#1. A very valid point - Never revolve credit. Remember, once you resort to paying only the minimum 5% amount, even the spend of the subsequent month will attract their usual 2.95% interest. #2. HDFC, HSBC and others give this facility. If you have a FD giving you a 9% interest, then you pay 2% more on your overdraft, i.e. 11% (the rate of 21-22% mentioned in the article is wrong). You can walk into any HDFC bank and check this out. #3. No smart move here. It is doing the same thing as point #2. (DON'T REPEAT YOURSELF) #4. A good suggestion. #5. A good time to buy anything is all bloody supersitious. Agree, go and get one when nobody is buying and you will get a better bargain. Even Dec end is not a bad period. #6. OK, you can also proportionately split the tax advantage for both prinipal and interest. #7. This is all bakwaz. Nobody at the lending institution really cares. In any case, how many of these big ticket loans you take say in a 10 year period #8. When you want a card, nobody gives you one. But don't take a card from anyone on annual fee payment. #9. Not practical. #10. This Sec 80C deduction is a misnomer. For anyone drawing 50000 or more, 12% is EPF, i.e. 6000 x 12 = 72000. So, all that is left to claim any deduction from home loan or anything else is just 30000. This 1 lac, the loan people use to sell their product.
REALLY NO GREAT WISDOM IN THIS ARTICLE - JUST ORDINARY EVERY DAY STUFF THAT EVERYONE HALF LITERATE SHOULD IN ANY CASE BE AWARE OFF.
RE:Point Wise Comment on this Article
by Nandakumar AS on Jul 06, 2007 11:07 PM Permalink
#10. Even a person draws 50000 need not to have 6000 as EPF. 12% EPF is calculated on the basic of the salary which normally 20000 for a person drawing 50000. which is 2400 * 12 = 28800, still 71200 can be used in principal repayment under section 80c.
