Loans-- Burden or Booster...

Loans.. Loans.. Home loans, Personal Loans, Vehicle loans.. even Marriage Loans and Loans for Dowry as well these days... So why the loan system has come into light so much that everyone is able to use it.. so we will see whether it is a Burden or Booster for your career or to make your dreams come true..

So,, here we go..

Before we start.. let me tell you some facts..

Never a bank will advertise on Loans and the interest rate or the benefits for farmers even though India is majorly Agricultural Country..

Never a bank will call a farmer and ask him if he is satisfied with the services even though his transactions are more than any average person in other white collar professions.

Never a bank will send a representative to the farmer house to collect the documents or to give them the documents..

So all the benefits are for us because.. we are clever and are able to operate the mouse.. don't take your hand away.. that's ok.. I will tell you how we can be benefited from these schemes..

According to any of our parents (who are not in family business), taking a loan is a sin. A bigger sin than having an extra marital affair. So this post is strictly for youngsters as my parents will kill me if I say that I need to take loan to upgrade my car to a SUV.

Let us see the common terminology used:

Home loans, Vehicle Loans, Personal Loans.. you all know.. What is the Floating and Fixed Interest rate and how does it influence the EMI (Equated Monthly Installment or Every Month Installment as these days calculations are done on Reducing rate). So a fixed rate is the rate of interest which is fixed at the time of the loan agreement. This percentage will be decided by the bank and the bank should follow the RBI(Reserve Bank of India) guidelines in determining these rates. The fixed rate varies from bank to bank around 5-7%.

Here comes the most profitable part for banks.. FLOATING Rates.. they say it is beneficial for customers.. but let me tell you.. this is purely for making us more comfortable and to tempt us to take loans and on the top of all.. they know that we cannot predict the future or market trends as they do.. so it is a win-win situation for both customer and banks..

So why two rates???

Floating rate will be changing according to the market conditions.. and also competition among the banks will sometimes comes for the benefit of the customers. The rate keeps floating on the basis of market condition and this is again governed by the RBI guidelines (which a common man will never understand and so stick to the numbers given by the banks). Fixed rates will be 5-7% more than the Floating rates at any given time. That gives the margin for the banks.

The clever bankers will advice you to go for Fixed in case of vehicle loans and personal loans as the amount is small and it will not influence the bankers on a large extent.. But Home Loans will mostly be floating as the principal (Actual Loan Amount) is more.

So now our post: Burden or Booster..

According to me the person who doesn't take in this generation and try to live the life is a fool.. one of the study shows that, its the Americans who enjoy most of their life rather than we in east(Indians, Chinese and Japanese). It seems we do lot of hard work and save money in international banks.. where Americans take credit from the same banks at higher interest rates and live a luxurious life and die one day.. and loan is a loan for the bank.. Famous bank which almost went bankrupted when this recession started.. see how many companies in India have tie-up with them for their employees salary accounts..

So take a loan considering your repayment capability and live your life.. Don't take the burden.. You just need to spend sometime calculating the EMI.. these days lotof tools are available online which will help you in that as well. And you can manage your finances anytime. Today, when people talk about recession everywhere, see how many companies are launching their new model cars into markets.. Just imagine how many Small salaries people are able to bu at least 1BHK in a city like Mumbai.. all this is possible only because of these Loans..

Important thing is that, when you are taking a loan, you should never see the net amount you are paying unless the principal amount is very less Eg.. a Personal loan of 65000, may be after interest will be 1,00,000 which is a big difference.. but a car of 10,00,000 will be 12, 00,000 which will look ok because you are getting the car to enjoy at least.

So some people think that taking a loan is burden.. but i honestly feel that it is an opportunity given to you to grab the riches of life.. but be on your toes always.. you have a heap on your back.. so as you are enjoying your car or your dream hose.. please make sure that funds are there in your account for the EMI to swallow it or to feel the consequences.... No.. No.. don't think about them... Banks are not sweet to kick you out of your house.. they feel at home always.. and you will be sent out anytime.. so.. better take a CALCULATIVE RISK as the theory says...

Important points to note when taking a Loan:

1. Clear discussion about the Interest percentage.

2. Collect the monthly breakup signed and stamped from the bank.

3. Take a note of the ECS cheque numbers that you give them.

4. Verify the person who comes to your house for document collection.

5. Verify for any hidden costs and any insurance add ups that are added to the agreement.

6. Clearly read the stamp papers that you sign.

7. Keep a copy of the stamp papers and the house agreement, other papers that you gonna submit to bank as when you apply for takeover loan in different bank, you need copy of documents for verification.

8. Finally.. Just think once again.. IS IT A BURDEN OR A BOOSTER FOR YOU...


As always.. Comments are appreciated.. And healthy Discussion Threads.. are always encouraging..

Cars..Selection is more difficult than Driving...

Selecting the car that fits your requirement.. Your style.. Shows your Attitude and Make others feel your presence----- Here are the tips to select one that fits for you...

Please answer the following questions and then we will understand which is the car that we are looking for..


1. How far are you gonna travel average per day?

2. What kind of a driver are you.. Tortoise or a Rabbit?

3. What age group you belong to Physically and Mentally?

4. How big is your family?

5. You prefer Style or Performance?

6. You need Funky stuff or just a Normal factory fitted car.. go to office .. clean it and put it back in parking?

7. Do you party a lot and you want to show your vehicle to your friends?

8. How much loud music you hear..

9. The most important of all BUDGET?

Now we will see how different factors will change our decisions and will end us up in a confusion..


When we are planning to buy a car, you have lot of options starting from a family matchbox car to a luxury BMW.. so what to buy.. obviously, everyone cannot afford for a BMW so in this blog rather than praising the BMW, we will see the criteria in which you need to select a car..

See whats your taste.. few people like to spend 10Lk for a Sedan and few feel that, if 10 lk is to be spent, then why not an SUV.. so its pure taste and the attitude..

If you are silent going person on road who needs good stylish avatar and a professional look, then SEDAN is the best for you. the latest sedans like FIAT LINEA is the one in that class. With its classy looks and a stylish finishing.. it gives you what you want except power.

If you are a rough guy with an attitude to show your presence on road, then an SUV will do the business for the day. Get a Safari or Scorpio and you will observer heads turning to see who is in it and who is driving it.

If you have some extra cash, then you can get both the rough look and also the style in it with premium class vehicles like BMW and MERC.. with Audi in Market now.. we have a reason to celebrate.. a combination of power and looks.. its one of its kind..

So my verdict.. is clear.. an SUV for a rough guy and a Classy car for a Classy guy...


So.. you can send in your comments or we can run threads discussing it... at the end of the day.... make sure of one thing.. BEFORE YOU BUY.. BE CLEAR ON WHAT YOU NEED...

Recession.. Pink Slips... any site and any IT Employee.. these are the words that we have heard off.. Lehman Bros.. these are the people we all should be thankful towards.. because of these bros.. we Officially kicked off.. RECESSION...and these many advantages both to companies.. to us (ALL IT PROFESSIONALS) and to the country happened..

DISCLAIMER:

THESE ARE MY VIEWS AND THIS ONE IS INTENDED TO BE FUNNY AND TAKE IT EASY GUYS.. NOT INTENDED TO HURT ANY ONES FEELINGS... ANY WAYS.. you know to write reviews.. so no worries guys..

So.. we will start by what I mean the positive sides of Recession...

1. Recession brings us to learn New Technologies.. LONG TERM INVESTMENT.

2. It will help an average salaried IT professional to think about Investments (Shares and Properties)--- A Rs.3000 Unitech share was available for Rs 30 in the first days of Recession.. T-Motors is still Rs.140.. So If you have some Rs.30000 in savings.. you can think of a 2 year investment in UniT which will definitely fetch you 50% profit without doing anything.. where you may get only 5% in normal periods..

3. Know how competition and parties with BOSS helped you from not getting Pink Slips.. SO more partying.... Less Pink Slips..

4. Have you observed.. many people postponed their marriage plans at least for 3 years fearing of Job loss if they go for Marriage leave.. I have seen my Manager who went on for Marriage and when he is back.. his ID was not working.. when contacted.. they gave him all the best greeting with his final settlement cheque inside that.. he couldn't even use it for his honeymoon expenses and he had to sit at home and plan his next job rather than plan his first few days with his new wife.. SAD... So Less marriages.. Less Expenses.. Less Population growth too.. LOL...

5. Honestly tell me how many of you have downloaded movies and watched them rather than going to theatres.. See using IT better than before.. which means.. we are utilising IT more than before which is good sign..

6. This is the most talked Recession than any one before..and this is the fastest recovered Recession from than ones before..

There are few more positive points and benefits that we got from Recession.. will update the post again after few days seeing how other factors are changing as THE RECESSION IS OFFICIALLY DECLARED AS OVER..