Why do we need to Invest in mutual funds and not in a fixed deposit?

A mutual fund is one of the best avenues for high returns. Though an investment in mutual fund is subjected to market risks at the same time, it is likely to earn you more interest than any other investment option including fixed deposits. Read on to know other factors that justify why you need to invest in mutual fund and not in a fixed deposit.

The Risk: The key advantage of investing in mutual funds is high returns that you may get when market is ripe. Unlike FD rates that are fixed and pre-determined for the entire tenure, the returns on mutual fund may vary as per the market conditions. This means, if the market is favorable, you are likely to earn good returns while the interest on MF investment may go down in an unfavorable market condition. So you should consider your risk appetite while investing in a mutual fund.

The Return: FD rates can be pre-estimated. However, returns on mutual fund investment majorly are dependent on how effectively your fund manager manages the portfolio, the instruments you have invested in and also on the market conditions. For long-term capital gains, investing in equity-based funds is effective. 

Liquidity: Mutual funds offer high liquidity but again it depends on the scheme you have invested in. There are open/close-ended schemes, schemes with lock-in period and exit load, etc. all levy different charges for pre-withdrawals. Alternatively, in fixed deposits, the liquidity is based on the deposit term. The option to withdraw money from bank fixed deposit is always available but you would lose out a portion of interest earned.

Investment Cost: The cost of investing in mutual funds depends on the scheme you are investing in. For example, investing in a liquid fund may have a low expense of up to 1% per annum, debt mutual funds generally charge 0.50% per annum to 2.25% per annum and the cost of investing in equity mutual funds may be up to 3.00% per annum. Fixed deposits, on the other hand, have an advantage on this parameter as they include no cost of investing.

Tax Connotation: In FD rates, the tax is charged on the basis of your tax slab (i.e. as per the market rate of taxation) irrespective of the FD deposit term. Investing in mutual fund, on the other hand, is more tax efficient. For example, if an equity-based mutual fund scheme is held for the long-term (more than one year) then it offers a tax exemption. However if the units of equity schemes are held for short-term (12 months or less), a 15% tax is levied. On the other hand, long-term investment in debt mutual funds is taxable at twenty percent with indexation and ten percent without indexation. While the short-term capital gains from liquid and debt mutual funds are taxed according to your current tax slab.

The table below illustrates a quick comparison between FDs and Mutual Funds:-

Deciding factors	Mutual Funds	Fixed Deposits
Returns on Investment	No Assured Returns	Fixed and pre-determined returns
Risk	Medium to high depends on the invested funds	Low risk
Pre-mature withdrawals	Allowed with exit load	Allowed with penalty
Tax Deduction	as per the investing scheme	As per the tax slab
Cost of investment	Yes	No

Note: Both fixed deposit and mutual funds are good investment avenues but before investing in any of these options, consider the amount you want to invest, the deposit term (short or long term) and your risk appetite, like how much financial loss you can bear.

Want to Renovate Your Home - Go for SBI Home Loans

SBI Home loans are the most preferred amongst the borrowers. These are obtainable to people who either want to purchase their dream home or plan to renovate the existing one. This article delves deeper and fetches out reasons why one must choose SBI home loan over others.

1. Lower interest rates: SBI being the India’s largest public sector bank offers home loans at competitive interest rates, which are either ways lower than any other bank in India. The key reason behind this is a scale of operation. Secondly, the State Bank of India has access to cheap funds as its CASA ratio is the best amongst all banks in India.

2. Transparent & quick loan approval process: SBI follows the transparent process of home loan approval. To be precise, there are no hidden charges associated with SBI home loan. Moreover, the processing fee that is levied by the SBI bank from loan applicants is subjective in nature and can be negotiated.

3. Legal Verification: The legal verification process of SBI is much stricter than other banks and financial institutions across India. The SBI home loan is approved only after thorough verification and carefulness. The bank follows a strict modus operandi of loan approval. The sole purpose behind this is to keep the NPAs under control.

4. A wide network of branches and ATMs: SBI is India’s largest bank with a network of over 10000 branches and several associate banks situated even in the farthest part of the country. In addition to this, the State Bank of India offers a wide variety of banking products for commercial and retail customers. SBI has also forayed into the online segment to provide 24*7 banking services for State Bank's Retail and Corporate customers.

5. 24*7 customer care service: SBI is equipped with proficient customer care staff that perfectly caters to the needs of State Bank’s customers 24*7. In fact, many of the State Bank’s staff are cordial with every customer and answer their queries and complaints instantaneously. You can reach them by an e-mail or a call. Customers can also visit the bank branch to get answers to their queries or write to them to raise a query.

6. Online Loan Submission: The State Bank of India provides loan submission online. It allows customers to apply for an SBI personal loan with a click of the mouse while sitting in the comforts of their home.

7. Personalized loan schemes: SBI offers personalized loan schemes at attractive interest rates for working professionals and salaried individuals occasionally. This bank also offers low-priced personal loan schemes during major festivals for both rural and urban applicants to help them easily cope up with all sorts of financial requirement.

The State Bank of India, the largest private sector bank in the country, offers a wide range of home loan schemes to cater the needs of customers of all cohorts. SBI also caters to the NRI audience with a range of home loans. SBI home loans can be applied both online and offline only if the candidate meets the following criteria:-

1. For Salaried Individuals: He/she should be 18 to 70 years and earn a minimum 1.2 lacs per annum.

2. For Self-Employed Individuals: He/she should be 21 to 70 years of age and should be earning minimum 2 lacs per annum.

All you Need to Know About Bajaj Finserv Personal Loan EMI Calculator

These days getting a personal loan to pay off previous debts, medical bills, etc. has become a common practice amongst individuals. However, with every loan comes the responsibility of paying EMIs for years. EMI or the Equated Monthly Installment is a fixed amount of payment that a borrower has to pay to the bank each month to pay off the debt.

If you are planning to get a personal loan, calculating the loan EMI in advance will help you fix a loan amount that you can easily repay. To calculate the loan EMIs, Bajaj Finserv Personal Loan EMI Calculator is one of the easy and simple online tools. Likewise, other calculators, the Personal Loan EMI Calculator from the Bajaj Finserv delivers accurate results at zero cost. All you need to do is to input some essential information related to the personal loan you are planning to apply for and get results with a simple click of the mouse. 

Advantages of using Bajaj Finserv Personal Loan EMI Calculator

1. It delivers 100% accurate results in a minute’s time.

2. Since all the calculations can be done online with the help of EMI calculator, you no longer have to visit the bank to get the details of personal loan.

3. Calculating Loan EMI using calculator is an online process that saves a lot of time and keeps you free from physical exertion too.

4. Bajaj Finserv personal loan EMI calculator comes with a user-friendly interface and thus can be used by everyone single-handedly.

5. This tool helps applicants determine their loan eligibility based on the criteria set by the company. The applicant only needs to provide a few details related to his/her age, monthly income, current loan EMIs, outstanding debts on credit cards and the city of residence to find out his/her personal loan eligibility.

6. Using the Bajaj Finserv personal loan EMI calculator also helps applicants fetch information about the total rate of interest that the applicant has to pay throughout the loan term and also the monthly EMIs payable to the bank each month to pay off the loan.

Talking about the company, Bajaj Finserv is one of the leading financial services company with years of experience in lending, asset management, wealth management, insurance, etc. The company proficiently caters to the needs of the customers of different cohorts. It has a strong online presence and a technologically advances customer care division on which customers can rely on for any queries and apprehensions. Moreover, customers can reach out to their customer care staff through various platforms:

1. Online Bajaj Finserv portal

2. SMS

3. Mobile app 

4. Email

5. Personally visiting the nearest Bajaj Finserv branch

So the crux is that Bajaj Finserv can prove to be the best platform to apply for a personal loan. The eligibility criterion of getting a loan from this company is fairly easy. Applicants of at least 25 years of age with a monthly earning of Rs. 30,000/- to 40,000/- can apply for Bajaj Finserv personal loan. Moving on to the interest rate on personal loans, the company charges a minimum of 13.49% rate of interest based on your person’s eligibility, total earnings, loan amount and loan term. The company also charges a processing fee of 2.25% to 3% of the loan amount.

Apart from a personal loan, Bajaj Finserv offers a range of car loans, bike loans at affordable interest rates decided on the basis of the profile of the borrower, the geography of his/her residence, the loan amount and the Bajaj Motorcycle for which the loan is sought.

Growth vs. Dividend Option in Mutual Fund

Mutual Funds (MF) are one of the safest investment options that promise good returns for the investor. However while making an investment in mutual funds, an investor has to make endless choices, amongst which are choosing between a growth option and a dividend reinvestment option; this choice is the trickiest. Both options have their own set of benefits and drawbacks and deciding which one is better depends on one’s personal needs and requirements. 

What is the Growth option?

By choosing the growth option in the mutual fund, an investor will not get the dividends that are remunerated by the stocks of the mutual fund. Instead, the amount paid to the investor as the dividend is further reinvested. This increases the net asset value (NAV) of the mutual fund. The growth option in the mutual fund is good for investors who do not want regular earnings from their MF investments. Also, it is a sure shot way to maximize the fund’s NAV and realize a higher capital gain, on the same number of shares that he/she originally invested in, at the time of selling mutual funds. In the growth option, the fund holders don’t get more shares; instead his/her shares of the funds increase in value.

What is Mutual Fund dividend?

The dividend reinvestment option in mutual funds is quite different from the growth option. Here the dividend is paid to the investor so that he/she can purchase more shares. Still the payment is not made to the investor; instead, the cash is routinely transferred to the fund managers who buy more funds on behalf of the investor and transfer funds to their mutual fund account. The fund's holders, in this case, realize the capital gain at the time of sale of the units of the funds. Unlike the growth option, investors will gradually have more fund in dividend option than they have started with.

       

The Comparison

The dividend reinvestment option is suitable when the market is high as this is the time when you are more likely to get good returns. Mutual fund dividend is also the safest option for those who want to get regular cash from their investment. This means stay-at-home-parents; retired individuals should pitch for a dividend option. 

The growth option in mutual funds, however, is ideal if you have a steady income and you are not dependent on your investment for money. Here the results are compounded and tend to get higher at the time of maturity. In mutual fund growth option, if you continue to invest for more than one year, your investment will be tax-free. Otherwise, you will have to pay short-term capital gain tax. In dividend option, no such tax has to be paid by the investor. Here fund houses pay the dividend distribution tax.

Conclusion

Concluding the above topic, it can be stated that no mutual fund is perfect for all categories of investors. Thus to determine the most suitable option, you must give consideration to three factors - Cash requirement, Time Frame, and Tax efficiency. In addition to this, you must also do a thorough research on the list of advantages and disadvantages associated with each fund type. 

A mutual fund investment is one of the safest investment options. It is a far better investment alternative than hoarding your money in the savings account. With mutual fund investment, you can not only keep your money safe but also earn good returns, more than a savings account would ever give. One rule of thumb, the more money you’ll invest the more returns you are likely to get on your investment. Also, the time period pays a vital role in mutual funds investment. Investors who invest for a longer tenure are more likely to get high returns and many tax benefits than those who invest for a short period of time.

What is the Process of Home Loan in India?

Today millions of people rely on home loans to buy their dream house. Since not everyone is aware of the right process to acquire a home loan, therefore, a lot of home loan applications get rejected. To ensure your home loan application does not get rejected by the lenders, it is important to be well versed with the bank’s criteria to sanction home loans. In addition to this, an applicant should also know his/her financial obligation towards the bank to avoid a financial slowdown in future. Read on to know more about the home loan and the right procedure to acquire a home loan in India.

Step 1: Your home loan procedure begins with the formal application to the bank. This can be done by visiting the bank, filling up the home loan application form and providing all the supporting documents based on which the bank will determine your home loan eligibility. Most banks will generally ask you to furnish a copy of the following documents:-

  1. Proof of identity

  2. Proof of address

  3. PAN card

  4. Employment details

  5. Proof of income

  6. Bank statement

  7. Educational qualification

Step 2: The second step of your home loan approval process will include the payment of non-refundable processing fee that an applicant needs to provide to the bank. This amount is used to initiate and maintain the home loan process. Recently, banks are waiving the processing fee to attract more home loan buyers. You can even negotiate with the bank’s representative and try to avail this benefit. As not every bank in India waives off the processing fee, you need to ask your bank about this benefit in advance.

Step 3: The step three of the home loan application process includes scrutinizing of your documents and the evaluation of the loan amount you are eligible for. You are required to meet the bank’s representative multiple times so that they can measure your repayment capacity. After the personal interaction, the bank’s representative will visit your office and residence to confirm information that you provided to the bank. 

Step 4: The evaluation of your repayment capacity is important. It may either approve or disapprove your home loan application depending upon how satisfied the bank representative is from your repaying capacity.

Step 5: At this stage, the bank begins to draft your offer letter with the following details:

1. Applicable interest rate

2. Mode of payment 

3. Loan term

4. Fixed or floating rate of interest

5. Terms and conditions associated with your loan scheme

You are required to submit the signed copy of the letter to the bank if you agree with all the terms. An acceptance copy is a duplicate adaptation of the offer letter that you must provide to the bank for their records. Administrative fees, if charged by the bank is deposited at this stage.

Step 6: After the distribution of the offer letter, followed by your acceptance, the bank will verify the property, before disbursing the loan amount. For this, you are required to submit the original copies of the title deed, no objection certificate (NOC) and other supporting documents that the bank may ask for. The bank will conduct a legal check of your property to ensure that the title is clear and there is no dispute associated with the property. In case of an under-constructed property, a technical evaluation will be conducted in which the location of the property, quality of construction and progress of the project will be checked. Once all the formalities are completed, your home loan amount will be disbursed by the bank.

Note: A home loan is a secured loan wherein your property is the collateral. Which means that the bank can claim your home if you’re unable to pay off home loan amount on time.

Features and Benefits of using Home Loan Calculators

Buying property is once in a lifetime investment for many. But instead of squandering all your savings to buy your dream home, you must apply for a home loan to keep your stash safe. There are many banks in India that offer home loans at attractive interest rates for minimum 5 years to maximum 25 years of tenure. If you are planning to get a home loan but don’t know how to get started, we advise you to use the home loan calculator to calculate the EMI (equated monthly installments) in advance by providing the principal amount you want to apply loan for, the expected loan term and the interest rate at which the loan is being offered.

Home loan calculator is an online tool that allows people to calculate loan EMI in advance by filling in the principal loan amount you wish to avail, loan term and the rate of interest at which the lender is offering you the loan. The online EMI calculators are user-friendly, easy to use and quick to perform. They give instant results with graphical representation. EMI calculators are different for each type of loan, which means to calculate a home loan EMI, a home loan calculator should be used, for a car loan, a car loan EMI calculator is used and so on.

The features of home loan calculator include:-

1. Quick process and instant results: A home loan calculator delivers instant results without wasting a minute of your time. It saves you from physical excursion by eliminating the need to stand in long queues at the bank. Calculating loan EMI using a pen and paper can take you hours. But with an online calculator, you can make the same calculations with just a click of the mouse.

2. Zero cost: Home loan calculators are free of cost and are easily available on the bank’s official website and also on several third-party websites. Using home loan EMI calculators, you can make as many searches as you want with different principal amounts, loan terms, rate of interests and processing fees so as to get appropriate EMIs that you can easily pay without disturbing your monthly budget. In the EMI calculator, you can either use the slider to adjust the values or type-in the numbers manually if you want to enter more specific values. Once the value is changed either using the slider or manually, the online calculator will recalculate the EMI amount.

3. Accurate: The results you get from the home loan calculator are 100% accurate and reliable. It is way better than using pen and paper to calculate the EMI of a home loan.

4. Saves times: Home loan calculators allow individuals to save a lot of time that would otherwise be spent in visiting different banks, standing in long queues and talking to the bank’s representatives individually. 

5. Amortization table: Apart from calculating EMI, home loan calculators also provide amortization table that shows you how your loan will progress with time. In addition to this, home loan calculator will also provide a pictorial representation of each and every data points like principal outstanding, time remaining, interest rate, etc. 

All in all, home loan calculators have made the life of borrowers simpler and convenient. It has also eased the loan getting process to a larger extent and reduced the bank visits significantly. An EMI is an equated monthly installment payable to the bank or other financial institutions every month till the time the entire loan amount is fully paid. Finding the EMI in advance using online calculator will help you manage your finances in a better manner and fix your future expenditures carefully.

Opening a Demat Account To Invest in Mutual Funds

Mutual fund (MF) has become one of the choicest investment options these days owing to the affordability, high returns, and easy options to liquidate. However, there are many people who are still perplexed about the concept of MF. To help such individuals, here’s a detailed view into the world of mutual funds:

What is Mutual Fund? 

A mutual fund is a type of online investment wherein the money from several investors is collected and further invested in different funds that fit your financial goals. The primary advantage of investing in the mutual fund is that you can start investing in MF from Rs 500 and go higher gradually. The second thing that woos more customers towards MF is that there are fund managers who invest your money accordingly, so you need not worry about anything, just sit back and watch your investments grow with time. 

Is it important to open a Demat account to invest in mutual funds? 

It is not mandatory to open a Demat account to invest in mutual funds. Instead one can invest in mutual funds online with the help of three lucrative ways:-

1. Through Asset Management Company (AMC) Websites: There are many companies which allow individuals to invest in mutual funds online. For this, you need to first visit the particular website, download and fill up the scheme form from the website and submit it with the required documents such as PAN card, KYC letter. In addition to this, you must also apply for the personal identification number (PIN) to instigate easy transactions online. Once you receive the folio number along with the PIN, you can easily do other transactions in the folio with the help of your bank account. If you want to invest in other types of funds, you need to repeat the same method again. This is one of the easiest ways to invest in MF and this service comes absolutely free of cost.

2. Via Brokers Online: There are a number of online brokers associated with the mutual fund's exchange platforms. Amongst several brokers, there are few big-scale brokers who are associated with the NSE or BSE, the most popular MF exchange website. To begin with, all you need to do is to visit the online trading platform of the particular broker, select the scheme you want to invest in. The extent of your ownership will be directly credited to your Demat account. In case you do not have a Demat account, you can go for a SIP and invest the amount. The charges associated with this process are not too expensive and vary from one broker to the other. 

3. Independent Online Portals: Some independent online platforms are also available where investors can buy and sell MFs at no added expenditure. To start investing with this method, you simply have to sign up on any of these platforms, fill the form available on the website, take a printout of this pre-filled form, sign it, and send the form with the attached copy of PAN card and KYC acknowledgment letter. Upon completing this process, you can purchase MFs from various fund houses. These portals are in partnership with the top-notch banks across the country for superior online payments service. Apart from offering the service at no additional cost, these portals also work hard to provide an affable, pleasant experience to the investors. On top of it, these portals also help you keep a close eye on your funds and provide an appropriate research and testing platform to help investors build an ideal MF portfolio.

So now that you know the right ways to invest in MF, you may initiate your research and start investing!

How to Check My Business Credit Score?

The business credit score is a primary thing to know about any company you are planning to do business with. In order to do that, you should first purchase a business credit report by following three simple steps mentioned below:-

Visit credit bureau’s website: - There are three different credit bureaus that compile data on business’ credit history: Dun & Bradstreet, Experian, and Equifax. You can take help of any of these to get a business credit score of the desired company.

Conduct a search: After visiting the credit bureau’s website, your next step is to find a company whose credit history you want to search. To search, all you need is the company’s name, along with the state and the country where they conduct their business. The Dun & Bradstreet website searches for the company’s D-U-N-S number. It is an identification number that keeps the track of businesses. You can find the D-U-N-S number on the basis of company’s name and the place where it is operational. While on the Equifax and Experian website, you can check the credit history of the business by its name and address.

Make a purchase: Once you get the credit report of a company you are planning to do business with, all you are left to do is to purchase a report. While there are levels of details with respect to reports that you can obtain from bureaus, listed below is the price of the basic credit report as of 8-2016 of different credit bureau website:

• On Dun & Bradstreet website, the basic business credit report costs $61.99.
• On Equifax, the basic report costs $99.99
• And on Experian website, the cost of basic report is $39.95

Once you purchase the business credit report, make sure you understand the report. For example in Dun & Bradstreet report, the PAYDEX score, credit score, and financial stress score are some important things to look at.

• The PAYDEX score determines whether or not the company pays on time, based on the history of on-time payment. It is calculated from 100 to 1, with 100 being the best score and 1 being the worst.
• Credit score, however, predicts the future payments based on the payment history and comparison from other companies dealing with the same. It ranges from 1-5 with 1 being the worst and 5 the best.
• The financial stress score predicts the likelihood of severe financial difficulties in the next year. It ranges from 1-5 and is based on the net worth of the company, the proportion of on time payment, legal action taken against the company and the current debt on the company.
• On top of it, Dun & Bradstreet also suggest how much credit should be extended, and how risky it would be. 

Interesting Post: How to check an individual's credit score?

Equifax business credit score offers three different assessments for businesses

• The payment index: the payment index is similar to Dun & Bradstreet’s PAYDEX score. It determines the history of online payments.
• The credit risk score: It calculates the risk of the business becoming delinquent on payment based on company size, the utilized credit limit, the age of the account, etc.
• Business failure score: It measures the likelihood of your closing. It is calculated on the basis of credit utilized relative to the business credit limits, age of the oldest credit accounts and number of delinquent or late financial accounts.

Understanding an Experian business credit score

An Experian business credit report calculates age and size of the company deeply as compared to other business credit rating bureaus.

Calculating Loan Installments with an EMI Calculator

Prior to getting a car loan, home loan or any other loan, calculating loan installments is a must. It gives a clear idea about how much extra money you have to shed out each month as part of the loan installment. Generally, people use loan interest calculator or loan installment calculators to calculate the EMI. Reason being, these are easily available online, have a user-friendly interface, and provide instant answers to your queries.

But before using an EMI calculator, you must understand the loan APR concept. Banks in India not just charge the interest on loans. When getting a loan, a borrower has to pay several kinds of non-refundable fees including the processing fee, documentation charges, etc. when getting a loan. Loan APR, known as a yearly percentage rate thus represents the actual cost of the loan after considering these one-time costs associated with bowing money from the bank. It is, therefore, an all-inclusive measure that reflects the net effective cost of your loan on the yearly basis.

How to calculate loan installments using EMI calculator

You can find EMI calculator at the home page of various bank websites.  After entering the loan amount you wish to borrow, along with the interest rate (on that particular loan), and tenure, you can determine the EMI. The process is simple and saves a lot of time.

Other easy ways to calculate loan installments

Using Excel - You can use Microsoft excel spreadsheet to calculate EMI. However, the process here is a bit different than EMI calculators which are automated and deliver results quickly by entering some basic information. In Excel, the formula for calculating EMI is PMT (rate, nper, pv) where:-

Rate = rate of interest

nper= number of periods

pv = value of the loan or the present value

So now let’s suppose you bought a car in 2015 worth Rs 5.95 Lakh after making a down payment of 1.5 Lakh. You took the auto loan for the rest of the amount at 12% interest rate for four years. Then your EMI would be

=PMT (0.12/12, 4*12, 445,000) = 11,718

Let’s take another example, suppose you are paying quarterly installments on a loan of 10 Lakhs at an annual interest rate of 10% for 20 years. Then instead of 12, you should divide the rate by 4 and multiply the number of years by 4 to calculate loan installment. (In case of half yearly payment, you should divide the rate by 2 and multiply the number of years by 2 to get the result)

Using the Mathematical Formula- For those who have limited access to the internet or love doing simple mathematics, they can use mathematical formula (EMI = [P x R x (1+R) ^N]/ [(1+R) ^N-1]) to calculate loan installments.

Here, P stands for the principal or the loan amount, R stands for the rate of interest, and N stands for a number of monthly installments. You can use this simple formula for calculating EMIs.

The Bottom Line

Getting a loan is a common thing nowadays but to make sure that you pay back the loan amount on time, it is good to calculate the EMI installments in advance. Also, don’t apply for a bigger loan if you can afford to pay back on time. Do a thorough research on the loan type. Choose your loan term wisely (for longer loan tenure, you will be paying higher interest whereas, for a lesser term, the EMI payments will be high with lower interest payments).Understand your loan scheme properly before signing on the dotted line. Remember, every late EMI payment will affect your credit score and you may face problems while getting another loan in future. So calculate everything before making a final decision.

12 Interesting Facts About Gold

India’s infatuation with gold is not a secret. For centuries, the glittering metal has been an integral part of India’s history, culture, religions, and traditions. In spite of increase in gold rates, Indians have not stopped to buy or invest in this beautiful and valuable metal. India’s love for gold is so much that the recent survey report by the World Gold Council shows that in the first quarter of 2017, the gold purchases made from India were accounted for a little over one-fifth of world gold jewellery demand. Indians may have an undying relentless love for gold, however, there are many facts that the Indians and many people in the world do not know about it. They may know the current gold rate but there are various interesting facts on its production and consumption that will for sure leave them amazed. To know more, read on.

1.    It is the most malleable and ductile metal in the periodic table. Even at its highest purity of 99.99 percent, it can be readily cold shaped to prepare 10 mm thick wires or 0.2 mm thick foil. Since it is soft, it can be highly polished. It can also be beaten into a very thin translucent foil.

2.   When a ray of light is incident on the surface of the translucent gold foil, the foil acquires reddish/yellow tinge. The light that passes through it is somewhat blue in color.

3.   It is one of the least reactive elements and therefore resistant to most acids and rusting. However, this yellowish metal can dissolve in ‘Aqua Regia’ (a solution of nitric acid and hydrochloric acid) and the alkaline solution of cyanide (a solution used for mining and electroplating).

4.   To change the color and strength of the gold, it is often alloyed with other metals such as copper, which is used to change its color from gold to rose gold. Gold’s purity is measured in ‘Karat,’ which is denoted by the letter ‘K’. The word is derived from the Arabic word “qīrāṭ,” which means ‘the fruit of the carob tree.’ The word also means ‘weight of 4 grains.’ Even in the olden times, the word was a unit of mass but was used to measure gold. The 18K gold has 750 parts of pure gold per 1,000.

5.     The gold nuggets are hard to find. They are even rarer than a five carat of diamond. Till today, ‘Welcome Stranger’ is the largest gold nugget that has been ever discovered. The nugget is 10 by 25 inches in size and was discovered in Australia by discovered by John Deason and Richard Oates on 5th February 1869. It was found about two inches below the ground surface and at that time was reported to yield 2,248 ounces of pure gold.

6.   Since the starting of the civilization, about 175,000 tonnes of gold has been mined by the mankind.

7.     In Cabarrus, North Carolina, the first gold nugget discovered was of 17 pounds. Also in 1803, when more gold was discovered in North Carolina, the first gold rush in the United States began.

8.    The Amersham Corporation of Illinois use the tiny spheres of gold to tag particular type of proteins. It is a method to know their functions in the human body, which will further help in the treatment of a disease.

9.     China tops the chart of top ten producers of gold in the world. South Africa was the crowning glory of the list until China overtook this position in 2007. According to a report by the USGS, in the year 2015, China had mined 455 metric tons of gold. Other countries that follow on the list include Australia, Russia, United States, Canada, Peru, South Africa, Mexico, Indonesia, and Uzbekistan.

10.  As per a report by the USGS, the gold production worldwide has only increased over the years. In the report, the gold production in 1994 was about 2,300 tonnes per year and in the year 2014, it reached somewhere near to 2,860 tonnes.

11.  Worldwide, gold is most commonly used in the form of gold jewelry. Therefore, the world gold consumption is measured by the gold jewelry consumption. Among all the nations across the globe, India is the biggest gold consumer. According to the latest report by the World Gold Council, in the first quarter of 2017, the gold jewelry demand from India was 92.3 tonnes as compared to 22.9 tonnes in the U.S. another country that closely follows India in the race is China.

12.  The gold rates have only increased with the time. In 2005, gold was about 57 percent cheaper than platinum. Even though over the last decade, the gold rates have increased to nearly as high as the price of platinum, the metal has still remained more popular among Indians than platinum. Even when the current gold rate in India is high, there has been no significant decline in its demand.  

Which state in India has the highest consumption of gold?

In India gold traditionally signifies not just status, wealth and prosperity, but it is also considered to be an auspicious metal. Not just Indian households, but some of the temples have vast reserves of gold and if all this were to be put together and given to the government, then India could be the richest country in the world. The consumption of gold in India is increasing every year at an average of 18% per year. According to the cultural heritage of the country, gold is considered to be the best choice of precious metal when it comes to making jewelry and also investment. Due to rupee terms the price of gold is lower, and there are also the demands related to weddings and festivals which help in enhancing the demand for this precious metal. The jewelry consumption in the country is a huge 703 tonnes and it remains in the top position for gold consumption throughout the year for the second year.

South India and especially Tamil Nadu is the largest consumer of gold in the country and this is why the gold rate in Chennai becomes important. Even in the south of the country the demand and supply for jewelry is growing every year. The southern states of Tamil Nadu, Karnataka, Kerala and Andhra Pradesh hold around 40% of the country’s overall gold consumption. Here gold is mainly used for making jewelry although even South Indians are considering the importance of this precious metal as a means of investment. 

Many temples in the South of the country are made of gold and also get huge offerings of gold from devotees. The investment in gold in this part of the country has risen to Rs. 2,440 crore in the year 2016 which is really a jump of 150% over the year 2015. The cost of gold has also increased by 27% as compared to the year 2015. When you compare this to other regions then the western region consumes 25-30%, the northern region consumes 20-25% and the eastern region stands at 10-15% gold consumption in the country.

You can witness the high growth in gold consumption in Tamil Nadu and rest of the south Indian states by the proliferation of jewelry showrooms, which range from large outlets to small traditional jewelry shops. This increase is partly because the tradition of buying gold for jewelry purposes is also now becoming a means of investment in the state of Tamil Nadu. This is why people in this region nowadays keep an eye on the gold rate in Chennai, because it affects the rate of gold in the rest of the region. The VAT is also as low as 1-2% on gold which affects the price of gold in Tamil Nadu and it is comparatively lower than the rest of the country. This has also led to the increased demand for gold in this state. The same is true for the rest of the southern region as well.

Then again the gold jewelry stores in the south also charge reasonable making charges. This also fuels the high demand of gold especially in Tamil Nadu thereby increasing the gold rate in Chennai. Although new trends in designs of gold jewelry are slowly becoming popular especially among the younger generation, but traditional designs and styles are still given preference. From early November onwards there is a rise of demand for gold in the country and especially in the South because people consider it auspicious to buy gold, during the Diwali festival and especially on the day of Dhanteras. The impact of depreciation of the rupee has led to the increase in the gold rate of Chennai as well as other parts of India, but this has not deterred the people of India from buying their favorite precious metal.

How to use EMI Calculator to Calculate Your Personal Loan Requirements?

EMI (Equated Monthly Instalment) is the amount a loan borrower has to pay through the loan time period to payback the borrowed amount. Each EMI is a chunk of the amount due in addition with the interest due. So, the tool that can be used to determine your EMI payments is the Personal Loan EMI Calculator.

Generally, in the initial tenure of the EMIs of a personal loan contribute more to the payment of the interest due in comparison to the principal sum. However, in the due course of time of the loan, following EMIs will lead you towards paying back the principal sum.

Calculating EMI yourself?

Most of us would wonder why they should calculate the EMI. Most of us will be like,” Are you really kidding me, I a pathetic at my math and you expect me to calculate my personal loan EMI?”

One should be very aware of what he has to pay and why is he paying that amount. So, put an end to the tedious task of calculating your EMI with the EMI calculator.



                       


How do you calculate the EMI?
EMI calculator for calculating personal loan is a very user friendly tool for calculating the per month instalments. This EMI calculator is user friendly tool and involves the following steps:

• To start with chalk out a plan, regarding the loan you want. 
• Fill in details like the amount you want to borrow, Loan time period and rate of interest. 
• The next screen will display the Interest rate and time period of a specific amount that you what to apply for. 
• Now, use the sliders to modify. By doing this you reach to an EMI which is suitable for your pocket. 
• Click “Get quotes” tab which is located below the EMI you have calculated for yourself. 
• By clicking this you get redirected to a page where you will be required to fill a questionnaire which would have questions related to you. 
• Fill in the details and see what loans are you eligible for. 
• Now, simply choose a loan which suits you the best from the customised list you just got and you are good to go.

So, the personal loan EMI calculator just saved you from a lot of tedious calculations, calculated your EMI in a very minimal time and most importantly it just gave you a customised list of options based upon your loan repayment capability.

Housing Loans Interest Rate Subsidy

Credit Linked Subsidy Scheme (CLSS) is aimed at providing financial benefits to the middle-income and lower-income group. Under the scheme, home loans of up to Rs 9 Lakhs are eligible for a 4% subsidy for those whose annual income is up to Rs 12 Lakh. Housing loans up to Rs 12 Lakhs are eligible for a 3% interest subsidy provided that the borrower’s income is up to Rs 18 Lakhs per annum. The scheme has been made effective from 1^st January 2017, although the guidelines came out later. Home loans sanctioned since Jan 1 will be eligible for the subsidy. However, the applicant earlier should not have a house registered in his name since the scheme is only for first-time homebuyers.

Highlights of Credit Linked Subsidy Scheme

CLSS, sponsored under Pradhan Mantri Awas Yojna (Urban), has come out as a big relief for the mid-segment homebuyers. At the same time, it encourages private builders to launch affordable housing projects in prime locations. Let us look at the key highlights of CLSS-

1. The CLSS is meant for the first-time home buyers, so those who already have a house registered in their name would not be able to get benefits of this scheme.

2. Though the operative guidelines were announced only in March 2017, loans that were sanctioned and are in process since 1^st January 2017 will also be considered.

3. To get benefits under CLSS, beneficiaries will have to apply for the same with their lenders.

4. All commercial banks, regional rural banks, housing finance companies, urban and rural cooperative banks and other financial institutions giving out housing loan are eligible to provide benefit to their customers under the scheme.

5. The amount of interest subsidy provided will be reimbursed to the lender bank from the National Housing Bank (NHB) and the Housing and Urban Development Corporation (HUDCO).

Process of Credit Linked Subsidy Scheme

To understand the process of how to get benefit under Credit Linked Subsidy Scheme, one has to know the following points first-

·      Interest subsidy is provided for the purchase/construction of the house with carpet area of up to 90 square meters for beneficiaries earning up to Rs 12 Lakhs per annum. For those earning between Rs 12 Lakhs and Rs 18 Lakhs, this limit is 110 square meters.

·        The tenure for this loan is taken as 20 years or that preferred by the beneficiary, whichever is lower.

If the beneficiary meets the income and loan eligibility criteria, he/she should apply for the interest subsidy under CLSS with the lender. The lending bank or financial institution will verify the details and if satisfied, it will grant the subsidy. The entire amount of interest subsidy is transferred to the beneficiary’s account in one go and the same amount is reimbursed to the bank from the National Housing Bank or HUDCO.

Extent of EMI Reduction under Credit Linked Subsidy Scheme

To be precise, CLSS reduces the beneficiaries’ EMIs by Rs 2,000 per month.

According to the MD and CEO of National Housing Bank (NHB), an interest subsidy of 4% on a loan of Rs 9 Lakhs will bring down the monthly EMI by Rs 2,062. Similarly, interest subsidy of 3% on a loan of Rs 12 Lakhs will reduce the EMI by Rs 2,019 per month. This calculation has been done with an average interest rate of 8.65%.

About Pradhan Mantri Awas Yojna (PMAY)

Pradhan Mantri Awas Yojna is a scheme catering to the housing needs of mid-income, low-income and economically weaker sections of India. PMAY consists of four important aspects- building homes for slum dwellers, providing financial assistance to homebuyers in the form of credit linked subsidy, providing financial assistance to private developers who wish to develop affordable housing projects and extending direct financial assistance to the EWS.

Credit Linked Subsidy Scheme is a major step towards encouraging people to buy their dream homes and giving an overall boost to the real estate sector.