Personal Financing Solutions - Loans, Credit Cards, Insurance, Real Estate, Investment

Now get Live visuals even when you are on move, thanks to Live TV!!

2010-03-19T03:41:00.000-07:00

IPL-3, presently is the flavour of season. Thanks to sentiments attached to this game of cricket, people are willing to sacrifice their day's salary just to catch a glimpse of their favourite cricketing stars. But that is not all, if Indians are mad about cricket than Indian Film Industry aka 'bollywood' is not far behind. No, there is no clash of titans being discussed here. The topic of debate is something else. It is Live TV. Thanks to growing awareness about Internet, people now really know what is the meaning of Live TV.

Live TV, as most of the readers must be knowing, is a form of broadcasting of interactive visual solutions by the means of Internet. Seriously, credit goes to IT sector (as a whole) that has progressed to an extent which nobody can fathom. Surely, now getting entertained even when one is on move is possible. Certainly, this has turned out to be a blessing in disguise for those who cannot live without time-to-time dose of latest happenings in the form of news. Channels like IBN7, CNBC Awaz, IBN Lokmat have been offering this service to their clients from quite some time now. And now with growing competition, more and more Offline (read: TV) channels are coming up with their Live TV wing. This arm of theirs will cater to the needs of people for whom staying in touch with world is extremely important.

The best part of this whole thing is that one does not need a television every time. Since, this service is easily accessible with Internet connection. Another important thing to mention here is that people using this service don't need a bulky TV set to carry with them every time. They can do simply with a laptop or better, with a desktop connected with a high-speed Internet connection. However, users are advised to exercise caution about the billing procedure of the service providers. Since, for readers information, live streaming is treated as downloading hence, consuming up user's free downloading space in no time. Usually, if one does not pay any heed to this thing, he/she is expected to get a shock at the time of bill payment.

Going back to the topic, the concept of Live TV is a wonderful invention for news-hungry people. Reason: Now they can stay glued to their computer's screen waiting for next update on channels like FOX News Live TV, BBC, CNN etc.

What else, watching movies, daily soaps, serials is another fantastic offering of this innovative feature. Certainly, it is to be understood that with every passing day, significance of Live TV is increasing in people's lives. Knowing this many business houses have already jumped into the league with an idea to cater to the needs of emerging market and carve out a space for themselves. With majority of business ideas taking a beating in recent times in terms of clocking profits, they are turning to alternate or out-of-box branches for compensating for the same.

Credit cards: brings dreams into reality

2010-03-08T04:47:00.000-08:00

A credit card is another means of payments named after the small plastic money came into existence. It is a card entitling its holder to buy goods and services based on the holder's surety to pay for these goods and services. It provides maximum convenience to the customers and it is practically impossible to carry hard cash as it is not a safer option. Now a days, credit cards are serving as one of the best ways for the purpose of payments.

As the world is recovering from the economic slowdown, several credit card issuers are once again actively working to increase their portfolio. Due to stiff competition in credit card section, credit card providers are launching different types of credit cards in India targeting different categories of people with various features and benefits. Besides the standard credit cards for general public, there are student credit cards, business credit cards, airline credit cards etc.

Many card providers offer credit cards for small businesses. Having a business credit card can be a huge help to the company in a great many ways. But you should understand what the credit cards company is offering, how you can take advantage of it. Business credit card facilitates various business transactions that will make your life easy and comfortable.

Keeping the needs of college and university students in mind, card provides have specially launched student credit card. The eligibility criteria for the applicants of student credit card is that he/she should be 18 years old and should be enrolled in a reputed college or university. Credit card issuers provides various benefits to the students through this card. For example- Students can pay colleges and can also get discounts on purchasing books through this credit card.

Another magical offering by card providers are travel credit card. This card allows you to earn points or miles for every dollar spent with the card. After earning a certain number of points, you can get ticket for air travel with the applicable airline. Airline reward points also provide more travel-related benefits then other credit cards.

2009: A year that went by!!

2010-01-19T01:58:00.000-08:00

2009 turned out to be a special year for loan aspirants of the country. Taking nothing away from the central government, which doled out large volumes of artificial liquidity in the name of fiscal stimulus, at the end of all it was the banking fraternity that made life lot easier for prospective loan applicants. Truly, year 2009 was a landmark year for the Indian banking industry. The RBI, the topmost banking regulatory institution of the country played its part to perfection, by reducing Cash Reserve Rate (CRR) and Statutory Liquidity Ratio (SLR) thus, allowing much-needed space to players (referring to banks here) for infusing liquidity in blocked veins of economy.

Personal loans portfolio of almost all banks along with home loans have been the biggest beneficiaries out of it. That only became possible because of reduction in prime lending rates (PLR). Obviously, personal loan interest rates too in the meantime have gone for a toss. However, how much we talk about it, the fact remains this reshuffling or restructuring in the past one year in various loan portfolios though have managed to excite customers, but we still haven't been able to drive out fear from people's mind who even today prefer to think thousand times before actually opting for one.

Most of the personal loan interest rates are still hovering in the range of 12-15 percent which in times of 7.31 percent annual inflation is quite a lot. Meanwhile, there is an interesting thing which i would like to share with you. Gold, after Dubai crisis, has taken a beating to such an extent that people are gladly parking their assets (gold in this case) with banks as collateral at a decent interest rate. And believe me there is a significant difference between the two loan product's interest rate. While personal loan product is carrying an interest rate of 18 percent on its head, loan against gold is costs 15.75 percent annually to the customers in the same bank. And this difference grows if the bank is public.

One thing that I would like to add here for the good of people is the fact that people who after reading this blog, are thinking of doing exactly the same, can get their gold accessories, jewellery tested first. Since, banks are smart and they will only allow such lucrative interest rates only when they are completely assured of the authenticity of jewellery (whether it is hallmarked or not, etc.). It is to be noted here, that banks in such cases want to capitalise on the emotional value attached to jewellery and other items and not the gold coins or bars which are not accepted as collateral for loans.

Credit card authorities: Withdrawing a reason to smile

2010-01-15T02:13:00.000-08:00

Wait! Are you a credit card holder then I would advise you to check your credit balance right now or immediately. Why? Because credit card issuance authorities, banks and companies are contemplating about reducing credit/cash limit yet again. Feeling cheated? Well, you are not alone. Many people are sharing the same sentiment with you. Reason, they weren't told in advance or communicated about the development.

Banks participating in this crime are HSBC Bank, ICICI Bank and HDFC Bank. So if you are using credit card of any bank whose name has been mentioned here, mate, you can land up in a serious problem if you go off from this page without reading about it further.

While this was about what precisely is happening, respective banks have their own version of story to tell to people.

Accused No. 1 - ICICI Bank

ICICI Bank, one of the largest private credit card solution provider in the country, argued that the move is a part of their prudent credit line management drive which says that bank must reassess customer's ability to repay dues from time to time. Indirectly, it means, if you are having ICICI Credit card, then your salary account with the bank is under constant scrutiny. So watch out how you spend because the more they charge you, the more repair work is done in terms of correction of balance sheets and financial statements.

Accused No. 2 - HDFC Bank

If that was about ICICI card, HDFC Bank too has smartly switched gears. They, thanks to their lack of knowledge, have clearly rebuked all the allegations. Meanwhile, without fail, they added that like ICICI Credit card division they too have been treading the credit path consciously. Interesting thing to notice here is the fact that like every bank, they too have put the blame on customers, stating that inconsistency in payment of the dues from customer's side is the prime reason behind the decision. Well, quite an obvious thing to say.

Final Ruling

After listening to both the banks, it is quite clear that they (referring to banks here) are never going to take the blame and if they will, bad behavioural responses from customers (in terms of money) is instigating them to do so. On top of that, someone (referring to a senior bank official) has been heard saying that inconsistent usage i.e. unused credit limit is another chief reason for the development happening. I am quite sure this is one reason that is difficult to beat.

Shop unlimited with credit cards in India

2010-01-12T04:30:00.000-08:00

In the 21st century, everybody has developed a incorrigible habit of using credit cards. In fact, the plastic money is the best way through which a person can shop as much as he wants to. These cards have actually made my life much more simple. Now, I remain tension free from the threat of cash theft related possibilities. The credit cards in India are becoming part of a booming business. This is because of the simple reason that the purchasing power of an Indian customers has increased significantly over the years.

There are various leading banks like ICICI, SBI, AXIS and many more. All these names enjoy a fine reputation in the field of banking. All these well known banks deal in an incredible and comprehensive range of credit cards. These cards are basically issued to account holders through which he/she get the facility of buying goods as well as services through their credit cards. Actually, these cards come with a line of payment (cash credit) which differs from bank to bank. You have to repay the money for the amount a person has shopped later to the bank through a monthly payment basis or some other special system as mentioned in the type of credit card plan being used by the client.

The cards are considered as the most standard as well as a very convenient way of shopping. With the help of these cards there is no need to lug around large sum of cash on you all the time. These credit cards come with various interesting benefits which can really create can prove to be very helpful among the extreme hi-tech generation. The best part about most of these cards is that these are accepted worldwide. The present day market is pretty crowded with lots of cards on offer by different banks. These cards are classified into different categories like Silver (which means standard which comes with the lowest credit), Gold (which signifies higher credit) and Platinum (highest credit).

The best part is that an individual can pay all his bills through internet. All an individual has to do is simply log on to particular bank's website and follow instructions. Apart from that, you should always choose your card carefully. There are many other websites on internet through which a person can get more and more information about these cards and the various types on offer in the market. Apart from that, there are certain points which I kept in mind before opting for my card and I suggest you to consider all the factors as well. A person should go for those cards which come with lowest rate of interest (APR). In addition to that, you should also take care of the grace period offered by your bank before taking the plunge

Insurance For Leading A Peaceful Life

2010-01-06T03:22:00.002-08:00

Ever though how important insurance is in life, especially when you are facing the tough times? Though paying premiums feel like a big pain, insurance acts as a protection shield from insured risks and unforeseen circumstances. With a view to meet its customers' expectations, insurance companies keep on launching new and innovative range of products and services and have made today's customer a virtual king in the market. Health Insurance is one such plan which has gained wide popularity in the recent times as it provides a cushion against medical emergencies.

Now-a-days, individuals are getting more concerned towards their personal healthcare facilities and this mindset propels them to opt for Health insurance plans. An unprecedented increase in healthcare costs has also added to the trend. Now, in case of medical emergencies, there won't be any need to worry about the hefty medical and related expenses if you are covered with such plans. National Insurance Company, ICICI Lombard, Bajaj Allianz and Tata AIG are among the leading providers of insurance plans in India.

Now, the same is true for Life Insurance plans which ensure your family's financial security in the event of your death. It is just the perfect gift for your family and to show that you care. With these plans, you become sure that your beloved-ones would be financially secure, even in your absence. What more, IRDA has now even permitted the insurance companies to offer 'Health Plus Life Combo Product' offer which will offer the benefits of both life and health insurance. However, life and non-life insurance companies would require a tie-up before offering such product in the market. It won't be an exaggeration to say that insurance has now become essential for a person who wants to lead a joyful life, full of peace and comfort.

Insurance For Leading A Peaceful Life

2010-01-06T03:22:00.001-08:00

Credit card issuance organizations paving the path to resurgence

2009-12-27T23:12:00.000-08:00

Post-global meltdown, things seems to be going in favour of credit card industry. With market easing down largely, credit card issuance authorities can now breathe a sigh of relief. Recently, Aditya Birla Group and SBI Card aligned their shoulders for launching co-branded credit cards for the clients based in Aditya Birla Group company. This clearly reflects the fact that the much sought-after recovery is quite fair-paced and most importantly, the growth is heading in right direction.

If one sees the above-mentioned move from provider's point of view, SBI card domain of bank stands to benefit from this move certainly because this product has exposed them to over 28-million potential customers working with Aditya Birla and in allied arms of the banner. This automatically means a straight access to high-profiled fixed earning clientèle. This will also ensure that this SBI card reaches out to maximum people in the minimum possible time and with minimum effort.

This decision will directly benefit the country's largest public sector lender by adding a staggering figure to its already existing user-base of 27.23 lakhs which can make it a serious contender for top spot on overall basis, a position where presently ICICI Bank stands tall.

It is quite good to see banks like SBI and Axis Bank come up with such innovations even after recent times haven't been good for the credit card business. Take this stat for example, the total volume of bad debts clocked by overall credit cards division of the country was Rs. 5094 crores in the last financial year which was only Rs. 2852 crores in the year before. Numbers speak for themselves and one can hardly doubt the authenticity of this data since this itself was released by central government.

Meanwhile private players like Axis Bank have reloaded their Axis Card division (both debit and credit card section) with newer features and incorporated user-friendly services into them just to fill up the vacuum that has got created after the near-extinction situation faced by plastic money issuance authorities during economic downturn period which now is turning out to be a blessing in disguise for them.

However private banks, Axis Bank in particular, have gone a step ahead and are looking forward to capitalize on the foreign clientèle through its Axis card ie plastic money solution.

Home loan: an advance way to accomplish your dreams

2009-12-23T00:39:00.000-08:00

A new home comes with new hopes, joys and emotions. Owning a home is one of the most common aspirations among people from all walks of life. No matter what his status in life is, every person will give anything just to be able to build a home for his family. In a current scenario, for average income earners, only a home loan can make the dream of owning a home a reality. No matter how meager the monthly income is, there is always a chance of owning a home. Owning a home through a loan is not an easy task because first of all, the person has to have a good credit history. There should be proper research about the loan provider who can give him the amount he needs to buy or build his home.

A loan borrower should evaluate the pros and cons of the terms and conditions of the bank before applying for the loan. One can easily get the loan as there is a tough competition amongst the money lenders for providing the home loan. Many banks like ICICI, HDFC, State Bank of India provides beneficial offers to their customers. Let's take an example of HDFC bank which offers home loan at your doorstep with minimum paperwork. The bank offers 85% loan of the cost of the property including the cost of the land and based on the repayment capacity of the customer. HDFC home loan comes with a maximum term of 20 years subject to your retirement of age.

One can apply for the home loan jointly or individually but as per rules, proposed owners of the property will have to be co-applicants. HDFC home loan is available on fixed as well as adjustable interest rate. The loan under adjustable rate is linked to HDFC's retail prime lending rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on the loan may change. However, the EMI on the home loan disbursed will not change.

Enjoy the most treasured privileges with credit cards

2009-12-13T23:04:00.000-08:00

Don't you think that time has changed a lot? There was a time, when people used to carry cash (paper currency) in their pockets while going out for shopping or for some long vacations. The fear of running out of cash was always there and this fear would often destroy the fun of being with family or friends. But, with the change in time, this concept of carrying cash in pockets has also changed. And it is the credit cards that has change the concept. A small piece of plastic, but it does wonders and many would agree with this.

Generally, we all know the uses and benefits of credit cards or plastic money, as it is popularly known. But, when it comes to choosing the one which suits our individual needs the most, we don't know much. Though it is true, a credit card comes with loads of benefits and surprises, it entails disadvantages as well. Therefore, it becomes really important to choose the right card. Axis Bank is one of the leading credit card providers in India. The bank offers Platinum Advantage Credit Card, Platinum Credit Card, Gold Plus Credit Card, Silver Credit Card, Easy Credit Card and many more cards to cater to the ever-growing demand from its customers.

Axis Bank began its operations in 1994 and since then, the bank has made whole-hearted efforts to go beyond the expectations of its customers. HDFC, SBI, Canara Bank, Amex, Visa and MasterCard are among the other leading credit-card providers in India. ABN Amro Bank is another such bank which offers an all new and innovative product range in India and believes in exceeding the customers' expectations. The bank offers Platinum Card, Titanium Card, Smart God Card, One Card...the list is simply endless and all these cards have been designed as per your individual needs and expectations.

Having a card has become a necessity in today's world and has helped a lot in making life simple and worth living. However the card-holders should also be cautious about the frauds and dangers associated with the credit-cards.

The changing face of journalism in India

2009-12-09T21:43:00.000-08:00

There are over a billion people in India who will readily agree to live without food and water, but won't be ready to live without watching daily news on their TV sets. In the last one decade, there has been a sharp rise in the number of people watching news on their Idiot Box (TV sets). To meet this ever-growing demand and increase their TRP, TV news channels are now facing cut-throat competition. Many more news channels are also in line to hit the TV screens in the coming months. Zee News, Aaj Tak, India TV, Times Now and News 24 are among the leading news channels in the country. Each news channel works hard to differentiate itself from the others, but somehow viewers don't see much difference between them.

However IBN7 is a news channel, which seems to be genuinely different from the rest. It is CNN-IBN'S Hindi news channel and in a short span of time, has gained commendable viewership in the country. The channel has a strong focus in serving high quality news across the nation and relevant international news. “Khabar, Har Keemat Par” is the tag-line of this channel and this is exactly what Rajdeep Sardesai, Editor-in-Chief, CNN-IBN and IBN7, says about this Hindi news channel.

IBN Lokmat is another news channel to watch out for, which is a 24-hour Marathi news and current affairs channel. It is the joint venture of Network 18 and the Lokmat Group. Mr. Nikhil Wagle is the Editor-in-Chief here and 'Chala, Jag Jinkuya' is the mantra of this news channel, which means let's conquer the world. IBN Lokmat aims to become the most reliable and dependable source of information in Marathi in the upcoming few years and will have a strong focus on Maharashtra.

Now, with the launch of these types of focused and well-planned news channels, the journalism industry in India is sure to see a complete make-over in the coming days.

credit cards:- The easy way to make transaction

2009-12-04T02:46:00.000-08:00

In this present scenario everyone is very busy in their personal life. Where we can earn money in each second, credit cards play a very important role. It actually help us to purchase any goods and services at any time any where without carrying the money with us.

The Credit cards is made up of a small plastic cards that were issued by the financial organizations to us to buy anything on credit bearing the promise to pay a the money along with a certain amount of interest to the organization within a stipulated period of time. There shape and size will be ISO/IEC7810 standard as ID-1. At the time of purchase the credit card holder signs a receipt which includes the card details and the amount that is to be paid. The user is given a PIN number which they have to give at the time of making the purchase. At present we can find out various banks like SBI, ICICI , ABN-AMRO, and the American Express which provide credit cards to the customer and at a specific rate of interest.

On the other hand the ICICI Bank cerdit cards provide to us various services like the Auto Debit, Internet banking, Cash in advance, Email statement or Mobile Alerts and they also provide 24 hours online helpline services for us so that we can collect any information at any moment of time. The bank provide to varieties of cards to the customers in two different categories like consumer cards which include credit cards, travel cards, Debit Cards and Commercial Cards like Corporate cards, prepaid cards, Purchase cards, distribution cards etc.

We can also avail various specific facilities from the American express credit cards or Amex cards. In order to attract the Indian market they have launched two types of cards like the Gold and Green Amex cards. We can find out that the Amex card holder can avail various benifits like discounts of 3% to 7% on airline tickets and 40% discount on overseas hotel rates. They also provide to us different variety of card based on the taste and preference of the customer.

Thus we can see that the credit cards are a very essential thing in ones life and people should have this in ones life to free themselves from carrying a lots of loose cash in order to purchase some thing from the customer.

Indian companies likely to lead global IPO markets recovery

2009-11-30T04:43:00.000-08:00

Indian companies seem to have the key for bringing recovery signs in the global IPO markets, as more and more institutional investors around the world are looking up to India and China to lead the revive in the struggling IPO markets. Besides India and China, Brazil is also in the race to come out from the global financial meltdown by the end of 2009.

Many firms in India have announced their plans to go for initial public offering (IPO) and JSW Energy is one such firm, which has plans to raise around Rs.2,700 cr through an initial public offering for their expansion plans in India. The company is part of JSW Group which is being run by Sajjan Jindal.

Sahara Group's real estate arm is also planning for a mega IPO in the next few months. Indian companies are now tapping non-banking sources to meet their funds requirements. EdServ Softsystems, Gemini Engi-Fab and Web 18 are among many other companies which have opted to go for initial public offering in the current year.

Many more such companies are now in line to raise capital through IPOs to support their future growth plans in Indian and overseas markets. As per an estimate, IPOs totaled around Rs.14,626 cr between April and October, while the amount was just Rs.1,515 cr in the corresponding period in the year of 2003.

The IPO markets in the above-mentioned nations are in a healing mode, while these markets in developed nations (US, Singapore, UK and Australia) are expected to show revival signs between Q1 of 2010 and Q2 of 2011.

However, investors are still picky about IPOs and don't expect market stabilization in the near future. It is to be noted that investors opt for riskier new offerings only when the markets are performing well. Besides this, the IPOs of small and mid cap firms won't do much good to the global capital markets. However, things have started changing for better and till the time the picture of IPO markets becomes rosy, let's hope for the best.

Loans for those baby steps in life

2009-11-27T00:20:00.000-08:00

Every person has dreams and aspirations of becoming something and rising out of their current existence and making a name for themselves in the world. Some want to do it through getting higher education and be professionally qualified for their dream high paying jobs. Others want to tough it out in the world on their own by trying their hands at entrepreneurship. They want to start their own business's and reduce their dependence on the system.

These are the needs which the modern age banks in India want to capitalize on. HDFC Personal Loans are especially suited for the needs of those blue eyed dreamers who want to make it big in the world but on their own. These loans can be used for their business expenses or better yet setting up the business or even for their personal expenses. HDFC Personal Loans are so easy and time efficient to get that they are used for investors in the stock market for whom fortunes can turn to dust and vice verso within a few hours.

There are others who want to make it big in the corporate world and prove themselves through established systems and platforms. Those who want the high paying jobs and all the conforts that come with it. HDFC Education Loans are just what one needs for that coveted MBA or studying abroad. The Indian middle class depends and trusts that education is what will take their children to the top and improve their standard of living but they do not have the required funds and thus they need credit and HDFC Education Loans come in to save the day.

Personal loans and education loans are very important in shaping a persons future and are what supports the initial steps on the ladder to success. Thus loans are instrumental in enabling a person to do what they could not have done if all they had to rely on was themselves. Thus personal loans fill up a special need of the common people and education loans does the same thing.

Credit cards taking the 'schemes' way

2009-11-02T03:31:00.000-08:00

One can say that credit crises in UK and US are the result of excess credit given to the people in country and credit cards have played an important role in this recession period.

The impact of credit crunch was also seen in India as many card issuers like ICICI Credit Cards, SBI Credit Cards and Standard Chartered were seen cutting on the credit limit of their customers.

However, the economy is India is coming on track as a lot of people are not interested in taking the plastic money route and getting the credit burden over them.

In this revival situation, the banking sector is again getting bullish over the credit card business and is ready to provide its customers with good rewards, big credit limit, discounts and offer vouchers for free air tickets.

With the motive of providing benefits to its customers through its new schemes American Express Credit Cards have come up with Indian Airlines American Express Credit Card which provides extra rewards to the customer and also offers free airline tickets with some terms and conditions.

ICICI Credit Cards also provide the same kind of facilities to card holder as it has formed alliance with British Airlines as well as Singapore Airlines. Its cards like ICICI Bank Singapore Airlines Visa Platinum Card and ICICI British Airways Credit Card are two products involved in the schemes business related to free air tickets.

Opt for a loan deal in rainy days

2009-10-13T02:26:00.000-07:00

There was a time, when availing a loan was as difficult as digesting 5 dozens of bananas. The scene has improved a lot after the entry of private and foreign banks, and now HDFC Bank is one of the many banks which is offering a wide range of loans to cater to the unique needs of its customers in India. Availing a bank loan has become as easy as saying one, two and three. Now-a-days, one can even apply for a loan online as well.

For meeting the personal needs like marriage expenses and home repairs, you can apply for a personal loan. Banks even don't ask for any collateral or guarantor. HDFC Bank is among the leading providers of loans in India and promises fast and easy loans without any hassle. Be it a dram vacation or daughter's wedding, HDFC personal loan is the perfect solution for all expenses. The procedure of applying for a personal loan is simple and the bank provides quick approval as well. Besides HDFC Bank, State Bank of India, ICICI Bank, Allahabad Bank and Axis Bank are the major providers of personal loans in India. Identity proofs, address proofs, bank statements and latest income slips are the documents which are generally required by the banks.

If you are craving for a new car, HDFC Bank is the place for you. With an HDFC car loan, you can turn your dream into reality and can pay-back the loan in easy monthly installments. The bank provides loans for both new and used cars at the best competitive interest rates and flexible repayment options. The bank is also providing education loans to the deserving students who have a dream of pursuing higher education.

There is no need to worry about financial assistance if you have applied for an HDFC education loan. No more running from pillar to post as these loans are easily available and come with tax benefits. The bank also provides loans for the short duration/job oriented courses.

So, if there are the rainy days, there are the bank loans which provide you with an umbrella of security. However, before signing up for a loan deal, make a fair market research beforehand to land on the best loan deal.

Are you health insured?

2009-10-08T04:28:00.000-07:00

As we all know “accidents can never be predicted” and “life is too precious to be lost in an accident”. We cannot stop accidents, but what we can do is minimise the aftereffects of the same, and here is where the health insurance comes into play. We all know that we don't need insurance till the life is sailing smoothly, but ask yourself one question, what is going to happen next? If there are good times, then there are hard times too. God forbid, but if some mishap occurs to you or your family, are you prepared enough to deal with such situations yourself?

Health Insurance comes as a boon in your hard times. It is not an option rather it is your responsibility for the ones you love and care. It just makes you self sufficient so that you don't have to stand begging in front of your relatives or friends. One such leading insurer in the market is Apollo. Apollo health Insurance available at reasonable prices and comes with state of the art facilities. The entity divided its insurance catalog into 2 vast categories like
Solutions for Individuals - which is further divided into 3 categories

1.Easy Health Insurance
2.Personal Accident insurance
3.Easy Travel Insurance

Solutions for Corporates – which is also divided into 3 categories

1.Easy Health Corporate
2.Group Personal Accident
3.Easy Travel corporate

All the health and wellness solutions provided by Apollo Health Insurance are customer oriented and promises to deliver the best in the lowest possible price. The insurer mainly emphasis on addressing curative needs to a preventive focus. Health insurance provided by the entity makes it stand tall in the market due to its differentiated features along with best in the industry benefits and service offerings.

Other major player in the market is ICICI which is giving a tough competition to its other counterparts. ICICI health insurance, which is also known as ICICI Lombard insurance is one of the leading health insurance provider in the country with its all new Mediclaim concept. Its wide range of catalog comes with distinct features with each plans offering something unique to best suit your requirements.

Banks wishing happy Diwali with cheaper home loans

2009-10-07T03:02:00.000-07:00

Well, the festive season is here and many sectors in Indian economy are bullish on this phase. It is obvious because most of us are ready to spend much more than our usual spending in this season but whats unusual this time is that banks are also making loan seekers happy with their cheap offers. Surely this is going to divert one's mind for a new home.

I think, the urge of making real estate sector reach the peak again has forced these banks to come up with such low rates for loans.

To my knowledge till now, many PSU banks like State Bank of India, Bank of Maharashtra, Canara Bank and Dena Bank are very much ready to offer cheap home loan offers to public.

Currently Dena Bank is offering home loans at the rate of 8% for the limit of Rs.30 lakh for initial 2 years. Similarly Canara Bank is also giving the home loans at same rate for same limit but the offer is only for the first year of the term.

However, the scheme offered by State Bank of India is little different. It is offering home loans at the rate of 8% for the term of first 5 years but up to the limit of Rs.5 lakh.

During this festive season, the banks are also providing its customers with the scheme which gives home loans to the customers for fixed-rate and subsequently link those loans to their prime lending rates after five years.

Icing on the cake between this scheme season is that some of these banks are not charging extra processing fee from the customers for their loans.

The banks are also out this festive season with some good schemes for availing the personal loans. Many of us wants our homes to get furnished before Diwali and I think these schemes totally favours this mentality.

Home Insurance: A neglected need

2009-09-23T02:34:00.000-07:00

When a person starts earning money, the first thing comes in mind is 'saving' and when he starts to save, the first thing comes in mind is 'home'. Today, an individual earns and saves a lot but still ends up owing a home with the burden of loan on his head.

With this kind of struggle for buying a home a person should respect and protect the home eagerly. But I don't think that in India we are so much caring about our hard earned income as the statistics shows that only 46 million out of total 230 million homes in India are insured, which means only 2%.

Today, the prices of homes are going high and high but home insurance subscribers are going down and there is no sign that the people of the country are getting aware about the benefits provided by this insurance.

In my view, the home insurance is very necessary because it protects us from some of most irritating expenses which can occur at any point of time like destruction of assets from natural calamities, weather, theft, burglary, terrorism etc.

I have studied that there are so many general insurance companies which are involved in home insurance business with different kind of schemes.

Some well known companies providing this service are Bajaj Allianz General Insurance Company, Reliance General Insurance, ICICI Lombard, Cholamandalam MS General Insurance Company.

Out of all these companies, one of the best schemes I have found is Reliance Home Insurance where the coverage for fire, earthquake, electrical and mechanical breakdown, burglary, theft and terrorism is provided.

I have also heard that Reliance Home Insurance is having an easy subscription process with fast claim payment services.

I have also searched about the ICICI Lombard home insurance scheme where the protection is also provided against the weather and natural calamities.

I think the home insurance policies are very beneficial, mostly today when we see a large bill in front of us if emergency construction is needed at our home.

The new bank for the new customer

2009-09-17T23:43:00.000-07:00

The world of business has changed from being run on the whims and fancies of the sellers and producers with now the business being run according to the requirements of the customer. The customer is the king and he is the God in the world of successful businessmen. Things have changed from the license raj and year long waiting lists to after sales service and 24 hour customer care services.

Banks have thus changed as well with time and with the changing customer needs. Banking has become a much more complicated procedure then it used to be The client has the choice of choosing which bank it would use for his financial services. The client is really the king and and the bank do whatever they can do to woo more customers to their side of the river bank. The bank with a difference is what every bank wants to be called and seen as in the market

Banks in the market are ready to kill to get that unique deal to sell their customers and try to capture as much market share in the market as they can. ABN AMRO Bank has launched a very sophisticated product in the market called the Van Gogh Preferred Banking solution which is specialized financial product meant only for the net worth individuals. The product is unique in the market even though most of the product is similar to stuff available in the market but the banks efforts in this product clearly show. All the required information taken from the client is taken and personalized services by ABN Amro Bank are given to the client. Every new happening in the market relevant to the client are promptly informed and special care is taken to keep the client in constant touch with the bank.

Another bank in the market fighting for a place in the specialized financial product segment is HDFC Bank which also offers various special privileges to their clients. They are very good at creating exclusivity by allowing certain products to be available to the current members of the bank. The bank also keeps in constant touch with their clients to keep them abreast of the latest happenings in their accounts. The relevant information is always shared by HDFC Banking with their clients.

Banks will always be offering something or the other but it depends on the customer to find the perfect scheme and avail every possible plus points which come with that product.

Apply & compare home loans in India in no time

2009-09-17T00:13:00.000-07:00

Getting a home loan is no more a difficult job. However, despite low interest rates and easy terms & conditions, loan products meant for housing purposes aren't that easy to avail provided you have a sound credit record to back up your loan plea.

With financing industry recovering from liquidity hassles, it is quite possible that improving sentiments might give way to better growth in authorities respective loan portfolio. Moreover, with the festive season nearing banks are trying to allocate more funds to their loan portfolios and are dedicating a significant part of their focus to updating their Online banking solutions.

Since, Online comparison model is one of the most sought-after feature available at any website dealing in finance. Regulatory authorities of respective banks are making sure that they incorporate this feature as early as possible. Since, they know with real estate properties price at all time low, it is quite understandable people are looking for a tool that could help them compare home loans in India.

That is not all even NRI home loans deal can also be compared the same way as you compare home loans in India.

The boost in the home loan portfolios is expected to bail-out the submerging real estate industry which hit the saturation point once, it prices of properties start hitting the zenith. Moreover, with lending rates bottoming out in the second quarter it is quite possible that getting NRI home loans in near future might become more easy.

Hence, just like you compare home loans in India, NRIs can also do the same with the home loan deal meant for them. The move has certainly brought about a change in the Indian economy with more and more NRIs now foraying in India with a view to invest in properties thus, accelerating the growth pace of our economy.

And now with NRI home loans, Indian settled abroad has got a medium to get in touch with their homeland.

Credit cards helping you add flavor to your life

2009-09-08T02:19:00.000-07:00

Certainly carrying a line of credit already against your name is much easier than carrying the cash with you all time. Safe and a sound financing alternative, credit cards give the option to their users to withdraw money up to the prescribed limit. The issuance authority charges a certain rate of interest from the user over the amount withdrew. The user on the other hand is asked to repay back the principal amount in addition to interest.

Be it ICICI Bank credit cards or the HSBC Bank credit cards, the plastic money substitute of hard cash is a blessing in disguise for frequent travelers, traders and people who spend money any time. The instrument maximizes the probability of any-time money with you which is secured by a PIN number.

However, not very long ago credit card business wasn't going great guns simply because a simpler and straight concept, debit card arrived in the market. Emergence of debit cards saw the submergence of credit cards, with former climbing the popularity charts at a rapid pace. The concept of credit card took beating because of high interest rate charges and more so because of the perception that the instrument is only meant for rich and affluent people only.

However, once global financial crisis surfaced, every possible financing instrument went into a tizzy including the concept of debit cards. Loss of one turned out to be a gain of other, this gave the chance to every credit card issuance authority to bounce back into the scene. What saw thereafter was a much refined version of the previous credit cards.

Many things went in favor of credit cards at that moment, the lapse of time, freshness of idea and much-improved version of it. For example-ICICI Bank credit cards portfolio inducted several rewards, value-adds and services in it. The result was encouraging.

In case of HSBC Bank credit cards, things weren't much different but not akin in precise sense. The bank reformed the entire portfolio and standardized the credit services offered under it. The bank also made the entire process more secured and advanced one thus, restoring the faith of their target customer base.

Now both ICICI Bank credit cards & HSBC Bank credit cards are rated as two of the best credit card solutions portfolios which are part of Indian banking domain.

Axis Bank : Another name for versatile credit option

2009-09-03T03:22:00.000-07:00

A leading financial institution in the country, Axis bank has obtained a special position in the Indian capital market. The former UTI Bank, focuses on lending and do not have any deleterious impact on asset quality, regarding risk factor. From the medium-term perspective, the bank is expecting to chart out a niche of itself in private banking. Axis Bank appears to follow a business-strategy, which hopes to be different from the approaches of ICICI Bank and HDFC Bank. Hence, this strategy has its positive impact over some of the segments such as retail business as well as in building credit-risk diversification. Despite concentrating over the wholesale corporate lending, bank has successfully maintained the quality of its loan portfolio.

Axis Bank is one of the renowned and most trusted name in the segment of credit cards and banking sector. It is able to extend the best credit card at low rates of interest to its esteemed clients. Axis bank credit card includes the high-utility cards like as Platinum, Corporate Platinum, Secured Platinum, Gold Plus, Gold, Corporate Gold, Secured Gold etc. With the good performing organization in the Indian banking sector, end users are likely to think to avail the credit card service, which provides the best choice in terms of interest rates. Axis bank credit card service is supported by the major feature of versatility and flexibility. The bank offers the Online-banking service, which is the much more easier way to visit the bank. The cards even cater the surplus benefits to its customers, if you pay back the amount on time.

Though, the Axis bank is even eyeing towards the new area business as on to non-life insurance biz. It is found to be an emerging player in the distribution game. With, complying the removal of the entry-load on mutual funds, is restricting towards the life-insurance policies.

How NRI's can own a home in their own country

2009-08-26T00:15:00.000-07:00

Foreign Exchange Regulatory Act, 1973 recognises NRI or Non Resident Indians as individuals who are allowed to own property in India. Every Indian bank has to follow certain guidelines to issue loans to Non Resident Indians. The proper definition of an NRI involves that the person should be holding a valid Indian document like an Indian Passport and who is currently staying abroad for work and finds employment abroad and for carrying business activities abroad and has every intention of not coming back is an NRI.

Now we know what a NRI is lets talk about home loan. There are many NRI who believe in investing in their own country or just to have a quiet corner in the world for vacations and holidays. Buying homes in India is expensive as you all may be knowing already. Even NRI's have to take loans to buy homes in India.

NRI Home Loans are issued out by many major banks in the country. The issue of Home Loans to NRI's are actually encouraged as this brings in Foreign Exchange and funds from outside the country. Every major bank in the country provides such loans and with minimum hassles for the customer. With the falling rates of loans in the country and property rates low as well due to recession this would be a very good time for investment in India.

Investment in a developing country especially one which is growing at such a sharp pace have the potential of bringing higher returns. NRI Home Loans will a perfect form of investment for the Indian at heart to buy a piece of his motherland. Land has always had great cultural importance in our culture and home loans can give the common NRI access to be a part of his country for always.

India real estate amid a flourishing economy

2009-08-18T04:50:00.000-07:00

It is the real estate sector in India, which has seen a tremendous growth in the last 10-15 years and has been one of the fastest growing sector in the country. Prices of properties touched new heights and realty firms such as Unitech, EMAAR MGF, DLF earned huge profits on the back of growing demand for homes. Government has also introduced favorable policies in terms of foreign direct investment (FDI) and this encouraged several other companies as well to enter the booming realty sector.

Cities such as Delhi, Mumbai, Chennai, Kokata, Hyderabad are on the priority list of the real estate developers and residential, health care and other commercial developments projects were planned and successfully completed by the companies. Realty firms has changed the face of the country with the introduction of the state-of-the-art infrastructure and world class housing projects. More and more of shopping malls, hotels, multiplexes and offices have come into the existence and completely charged up the lives of the people.

Real estate also opened new opportunities for the Indian banking industry and banks have started launching special home loan schemes for the people who wish to transform their dream of owning a home. State Bank of India has recently rolled out a new special home loan scheme, where the bank is offering the home loan at the cheapest rate of interest. In addition to SBI, ICICI Bank, HDFC Bank, Allahabad Bank are the other leading player in the banking field. Home insurance has been another popular product amid the people and as the name suggest, the plan offer you a protection shield against burglaries, theft, fire and other man-made and natural disasters.

While this is true that there has been a slump in the realty sector due to the economic recession, the sector is still expanding and so are the hopes of the people who are still in the search of a dream home.

Buy a home using a home loan

2009-08-14T03:03:00.000-07:00

Remember the days, when one used to wait for years, for transforming the dream of a home into reality. And still, the person had to compromise on a number of things, considering the rising prices of materials and labor. Things have changed and even the people, however the dream of owing a home has never changed. In the last decade, the Indian banking industry has seen a revolutionary change, and has introduced new and better loan products to cater to the needs of the individuals.

Banks which offer the best home loan If you happen to be a person who is in search of a best loan deal to buy a home, then State Bank of India has the solutions for you. The bank has recently rolled out some special schemes for a fixed period of time, and under these schemes, home loans are being provided at a lower rate of interest when compared to other loan products by its competitors. Apart from SBI, there are other banks as well which are providing the loan at reasonable rate of interests which include ICICI Bank, Allahabad Bank, Canara Bank and Union Bank of India.

Now, suppose with the loan, you buy a home, a home which you always craved for. But then, do not forget to opt for a shield to protect your dream home from the man-made and natural disasters, and this is where home insurance comes into the scene. It is the insurance policy that would be with you and work as a protection shield against theft, fire, earthquake and burglarizes. So, another important step for a happy home is to opt for a home insurance, and there are a number of insurance companies which offer you with special home insurance plans, which is in accordance of your unique needs. ICICI Lombard, Bajaj Allianz, HSBC are the insurance companies which are the leading players in the insurance sector. So, go ahead and buy your dream home, using a home loan.

SBI wants to be the No1

2009-08-11T02:45:00.000-07:00

The State Bank of India has now started to aggressively market themselves in home loan markets and intend to capture the top position in the very competitive business. The first step to cap the interest rates of the loans has given a massive stimulus to the real estate sector with limiting the interest rate on the average 5 year home loans at 8%. The loan amounts can be stretched up to 50 lakhs The 8 % interest rate is valid only for the first year of the loan and the loanee will be charged 8.5% in the following years.

With these new move the SBI Home Loans will be the cheapest in the market. The company has fixed the 8 % cap in the first year on all home loan products provided by it in the market. The banks Easy Home Loan Scheme now laso has a fixed rate of 8% for the first year and 9% for the following years.

The SBI in its plan to be the biggest player in the market has launched a three-month long “SBI My Home Campaign” starting from August 8 to capture the largest number customers in the forthcoming festival season. No processing fees will be charged by the bank on the home loans.

Under the State Bank of India Hi-Five Home Loan individuals can now borrow up to Rs 5 lakh at an interest rate of 8 per cent fixed which can be availed for a time frame of 5 years. After the completion of 5 years the customer can choose between a floating rate of 2.75 per cent below the State Bank Advance Rate (SBAR) and a fixed rate of 1.25 per cent below the SBAR . The loan can be extended by 5 years in this scheme The SBAR is the bank’s benchmark rate and currently stands at 12.25 %.

Home Loans worth 50 lakhs can after at the end of three years be payed at a floating rate of 2.75 per cent below the SBAR or at a fixed rate of 1.25 per cent below the SBAR. The loans can be extended to a time period of 25 years. The effective rate of interest for the entire time period of the loan cn be calculated to 8.71 %.

The SBI Home Loans are currently the cheapest in the market and the schemes that would be introduced during the festival season would be worth checking out. Even if the person already owns a home they can always use the funds for investment purposes as well

Stock market updates - letting you know the growth pace of economy

2009-07-30T02:52:00.000-07:00

A stock market is actually a public market where we can trade in the company stocks and derivatives at an agreed price decided by the particular company. The securities that we want to buy are first being traded and listed in the stock exchanges.

As per the records the size of the world stock market is extremely huge. It was estimated to be about $36.6 trillion US in the beginning of October 2008. On the other hand, the total world derivatives market has been estimated about $791 trillion face or nominal value. There are various stock exchanges through out the world like for example NASDAQ in USA, BSE in India, NIKKEI in Japan etc.

According to me the stock market is one of the most important sources for company to raise the money. Thus it is very important for us to stay updated every single minute from the movements in stock market. The update tells us whether the price of the shares are going up or not. The updates are actually an important key to the quick access for easy purchase and sale of securities.

The Sensex actually means Sensitivity Index. It is the index of the share prices that are being traded in the Bombay Stock Exchange(BSE). It has started its operations in 1st Jan, '86. It is comprised of 30 largest and most actively traded stocks of various sectors. Presently, the index is trading at 10 times increased levels from June1990.

In the same way, the Nifty is used as an indicator for all the main companies that are listed on National Stock Exchanges(NSE). We actually get the information about all the important companies whose shares are being traded on NSE or Nifty. Its main office is situated in Delhi.

Thus we can see that both the index ie BSE and NSE are important and reflects the growth of our Indian economy.

Stock Exchanges - money switches side every seconds

2009-07-17T04:51:00.000-07:00

Many people in this world uses the term Stock market in their daily discussion but don't know the actual meaning of it. So let me clarify the meaning for this term – its a public market which basically meant for trading of companies stock and derivatives at a standard price. There is no eligibility criteria of entering into the stock market, anybody can participate in it whether it is small stock investors or a large funded traders.

As it is one of the most significant sources for the companies to raise ample funds, it allows businesses to be publicly traded or raise additional capital. The exchange provides the liquidity which in turn helps investors to quickly and easily sell securities. But investing money is a crucial task and you have to be very alert while investing your money. If you are investing in the market through a broker, make sure that it should be registered with SEBI and the exchanges. Always take the contract notes within one day of transactions of the trades. It should be keep in mind that the low priced stocks which called as Penny stocks does not guarantee high returns. The purpose of a stock exchange is to help the exchange of securities between buyers and sellers.

At present, we are having two major stock exchanges in our country. Bombay Stock Exchange or the 'Sensex' is the oldest stock exchange in Asia and it is the first stock exchange in India which gained permanent recognition from the government of India under the Securities Contracts Regulation Act 1956. It also helped the growth of the Indian corporate sector. Sensex has an index of 30 stocks representing 12 major sectors.

'National Stock Exchange' is India's another prominent stock exchange leading stock exchange. Also known as 'nifty' it was set up with an aim to give a modern, fully automated screen-based trading system to the traders. It brought speed, efficiency, safety and market integrity. Nifty has played a catalytic role in reforming the Indian securities market in terms of micro structure, market practices and trading volumes. The market operates on state-of-art information technology enabled devices to provide an efficient and transparent trading, clearing and settlement mechanism. Also, stock market updates too are provided to these people through these channels.

Car Loans: The means to your dreams

2009-07-13T04:27:00.000-07:00

Most of the people prefer to type 'free car prices' on search engine to get the required results but that is not the case. A car can either be free at one time or can carry a price tag at the same time. There are many websites on the World Wide Web that claim to provide free car prices but as said before that is never a case. Every individual has to face various problems and balance various factors before taking the plunge and making the purchase.

The large number of options available in the market
The few but still confusing variants of the same model
Each member of the family has different likes and dislikes, a buyer has to take in account that
Every dealer offers different price, schemes, finance solutions and Insurance options
Various levels of after sale services provided by dealers
Availability of spare parts of the particular car and company
Company Image and brand value

After you do manage to use the free car prices service from some website you can also watch car videos on some other websites from where you can stream them easily. Car videos are an easy way to judge a car by its looks and its performance. There are many car videos which will actually be about taking test drives of various cars and then is followed by comments on their performance etc by experts. There are also certain columns and programs which are available online or on other types of popular media which can prove very useful to the common buyer. One can also read and see the reviews of various cars which are usually by their owners on Internet and other types of media such as radio, television etc.

After you have zeroed in which car to buy there are few other things that a person has to shift his focus on. The question now arises of the funding of this little project of yours. Car loans are fairly easy to take as the collateral will be your own car. The dealer themselves usually have some tie ups with a bank and you can get your car loan very easily. Once your car loan is finalized get all your papers in order and set up a meeting with your dealer or most dealers can come to you as well. After a few signatures one can call himself the proud owner of a brand new car and drive off into the sunset.

Time changes but photos remain same

2009-07-10T03:01:00.000-07:00

Photo is the most intuitive way to capture the long lasting impression in the mind of soul. Photo imitates reality. It expresses its meaning by its first view. Usually photo-gallery section is occupied by the celebrities, politicians, news, sport stars etc. which is no more a fact but still the charm of a photo-gallery is something that has caught the eyeballs of people in recent times. It is a most expressible manner to make anything understand to an individual. It comprises all sort of images and videos. As the first launched car or bike, could be viewed only through picture. 'Pictures builds dreams'. Images shapes your imaginations like residential house photos, car photos, luxury car pictures, motorcycle photos and photos of the freedom fighters which conventionally motivates an individual. With the happening of every new discovery, it triggers off curiosity in the minds of people to get a glimpse of it, know what it is and get to know the history behind it. Photo-gallery is a nice way to know these things why because, ' a picture never lies'. It makes thing more self explanatory.

Photo-gallery covers the film stars photos whether from Bollywood or Hollywood. Yes, all the mesmerising moments can now be with oneself in a single click. Likewise the online news section is even updated with the news in form of images and videos which are more eye catching to all viewers, with a short description generally written under it. Photos tell us 'who is who?'. It creates awareness in the minds of individuals. Images plays a crucial part at the time of any major discovery, any special event and even serve as archives to remember the past happenings. It is the best way to publicise any product in the eyes of customers. Now-a-days, photos are the most interactive way to grab any sort of attraction, whether it be a print media or digital (Internet and television) the event become more self explanatory by a first view only.

Internet Banking adds new dimension to the banking industry in India

2009-07-01T01:36:00.000-07:00

The Internet banking has, in a major way, changed the banking industry in India. Today, web is playing a more important role for retail financial services than for many other industries in the country. Under on-line banking, Internet is being used for delivery of banking products & services at the doorsteps of the customers.

With Internet banking, you can have 24x7 access to your accounts at any time and from any location which have brought a great relief for the customers. The benefits of on-line banking include: Improving customer access, increasing customer loyalty and satisfaction and lastly, but most importantly, new customer and reduction in customer attrition rate.

To survive in the market and at the same time maximise profits, banks in the country are going for the retail banking in a big way and banks such as State Bank of India, Canara Bank, ICICI Bank, Standard Charted Bank among others are examples which have come up with the on-line banking solutions for their customers. However, much is still to be done and achieved.

SBI Internet Banking---State Bank of India is offering SBI Online, a form of Internet Banking Service platform, which enables the customers access their accounts via the Internet and even transact and invest in the SBI Mutual Funds. It facilitates the personal and corporate banking services in a convenient and quicker way. Internet banking offers informations regarding the member's profile and other details as well such as Account Balance and Account Summary at any given point of time.

Canara Bank Internet Banking---The bank provides the Internet Banking Service for the customers of its Core Banking (CBS) Branches. The service is offered to both Retail and Corporate customers. Net-Banking Retail caters to the needs of the Retail Customers whereas Net-Banking Corporate is in line with the needs of Corporate Customers.

In addition to SBI Internet Banking and the Canara Bank Internet Banking, there are a number of other banks as well which are offering their customers with the on-line banking facility. In today's fast moving life style, on-line banking has become the most comfortable and quicker channel for the people to enjoy round the clock banking sitting in their comfort.

Best home loans deals in India

2009-06-17T03:35:00.000-07:00

For those of us not blessed with ancestral homes to call our own, building a dream home is both an ambition as well as a dream marked with extreme anxiety. With prices of all things sky-rocketing like never before, getting a home loan is the first stepping stone. But even a loan product demands attention and evaluation. Which bank should you opt for? Which loan will suit you the best? Make sure you answer each of these kind of prodding question well in advance, to avoid being disappointed later.

Two of the most popular home loans providers in the Indian finance segment are ICICI and HSBC banks.

ICICI is the uncrowned king of home loans when it comes to the masses. They have been doing it for years now and sustain their customer base with competitive interest rates and niche-based services. Not only do they provide home loans as low as INR 0.2 million but even the term can be up to a comfortable 20 years. How can you refuse a loan that offers you service at your doorstep and brings with it a free accident insurance policy? Here is a quickie list of some of the ICICI bank home loans lets you opt for:
Adjustable Rate
Fixed Rate
Smartfix
Part fixed & Part Floating Rate
Money Saver

On the other hand, HSBC home loans have also equipped themselves well enough to provide tough competition to ICICI. With their smart home loan deals, they can help you get the right amount just at the right time. The rates are variable and can be even changed from floating to fixed, with nothing extra for you to pay. Certainly, wonders never cease here. To sample a few, HSBC home loans provide you a 25 year tenure and even mortgaging services! They come to you according to the requirement:

Ready to move ins
Self construction
Against property
Renovation
Under construction

So go ahead, take your pick and let your dream home turn into a reality!

Insurance:Time to insure the unexpected development of life

2009-06-09T01:53:00.000-07:00

Living a very healthy and secure life is the most cherished dream of an individual
these days as he/she doesn't know about the outcome of the future events. So, trying to cover up the risk involved in the daily walk of life by opting for an insurance, is only the assurance one can give themselves and to his/her family members. Advance thinking is a must in today's time and to give your family a secured version of life is another must because no one knows when or how we will end. An old time proverb goes like this, 'precaution is better than cure'. So, Insurance is the perfect precaution that one can opt for to cover the damage that one expects to incur from any of the unexpected disaster in life. There are various types of insurance, such as life, general, car, medical and many more. Every specific aspect of your life be it tangible or intangible, can be covered and insured by opting for these services.

Life insurance is a policy that is bought from a life insurance company, which helps the beneficiary financially, in case if the buyer of the policy meets an untimely end. It is a contract between the policy buyer (you) and the insurer (the life insurance company), which assures a certain monetary compensation through payment of a sum of money in the event of the policy holder's death, or terminal or critical illness. All of these facilities could be availed by paying an amount named, premium. Life insurance policy helps you to cover the risk of dying early, and also manages the risk of retirement. It benefits you by providing financial assistance to your family in the event of your death and you can't say no to an income for you in non-earning years.

The human requirements are quite specific as is the requirement of the insurance. One's health problems are duly covered in a health insurance package. Have you ever thought, what if you meet an accident, if you succumbed to a serious illness, or discover you're pregnant and you need an immediate medical attention, what is the solution in these cases ?, health insurance. These days diseases and health problems have become inevitable for an individual to avoid, so covering for these health mishap should always be on priority in our wish list.
Life cannot be lived in a planned and designed way. But, by opting for insurance you can certainly cover up for some untoward developments of the future.

Stay updated, stay live with Live TV

2009-06-01T02:51:00.000-07:00

We can now see those days as the part of past when one had to apply for leave in his office to watch the live cricket match at his home although even then when one was not sure if he gets it or not. Yes, we can see those days as the past as our upcoming generation would not be suffering the same trauma of missing that live game again and again, that is religion for us. But now the solution is present with us, which is Live TV, through which one can watch the live television shows, matches and news on the PC through the broadband connection internet. If you search on the net for 'free live TV', you will get all kinds of news channel links, some sports channel links like IPL's official website etc and also the news channels like IBN7 LIVE TV or Energy News LIVE TV.
The concept of live TV is very beneficial for young generation as well as they satisfy the level of curiosity present in each one of us. One cannot only listen to the programs but can also watch it. Now the only drawback in this technology is that one has to reach to his/her PC or laptop in the office or at home to watch the live TV and I don't think that the present generation is patient enough to wait for so long. But this major problem is slowly getting solved, thanks to the advent of 3G technology which is arriving in your mobile and has magnified the viewing pleasure, many fold.
The young generation is not the only part of our society which is benefiting from the new technical storm but also the other age groups. It can also be seen that in the past some days as the link of free live TV has provided us the live and exclusive videos of election through IBN7 LIVE TV and also world business news through Energy News LIVE TV.

Shopcorn : The number one deals portal

2009-05-20T05:26:00.000-07:00

While I was searching through Google I came across a shopping website by the name Shopcorn India. It was a beautiful experience while going through this website as it has got all the essential ingredients that a shopping portal must have. It has plenty of deals in its deals box section which is essentially by the customers and for the customers. The best part is that this website has provided users with flexibility of putting up their favorite deals over the deal box for other customers to watch .If they find the deal meaningful , they can pick it otherwise they can kick it.By doing so the best deal moves above the rest and the users can get a view of the most promising deal.

There are also options available there if someone wants to challenge the deal by putting up his own deal of products that he may find over other websites. In this way, there are enormous deal challenges that can be stored there resulting in the best discounted price deal for the customers. The concept is a new one and extremely helpful too, as I have never came across such an interesting website as this before.

They have a travel section where one can find plenty of Airfares, hotel bookings and various travel related offers that are available at discounted rates. Besides, there are also hotel and accommodation deals in almost all parts of the world and the information regarding the booking and tariff amounts are all specified there. It's a nice way to plan holidays when everything is so near to you and that too with competitive rates.

The most interesting of all was the audio video chat which is being offered for free, now I can talk to anyone around the world and watch my friends through a web cam. I can keep in touch with my friends while shopping online. What a creative concept that is included over a shopping network where one can make his shopping a lot more interesting when friends are all around him while that person shops. Through chatting one can feel as if the other person is there with him while he places order .

Hats off to the internet technology which is coming up with such amazing websites, ideas and concepts that are specially designed to help shoppers in a more efficient way. What's more, there are also a wide number of connectivity options available in the market today. One of the latest ones I came across was the Tata Indicom Photon+ USB device, which has given me the most amazing speed ever. With such technological advancements, the world of online shopping in India is surely on a high.

Insurance policy – more than an investment plan

2009-05-14T21:53:00.000-07:00

'Insurance is the subject matter of solicitation, please read the offer document carefully before investing.'

This is one phrase that we have heard so many times on television, radio and have also read it many times in news paper ads and magazines. Well, we actually without even putting up an effort has conned by rote it to such an extent that we can repeat countless times and every time with more power, more enthusiasm and of course more speed. But how many people do understand the real meaning of such a big advertisement of an insurance policy before this small phrase comes into the picture.

This is not the only but one main reason of not getting insured and not letting your family insured also. The reason is that we don't want to listen to the person who helps us in identifying or recognising the importance of life insurance, health insurance, travel insurance or car insurance in our daily lives.

Ignoring such an important thing like insurance in our life is only because we take it as an another investment plan but not an insurance policy and keep our hands away from it by saying that we are not having spare money with us right now, or we will invest in some policy when we will have some cash in our hands.

I don't know how much time will it take us to understand that insurance is a necessity and not just another investment plan, which will help us in not only making money but also at the same time secure our future for the long term.

I think we should understand, know and should educate others also that life insurance is not a bad investment but a policy which awards benefit to our family when it is most needed while, health insurance is the policy which provides us with the much needed medical expenditure at the time when we fell short of money at the time of some health related emergency.

But keep in mind that you take help of the insurance agents only and that too of the desired company as they are very well versed with the complex details of different insurance policies, so that you could take a conscious decision. After all,

'Insurance is the subject matter of solicitation.'

Manage all your financial transactions at home with online banking

2009-05-04T03:11:00.000-07:00

People indulge themselves in many financial activities in order earn their livings. But, we cannot keep cash all the time at home. That is why we need some place where we can keep our money safe. Banks are serving best in order to accomplish this purpose. Due to this reason, banking has become one of the major parts of our lives.
Banking services facilitate us to keep our money safe in the saving accounts as well as they offer us many other services related to finance. These services are available to us easily and in more efficient way with online banking, that fascinated me a lot. This is a new type of banking, in which every financial transaction is performed through Internet.
I really get astonished to see that with the help of Internet banking, we have no need to visit banks at regular intervals. Most of the tasks related to financial transactions can be performed on computers, while sitting at home in casual clothes. You can manage your saving accounts entirely on the websites of your banks. The financial institutes provide you a login id. By logging in to your account, you can operate all the financial transactions. The money can be transferred instantly from one account to another with the help of online banking.
Moreover, you can apply for the cheque book, demand draft etc., without going to financial institutes. You just have to apply them online, and you will receive them at your home within 3-4 working days. Another aspect that impressed me a lot, is that I can see my entire bank statements on these website. This facility allows me to get updates about my bank balance any time.
A major banking feature, that is getting popular among people is fixed deposit. Under this scheme, you deposit some money in the banks. After a fixed interval, banks pay you some interest on the deposited money. It has also become a source of extra income for some people. Now, many banks are also offering the service to apply fixed deposit on the Internet.
I am pretty sure that online banking system is benefiting millions of people. Banks are offering more and more financial services to the people. It can be hoped that soon we shall find some more services that we have not imagined as yet.

Indian stock market updates building confidence in people

2009-04-22T23:56:00.000-07:00

As a stock market lover, I like to watch the updates on the Indian stock market regularly. It is one of the best ways to get extra income. The Sensex depends on the condition of the market as well as profit and loss of the market.

This is a bit difficult time for the stock exchange, as recession is going in the world market. This is the reason why the condition of stock market is not good. But, recently I opened a popular website to watch the Indian stock market updates and I really felt astonished after reading updates, that some companies are still using the optimist approach. The IT giant Wipro has shown some good results and this giant company has earned a good profit.

However, Sensex and Nifty are bit down today, but still many shares are showing profit and shares of Reliance and Infosys are up. The market is fluctuating today, but I believe that the future of market is very bright and hopes of the investors are coming back. It may take time, but it is for sure that the market will recover soon.

As per the stock market of some websites, the market opened from flat to marginally positive. Those who are worried about the stock market, I would suggest them to keep patience. It is for sure that we shall be able to get some good result in the coming time. Till then, they can invest their money in buying some good stocks which are available at low rates. The stock exchange will go up and it will hopefully give you good profit. If you believe in short term transactions, then you can have the good gain. There are many shares whose rates of which go up and down. You can buy the shares whose rates are low and sell them after increase in the rates. You can also take the advise of experts related to the stock market from various websites. There is no doubt in the fact that we will see some good stock results in the coming time.

Latest updates about the universe via CNBC awaz live TV and Fox new live TV

2009-04-14T02:15:00.000-07:00

I am sure, that it is very hard to find a person, who does not watch television. But sre you aware of the live TV? It is the online version of the television. But thi9s facility can be enjoyed on your computer screen on Internet. It may be surprising for many of you people, that likewise television, you can also watch a number of channels on the World Wide Web also.

As in television, these channels also consist of different themes. These may be entertainment, finance, spirituality etc. The news channels are gaining popularity among the people because of their informative nature. Some of the news channels are meant for some specific type of news. CNBC awaz live TV can be taken for the instance in the regard. This channel is meant for the business news. The main focus of this channel is on the stock market. You can see the latest rates of the stocks on this channel. Latest updates of the Sensex of BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) can be watched on this channel. Moreover, what is going on in the corporate sector, is the another main theme of this channel. It seems to be the online version of the CNBC TV, that is telecasted on the regular television.

Fox news live Tv is another channel, that is attracting the news lovers. This is a US based channel, that is meant for telecasting all type of news of United States as well as world. The website of this channel provides a lot of written material too. Both these channels come with excellent live streaming. You can view them in a hassle-free manner. Many organizations and individuals are launching many such channels like CNBC Awaz live TV and Fox news live TV. There is no doubt in this, that after some days, we shall find some more such informative channels. Let see, what comes next.

Be the owner of your 'sweet home' with home loan

2009-04-07T03:04:00.000-07:00

I think everybody will agree with me that property is one of the most important aspects in human lives. The importance of it can be judged with the matter of the fact that even it has become the cause of the quarrels for many people. Of course, fighting with each other is not good, but still this fact indicates the importance of the property. The property can be categorized in a number of types, such as land, house etc.

Each one of us knows that home is the most important thing of our lives. It is the place where we live. But, the problem is that many people are facing these days is the increase in the rates of the real estate in India. I think, lack of finance has become one of the big obstacles which comes in front of many people, if they think about buying new house. But, still it is that necessary aspect that cannot be avoided at any cost. That is the reason the home loan is considered as one of the useful options that helps people in this regard.

I have seen many of the private and public sector banks in India facilitate the people to provide these loans at easy interest rates. As per as I know, the interest rates of the public sector banks are lower as compared to the private banks. It can be availed very easily by filling some forms provided by the banks. But, the terms and conditions should always be read carefully, in order to know whether these suit to you or not. I have seen this facility of the websites of the banks also that have the facility to apply for the loans online. The home loan can be taken with ease these days, and you can repay it on easy installments. In some cases, the amount can also be deducted from your salary. It can be hoped that this will be proved a good option for you for your new

Banking Services – Your best financial partner

2009-03-24T01:52:00.000-07:00

Finance is one of the aspects that is supposed to be the most necessary aspect in this world. But, we need some source, that could help us in managing our finance. It is not always possible to keep all the cash at home and manage all its records at our own. Moreover, we need some credits in order, to make the payments. Making high payments may not be possible through hardcore cash.
Banking services act as one of the best companions to accomplish these services. These services help us in all our personal and business financial transactions. Saving account system is the most widely used system among the people. The reason behind this, is that it is used to keep your hard earned money safe. You can deposit your savings any time and withdraw it according to your requirements. Cheques can also be issued in order, to make payments wherever you want. These days, most of the banks have started the debit card system. With this system, you can withdraw money any time from the machine called ATM that stands for Automatic Teller Machine. Apart from this, many other services are being provided by the banks. For instance, you get annual or half-yearly interest on your deposited money.

But the banking services are not limited up to the saving accounts. Many more services for different purposes are also provided by the banking units. The Current account system is the system that is meant for opening an account of a financial, educational, religious or any type of organization or institution. Individual can also open these for business purposes. One basic difference between current and saving accounts is that, no interest is added to current account unlike the saving ones.

Apart from opening an account, many more services are being provided by the banks these days. Depository services, fixed deposits and many more are available on the banks these days. Day by day the banks are developing their services and are becoming the best companion of the people. I hope, that we shall find some more beneficial services in coming future too.

Secure the future of your family with a life insurance policy

2009-03-13T03:37:00.000-07:00

If you are worried about your life or you are worried regarding how to secure your family's future after your death then, I think a life insurance policy would be an ideal option for you, which would help you to secure your as well as your family's future. Though, we all know that death is the biggest truth which cannot be avoided, getting an insurance policy would surely help you to secure the future of your family even after your death.

However, I agree that with the passage of time, new twists are complimenting the society. It must be understood that various factors are actually contributing in this regard. But, the most important thing is that with the commencement of various companies the demand for getting a life insurance policy has also increased to manifolds. I think, now getting an insurance policy has become a very sensitive issue, as most of the people still have confusion regarding the whole concept of insurance policies. As a matter of fact, one needs to be very careful while opting an insurance policy.

Now, if you are planning to take an insurance policy, then you need to decide what type of policy you actually want to opt for and which policy would truly meet all your requirements. Basically, there are two types of life insurance policies available, such as temporary insurance and permanent insurance.

Furthermore, there is an old saying, 'if wealth is lost nothing is lost, but if health is lost every thing is lost'. So, when it comes to your health you can't compromise with it so getting a health insurance can also be referred to as the perfect option these days. Though it is also a very sensitive issue but this type of policy secures you from unexpected medical expenses. This type of insurance policy includes a list of package of medical benefits which includes tests, drugs, treatment and hospitalization services. This type of policy is not covered in a life insurance policy. Getting a life insurance and health insurance is also not a cake walk. It requires lots of research, in order, to opt for a suitable policy. For this, one has to search various options related to insurance policies before they actually go for selecting a policy.

ICICI Bank : Perfectly catering the needs of all the customers

2009-02-27T01:34:00.000-08:00

As a financial expert, I have seen many ups and downs in the economy of our country. I have seen the development of several banks, but one bank, whose progress inspired me the most, is the ICICI Bank. In terms of market capitalization, it is India's one of the largest private sector banks and is standing on a superior position in terms of assets. This bank offers a wide range of banking products and financial services and its strong hold can be found in the areas of investment banking, life and non-life insurance, venture capital and asset management. Let me give you a brief information on its history, in the year of 1955, the Industrial Credit and Investment Corporation of India Limited (ICICI) was founded as a result of initiation taken by World Bank, the Government of India and representatives of Indian industry.

ICICI bank specialises in personal banking, NRI banking and business banking. As per as I know, its area of expertise include deposits, loans, investments and insurance in the personal banking area. Money banking, bank accounts, property solutions and many other facilities can be found under NRI banking facilities. Cash management, trade services, online taxes and many more can be found under business banking services. I have found that many users have benefited a lot from this bank, as this bank has also made a tremendous leaps in Internet banking and mobile banking. Over the years, the customers of this bank have increased by leaps and bounds and this clearly depicts the faith that people have on this bank.

As one of the largest credit-cards issuer, the reputation of ICICI bank credit cards is praise-worthy. The diverse range of credit cards include credit, debit and prepaid cards and they are widely accepted both in India and abroad. I can tell you that you may find many interesting offers like low interest rates, rewards programs, and a high credit and cash limit while availing them. One can find travel, commercial, debit, corporate, business and many other cards to suit one's distinct transactional needs.

This bank's excellent user friendly website gives you all the information about services offered by the bank and you can buy insurance, view and pay bills, view your credit card statement through online. Thus, by looking its ever increasing growth, graph and customers, I can say that ICICI Bank has proved itself as an excellent bank by its non-ending efforts in providing services to its customers.

Use software for easy filing of returns

2009-02-13T03:53:00.000-08:00

According to the I.T Act, 1961 the filing of income tax return is mandatory for all those whose previous year net income was more than the maximum nonchargeable amount of income tax. The return should be filed by every person who holds a credit card, owner of motor vehicle, has a property exceeding a particular size and has joined a club which charges more than Rs 25,000 as its entrance fees. For the year 2008, government has increased the exemption limit to Rs. 1.5 lakhs from Rs 1.10 lakhs for men. The women should be more happy as Indian government has made the exemption limit from Rs. 145,000 to Rs 180,000. The senior citizens will be relieved as their exemption limit is Rs 2,25,000.

In this age of digital advancement and Internet medium, online income tax filing is also possible by which one can make income tax payments through Internet with the help of banking facilities. There are incredible advantages of online tax filing. You can pay your taxes at anytime from any location. The transfer of funds from your account can be done instantly. You will get the receipt after your payment is authorised by the bank. To avail the facility of filing the income tax through Internet you need a computer having an Internet connection. You should have a bank account with the net banking facility. I will suggest you to have a separate account to file the income tax through net.

You can even use software which will make the filing of return easier for you. We tend to look the date 15 April with horror. But now there is no need to be worried. The availability of software will help you in the process of online return filing. You need certain documents for it. Your income documents, statements from bank regarding any interest you received, investment earnings and your last year state tax refund are the required documents.

I am able to file my income tax returns on time with the help of advanced software and I am sure you will also find online income tax filing quite satisfying.

Save extra penny to your wallet by availing personal loan at low rate of interest

2009-02-09T01:31:00.000-08:00

While thinking of a personal loan, the main affair should be that the loan is not an affliction. One should make sure that the loan can be paid back in a comfortable manner, so that it does not drain out his limited finances. Keeping these heeds in mind, lenders offer affordable personal loan interest rate.

Now, one can borrow any amount at low rate for any personal purpose, like home improvements, clearing past debts, buying any vehicle, for wedding or for holidaying purpose. Low personal loan interest rate can be easily availed, when one puts his asset as collateral against the loan. This way one will be able to cut any risks for the lenders, who in turn ensure loans with low rate of interest. Another possible method to reduce the rate of interest in personal loan is that one should borrow an amount which is lesser than the value of the property offered as security, as this offers more security of the loan to the lender.

The personal loan interest rate is ideal for those applicants, who have an excellent credit history. Lenders mainly rely upon such borrowers as there is less risk involved and so because of this trust, the lenders do not hesitate to reduce the rate of interest on a further scale. It would be wise to compare current loan rates and should analyze the lenders for seeing who is offering personal loans at the desired rate of interest. You should first of all research on the rate quotes so that you can site all the potential lenders. You should also go through the terms and conditions of such lenders and match it with your personal circumstances. By making compare current loan rates, you can this way easily come across a lender who has low interest rate personal loan. Online lenders are best suited lenders for low interest rate personal loan. They always have offer loans at low rates of interest. Also the client is not charged with any fee by the online brokers for processing loan application or for assisting him in making a suitable deal.

The New Financial Year Means Once Again You Should Be ready With Tax Savings Measures

2009-01-27T23:48:00.000-08:00

For years, Indians have been complaining for the high amount of tax payments they have to pay every year. The new financial year has already geared up and now you often see the advertisements of income tax in India on various national newspapers. The Indian financial market has to travel through the path of recession. Many private and government employees are raising their voice high, as they cannot bear the high income tax in India. The last year has not satisfied any employee as there was no delightful increment in their salary. Many private employers have stopped giving hefty yearly bonus. However, no one can betray the government rules of tax payment. Whether you get good pay or not you are bound to pay the due income tax if your income is under the taxation table.

There are various measures which are being taken by people before the new financial year comes. I have taken up some investment plans according to my earning. I have also applied for a new insurance plan. As I stay in a rented house, so this is what I can also mention in filling up the income tax application. One should not take it lightly that only a mere amount of money would be deducted from his yearly income. There is a set of individuals in our society who consider income tax return as a trivial matter and later on they have to repent as they have to suffer from the massive deduction. The more money you earn the more tax payment you will have to make. Never let your hard earned money go in vain. Protect it with the best insurance and investment plans. If you do not have the sufficient knowledge in taxation then you should get in touch with a tax consultant who can guide you on how to deal with income tax return.

With Credit Cards Plan For An Exotic Summer Vacation And Book Travel Tickets In Advance

2009-01-14T23:34:00.000-08:00

Soon the summer seasons of the new year 2009 would come to us. Of course, a few people would hate the scorching Sun but there are many other joyful activities that we can do. When the summer months would be on the peak then the office goers would surely take leaves so that they can take their wives and children for exotic vacations. However, the meltdown of the global economy is affecting everybody's life. In such a scenario, the usage of credit cards is of great help. Most of the banks in India are cutting down interest rates on various credit cards. SBI credit card is one of them. This measure is taken in order to assist the card holders to buy their necessary items at the cheapest price possible.

On the other hand, many travel companies are also offering huge discounts in their early bookings for some of the popular holiday destinations. I have also booked a couple of tickets for my family. As soon as the summer arrives we would go to Goa. The golden sea beaches, the grand hotels as well as the churches in Goa have always been known to all of us. Thanks to my credit cards which have helped me in booking an attractive travel package in advance. The discounts which I get are amazing. In the recent years, the usage of credit cards in India is increasing day by day. SBI credit cards can be used to find excellent discounts for booking advance travel packages in India and abroad.

When people are out on a vacation to new places it is not safe to keep much cash with them. Under such situations, credit cards really help people to spend money in shopping and buy gifts for themselves and their family members. So, it is better to pick up those travel packages which include all bookings for hotels, air tickets and sight seeing. The credit cards in India are providing all kinds of benefits necessary for booking attractive and discounted travel packages. Hence, set your summer plans in advance and enjoy the vacation with a blast.

Saving Account: A Safe Depository Of Ones Income

2008-12-16T02:01:00.000-08:00

A saving account is used for the purpose of maintaining funds with a depository institution. The saving account actually is a safe mean to maintain bank balance for a longer period of time. The account is accessible and people can withdraw money from it anytime. Banks and financial institutions that provide such a provision of a 'saving account' actually make a pledge to repay the amount deposited whenever asked for.

The interest offered with saving account is also substantially overwhelming. As the account is mostly opened by people who are interested in with a long term savings plan, so the benefits derived from it are incredible. The slow accumulation of money over a long period of time with the additional interests on the increasing amount leads to the possession of a good balance. So maintaining a saving account is very beneficial for people of all age groups. It is equally good for children (keeping their future in notice). So, a children saving account is opened by parents who really care for the future of their children. The bank balance maintained helps in the education of children so as to build a great career.

Information about the saving account can be gained from the Internet. The official websites of banks and financial institutions are a very good source for knowing the details about the saving account. A person can also learn about the Children's High Interest Rate Saving Accounts from the websites present on the Internet. People can also file an online application for opening a saving account. An account with a bank or a similar financial institution can be opened by providing requisite proof of identity and others documents. A savings account once opened is meant for a life long tenure. People can easily maintain the account without the fear of any corruption or loss of the deposited money.

State Bank of India's credit cards, bringing the most luxurious services to you

2008-12-04T20:42:00.000-08:00

The credit cards business in the past few months has certainly touched new pinnacles of success, especially in the Indian economy, which even after surviving the threats of possible recession, hasn't yet fully recuperated from the series of setbacks delivered by the bygone liquidity crisis. But despite having said that, it is the SBI credit card business that stood tall even in these rough times. Yes, the largest public sector bank in the entire Indian banking domain, SBI over the years has a habit of outsmarting its counterparts by a comprehensive margin in almost every quarter of the banking business operations and the popularity of their credit card product precisely goes out to show it.

Our Indian economy revolves around the nationalised banking module and the State Bank of India is a very vital element of this whole cycle that runs our economy. When liquidity crisis struck our economy recently, most of the private citizens of the banking sector succumbed to it, while others had a close shave with it. But State Bank of India unlike its other counterparts endured this storm with quite an ease and chiefly because of its credit card instrument, which helped it in recovering very fast, at the times when others were found wanting.

SBI credit cards business segment boasts of some 28 credit card products in total. These credit cards product cater to almost every kind of demand and encompass the every section of society. That's not all, SBI has specific credit cards for different geographical locations in India such as particular card for Bangalore, Hyderabad etc. The best part of these credit cards is that they offer a wide array of add-on benefits and an excellent rewards program to serve the cause of the buyer. If you want to cash on the benefits like flexipay, zero surcharge fuel waiver or want the e-statement Online then you can certainly look up to State Bank of India credit cards. Fetching your e-statement Online through this mode will also vouchsafe you to earn 250 rewards points. You can stretch the limit of points from 250 to 400, if and only if you disburse your bills through SBI's own bill payment service naming paynet. If you avail these plastic money offered by the SBI, you can even get services like balance transfers and others.

If you pay your utility bill through SBI credit cards, you can also win yourself, up to 2 percent of cashback. Even if you use balance transfer service, you can get a cash back of Rs. 100 through the SBI credit cards. Easy interest rate structure and swift disposal of the financial obligation is something for which SBI backed credit cards are known for. Overall, State Bank of India is one banking authority, in spite of being surrounded by the tense economic times, which is willing to extend the maximum benefits to the buyers of its sponsored credit cards. So, next time, if you have to meet an untimely financial obligation such as shopping bills, restaurant bills, hospitalisation expenditure or anything else, then trust State Bank of India credit cards. If they do not fit into your budget then you are free to try out other credit card products from ICICI bank, HSBC credit cards and others.

Insurance made easy to use with the internet

2008-11-09T20:58:00.000-08:00

Anyone would like to have an assured future with the assurance primarily being in the form of being financial. Hence, the person would and does like to go for a general insurance policy which gives him the assurance in the form of monetary coverage.

This coverage can be due to any type of situations arising in life and hence, many different types of insurances can be found today. The major ones and the most commonly known ones are mainly the life insurance, automobile or car insurance, travel insurance, medical insurance and home insurance. The benefits in the long run are quite fantastic and hence, it makes sense for anyone to take an insurance.

Earlier one had to go to insurance offices for applying for insurance policies and this endeavour was one which was quite a laborious one both on the mind as well as on the frame of the person. The regular visuals that one could see back then were long and slowly moving queues and short tempered employees who also were under immense work pressure due to the process of giving policies to each and every member of these queues.

These visuals are quite hard to see now with insurance applications being able to done in an online manner. This is possible with the advent of the feature of online banking which uses websites for carrying out most of the standard processes involved in banking with dealing out insurance being one of them. Apart from the banks the well known institutions in this field have also started to use the asset of being online. The applicant therefore, no longer needs to do all the things mentioned in the previous paragraph.

The websites of these establishments have detailed explanations about the insurance policies that they normally offer and also have tools which enable the process of insurance comparison to be a feasible one for the user. The person who is therefore, visiting one of these websites is normally able to use the features like insurance comparison tools and detailed explanations in order to select the best insurance policy for him. The general insurance policy is therefore an item which can be accessed without having to visit insurance offices.

Stay at home while opening an account in a bank

2008-11-06T20:32:00.000-08:00

Banking is one of the most essential services that an individual normally uses in his lifetime. Most of the processes which take place in essential banking services are probably ones which have the maximum level of usage for a person. There are many activities like opening an account, checking account balance and also applying for helping hands known as loans. Normally these require one to stand with patience and also with a smiling face in long queues, but the normal aspect has now become a simple one with the entry of net banking. The processes are now capable of being done quite effectively by being able to be conducted on banking websites.

The inclusion of online banking has bought major changes in the basic way banking processes are being done. The benefits are also evident in the form of increased performance and more advanced features being available now. Perhaps one of the best things that has taken place is the change in the status of information from being a rare entity to an easily accessible one now. One of the best examples are the type of loans that are being offered by most of the banks today. The information about most of these loans are given in a form which is quite simple to comprehend and also extremely easy to understand. The wealth of information now being available on websites has led to the elimination of many confusions and fears which were some of the main reasons for the apprehensive outlook of population in the past.

Therefore, these websites see lots of hits throughout the day and clear many types of confusions harboured by most of the borrowers. This has also led to a situation where the website of a particular bank has become the preferred option rather than going to the bank itself.

The world which has human beings sitting in their houses and conducting all their banking needs with the help of banking websites, is one which is slowly but gradually evolving and is one with lots of smiles becoming visible on lots of faces belonging to the satisfied borrowers of net banking.

Indian banks: A leap towards a bright future

2008-11-06T01:56:00.000-08:00

The banking system of India is one aspect of the Indian administration that has gone through a number of crests and troughs from the day of its evolution. It took a lot of time in gaining the faith of the people of India. After the unfortunate incident of the assassination of our former Prime Minister Mr. Rajiv Gandhi, the Indian financial system was in serious doldrums. Fortunately, the mist has lifted and now we have one of the world's best banking systems.

Reserving the credit to the Narasimha government and the then Prime Minister Mr. P.V. Narasimha Rao's strategies, we can now proudly say that the Indian banking sector has not only emerged hail and hearty from the tough times but has also regained the faith of the people of the country.

We have a comprehensive banking system which includes a number of services and facilities for the customers. There are numerous account types that not only keep the funds safe but also help them grow. So that the depositor gets back more than what he deposited. The introduction of online banking has made the sector take a leap towards a better and a modern way of functioning.

The fixed deposit scheme is for those who want to keep their funds safe for a certain period of time. The fixed deposit duration can be 6 months to 120 months. During this period the depositor can feel assured that his money is safe for his future. When the tenure expires or when the deposit matures, he gets his amount back with a generous interest amount added to it. The interest amount is added to the deposited money after every six month during the tenure. The fixed deposit scheme is more beneficial than the savings account as the rate of interest is relatively much higher than the latter.

As an additional benefit, the customer can avail up to 85% of the principle amount. In case of emergencies, the depositor always has an option to withdraw his deposit before the expiration of the tenure.

Hence, fixed deposit is a wonderful way by which we can retain our savings for a fixed period of time for some future use. The savings account also adds up interest to your money but the interest rate is considerably lower than the fixed deposit interest rate. Thus, the banking services in India are one of the several things we should be proud of.

The best way to make your money grow!

2008-11-03T01:08:00.000-08:00

Gone are the days when home lockers were used to keep the savings and deposits. Banks had hardly evolved and when they came into existence they were rarely trusted. People were ready to keep their funds in the lockers and take the worries of robbery and thefts, but depositing money in the banks was the last thing one could think of at that time. Thankfully we are into a complete new era today with fixed deposit interest rates.

The banking system took long to earn the faith of Indian population but eventually it has established a firm foothold. Today professionals, businessmen, housewives, pensioners, students and farmers have their accounts in the banks. The banking system has become so advanced and efficient that it seems to be the best and the only mode to keep your money safe.

But it is not a question of just keeping your money safe, it is about growing it. The banks not only relieve you of the tensions of the safety of your deposit but also add the interest amount to it. The fixed deposit schemes are widely availed throughout the country.

The fixed deposit schemes allow you to deposit your money for a stipulated period during which the money is kept with the bank. At the time of maturity of the deposit, that is when the duration of the fixed deposit scheme expires, the account holder gets the entire sum back with interest. The duration of the fixed deposit can vary from six months to 120 months. The interest is added once in six months during the fixed deposit period. As against the saving account, the fixed deposit schemes are much more gainful.

On the maturity of the fixed deposit, depositor gets the money in lump sum. This way his money remains safe and keeps on growing. Who wouldn't to avail such a lucrative scheme? The idea of growing your savings is definitely tempting.

The most important aspect in a fixed deposit is the interest rate as it decides how your funds will be growing. So before depositing your money analyse the fixed deposit interest rates of different banks to reach the best. The higher the rate of interest is the larger is the gain. So don't let your money stagnate. Let your funds multiply with the fixed deposit schemes.

Personal loans in India: Flexible and user-friendly

2008-10-22T00:23:00.000-07:00

In this modern era, we can find drastic changes in the expenditure pattern of the modern people in India. Because of the generation change, they want to spend more money on luxurious things. This is one of the main reasons that made more people in India to apply for the personal loans.

To fulfil all your desires and dreams of your personal life, there is no more than just saving money in this modern India as most of the Indian banks and money lending organisations are offering different types of personal loans. Now, Personal loans in India are very flexible and there is no need to face any complex issues for getting personal loans in India. The main purpose of applying for personal loan is just to avoid personal financial problems. Some years ago, It was very hard to get loans in India as the banks and money lenders used to follow very rigid rules and regulations for sanctioning loans. Due to globalisation, now all the banks have become customer-friendly and are helping the people to solve their financial problems. Most of the Indian banks like the State Bank of India, ICICI, HSBC and HDFC have extended their banking services to all the segments of the society and offering personal loans at very less interest rates to their customers.

With the advent of the Internet, now Indian people have the chance to find the lowest personal loan interest rates that are offered by the banks in India at one place. To save the valuable time of their customers, most of the banks are offering online banking services to their customers.

If anyone wants to take personal loan at a very reasonable interest rate, visiting related websites over the Internet is the best source to get right information. There, he can find all the details, facilities, schemes and different types of personal loan interest rates. One more best way to know the details of personal loans in India is the customers can make calls to the call centres of different banks to know the details of personal loans.

Getting business loans is not a difficult task these days!

2008-10-14T04:55:00.000-07:00

Business world involves stiff competition and to cope up with this competition, a business needs to be on its toes at all times else the chances of tasting success would suddenly go bleak.

Many existing and budding entrepreneurs fail to mould themselves with the changing times and prevailing market trends. This has led to the fall of many businesses, which have previously established a name for themselves. The regression environment of today has also led to a decline in interest that was previously displayed by foreign as well as domestic investors.

The Reserve Bank of India (RBI), which is the governing and regulating body of India, has taken some right steps in the direction by reducing the Cash reserve ratio (CRR) by 150 basis points. This has allowed the Indian banks to have more reserves for disbursal. Nowadays, the market is upbeat with low business loans and personal loan interest rates.

Some few years ago, the advent of Online medium had facilitated bright prospects of the Indian banking and financial sector by offering world-class customer services with the click of a mouse. Nowadays, loan borrowers are using the Online mode to apply for loans of all types. This has resulted in minimising paperwork and associated formalities. The recent resurgence of new enterprises and an upbeat mood with the investors as well as loan borrowers can be best credited to highly competitive and low business loans and personal loan interest rates. The borrowers have responded well to these market-boosting steps by giving their nod and the market is in no mood to get down by any means.

It would not be wrong to say that the loan market has expanded its horizons by offering budget-friendly business loans and personal loan interest rates.

The story of personal loans in India

2008-10-13T02:52:00.000-07:00

If we have a close look at the world of personal loans in India then we can easily identify the positive changes stimulating the Indian economy. Big names such as HDFC Bank, State Bank of India and Citibank etc. to name a few have tried their level best to make a niche for themselves.

A few years ago, the Indian personal loan market was not as up bright as it is in the present scenario. The attitudes of bankers have changed and with the customers opting for these loans to meet their immediate as well as planned financial expenses, the market is prospered now.

Almost all of the Indian banking and financial institutions have changed the way they used to bank. This much-awaited behaviour of these institutions have benefited the Indian loan borrowers, who can enjoy low Personal loan rates. The stage is all set for the economy to visualise and attain its desired objectives with the help of personal loans. India has been a motivating force behind stimulating many other nations, who have followed its growth chart and policies to attain similar growth. The unparalleled performance of economy can be felt by the very fact that the country has turned itself from a debtor to a creditor in the International loan markets.

The recent resurgence of personal loan segment has been mainly due to the introduction of economy welfare steps by the Indian government, with due recognition to the economic reforms introduced by the Narasimha government. What was initiated as a dream is now a reality within able reach. The predefined aims and objectives have now been attained and the economy has suddenly tasted "blood" to make a name for itself in the highly competitive loan market. The modern day prospective loan borrower can surely as sigh of relief with the personal loans in India.

Now proudly claim your personal things from the market

2008-10-10T04:12:00.000-07:00

Personal loans are very specific types of retail loan products given by various banks to fulfil the diverse and distinct needs of the loan takers. Both the secured and unsecured types of borrowings are provided by the banks and financial institutions to their customers.

These borrowing are available in different categories like consumer durable loans, personal computer loans, pension loans, marriage loans and festival loans. Also the personal loan interest rates vary from bank to bank, thus it is advisable to go for personal loan comparison.

Banks have devised very unique schemes to fulfil your consumer durable demands like refrigerators, washing machine, music system and many more. Especially during the festive season the seekers of such borrowings just line before the doors of the lending authorities because many 0% schemes are announced by the nationalised banks, which are the only providers of these financial products. Most of the nationalised banks can really help you in buying a consumer product in the range of Rs.10000 to Rs. 100000. Many banks offer up to 90 percent of the invoice value of the product purchased. This type of borrowing can be availed for a maximum period of 60 months.

Festival loans are cheaper coming at a discounted rate. As there is a big boost in the demand of various types of items during the festival season, several public and private banks give such finances. These borrowings are available between the range of Rs. 5000 to Rs. 50000 at very cheap rates of interest. These are generally available for a period of one year. During the festive season the rates of interest charged are lesser than those during the normal days. Most of the banks generally charge Rs. 100 as the processing fee.

Another type of personal loan called as marriage loans is becoming very popular these days. The maximum amount available under these category depends upon factors like security offered by the customer, the borrowers' repayment capacity, age etc. Normally the fixed rates of interests are opted by the takers.

To ensure the economic independence of the retired persons, banks offer pension loans to those falling below the age group of 70. Generally, the biggest amount available is about 7 to 10 times of the monthly income cheque. The repayment period, done through the equated monthly instalments, varies from 1 to 3 periods. The rate of interest depends upon the prime lending rate prevailing at the time. The customers are given the choice to opt for both the fixed and floating rate of interest.

Apart from this you can even go for personal computer loans to move ahead on the path of professional excellence. For buying computer hardware and software one can get loan up to Rs.100000. Sometimes the banks charge 2 percent extra on the prime lending rate on such credit.

Indian Banking sector getting things right by offering low current account interest rate

2008-10-07T03:37:00.001-07:00

As far as the Banking services in India are concerned, there is no doubt that the modern day banking customer is a satisfied one. With every banking sector constituent striving hard to please him, the choices at the disposal of the customers are simply endless.

Many existing and budding businesses have been making effective use of present day banking facilities such as current account etc. Many Indian banks such as the State Bank of India, Punjab National Bank, UTI and HDFC Bank etc. have tried hard, all over these last few years, to boost their prospects and create/maintain a brand name in the minds of the existing customers as well as prospective customers.

With low current account interest rate being the norm of Indian banking sector, the Indian economy is growing at a rapid rate. This has ensured stimulation of growth prospects to a considerable level besides reducing the difference between the haves and the have-nots.
In the earlier times, high current account interest rates were a major cause of concern for the existing and budding businesses and there was no real stimulation in the world of business besides the absence of customer-friendly banking operations. However, things have changed for the good now, with many businesses availing the services related to Current accounts. These accounts enable the banking customers to withdraw more than their present account balance, allowing them to meet sudden financial expenses without any hassles of any kind.

With low current account interest rates getting in the "veins" of the Indian market for the delight of investors, entrepreneurs and economy, the revival of hopes is now made easy, thanks to favourable government policies, rules and regulations governing the banking sector. The future, being expected to be bright as the present, surely holds more good for the banking customers and overall economy prospects.

Credit cards: Exceptional Medium of money

2008-10-05T21:59:00.001-07:00

The term credit card is likely to mean different things for different persons, however everyone can be quite sure about the fact that a credit card is a very useful tool. The Indian financial scenario over the years has seen many changes and has also witnessed many myriad effects from global as well as national financial factors. However the situation today sees India as being a country which is gradually donning on the robe of a superpower both in economical as well as financial terms. Hence the urban population now bears a high standard of living due to increase in earnings and spendings. Money has become an important commodity and a credit card is now one of the most frequently used devices for the utilisation of money according to the needs of the person.

Credit cards are now the need of the second rather than the hour and hence are being provided by most of the nationalised banks as well as foreign banks. Hence the user who can take Master Card, Amex or a Visa type of a credit card. One can reap all the benefits of this simple instrument and also need not carry a fat money purse. International acceptance of these cards is now a regular phenomenon and hence the Indian customer can use them to shop in fantastic shopping malls in Dubai and have dinner at the Hilton. Credit Card Interest Rates are also quite affordable and hence do not pose any major problem for the common earner. The human being who takes this wonderful new medium is also able to get many vivid types of offers along with the card and all of these offers are quite useful. Most of the Credit Card Interest Rates that are now becoming one of the less disturbing element are also being given along with cards which belong to strong brands like SBI, Bank of Baroda and many more. The overall perception about a credit card is now changing. With the increase in the total number of people who are using credit cards, this field has now become a profitable business domain.

Current account: The best way to manage your funds

2008-10-03T22:09:00.000-07:00

The year 1991 witnessed a facelift of Indian economy on a mammoth scale. Thanks to the then Prime Minister P.V. Narasimha Rao, who is still remembered as the architect of Indian economy besides the pioneer in introducing economic reforms. The alterations which he introduced in banking and finance sectors, particularly the free market reforms, brought the nearly bankrupt nation and a stagnated economy back into the flow. Today, we can hold our heads high as we have one of the world's best economies and the most adept banking systems.

The banking system in India was on a verge of collapse just after assassination of the former Prime Minister Rajiv Gandhi and the country was under a huge impending debt. The common man had lost faith in the banks and it seemed practically impossible to convince the public to support the new ideas and philosophies introduced to get the losing battle again in hands. But on account of the perpetual endeavours under the guidance of Mr. Rao, the country emerged out of this doom hale and hearty.

Toady, we have an extensive banking system which gives immense gratification to the customers with the security and growth of their funds. People have a wide array of choices and perhaps due to the cut throat competition, they get the best “customer” treatments everywhere. The banking sector is on a progressive path and is earning huge profits. The common man now feels assured that his money is in safe hands and will certainly get its worth.

The private enterprises and corporate firm now heave a sigh of relief as they find themselves reaping perpetual benefits with the aid of the current account banking system. The daily large scale transactions are most easily managed by the current accounts. They are not meant for savings or for earning interest but only for the ease of transactions. This is the age when money doesn't change hands, instead bank accounts are changed!

Most of the banks offer the current account facility to an enterprise enterprises which carries out numerous and heavy transactions on a daily basis, two or more entrepreneurs in their joint names, partnership firms, sole proprietorship concerns, trusts, local authorities, government and semi-government bodies, Hindu Undivided families etc. There are scores of current account schemes each offering different features and benefits. The customer has a wide range options to choose from. Some of the features which are highlighted in a current account are competitive current account interest rates, savings accounts and preferential offers on loans.

The Axis Bank, ICICI, HDFC, SBI, Canara Bank etc. offer the most gainful current account schemes and have their branches scattered throughout the country. Availing these services can help a customer and an entrepreneur get the most out of his money.

Property against loan corroborates bad credits

2008-10-02T22:09:00.000-07:00

You are right if you think that it is wise to secure an asset against the loan sought if you are in a position to do so. Seeking loans against asset naturally gives an advantage to bargain to the potential borrowers.

The loans against property would give you the opportunity to negotiate for a better loan deal. As such, there are chances of getting a flexible repayment period, higher amount of loan, lower rate of interest and different repayment options.

As you are a home-owner and in immediate need of a loan, you may pledge your home as a security. This way, you may procure the sought amount easily. The financing companies also feel safe to sanction loans against home since in case the borrower fails to pay of the loan borrowed, the lender can legitimately recover the debt from the home secured. This way the lenders can compensate the loss and that's why the security.

Such loans against property can be utilised to purchase a car, improve one's home, purchase a new home, for education, debt consolidation and many other purposes.

You would hardly come across any financial company who would refuse to offer loans against home. However, it may take time for the loan to reach your hand as the lender may take some time in evaluating the market value of the property or home secured against the loan sought. It is only after assessing the market value of the asset, the loans against property are generally firmed up. If the market value of the property is higher, you are likely to get a relatively higher amount of loan and if the market value is low you are to end up with a lower amount of loan.

Potential borrowers with bad credit need not worry any longer for loans against property since such loans are available for poor credit as well. Gone are the days when the lenders felt unsecured to sanction loans to borrowers with a bad credit. Today, you can find a large number of financial companies competing among the peers to offer such loans tailored for bad credit.

Loan availability has no more the horror side

2008-09-25T01:48:00.000-07:00

Not so long are the days, when Bollywood had a Munshi and a money lender in most of its flicks. The out-of-the-box exploitation pattern, the plight of the borrower after selling his everything to pay a meagre amount, the compounding interest with compounding sorrows- still all these scenes from those immortal movies shake the conscience of the modern man. Go through the life history of most of the famous personalities after the fifties, you will get an idea regarding the painstaking moments they had undergone when they needed money for studies and the local money lender was the only ray of hope.

The horror shows are now more the rules in the Indian banking arena with the introduction of liberalisation, globalisation and neck to neck competition. Personal loans India are now available with the least hassle. These loans are literally available for all legal correct purpose- from home renovation to holidaying. So, is easy to grab them. Now, all most all public and private sector banks offer personal loans India at competitive rate of interest. The entry of foreign banks has also made the documentation process easier. If salaried or can show the proof of a steady flow of income, personal loans India are now few clicks away.

Personal loan interest rate differs from lender to lender and loan plan to plan. If the borrower has a sound repayment capability, flawless past credit behaviour and steady month of income, the personal loan interest rate is generally lower. To qualify for these loans, the borrowers do not have to pledge anything as security. They are unsecured in nature and the repayment capability of the borrower is greatest guarantee for the lenders. The non requirement of any type of security also makes the loan approval and processing fast. There is no need to evaluate the pledged security and sanction the loan amount accordingly. So, hassle free processing, faster approval and reasonable amount of money are making the personal loans India a wise choice for Indians to make their needs fulfilled.

The Indian banking - Customer getting recognition and friendly services at last

2008-09-22T00:03:00.001-07:00

In the context of Indian banking and financial sector, there have been many changes since the last few decades. With the introduction of online banking by many eminent banks and financial institutions, there has been an unprecedented change when one compares it with the market a decade ago.

With many eminent banks such as ICICI Bank, State Bank of India, Punjab National Bank and Standard Chartered stressing on customer satisfaction, the customer of today has many reasons to smile and bank.

When online banking was introduced a few years ago, customers have little information on how to make the best use of it. But, times have changed and so has the attitude of bankers and financial institutions. The greatest beneficiary of these changed attitude and scenario is the customer who avails the banking and financial services. With banking concepts such as net banking, the customer of today is in a better mood to make the best choices for himself, without compromising on the quality of services by the banking and financial service providers.

It will not be wrong to say that online banking has reduced the tasks of bankers as well as the customers. It has also opened up the floodgates of success and prosperity for the Indian economy. The resurgence of Indian financial sector has given the much-needed boost to the prospects of the nation and has been a deciding and influential factor when it comes to generation of employment to a considerable extent.

Thus, to conclude one can easily say that net banking has transformed the Indian economy to a great extent and has suppressed all doubts of the investors and customers with regard to growth prospects and economic prosperity. The market is surely upbeat with these prevailing trends and with the same likely to continue in the coming future, the Indian economy and customer are all smiling.

Creating a business saga with a business loan

2008-09-19T03:28:00.000-07:00

The desire of starting a business and excelling in it resides in perhaps the mind of every talented entrepreneur. However circumstances sometimes makes this desire into a dream which is perhaps never realised. The primary reason becomes the capital needed and this capital becomes the stumbling block in every talented dream. The situation now is perhaps less bleaker than its earlier form when a loan was an entity not known to too many individuals. The boost in economy and the rise in the number of persons who now can afford to live a decent life, has led to the emergence of the desires put forward in the starting of this thought becoming achievable. The major institutions who deserve the appreciation are the banks which have started providing loans for the purpose of starting a new business. Hence business loans are now prevalent in almost all of the major banks which are operating in India and the person who wants to start a business is given a wide array of choices which were not present earlier. There have been loans which are given by banks as 'business loans' with EMI amounts and interest rates fixed as per the standard business scheme. Hence banks such as the Bank of Baroda and ICICI bank give business loans with proper interest rates. The ROI may seem to be a bit higher compared to personal loan interest rates, but it has to be understood that a personal loan is being taken for a personal purpose and a business loan is for various business purposes. Hence the burden for the business is actually not unmanageable. The eligibility is not a problem as the age band for taking the loan is quite big and also the documents required are not that much. All the person needs to have is either a PAN card or a voter's card, a passport or even a driving license as an identity proof, a residence proof as well as a signature proof and also an income proof. The income proof can be a bank statement for the last three months and the account should be in a state of being used quite often. There should also be an ITR and also a proof of turnover. These are the basic things required and there are also many other associated documents and the user can visit websites of banks as well as financial institutions to get a exhaustive amount of information about a business loan.

Saving accounts and fixed deposits: Two critical branches of banking

2008-09-15T03:19:00.000-07:00

In the Indian banking sector of today, much has been said and done. But, this has not deterred the customers in any way. More and more customers are these days availing the banking services without any second thoughts to get closer to world-class banking facilities.

Many banking customers are availing the services of saving accounts and fixed deposits with the resurgence of Indian economy and particularly, the banking sector. The facilities associated with saving accounts and fixed deposits have helped the customers in a significant manner. The modern day
banking customer does not want to receive sub-standard products and services and this is where the changed attitude of banks has come into the picture.

Gone are the times when the banks and financial institutions were trying unethical and unprofessional ways when it came to catering the needs of their customers. Nowadays, the same banks have changed their approach and have moulded their policies and schemes to bring a smile or two on the faces of their customers. This is indeed a positive step, encouraging the customers as well as the economy to strive ahead in the race of economic development and prosperity.

Some of the most trusted and respectable names in the world of Indian banking such as the State Bank of India, Punjab National Bank, ICICI and HDFC to name a few have changed themselves in such a manner that no existing customer of theirs want to back out or complain about their products and services. This is indeed a great time for the Indian banking sector and with more banks and financial institutions such as Barclays coming into the banking arena, there cannot be anything doubting the real calibre of Indian banking sector. The positively changed attitude and policies of the Indian government have also stimulated the growth and prosperity of the banking sector to a considerable extent.

One can easily say that with the positive prevailing trends in the market, there are enough prospects for the Indian as well as other banks to get acclaims from the customer community in lieu of their offered products and services related to saving accounts and fixed deposits.

Court rules in favour of credit card holders : 30% the maximum interest rate chargeable

2008-07-15T02:55:00.000-07:00

Recently, the National Consumer Disputes Redressal Commission has ordered all credit card providers to reduce the interest chargeable for credit cards to be less than 30% in case of late payment of the amount due or non-payment of the minimum amount due, pointing out the same as an 'unfair trade practice'. This is certainly a very prolific step towards ensuring that service providers do not harass consumers by providing services on one side, and not allowing the latter to utilise them properly and end up paying more than what they were supposed to. Up until now, banks used to charge heavy interest rates, way above 30%, in case of delayed payments (36 to 49 percent, to be precise). Consumers, although irate, did not have any option, since this trend was being followed by every credit card provider and had become a kind of an industry norm. With this very bold and righteous initiative by the NCDRC, consumers can at least breathe a sigh of relief, with many more stipulations being imposed upon them by the body. From now on, penal interest would only be charged once per period of default, and charging compound interest rates on a per month basis is also not allowed from now on.

While this move has come as a strict knockout blow for many, consumers are definitely not complaining. Although there is still a wide gap between the interest rate charged in developed countries like the US, where the penal interest rate is 13 percent, barely one-third of what is being charged in India, one has to agree that the Indian economy is not yet at the same level with the former. Yet, this by no means justifies the kind of exorbitant rates charged by the banks. In an official statement by the court, “In our view, there is no justifiable ground for adopting the highest rate of interest prevailing in smaller economies. Further, there is no justifiable ground in not even attempting to follow what is prevailing in developed countries,”(source : The Economic Times)

In my view, what this clearly implies is that it would now be very difficult for banks to charge any kind of extra charges in terms of maintenance, annual fees and other overheads, since they have now come under the scanner of the NCDRC, and the consumer court would now most probably be monitoring even the smallest of fluctuations in the interest rates being charged. The court has also blamed the RBI for not doing what it is supposed to do, i.e., keep a check on the financial scenario of the country. Another important fact to be brought into the picture is that the Indian credit card industry is having 26 million cards presently and is expected to touch 55 million by 2010-11. Hence, it was imperative that some kind of measure be brought into place for the regulation of the practices of this particular industry. While this in itself is a bold step, I seriously believe that some kind of a regulatory body is most essential for credit cards, much like what the SEBI is to the Sensex, so that any kind of malpractice is prevented.

Inflation hits small savings schemes

2008-07-09T02:53:00.000-07:00

It seems like inflation is going to hit the lower middle class in the country in more ways than one. According to the latest data, fresh mobilisations through small savings schemes have dipped in FY 2007-08 from Rs. 1,54,836 crore to Rs. 1,26,629, a fall of 18%. Many perceive this to be a result of thr RBI's decision to further hike interest rates in line with the government's constant initiatives to curb inflation and boost up the country's crumbling economy.

The dip is being observed in almost all such schemes, including monthly income schemes, National savings certificates, Kisan Vikas Patra, etc. To further complicate the situation, there is always the issue of how bad is this actually going to get with inflation also playing a significant role in deciding the actual returns these investment instruments would yield. Currently, with the inflation rate crossing 11%, and the actual rate of return estimated to be somewhere around 8 %, which actually takes it 3% in negative, hence explaining the lag in investment of the same. Further, with so much awareness being created about mutual funds being a wise investment, apart form saving taxes, monthly investment schemes have been hit really bad. When one takes a look back at things from the finance ministry's end, they had reintroduced the bonus scheme for MIS in order to incentivise the same, but even that did not help in any manner.

While there has been observed a significant increase in the returns from fixed deposits at banks, replicating such a move in terms of small savings schemes is going to be a tough nut to crack, since the rates applicable for the latter are the ones that are fixed by the government themselves. While banks are free to increase their interest rates to give better returns to depositors, government controlled agencies do not have the same liberty. Banks have on record increased their rates by more than 300 bps in the last four years. During the same period, returns on small savings has remained stagnant at 8%, and since mid-May, inflation has crossed the 8% mark, hence negating any possibility of a positive return.

While enough has been said about inflation and everything associated with it, this is perhaps the hardest it could have hit the lower economic strata of the Indian society. After bearing the brunt of rising commodity prices, they now also have to deal with reduced savings options. This situation might be even worse than it seems, since now small scale investors would have to resort to investing in other options where the risk profile is not exactly their cup of tea, but nonetheless required since there is no other option. Such a step would easily prove to be the undoing for many, and the government really has to adress this issue with utmost concern. Probably a revision of its earlier fixed rates and the introduction of some instruments which are liable to change their return rates in accordance with inflation, much like the case is for those who have taken a loan under the floating rate scheme, would be advisable.

Stock markets : weekly round-up

2008-07-01T04:12:00.000-07:00

With the RBI's announcement regarding the hike of the repo rate as well as the CRR ratio, it came as little surprise that the Sensex turned even more volatile in the previous week, and is currently in the 13,500 range. As hiked loan rates and interests on deposits start to kick in, there is hardly any respite for investors due to a multitude of factors influencing the markets in the last week. Both the Nifty and Sensex lost approximately 5 percent of their preceding values. Following is a list of points that investors should be well aware of in case they want to play it safe while investing in the stock market despite the shortcomings :

FII selling

The FIIs have been in a relentless mood lately and are showing no signs of being kind to the Indian markets, as they continued to pull out money from the stock exchange after having invested 18 billion in the domestic markets last year (which, incidentally, was the reason for their phenomenal rise). Clearly, the situation this year is going to be a lot different, with the rising inflation and unstable political situation causing further damage to the chance of a repeat heavy investment by the FIIs. All in all, it is a vicious circle, the FIIs won't invest until the situation gets better, and one of the major contributors to the betterment of the situation is FII investment.

Rise in crude oil prices

How many times have we heard that before. But just for the record, the price has risen yet again, and is currently hovering around the 140 dollar mark. Since such a large deficit can't be directly passed on to the customer, the government is incurring heavy losses due to bearing a portion of the fuel consumption cost of the masses, hence leading to further problems for the economy as a whole, since fuel is the heart of the entire transportation system, and is indirectly responsible for practically everything in our daily use.

Rise in commodity prices

Confirming to the earlier point, the pricing of basic commodities has a huge impact on the overall economic scenario of the country and consequently, the Sensex. While an increase in the CRR was expected by many, the increment of the repo rate has baffled all. While both these measures were to make sure that inflation comes down to more acceptable levels, increasing the repo rate would mean that the interest rates for loans would be further increased. Though adversely affect the demand scenario, which is somehow beneficial to curb the current inflation, it would do more harm than good as it would result in further downfall of the Sensex. Hence, investors should plan their strategy accordingly.

So that is the round up of markets this week for all those of you who might be thinking of investing into stocks. Please pay heed to the points mentioned above for better results.

The inflation diaries : the saga continues

2008-06-25T05:37:00.000-07:00

So finally it has come, the RBI has hiked the lending rate and reserve requirements for banks (the repo rate and the CRR, for those of you who are more acquainted with financial terms) by 50 basis points. This move is essentially targeted at countering inflation, and is an initiative taken by the regulator to increase deposit as well as interest rates, which is like a double edged sword for investors and those who have taken loans from banks. For the investors, it is a good sign, since now they would be getting better returns for their fixed deposits, while this move is going to hit hard those who have taken loans for home, car, or consumer durables like refrigerator, TVs, ACs etc. on a floating rate basis (which basically means that they would be paying interest rates according to market conditions). However, there is a near possibility that this step would adversely affect the stock exchanges. The bond markets too, are likely to be hit. The finance ministry has clearly state that this move is aimed at moderating the demand and supply equation of the economy and boosting the confidence of foreign and domestic investors alike. This brings us to an interesting point.

It is a known fact that this step would not affect inflation directly, and it may take weeks, or even months for the same to come into place. Further, with the kind of impact it has generated on the stock markets today, it is imperative that this move is only in favor of long term investors, and not the short term ones. Also, the recent hike is going to affect those who have any involvement in the stock exchange, since this would lead to further downfall in share prices, hence leading to further misery for the iddle class that has already been hit adversely by the sudden uprising of inflation statistics. Coming back to some more facts, this hike takes RBI's overall tally to 125 basis points in 2008. Although this increase is expected to be for the better health of the common man, it surely is bad news for corporates, who are already reeling under falling market caps of their organizations. KP Singh's (of DLF fame) fall from 1,90,000 crore to 76,000 crore can be taken as a case in point. Any downtrend of the Sensex spells doom for SMEs and big organisations alike, hence giving rise to a vicious circle.

On one hand, you have inflation and the masses blaming the government, for which the latter is doing all that it can. And on the other, whatever step is taken by the government seems to add to the woes of the country's population in terms of hiked interest rates and falling share prices. To sum it all up, it's a very tricky situation for the UPA government, who also have the US nuclear deal to tackle. Only by some very careful planning, and an unexpected amount of patience by the common man to withstand tolerate the circumstances until the measures taken eventually give any positive results.

Investment for Dummies : To be or not to be

2008-06-16T00:42:00.001-07:00

Equity, one of the most prominent investment instruments of our times. Something that was seen as the quick and sure-shot means to instant riches up until 2008, when the Sensex witnessed its most phenomenal crash of all times, with the market witnessing a fall from a scale of 21,000 points to something reeling under the 16,000 mark. There was plenty of hype and hoopla over FDIs, FIIs, CRR index, and a lot many terms that are all technical jargon and mean nothing to the common man but for one simple line, his hard earned money is gone. Forever, no, but for a considerable amount of time, definitely. As economists all over the world speculate over one of the most phenomenal crashes in the history of the world markets, many investors and brokers alike in the country went bankrupt, and were even forced to commit suicide (okay, the word 'forced' might be a bit harsh, but nonetheless, there were quite a few tragic incidents). Amid widespread protest and the opposition blaming the ruling party for this debacle, the fact of the matter is that amidst all this confusion, the small scale investor is in no man's land. As the Sensex continues to flip-flop through the days, many people who ran their households based on intelligent decisions by their own understanding of the Sensex are bewildered as even predictions by top-notch finance gurus are proving to be wrong.

So what does the investor do in times like these? Is he supposed to invest in large caps and wait for the long term results? Or in real estate mutual funds (the market is really booming and showing no signs of slowing down)? Are equity mutual funds still good for their money (After trying everything on your own, you can afford a few more risks by placing your money in the hands of an expert)? Are the good old FDs the only option you have left (Inflation! Need I say more)? The answer, quite frankly, is just one. In times like these, you can never put all your savings at one place; It has to be a combination of the above. While this might sound complicated, this is in fact the only way to ensure that you manage to generate some funds in these turbulent times. To quote an example, just like you never put all your money in one stock, you would be much better off by investing in multiple instruments. To start off afresh, do a bit of a research in the market and find out the leading mutual funds based on past performance. While you might not get the same kind of returns, this would solve two purposes. First, you would know about the best mutual fund to put your money in, and second, you would also come to know regarding the stocks these mutual funds have invested in to give good returns, so that if you want to invest into the stock market directly, you would know where to put your money. Next up, pick up tax saving instruments and try to analyze which investment option would be the best to counter inflation, save taxes, and give good returns as well (These days, tax saving mutual funds a very popular option. While the lock in period is quite long, the returns are generally good). Coming back to investing in stock market, the most decent advice would be to stick to long term performers which might not essentially be large caps, since for short term profits, one has to take quite a few risks, some of which are not even worth the effort and the investment put in. FDs are an absolute no-no, and must be taken in extreme cases only, when you just can not afford to take even the minutest of risks.

And last, but by far the best option, if you have not yet traded actively in the stock market and now have the resources to do so, there could not be a better time to invest in equity. This is the time when investments would be the most fruitful, if one has the patience to play the waiting game. Always remember, no matter how down and out the market might be, it always bounces back. So keep faith in companies that are fundamentally strong, and you would be surprised to see the results. These are tough times indeed, but if handled carefully, could prove to be equally rewarding.

Every inch now adds lakhs

2008-06-09T21:27:00.000-07:00

India's top two cities, Delhi and Mumbai, continue to be amongst the ten most expensive office markets of the globe in the premier league of other places like London, Moscow, Tokyo, Paris and Singapore. According to a latest study by realty consultant CB Richard Ellis, Mumbai has been ranked 4th in the list of 50 most expensive office markets; but it witnessed a slip from its last year's second position. On the other hand, Delhi moved up a place to 7th from 2007's rankings.

The drop is not due to falling rentals in Mumbai, rather it is because of a significant increase in buy and let sector in London and Moscow. The positions of Mumbai and Delhi were still very high and were reflective of the tight supply of prime office space and of demand for space remaining constantly active.

London topped the list of most expensive office markets of the world, followed by Moscow and Tokyo. In May 2008, the monthly rentals in Mumbai and New Delhi were recorded at 210.97 dollar per sq ft and 145.16 dollar per sq ft respectively. The rentals in London stood at 299.54 dollar a sq ft in a month during the same time. Paris, Singapore and Dubai also found places in the list at 8th, 9th and 10th positions respectively. Besides this, Mumbai also found a berth at 8th place in the list of world's top 50 fastest growing construction and development markets in terms of occupancy costs with 40.7 per cent rise in the last one year.

The top three positions of this list were held by Ho Chi Minh City (94.4 per cent), Moscow (92.7 per cent) and Singapore (86 per cent) respectively. Bangalore and New Delhi were also included in the list with 22.6 per cent and 15.3 per cent increase in cost, which in turn fetched the cities in 22nd and 45th positions. The buy and let scenario is gathering momentum in the upcoming metros also. Due to the unprecedented growth of IT and retail, the requirement of official and commercial space is really high now. Retail in India is at its nascent stage and the growth prospectives are being flourished. So, we can easily predict that the growth tempo of the Indian real estate is going to be sustainable.

Second homes : the newest trend in the realty market

2008-06-09T05:45:00.000-07:00

Travel has always been associated with just what is was meant to be, an escape from one's mundane routine and a reprieve, or a breather, if you please, from our hectic lives and busy schedules to enjoy life, in all its colours. Due to this basic need of a break in all of us, tourism in itself has become one of the most dominant industries of our times. However, a new kind of trend has been observed in the same recently, and a rather unexpected one at that. Apparently, even the realty market is having some major benefit from the constant traveling habits of corporates and the upper middle class alike. According to recent studies, many travellers, both frequent or otherwise, are looking forward to buy second homes at destinations which are their preferred getaways. The motives behind this is clear, to have a personal space to live in while one is on a holiday, which doubles up as a source of income by the means of renting the property out when one is not in town. This has certainly become a very lucrative option, particularly after the recent surge of awareness regarding the realty market being the best place to put your money in terms of returns.

When one takes a closer look at this phenomenon, it might not be that peculiar as it seems. While it could sound like a wild goose chase for those who take vacations for just a week or so and are not particularly eating off silver spoons, the fact remains that there are a substantial number of professionals who do travel very frequently and belong to the higher income group. This includes top-notch executives at MNCs as well as small and medium scale businessmen. While this concept is very popular in western countries, India is still to catch up with this trend. At the offset, this might seem like a huge risk to many, what with all the apprehensions associated with investing in real estate away from one's home town and not being able to view the recent developments, in case it is being constructed, or not being able to view it even when it is rented out. But if one has a proper channel, like a known real estate agent or friend who lives in the vicinity, this investment is almost guaranteed to be a very fruitful one. Another thing to be kept in mind is the location, the physical characteristics and other things from a sellers' point of view (refer to my earlier post), since one can also sell the property altogether in terms of any emrgency or when the realty market in that city is at its peak. All in all, having a second home as an investment option might seem as a scary option, considering the element of risk involved. But if you play your cards right, you might just hit the jackpot!!

The right insurance at the right stage

2008-05-30T02:10:00.000-07:00

Insurance is one subject that always invites a plethora of comments from everybody, and one needs to be extra careful in choosing insurance plans, since they are in many cases vital for an entire family. In many situations, you can be insured but not adequately. Below is a list of points to be considered at various stages of one's life, and the relevant insurance plans to be opted for.

Beginning of Career

Unless you have a family or financial dependents to look after, there is no need for insurance as such, since the likelihood of death by natural causes is extremely low. However, if at all one has to go for insurance, it should be an accidental one which takes care of the expenses in case of an accident. Mediclaim, the country's largest medical insurance, is an apt option. Further, the premium for life insurance at an early age is also low, since it depends on one's likelihood of death. As one grows older and his dispensable income rises, he can opt for market linked products.

Post marriage

Generally varying in age between mid-20s to early 30s, this is the time when one has to opt for life insurance along with an accident cover to ensure that in case of any mis-happening, one's family is always protected, particularly when one is the only bread-earner.

Children

Advance planning for your children is also required, since there are many expenses such as education, marriage, etc. There are insurance plans that take care of such needs, and only after thoughtful consideration should a plan be zeroed in, since they require huge investments.

Liabilities

Add-on liabilities such as purchase of a new house, car, etc. also leads to the requirement of an insurance cover, since there are many policies that cover a majority of the expenses incurred in case of unforeseen circumstances such as theft, damage to property, etc. Further, while taking care of your liabilities, future plans must also be considered.

Old age

The moment one crosses the 50 year mark, he should get conscious of his health, and opt for insurance with a medical cover, since the likelihood of health problems increases in old age. Also, in case there are still few financial liabilities to be covered, these should also be considered.

Real Estate Mutual Funds playing spoilsport for RBI

2008-05-23T05:38:00.000-07:00

Foreign investments have always been treated as some kind of an Achilles heel of the Indian economy by the RBI with regard to the Sensex, and rightly so to a certain extent. While they had been one of the primary causes of the phenomenal rise of stock market in the last quarter of 2007, they were also the ones that led to its ultimate downfall, hence the RBI apprehension. Another vertical that has seen quite a phenomenal bit of activity from foreign investors is real estate. Although the RBI has continually laid down rules to curb the same, foreign investors, who see India as a paradise when it comes to taxation, have always found ways to enter the Indian realty markets.

However, things are just about to get a lot more difficult for the regulator. With the launch of Real Estate Mutual Funds or REMFs, there are currently no restrictions that can stop FIIs from investing in Indian properties. According to ET, under the new rules, which are carved out of the regular mutual fund guidelines of Sebi, an REMF can invest the entire money that it mops up “directly in real estate assets” While the RBI is now clearly running out of options, this move would certainly help investors as well as developers, who earlier faced the dilemma of the present rule stating that foreign investors can put money only in projects that were related to construction and development, but not in ready properties. Hence, we can see that while one government body is trying to restrict foreign investments, another has devised new ways to inject money into the country's economy.

This could certainly prove to be the undoing of the Indian realty market somewhere on the lines of the Sensex, which suffered its most severe crash of the recent times in January when foreign investors pulled out their money all of a sudden. While on one side the influx of more money would lower the required funds for developers, it could also lead to further increase of prices, which would do more harm than improve the property scenario, since the government is also planning for Special Residential Zones to be set up, with housing spaces starting at very low prices. If these newer norms by SEBI are considered, these SRZs could also be seen as a soft spot that could be targeted by foreign investors. Although there are no alarm bells ringing as of yet, the situation does look a little bit volatile, and the government would certainly have to roll up its sleeves sooner or later and take proactive action if it is to restrict the situation from going out of hand, something that is not extremely unlikely in the present context.

Secure your short term needs

2008-05-16T22:18:00.000-07:00

With the ever-increasing rising standards of living of our times, it is somehow quite obvious for the average individual to be stuck up in the web of seeking debt to fulfill his ‘urge-to-splurge’ . While the most viable option that would strike the mind is that of a credit card, it would not be the most appropriate thing to do in case of an urgent cash requirement (until and unless you are a steel baron and rake in millions everyday to pay off the heavy interest rates; which, unfortunately, you are not) With that option ruled out, the next best thing would most definitely be personal loans, but then again, they also come with an interest rate anywhere between 16-22% p.a. While there seems to be no respite from paying heavy interest rates, secured loans could be a welcome solution for your financial crisis, minus the heavy interest rate.

While squeezing out of paying an interest rate is not feasible under any circumstance, since secured lendings such as loans against gold jewellery, overdraft against fixed deposits and stocks/MFs are sanctioned against a collateral, they are a cheaper option compared to personal loans and credit cards. When compared to credit cards and personal loans, secured credit options attract an interest rate between 9-12.5%, which is the main reason for their preference over other credit options. Apart from the interest rate, other factors are also to be considered while choosing a credit option. Factors like speed of disbursal and tenure of the loan are also crucial (personal loans lose out on the latter option, with the minimum tenure being 12 months, which renders them unusable if the requirement is only for a couple of months)

When talking in terms of equity also, loans against securities give one the power to invest in a new rights issue without having to sell any other share or mutual fund. The processing time involved in loans against MFs/stocks is 3-5 working days, after the initial documentation.

While all the above are seemingly prevalent options that do require some knowledge of the financial sector, there is one more options that is closer home. With the rising bullion prices, gold has suddenly become both a sound investment as well as a sound collateral. Most Indian households invest in gold and hence, it is one of the most convinient options to fund one’s short term needs. One can borrow upto Rs. 10 Lakh or 80% of the ornament’s value, with the payback time ranging between 3 to 12 months.

Hence, there are quite a lot of options available if one wants to take a short term loan. The only rule that should always be adhered to is the fact that one should only take the amount that can be comfortably repaid. Falling into the debt trap is very easy, and should always be avoided.

Real estate : look before you leap

2008-05-09T02:14:00.000-07:00

Real estate investments are generally regarded to be the best place to put your money in, surpassing the stock markets and FDs by a large margin. However, making investments in the right area is the name of the game, as real estate more often than not involves a substantial amount. While real estate mutual funds have also been sanctioned recently, there's nothing like investing in real estate when one thinks in terms of returns. Following are few of the points that one should always keep in mind while taking the plunge in real estate.

Location : The location of the building where you are purchasing your apartment or plot plays a major role in deciding the future appreciation or depreciation (Yes! You read it correctly) of your investment. For instance, if there are plenty of shopping complexes and multiplexes coming around your residential area, it is bound to give you a good return. Conversely, if you invest in a plot at a very sparsely populated area which would take considerable time to come up to the level of a modern township, your returns would be delayed. Many times, it may not even come at all.

Physical characteristics : Strange as it may sound, there are many expectations related to the physical structure of a building when you plan to sell off your current residential area in the future. Good architecture, durable exteriors and a sufficient supply of electricity and water are some of the most desired qualities. Also, one should also research a little on the future trends in this sector like new construction materials and safety features, and invest where all these are either available or can be included in the future, if the need arises.

Liquidity : Real estate might be more profit yielding than FDs, but the lock-in period, if you will, is very long, sometimes extending more than 10 years, in case you pay EMI's. Also, finding buyers who would purchase your apartment or plot at your desired price is an extremely hard task. Hence, one should invest after due consideration of the future prospects, and make necessary arrangements in case of any emergency, since getting returns from real estate investments takes a long time.

Legal issues : We have all heard of examples of fraud in real estate. While investing in other mediums like stocks and mutual funds guarantees legal compliance to a certain extent, no such provision exists in real estate.

While on one hand real estate is a bundle of opportunities and has led many people to overnight riches, the amount of risk involved makes this field not a suitable one for those who are not aware of the market. Only after due consideration of the above-mentioned points should one decide whether to go into real estate or not.

Buy-backs : The buzzword on the Sensex

2008-05-06T23:34:00.000-07:00

While on one hand equity investors are picking up the pieces from the stock market crash and looking to traverse the road to consolidation, many big companies are apparently making the most of the situation by the means of buying back their shares. According to reports, share buy-backs in the country have already reached record highs with a figure of $1.1 Billion from nine such deals. While the same of Madras Cements has been completed on March 5th, other big names on the list are Reliance Energy, Great Offshore, Mastek, Patni Computer, Gujarat Flurochemicals, JB Chemicals and Pharma, Sasken Communication and Goldiam International, the deals of which are yet to be closed.

A buy-back is actually a means for companies who have issued shares in the market to increase their stake. This involves the company approaching minority shareholders to sell them their shares are the current market price or higher. This way, the company negates the possibility of threats by shareholders to gain control of a company. Also, this leads to a slight shortage of that particular stock in the market, hence strengthening the scope for an increase in the prices of that particular share. While increasing stake in your own company is a very noble motive, the actual objective of these companies is clearly anybody's guess. This is certainly the most apt time to go in for a buy-back, when there is a mixed reaction in the market regarding which way the Sensex would go. With one half of the experts stating the Sensex is expected to nosedive further and the other half suggesting otherwise, investors are clearly in a fix. While many could say that if such were the intentions of companies, why didn't they do so when the Sensex was at its all-time low in the present context, I beg to differ.

There is, has been, and always will remain an optimistic hope of a revival from the Sensex by investors. It was due to this faith only, that many still held on to their portfolio even in terms of crisis. If these, and other, companies had proposed to buy-back shares during those times, it would have set the alarm bells ringing in the opposite direction, with a negative sentiment running among the already tormented investors that these companies are trying to take advantage of their miseries, hence adding fuel to the fire. Now that the Sensex is fairly stable, companies can buy-back shares in the garb of aiming for more control, consolidation, or whatever jargon they might like to use. While profit making is the prime objective of any business, practices like these are certainly uncalled for, as it could easily lead to false price rises due to shortage of shares in the market. I personally believe that SEBI should have a say in matters like these, so that such activities do not go unnoticed.

Real Estate mutual funds : a double-edged sword

2008-05-01T22:08:00.000-07:00

Much to the relief of mutual funds houses across the country, SEBI finally gave the green signal to the concept of real estate mutual funds on Friday, the 25th of April. A decision that was pending for the past two years and was eagerly awaited by mutual fund houses as well as investors, has now become a cause of joy for both. Referring to the guidelines issued by SEBI, all existing mutual funds are eligible to launch real estate funds also, but a corporate, looking forward to launch the same would have to show an experience of five years in the realty business. Further, assets of real estate schemes are to be valued every quarter by two valuers, but the NAVs would have to be declared on a daily basis, since these funds would be close ended and would be listed on stock exchanges.

While on one hand this means that investors can now diversify their portfolios and enjoy the benefits of investing in real estate with relatively lesser investment (generally, one needs to invest lacs to be able to reap the benefits), realty developers are equally happy, particularly because they can now attract more investments, hence resulting in a win-win situation for all. Another point to be noted is the fact that real estate as an asset has a low correlation with equity and bonds, hence resulting in no significant impact on real estate prices even if the stock market is reeling, as it was a couple of weeks back.

According to The Economic Times, apart from investing in real estate, SEBI has also permitted investments in mortgage backed securities, securities of companies dealing in real estate assets/development projects and other securities. To sum it all up, at least 75% of the entire asset amount must be invested in real estate assets and related securities including mortgage backed securities, according to the regulator.

While this all might seem in favour of investors, one point to be kept in mind is that the real estate market, much like its stock counterpart, does not always follow a rising trend. While there has been a phenomenal rise in prices over relatively short periods of time, the falls have also been devastating, to say the least. Market sentiment also has a more substantial impact when compared to the Sensex. Hence, one has to be careful regarding what percentage of portfolio to allocate to the real estate. True, the advantage of liquidity always exists, and one can pull out whenever the need arises, but realty owners enjoy the advantage of having a tangible 'home', if you will, to live in, which is not available to the former.

All arguments aside, real estate mutual funds can, at best and quite appropriately, be described as a double edged sword, and one must invest wisely in it. Blindly investing in them, regardless of any consideration, can lead to disaster, since at times the stock markets outperform the realty ones. Only after proper planning and paying heed to the above-mentioned points should one decide on whether he should take the plunge or not.

IPO refunds : Are the authorities really at fault?

2008-04-27T23:43:00.000-07:00

The stock markets, which have essentially been the sum of all fears for investors since the past couple of months, have now sprung up a new problem. This time around, it’s not the falling share prices (which have now, much to the relief of many, started on what could be described as a bull run). IPOs, or Initial Public Offerings, once considered to be the best equity option if you know your company, have begun defaulting on refunds (the unallocated portion of application money). This includes both large IPOs like Reliance Power and Gammon Infrastructure as well as various other smaller issues.

The BSE has so far received 804 investor complaints in March, regarding actively listed companies. The complaints comprise of issues primarily related to non-receipt of refund orders and allotment letters. Investors are trying desperately to get their money from whatever source possible – be it merchant bankers, share transfer agents, brokers and investor associations. The issues in question are the ones launched in the period from
November to January. Similar complaints are also prevalent in the secondary markets, with investors complaining about non-receipt of declared dividend and interest, bonus share letters and rights forms. Though this could point towards unethical practices on the part of the registrar and transfer agents, investors too, are at fault. There are many cases evident where they provide wrong mailing addresses or incorrect de-mat account numbers, according to an article in The Economic Times. IPO refunds are made through three channels — the RTGS (real-time gross settlement) route for investments above Rs 10 lakh, ECS mode for only applicants residing in 68 centres and the cheque route (by post). Refund orders by cheque worth Rs 1,500 or more are required to be mailed through registered or speed post, hence stating the example for provision of the correct address.

If one remembers correctly, the months of December and January were the times when the bull run of the stock markets was full steam ahead, and IPOs were being taken as the next best thing, and a low-risk one at that. However, there were also plenty many malpractices being resorted to from the investors’ side. Investors were applying to issues by faking their de-mat beneficiary account number, and those without a de-mat account were advised by brokers that share transfer agents would revert back to them on seeing a mismatch in the name and beneficiary account number and that could be rectified later. This information was, of course, incorrect, and investors should have done better than to just trust their respective brokers blindly.

While the above points make it clear that investors too have done their share of mistakes, to a common man, this news would set the alarm bells ringing. A negative sentiment regarding investing in IPOs is a most likely aftermath. It is now up to the authorities and investor forums to clear the picture, if the Sensex is to follow up on its recent advances.

US real estate crash : disaster, or a blessing in disguise

2008-04-25T03:12:00.001-07:00

The US sub-prime crash of the recent times has had a tremendous impact on global realty markets. So much so, that the downfall in real estate valuation has been more in the affected countries when compared to the US. According to reports, China, Japan, the UK and India have also felt the heat as each of these countries has surpassed the US in terms of fall in the NAV (net asset values) of real estate holdings. (For those who don’t know, NAV is actually the present discounted value of all the future cash-flows of a property firm, and is a valuation tool for real estate firms)

According to an article in The Economic Times, many Indian real estate firms have reported as much as 34% fall in their NAVs. However, in the US, property valuation has gone down by just 12% of its NAV; That is even better than the global scenario, which has registered a fall of 18%. Further, real estate stock prices have dropped by 50-65% in the first quarter. The general trend seen is that when the market is at an upswing, real estate firms trade at a premium to their NAVs, and when there is a bear run, shares trade at discounted rates. Due to the high volatility of real estate stocks, the impact is often amplified.

Due to such a sharp fall, the discount to NAVs has further widened. Earlier, uptil November 2007, it was just 1-2%. According to experts, high interest rates have made property firms with high debt exposure prone to rapid erosion of corporate valuations.
The reasons for the crash, apart from the bad sentiment arising from the US, are as follows:

1.Due to the exit of speculators from the residential market, transaction volume for real estate has gone down by 40%.
2.A large part of the IT and ITES space is occupied by US and European MNCs, and they did not purchase any space in the first quarter.
3.Many mall developers are also hit as cost of servicing debt has gone up and private equity funds skeptical regarding their investments.
4.The general tendency for domestic investors is one of holding property as a means of investment. Since there are owned apartments and plots without any occupants, the general sentiment is affected.

The Indian realty market had really boomed in January, when the Sensex had also reached its all time high. At that time, realty stocks had been trading at over 20% premium over their NAVs. Later on, when the stock market crash occurred, DLF, Unitech and Purvankara traded at a discount of 18%, 26%, and 49%, respectively, to their NAVs.

While many would now be reconsidering their decision regarding investing in real estate, my advice is, there couldn’t be any better time, since real estate is bound to rise sooner or later. This crash could certainly prove to be a blessing for those who could not afford the higher bracket holdings earlier, as they might be able to do so now. While the tremors of this crash would continue to be felt, on the whole, the situations are definitely going to improve, much as in the case of the stock markets. Since now the stock market is also beginning to improve, it would certainly have an impact on the real estate market, in terms of better valued shares of realty developers, hence strengthening their cause towards being a viable investment option.

Is it possible to buy your dream car?

2008-04-23T01:50:00.001-07:00

Financing your dream car just got tougher! On one hand, we have the car manufactures who are repeatedly increasing the auto prices and on the other, there are banks, where the interest rate hike doesn't seem to stop. After being the first one to increase the interest rates by 75 basis points, ICICI Bank is still leading the interest increment marathon. A league of other banks encompassing HDFC Bank, Axis Bank and Kotak Mahindra Prime are most likely to join the race, according to an article in The Economic Times.

Currently, the gross interest rates on car loans range between 13- 15.25%, but net interest rates hover around the 11.5-12% mark. Nearly all manufacturers are expected to hike their car prices by 2-3%, something which can clearly be attributed to the rising costs of steel and fuel. Quite obviously, they are left with no other choice but to pass on the price burden to the customers.

In case you are planning to settle for a two wheeler, you might be surprised to know that the interest rate in this category is expected to reach an all-time high. From the next month onwards, HDFC Bank might increase interest rates on two-wheeler loans by at least 200 basis points up to 24%. ICICI Bank has already hiked their interest rates in the first week of April by 50-75 basis points to 24%.

In the past, Kotak had spiked its interest rates by 25 basis points in the month of March and once again by another 25 just a week ago. But keeping in wake of the recent CRR hike, it is anticipated that it may hike its rates further, at least by a further 25 basis points next month. Although most of the banks are keeping a check on the market mood, recent developments indicate that the escalating interest rates are likely to increase further. So on so forth, thanks to the surmounting inflation, one thing is for sure; Financing your dream car or your two-wheeler will surely not be an easy task in the near future. As a most humble advice, those of you who are in a desperate need and require a vehicle at any cost (quite literally) must reconsider their financing options; and by the time they finish reading this post, must start saving for your favourite vehicle at the earliest. And for those who are just toying around with the idea, this is definitely not the best time to go for it.

Selling your ideas for cash : Venture capitalism

2008-04-19T00:38:00.000-07:00

The Indian brain drain is a thing of the past. Right now, we are a country full of innovative ideas, attracting plenty of moolah by the same, and giving rise to a new industry called venture capitalism. With established players like Canaan (BharatMatrimony.com) & Clearstone (BillDesk, a software responsible for the ease with which you pay your bills online), and many more coming in as potential heavy investors, it would perhaps be now most appropriate to state the antithesis that sometimes words, or rather thoughts, tend to speak louder than actions. Based primarily on the dotcom platform, venture capitalists(VCs) were the fountainhead of an array of websites that bombarded the world wide web at the turn of the century.

Dow Jones has reported an investment of $928 million in venture funds in the year 2007, a 166 percent increase over 2006. While this figure might be very miniscule in front of the USA’s $29.4 billion, a report by NASSCOM indicates that India, along with Israel, Taiwan and quite obviously the US, always tops the list for venture capitalists as a sound investment. Following up on the IT boom in 2000 which led to our rise on the global stage, India has defied various obstacles such as inadequate infrastructure, expensive hardware, restricted access to foreign skills and capital, and limited domestic demand, to rise as the software hub of Asia, thus projecting a fairly stable image in the VC market. Having the second largest English speaking scientific and technical manpower in the world, with the IIMs and IITs known globally as centres of excellence, we are today seen as a reservoir of budding entrepreneurs.

However, while there is tremendous potential in our young minds, it is of vital importance to segregate the good opportunities from the bad ones. While VCs have a thorough check of the credentials of a business plan before taking the plunge, hardly any such verification is observed from the entrepreneurial side. While every business runs for profit, genuine VCs are never, and also must never be perceived to be, money hungry opportunists. They are more interested in providing substance to powerful concepts, building companies and aiming at contributing to the society as a whole, and not just satisfying their own needs. Early entrepreneurs in India mainly looked forward to zero-risk ventures. However, with the growth of management knowledge & skills, and increasing foreign investments, that psychology has given way to a broader point of view.

Coming back to the point, following are a few points for entrepreneurs that must be kept in mind while going ahead with a venture capital funded project.

Don’t fall for any lucrative offer that comes their way. A proper study of the VC, individual or company, is the elementary step towards assuring a successful manifestation of your dream project.

Don’t allow a VC to dictate the terms in a contract. If you believe your concept is worth more than what is being offered, ask for it. There are chances you might get it. This is one place where a bird in hand is not better than two in the bush.

Don’t put a step forward where there are ideological differences between you and a VC. If you insist on calling a spade, a spade and the VC thinks otherwise, don’t give in. just because he has better business sense does not mean that he knows more than you about your project.

Probe in towards the soft areas like; would the VC support you in times of crisis? Would he stand by with further investment if things go wrong, or would he cut his losses and quit? Could he provide value addition to the company in terms of management, financial and technical resources? All these questions are important in the long run.

RBI in reversal mood : stocks off collateral list

2008-04-18T00:30:00.000-07:00

The recent stock market slide has affected the country’s economy in more ways than one. After being the fountainhead of the troubles of investors and possibly being one of the root causes of inflation, it’s the banking sector that has been affected now. Recently, the RBI has introduced another alteration in the regulations for banks. Now, stocks can no longer be considered as collateral against loans for calculating the capital adequacy ratio(CAR).

Coming in as a predicted step by the regulator after the escapades of the Sensex this summer, this new regulation would make things all the more difficult for many investors in the country, particularly in the corporate planning sector, where stakes are often pledged as securities against raising loans for future projects. The most obvious reason given by the central bank is that the Sensex has seen a downfall of 30% since rising to its peak two and a half months ago. Hence, equity is no more an acceptable collateral. Prior to this, banks would have to keep aside 30% of the entire loan amount, if shares worth 70% of the same were provided as collateral. However, with the changing norms, banks would have to keep aside the entire sum as capital. This is being implemented by the RBI as one of the measures relating to Basel II, the second set of norms that measure the nature and amount of risks a bank can take, applicable from March, 2008.

While this step goes a long way to ensure that banks do not have depleted collaterals due to falling share prices, it also has the side-effect of limiting the financing options of equity investors and brokers, who are already high and dry on their investments. Now that equity is officially off the list of permissible collaterals, they might have to resort to mortgaging their properties in order to raise capital to recover their losses, something that might turn out to be bad news for the real estate market. The flipside on banks is that they are suddenly faced with the task of setting aside more capital than they had planned for the fiscal year. Ironically, RBI itself had issued a circular in April 2007 permitting equity to be acceptable as collateral. Now, after less than a year after its inclusion, equity is again removed from the list.

While all this is done as a gesture of goodwill for the banking sector as a whole, the RBI could have surely come up with a better plan than to make issues more complicated by this measure. Alike the recent IPO underwriting proposal, the regulatory body should seriously focus more on how to make the markets more stable than contemplating on alternative routes, that seem to solve the problem only for a temporary span. After all, you don’t form new bridges by plucking stones out of old ones.

More cards to the Indian population’s credit

2008-04-16T02:22:00.000-07:00

Recently, an article in The Economic Times highlighted the fact the credit card usage in India has witnessed a steep rise of 50% in FY ’08. While it is a fact that the country’s stock markets are not in the pink of health these days, it is really pleasing to see that the standard of living of the urban population is increasing at a rapid pace. While at Rs. 4,000, the average usage of a credit card in the country is way behind the likes of China and Japan, the rate of progression is significantly appreciable (it rose from an average of Rs.1,500 three to four years ago). Part of the credit also goes to the rise of disposable income with the rise of MNC’s which gave fatter pay packages to our youth, as well as to the growth of organized retail outlets and more so, online shopping.

The latest fad among this increased usage is the usage of co-branded cards. These cards are mainly part of a tie-up between the credit card company and a retailer or service provider. For instance, American Express has tie-ups with Kingfisher Airlines and Airtel, Citibank has teamed up with MTV and Jet Airways and ICICI has co-branded cards with HPCL and Indiatimes. The main advantage of using these cards is the fact that users are rewarded with points for every purchase through their cards. These points can in turn, be redeemed for gifts. Also, with changing lifestyles, users are preferring credit cards to others forms of transaction such as cheques and cash, mainly because of their portability and ease-of-use, minus any extra charges, except in the case of American Express (but those who are eligible to keep the card would not mind). The growing usage of the internet has also aided significantly in increasing the demand and usage of credit cards.

What has further added to this trend is the fact that these days, a majority of services like airline or railways tickets, hotel bookings and movie shows can be booked through the Internet by using credit cards. There are approximately 25 million credit card holders in the country, according to Credit Card Management Consultancy (CCMC), and the number is expected to grow exponentially in the years to come. While it is a rather deterrent fact that as much as 40% of these cards are inactive due to multiple possession of cards by users, it can be said without a doubt that the credit card boom has a long way to go in the Indian scenario.

Investment options for dummies

2008-04-10T23:49:00.000-07:00

Riding on two boats is often not advisable; but when the need is urgent, nobody knows what other acts one might have to resort to in order to resolve the situation at hand. Money is one of the concerns that never seem to have a concrete solution and quite frankly, there can not really be a single solution that would satisfy our never-ending quest to maximize our savings. However, there are options available today that could surely be handy when one wants to invest for a short span of time. Many people are not open-minded regarding these options, the main reason being lack of proper information. Below are two effective means of investing in the correct way, besides the traditional bank FD.

If somebody wants to invest for a period of 6-12 months, Fixed Maturity Plans (FMP’s) are a good option. In case the investor is interested in continuing with the plan, his money would be transferred to another FMP, or to a liquid plus fund, in case the investor is not sure whether he would need the money after six months. The flipside to this is the fact that although FMP’s give considerably higher yields compared to liquid funds, they also come with a high risk element. Apart from the interest risk rate, there is also a slight chance of default, since FMP’s invest in corporate debt. The holding period is also a matter of concern, as these plans are not open ended and hence, can’t be held for an arbitrary period. Hence, for those of you who like to play safe, mutual funds are the best option available, and come with a very little risk element, but also give a lesser rate of interest.

Another suitable alternative is an arbitrage fund. It is basically a debt-like instrument that carries neither the risk of default nor that of an interest rate. Their yields are often similar to the likes of arbitrage funds and after a minimum investment period of 3-6 months, they become liquid. The only criteria that decides the performance of the fund is the skill of your fund manager.

Making a choice between these options depends on many concerns; the first one being- when would the invested money be needed in liquid? There are few short term instruments like income funds that entail an exit load. Focus on post tax returns, instead of the pre-tax ones. The interest rate scenario also counts as a very valid point. One should make it a point to ponder over the fact that whether there is a provision for capital gain or are the returns based on interest rates alone. It is important to consider the term and duration of the instrument, since a longer term would ensure better capital appreciation against a shorter one. A few last minute tips regarding the best option, in case you are certain of the time period, are as follows:

1.If one is certain about the period of time, and it’s lesser than 6 months, FMP’s are the best place to invest;
2.If the period is more than 6 months, arbitrage funds would be the ideal option;
3.If the horizon is highly uncertain, one should swear by liquid funds;
4.If the investor’s income falls under a high tax slab, he can go for the growth or dividend fund.

Pay Commission : Does the Centre balance out the State?

2008-04-10T04:20:00.000-07:00

While this may seem very redundant, particularly after I just wrote on the recent budget, the issue of Pay Commission, like the former one, refuses to die down. The latest buzz regarding the same is whether this proposal should be implemented in all states or not. While this might be the first time that state government employees would have an equal share of the pie along with those at the Centre, it is perhaps a point to ponder upon as to whether there is enough steam in the state revenues to continue functioning smoothly even after the proposed 40% hike. While the Sixth Pay Commission has been extremely generous to government employees in order to curb the attrition rate, the centre may be biting off more than it can chew by unanimously accepting the proposal without any amendment, most probably in order to be the beneficiaries of a majority of public votes in the ’09 elections.

While more than half of the states are in revenue surplus (19, to be precise, according to RBI) and 26 out of 28 states have achieved the FRBMA (Fiscal Reform and Budget Management Act) target of eliminating revenue deficit ahead of FY 08-09, the issue of rising inflation is also one to pay heed to. Already at an all-time high with 7%, the figure could certainly go well above if the hike is implemented in states where the financial infrastructure is not strong enough. Looking back at the Fifth Pay Commission also, only 20 states accepted its recommendations. It is true that the introduction of VAT has given tremendous leverage to state treasuries, but the decision by the centre should most certainly be based on an individualistic approach, not a nationalistic one. I know I might be offending many state government employees, but then again, sometimes, you have to look at long term gains, instead of short term ones that can negate the possibility of a bright future. In the end, it all boils down to the financial health of the country. And quite unfortunately for state government employees, the bell does not completely ring in their favour even after this most humble gesture by the Centre (pun intended)

Don’t count your chickens before they hatch

2008-04-08T04:35:00.001-07:00

There is much elated talk regarding the recent hike (read proposed hike) in the salaries of government officials these days. Big plans are being made concerning how to spend the soon-to-be-acquired fortune, however large or otherwise. While I do have many friends in the government sector, I would like to raise just a small question regarding this entire scenario. Isn’t it a little early to comment on the hike, particularly since it hasn’t even been talked about once in the Parliament? While it is a frequent habit of the middle class to constantly think about the future and make plans, what amazes me is the fact that how can such confidential information be leaked to the media? How can the government, and all the concerned authorities be so careless and not take appropriate steps to prevent this from being revealed?

While there is no questioning the power of the press these days, I believe the government still has some authority pertaining to which part of the news should stay within the power corridors. It is a most obvious fact that these changes, if approved, could swing the vote bank of the population tremendously in favour the ruling party. However, if there is even a little change, depreciatory as in, in the expected hikes, it can easily lead to disastrous circumstances. Countrywide protests and many more such activities could become rampant that would not only ensure that the ruling party does not stay in power in the next general elections, but also upset the overall mood of the entire nation.

Consider this, there may be many who would consider the hike as a sure-shot fact and would have already made plans to invest, or even worse, may have already invested a substantial portion of their savings, believing that they would soon be replenishing their savings with this hike. If the government then goes on to reduce the separate percentages for different salary brackets, there are no prizes for guessing what could happen in such a situation. While what is done is done, I believe that the only logical thing for the government, in case the hike structure is reduced, is to provide a detailed list of reasons regarding the proposed hike was rejected. If that is not done, things could really get out of hand.

IPOs: Hit only when the iron is hot

2008-03-31T01:36:00.000-07:00

Recently, VISA made headlines across the world by raking in an astounding $17.9 billion via its IPO. It had reportedly sold 406 million shares priced at 44 dollars each. The price was higher than company estimates of 38 to 42 dollars per share, but obviously, nobody’s complaining. Although it was well short of the world’s largest IPO sale of $21.9 billion by Chinese bank ICBC in the Shanghai and Hong Kong markets in October 2006, the amount is still enough to clearly state that people’s faith in the stock markets is not lost. Coming closer home, we witnessed a similar scenario in June, 2007, when Vishal Mega Mart’s IPO, valued between Rs. 230-270, opened at a staggering Rs. 780. While historic IPO openings are nothing new in the global stock markets, it’s the timing of the opening that really matters. But what harm could a decent opening to a strong company be to the investors?

Strange as it seems, it is quite important for investors to know when the right time to invest in an IPO is. Consider this, if the market position is strong, and you invest in an IPO of a relatively strong company, chances are that it may pay off really well, as was the case with Vishal, with the market going all bulls ahead at that time. However, considering the fact that the condition of the US markets is as good as the Indian one, thanks to the decline in consumerism and the fall in the real estate sector, VISA might not be able to sustain the pull it has managed to get due to its fantastic brand value. The point of concern could be personified taking the example of the Reliance IPO. While the subscription was completed in a record time of two minutes, the opening of the share was far below the expectations of the entire country. What was touted to be a sure-shot way to make easy money with Reliance issuing 26 crore equity shares at a price band of Rs. 405-450, turned out to be a big loss as the share closed at a market price of Rs. 372 on the first day, much below the expected price of Rs. 600. These figures clearly indicate that there are a lot many factors to be considered before investing your hard earned money than just a company’s reputation.

Hence, before going solely on the brand value of the IPO and relying on the expert opinion, consider a few other aspects, market sentiment being one of them. To give an example of the Reliance IPO again, it was pitted against Emaar MGF, while both these organizations were yet to show any substantial profit, still there was significant hype for the same. It is time that the investors must realize that companies are going to gain from the IPO even if the opening is bad, but money once lost in the share market, is very hard to recover.

More credit cards don’t mean more money

2008-03-26T03:07:00.000-07:00

I’m sure quite a few of you would be familiar with the old saying ‘The more, the merrier’. The current Indian scenario is also quite the similar to that in many terms. We want more money, more cars, more recognition…. And the list goes on and on. The latest addition to this fad is the demand for more credit cards by a majority of the Indian population. According to a customer satisfaction research carried out by the SBI Card across 7 cities, the number of credit cards being used by Indians has increased from 1.8 million in 2003 to 2.2 million in 2006. The target clientele for keeping multiple cards generally comprises of youngsters, businessmen, executives and the higher strata of society.

The main logic behind keeping multiple cards is the fact that they give an extended credit limit to consumers. While applying for a Platinum credit card might not be possible for everyone, a Gold credit card often suffices as it gives a relatively high credit limit and if one gets three or four of these, he can easily get an overall credit limit exceeding Rs. 10 Lacs. Many leading banks like HDFC, ICICI and HSBC offer credit cards of various categories, namely Silver, Gold and Platinum, with the Platinum card having the highest limit which varies from bank to bank. The grand mogul, if you will, of them all in this field is American Express, or AmEx for short, as it offers a Titanium card, a one of its kind till now, that gives consumers an unlimited credit limit. But the only glitch is the fact that it requires salaried employees in the private sector to have an annual package of Rs. 15 Lacs and in the government sector to have the same of Rs. 5 lacs, plus an additional annual fees of Rs. 60,000, regardless of whether you use the card or not. Clearly, this card is not issued to, and can’t even be afforded by everyone. Furthermore, AmEx is the only credit card that comes with such hefty annual charges while all the others just have very minimal maintenance charges.

Another major factor in keeping multiple credit cards is the fact that it has become more of a status symbol than a utility. Often you may encounter youngsters, and even middle-aged professionals flaunting their repertoire of credit cards. Industry experts, on the other hand, have a different take on this. They strongly advise against such practices as keeping a track on monthly due dates for many credit cards is often not possible. Also, since the late charges for credit cards are also very high, keeping multiple credit cards is an absolute no-no. The best thing to do in this regards is to stick to one or two cards so that bill-payment is not an issue. You might be very proficient in keeping a track of things, but when it comes to money, why take chances…

Make hay while the sun shines, but keep some aside for the night

2008-03-19T02:06:00.000-07:00

Retirement is one issue that starts to bother most of us the moment we reach our forties, but with proper planning at the right stage, your retirement money could prove to be a source of ever-incremental income rather than just being your support system in your so-called ‘days of being a dependant’. There are quite a few considerations to be pondered over while you choose the correct policy to plan your retirement. These include mainly the following five issues:

Potential for outliving one’s assets
Threat of the rising living costs
Impact of increasing health-care costs
Uncertainty about future level of social security benefits
Damage to long-term financial security

While most of the people look forward to a long life ahead, there could be a serious issue of concern regarding outliving your assets. And with the kind of advanced medical science facilities presently available, life expectancy has shot up. The following presents the current status of India in the global league in terms of inflation.

Inflation rates based on Consumer Price Index(1995-2004)

Clearly, the situation does not look to good and what may seem to be a fairly substantial amount for your retirement today, might not be worth that much by the time you actually retire since the cost of goods and services would have risen to an extreme height.

Next on the list is the issue of rising health costs. To repeat an already stated point, while health care is booming and world-class facilities are now being provided at many of the leading hospitals, it all comes for a price, and a relatively expensive one at that. Many companies have reduced or deleted the medical allowance for their employees, and Medicare, the federal medical insurance program for those aged 65 and above, is in turn forcing its recipients to contribute more and also purchase supplemental health care policies.

Excessive withdrawals are another area of concern. The amount of money you can safely take out of your retirement fund each year for your personal expenditure must also be carefully planned, considering all the elements of risk in the future. Issues such as return on investments, if any, must also be looked into.

Solutions

While the risks mentioned above are common to many people, they might not have the bearing of the same intensity to everybody. Hence, before planning one’s retirement, a realistic plan needs to be chalked out. For example, if you are in your twenties and plan to retire in your sixties, you would ideally opt for a 40 year retirement plan.

Regarding inflation, you must plan as to how you would invest in various options available so as to outdo the any negative effect on your earnings.

While this all may seem very difficult to accomplish, you could take the advice of a financial consultant who would guide you regarding the best policy for yourself and help you plan to spend your retirement in the most comfortable manner.

Credit cards: of value to only those who are smart

2008-03-17T04:47:00.000-07:00

The recent revolution of plastic money has made things a lot more convenient for the masses. Now, there is no need to carry bundles of cash with you if you want to shop for your latest Gucci glasses or the D&G leather bag you always wanted. Your credit card will do everything for you in a matter of seconds. Let your worries aside for the next billing date when you would actually have to pay for all this. Right now, it’s time to splurge.

Credit cards are usually a benefit provided by banks to the general public who might or might not be their customers. This is an added on advantage given to the masses so that they may purchase their required commodities even if they are short of hard cash. The billing for credit cards is usually done 45 days after the start of the billing cycle, i.e, if I make a purchase on the first of February, I would have to pay for it somewhere close to 15th of March. This allows for urgent requirements such as groceries and other items that are required on an urgent basis in every household to be taken care of. They often prove to be a blessing and have a major contribution to the rising living standard of the Indian population.

Apart from the odd credit card fraud or two, things seem to be going pretty well as far as this new type of medium of transaction is concerned. However, a new set of problems emerges when you try to use these cards for what they are actually meant to do, i.e., avail credit. There is a section of a credit limit in every credit card statement that you receive. This is the amount of cash you can withdraw from your credit card every month, but the bombshell drops when you have to shell out an interest rate in the lines of above 40% on the total amount annually. Most banks state the interest rates between 2.7 to 2.85% per month, and since this rate is compounded annually, it adds up to the hefty figure of over 40% on the total amount withdrawn.

Essentially, one should look at this option only in case of extreme emergency. If it’s a planned expenditure, personal loans prove to be a much cheaper alternative. The interest rates for these are generally 15-20% per annum, but the catch is that they generally take 7-10 working days to finally get approved and processed. So there is lack of options in case one needs immediate cash. In any case, the best option is to keep a few extra bucks in your savings account. But if it’s not there, get ready to shell out a hefty interest from your pocket.

Relax; smart investments could save you a lot of tax

2008-03-14T02:32:00.000-07:00

Yes, it’s that time of the year again. The budget has been announced and amidst all the controversies that this is a political budget and that Mr. Chidambram has turned out to be really smart in his efforts to sway the vote bank towards the ruling party, let’s talk about the purpose for which the budget is actually presented, i.e., the common man. Tax-payers have heaved a sigh of relief this year as there is a considerable reduction in the tax-slabs, much to the delight of a majority of the Indian population. While the recent tax structure already accounts for savings of as much as Rs. 44,000 for an income group of Rs. 5 Lac and above, there are a few more tips and tricks that might go a long way in saving you quite a lot more.

Initially, you have to start paying taxes on your income as soon as it crosses the 1.50 Lac mark if you are a man and the Rs. 1.80 Lac mark if you are a woman, as per the new guidelines. Add to that an additional 1 Lac exempt from your income if you have invested in instruments covered under section 80C, which include Provident fund, equity linked savings schemes, insurance plans and fixed deposits, expenses incurred for your children’s tuition fees and repayment of the Principal component of a home loan. Apart from this, an interest payment of upto Rs. 1.50 Lac on a home loan for purchasing a house for personal use is also deductible.

Now let’s get down to business. If you take a home loan of about 20 Lacs at an interest rate of 10%, it would result in an EMI of Rs. 19,300, which would allow you to avail the maximum deduction benefit of Rs. 1.50 Lac from your income. Apart from that, you could also claim a deduction of up to Rs.20, 000 to buy MediClaim policy for your parents, if at least one of them is a senior citizen. Adding to that is a Rs. 15,000 deduction against medical cover for yourself, your wife and children. All of this would reduce your payable tax to only Rs. 6,695, if you are earning Rs. 5 Lac, which otherwise would have been Rs. 56,650, which result in savings of almost 88%. Here’s how the cookie crumbles:

Total income = Rs. 5,00,000
Deduction against payment of interest on home loan	Rs. 1,50,000
Investment in Sec 80C instruments	Rs. 76,000
Tuition fees for your children	Rs. 24,000
Mediclaim Policy for yourself, wife and children	Rs. 15,000
Mediclaim Policy for parents	Rs. 15,000(20,000 in case of Senior Citizen)
Basic exemption (Males)	Rs.1,50,000
Total tax-free income	Rs. 4,35,000
Total taxable income	Rs. 65,000
Tax liability@10%	Rs. 6,500
Education Cess	Rs. 195
Total tax	Rs. 6,695
Total tax if you don’t do tax planning	Rs. 56,650

So the modus operandi is quite clear. You could probably save more than 80% tax through proper investments! The government already has given salaried and self-employed professionals quite a few rebates, but if you can save a few more pennies (quite a lot more actually), then what’s the harm. After all, as they say, a penny saved is a penny earned!

Budget Blues: The claims may be partially true

2008-03-10T23:46:00.000-07:00

They say that necessity is the mother of invention. Until and unless something is really required, it’s seldom done. A most recent example of this is the budget for the year 2008. As expected by many, it was driven by the 2009 general elections. It has often seen that the budget preceding the election year is always lucrative to the rural population of the country, in order to amass votes. But despite all the attractive debt forgiveness and other schemes that were a part of the recent budget and were seemingly meant to benefit rural India, such ploys seldom work as the average Indian voter proves to be a tad smarter than what politicians perceive. These schemes hardly allow the lower strata of society to reap their benefits, courtesy poor targeting and worse implementation by our ministry Babus.

And while we are at that, let’s talk about the ever controversial expenditure schemes. Politicians are actually quite well known to use these so called “public-beneficiary” schemes to reward themselves for their “efforts”, if you may call them, in public welfare. Actually, public beneficiary schemes have a deeper and a different implication in today’s times- make politician the beneficiary out of the money by the public. It would be safe to say that this budget merely followed the trend in this regard. Our beloved FM has, however, gone on for a smarter strategy this time around and altered the tax slabs to significantly reduce the amount that is deducted from the salary of an individual. This is a really smart move so as to influence the high-income groups, who are seldom swayed by flowery speeches and promises that vanish in thin air right after the elections.

Another area of concern is subsidies. They also fall under a similar category as the debt forgiveness schemes and do not benefit the ones whom it is meant to. These subsidiaries are usually for oil and fertilizers and usually benefit the relatively well-off segment. This is also another means to influence specific ‘groups’ of the society for the ruling party’s individual vote-bank.

While the latest budgets stress on the agenda of civil service reforms and outcome monitoring, there is hardly any change in the situation. As every year, the ruling party may have some tricks up its sleeve, and all these facts might be distorted in the blind realities portrayed by them. This is the so-called ordeal, that we call “The Great Indian Budget”. Congratulations, Mr. Chidambram.

Nano financing, with Mega side effects

2008-03-09T22:25:00.000-07:00

Call it “the people’s car”, “the city car” or” the one lakh car”, the Tata Nano has created an unprecedented waves right from the word go. Unveiled in mid-january at the ninth auto expo this year, this out-of-the-box invention from Tata proudly states itself as “the least expensive production car in the world”.

Coming in at a sticker price of Rs. 1.3 lakh ($2500), the Nano seems to fulfill the needs of the day. Coming in with extremely compact dimensions, and a phenomenal fuel efficiency (18km/lt), the Nano is expected to be a hit all around the country and the world. Tatas surely don’t have time for a breather with their dealers already being flooded by the prospective buyers. Industry sources claim that there are some innovative in-house financing options being worked upon through their subsidiary company, Tata Motor Finance. While this is seen as something against the industry practice since hire-purchase deals are signed by dealers and not by manufacturers, there are bigger issues at stake.

The picture of “prospective buyers” still looks rather bright. A car coming at Rs 1 lakh with new kinds of financing options will enlarge the customer base manifold. There are many financing houses already queued up to provide loans for what could be termed as “The Great Indian Dream” in many senses. Considering the fact that coming at such an affordable price, the Nano would definitely be in the wish list of a majority of the lower-income strata of the country. Given that this will be a secured loan, the lender will not loose in case of default as the same is secured by assets. With the enlarged customer base being able to afford the Nano loan, the risk of default will also be spread over a large pool; hence, by the sheer law of large numbers, the risk will be minimized.

Case in point, it might just be the financing houses, loan providers and insurance companies that will fuel the growth of “The Great Indian Dream.” Time to fly high on Nano’s 4-wheels!