How to get Advantage of the Fluctuating Interest Rate?

Interest rate is a highly fluctuating factor that is connected with different monetary issues including investment, loans, savings and earnings. The affect can be positive or negative but usually a change in interest rate affect a certain thing in a positive manner and at the same time it affect some other things negatively. We can use the fluctuation of the interest rate in a beneficial manner however, we must have to understand different things and market trends to change our loss to profit....Read more:How to get Advantage of the Fluctuating Interest Rate?

Home loan payoff or investment – Which is a smarter move?

Pavitra received Rs. 3.5 lakhs from the sale of a family property in her native place. She has a housing loan of Rs. 30 lakhs for which she is paying a monthly EMI of Rs. 35,000. She has completed 2 years of the 7 years of the loan tenure. Pavitra is thinking about repaying a part of the loan with the entire inheritance amount while her husband is of the opinion that they must invest a part of it for their children's education in mutual funds or equity shares.

Often, these complex decisions...Read more:Home loan payoff or investment – Which is a smarter move?

Home loan payoff or investment – Which is a smarter move?

Pavitra received Rs. 3.5 lakhs from the sale of a family property in her native place. She has a housing loan of Rs. 30 lakhs for which she is paying a monthly EMI of Rs. 35,000. She has completed 2 years of the 7 years of the loan tenure. Pavitra is thinking about repaying a part of the loan with the entire inheritance amount while her husband is of the opinion that they must invest a part of it for their children's education in mutual funds or equity shares.

Often, these complex decisions...Read more:Home loan payoff or investment – Which is a smarter move?

How Do You Compare The Interest Rate Of The Loan Or Deposit?

If you take a loan or deposit money in a bank account to your savings account or term deposit, you will surely have interest rate. Certainly this is an important thing, but there are some other factors playing important role.
APR (Annual Percentage Rate)
The "APR is the percentage of the outstanding amount, which the consumer must pay for the period of one year in connection with payments, administration and other costs associated with the loan."

I will try to use a simpler formulation. It is a transfer of the costs of the loan to interest rates. Actually, it is compared to the credit product with a "perfect credit" where it only costs the interest that is credited annually. With the interest rate and APR may increase manipulate so that even relatively expensive loan looked interesting for the client.

You can easily workout cheaper if using a credit card or overdraft, where you also have more flexibility in repayment (which for some is a disadvantage rather tend to lengthen maturity when they do not "knife in the neck" in the form of a fixed payment schedule), or a combination of both.

Your credit card takes advantage of the grace period, and then repay (usually cheaper) overdraft. Incoming payments leave the account lie for as long as possible (compulsory payments...Read more:How Do You Compare The Interest Rate Of The Loan Or Deposit?

How Do You Compare The Interest Rate Of The Loan Or Deposit?

If you take a loan or deposit money in a bank account to your savings account or term deposit, you will surely have interest rate. Certainly this is an important thing, but there are some other factors playing important role.
APR (Annual Percentage Rate)
The "APR is the percentage of the outstanding amount, which the consumer must pay for the period of one year in connection with payments, administration and other costs associated with the loan."

I will try to use a simpler formulation. It is a transfer of the costs of the loan to interest rates. Actually, it is compared to the credit product with a "perfect credit" where it only costs the interest that is credited annually. With the interest rate and APR may increase manipulate so that even relatively expensive loan looked interesting for the client.

You can easily workout cheaper if using a credit card or overdraft, where you also have more flexibility in repayment (which for some is a disadvantage rather tend to lengthen maturity when they do not "knife in the neck" in the form of a fixed payment schedule), or a combination of both.

Your credit card takes advantage of the grace period, and then repay (usually cheaper) overdraft. Incoming payments leave the account lie for as long as possible (compulsory payments...Read more:How Do You Compare The Interest Rate Of The Loan Or Deposit?