The willingness to share does not make one charitable; it makes one free. ~Robert Brault

DMAT and TRADING ACCOUNT-Accurate Analysis @throw away Price!

If you want to open DMAT & TRADING account(Equity- Commodity), with attractive brokerage rates and exhasutive product features, All type of suppport Please send a mail to with subject line as "I NEED AN ACCOUNT" With your contact number and Address(Will be used to Courier the Forms).

If you want LOAN (Any Type) Please send a mail to with subject line as "I NEED LOAN(Mention Type of Loan required)" With your contact number.

Please Share Blog address among your Contacts/FB/Orkut/Social Network so that every one will get benefited.

"Let us grow together"

Friday, December 17, 2010

Insurance FAQs

1)What is the difference between nomination and assignment?

Nomination is an authorization to receive the claim arising out of policy in the event of the death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the Nomination can be changed or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment. On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities to the insurance policy in favour of the assignee.

To be continued...


This article came in news paper Times Property dated 17-12-2010

 You can avail a home improvement loan to complete all those pending repairs, says Kavita Sriram

    Some homes may require urgent repairs. Homeowners need not wait indefinitely till they can augment enough money towards revamping their house. Banks lend money not only to buy a property but also for any home improvement project you may undertake.
    The process of renovating or making additions to your house is home improvement. It includes painting, flooring, upgrading cabinets and wardrobe, expanding capacity of electrical and plumbing systems, and roofing. Some people may want to add a room or convert an unused corner to a living space. Home improvement loans are meant to finance these activities that could cost anywhere from a couple of lakhs to around Rs 10 lakhs.
    Technological additions like installing security systems, fire prevention gadgets, water recycling units and rain water harvesting systems are expensive. Homeowners can also use the home improvement loan amount to buy home electronics like microwave oven, washing machine, hobs, kitchen chimney and air conditioners. This loan enables homeowners to concentrate on home improvement, free from the fret
ters of financial limitations.
    Homeowners with a stable income over the last couple of years and a minimum age of 21 years are eligible for this loan. Most lenders limit the repayment period to 10 years. If you have a home loan already, applying for the new loan with the existing lender may be a good idea. This could make the loan process less cumbersome with minimal paperwork.
    Most lenders expect margin money (down payment) to the tune of 20 percent of the cost of home improvement project.
    The financial estimate can be made by an architect or may be based on the cost of gadgets you would like to purchase. Estimated cost of home improvement project includes
cost of repairing, renovation or extension. Before applying for a loan, try to raise funds to meet the down payment.
    Some banks finance the entire project cost for their existing customers with impressive repayment track record. Consider availing home improvement loan if you have pending internal and external repairs and other structural improvements to your home.


This article came in news paper Times Property dated 17-12-2010

It is always advisable to buy a property with a home loan as you get tax benefits and the advantage of the bank carrying out a due diligence process, writes V Nagarajan

    Most homebuyers need a home loan to buy a residential property. There are some who prefer to buy using their own funds. But there are risks associated in such cases. Many people have invested in vacant plots without seeking a site loan and there are instances where such investments have gone sour. The process of seeking a home loan not only assists a homebuyer in tiding over the financial need, but also helps him to a great extent in the due diligence process.
NRIs get benefit of due
For instance, take the case of NRIs who are away from home and who may have to go through the process of legal scrutiny while investing in a property. They have to depend on their relatives or friends. The best way out is to seek a home loan as the legal cell in the bank will scrutinise the documents and certify that the property is free from encumbrances before lending. It is always wiser for such people to invest in projects approved by banks as that ensure that all due diligence process has been completed. Incidentally, the Foreign Exchange Management Act (FEMA) rules prohibit NRIs from investing in agricultural land, farm land and plantation property.
Tax planning done
From a tax planning point of view as well, it would be better to buy a house with a home loan. It is also equally beneficial for those who have an investible surplus to invest in residential property through a home loan. The in
terest on the loan up to Rs 1.5 lakhs is tax deductible for a self-occupied house. This means a tax saving of nearly Rs 45,000 per individual. A housing loan of Rs 18.75 lakhs attracts around Rs 1.5 lakhs as interest at present. The interest payment can also be adjusted against salary income, business or profession income, or any other income. A loan can be taken from a bank, financial institution, relative or friend.
    There is no limit on the deductibility of interest in the case of let-out and commer
cial properties. It is advisable to go in for a home loan especially when the property is to be let-out. So, you can take as much loan as one you can get from the lending institution. Here again, the interest payment is allowed as a deduction in full while computing 'income from house property'.
    Further, capital repayments are eligible for deduction under Section 80C within the overall aggregate limit of Rs 1 lakh. Payments on account of stamp duty, registration fee and other expenses which have been incurred for the
purpose of transfer of the house are available for deduction also.
Co-borrowers get benefits
Even while making a joint investment in property, every member gets a special deduction in respect of interest on the loan and also repayment of capital. From the point of wealth tax planning as well, one property is exempt from the purview of wealth tax irrespective of the value of the property for
every individual.
Avoid wealth tax
Above all, if an investor is holding more than one residential property, he can avoid payment of wealth tax if the residential properties are given on rent for more than 300 days in a calendar year. Maximum marginal tax rate of 30 percent can be brought down to 21 percent in case the property owned is leased out.
    So, go for a home loan while investing in property.

Six tips to make the most of your PPF

This article is taken from ET wealth
The stock market, despite the probability of giddy returns, can give you the heebie-jeebies due to the wild swings in share prices. Fixed deposits can be a turnoff because the interest earned is taxable. For investors seeking the best of both worlds, there is the Public Provident Fund (PPF). Wrapped in safety and free of tax, the PPF is almost a godsend for risk-averse investors.

“PPF is an excellent tool for long-term investment. It is risk-free as it is backed by the government,” says Harsh Roongta, CEO of It is especially suitable for self-employed professionals and small businessmen who are not covered by the Employees' Provident Fund . “Those who don't have access to an organised setup can realise long-term goals through the PPF,” says Surya Bhatia, a Delhi-based financial planner .

Don’t think of your PPF account as a stodgy investment option where you put away something once in a year. With a little planning, it can be an important part of your financial portfolio. Here are a few tips that will help you make the most of this option: 

PPF vs FDs
Maximise limit:

The 8% compounding interest you earn on the balance can work wonders for you, especially because a PPF account is a long-term investment. There is an annual limit of Rs 70,000 that one can invest in the PPF. You may feel it is a waste to be investing Rs 70,000 in this option when your Rs 1 lakh tax saving limit under Section 80C has already got exhausted. But don't let the tax savings alone guide your decision. Invest as much in PPF as you can afford to. If you contribute Rs 70,000 a year to your PPF for 15 years, your investment would grow to a gargantuan Rs 22.92 lakh on maturity.

And remember, this is tax-free money. In the 30% tax bracket, this is equivalent to receiving almost 11.5% interest on a bank fixed deposit. “The PPF offers the highest post-tax returns among all fixed income options since no tax is levied on the investment, income and withdrawals,” says Bhatia.  
Distribute income:

There are benefits in store if you open a PPF account in the name of your spouse or child. Tax laws say that if any money gifted to a spouse is invested, the income from that investment is clubbed with the income of the giver. But since PPF income is tax free, it will not push up his tax liability. This way, you can invest more than Rs 70,000 a year in this tax-free haven and benefit from its various advantages.

This strategy does not work in case of minor children though. You can open a PPF account in the name of a minor child but the combined contribution to your and your child's account cannot exceed Rs 70,000 a year.

Invest for children:

However, if the child is over 18 years, up to Rs 70,000 a year can be invested in his name separately. The taxman insists on clubbing the income of minor children with that of the parent. But once they turn 18, they can have a separate income. “A PPF is an ideal way of building a fund for your child's educational needs instead of falling for all the ‘high-commission-paying’ child plans of insurers,” says Sandeep Shanbhag, director of Wonderland Consultants, a tax and financial planning firm. “In a child plan, you are not sure of the final returns.
Invest before cut-off:

It’s important to keep an eye on the calendar when you make your contribution to the PPF. The interest on your investment is compounded annually but the calculation is monthly. The interest is calculated on the lowest balance between the 5th and last day of every month. So, if you invest before the 5th, the contribution will earn interest for that month too. Otherwise, it's like an interest-free loan to the government for a month.

Withdraw for emergencies:

The PPF can also be your emergency fund. Although it is not a good idea to dip into long-term savings for consumption, if you are faced with a terrible cash crunch, you can withdraw from your PPF account. It will be far cheaper than going in for a personal loan at 17-18%. Withdrawals are allowed after the sixth year. But you can withdraw only once in a year and only up to a specified limit.

Also, be sure to put back the amount you have withdrawn at the earliest. As we said earlier, this is not a good strategy if you do it frequently. Some investors use this tack to claim tax deduction. They withdraw from the PPF and then reinvest the money after sometime. This is a flawed investment strategy. They only look at their gross savings but their net savings do not grow.

Other helpful tips:

A PPF account matures in 15 years. Though you are allowed to open only one PPF account, you can extend it after it matures. Accounts can be extended in blocks of five years indefinitely. Even if you don't have a large sum to invest in the PPF, don't forget to invest the minimum Rs 500 in a financial year. There's a small but troublesome penalty of Rs 50 levied if you fail to do so. Don't invest more than the Rs 70,000 a year. The excess amount, even if credited to your account by mistake, will not earn any interest.


This article came in news paper Times Property dated 17-12-2010

Today, home loans are available for many needs of homebuyers. With the keen competition among lenders, more innovative schemes can be expected, says V Nagarajan

    The home buying exercise has never been as flexible as it is now thanks to a plethora of home loan options, quick processing, instant approvals and faster disbursements. That is not all. The fierce competition among various housing finance companies and banks has brought in its wake transparency, bargain deals and festival offers to enable borrowers strike bargain deals. There is no dearth of festivals in India and each festival brings discount offers in one form or the other to lure home loan borrowers.

    Loans are available not only for salaried but self-employed, agriculturists and businessmen. The new entrants to the home loan industry are keen to remain flexible, especially among self-employed and businessmen, when the latter is also not reluctant to pay a higher lending rate. Home loans are available to buy under-construction or ready built units, furnish existing homes, and build additional floors on an existing home. There are loans available to buy developed plots and then construct a house. Plot loans are also available to bid for
units offered by State housing boards.
    With an increase in family size, the requirement for a larger sized house is felt and there are institutions that assist homeowners in looking for a new home while simultaneously working on the resale of the existing one. Today, there are institutions which assist sellers in getting a better deal for their properties through a property services division.
    If both a husband and wife are employed, the joint income enables them to seek a higher loan and both are eli
gible for the tax sops while investing in property. Tax experts advise that even if one has savings, it is advisable to seek a home loan while investing in property due to the sops associated with the home buying exercise through home loans.
    Loans up to Rs 20 lakhs are treated as priority sector. There is an interest concession of half percent for those seeking loans below Rs 10 lakhs and houses whose value does not exceed Rs 20 lakhs.
    Home loans are also available to buy additional homes to rent out and earn rental income. The government offers tax sops for those who are keen on investing in housing primarily to boost the rental housing stock. Residential property leased for a minimum of 300 days in a calendar year is exempt from
wealth tax. So, a home loan comes in handy to acquire an additional house.
    Home loans are available even for senior citizens who can show recurring income even after retirement. There are institutions that consider offering home loans even after the retirement age and so there is no age restriction on going in for a home loan.
    NRIs are invariably faced with a dilemma as to what would happen when they avail a home loan during their sojourn abroad and thereafter are compelled to return home during the home loan repayment period. Housing finance institutions are flexible in that they reschedule the loan repayment period depending on their qualification, family size, savings, re-employment potential and other incomes in India.
Varied options
It makes better sense to seek a home loan while investing in property. Home loan borrowers can avail of top-up loans offered by several institutions to tide over contingencies. Similarly, mortgage loans go a long way in raising that much-needed capital for any exigencies. Those who have let-out their residential or commercial properties to corporates or public limited companies can get the rentals for the unexpired period of the lease upfront and plough back the money to more profitable avenues.
    Those who are aspiring for higher education abroad can use property as a security while seeking an education loan. This is irrespective of the fact whether there is an existing home loan liability attached to the property.
    Gone are the days when a self-employed or budding entrepreneur had to accumulate savings to commence his operation in his own premises. Today, he could own commercial premises by seeking specific loans and commence his business instantly. Loans are also available for upgrading existing office premises or extension of the premises.
    Even during later years,
the asset acquired through a home loan comes in handy to meet any contingencies. This is because reverse mortgage allows senior citizens to remain in the house and also retain their ownership. The money they get from reverse mortgage can be used for anything like meeting day-to-day expenses, home improvements or for healthcare. In a reverse mortgage, the borrower can choose to receive the money in one lump sum or by way of monthly, quarterly, or annual payments.