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September 29, 2015

successful

Do you want to become a successful businessman? Are you wondering what can make you successful in business? Well, today I will be sharing with your PhD Formula to become successful in business. Don’t worry I am not going to tell you to study PhD. I will be sharing common PhD formula which you can use to become successful in business.

We have so many successful people starting from Ambani, Tata, Birla and Mittal in India. They are successful because they share common qualities of successful people. I call it as PhD formula. This formula is derived from careful research and analysis. So, here is the PhD formula for success.

PhD Formula to become Successful Businessman

P – Passion
P in PhD stands for Passion. Successful people have passion.You should have the passion for the work you are doing. Passion for excellence this is the inherent quality of successful people, I don’t know if someone can teach this quality. But I am sure that passion of excellence is one of the qualities which make businessman successful.

Passion for excellence means whatever work you do small or big you must strive for excellence.This thing is rightly explained in Hindi movie “3 Idiot” Don’t run behind success, try to achieve excellence, success will come looking for you.

H – Hunger
H in PhD stands for Hunger. Successful people are hungry. They are hungry to learn, hungry to grow, hungry to give, hungry to contribute, hungry to fulfill a dream. That hunger is most important quality, nothing can stop hungry people. So, you should be hungry to become successful. One difference that separates successful businessman from unsuccessful ones is hunger.

Hunger quality is rightly explained in Hindi movie “Guru” In this movie Gurukant Desai was hungry to fulfill his dream and he succeeded in fulfilling the same.

D – Discipline
D in PhD stands for Discipline. Successful people are highly disciplined in the important work they do. Discipline for them is a habit, a practice, a philosophy and a way of living. Self-discipline people can control emotions, impulses, desires and behavior. Self-discipline can help you to build self-confidence. It will make you more productive so that you can achieve your goal faster in an efficient manner.

Fortunately, the quality of self-discipline is something that you can learn by continuous practice, over and over, until you master it.

phd formula

Over to You

Thank you for reading PhD formula for successful people.
Hope you like the PhD formula for success.
Do you think it is worth to follow this PhD formula?
Please share and comment below!

Home Loan EMI Calculator Prepayment and Closure

Home Loan

Shitanshu Kapadia

September 25, 2015

What is Home loan amortization table? How to make own Home Loan EMI Calculator ? If you looking answer of these questions, you are at right place. Today I will be sharing useful information about Home Loan EMI Calculator, Prepayment, and Course.

Home Loan and EMI is an integral part of our life. One cannot afford to buy dream house without taking a home loan. However, Home loan is a big financial obligation. It last for several years and squeeze you. Every month it takes out more money from your pocket. You must be thinking how? To understand this in detail, you need to prepare your EMI table which is also known as amortization table or Home Loan EMI Calculator.

Home Loan

What is Home Loan EMI Calculator or Amortization Table?

Home Loan EMI Calculator or Amortization Table shows the amount of interest and principal paid on loan along with the schedule. You can get following information from Home Loan EMI Calculator.

How much principal and interest are paid in any particular transaction.
How much total principal and interest you have paid at specific month/date.
How much principal payment is balance at the specific date.
How much total amount you will be paying towards the home loan.
If you make extra prepayment how much amount will be chop off.
You can figure out how much you need to pay extra to close the loan at the early date.

So here is Simple Home Loan EMI Calculator. You can download this Home Loan EMI Calculator from given link.

Prepayment of Home Loan is Good Decision

Prepayment of Home loan and closing it at an early stage is a very good decision. You will able to save a lot of money via prepayment.

Let’s take a small example how much interest you can actually save when you prepay your home loan.

Mr.X has taken the home loan of Rs 20 lakh for loan tenure of 20 years @ 10.5 % interest rate. EMI of this loan comes out to be Rs.20,248. If Mr.X does not opt for any prepayment he will end up paying Rs 20 lakh principal and net interest of Rs.26.4 lakh.

If Mr.X is wise person like you and opts to pay 50,000 Rs/- every year towards repayment (total repayment 6 lakh), tenure of this loan will be reduced to 12 year and net interest paid will be Rs 14.8 lakh. So actually Mr. X can save hefty Rs 11.7 lakh which can help him for building good retirement corpus or may be useful for other needs.

Home loan prepayment

Formality after Closure of Home Loan

You need to complete following formalities after closure of home loan.

If you have paid prepayment penalty make sure to take receipt of the same.
Get back all original documents from the bank. Make sure all documents are in good condition. Once you get all documents make sure to store it at a safe place.
Make sure to take NOC certificate from the bank. This will serve as proof that property is now debt-free and it belongs to you entirely.
If you have taken home loan from the bank like SBI you must have done lien. Lien is right given to another by the owner of the property to secure a debt. Make sure to terminate this lien. A home loan closure is incomplete without this process.
An optional step is to get your CBIL credit score updated. This will increase your credibility.

Over to you

Do share this article with your friends who are looking for EMI Calculator or trying to get information about Home loan prepayment and closure.

Show them how this calculator helped you.

Show them how they can save hefty amount by doing home loan prepayment.

And Don’t forget to comment below, because your comments are the fuel for me to write better in future. 🙂

Tax Free Bonds 2015 – Should you Invest?

Investment

Shitanshu Kapadia

September 22, 2015

Tax Free Bonds

Tax free bonds are back. First Tax Free bonds 2015 will be launched by NTPC. NTPC tax free bond will be available at the interest rate of 7.63%. The issue subscription opens on 23rd September 2015. Apart from NTPC other companies like NHAI, IRFC, HUDCO, PFC and REC will be launching tax free bonds in 2015-16.

Tax Free Bonds

Tax free bonds are debt investment instrument. This bond are mainly issued by non –government or quasi-government institute to raise a money from the public. Tax Free bonds are secure as it is partially backed by the government. One can invest in this bond by filling up initial subscription offer. Once these bonds are listed investor can buy and sell this bond through the stock exchange.

Tax on Tax Free Bonds

Tax free bond is document security against money borrowing given to issuer (Government or PSUs). Issuer or borrower is bound to pay fixed rate of interest (coupon rate) against this bond till the maturity. Interest income earned from tax free bond is exempted from taxation u/s 10 of the Income Tax Act, 1961. That’s why these bonds are called as Tax free bonds.

Interest income earned on this tax free bond should be disclosed in income tax return as an exempted income.

Redemption of Tax Free Bonds

Tax-free bonds come with lock-in period of 10 to 20 years. However, these bonds will be listed on the exchange and you can sell them to another person. If you are selling this bond before maturity period, you will not get coupon interest rate.

Capital Gain on Tax Free Bonds

Suppose you purchased NTPF tax free bonds which opens on 23rd Sept, 2015 at the face value of 1000 Rs. After purchasing this bond you are selling fund before one year period at Rs 1100, the gain arising from this transaction will attract capital gains.

Tax Free Bond vs Fixed Deposit

Let’s try to compare tax free deposit with fixed deposit. Let’s assume that you are planning to invest in NTPC tax free bond in Sept 2015, with a coupon rate of 7.53 % for 15 years.

The post-tax return of NTPC tax free bond will be 7.53%. The effective yield for 20% tax slab will be 9.48%. If you are in 30% tax slab effective yield will be 10.65%.

Now suppose if you invest in fixed deposit for 5 years with the interest rate of 8%. The effective yield for 20% tax slab will be 6.4%. If you are in 30% tax slab effective yield will be 5.6%.

Therefore we can say that in the 20 and 30 per cent tax slab, the tax-free bonds make better sense compare to fixed deposit.

Tax Free Bond vs Other Investments

Should You Invest in Tax Free Bonds?

Tax Free bond is very good investment option providing consistent tax free return till maturity, however, longer maturity period of the tax free bond is limiting factor. Investing in such a long term investment option is advisable only if you have surplus money for investment. Tax free bond is less liquid and traded seldom in the secondary market. Before investing make sure that this investment option fits well with your financial goal.

As per me, you should not invest in tax free bonds. If you are risk adverse investor than also try to look for other investor-friendly options like PPF or Sukanya Samriddhi Scheme.

Do you still want to invest in Tax free bonds?

NRI Money Transfer Options Tips – Send Money to India

Money & Wealth

Shitanshu Kapadia

September 20, 2015

NRI Money Transfer – NRI working abroad settled in the USA, UK, and Canada has one important task at all times – sending money to India. It is sometimes observed that they struggle hard to send money to family. They are not aware of various options, the time taken by transfer, exchange rates, and fees charged. To help, them here is a complete guide exploring various options for sending money to India.

There are multiple options for NRI to send money to India. They can do a wire transfer, TT, agent-based transfer, or online transfer to send money. Availability of these options depends upon from which country you are sending money to India.

NRI Money Transfer Options

Bank Wire Transfer

A bank wire transfer is an offline method of money transfer.
This wire transfer mechanism works with the use of the SWIFT code.
For wire transfers, it is mandatory to have a bank account with the bank through which you are sending the remittance.
The time taken by the bank for wire transfers depends on the bank. If you are sending funds from a bank that has a branch in India, it will take less time and you may get a discount in fee.
If you are sending funds from a bank that does not have a branch in India, it will take 3-4 days for fund transfer.
Exchange rate offers by the bank may be fixed or variable.

How to do a Bank Wire Transfer?

You can initiate a bank wire transfer from the local bank at the overseas location. You need to give instruction at the bank to transfer the money.
You need to mention the account number, name, address, and purpose of remittance.
The sending bank sends a message via a secure system using a SWIFT Code to the receiving bank.
This message also contains settlement instructions. Once the correspondent bank receives instruction actual transfer takes place.

Under actual transfer, the correspondent bank collects the payment on behalf of the recipient. A transfer fee will be deducted from the fund and the remaining fund will be transferred to the recipient.

International Money Transfer Service

International Money Transfer is offered by various financial service providers like Western Union Money Transfer, Money Gram, etc.
This service is available in online and offline mode.
The maximum remittance amount cap is 2500$ under this service.
The maximum amount paid to the recipient in cash is Rs 50,000 remaining amount shall be paid by cheque.
Only 30 transactions can be received by a single beneficiary in a calendar year using this service.
A recipient needs to produce valid identity proof to receive money. An Identity proof document includes a Driving license, passport, Aadhaar card, PAN card, etc.

How to send money via an International Money Transfer Service?

In order to initiate a fund transfer, you need to visit Western Union / Money Gram office.
You need to fill up a form mentioning the details of the recipient to send the amount. You need to pay the principal amount and charges.
Once transaction processing starts you will get a unique transfer control number or reference number.
Thereafter, you need to inform the recipient about the money transfer and reference number.
A recipient visits the Western Union/MoneyGram office fills up the form and shows valid identity proof to receive the fund.
Money transfer using this service is very fast and reliable. The entire process takes less than 10 minutes.

Online Money Transfer Service

Online money transfer service is the easiest way of money transfer. This service is provided by online service provider like xoom.com, remit2india.com etc.
This service is also offered by banks like ICICI Bank (money2india), State Bank etc.
Using online money transfer, you can transfer funds from any foreign bank account or even a credit card to any bank account in India.
The time taken for the transfer of this money is usually four hours.
A transaction fee for online money transfers varies from $2.99 to $5.
The transaction limit is $2,500 per transaction. If you fulfill KYC norms you can remit up to $9,999.

How to send money via an online money transfer service?

You need to sign up with the online service provider to send money to India.
The next step is to provide information about the amount.
After that, you need to provide recipient information and details about how this money will be received.
Once you are done with providing the information you can initiate a money transfer.

Other methods for money transfer are international money orders, bank drafts, cashier cheques, and PayPal.

Tips to NRI for Money Transfer

Kindly compare various money transfer services before initiating the money transfer. Find out the best exchange rate, lowest transfer fees, and reliable service.
It is advisable to send large amounts in a single go rather than sending small amounts in multiple parts as you will be paying transfer fees every time you initiate a fund transfer.
Make yourself aware of the maximum transfer limit.
Be aware and calculate the total cost. The transfer fee charged by the money transfer service provider may be low, but the exchange rate could be high. Do mathematics before initiating a fund transfer.

Example – Suppose, you want to send $1000 to India.

Company A offers an exchange rate of $1 = Rs 83 with $2.99 transfer fees.

Company B offers an exchange rate of $1 = Rs 83.5 with $5 transfer fees.

If you select company A, the final amount received by the recipient will be ($1000×83 – $2.99×83) = 82751.8 Rs

If you select company B, the final amount received by the recipient will be ($1000×83.5 -$5×83.5) = 83082.5 Rs

So go for a company that offers better exchange rates.

If you urgently need to send money, it is advisable to use an online money transfer or an International money transfer service.
Make yourself aware of liabilities you may face in case funds are not remitted properly by a specified date and time.
Check about the refund policy offered by the service provider.
Confirm whether hidden charges are applicable at the time of receiving money or recipient needs to pay an additional service charge or not.

Conclusion –

Sending money to India is very easy today. There are plenty of fund transfer options available to NRI. The only task NRI needs to do is to find the best money transfer service provider suitable to his/her requirements. I hope the tips given here will help them to select the same.

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