Prajna Capital - An Investment Guide

While choosing a home loan option to buy a house, there are a few important aspects. You need to go into these Scheme of loan Whether the loan is a fixed or floating rate one. As is common knowledge, in case of floating rate loans, the interest rate will move up or down with each revision in the benchmark rate of the bank. In case of a fixed rate loan, the interest rate may remain fixed for either a given period of time or entire tenure of the loan. Rate benchmark In case it's a floating rate loan, what the rate is benchmarked against is important. Usually, floating rates are determined with reference to the prime lending rate (PLR), fixed at the time of taking the loan plus a mark-up. If your home loan is at a spread of one percent to the PLR, which is say 10 percent, you will pay an interest rate of 11 percent per annum. How often the bank changes the benchmark rate should be checked. Banks periodically revise the PLR to which the home loan interest rate is pegged. The...

Financial planners and bankers point out that poor credit management is becoming a common occurrence. Currently, gross domestic savings is at 30 percent of the gross domestic product. But an increasing number of families are going in for easy credit without looking at the repercussions. Why debt counselling? Sloppy credit assessment, the availability of easy credit, and a low level of public awareness about the financial implications of credit options are making indebtedness a serious concern. Throw in the increasing preoccupation with an affluent lifestyle, and the scenario gets bleaker. Many also borrow to speculate in stocks, realty and even to outright gamble. People are used to a 20-25 percent increase in annual income. But what happens if there's a slowdown? Over commitments can get you in trouble. The entire family might pay the price, through domestic disharmony. This is why debt counselling - a common service in the developed world - has become an urgent requirement ...