Search Results

The debt snowball is a common debt-reduction strategy. It entails making extra payments on your debt, beginning with the smallest sum owed. You'll pay the bare minimum on all of your debts, but you'll send additional money to the one with the smallest balance. After you've paid off that low-amount loan, you'll move on to the debt with the next-lowest balance. The payment you were making on the recently paid-off loan will be applied to the next debt you're paying down each month. Where did the debt snowball approach originate? Dave Ramsey, the personal financial expert, developed the debt snowball method. He feels that paying off the smallest sum initially keeps you motivated since you get immediate gratification as you pay off your debt. Unfortunately, this popular debt-reduction approach might be a costly way to repay your debt. That's because you may devote a significant amount of time to repaying low-interest debt before tackling your high-interest debt. This may occur if your most costly loans also have significant amounts, causing them to arrive late in your snowball. Rather of taking a route that might result in you keeping more expensive loans with greater amounts, you might want to take a different strategy to debt repayment. This has the potential to save you a lot more money than the debt snowball. There is a better way to repay debt than the debt snowball, and it might wind up being a lot less expensive. It entails debt consolidation. You might eliminate the decision of which loans to pay off first if you can qualify for a low-interest personal loan and utilise it to pay off most or all of your other bills. You wouldn't have to worry about prioritising a slew of various bills. Instead, you'd have a single fixed-rate loan with monthly payments that you'd make on a regular basis. You wouldn't have to worry about keeping motivated or paying off each debt fast since you'd be compelled to make monthly payments that would pay off your whole sum by the conclusion of the loan term. When compared to the snowball strategy, if your refinancing loan has a lower rate than your previous debt, you may save a lot of money. Let's say you had a large loan with a 17 percent interest rate that would be way down on your list of bills to pay off if you used the snowball method. Instead of paying that 17 percent rate for a long period while paying off less costly debt, you may refinance and quickly lower the cost of that pricey loan. Only refinancing makes financial sense if you can get a better rate than what you're paying now. However, if you have a lot of credit card debt, a personal finance loan is likely to be far less expensive than your card's current rate. Before you contemplate the debt snowball strategy, look around for refinance quotes to determine whether refinancing makes sense for you.

Punjab National Bank (PNB) has come up with a variety of promotions and offers to brighten up the holiday season, making its financial services and transactions more appealing than ever before. To provide additional delight to its clients, the bank has lowered the interest rate on loans against gold jewellery and Sovereign Gold Bonds by 145 basis points as part of the new program. PNB currently provides 7.20 percent loans against Sovereign Gold Bonds (SGB) and 7.30 percent loans against gold jewelry. PNB has also reduced house loan rates, which now start at 6.60 percent, while vehicle loans start at 7.15 percent and personal loans start at 8.95 percent, all of which are among the lowest in the sector. PNB is also giving a 100% free of service charges/processing fees on loans against jewelry and SGB over the festive season, similar to the recent announcements on house and auto loans. Home loan margins have also been cut by the bank. As a result, house loan applicants can now get loans up to 80% of the property's value, with no maximum limit on the loan amount. Funds are accessible at a very cheap rate on a range of retail loan products offered by PNB during this season, thanks to the drop in interest rate and the absence of a processing charge.

When it comes to buying an apartment, most individuals are concerned with the price and the interest rate on their mortgage loan. While understanding these fees is critical, they aren't the only charges you'll face on your path to homeownership. Some costs must be paid in advance, necessitating careful planning and budgeting prior to the purchase of your house. Other charges might be wrapped into your mortgage and paid as part of your monthly payment. It's vital to understand both sets of costs in order to make a successful and economical house purchase. Purchasing an apartment entails a number of expenses. Before jumping in, it's crucial to understand the various prices and charges that must be paid at various phases of development. In general, the total property expenses are divided into two parts: one to be paid to the builder, and the other to be paid to the statutory and legal authorities. These are further subdivided into sub-headers. The splits are detailed below. 1) Fees for Stamp Duty and Registration: Stamp duty is a mandatory tax that the buyer must pay to the state government in order to get the residence registered in his or her name. These fees can range from 5-7 percent depending on the state, and your property will not be registered in your name until the stamp duty is completed. Recording transfer of property with the department of revenue is called registration, it is mandatory, property ownership is a public record, one needs to record the ownership of property with its local sub-registrar of assurances, registration charge is generally 1% of the property value. This may appear to be a modest sum, but it adds up. 2) Deposit for upkeep: Builders often charge a two-year advance maintenance or maintenance deposit, which is usually categorised under common facilities, parks, and lights. It is charged as a deposit by society members in existing structures in case of any unanticipated damages that may arise in the future. This sum, like other house charges, may add up quickly depending on the quantity of facilities offered or the current maintenance fee. When clubhouse membership is included in the charge, the total sum increases even higher. The quantity varies from city to city, apartment to apartment. 3) Fee for Brokerage: This isn't technically a secret cost, but it's one of those household expenses that gets overlooked when you're looking for a property. The fee levied by the broker - the individual who acts as a middleman between the buyer and the seller – is known as brokerage. The majority of brokers charge a fee of 1-2 percent of the entire house price; however, certain brokers are more costly and may demand a greater fee. It is preferable to learn about the facts and resolve them with your broker right away. Brokerage, for example, will increase the base cost by Rs 3.75 lakhs in the example above. 4) Ample parking: With such a scarcity of space in our nation, parking space is unfortunately not included when you purchase a home. This charge may be greater or lower depending on the location you reside in and the size of the available parking spot. This charge is a separate payment that must be paid to the vendor. If you fail to pay this charge, the seller has the right to sell it to another society member. Again, the price of a parking spot is determined by the project's location - it normally starts at Rs 1 lakh and may go up to Rs 4 to Rs 5 lakh, adding to the list of hidden housing costs. 5) Interior Design: This is the largest and most crucial expenditure - one that cannot be avoided because you cannot move in without suitable interiors. Painting, plumbing, purchasing new or custom-made furnishings, electric appliances, and the list goes on and on. Even with a lot of sacrifice and cutting back, this cost may easily reach Rs ten lakh. While shopping for furniture online may save you money, the cost of interiors is at least Rs 20-Rs 25 lakh if you alter everything and Rs 15-Rs 20 lakh if the basic interiors are already done. 6) GST (Goods and Services Tax): The Goods and Services Tax (GST) is applied to every under-construction property acquired in India. GST is paid to the government in the same way as stamp duty and registration fees are. The GST on under-construction property is 5%, but the GST on affordable housing developments is only 1%. On ready-to-move-in houses and projects with a completion certificate, there is no GST.

The Reserve Bank of India has enhanced the per transaction limit through Immediate Payment Service from Rs 2 lakh to Rs 5 lakh in order to boost digital transactions (IMPS). The National Payments Corporation of India (NPCI) manages IMPS, which is a major payment system that allows for instant domestic funds transfers 24 hours a day, seven days a week. It can be accessed through a variety of channels, including internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS. With RTGS now available 24 hours a day, IMPS settlement cycles have increased, lowering credit and settlement risks. This will result in an increase in digital payments and give clients with an extra facility for making digital payments beyond Rs 2 lakh, he said, adding that the relevant instructions will be released separately.

For investors seeking returns that are consistent with the performance of the NIFTY Next 50 Index, subject to tracking error, HDFC Asset Management Company has announced the introduction of a New Fund Offer - HDFC NIFTY Next 50 Index Fund. After removing the components of the NIFTY 50 Index, the NIFTY Next 50 Index reflects 50 firms from the NIFTY 100. The HDFC NIFTY Next 50 Index Fund intends to provide a disciplined way to profit from the growth of a basket of "tomorrow's prospective NIFTY 50 companies." The subscription period for the New Fund Offer (NFO) will run from October 22, 2021, through October 29, 2021. The NFO will appeal to investors searching for a simple yet cost-effective method to participate in the NSE's listed universe's 'Next Top 50' firms. In comparison to the Nifty50, the company says that HDFC NIFTY Next 50 Index Fund would give exposure to a diverse portfolio at the sector/stock level, as well as exposure to distinct and innovative businesses. The HDFC NIFTY Next 50 Index Fund is an open-ended plan that tracks or replicates the NIFTY Next 50 Index (TRI). The NIFTY Next 50 Index is more diversified, with the top three sectors accounting for 58 percent of the index's weight, compared to 67 percent for the NIFTY 50, and hence may provide superior risk-adjusted returns over time. The fund will be managed passively, with the components of the NIFTY Next 50 Index as its investing universe.

The Gold BeES ETF is a passively managed open-ended ETF. Before expenses and other ETF-related charges, the fund's returns are comparable to gold returns. These are ETFs, which means they can be traded on a stock exchange. As a result, investors have the opportunity to trade the instrument during market hours. What are the advantages of Gold BeES for Investors? With Gold BeES, there are no issues with storage or theft. Similarly, unlike in the case of jewellery, investors do not have to pay for the extra cost of gold design. Another benefit of Gold BeES is that there is no risk of gold purity because Gold ETFs deal in 99.5 percent pure gold. It is also the most widely traded and liquid form of gold investment. However, a demat account is required for holding and remaining invested in Gold BeES or Gold Benchmark Exchange Traded Scheme. There is a variable entry load structure based on the investment amount during the NFO period. In addition, unlike SGBs, gold BeES are available in large volumes due to the large volume, whereas SGBs are offered in tranches for a limited timeframe. Gold ETFs and gold BeES do not have high margin costs, which range from 3 to 8% for physical gold. A small amount of gold can be used for exposure. If gains on units are held for more than 36 months, long-term capital gains (LTCG) tax of 20% with indexation benefit applies to gold ETFs. If gains on units are held for less than 36 months, short-term capital gains (STCG) tax is imposed at the investor's income-tax slab rate. Capital gains on SGBs sold in the secondary market are similar to this. Transacting in Gold BeES has a cost Trading in Gold BeES, like stocks, incurs a brokerage fee of 0.5 percent of the transaction value, which varies from broker to broker. 1 unit of Gold BeES is equal to 1 gramme of gold and can be traded by investors. Prospects for Gold BeES So, in times of uncertainty, such as the current one, one can rely on gold BeES as a perfect hedge and diversifier. Furthermore, because these BeES have a favourable cost structure, investors with long-term investment goals can stagger their investments into them. When purchasing Gold BeES, there are a few things to keep in mind. 1. The assets under management of the fund, as well as the average daily turnover, should be considered. 2. Impact cost, which indicates how much liquidity the instrument provides. 3. The tracking error should be the smallest when compared to the gold benchmark.

Eight major banks have joined the Account Aggregator (AA) network, which allows them to share consumer bank data while also attracting new customers. To receive the benefits, you must consent to AA sharing your credit information if you are a customer of any of the major banks, including SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, Indusind Federal, and IDFC First Bank. Platform for Information Exchange The Reserve Bank of India has licenced Account Aggregators to act as an intermediary or exchange platform for banks and institutions that share and use data from the system. The platform's job is to bring all of a customer's financial data together in one location and operate as an information custodian. Any bank, insurance firm, or mutual fund that shares data with AA, for example, will be able to access the data exclusively through the system. As a result, your bank or financial institution must be a member of one of the active AAs in the market. There is no need for paperwork or a KYC. The procedure of sharing data becomes simple once your bank or institution provider is registered, as the institution is connected to the AA system via APIs. You don't need to submit any paperwork for KYC if you need a new loan, want to acquire an insurance policy, or want to invest in a mutual fund, for example. All you have to do is give AA your permission to share your data with banks and organisations. The AA will digitally extract the information from your bank and send it to the bank or organisation where you are asking for a new loan or investment. Protected and safe If you're concerned that your data will be used or misused by anyone, the AA framework contains very rigorous data privacy requirements. From your bank to the institution you're asking for a new loan or any other business for a financial product, the data shared by the AA will be securely encrypted. You have complete control over data sharing. As a customer, you will have complete choice over the quantity of data you want to disclose on an AA platform, as well as the time period during which the data will be available for any bank or financial institution to access. You can also choose to transmit only loan information or only credit card information, for example. Other information intermediaries, such as a credit bureau, are used by the lending institution to obtain extra information on you.

The capital markets regulator has warned that financial advisors cannot trade in unregulated products, thereby barring them from delivering any official advice on new-age asset classes like cryptocurrencies, non-fungible tokens (NFTs), and digital gold. "Some registered Investment Advisers are engaging in unregulated activity by offering a platform for buying/selling/dealing in unregulated items including digital gold," SEBI warned in a statement. “Investment Advisers are, hereby, advised to refrain from undertaking such unregulated activities. Any dealing in unregulated activities by Investment Advisers may entail action as deemed appropriate under the SEBI Act, 1992 and regulations framed thereunder,” it added. The SEBI statement stated further that “undertaking such unregulated activity including dealing (i.e., advisory, distribution and execution/implementation services) in digital gold by Investment Advisers is not in accordance with the provisions of Section 12(1) of the SEBI Act, 1992 read with the SEBI (Investment Advisers) Regulations, 2013.” The SEBI announcement is significant since the number of Indians trading in Bitcoin and other cryptocurrencies, as well as NFTs and digital gold, has increased dramatically in recent years. Some new-age investment and advice platforms also provide services for individuals to purchase digital assets, which are particularly popular among young and first-time investors, particularly millennials.

Here are some things to consider if you want to buy a car to reduce your reliance on public or shared transportation and take out a car loan to do so. Make a financial plan for your auto loan. Don't compare your affordability to the advertised EMI. Lenders will finance up to 100% of the vehicle's cost and provide a loan term of up to seven years. However, don't go overboard with your spending. The on-road price of a car should not surpass 50% of one's annual salary, according to a rule of thumb. A person earning Rs 20 lakh per year should buy a car that costs Rs 10 lakh on the road. Make a detailed budget and examine your cash flow stability. Make a down payment of at least 20% of the vehicle's cost. Take out a loan for no more than four years if possible. Keep your auto EMI to a maximum of 10% of your monthly pay. The higher the interest rate, the longer the loan duration is. In the end, it raises the cost of an automobile. If you have additional EMIs (home, student loan, etc. ), make sure you aren't paying more than 40% of your take-home income on all of them together. Examine vehicle loan offers in their totality. During the holiday season, discounts and freebies abound. Car dealers frequently provide discounts indirectly through zero- or low-interest financing. Because each dealer has a separate relationship with a different lender, the products available vary. As a result, analyse the offers in their totality and shortlist a lender after accounting for all costs. Buying a car from a dealer and getting a loan from a finance company separately might sometimes be less expensive. Look around. Obtain a loan that has been pre-approved. It will assist you in negotiating with financiers. Some dealers/financiers may be willing to provide you additional discounts over and above the usual if you meet your month-end goals. Processing fees (about 0.5 percent of the loan) are frequently waived for creditworthy customers or current deposit holders by banks and NBFCs. Examine the fees associated with prepaying your car loan. There are normally no fees if you prepay a car loan up to a certain amount. For a car loan, prepayment penalties might be as high as 5% of the outstanding balance. Some PSU banks, on the other hand, are waiving the fee for their customers. Furthermore, some banks do not allow prepayment during the first year of a loan. Make the necessary checks and balances. Pay close attention to the small print. Low-interest rates are only available to people with the best credit scores as determined by CIBIL. You can even get a tailored offer if you have a good CIBIL score. Finally, keep in mind that many car loans are variable-rate and linked to the repo rate. If interest rates rise in the economy, your loan term will lengthen, limiting your ability to contribute to other key financial goals. As a result, maintain the appropriate cash cushion.

A savings account is a type of bank account that is useful for salaried individuals with consistent monthly incomes. The Deposit Insurance and Credit Guarantee Corporation (DICGC), Ministry of Finance, insures savings accounts up to Rs. 1 lakh. Aside from a bank, you can also open a Post Office savings account. A Post Office savings account earns higher interest rates than a bank savings account. Occasionally, all banks do not have branches in distant sections of the country, but the Post Office has a better reach to rural locations. Rate of Interest: The primary distinction between a current account and a savings account is that the latter pays interest on deposits. The reason a savings account pays such a low rate of interest is that your money is safe in there until it is taken or paid out. Savings accounts offer interest rates ranging from 2.70 percent PA to 5.25 percent PA, depending on the net balance amount and the bank or Post Office. Interest rate graphs for a few major banks Bank Interest Rate (PA) SBI 2.70% HDFC 3.00% ICICI 3.00% Canara Bank 2.90% (PNB) 3.00% Bank Of India 2.90% Axis Bank 3.00% Kotak Mahindra 3.50% In comparison to these rates, the Post Office savings account gives a 4% annual percentage rate (APY). As a result, the interest rate on a savings account is higher than that of other public or private banks. So, if you wish to open a savings account, you might look into the Post Office's options. The account will provide you with the same benefits, but at a higher interest rate. To open the account, a minimum balance of Rs. 500 is required. Type of Savings Account: Regular Savings Accounts, Salary-based Savings Accounts, Senior Citizens Savings Accounts, Minors' Savings Accounts, Zero Balance Savings Accounts, and Women's Savings Accounts are all examples of savings accounts. At the moment, the net banking option of savings accounts is an added bonus; you do not need to visit the bank in person to open the account or conduct transactions. A savings account has a lower minimum maintenance balance than a current account. You can pay your credit card payments immediately or transfer funds from your savings account. A savings account also aids in the organisation of the account holder's income tax returns. A savings account's liquidity is relatively straightforward, but the withdrawal limitations vary; a customer will be able to withdraw money up to a certain amount each month. Furthermore, some banks, like credit card companies, may give discounts on purchases made through their savings accounts.

EPFO subscribers were relieved to learn that they will receive their pensions without delay. Notably, as part of the EPFO's newly released "Nirbadh Sewa," subscribers will get the pension payment order on the date of retirement.