What is the procedure of Home loan?

Everyone dreams to have his own house. We save money or earn a lot, so that, we can build a dream home. We buy a good Plot and start thinking how to construct a beautiful home. Many of us are of low income group and are not able to have our own home. But you should not be anxious, Government and Banks help you construct your own home. You can apply for Home Loan to any nationalized Bank. Government of India has provided you special facilities of getting Home Loan at lowest interest rates under Pradhanmantri Awas Yojna-Credit Linked Subsidy Scheme. In this scheme borrower can avail the facility of subsidy on interest. which results into lower installment amount and lower interest rate. This scheme has been launched for economically weaker sections, low income groups and middle income groups of society.

One of the primary conditions of the scheme is that you must not own Pucca house either in the name you or your family members which includes you, your wife/husband and children.

Generally bank offers 8.67% interest rate on loan amount. But under this scheme banks provide subsidy on interest which may be a maximum of 2.67 lac and this subsidy is credited to your loan account at the end you complete repaying loan account with all interests. You can not avail such facilities in other loan schemes.

How to get this loan from bank.

1. You have to visit nearest branch of any bank and get Home Loan application form. Before submission of application you must ensure that the piece of land at which you desire to construct home should be either in your name or in your spouse or both. Bank ensures the ownership of land, so that, its market value could be ascertained and if you fail repaying loan amount and becomes bankrupt, bank could recover loan amount by auctioning of the house.
2. You must have original copy of Deed of the land in your custody.  Bank takes its custody before sanctioning loan and keeps it in its possession till the end of repayment.
3. You must have certified copy of Mutation issued by circle office of the area(Original copy of the document needs to be attached with application form). This document too is taken by bank.
4. You must have original copy of Land Possession Certificate.
5. You must have original copy of current revenue receipt issued by Circle Office.
6. You must have layout of the said land sanctioned and passed by Nagar Parishad if the land lies in town area. But if in village area the layout should be counter signed by Mukhia( Head of Gram Panchayat) only.
   
7. You must bear a copy of estimate of entire plan which is prepared by a engineer authorized by Bank. This estimate cost and plan should be in correlation.
8. Legal opinion is prepared by authorized Legal Adviser of the bank. This is meant for ascertaining ownership of the said Land.
9. The evaluation of the said land with MVR and market value is calculated by authorized agent of the bank. He visits the land for physical verification and then reports geo position of the land. He takes pictures of the land. He records longitude and latitude and collect information regarding all sides of the post.
10. If you are a government employee, you must have attach a copy of your Salary Slip.
11. A copy of income tax return or Form-16 is also needed so that your income within tax limits could be ascertained.
12. It is bank's discretion to demand disclosure of details of your property in all forms like share, debenture, gold, ornaments, LIC, and other movable or immovable property.
13. Bank also wants to know about net-worth of invested amount in other savings scheme.
14. You must disclose the name of Nominee who will repay the loan amount in your absence.

After some procedure is followed up, bank make you fill up a affidavit. Then after following some other necessary steps all above said documents are held in possession of bank and first installment of loan is released in your bank account.

Pradhanmantri Awas Yojna-Credit Linked Subsidy Scheme comes in effect in the last when loan amount is disbursed. Bank authority send your details to National Housing Bank which after necessary checks approves the subsidy and sends subsidy directly to the loan account of the borrower.

I hope this information will be very useful to all of you.

What is Mutual Fund.

 What Is Mutual Fund

Mutual fund is a fund where money is collected by general public and it is invested in share market. Compony which collect funds from public is called Asset Management Compony(AMC).

There is a fund Manager for every Mutual fund, who invests the collected fund to the stock market and gets profit. This profit is then distributed to Investors. 

The AMU which manages the fund charges some fees for their service. It is called Expense ratio.

source: pixabay.com

There are so many Mutual Fund companies available in the marked, such as ICICI Mutual fund, SBI Mutual Fund, Kotak Mahindra Mutual Fund, Birla Sun Life Mutual Fund and so on.

 

And there so many schemes of every Mutual Fund. There are Large cap fund, Mid cap fund, Small cap fund, Hybrid fund, ELSS fund, Sector fund etc.

Your money in Mutual Fund is generally invested either in Debt or in Equity.

 

In Debt Fund ,your money is invested in Government securities, Treasury Bills and Debentures.

 

Government issues this instruments to the public to raise fund and gives interest on it.

 

In equity fund your money is invested in The Stock Market. There are so many Equity Mutual Fund also.

What Is An AMC.

Every AMC is managed  by a professional Fund Manager. He decides to invest or disinvest in a particular stocks. 

The performance of every Mutual fund depends on its Fund Manager skills. 

So, before investing in a Mutual Fund one must see the past performance of that Fund Manager.

You can invest in Mutual Fund either by Lump Sum amount or by SIP. 

In SIP you invest in monthly basis. You can open an SIP account by as minimum as 500 rupees per month. 

This account can be opened in any bank with auto Debit facility. Every month on a fixed date your Investment Amount is cut and sent to your AMU, and then you get no. of units. Every Mutual Fund Scheme has a value of its one unit. It is called NAV of that scheme. If you invest 1000 rupees in a mutual fund scheme which NAV is 20 rupees, then you get 50 units of that scheme. After one year if NAV of that scheme is increased to 24 rupees. Your profit will be 200 rupees.

How to grow money triple in six years.

Friends! Today we are living in the age of Materialism. Every things in this world is valued by money. Although it is not hundred percent true. I, too, do not agree with it. But it is a fact that money is playing a vital role in this world. There is a famous proverb-

Money is not god, but it is not less than god.

 We may agree or not agree with this popular saying, but we accept the importance of money. Everyone wants to grow his money legally. Somebody wants to grow their money double or somebody wants to grow their money triple in the shortest period of time. So, I am going to show you how to grow your money triple in the shortest  possible time.

photo source-pixabay.com

The rule of 114

It is called the rule of 114. In this rule, we divide this number with the number of years in which we want to grow our money threefold. For example, if you want to grow your money triple in three years then you have to divide 114 by 3. The result is 38. That means at the rate of 38% interest rate annually, your money will be tripled in three years(Approx). But it is sad, there is no investment tool available to give guaranteed 38% return. Some mutual funds do give this return sometimes or the other, but they do not give guaranty of it.

So, let us see another example: If you want to grow your money triple in 6 years. Let us divide 114 by 6, we get 19. It is the required rate of interest by which you can get your money tripled in six years(Approx).

In order to get our money tripled in 6 years we have to choose an investment option that might give 19% interest rate annually. There are a lot of Mutual funds that give 19% returns in six year(Approx). All you have to do is that invest in a blue chip fund with growth option and stay invested in six years(Approx).

How to secure your daughters future?

In this article I am going to show you a better way to secure your Girls future. Yes, I am talking about Sukanya Samridhi Yojna It is a government plan delivered by Post office. You can get a maximum of up to 8.5% return per annum. You can plan for your Girls Higher education or Marriage. It gives marvelous return.

Salient features

photo source: Pixabay.com

A father or a Guardian can open this account in any nearest Post office in the name of his Daughter. You can open this account in the name of maximum two girl. But, total yearly contribution should not be more than 1.5 lac rupees in a year for both child.

The minimum age of your Daughter should be 10 years. It can be extended up to 21 years of age of girl child. It can be closed at any time after attaining 18 years of age, if your daughter gets married. And partial withdrawal is allowed after getting your girl child 18 years of age.

You can deposit up to 1.5 lac rupees in a financial years either in the name of one girl child or two girl child. But, a minimum of 1000 rupees must be deposited in a financial year. If you do not deposit minimum 10000 rupees in a financial year the account becomes Dormant. And to revive the account you have to pay a penalty of 50 rupees for every Default year.

There is a flexibility in this scheme in terms of  Your contribution. You can deposit either lump sum 1.5 lac rupees in one go or in monthly installment.

So, friends! The Government has a provided you with a tool by which you can secure your daughter future. 

How to get money doubled in four years.

Friends, everyone wants to grow their money Double in short period of time. There are numerous investment tools available to get your money double. In this article, we are going to know, how much interest rate needed to grow your money in to double in a fixed time period. And we will also know how many years are needed for getting your money doubled at a particular interest rate. We will know it with both sides.

The Rule Of  72-

It is called the rule of 72. In this rule we divide 72 by the no. of years. And we get that particular interest rate. By this particular interest rate we can get our money doubled.

For example: If we want our money doubled in 6 years, we divide 72 by 6 and we get 12%. This is the particular interest rate by which we can double our money in 6 years.

If you want your money getting doubled in 4 years you should have your interest rate 18% per annum. Now you have to search for an investment scheme which could give you 18% annual return. You can get this return easily in any good mutual fund scheme.

Mutual fund-The best investment option.

What is Stock Market?

What is the Sensex and Nifty?

What is Mutual Fund?

You always wanted to know answers of many questions related to stock market. You always used to think investing in Stock Market. But you did not get opportunity to invest in the Stock Market. And you have no idea about how to invest in Stock Market. You have overheard someone talking about  stock market is a gamble. You have read every now and then in Newspaper that The sensex have surged 1000 points or fallen down 1000 points. May be, you have heard about famous stock market crash of 2008. It is because, you know nothing about Stock Market and it's behaviour.

The positive thing about the Stock Market is that it gives amazing results over a period of time. As you know that there is no gain without risk. If you want more profit then you have to always take more risk. The same thing may be applied to the Stock Market. Investing in Stock market is also a mind game. You must have more knowledge before investing in stock market. If you want to invest in the Stock market, you should have following things-

1. A Demat account in NSDL or CSDL.
2. A Trading account in a brokerage house.

Mutual Fund

But if you do not want to take risk and have time for knowledge and research. There is a safer tool present in the market to invest in Share market. That Investment tool is Mutual fund. You have also seen its add in TV and Newspaper. There is a fund manager in every Mutual fund who takes decision and invest in share market. They have basic infrastructure like professional fund managers, investment research, business analysis and Stock market analysis for you. For all of these facilities they charge you in the form of Entry load and Exit load.
Mutual fund companies accept funds from investors and then they invest it in Stock market. Every mutual fund has a Fund Manager, who takes decision where to invest your money to get maximum returns. He has expertise to take risk. He has a staff of professionals who every time analyses stocks  and its behaviour. In this way they get maximum returns.
In return for your investment, Fund houses allot you Units according to their market rates. Your investing amount is divided by the current value of N.A.V.(Net Assets Value) and you are allotted the no. of units.
For example: If your Fund is 10000 rupees and NAV is Rs.10 then the no. of units will be 100.

Open ended Mutual Fund:

This type of Mutual fund is very popular among investors. It has no lock-in period. You are free to Enter or Exit at any time. If you get good returns you can exit the funds. You are given current market rate of NAV.

Close ended Mutual fund:

Your money is locked for three years in this Fund. Tax saving ELSS fund is a kind of this fund.

There are so many funds available in the market. Some of them are as follows-

• Large-cap fund.
• Mid-cap fund.
• Small-cap fund.
• Blue-chip fund.
• Hybrid fund.

Growth or Dividend Options.

There are two options available for each Funds, Growth or Dividend.

In my view Large cap fund with Growth option is fit for you.

A secure way to grow your money enormously.

Friends, you all have heard about public provident fund. It is popularly known as PPF. It gives you good return even today. There was a time when it used to give 12% Annual return. 

It is a very attractive Investment tool for Government employee as, it gives you good return as well as Tax Benefits. You can open PPF account in any Nationalized bank and Post offices in India. 

And friends! A very good thing about it that you can open this account in just one day. You need only KYC documents and as minimum as 500 rupees only. 

If you are a Government Employee you can avail Tax benefits under article 80C of Income Tax Act 1961. Under this scheme you can invest 1.5 lac in one year and claim tax benefits on it. That`s why it is very popular in Government Employees. You have not to give Taxes either on the Interest or on The maturity Amount.

Central government awards Interest Rates every year for it. The good thing is that we get Compound interest in PPF. The Interest rate is not stable. If Finance ministry finds it fit to be increased, they increase it time to time.

An subscriber can open an account in his or her name but investments should not be more than 1.5 lac rupees in a financial year. One can invest either in lump-sum amount or in the monthly basis. But if you invest in monthly basis then you should deposit your monthly contribution before the fifth of every month. The interest is calculated on the balance amount between the fifth day of the month and end of the month. So, if you deposit your money after the fifth of the month  then you lose in terms of interest.

Although there is a lock in period of 15 years for PPF, it does not mean that one cannot get ones money in need. There is a provision to get 25% of balance amount available, from the third to the sixth financial year after opening the account. The taken loan must be paid in 36 months. After paying existing loan you can get another loan. A partial withdrawal is allowed after seven years. so there is full flexibility in this account.

Another feature of the PPF account is very interesting. You can extend your PPF account after the 15 years lock in period with the same interest rate without further contribution. It is extended for five years term in one go.

One thing more about PPF account. If you missed to deposit minimum amount of 500 rupees in a year, your account becomes Dormant. Then you cannot operate your account as usual. If you want to activate your account you have to pay a fine of 50 rupees for every year.

so, friends! I hope this article will be very useful for you.