SBI Bank Home Loan

Home Sweet home , which is closer to the heart, which everyone wants to possess and decorate with inspirational ideas which can be duplexes, mansions & apartments alike , this dream will come true by SBI Home Loan.

SBI offers several loan products to unleash this dream. SBI has got many awards in the survey conducted by various research agencies, this is the result of best guidelines, ethics, and ideas that have proven from many years of the experience in delighting the customer.

SBI Home Loan have an edge of the below points;-

• Low Processing Fees.
• Stack of exclusive benefits.
• Lower interest rates , with added advantage of daily reducing balance.
• No Hidden cost or administrative cost.
• The convenience of paying the excess amount of the loan, this reduces the interest payment for all these pre-payments there are no penalties.
• Branches spread over the country to cater to the needy people.
• Home loan also available as an overdraft. To Optimally utilize the surplus funds.

Criteria for availing the SBI Home Loans:-

1. The applicant should be 18 years for salaried class and 21 years for the business class, up to 70 years.
2. Salaried or Self Employed with regular source of Income.
3. All appropriate documentation like Form 16 , Salary slip , 3 months Bank Statement for the salaried class and Filled ITR or Form 16 and 6 months Bank Statement for the self employed are the minimum documents required for processing the SBI bank Home Loan.

The foremost step involved in buying the property is locating the property with all the correct property documentation & after the docs are verified thoroughly from your side check your eligibility that matches the lender’s criteria.

Eligibility Criteria for availing SBI Bank Home Loan :

• Applicants should be between 18 years to 70 years , 21 yrs for the Self Employed.
• Minimum Income should be Rs.1,20,000 p.a for salaried and Rs. 2,00,000 for salaried persons.
• Home Loan tenure is one of the vital factor in deciding the home loan process, SBI helps its clientele in selecting the tenure up to 30 years (or) Up to the age of 70 years whichever is lower for the repayment period.
• Loan eligibility depends on the age of the borrower. Younger people will have more eligibility amount and loan eligibility can be increased by adding spouse as co-applicant.
• SBI offers up to 90% of the value of property, depending upon the other eligibility criteria.

SBI Home Loan EMI Calculator.

SBI Home Loan EMI calculator helps in calculating the approximate EMI for the Home loan for a particular loan amount and interest rate, along with the tenure .

EMI is calculated per lac of loan, which is augmented with the loan amount.

SBI Home Loan Calculator gives good idea about the EMI charge on the applicant for each month to plan the funds before deciding on the Home Loan.

SBI Home Loan Calculator takes into consideration , loan amount , tenure of the loan and interest rate, which is floating/ fixed to calculate the estimated EMI. This makes it very easy yardstick to get the info.

Below are the glimpse of the SBI Home Loan Calculation.

SBI Home Loan Per Lakh EMI Calculation on Yearly Basis

Interest Rates	Loan Tenure	Lowest EMI Per Lakh
9.10% – 9.30%	30 Years	Rs.822.68 – Rs.826.30
9.10% – 9.30%	25 Years	Rs.856.38 – Rs.859.83
9.10% – 9.30%	20 Years	Rs.915.87 – Rs.919.11
9.10% – 9.30%	15 Years	Rs.1029.19 – Rs.1032.19
9.10% – 9.30%	10 Years	Rs.1280.33 – Rs.1283.05
9.10% – 9.30%	5 Years	Rs.2087.99 – Rs.2090.43

SBI Home Loan EMI Calculator is very low and at a competitive amount per lac of loan.

Which is Rs. 815/- for Men and Rs.812/- for Women.

There are some preferential points for the SBI Bank Loan.

1. SBI Processing fees charges are very low in the India.
2. 0% Processing Fee on SBI approved projects till 31st December, 2016.
3. 0% Processing Fee for takeover of Home Loan proposals till 31st December, 2016.
4. Presently we have SBI Home Loan Festival till 31.12.2016 which started in early November. This offer saves borrowers to save Rs.21.98 per lac /month and eventually Rs.158,256 for a tenure of 30 years. Which only premier bank like SBI can offer to its customers.
5. Moratorium Period /Re-payment Holiday which is another aspect which has an edge in deciding the Home loan. SBI Home Loans comes with Moratorium period options.
6. Borrowers are eligible for the Tax benefits on the interest and principal component of the EMI under the Income TaX Act of 1961.
7. SBI Home Loan interest rates are modified according the Repo-rates of the RBI.
8. SBI comes up with various Home Loan products considering the latest trends in the economy , financial market coupled with the policies of the Government.

Below are the SBI Home Loan products at a glance.

1. SBI Flexipay Home Loan.
2. SBI Maxgain.
3. SBI Hope Loan.
4. NRI Home Loans.
5. SBI Realty.
6. SBI PAL
7. SBI Tribal Plus.
8. Gram Niwas.
9. Sahyog Niwas.
10. SBI Privilage Home Loan.
11. SBI Shaurya Home Loan.
12. SBI Top Up Home Loan
13. SBI Reverse Mortgage Loan.

The above products of the SBI caters in all the sections of the society.which is rare in the banking sector in our country.

In recent times, with more and more Indians go out of the country to pursue their professional desire, NRI Home loans are very frequently opted. With minimum employment tenure in India and abroad for 2 years, with no maximum amount of limit for the loan to opt. This scheme covers a large chunk of NRI, who want to have a dream home in their home town.

SBI Top up Home Loan , is also extensively used product of the SBI Home Loan. In this scheme borrower who has the pleasing track record are extended to the top up loan to meet the additional fund requirements up to Rs. 5,00,000/- with slighter processing fees.

How Budget is Prepared and Passed in India?

Budget process in India

Budget process in India is a detailed concept that can be categorized into different stages:

1. Formulation of Budget;
2. Enactment of Budget;
3. Execution of Budget; and
4. Legislative review of budget implementation.

Formulation of Budget

Budget division in the department of economic affairs under the Ministry of Finance is responsible for producing the budget in consultation with NITI Aayog and spending ministries.

Drafting of Budget

An annual budget circular containing detailed instructions for preparation of estimates for the next year is issued by the Budget division. This circular is issued to all Union government ministries/departments.

The ministries shall provide following figures relating to their expenditures & receipts:

• Budget estimates;
• Revised estimates; and
• Actual figures

For example, if the union government is preparing budget for 2017-18, it would be prepared during Sept.’16 to Feb.’17. Here the estimated receipts & expenditures for 2017-18; called as budget estimates; shall be required to be approved by the Parliament. Also the revised estimates for the ongoing financial year 2016-17 shall be presented. The third figure required to be reported by the ministries shall comprise of the actual receipts and expenditures for the previous financial year 2015-16.

The budget estimates for next financial year shall be provided by ministries after discussion with the Central Planning Commission.

The finance ministry has been raising its voice for reduction of fiscal and revenue deficit from past few years; due to the targets set by the Fiscal Responsibility and Budget Management Act and its rules. Hence presently, it makes it mandatory for the Union government to show the revenue deficit as nil and the fiscal deficit as less than 3 per cent of GDP. This implies, the total revenue expenditure shall not exceed the total revenue receipts by even a rupee. Also the new borrowings by the government in a financial year shall not go beyond 3 per cent of GDP relating to that year.

Final stages of Budget Preparation

After the ministries & departments send in their demands, extensive discussions are held between Union ministries and the Department of Expenditure of the finance ministry.

Generally in the month of January, more focus is inclined towards the finalization of estimated receipts. With an estimate regarding the total resources required to meet the total expenditures in the next fiscal year, the focus of the finance ministry is on the revenue receipts for the next fiscal year.

After the completion of pre-Budget meetings by late January, the finance ministry examines the budget proposals and makes the required alterations. At this stage the proposals are then presented to the prime minister and consultations are made. In case of any conflicts between finance ministry and any other ministry relating to the budget, the resolutions are made by the Union Cabinet.

Presentation of Budget

After the compilation of all figures for budget by the budget division of finance ministry and National Informatics Centre, the budget is presented in the Lok Sabha on the day as directed by the president. 

Budget is presented in Lok Sabha by the finance minister highlighting the key estimates & proposals. After the conclusion of budget speech in Lok Sabha by the finance minister, the ‘Annual Financial Statement’ is laid in Rajya Sabha.

No discussions are carried out on the day of presentation of budget.

Passing of Budget

The budget is carried out in two parts: general discussion & detailed debate.

General discussion takes place in Lok Sabha for 2-3 days after presentation of budget. The detailed debate includes discussions on demands for grants by relevant standing committees. Appropriation Bill is put up for vote in Lok Sabha, post demand for grants.

Later; Finance Bill is considered and shall be passed by Parliament as Money Bill. The bill is required to be passed by Lok Sabha & Rajya Sabha and receive consent of the President within a span of 75 days of its introduction.

The budget process finally comes to an end after being passed and signed by the President.

What is the best bank for car loan?

Choosing the best bank for car loan can be a hefty job since there are several banks that offer varying interest rates for car loans. Besides, this rate of interest is changeable depending upon the tenure for which the loan is availed, the quantum of the loan and income source of the borrower (whether business or job). 

It is difficult to name any particular bank for car loan since no bank charges the same lowest rate of interest at all levels and tenure of loan amount. 

Banks and their Rates of Interests

From the above table, it can be said that the State Bank of India could be a fair choice given its reasonable rate of interest on loan for both men and women. Let’s highlight the other factors that make SBI bank an ideal choice when seeking car loans. 

Why the SBI?

Compared to other banks, SBI offers the best SBI car loan interest rate for financing your four-wheeler. The loan available from the bank comes with lowest rate of interest, minimal paperwork, prompt disbursement and lowest EMI. 

What are the salient features of SBI car loan interest rate scheme? 

1. Longest repayment period (7 years) 
2. Lowest EMI and interest rate 
3. The SBI car loan interest rate on the loan is based upon Daily Reducing Balance
4. The loan from SBI does not include any advance EMI 
5. The SBI loan scheme includes financing on-road price (which includes Annual Maintenance/Extended Warranty/Total Service Package/Cost of Accessories, Registration
6. No foreclosure charges or pre-payment penalty 
7. Also, the scheme incorporates optional SBI Life Insurance coverage 
8. The scheme includes reimbursement of finances for cars that are bought out of your own personal funds at a rate of interest that is applicable on New Car financing
9. Overdraft facility is offered 

Remember, you can use the SBI car loan interest rate scheme for buying passengers cars, SUVs, Multi Utility Vehicle (MUV), etc. 

What is the eligibility for availing SBI car loan?

Individuals should be aged between 21 years and 65 years of age. He/she should belong any of the three categories as below:

1. The person applying for SBI car loan interest rate should be a regular employee of state or central government. Or, he should be an employee of public sector undertaking or a reputed company or a private firm. Professionals or partnership firms or businessmen or professionals or persons engaged in agricultural and allied activities. 

2. Also, the income of individuals will determine whether the person can apply for car loan. The net annual income of the applicant should be minimum of Rs. 2,50,000. The income of the co-applicant should be gross taxable income of a total of Rs. 4,00,000 p.a.. The net annual income and the applicant clubbed with the co applicant should be Rs. 4,00,000. 

3. The maximum loan amount that you can apply for includes 48 times of the net monthly income. 

There are certain documents required for applying for SBI car loan interest rate petition. This includes: 

Salaried person- Bank statement for last 6 months, proof of identity, 2 passport sized photos, income proof with last salary slip. 

Non-salaried person or businessmen or professional- Proof of address and identity, state of bank account for past 6 months, 2 passport sized photos, income proof 

Person engaged in allied and agricultural activities- Bank statement of last 6 months, proof of identity, proof of your address, 2 passport size photos, Ownership proof of land that the person claims to be his own, documentary proof of running activities such as poultry, plantation, dairy, etc. 

Thus, if you want to buy a four wheeler, opt the SBI car loan interest rate that can give you maximum benefits.

How to calculate home loan EMIs

Home loan EMI calculation is a very tedious and time-consuming task if done manually. Hence, most banks provide EMI calculators on their websites to aid customers in making wise financial decisions.

 

A home loan EMI (equated monthly instalment) is the amount that is payable every month to a financial institution, from which the loan has been taken, from until the loan is repaid. It compromise of principal and the interest amount. That amount calculated by the tenure, the number of months, in which the loan to be repaid. This computed amount paid on monthly basis. Initially in the EMI, the interest amount is more and principal is less but gradually the visa -versa happens when getting close to repayment. The four major factors taken into consideration for an EMI are:

1. Amount of the Principal: It is the amount that is borrowed by the customer and it forms the major part in determining the EMI of the loan.
   
2. Interest Rate: The borrower has taken the loan from the market at that rate. It is most important factor in determining the EMI of the loan cause the more the interest the more will be the EMI and if lesser interest then less EMI.
   
3. Tenure of Loan: It is the timeframe required to repay the loan to the organisation or the banks. The longer the timeframe the lesser the amount of EMI but that would also mean higher total interest outflow.
   
4. Computation Method: The methods taken into consideration to calculate the EMI also becomes a crucial factor in paying the loan. The various Methods mentioned below:

1. Annual Reducing Method: in this method, the EMI though paid by the borrower at the end of each month, but the principal amount and interest rate calculated at the end of the year. However, it not that beneficial for the lender as he keeps paying the interest amount of the principal paid already.
   
2. Monthly Reducing Loan: It is very easy, simple and safe and most commonly used method to calculate EMI. The principal reduces with every EMI paid each month and the interest being calculated on the outstanding amount.
   
3. Daily Reducing Loan: as obvious by its name, the principal reduced each day with the payment of EMI interest charged on outstanding balance but paying daily is not feasible so it is not that common method.

EMI Formula:

E = P x r x (1+r)^n/((1+r)^n – 1)

Where E = EMI

P=Principal Of Loan Amount

r=rate of interest paid on monthly basis. For example interest/12/100 if for suppose the rate of interest is 9.10% per annum then r=9.10/12/100 which is 0.00758 per month.

n=duration of loan or term or tenure.

For Example: if we take a loan of 1000000 Rs at 9.10% interest per annum for 10 years (120 months) from a bank.

EMI=1000000*0.00758*(1+0.00758)120/((1+0.00758)120-1)=Rs 12722. Thus, we pay 12722 rupees for 10 years. Therefore, amounting to Rs 1526640 in 10 years, which is 526640 Rupees of interest, paid on loan.

Thus, by the above formula, one can take out the EMI but for big loan amounts it becomes very tedious and hence major banks have home loan calculator on sites. Even they have different attributes like processing fee deduction and pre-payment closer charges.

Schedule of Home loan Amortization: It is a statement given by the financial institution stating about the elaborated details of future payments outstanding, amount that was borrowed and payment that is already received by the bank. . It gives comprehensive details about the EMI value, the balance of payment before the EMI starts, and the breakup of EMI showing the principal and interest repaid until the end. This schedule is obtainable on the sites by using the calculator, which they prepare from financial mathematics. It is vital for the borrower to make the decision of pre-closure or refinancing. 

Step up and down EMI: sometimes the EMI set or designed as per the salary increase and decrease of borrower’s. In step up the EMI increases as per the apprehensions that the salary of borrower will increase in future. In such a case the EMI initially charged is less and then increased as per the salary but this can be done only twice in the entire loan tenure. In case of step down, the EMI is higher and it is reduced if the income decreases.

Advanced Disbursement and Pre EMI: In case of construction link, plan the disbursement done as per construction in that case the pre-EMI, mainly interest paid on the amount borrowed until the final disbursal takes place. Then in some cases when before construction completes the loan disbursed is called advanced disbursement that is done looking at the loyalty of the constructor that he has the capacity to deliver the project on time, in such case the EMI starts immediately as disbursement take place.

Floating and fixed rate of interest: Where EMI calculated on floating and fixed rates.

• Floating: When the rate that is left open for market fluctuations that can go up and done with increase and decrease it is called floating rate. Thus, the EMI can also increase and decrease as per the market flow.
  
• Fixed: When EMI paid at constant rate and the fluctuations of the rate is not take into consideration its fixed rate. In this case, the borrower should chose this type of rate when they have reached the lowest point and a increase in is expected in the future otherwise it becomes a fix for him to pay the same EMI even if market rates are too low.

So above are all the details how the EMI calculated for home loans. This is always an added advantage to do a market survey of leading organisation on sites. Still it is advisable to get the final say from where the loan to be taken.

What is the difference between 24k and 22k gold?

Gold is a global commodity. The love for gold has increased considerably making India the highest consumer of gold globally. People from all classes prefer buying gold, be it the poor or the rich. 

Gold is used for many purposes. Below are a few purposes:

• Investment

These days, people prefer to invest in gold by buying gold bars/coins and gold bonds which enable them to reap long term returns on investment.

Gifting on Occasions

Festivals like Diwali see people buying gold. It is a ritual in India to buy gold on the occasion of dhanteras (2 days before Diwali). On Occasions like marriage, the bride and groom are gifted gold jewellery or coins by their parents and relatives. 

Inheritance

Gold is passed on from one generation to another and is being preserved by families as a memory. This jewellery keeps on accumulating and due to its preservation, helps in increasing the wealth of a person.

• Donation

Donating in temples is a common practice in India. For example, the famous temple Tirupati balaji and the Shirdi Sai baba. 

India accounts for highest consumption of gold globally. In the year 2015, gold weighing 703 tonnes has been consumed in India. Since ages, Gold has been the most admired holding of people in India.

Gold acts as a status symbol for the rich. Marriages seem to be incomplete without gold. Many a times, we get involved in gold shopping for occasions like siblings or own wedding. But do you know what is the meaning of Karat and the difference between 24k/22k/18k/10k/6k gold.

Karat is a unit used for measuring the purity and quality of gold. It is denoted by the letter “k”. 

✅ Check Current Gold Rates in India

 What is 24k Gold?

Pure gold consists of 24 parts. Hence, 24K gold is the purest form of gold i.e. 100% gold. It means that there are no traces of other metals in gold. Pure gold is soft in nature and bright yellow in color. Due to its soft nature, one does not prefer to make jewellery as they are prone to easy wear and tear. Instead, one prefers to buy 24K gold coins/bars from banks or gold shops. It is used in electronics and making medical devices.

What is 22k Gold?

Among the 24 parts of gold, 22 part consists of gold and the other 2 parts are some other metal. Metals could be zinc or silver or nickel. 

The percentage of pure gold in a jewellery of 22k is 91.67%. Balance 8.33% consists of other metals(zinc, nickel, silver etc).  

22k is used for making jewellery like bangles, necklaces as the mixture of metals makes it tough and less prone to wear and tear. 

What is 18k Gold?

Similarly, 18K gold consists of 75% gold and the balance 25% consists of other metals. In 18k, 18 parts are of gold and the balance 6 parts consists of other metals. As the mix of other metal increases and gold decreases, the jewellery becomes more durable and tough to hold a stone.

Diamond jewellery is always made in 18k or 14k or 10k. This goes with the point that as the mix of metals like silver or zinc or nickel increases and the gold decreases, the ornament becomes strong and durable enough to hold on to the stone for a longer period of time.

Gold and Silver jewellery is hallmarked by BIS Hallmark. BIS hallmark is a system of hallmarking the ornament and confirming that the piece of gold conforms to the specified karats by the gold seller. For example, 22k is denoted by the numbers 916, 18k by 750, 14k by 585.

As the Karat goes down, the purity of gold reduces. Like 14k consists of 58.3% gold, 12k consists of 50% gold and 10k consists of 41.7% gold. Also, you can customize the karat for any piece of jewellery you desire to buy.

How to find the IFSC code of SBI?

The internet has changed the way we do things from shopping to education and even banking. Nowadays, it is possible to electronically conduct bank transactions which save you the hassle of going to the bank. This has also made the bank employees more efficient and made them free to attend to core tasks.

However, the system of electronic banking is a complicated one and the Reserve bank of India has come up with the concept of IFSC codes or Indian financial system code which identifies every bank branch in a unique manner. This is an eleven character code assigned by the RBI to each bank branch that is participating in NEFT system in the country. This code is used by the different electronic payment system applications like RTGS, NEFT and CFMS.

What is the IFSC code?

The IFSC code consists of 11 characters out of which the first 4 are alphabets representing the name of the bank. The fifth character is standard and is zero which is meant for future use. The last six digits are numbers which identify the branch of the bank.

Reserve Bank of India

The Reserve Bank of India is popularly known as RBI and is a central banking institution which controls all banks. All the money transactions among banks using RTGS and NEFT are controlled by the RBI. RBI was established on April 1, 1935 and nationalized in 1949 it is fully owned by the Government of India.

RTGS – Real Time Gross Settlement

This is a fund transfer system which is used for the transfer of money from one bank to another. This is a gross basis transfer and is in real time. This system is used for transacting large amounts of money in which the minimum amount is Rs. 200,000 while there is no maximum limit for this transaction.

Benefits of RTGS

All transactions are processed and settled in real time. There are no credit and liquidity risks in the RTGS payment system. The beneficiary bank can receive payment instantly whenever the central bank system accepts the request. This system ensures quick and secure payments in market transactions and major business solutions without being exposed to the risk of settlement

NEFT – National electronic fund transfer

In this system of payment the payment is transferred from remitting account to the account of the beneficiary.

Benefits of NEFT

The method of NEFT fund transfer reduces paper work drastically which makes it very eco friendly. With this method you can perform seamless transfer of funds from one account to another. There are no chances of mistakes and the entire operation is fast and highly secure. The service charge for NEFT transfer is much less compared to using pay order or demand draft. There are no risks of credit and liquidity in this system of payment.

How to find IFSC code of SBI?

SBI or State Bank of India is the largest public sector bank in the country and is popular among Indians. If you have an account in any SBI branch then you simply have to look at the check leaves in order to know the bank branch IFSC code. On the other hand if you do not have an account in this bank, then you can visit the official website of Reserve Bank of India and get a list of all the SBI branches codes. At the same time, there are many websites which provide the information regarding the IFSC codes when you submit the information regarding the name of the bank, state, district and branch. In fact apart from IFSC code you can also find information like MICR code, Address and Contact number of the bank branch.

Merits and Demerits of Gold Loan

Gold loan is the loan that one can get against the gold that one owns. Gold can be in the form of ornaments as well as pure gold assets. There are many banks and non-banking financial companies (NBFCs) authorised by RBI to offer gold loan at attractive rates. All major banks and NFBCs offer loan against gold.

Indian families normally have gold jewellery assets and thus loan against the same is a reliable method to generate money in times of need. The lender keeps the gold as collateral/pledge by the customer against the sanctioned loan. Once the borrower has been able to pay the loan amount, the gold is returned, and only the interest is charged. Thus, it is a method to generate liquidity immediately by mortgaging one’s gold assets for the period of loan duration.

Procedure

Applying for gold loan is a relatively simple and short process. Any person above the age of 21 is eligible to apply for a gold loan. The borrower needs to visit an office/ branch of the financial institution with the gold and some simple documents as proofs. Before validating the documents, the lender first completes all checks pertaining to the gold asset or jewellery being deposited. It checks the authenticity, weight and then computes the valuation of the gold. loans can be sanctioned up to 80% of the calculated value. The weight of any stone studded in the ornament is usually deducted before the valuation.

Approval of loans against gold is usually done very quickly, almost immediately. There is usually no need to have a guarantor or introducer needed for gold loans. Also, the credit history of the borrower is not checked. The process is simple, safe, and quick.

Documents

The documents needs are simple. One needs to submit the following:

• Identity proof (ration card, driving license, Aadhar card, PAN card etc.)
• Address proof (Passport, voter id, phone bill etc.)
• Signature proof (driving license, passport etc.)
• 2 passport sized photographs

Types of loans and applicable interest

Gold loans can vary depending upon the duration of the loan. The range of high to low Loan to Value (LTV) options vary from lender to lender. 

• Generally, a high LTV offers the maximum loan for each gram of gold. The risk is higher and hence the interest rates are higher in this case. Also, the duration of this loan is usually shorter e.g. maximum of 3 months.
• On the other hand, a low LTV offers lower interests and longer duration to repay, but the lower risk also means that the loan amount per gram of gold is lesser.

Charges 

There are very little processing charges involved in a gold loan as it is a secure loan against submitted security. Also, the repayment is quite flexible as the borrower is free to return the money in parts during the loan tenure, or the entire amount before or at the end of the term. There are no prepayment penalties levied.

In case the loan is not repaid till the tenure of the loan, a penal rate of interest is charged from the due date. But if the borrower fails to comply, the lender might auction the gold in order to recover its money. However, this is done as a last measure, when the intention of repayment seems near impossible.

Impact of gold price fluctuation

At the time of applying for a gold loan, gold rates play a key role in the sense that they help lenders ascertain how much amount to lend. Based on the prevailing gold rate, your loan amount can vary significantly. For instance, loan amount for gold pledged at a rate of Rs 28,800 will be lower than that pledged at a rate of Rs 33,300.

Merits

• Gold loan is a quick way to generate cash in case of emergency as the disbursal time is less than a day.
• You can get the loan even if you have a low credit score. 
• The paperwork is relatively simple in case of gold loan as compared to other unsecured loans. Only a few simple documents are required to prove your identity and address proof.
• The borrower has the flexibility to pay the loan back as per convenience during the entire tenure of the loan. Despite there being a fixed EMI, you can pay more if you have extra cash.
• You can close your loan early without worrying about early repayment charges. 
• Rural variants such as agricultural loans against the gold have an even lower interest rate, as promoted by RBI, however proof of agricultural documents will be additionally required in this case.

Demerits

• The loan amount depends upon the valuation of the gold, which can vary from lender to lender.
• In case of forfeit and auction due to non-repayment, the borrower tends to lose all value of any precious stones studded in the ornament, as their weight had been deducted from the valuation originally. 

What expectations do you have from the Union Budget 2017

The much coveted event of the financial year 2016-2017, Union Budget 2017 by the Central Government is to be presented on February 1st , 2017. Indians all across the globe have expectations from the Union Budget 2017 to have a favourable effect on them.

Union Budget 2017

Bidding farewell to the age old tradition of presenting the Union Budget on the last day of February, Union Budget 2017 is a move to speed up the implementation of schemes which are projected in the budget. The Prime Minister urged the states to delineate their plans, according to the new dates of the budget and take full advantage of this move. The Finance bill can be passed by and implemented from 1st April, 2017. Until now, it was being passed in May and implemented only from June.

Leverage of having an early Budget

With the change in dates of presenting the Union Budget, there is expectation of quick implementation as well. This advance presentation of the Union Budget aids legislative approval for annual spending plans and tax collections, all these can be completed before the beginning of the year on 1st April.

There is also a decision to merge the Railway Budget with the Union Budget 2017,breaking the colonial practice since 1924. Railway budget was presented separately to focus separately on the importance of this infrastructure. Apparently these two budgets are merged by the proposal of Railway Minister Suresh Babu.

Expectations from the Union Budget 2017

1. Switch to new Financial Year, financial year from 1st Jan till 31st Dec from the current 1st April till 31st March concept that we follow in India.The committee headed by the Chief Economic Advisor ,is studying the proposal to change the financial year, considering the factors such as agriculture, southwest monsoon,receipts and expenditure of the Central and State Government, changes that will be affected the international trade.etc..,
2. Major breakthrough to digitization, the majority of the transactions are going to be cashless, so all instruments & internet connectivity which helps with digitalization needs to be tax free.
3. Demonetization has hit business in the Oct-Dec quarter massively and when the Government wants to us to do cashless / minimum cash transactions in business parlance,
   traders/businessmen in the small sector are expecting cuts in the indirect tax rates and slabs.
4. Salary class is always been very prompt in paying the direct tax to the exchequer. This class of people has been very unfortunate as Tax is deducted at the source of income. With the rampant inflation level in the country, although now it is showing the declining trend , Salary class in the bracket of 2.5lacs to 10 lacs are expecting the relief in direct tax rate and increasing the tax threshold limit.
5. Major boost Startups & Make in India concept tax holiday should be provided to encourage this sector. As most of the startups are struggling to get the capital funded for their business and many a time initial investments soured through own funds. Apart from these, if this sector increases the number of people employed, there should be additional relief in the form of cut in the tax rates. This push helps in tackling unemployment and startup concepts.
6. Global warming is the term which we get to hear not only in our country ,but across the globe. To cheer up this concept, Government should encourage environmentally viable projects like,Solar Energy , Organic Farming, Organic Foods, Handmade items, and garments which uses natural dye, organic manure Industry, pollution control equipment, etc., There is already awareness about these sectors in the public, but additional hike from the banking sector and the tax structure is expected in the Union Budget 2017.
7. Housing for all , Government can pump in money in the housing sector by lowering the interest rate for the housing loan, for those who are buying the house for the first time / for the first house. Interest rates and income tax exemption can be increased or can introduce slab system for each additional house acquired.

Government needs to concentrate on the big fishes for the collection of direct and indirect taxes and post demonetization banks in India has left of liquid cash, there is a general expectation to slash the interest rates on the housing loans, business loans.