The best option is to grow your PF. This is one of the highest interest earning tool. This gives around 8.5% interest. The second good thing is when you are shifting jobs and forget to transfer your PF it still continues to earn the same interest, you jus need to remember you PF number. The bad things are when you decide to withdraw you will have to pay a 30% tax. which erodes a lot of savings you have done. The whole process will take 45 days for you to receive the funds. So, only you transfer and keep acumulating you get all the benefit of cumulative interest at the end of your retirement.
RE:Provident fund
by muthu arounassalame on Apr 09, 2007 02:35 PM Permalink
You can withdraw the money from PF. The interest rate of PF is only 8.5%. But you may be paying around 12% for housing loan. 3.5% interest you can save.
RE:Hi Can U xplain?
by mottu on Apr 09, 2007 12:56 PM Permalink
Yes you can . But read this before doing . Pls check with your banker . In some banks if you are planning to pay more EMI than the current EMI then 2% will be charged as penalty on excess amount ( say your EMI is Rs 15000 and you are planning to increase to Rs 20000 then 2% of Rs.5000 ( Every month )will be charged as penalty ). Pls check with your bank before increasing
Everybody is ready to extract money from the public. And banks are no exception. Low-salaried employees' condition becomes more bleak with the rise of EMI.
Can't our FM think that middle class is taking loan for their dream home. In case, RBI increases the rate, the income tax exemption should also be provided so that the increase in EMI is offset by the income tax paid.
RE:Increasing EMI
by mottu on Apr 09, 2007 12:49 PM Permalink
Pls check with your banker . In some banks if you are planning to pay more EMI than the current EMI then 2% will be charged as penalty on excess amount ( say your EMI is Rs 15000 and you are planning to increase to Rs 20000 then 2% of Rs.5000 ( Every month )will be charged as penalty ). Pls check with your bank before increasing
RE:Increasing EMI
by on Apr 09, 2007 12:16 PM Permalink
yes its always better to pay more then the actual EMI , even if its more by a Rs 1000. It will we reduce the period substantially.
RE:RE:Increasing EMI
by mottu on Apr 09, 2007 12:54 PM Permalink
Pls check with your banker . In some banks if you are planning to pay more EMI than the current EMI then 2% will be charged as penalty on excess amount ( say your EMI is Rs 15000 and you are planning to increase to Rs 20000 then 2% of Rs.5000 ( Every month )will be charged as penalty ). Pls check with your bank before increasing
RE:Increasing EMI
by Rajendra Kulkarni on Apr 09, 2007 12:23 PM Permalink
no. it wont be good. if are already in floating chances are there that in future the interest rate may be reduced. instead of increasing the emi save that in our account and do a part payment. that will reduce your tenures and you can takle the advantage of reduction in rate. i dont think the rbi will further increase the interest. if they do that economy will fall down and shatter our country growth. so dont worry hold on and save that money and do a part payment and reduce your tenures. :)
First things come cheap and then all are trapped in a vicious cycle of debt. Were lending rates lowered for the sole purpose of attracting unsuspecting customers. Once enough money has been garnered, go for the kill, and to hell with people. One thing established in India is the Government arms or wings are there to support the big businesse and take them to greater heights.
RE:Is this another conspiracy against the common man?
by ItsMe on Apr 09, 2007 12:17 PM Permalink
So you are saying the the GDP (and hence your salary) and the inflation has been increased by the government only to trouble you?
Hi Guys, Do not get disappointed. It is a cycle. Few years back the interests rate were as high as 13pc and then they came down to 6pc. Have patience , gritt and determination and things will fall in place. Vinay
