked its base rate by 0.25%. It also withdrew its teaser loan schemes along with this… Read More »
The RBI recently announced its annual policy for 2011-12. NDTL, MSF, LAF, and so on and so forth, the document has a lot of financial jargon. So what do the policies of the RBI with respect to these jargons mean in real life terms to a common man’s day to day life… Read on to… Read More »
The RBI governor Mr. D. Subbarao today announced the Annual Policy statement for the year 2011-12. Here’s a look at what the document contains. “The annual policy has been created under very different set of conditions as compared to the last year” were the opening lines of the Governor.
Gold loans typically are for the duration of one year, and can be foreclosed at any time. Banks charge an interest of 10% to 12% on gold loans, and your liability is to pay the interest on a monthly or quarterly basis-no EMIs to pay or worry about. The jewellery is released by the bank… Read More »
A home loan is a long-term financial commitment and borrowers need to be in a position to afford it. Banks have customised repayment options to address the individual requirements of their customers.A wise planner can make use from the options available in the market.
While school and college fees are relatively low, it is not the case with higher studies, especially when it is pursued abroad. Hence banks and financial institutions provide educational loans to fund studies. These are special purpose loans that help the students cover the cost of pursuing a higher degree or some specialized courses. They… Read More »