Safe Investment in India

Safe Investments with High Returns in India during Lockdown

Imagine there are 2 employees, “A” and “B”. During the lockdown, “A” invested money in different places and “B” just kept money in his savings account. In a few months, “A” has earned a lot of money but “B” just got little interest from his savings account.

So tell me, in this story who are you? Are you “A” who has invested his money in different places? or Are you “B” who has not invested money anywhere? Do you want to be like “A” and earn more money through safe investment options in India?

Then you’ve come to the right place.

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You can repay your home loan until you are 75 years old in India

Repay Home Loan Until You Are 75 Years Old!

A home loan is a long commitment. For some, it is a relationship that lasts more than their marriage too. 

Funny as it sounds; home loans in India are a serious affair that requires a lot of effort from you in order to ensure that you stay happy. These loans can be paid in different tenure options and until you reach the age of retirement.

These numbers are decided by the Bank/NBFC that deals with providing the best home loans to you. Generally in banking terms, minimum loan tenures range from 15 years and the maximum tenure would be of 30 years. On average, the retirement age is 60.

What is Home Loan Tenure?

Loan tenure is the period you get in order to repay the home loan amount back to the Bank/NBFC. This tenure is decided firsthand before your loan application is approved.

Which is better? Long home loan tenure or short tenure?

Loan tenure depends on a variety of factors of which the topmost is your loan eligibility. What tenure suits you best also depends upon your income level and how much money you can dedicate to repaying the loan amount. You can use a home loan calculator and check if the reduction in tenure is required or no.

Can we change home loan tenure?

Yes. If there are situations where you are not able to repay back the loan EMI on time due to budget constraints, then you can discuss with the bank regarding the possibility of increasing your home loan tenure. If the Bank/NBFC approves, then your loan tenure can be increased, and accordingly, your loan EMI amount will reduce.

How Can I Repay Home Loans until I’m 75 years old?

Usually, Banks allow maximum home loan tenure of 30 years to customers. In rare cases like the Oriental Bank of Commerce, you can also get loan tenure of 40 years. Now, LIC Housing Finance (LICHF) has partnered with India Mortgage Guarantee Corporation (IMCG) and they offer a special loan scheme that allows the customer to repay the home loan until they reach the age of 75.

Here’s an example to help you understand how Home loan tenures work;

Mr. ABC who is 30 years old gets a home loan worth 40 lakhs at 8.5% interest for the tenure of 15 years. Here we will show how much monthly EMI he will pay if the loan tenure kept increasing;

Monthly EMI:

15 years = 39390

20 years = 34713

25 years = 32209

30 years = 30757

35 years = 29874

40 years = 29324

45 years = 28974

So you can see that earlier Mr.ABC would only get maximum loan tenure of 30 years which would help him repay the monthly EMI of 30,757 rupees by the time he reaches the retirement age of 60.

Now with this scheme, he can repay the monthly EMI of 28974 rupees by the time he reaches the age of 75. That’s almost saving 2000 rupees per month.

Overall, a scheme as such does help you, in the long run, to manage your finances and repay a home loan with ease. Be a reliable customer, pay your bills on time, maintain a good credit score and all this will help you get your dream of owning a home turn into reality.

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What is Pradhan Mantri Jan Arogya Abhiyaan?

Yesterday India celebrated its 72nd Independence day. The Prime Minister, Narendra Modi unfurled the national flag at Red Fort and addressed the country for the fifth and last time this tenure. He mentioned about how his initiatives on Clean India, Pradhan Mantri Fasal Bima Yojna, Mudra Loans and GST have been successful in moving India forward. Keeping this in mind, his government now has shifted its focus on “Health For All”.  

The Pradhan Mantri Jan Arogya Abhiyan (Ayushman Bharat) is a new large scale health insurance initiative which aims to benefit many rural citizens of India. This scheme will be launched on September 25th, 2018 which also happens to be the birth anniversary of Pandit Deendayal Upadhyay.  With this scheme, coverage of 5 lakhs will be provided per family annually which benefits many of the poor Indians in the rural and semi urban areas. According to the latest Socio-economic caste census data, there are around 50 crore people who will benefit from this scheme.

 Why is this scheme needed?

Our PM rightly mentions that in poor families, when someone falls sick, it hurts the balance of the entire family’s income and savings. Hence this scheme will aim on such families and reduce their burden as much as possible.

What is covered?

According to a study by the Public Health Foundation of India in May 2018, Indians pay more than three fourths of the total healthcare costs all by themselves.  Due to this, many are pushed below the poverty line. Hence more than 1000+ medical and surgical packages which fall under 25 specialties are covered.

These specialties include chemotherapy, neurosurgery, cardiology and many more. Out of the few benefits, fees such as consultation fees, medicines, diagnostic tests, food for patients, basic hospitalization expenses will be covered. This scheme will be implemented by a joint effort of central, state and district level.   

Who has signed up for this?

For the first stage, Manipur, Himachal Pradesh, Nagaland, Andhra Pradesh, Haryana, Daman and Diu, West Bengal, Chattisgarh, Uttarakhand and Chandigarh. This program will be tested on these states and union territories. Slowly, the whole of India shall be covered. If a state wishes to opt out of this, they can do so. Currently only Odisha has opted out of this scheme.

Overall, this scheme which is also referred to as “Modicare” does look promising and if executed well can shape healthcare in India. With access to such quality healthcare, the country will now be able to work on its way of progress.