Article

While it is good news for those looking for fixed deposits to be a short-term investment option, others might not be so lucky, it is widely expected that the lending rates too would go up, especially those with home loans would be required to pay more in the form of EMIs. The increase in the lending rate is to tighten the liquidity in the market.

Your life insurance policy should cover minimum and basic expenses of your family. Your dependents life should not significantly alter in your absence. If you are spending INR 15,000 per month for your family, your insurance should make sure that your family is able to get the same amount after your death. If necessary, a little extra amount should be taken to adjust for inflation.

Most lenders offer credit cards against a fixed deposit account. You will be allotted up to 75% of value of the fixed deposit as credit limit on your card. Later on, with judicious usage and consistent bill payment, you can step up your credit limit. But when you default on your payment, the lender will use the fixed deposit as the security. The secured credit cards on regular and prudent use would help the user build up considerable credit history for the future.

The importance of buying a health insurance policy has not been understood by many in India as people have not considered it seriously except that it can save taxes. A sudden illness or unforeseen medical treatment could shatter your finances and leave you debt ridden. A financial trouble over a health trouble is really too much to bear for anyone with a moderate monthly income. Hence buying a health insurance policy at an early age could lessen your worries on healthcare at old age and offer you a peace of mind.

Most successful businesspersons were not born rich. They all started small and acted smartly in their endeavour to become successful. Many people try to achieve success in their business, but due to multiple reasons, they may have dropped their ambition in the mid-way. Not getting a business loan could be one of the reasons for a setback in the business career.

Buying a home is a major financial decision that most people will make. Being a very big investment, most people cannot pay the full cost of a home in a single payment. This is where a home loan comes in, it gives the buyer the ability to buy their dream home for which the borrower will repay the loan and interest in Equated Monthly Installments. It is when choosing the interest rate that the dilemma comes in – to choose fixed rate or floating rates.

When you continuously use your credit limit to maximum it shows that you do not have a grip on your finances. Your credit limit upon your monthly utilization of your credit card is called credit utilization ratio . If you max out your credit card it will have negative effects on your credit score.

Mutual fund is one of the popular methods of investment that offers high returns in the long-term. If you have invested in a mutual fund, you might want to know how to redeem the amount invested at a certain point of time. Moreover, it is also vital to have substantial knowledge about when you can redeem your funds and when not to do it.

Mutual fund investment has become a popular financial instrument for many people post the push given for investment after demonetization. With the advent of online facility to manage the mutual fund accounts has popularized this instrument, awareness and educational programs too have helped.

When it comes to investments, a large number of people look for safe or risk-free investments that guarantee capital protection. A safe investment is one that has little or zero risks.

Term insurance is a type of insurance that can be availed for a certain period of time or a fixed term (number of years).

No credit is where a person has never taken a loan or credit card which means that the person has no financial history for banks or lenders to analyze or weigh on. While a bad credit means the person has taken a loan or credit card but was not regular in their payment or did not pay their dues in full. These would have led to their credit score to plummet.

Investment in mutual funds is the most talked about topic in finance in recent times. There are varied financial vehicles where you can park your money and earn a handsome return after several years. Mutual fund is one of them that allows you to invest and redeem the savings after a specific period. A lot of people in India hesitate to invest in a mutual fund purely for the reason it is subject to market risks. Some are eager to invest but still do not know how to go about it.

The premium on the travel insurance depends on the length of your trip. Longer stay in a foreign country usually attract higher premiums. Moreover, older people may have to pay higher premium as travel insurance increases with increase in age, as it is considered a risk profile.

People today give a lot of importance to their health where many people do regular exercise, follow strict diets and even go for regular health checkups. This is a testament to the World Health Organization (WHO), celebrating World Health Day each year on April 7th, the day of their founding.

Ever since private companies could solicit insurance policies, there has been a steep growth in the insurance sector. With more people realising its importance, the future looks promising for the insurance industry.

Jhanvi has been using a credit card for the past 3 years, which she has been using to pay her mobile bills, electricity bills etc. To make her life easy and to make sure her payments are done on time she had opted for the auto payment of bills.

Each year salaried individuals need to declare their investments to their respective companies to determine the TDS or Tax Deducted at Source. TDS is where your company based on your investments and tax declaration will deduct the funds from your monthly salary. Many people will declare a lot of investments which they might not go through with and pay tax in bulk at the end of the financial year. Those who invest only do it as another source of tax deduction and do not put in any real effort or thought into it.

Insurance, as we may know it, is a financial tool that helps in reducing the economic crisis that might occur due to unforeseen events. It is a contract or agreement with an insurance provider whereby the company provides you financial security in exchange of a small amount known as a premium that is paid over a set period of time. The financial loss caused due to a peril is compensated through the insurance.

Whenever you apply for a credit card you will have a credit limit based on your repayment capability. In due course the card issuer might assess your credit usage, repayment history and salary increase to tempt you by offering an increase to your credit limit.

A personal loan is an unsecured loan where the borrower does not have to pledge any security to obtain the loan. The funds can be used for various purposes like wedding, education, travel, medical emergency etc.