Your mobile wallet can soon turn into a debit card- MoneyBite Newsletter 10 Apr

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This week RBI kept its benchmark rates unchanged in its first policy meeting, which means your loan interest rates and the deposit rates remain pretty much the same. This move was expected and is required to support the growth of the economy through this phase. 

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Your mobile wallet can turn into a debit card soon

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Are we looking at another Lehman rerun with the Archegos capital sell-off? – Money Bites Newsletter 02 Apr

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

What’s up, everyone?

We enter a new financial year this week. And the Govt decided to give us a shocker by cutting interest rates of small savings schemes like PPF, NSC, Sukanya Samruddhi Yojana, etc but thankfully withdrew the order. The earlier rates stand good.

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Are we looking at another Lehman rerun with the Archegos Capital debacle?

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No interest on interest for loans during moratorium- Money Bites Newsletter 26 Mar

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No interest on interest for loans during the moratorium period

Image source: Livelaw. in

What’s going on here?
The Supreme Court gave its ruling on the petition for an extension of the moratorium period and waiver of interest during the moratorium period.

What does the ruling say?
If you remember the RBI allowed a moratorium on all loans between March -Aug last year. Though the moratorium was meant to allow time and relief to the borrowers, they were charged extra interest (interest on interest) during the moratorium.

In Oct 2020, the Union Government announced they would absorb the compound interest cost on all loans (like home, auto, education, personal loans including MSME loans) below Rs 2cr.

This facility was allowed even to those borrowers who hadn’t availed moratorium. (🤔Remember getting some amount credited to your loan and credit card account?) But some sections who were not satisfied with this approached the apex court for a complete waiver of interest and an extension of the moratorium.

The SC gave a ruling this week which said

  • The compound interest benefit should be allowed for all loans irrespective of the amount.
  • Complete waiver of interest would hurt the banks who have to pay interest to their depositors.
  • No further extension of the moratorium period and those who don’t pay EMIs beyond this period can be classified as Non Performing Assets.

How does this ruling affect you and me?

If you have loans over Rs 2cr expect some relief soon. However, this time it isn’t clear if the govt will bear the burden or pass it over to the banks and NBFCs to make the payment.

Also, if you haven’t paid your loan EMIs beyond Aug 2020, your account may be classified as a Non-performing asset which can cause a big dent in your credit score.

You Ask – We Answer

How much premium would I have to pay for a term insurance policy? – Premchand Pandey

In the last issue of our newsletter, we spoke about why the term insurance policies are going higher from April onwards.

Term insurance policies are meant to insure your life for a fixed period of time. So the premiums you pay depends on many factors like your age when you buy the policy, gender, medical conditions, habits (smoker/non-smoker), profession (a riskier profession like working in an oil rig, the military will have higher premiums), etc.

There are insurance premium calculators available on many websites that you can use to check the premium before you buy a policy for yourself.

💡 Do you have questions on personal finance & investing? Go ahead and ask away in the comments below. Get featured in our upcoming issues.

Financial Tip of the Week

Diversification- You wouldn’t put all eggs in a basket. Then why invest in a single asset category? Investing your savings in different asset categories (cash, mutual funds, debt, stocks, gold, etc)  can help you balance risk and returns.

  • Investing in the international markets can also be a way of diversification. Read📖 our blog which contains all the details on international investing.

Other Trending Bites

Listen 🎧
Buy a home: Home loan interest rates are at an all-time low. Is it the right time for you to buy a home on loan? Find out!

Watch 📺
Tax-free capital gains of Rs 1L: 5days to go before the financial year ends and you can make up to Rs 1L in capital gains….. absolutely tax-free. Check out how?

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Until next week,

Best,

Team Finity

टर्म इंश्योरेंस पॉलिसी प्रीमियम अप्रैल के बाद से अधिक हो सकता है।

इस अप्रैल से टर्म इंश्योरेंस पॉलिसी पर प्रीमियम राशि 10-20% अधिक हो रही है।

 

 

 

 

 

 

 

 

 

 

प्रीमियम की कीमतें अधिक क्यों हो रही हैं? अब क्या बदला है?

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The cost of insuring your life going up? – Money Bites Newsletter 19 Mar

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

Hey there,

Hope you are doing great!

The active cases of Covid 19 in India look to be on a rise again. We hope you are taking necessary precautions and staying safe. The govt has introduced a vehicle scrapping policy in a bid to increase the purchase of fuel-efficient vehicles. What do you think about it?

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Term insurance policy premiums are set to go high in April

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क्या सोना अपनी चमक खो रहा है? क्या आपको इसे अभी खरीदना चाहिए?

सोने की कीमतें 55,901 रुपये के उच्च स्तर से 19% नीचे हैं।

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Is gold losing its glitter? Should you buy it now? – Money Bites Newsletter

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

 

Hey there,

Hope you are doing well!

It was International Women’s Day on the 08th of March and there were some interesting stats bought out by CIBIL- There is a faster growth of women monitoring their credit scores than men. As a correlation, the average credit score for this group is higher at 734 as against 726 for the men who monitor their scores.

The tax saving deadline is fast approaching, hope you have made the necessary tax saver investments.

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Is gold losing its glitter? Should you buy it now?

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📈Passive Investing | Let the index make money for you | Money Bites Newsletter 05 Mar

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

Hey there,

Hope you are doing well!

We are overwhelmed by your responses to our newsletter on the fall in Bitcoin prices. Keep them coming! If you have missed out on our earlier issues, you can always check them out on our website.

The Government has now allowed all private hospitals to carry out vaccinations against COVID. Also, vaccinations have been allowed to be carried out 24/7. If you fall in the eligible category, make sure you get yourself vaccinated at the earliest.

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Is passive investing the way to go for retail investors?

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What factors should you consider while investing in mutual funds?

Mutual funds have become the preferred choice of investment for many new investors in India. In recent times, many top-performing mutual funds have been offering attractive returns to investors. This investment option is ideal for those who have extra funds available and want to park them in a safe avenue for the long-term. 

While mutual funds attract millions of investors, they have some amount of risks and disadvantages. Before investing in mutual funds, investors must make themselves fully aware of all these factors and make an informed investment decision. In this blog, we will discuss some important factors that investors should try to remember before investing in mutual funds. 

To begin, let’s first understand the basics of mutual funds.

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ELon Musk

What led to the massive drop of $8k in Bitcoin Price -Money Bites 26 Feb

Money Bites

Short bites to keep you informed of matters that impact your wallet and wealth

Hey there,

Hope all’s well at your end!

As life gets back to normal, and we are getting out more often, how are you dealing with the fuel price hike? Do you have any smart hacks? Do let us know.

On the other end, India faced the second-highest number of cyber-attacks across Asia Pacific with finance and insurance sectors being the most hit. We hope you are taking adequate safety measures while doing online transactions

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What led to the massive $8k drop in Bitcoin prices?

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