By Chaitali Dutta
Home mortgage rates of interest are rising now. I’ve a brand new mortgage for 10 years. Should I double the EMI quantity or accumulate some lumpsum to repay part of the principal?
—Dhiraj Kumar
In case you’ve surplus funds month-to-month, growing the EMI is an acceptable means ahead within the present occasions when the rates of interest will proceed having an upward development. The curiosity is calculated on a each day decreasing steadiness in your house mortgage, therefore early repayments prevent extra curiosity.
What is the method I ought to comply with to take a gold mortgage for one yr as I want cash for an emergency?
—Ashok
The first choice could be to investigate together with your current bankers the place you’ve your wage account or have the majority of your cash. The possibilities of getting a greater deal and repair could be increased. In case your banker doesn’t present gold loans, then you might take a look at some monetary establishments which might be market leaders in gold loans. It is advisable to go together with identified, reputed organisations on your gold mortgage as you wish to get again your unique ornaments/gold items intact when you repay the mortgage. The course of is comparable for banks/FIs. The ornaments are first checked for gold purity, weighed and approximate valuation ascertained. You shall be sanctioned a mortgage relying on the gold valuations. The paperwork is then accomplished earlier than the disbursal of the mortgage to your account.
I’m a senior citizen and my retirement funds are in nationalised financial institution’s fastened deposit schemes and are fetching very low charge of curiosity. If I make investments Rs 5 lakh every in personal banks, will my cash be protected?
— title withheld
FDs (or any deposits) that include a better return have an inherent danger to the capital. The inherent dangers are the liquidity dangers and default dangers. Under the DICGC assure, deposit quantity (together with curiosity) as much as 5 lacs per individual, per financial institution is roofed. If you go for curiosity payouts, you might go for a Rs 5 lakh deposit. In case you’re choosing a cumulative deposit, then the maturity quantity shouldn’t exceed Rs 5lakh to be lined below DICGC.
The author is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).
Send your queries to [email protected]
Source: www.financialexpress.com”