Credit Card: A plastic money

Credit cards are becoming very popular now in India. 

Every person wants to have it. People love to shopping cashless. 

They don't want to carry cash with them. Once, having credit card was considered a luxury item. 

But now every person which has a bank account can avail the facility of credit card. There are many types of credit cards available in market. Every bank has issued credit card.

How to get credit card

If you have an account in any nationalized or a private bank you can get a credit card. 

You have to apply for credit card. Banks generally evaluate your account statement and then would issue credit card. 

If you are a salaried person you can get it easily. Your credit limit will be proportional to your salary. 

If you are a businessman your credit card limit will be better. 

If someone has no regular income, 

Banks usually insist on maintaining a Fixed Deposit equal to your credit limit

Credit limit

Banks give you interest free loan to spend or purchase any thing in the market. 

It is called credit limit. Credit limit differs from person to person. 

It depends on economic condition of that person. It is liable to be increased as your credibility towards bank. 

Cash limit

Banks give you facility to withdraw cash on certain percentage of your credit card limit. 

For example, if you have 58000 Rupees credit limit  on your card, 5800 Rupees could be your cash limit. 

It means that if you are in need of cash, you can withdraw that amount of money any time. 

In other words cash limit falls under the credit limit. If you withdraw 5800 rupees as cash your actual credit limit would be 52200. 

But one should use cash limit only then there is no option available. There are various charges and interest on the use of cash limit.

Monthly account statement

Banks issue monthly statement on a Fixed date in  every month. 

This date is known as Statement Date. Every cardholder should know his statement Date. 

All expenditure done by you between your last month statement Date and present month statement Date are listed in this statement. 

Your used credit limit and used cash limit and available credit limit and available cash limit are listed in this monthly statement. 

8th pay commission

8th Pay Commission 

Prime minister Narendra Modi has given his consent over the constitution of 8th Pay Commission.

It is likely that 8th Pay Commission would be constituted in 2026.

Duration of 7th Pay Commission is going to end in 2026.

According to experts, there will be 40 to 50 percent increase in salaries and pensions.

State governments also constitute their own commission or simply follow the 8th Pay Commission recommendations in their respective States. In this way State government's employees will also be benefited by this move.

Pay commission 

There is a provision in the constitution that in every 10 years, a Pay Commission will be constituted by central government to review the salaries and emoluments of central government employees and to give suggestions for increasing salaries accordingly.

7th Pay Commission came in to force in 2016 and its recommendation are valid to 2026.

• The First Central Pay Commission  was headed by Srinivas Varadachariar.
• The Second Pay Commission was headed by Jagannath Das.
• The Third Pay Commission was headed by Raghubar Dayal.
• The Fourth Pay Commission Was Chaired by P.N.Singhal.
• The Fifth Pay Commission was chaired by S.Ratnavel Pandian.
• The Sixth Pay Commission was chaired by B.N.Srikrishna.
• The Seventh Pay Commission was chaired by A.K. Mathur.

What is Systematic Withdrawal Plan?

What is Systematic Withdrawal Plan? You must have heard about Systematic Investment Plan and it might be that you have subscribed for this plan. But, have you ever heard about Systematic Withdrawal Plan? Did your Investment Adviser ever advise you for it? I am going to give you full information about it, in this Article.

systematic withdrawal plan

What is Systematic Withdrawal Plan.

It is a facility provided by Asset Management Companies, in which Investors can withdraw a part of their investment in a stipulated time period.

It is like a Monthly Income Scheme provided by Banks and Post Offices. Investors generally use this plan to gain a continuous income from their Mutual Fund.

Investors want to find a certain amount of their profit in a stipulated time period. It can be monthly, half yearly or yearly basis.

Investors, generally invest in this plan thinking that after a certain time they withdrew the profit and they expend that amount on their tour plan or for their Daughter's Marriage.

There are two options provided by Asset Management Companies to the investors, one is Fixed withdrawal option and  second is Appreciation Withdrawal option.

Systematic Fixed Withdrawal

In the first option investors are allowed to withdraw a certain amount after a certain time on monthly, quarterly or half yearly basis. Investors ensure in the beginning of the plan that what amount they want and when it be needed.

Appreciation Withdrawal plan

In this option AMCs give facility to investors to withdraw appreciated amount after a certain period. It is just like Monthly Income Scheme. And it is just opposite of SIP.

Benefits of  SWP.

An investor can create a regular flow of income from his investment in this plan. If the investor want to have periodic incomes for their needs, he should go for this option.

It should be created in such a way that he could get the money when he needs the cash most. If a serviceman is going to retire after twenty years, then he can invest in a Mutual Fund Plan with SWP option.

In this way he sets the required amount to be withdrew every month as pension. As you know that government has abolished the provision for Pension these days. So, it is a substitute for pension too.

So friends, if you like this information useful then let me know, with your comments in comment box.

E-gold/ what is E-gold/E-gold investment

E-gold! Gold has always been a investment destination for the people across the world. It has always given good return over a period of time. People traditionally invest and store them for bad times. But there is a problem with the safety of gold. There has always been an apprehension for theft and robbery. But with e-gold there is not such type of apprehension. It is a non-traditional way of investing in gold.

E-gold

What is E-gold?

E-gold is an electronic form of the  natural Gold. It is traded on National Spot Exchange as an electronic form of Natural Gold.

If one buy a unit of e-gold at the National Spot Exchange, the same amount of natural gold are kept in a safe house and you get the no. of units equivalent to your invested amount.

You can get its physical delivery as your wish. National Spot Exchange facilitate a platform at the national level for gold trading. It ensures its price and purity.

It is sold in the denominations of one gram and its multiples. Its one unit is equivalent to one gram. It is stored in your Demat account with other securities. It is a simple, quick, reliable and cheap way of investment.

Benefits of E-gold

There are so many benefits of E-gold that it is rapidly going popular in investors.

• This is the reason for its popularity in general mass. When someone buy natural gold from a shop he cannot be sure of its purity but with E-gold there is no such apprehension. E-gold is sold with its maximum purity.
• If you have gold in its physical form there is always a risk of robbery and theft. You keep it either in a safe place or in the Bank locker. But in E-gold your gold is kept in a safe house at a warehouse of NSEL and the equivalent unit of E-gold is kept in the electronic form in your Demat account.
• The E-gold is available in one gram denominations and its multiples. If you wish to buy one gram of natural gold, it will be a little difficult for you. So, E-gold is very convenient.
• Transaction of E-gold is very simple than natural gold. It is sold by one clique of your computer Keyboard. And you can buy it by the same way.
• The price of Natural gold varies region to region. But the price of E-gold is same across the whole country.
• You have to sell the Natural gold at a discount but the E-gold is sold at same market price.

All the above features of E-gold make it very popular investment option. It has given a very good return over a period of time.

So friends what are you waiting for, make use of this investment option. If this article is any use of you like and comment it.

Systematic Investment Plan

Systematic Investment Plan

What is Systematic Investment Plan?  What is its purpose? In our modern society there are many investment tools are available, but we do not know much about them. 

These tools are able to counter the effects of Inflation. We only know and use traditional ways of investment like fixed deposits and insurance.

Today I am going to answer these and many more Questions like this in this article. 

What is Systematic Investment Plan

systematic investment plan.

It is popularly known as SIP. SIP is a way of investment in Mutual Funds. 

If you plan to invest a certain amount in a particular MF  in Weekly, Monthly, Quarterly or Half yearly basis, it is called a SIP. 

The SIP amount could be as low as 100 rupees. Every time when you invest you get certain no. of units. 

Every unit have a value that is called NAV. The NAV( Net Asset Value) is determined by stock market. 

As you know that in a mutual fund your fund is invested in share market by The Fund Manager of that Mutual Fund, its NAV value fluctuates according to the share prices. 

If the market is down, the NAV of the said fund is low and you gets more Units. And if the Market is high, the NAV of the said Fund is also high and you get less No. of units accordingly.

How to start a Systematic Investment Plan.

SIP in Mutual Fund is very beneficial in long time. So, First you should determine your investment goal. 

Second, you should determine your Time Period to get that Goal. 

Third, You should determine your SIP amount. 

Fourth, You should determine a good Mutual Fund plan. 

You should take a investment adviser for that. Since your SIP amount Debits automatically from your bank's Saving account, so you should have a Saving Account with Cheque Book facility. 

Benefits of Systematic Investment Plan.

If you get invested in Ten years or more it will be very beneficial for you. Some Awesome benefits of SIP-

• Discipline in Investment- Discipline is a key to success in a long term investment in SIP. Your small investment becomes a large corpus in a long run. 
• Flexibility- Although it is advised to invest for a long term in Mutual Fund but you may exit anytime from your Plan and stop your SIP.
• Cost averaging-When you invest in a MF through Systematic Investment Plan there is a good possibility for you to buy it at average purchase price. So, it gives you the benefits of Cost Averaging.
• Power of Compounding- It gives you the Power of Compounding and the Power of Compounding works very well in the long term. 

So, friends Systematic Investment plan is becoming very popular these days as SEBI is projecting it.
If you like this post helpful please comment in the comment section. Thank you! 

Equity linked savings scheme.

Equity linked savings scheme

Equity linked Savings Scheme(ELSS). Friends, today I am going to give you detailed knowledge about The ELSS, in this article. The questions like, What is ELSS? Why is it so important for you?, will be discussed in this article.

Equity Linked Savings Scheme.

What is ELSS?

As I have already written above ELSS stands for Equity Linked Savings Scheme. ELSS is a type of Mutual Fund that gives tax benefits also. You can invest up to Rs 1.5 lac in ELSS schemes and claim for tax rebate accordingly, under section 80C of Income Tax Act 1961. It is a very important investment option for salaried Government Employee.

What is difference between ELSS and Mutual Fund.

There is no fundamental difference between them. Both are Mutual Funds.The only difference between them is tax benefits and lock-in period. You can avail the facility of tax benefits in ELSS. There is a three year lock-in period in ELSS. Your money is invested in stock market in both items. After three years lock-in period you can exit any time from ELSS. You have not to give capital gain tax on it at the time of redemption of your Fund. If you want to continue after three year lock-in period, you may continue. Mutual Funds on the other hand are liquid in nature, it means you can exit from it at any time. Mutual funds are taxable.

How One Can Invest in ELSS?

There are two methods of investment are available for you. You may invest by Lump Sum amount or you may opt for SIP option. Here SIP means Systematic Investment Plan. If you invest in a Mutual Fund in one go, it is called Lump Sum amount, and if you invest a certain amount every month in a Mutual Fund, it is called SIP. It will help you spread the risk and give you the benefit of cost averaging. You can take the help of Any investment adviser of ICICI, kotak Mahindra, SBI, Tata, ABSL, Quantum Mutual Fund. For investing in a Mutual Fund you should have a bank account with Cheque facility and a Pan Card.

So friends if this information is any use for you give your comments and like this article.

How to Get Personal Loan?

How to Get Personal Loan? Everyone of us in our life go through in a phage in which we badly need of money. Be it, our daughter's marriage ceremony or repaying of credit card loan, we need money. When nobody help us, we go to banks and apply for Personal loan, as it is very easy to get. So friends, today, I am going to talk about Personal Loan. I will talk about, what is the process of personal Loan, what is its interest rate, repayment period and everything related to it.

What is the personal Loan

Personal Loan is a type of unsecured loan used by the people for meeting their day to day financial needs. There is no need of any kind of  pledging security or collateral for getting it.

It is very easy to get. All banks either Nationalized or Private offers Personal loan. It is very popular among people. If you have regular source of income like Government Job or Private job, banks easily give you Personal Loan. It is given for following purposes-

• For Marriage expenses.
• For Renovation of house.
• For purchasing Consumer Durable Goods.



How to get Personal Loan

• For Repayment of Credit Card Loans.

Procedure of personal Loan.

Banks have made it very easy to get Personal Loan. They have removed the necessity of Guarantor. Application forms for Personal Loan has been made easy. Ticket fee for agreement has been reduced. Following documents are needed for Personal Loan-

• Latest Salary Slip showing deductions.
• Income Tax Returns of last three years.
• Voter's ID Card or Driving Licence for proof of identity.
• Copy of ration card, Electricity Bill, Passport, Voter's I-card for proof of residence.
• Last six months salary statement of Account where is your salary is credited.
• Pan Card's true copy.

Interest Rate

It is a very costly loan. Usually banks charge interest at the rate of 13 to 15% per annum on Personal Loan. It depends on RBI's Base rate policy. So, take this loan, only if, you have urgently need of short term need of money. 

There are two options of Interest rates offered by banks, one is Fixed Rate of Interest or another is Floating rate of Interest. Both have their own advantage or disadvantage.

In the Fixed rate of interest, interest are fixed for whole repayment period, at the rate of interest, prevalent at the inception of the Loan. In this option, the interest rate is kept stable for entire loan repayment period. If banks increase or decrease the interest rate there will be no effect on your loan as you have already opted for Fixed rate of interest.

In the floating interest rate, interest rate fluctuates according to the RBI's Base Rate Policy. If you opt for this option, your interest rate is often increased or decreased by banks according to the RBI's Base Rate Policy. Most of the people opt for this option.

Repayment period and EMI

The repayment period of the personal loan is generally 3-5 years. The monthly repayment amount or EMI depends upon the proposed repayment period and the rate of interest. If you opt for three years repayment period your EMI will be high and if you opt for five years repayment period your EMI will be low. 

The entire loan amount is divided in to Equated Monthly Installments. This equated monthly installment is called the EMI. The number of equated monthly installments may increase if the entire loan with interest, cost, charges and expenses is not repaid by the stipulated number of equated monthly installment.

Processing charges or other fees.

Banks takes processing charge on every Personal Loan. It depends upon your loan amount. It is generally charged on every lakh rupees of sanctioned loan. Banks cut this processing charge from the personal loan itself. The stamp duty on agreement paper is also charged by bank.

So, friends if this article is any use for you, like comment and share this Article.