A guide to getting a more affordable home loan rate

A Guide to getting a more affordable home loan rate

The recent decline in demand for homes has resulted in significant changes in the interest rates for home loans. Since demonetization came into effect, the demand for loans hit rock bottom as the liquidity and availability of cash fell drastically. This caused financial lenders to restructure their interest rates on a large scale. Hence, any new borrower of home loans and existing home loan borrowers who are looking for home loan balance transfers for more affordable home loans are likely to have access to very competitive home loan interest rates offered by various lenders. The primary question is how to make an informed decision that actually offers you monetary benefits.

Your guide to get the perfect rate for your home loan

Getting a good interest rate is not as difficult as it seems. All you have to do is follow the steps mentioned below:

  1. Study the market: Pay attention to fluctuations in the RBI’s repo rate (the rate at which it lends to banks), the rise and fall in demand of homes, government policies regarding housing and other economic factors like demonization. This will give you a background using which you can understand when you can get a lower home loan interest and what to say when talking to your existing lender.
  2. Negotiate with your existing lender: If you are a borrower seeking a home loan balance transfer, you may have already considered this option. If you find interest rates of your lender too high and difficult to repay, it is important to initiate a dialogue and negotiate with your lender. Lenders would often try to be as helpful as possible since they do not want to lose customers. After a negotiation, it is possible that the lender would offer the most mutually beneficial alternative.
  3. Choose a lender who offers home loan interests based on MCLR: MCLR is the marginal cost of funds based lending rate and reflects RBI’s repo rates and a lender’s efficiency.It is the lowest possible rate of interest that lenders offer based on RBI guidelines. When opting for a home loan balance transfer, choose a lender whose rates are based on MCLR rather than a base rate to offer you loans with the lowest interest.
  4. Go over the basis points: Basis points make it easy to evaluate whether you are losing or gaining from interest rates. In case the interest rates in the market for home loans are incredibly low and there is a difference of 75 basis points between your interest rates and the market interest rates, you should definitely consider doing a home loan balance transfer.

When opting for a home loan balance transfer for a better rate, keep the following in mind:

  1. Conduct a thorough analysis of potential lenders, their reputations, and the interest rates they offer. Try to choose the lender with the lowest interest rate and no hidden costs.
  2. Pay attention to terms and conditions and analyse the proposal offered by your new lender in detail. See if it offers additional incentives like insurance cover. Also keep tabs on other details like processing charges or foreclosure fees.
  3. Assess the track record of the lender and pay particular attention to the home loan interest rates charged and the fluctuations or increases as time passes. Based on the track record, you can assess if the new lender is right for you.
  4. Check the terms thoroughly for hidden charges. Certain lenders appear to have favourable interest rates in the beginning; however, as you proceed various hidden charges crop up, making matters more expensive for you. That’s why it is prudent to read the terms in detail.

Bajaj Finance offers one of the best home loan schemes in the market with affordable balance transfer that can get you benefits like low interest of 8.50%, a top up loan and a 3 EMI holiday. Use the home loan balance transfer calculator

You can use their home loan eligibility calculator online (https://goo.gl/6psL7W) and even calculate your balance transfer here. See more here.

Why a long-term FD investment is not advisable for you

Why a long-term FD investment is not advisable for you

Fixed Deposits have a long history of being the safest bet when it comes to investing your money wisely. In fact, as early as two years ago, an RBI study claimed that bank deposits account for approximately 57% of savings made by individual households.

Fixed deposits are invaluable for a lot of reasons. They preserve your capital and keep your money safe. They also ensure stability and a fixed amount of returns on your investment. Fixed deposits can be liquidated quickly and your principal can be in your hands within only a few days or maybe even hours. Thus they offer a very convenient way of investing your excess funds and savings.

If you think you’re a little down on your luck in the shares or stock markets, fixed deposits can come to your rescue, regardless of your misfortunes. They are also quite beneficial in emergencies or in case you’ve set short-term financial goals.

And that is where the problem lies. In the short term, FDs are a lucrative idea. But what about when it comes to long-term investments? How do they fare when invested for a longer tenor like 8 or 10 years? Not well at all, according to historical data.

Fixed Deposits—the long and short of it

These financial instruments might be profitable for, say, a maximum maturity of 5 years, but after that, studies show that you’re just losing your hard-earned money.

Here’s why:

What are your Fixed Deposit returns after tax deduction?

If you consider the standard interest rate of 8% to 9% for a fixed deposit between 5 to 10 years, you can figure out for yourself how a fixed deposit chews through your savings rather than enhances them. You just have to consider the post-tax returns as opposed to pre-tax returns, which is a common mistake. Because even from the first year, once you pay taxes, your rate of interest drops from 9% to 7.2% if you belong to the 20% income tax slab bracket. That is why Fixed Deposit for longer durations works against you.

What are your Fixed Deposit returns after inflation?

If you’re considering an FD for longer durations, it becomes necessary to account for the role of inflation in your financial plans. The purchasing power of the Indian rupee has undergone a drastic reduction over the past couple of decades. Even if you take into account a modest rate of inflations, say 8%, and your rate of return is around 7%, you are actually losing money. As if this wasn’t enough, imagine the ramifications when your fixed deposit maturity tenor is 10 years. The negative impact on your returns will be much higher in this case.

Unless it’s for a term equal to or less than 5 years, don’t consider Fixed Deposits

Fixed deposits are a great method of capital preservation if you want to invest for say 12 to 36 months, or safeguard your money for emergency situations.

FDs offer stability, safety and good returns but keep in mind that long-terms fixed deposit investments may not be making you money.

Know More FD Interest Rate

Invest in FD @8.05% High Interest Rate

Things to know about CIBIL score

Things to know about CIBIL score

Your CIBIL score is a measure of your credit-worthiness – it keeps a track of your borrowing history and helps the lender determine your repayment intent. A good CIBIL score can make or break your loan application. Find out everything you need to know about CIBIL score and how you can improve it with this video.

Types of Personal Loan- Ultimate Guide

Types of Personal Loan- Ultimate Guide

Are you planning a family vacation or is there a wedding coming up? A Bajaj Finserv Personal Loan is the answer to your financial requirements without the wait. Learn about the best interest rates, the shortest disbursal times, and more.

Personal Loan for Higher Education

Personal Loan for Higher Education

Thinking of sending your child abroad? You might to consider various other expenses apart from college fees. Right from lodging and boarding to emergency expenses. Know how you can tackle this financial problem

Personal Loan for Higher Education

Personal Loan for Higher Education

Thinking of sending your child abroad? You might to consider various other expenses apart from college fees. Right from lodging and boarding to emergency expenses. Know how you can tackle this financial problem

Up to Rs.10,000 cashback on Samsung Galaxy S7 series

Up to Rs.10,000 cashback on Samsung Galaxy S7 series

The Samsung Galaxy S7 series is well-known for its strong lineage and powerful features among both Samsung enthusiasts and smartphone lovers across the world. Its predecessor, the Galaxy S6, was widely acclaimed for its revolutionary design and high performance.

With the Galaxy S7 series, Samsung sought to reinforce the trust and loyalty that the S6 inspired among its users. It achieved this by upgrading each and every aspect of the S6 and shaping it into an even more high-performance device. However, this meant that the S7 series would also be on the slightly expensive side, thanks to its state-of-the-art features. Fortunately for all Samsung Galaxy S7 fans, this is no longer the case, thanks to a wallet-friendly range of offers being offered by Samsung to those who know the true value of owning a smartphone from the Samsung Galaxy S7 series.

Cashback offers on your favourite smartphone!

Here’s a detailed list of all the Samsung Galaxy S7 series variants with their respective cashback offers:

  1. The Samsung Galaxy S7

The basic model of the Galaxy S7 series, this smartphone packs quite a punch. It comes with a 5.1’’ Quad HD 25601440 pixels display with 557 ppi pixel density and 16M colours. Its rear camera is equipped with brand-new features like dual pixel, sharpened auto focus, hyperlapse, slow motion and Pro-mode. The S7 also features an octa core processor, 4GB RAM, dual SIM capabilities, a 3000mAH battery plus water and dust resistance.

  • With a revised price of Rs.43,400, the Samsung Galaxy S7 also comes with a Rs.5,000 cashback! Buy it on no cost EMIs using the Bajaj Finserv EMI Card.
  1. The Samsung Galaxy S7 Edge 128GB

Jumping directly to the top model in the S7 series, the S7 Edge 128GB sports a 5.5” Quad HD super AMOLED capacitive touchscreen. In addition to the 12 MP rear camera, the front camera is perfect-crafted to capture the best selfies. Along with all the features of the S7, this device comes with an internal memory of 128GB and an even more powerful 3600mAH battery that offers up to 27 hours of uninterrupted talk time.

  • At a base price of Rs.56,900, you can avail a cool Rs.5,000 cashback on this device as well. Buy it on no cost EMIs using the Bajaj Finserv EMI Card.
  1. The Samsung Galaxy S7 Edge 32GB

For those who like to keep their smartphones clean and free of unnecessary clutter, the Samsung Galaxy S7 Edge 32GB is a perfect companion. It encompasses all the features of the S7 Edge 128GB apart from the lower internal memory, which can be expanded to 200GB just in case you feel the need to download and save tons of HD movies to watch on the super-sleek screen, or play the latest high-quality games with advanced built-in options like a game launcher and game tools. It is a truly versatile device in every sense of the word.

  • The Samsung Galaxy S7 Edge 32GB can be yours for just Rs.50,900. It comes with a cashback offer of Rs.10,000 if you choose the Coral Blue colour, and Rs.5,000 if you choose any other colour. Buy it on no cost EMIs with the Bajaj Finserv EMI Card.

Get your hands on a Bajaj Finserv EMI Card now to avail extra benefits like no cost EMI, and no hidden charges! Buy your chosen Samsung Galaxy S7 and S7 Edge smartphone here.

The Samsung Galaxy S7 series is well-known for its strong lineage and powerful features among both Samsung enthusiasts and smartphone lovers across the world. Its predecessor, the Galaxy S6, was widely acclaimed for its revolutionary design and high performance.

With the Galaxy S7 series, Samsung sought to reinforce the trust and loyalty that the S6 inspired among its users. It achieved this by upgrading each and every aspect of the S6 and shaping it into an even more high-performance device. However, this meant that the S7 series would also be on the slightly expensive side, thanks to its state-of-the-art features. Fortunately for all Samsung Galaxy S7 fans, this is no longer the case, thanks to a wallet-friendly range of offers being offered by Samsung to those who know the true value of owning a smartphone from the Samsung Galaxy S7 series.

Cashback offers on your favourite smartphone!

Here’s a detailed list of all the Samsung Galaxy S7 series variants with their respective cashback offers:

  1. The Samsung Galaxy S7

The basic model of the Galaxy S7 series, this smartphone packs quite a punch. It comes with a 5.1’’ Quad HD 25601440 pixels display with 557 ppi pixel density and 16M colours. Its rear camera is equipped with brand-new features like dual pixel, sharpened auto focus, hyperlapse, slow motion and Pro-mode. The S7 also features an octa core processor, 4GB RAM, dual SIM capabilities, a 3000mAH battery plus water and dust resistance.

  • With a revised price of Rs.43,400, the Samsung Galaxy S7 also comes with a Rs.5,000 cashback! Buy it on no cost EMIs using the Bajaj Finserv EMI Card.
  1. The Samsung Galaxy S7 Edge 128GB

Jumping directly to the top model in the S7 series, the S7 Edge 128GB sports a 5.5” Quad HD super AMOLED capacitive touchscreen. In addition to the 12 MP rear camera, the front camera is perfect-crafted to capture the best selfies. Along with all the features of the S7, this device comes with an internal memory of 128GB and an even more powerful 3600mAH battery that offers up to 27 hours of uninterrupted talk time.

  • At a base price of Rs.56,900, you can avail a cool Rs.5,000 cashback on this device as well. Buy it on no cost EMIs using the Bajaj Finserv EMI Card.
  1. The Samsung Galaxy S7 Edge 32GB

For those who like to keep their smartphones clean and free of unnecessary clutter, the Samsung Galaxy S7 Edge 32GB is a perfect companion. It encompasses all the features of the S7 Edge 128GB apart from the lower internal memory, which can be expanded to 200GB just in case you feel the need to download and save tons of HD movies to watch on the super-sleek screen, or play the latest high-quality games with advanced built-in options like a game launcher and game tools. It is a truly versatile device in every sense of the word.

  • The Samsung Galaxy S7 Edge 32GB can be yours for just Rs.50,900. It comes with a cashback offer of Rs.10,000 if you choose the Coral Blue colour, and Rs.5,000 if you choose any other colour. Buy it on no cost EMIs with the Bajaj Finserv EMI Card.

Get your hands on a Bajaj Finserv EMI Card now to avail extra benefits like no cost EMI, and no hidden charges! Buy your chosen Samsung Galaxy S7 and S7 Edge smartphone here.

5 Risk-free Investment Options For Senior Citizens in India

Today, senior citizens are no longer dependent upon their children in their retirement years. Most retirees are living a financially independent life due to the better financial awareness and wise investments. But given the increasing inflation, rising healthcare costs and increasing longevity of life, it has become even more important for us to look for investment options that provides a steady source of income in the later years of our life.

There are many investment options available in India specifically for senior citizens, and here’s a look.

  1. Senior Citizens Savings Scheme:Any person over the age of 60 years is eligible to invest under this scheme. People who opt for voluntary retirement can invest from the age of 55 years. Investments can be made for 5 years, however there is no provision to withdraw money under this scheme before expiry of the tenor. A maximum investment of Rs.15,00,000 can be made in this account, which yields returns at about 8.5% p.a. Interest is paid quarterly and returns are market-linked based on the 5-year government bond yield. It is a risk-free investment since it is government backed investment option. Also, investments made under this scheme are eligible for tax deduction under section 80C.

2. Senior Citizens Fixed Deposits:Senior citizens fixed deposits are just like regular fixed deposit but with a higher rate of interest. Usually, these fixed deposits offer 0.25% to 0.50% higher interest rate than normal FDs. It is the most secure and risk-free investment option that provides regular income in your retirement years at a fixed interest rate. In case of FDs, you can also choose the interest pay-out depending upon your requirements. The time period for investment in FD is quite flexible. Also, if you are in need of money, you can withdraw any time by paying a penalty or take a loan against your FD.

3. Post Office Monthly Income Scheme (POMIS):This investment option can be made at any post office. It is five-year investment scheme that helps you earn interest at 7.80% p.a., which is payable on a monthly basis. Anyone who is 10 years or older can invest in this scheme. You can start this investment with a minimum deposit of Rs.1500 and make a maximum investment of Rs.4,50,000. If the account is held jointly, you can invest further up to a limit of Rs.9,00,000. You can make premature withdrawal under this scheme by paying certain amount as penalty. 

  1. Annuities: Annuity is another secure investment option for retirees where you can buy annuity plans from life insurance companies, which currently yield taxable pension at about 5% to 6% per annum. In case of an annuity, there is no provision of returning the capital amount and you only receive returns in form of pension. 
  1. Tax-free bonds: They are only issued by the government-backed institutions, which make it a safe investment option. It is usually offered by Indian Railway Finance Corporation, Power Finance Corporation, National Highway Authority of India, and other similar organizations. Also, they can be easily bought and sold on the stock market since they are listed there. They are generally the long-term investment that matures in 10, 20 or 30 years depending upon the bond. Hence, you should consider your financial goals before making this investments, but note that the interest earned on these bonds is tax free.

If you are thinking about investing in senior citizens fixed deposits, try Bajaj Finance’s Fixed Deposit offerings that yield an interest of 8.30%. Safe from market volatility and with high safety ratings and flexible tenors, this may be the investment scheme that you looking for.

Know More about Senior Citizen FD

Invest in Senior Citizen FD @8.30%

Page 2 of 15412345...101520...Last »