Page 113 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes Step 7: Market News Sources

There are many sources for market news on the Internet. Here are some of the best.
1. Market News Sources
2. CNN
3. Bloomberg

4. Moneycontrol.com
5. Yahoo Finance
6. MSN Money

6.3 Various Loans and their Usage

6.3.1 Meaning of Loan

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial
assets over time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the principal,
from the lender, and is obligated to pay back or repay an equal amount of money to the lender
at a later time. Typically, the money is paid back in regular instalments, or partial repayments;
in an annuity, each instalment is the same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which provides an
incentive for the lender to engage in the loan. In a legal loan, each of these obligations and
restrictions is enforced by contract, which can also place the borrower under additional restrictions
known as loan covenants.

6.3.2 Types of Loans

Following are some of the popular loan schemes offered by Indian banks:
1. Housing Loans: Finance is provided for purchase of a new House. Loan is also given for
the purchase of land and constructions of house on the same. The rates of interest to be
charged depends on two factors firstly the amount of loan and secondly the time period
for which the loan is required. The rate of interest may be fixed or fluctuating. In case of
fixed rate of interest the interest rate remain the fixed throughout the period of loan in
spite of the fact that the current rate of interest may be different the rate at which the loan
was obtained. In case of fluctuating rate of interest the rate of interest changes according to
the current rate in the market.
How to choose your home loan lender?

Buying a home is dream for everyone but most of us are not able to achieve the dream due
to many reasons. The escalating real estate prices have made buying a property a dream
for most of us. It may happen that you have been thinking for quite sometime to buy a
property but your bank balance is not allowing you to do so. If that is the case, you can go
ahead and take a home loan that you can pay over a period of time and also own your
dream home.

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