Your Financial Assistant
Your Financial Assistant
After submitting and verifying your Income Tax Return (ITR), the tax department reviews it, either through automated systems or manually, to ensure everything is accurate and matches their records. If they find any discrepancies or have questions about declared or undeclared income, deductions, or exemptions, …
SOA (Statement of Account) is a document summarizing financial transactions between parties over a period, essential for tracking banking activities. Demat (Dematerialization) involves converting physical securities into electronic form held in a Demat account, facilitating easier trading and management of stocks, bonds, and mutual funds. …
Most of the Investments are profitable only in long term. How ever we can use these Investments as mordgage for short term loand when need arises. People used to take personal loans when in need but Little do they realise that one can take loan against some Financila instruments like Gold, Property, Equity etc.
A loan against assets, also known as a secured loan, works by leveraging the borrower’s assets as collateral to secure the loan. Here’s how it generally works:
Advantages of Loan Against Assets:
Considerations for Borrowers:
As the name suggests, one can take loan against physical gold. As per the RBI rule, the loan to value (LTV) is maximum 75%. This means that if the value of your gold is Rs. 100, you are eligible for a loan of Rs. 75. The interest rate ranges from 12-17%. During an emergency, one can opt for gold loans, instead of applying for a personal loan with a bank.
A person can also take loan against his life insurance policy. An individual is eligible for a maximum loan of 85-90% of the surrender value. The interest rate ranges between 9-10%.
One can also avail a loan against his fixed deposit. However, the minimum tenure of the loan is the term of fixed deposit. The maximum loan to value (LTV) is 90% of the deposit amount. The interest rate charged by banks is around 2-2.5% higher than interest paid on deposit by banks.
A loan against residential property can be availed too. The interest rate ranges between 11-15%, while the maximum tenure of the loan is generally 15 years. The loan to value is maximum 75% of the value of the property.
An individual can take loan against equity shares. The amount and tenure of the loan depends entirely on the banks. The interest rate for this type of loan ranges between 11-16%. The loan to value is a maximum of 50% of the value of the shares.
Bank Fixed Deposit (FD) VS Debt Mutual fundFeatures: Pros: Cons: Debt Mutual Fund Features: Pros: Cons: Comparison Summary: Conclusion Each option has its place in a diversified portfolio, and the choice depends on your individual risk appetite, investment goals, and time horizon.
Amazon Pay ICICI Credit Card is a cashback credit card best suited for Amazon Prime members. It offers substantial cashback of up to 5% for purchases made on Amazon along with a decent 1% cashback across all online and offline spends. The card is free …
Starting your first job is an undeniable milestone in your adult life. While your paychecks bring you financial autonomy, they also bring you specific financial responsibilities. To better manage your responsibilities, you need to learn certain habits.
Learning financial discipline early on makes savings a regular part of your life, helps you prepare for contingencies, and nurtures a ready corpus to meet future milestones.
1. Define your Financial Goals
Define your goals by creating a personal finance calendar for the year. Set financial milestones and plan how to achieve them. It’s like drawing a roadmap to know what you’re working towards and the steps needed to reach your goals.
2. Start Saving and Budgeting
Open a savings account, budget expenses, and save a set amount each month to build a balanced savings approach. Automate savings for at least 25% of your salary. Assess expenses to identify spending patterns and priorities necessities over non-essential purchases.
3. Start Building a Good Credit Score
A good credit score aids in achieving future goals, like buying a dream home at a favorable loan rate. Start with a credit card, pay dues on time, stay within the credit limit, and use funds responsibly. Repaying existing debts, such as student loans, also improves credit history.
4. Get Insurance Coverage
Prepare for the unpredictable with comprehensive health and life insurance plans. Insure yourself at a young age for lower premiums and tax benefits1. Health insurance protects savings during medical emergencies, while life insurance ensures financial stability for dependents. Moreover, popular plans like Unit-Linked Insurance Plans or ULIPs offer the dual advantage of insurance cover plus equity-linked benefits. So, you can insure yourself and build a corpus – all at once.
5. Start Investing in Your Future
Don’t wait until you reach your 30s to plan for the future. Sowing the seeds of investment today can help you reap attractive benefits in the next few decades. A straightforward approach to investment as a novice is simply segregating goals into short-term and long-term goal segments. Depending on your goals, investment horizon, and risk appetite, you can decide on specific investment products like ULIP, Mutual funds, Equity, PPF, etc.
To design the perfect investment plan, ULIP calculators help you determine your premium payments and expected returns on investment vis-a-vis your risk appetite, investment horizon, and goals.
All good habits show results over time. The same is true for financial planning and investment. Defining your goals, developing a diligent budgeting habit, building a credit history, and preparing for emergencies can help you take stock of the future. Not just that, with a head start in the investment department, you can exploit the benefits of compounding and build up a sizable corpus by the time you retire. Tools like PPF, FD, and ULIP calculators can help you understand the right investment strategy vis-a-vis your goals.
In today’s ever-changing landscape of life there are varieties of unpredictable events, where insurance is not just an option but the need of the hour. Merely taking the first step towards securing your future by purchasing a Conventional Life Insurance or Unit Linked Plan (ULIP) …
Life has been a journey of accomplishments and financial milestones for you. As you enjoy the fruits of your hard work and see your life goals materialize, it’s essential to protect your legacy and the lifestyle you’ve built for your family. Uncertainties still exist, and …
Despite choosing the best possible insurance policies, there are times when people encounter unexpected situations that make them falter on premium payments. This can further lead to a bigger trouble of policy lapse if one fails to pay the premium even within the grace period. However, the insurance companies offer a second chance to revive the policy through a payment of late fees, so that the policyholder doesn’t lose his money.
A late payment charge is the penalty you need to pay to revive life insurance that has lapsed due to non-payment of premiums. The amount of this penalty varies across the insurance companies and is usually a significantly higher amount. Typically, it consists of all the outstanding premiums along with an applicable rate of interest added to the sum. One has to go through this ordeal to get his policy back in force so that he doesn’t lose the money already paid as premiums and the benefits and coverages offered by the policy. However, usually, a life insurance company allows the revival of a lapsed policy within the next five years only.
A life insurance premium payment has to be made on or within the due date, beyond which a grace period of up to a maximum of 30 days is available. If you don’t pay the premium within the grace period, even the policy gets lapsed with all claims turning invalid and all the benefits and coverages terminated. A late fee allows payment of the entire outstanding amount along with a penalty to revive the policy within a stipulated time frame.
There is no other way to avoid late fees and other penalties in life insurance than paying the premiums on time. To do that that you can avail of the following steps:
Take away
Late payment charges of course are a way to revive your lapsed policy even if you completely falter on your premium payment. However, you need to pay a considerably more price for that as well. So, it’s indeed wiser to pay the premium within the grace period offered by the insurer if you miss the original due date. Why go for a loss when you have a way out, right?
Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number that is required on all TDS returns under Section 203A of the Income Tax Act, 1961. The TAN number is needed by all those who are responsible for deducting and collecting taxes. Let us tell …