Interest rate – John Hesch http://johnhesch.com/ Fri, 07 Jan 2022 14:51:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://johnhesch.com/wp-content/uploads/2021/07/icon-150x150.png Interest rate – John Hesch http://johnhesch.com/ 32 32 As unemployment falls, interest rates rise more and more https://johnhesch.com/as-unemployment-falls-interest-rates-rise-more-and-more/ Fri, 07 Jan 2022 13:54:51 +0000 https://johnhesch.com/as-unemployment-falls-interest-rates-rise-more-and-more/ Federal Reserve officials have signaled they are set to hike interest rates this year as they try to curb high inflation, and new data showing the unemployment rate has lowered should keep them on track to withdraw their support for the economy. . The unemployment rate fell to 3.9% in December, based on data collected […]]]>

Federal Reserve officials have signaled they are set to hike interest rates this year as they try to curb high inflation, and new data showing the unemployment rate has lowered should keep them on track to withdraw their support for the economy. .

The unemployment rate fell to 3.9% in December, based on data collected in a period well before the worst virus wave caused by Omicron in the United States. Unemployment peaked at 14.8% in April 2020 and had hovered around 3.5% for months before the start of the pandemic. Fed officials expect unemployment to return to pre-pandemic levels by the end of the year, as their economic projections released in December showed.

The rapid return to near-normal unemployment rates has led many central bankers to determine that the United States is moving closer to what they believe to be “full employment,” even though millions of former employees don’t. have not yet re-entered the labor market.

Partly because signs abound that jobs are plentiful, but workers are hard to find: wages are rising rapidly, vacancies are at high levels and the proportion of people leaving their jobs has just beaten. a record. Employers are complaining that they are having trouble hiring, and the shortage of workers has led many companies to cut hours or cut back on services.

“Several participants considered labor market conditions to be broadly compatible with peak employment already,” according to the December Fed meeting report, released earlier this week. Others said the economy was making “rapid progress” towards this goal. Some have suggested that it might be wise to raise rates before maximum employment is reached, given skyrocketing inflation.

Fed officials fear that rising wages and limited output could help keep inflation – now near its highest level in 40 years – at a high level. The price gains have been uncomfortably fast over the past year. The combination of a healing labor market and the threat of runaway inflation has prompted central bankers to speed up their plans to withdraw political aid to the economy.

They could hike rates three times in 2021, based on their estimates. This would make loans for cars, homes and business expansions more expensive, slowing spending, hiring and growth.

“It makes sense to start as soon as possible,” said James Bullard, chairman of the Federal Reserve Bank of St. Louis, on a call with reporters Thursday, suggesting the measures could come very soon. “I think March would be a definite possibility.”


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Banks offering home loans below 7% interest rate for independent borrowers https://johnhesch.com/banks-offering-home-loans-below-7-interest-rate-for-independent-borrowers/ Wed, 05 Jan 2022 07:15:00 +0000 https://johnhesch.com/banks-offering-home-loans-below-7-interest-rate-for-independent-borrowers/ Lenders like banks, NBFCs and housing finance companies have created mortgage solutions specifically tailored to meet the needs of the self-employed. Just like with salaried mortgage borrowers, self-employed borrowers should also compare and research the best interest rate for their mortgage. Bank interest rates on mortgage loans are now linked to an external standard. Indeed, […]]]>
Lenders like banks, NBFCs and housing finance companies have created mortgage solutions specifically tailored to meet the needs of the self-employed.

Just like with salaried mortgage borrowers, self-employed borrowers should also compare and research the best interest rate for their mortgage. Bank interest rates on mortgage loans are now linked to an external standard. Indeed, with effect from October 1, 2019, the Reserve Bank of India (RBI) has mandated all scheduled commercial banks (except regional rural banks), local banks and small finance banks to tie interest rates. ‘interest on loans to individuals and MSMEs. at an external benchmark rate.

The RBI asked banks to link their interest rates on retail loans to one of the following external benchmarks, according to the circular:

  • RBI pension rate
  • Yield on 3-Month Government of India T-Bills as published by Financial Benchmarks India Pvt. Ltd. (FBIL)
  • Yield on 6-Month Government of India T-Bills as published by FBIL
  • Any other benchmark market interest rate published by the FBIL

The Reserve Bank of India repo rate has been designated as an external benchmark by the vast majority of banks. Repo Rate Tied Lending Rate refers to the lending interest rate which is tied to the repo rate (RLLR). The RLLR is made up of the RBI repo rate plus a spread or margin.

The repo rate plus the bank’s margin is equal to the RLLR. Every two months, the Central Bank assesses the repo rate.

The bank’s margin will remain the same for all home loan applicants, but banks are allowed to charge borrowers a risk premium under the RBI Circular. The risk premium imposed by the bank is determined by how dangerous your bank considers to be, and therefore varies from borrower to borrower.

Here are the interest rates for mortgage loans offered by the biggest banks for the self-employed:


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CBSL Revises Mortgage Backed Home Loan Interest Rate Guideline https://johnhesch.com/cbsl-revises-mortgage-backed-home-loan-interest-rate-guideline/ Sun, 02 Jan 2022 22:59:18 +0000 https://johnhesch.com/cbsl-revises-mortgage-backed-home-loan-interest-rate-guideline/ The Central Bank of Sri Lanka (CBSL) has issued a new guideline on maximum interest rates on mortgage-backed home loans by banks. For mortgage-backed home loans granted to employees, the maximum applicable interest rates will be the fixed average monthly prime lending rate (TPM) in effect on the date of disbursement of the loan for […]]]>

The Central Bank of Sri Lanka (CBSL) has issued a new guideline on maximum interest rates on mortgage-backed home loans by banks.

For mortgage-backed home loans granted to employees, the maximum applicable interest rates will be the fixed average monthly prime lending rate (TPM) in effect on the date of disbursement of the loan for the five years of the term of the loan.

After the first five years, the applicable interest rate will be a variable interest rate linked to the monthly AWPR plus 200 basis points for the remaining term of the loan and will be reassessed every six months.

The monthly loan payment for the first years will be calculated taking into account the AWPR in force on the date of disbursement as the interest rate for the entire term of the loan.

CBSL said the move, which came into effect on January 1, came after taking into account current and expected macroeconomic developments and prevailing interest rates for rupee-denominated loans and advances from banks.

The weighted average prime rate (AWPR) last week stood at 8.61% from 5.8% a year ago.

Previously from December 2020, interest for the first five years was fixed at the rate of 7% per annum. Interest during the period after the first five years varied according to the AWPR, with the applicable rate being the AWPR plus 1% per annum.

For the December 2020 review, the CBSL cited reasons such as the cut in policy rates at the time, significant levels of excess liquidity and the need for continued downward adjustment in lending rates to revive the economy. . The move was also expected to support the expansion of homeownership and further boost the domestic construction sector and its supply chains.

In the second quarter of 2021, the Greater Colombo Housing Approvals Index rose 52% to 61.9 points year-on-year, although the first quarter saw a higher gain of 60.6% in the first quarter.


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NSC 2022 interest rate: calculation of the national savings certificate Rs 5L to Rs 7L https://johnhesch.com/nsc-2022-interest-rate-calculation-of-the-national-savings-certificate-rs-5l-to-rs-7l/ Sat, 01 Jan 2022 02:22:44 +0000 https://johnhesch.com/nsc-2022-interest-rate-calculation-of-the-national-savings-certificate-rs-5l-to-rs-7l/ NSC 2022 interest rate, national savings certificate interest rate and tax benefits: National savings certificate (NSC) interest rate 2022-23: NSC is a popular savings vehicle with decent, guaranteed returns. Government-issued NSCs come with a 5-year blocking period. Interest is compounded annually but paid to the subscriber at maturity. Even Prime Minister Narendra Modi invested part […]]]>

NSC 2022 interest rate, national savings certificate interest rate and tax benefits:

National savings certificate (NSC) interest rate 2022-23: NSC is a popular savings vehicle with decent, guaranteed returns. Government-issued NSCs come with a 5-year blocking period. Interest is compounded annually but paid to the subscriber at maturity. Even Prime Minister Narendra Modi invested part of his income in NSCs.

You can use NSCs for small and medium savings. If planned wisely, these certificates can also be used for regular monthly income. (See calculation of NSC interest below). Experts say NSC is suitable for conservative investors who want to accumulate wealth while preserving their capital.

Where to buy NSC

You can buy national savings certificates at the post office.

Who can buy NSCs?

An individual can purchase NSC for his own account or on behalf of minors. NSCs can be held jointly by up to two joint holders on a joint basis or on a survivor basis.

Also check: the latest interest rate and the PPF calculation

NSC 2022 interest rate

The current interest rate offered by the government on the National Savings Certificate is 6.8%. The Indian government reviews the interest rates on NSCs and other savings plans on a quarterly basis. The NSC 2022 (first quarter of New Years) interest rate remained unchanged.

Calculation of NSC Interest

Based on the current interest rate, the value of an NSC worth Rs 1000 today would rise to Rs 1389.49 after five years.

If you buy NSC for Rs 1 lakh today, the value of your holdings will increase to Rs 1.38 lakh after 5 years.

Since there is no maximum limit, you can purchase NSCs for any amount you choose. If you buy NSC for Rs 5 lakh today, the value of your holdings will become Rs 6.94 lakh at maturity after five years.

Interest on NSCs is compounded annually but paid at maturity. This means that if you buy NSC for a certain amount, say Rs 10,000, every month for five years, you can earn interest of Rs 3,895 + the principal Rs 10,000 each month for the next five years. After five years, if you reinvest the capital every month, you will continue to earn Rs 3,895 / month from these certificates until you continue to hold them.

Minimum and maximum deposit limit

You can buy NSC in denominations of Rs 100, 500, 1000, 5000 and 10,000. The minimum amount required is Rs 100. There is no limit to the maximum amount you can invest in NSC.

Also check | Latest interest rate and SCSS calculation

NSC Tax Advantage

The amount invested in NSC benefits from tax advantages under Article 80C. Accrued interest is taxable but is deemed to be reinvested. Therefore, interest also becomes eligible for deduction under section 80C (subject to the limit prescribed under that section).

When exchanging the value of the certificate, no TDS is deducted. However, interest income earned is fully taxable in the hands of the investor depending on the income bracket.

NSC transfer rule

The transfer of NSCs is authorized. They can be transferred from one person to another. For the transfer of NSCs, the consent of a designated post office official is required in situations such as transfers to the heir of a deceased holder, by court order, to a close relative such as the wife, or transfer to a bank, housing company or other institutions as security.

NSC advance collection

NSCs can be redeemed early in the event of the death of the holder, by court order or confiscation by a pledgee. Only the face value is paid if the NSCs are redeemed within one year from the date of purchase of the NSCs. The simple interest rate applicable to the postal savings account is paid if the collection is made after one year but before three years from the date of purchase of the securities. Certificates can be redeemed as a present value after three years.

NSC nomination rule

NSC holders are allowed to declare a candidate. This can be done at the time of purchasing the certificates or even at a later stage. It is important to note that appointment is not allowed on certificates held in the name of a minor. The option to modify or cancel an appointment is also available.

5 key benefits of NSC

  • Use as collateral
  • Use to save tax
  • Government guaranteed returns
  • Decent interest rate
  • Low risk investment option

NSC as a guarantee

You can use national savings certificates as collateral to take out a loan from any financial institution or bank.

Who can’t buy NSC?

According to the rules, NSCs cannot be purchased by NRIs, HUFs, businesses, trusts, corporations or other institutions. In the event that an individual becomes an NRI after purchasing the certificate, they can keep it until maturity on a non-repatriation basis.

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Hry Seeks Loans Under Ncr Advice At 2.75% Interest Rate | Chandigarh News https://johnhesch.com/hry-seeks-loans-under-ncr-advice-at-2-75-interest-rate-chandigarh-news/ Thu, 30 Dec 2021 22:41:00 +0000 https://johnhesch.com/hry-seeks-loans-under-ncr-advice-at-2-75-interest-rate-chandigarh-news/ Chandigarh: The Chief Minister of Haryana, Manohar Lal Khattar, has demanded that loans be made under the NCR Planning Board at an interest rate of 2.75%, just as NABARD provides loans for rural infrastructure at 2.75%. This is to ensure rapid development in the NCR region, he said. Haryana is also asking for a hybrid […]]]>
Chandigarh: The Chief Minister of Haryana, Manohar Lal Khattar, has demanded that loans be made under the NCR Planning Board at an interest rate of 2.75%, just as NABARD provides loans for rural infrastructure at 2.75%.
This is to ensure rapid development in the NCR region, he said. Haryana is also asking for a hybrid model for the GST, in which the production share should be included with the consumption. This will boost employment opportunities in high-production states
On Thursday, the chief minister interacted with reporters after the pre-budget meeting with Union Finance Minister Nirmala Sitharaman in Delhi. The CM said the Union finance minister called on the finance ministers of all states for their suggestions during the pre-budget meeting.
The CM said he also requested a separate budgetary provision for Rakhigarhi located in Hisar. He said a large number of people were getting loans through the Mudra program under the Mukhyamantri Antyodaya Parivar Utthan Yojana. In this, an interest waiver plan should be put in place, he said. The loan limit for FPOs is currently Rs 2 crore, it should be increased so that large food processing projects can be implemented in the state, he added.
The chief minister said that a subsidy should be set for the export to encourage MSMEs to export. Along with this, containers should also be made available, so that goods can be sent easily to ports, he said. There has also been a demand to increase the amount of state interest-free capital spending to 50 years. The government of Haryana has requested 5,000 crore rupees.


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loan interest rates: some lenders offer low fixed rate auto loans, personal loans: here’s why it’s a good deal now https://johnhesch.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ Wed, 29 Dec 2021 06:31:00 +0000 https://johnhesch.com/loan-interest-rates-some-lenders-offer-low-fixed-rate-auto-loans-personal-loans-heres-why-its-a-good-deal-now/ The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable […]]]>
The total cost of a loan depends mainly on the interest rate applied to it. If the loan term is longer than one year, the change in interest rates over the life of the loan can have a significant impact on your total interest payment. This becomes critical especially when you take out a variable rate loan and the interest rate increases dramatically after a year. However, if you take out a fixed rate loan at a time like today when the interest rate is near the lowest levels seen over the past two decades, it will keep your interest outflows at a low. low and will offer you better savings than a variable rate loan.

Here’s how.

Signs of a turnaround in the rising interest rate cycle

The country’s largest public sector bank, the State Bank of India (SBI), announced on December 17, 2021 that it had raised its key rate by 10 basis points (bps), marking the beginning of the end of the regime. low interest rates. In addition to being a benchmark rate for borrowers, the base rate also serves as an indicator of the direction of the overall interest rate in the economy.

A hike in the base rate indicates that the downtrend in interest rates is finally reversing and that in the future we may see a few more interest rate hikes. Crude oil (WTI) prices after falling to $ 65 in early December have now risen nearly $ 73 on December 23, indicating a resumption in global demand. If the impact of the Omicron variant of the coronavirus on the global economy does not extend over a long period of time and remains manageable, then with a double-digit increase in the WPI (Wholesale Price Index) in India, which could have a later ripple effect on the CPI (consumer price index), the probability that the RBI will hike the rate in the near future cannot be excluded.

Auto loan and personal loan at a fixed rate

Much of the personal loans available at a fixed rate comes in the form of auto loans and personal loans. Although not all lenders offer these fixed rate loans, quite a few do. “Public sector banks usually offer personal loans with floating interest rates, while most private sector banks and NBFCs offer personal loans with fixed interest rates,” says Sahil Arora, senior manager of Paisabazaar. .com.

The story is similar when it comes to auto loans. “While most PSU banks offer auto loans at floating interest rates, the State Bank of India offers auto loans at fixed interest rates. Private sector banks and NBFCs typically offer auto loans at fixed interest rates, ”says Arora.

* Additional interest rate concession of 0.20% on the purchase of an electric vehicle (Green Car Credit)
** 0.25% interest rate concession for existing home loan borrowers and company payroll account holders. 0.05% reduction on the interest rate for women and armed forces personnel subject to a minimum ceiling of RLLR.
Fixed rate vs variable rate taken from respective bank websites
Rates and charges as of December 16, 2021, Source: Paisabazaar.Com


How Fixed Rate Loans Can Save Interest

Over the long term of 5-7 years, which is usually the case with personal loans and auto loans, if the interest rate starts to rise, a fixed rate loan will help you save an amount of. important interest.

If you compare a car loan of Rs 10 lakh at a fixed interest rate of 7.5% and a floating interest rate with a starting rate of 7.5% but with a 0.5% increase in interest, within 5 years your interest will only be Rs. 2.02 lakh in the fixed rate option while it will be Rs 2.20 lakh in the variable rate option. If the interest rate hike is more than 0.5% in the first few years, the interest expense could be much higher.

The decision to opt for a fixed rate loan will be more advantageous when you are selective in the choice of the lender and the interest rate. “As fixed rate loans carry a higher interest rate risk for lenders, they usually charge higher interest rates on fixed rate loans than on variable rate loans to cover the higher risk,” explains Arora.

However, when you compare the interest rates between lenders, you can easily find many lenders offering fixed rate loan at competitive rates. For example, Canara Bank’s lowest interest rate on a variable rate auto loan is 7.30% while you can get SBI’s fixed rate loan at 7.25%. Likewise, Federal Bank’s minimum floating rate on its auto loan is 8.5% while you can get fixed rate loan from HDFC Bank at 7.95%.

Likewise, you can get a fixed rate personal loan from SBI at 9.6% if you have a salary package account with the bank. You will have to pay a minimum interest rate of 10.5% if you opt for a variable rate personal loan from Bank of Baroda according to its website. So if you do your research, you can easily find a lower fixed rate auto loan and personal loan option that is right for you.

Use a personal loan instead of a higher rate used car loan

If you are considering taking out a used car loan, you should consider all of your options critically. “Lenders charge higher interest rates on used cars because the credit risk associated with used car loans is higher than with new cars. Interest rates for used car loans typically range from 8.75% per year to 16% per year depending on the condition, age and segment of the car, ”says Arora.

Instead of opting for a user car loan, we can think of using a personal loan to finance the purchase of the vehicle. “Some banks and NBFCs actually charge lower interest rates on their personal loans than used car loans. Therefore, those who are considering purchasing used cars through loans may also consider take advantage of a personal loan, ”says Arora.

In addition, a personal loan can allow you to obtain a higher amount of financing than a used car loan. “Since lenders typically finance up to 70% of the value of a used car through a car loan, using a personal loan to finance a used car can allow them to benefit from a larger loan amount for a longer tenure, ”said Arora.


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PPF Interest Rate 2022: Public Contingency Fund Calculation – Want Rs 1 crore? Check the rules https://johnhesch.com/ppf-interest-rate-2022-public-contingency-fund-calculation-want-rs-1-crore-check-the-rules/ Fri, 24 Dec 2021 10:16:27 +0000 https://johnhesch.com/ppf-interest-rate-2022-public-contingency-fund-calculation-want-rs-1-crore-check-the-rules/ PPF Interest Rate 2022, How to Calculate Interest on PPF Balance: Not only generally higher than FD yields, the PPF scheme comes with several advantages for the common man. Public provident fund – PPF interest rate 2022-23; Calculation and last rules: The Public Provident Fund is a long-term investment option backed by a sovereign guarantee. […]]]>

PPF Interest Rate 2022, How to Calculate Interest on PPF Balance: Not only generally higher than FD yields, the PPF scheme comes with several advantages for the common man.

Public provident fund – PPF interest rate 2022-23; Calculation and last rules: The Public Provident Fund is a long-term investment option backed by a sovereign guarantee. Not only generally higher than FD yields, the PPF program comes with several advantages for the common man.

Anyone can open a PPF account with as little as Rs 500 and invest up to Rs 1.5 in the PPF account during a fiscal year. Whether you are an employee, manager of a small or large company, self-employed, self-employed, self-employed or in any type of work, you should consider the PPF as an instrument that guarantees the security of your hard-earned investment and gives back an annual return. healthy compound.

You can use the PPF account to accumulate wealth for the long term. People who are not covered by the Employee Provident Fund (EPF) can also use the PPF as a long-term retirement planning option.

Read on to learn about several great benefits and features of PPF.

Can you get Rs 1 crore with PPF?

For long-term investors, the PPF is a safe option. Not only the tax benefits, you can actually create a corpus of Rs 1 crore or more via PPF.

The current PPF interest rate offered by the government on the PPF is 7.1% compounded annually. Assuming this rate stays the same, a deposit of Rs 1.5 lakh per year would earn you close to Rs 40 lakh in 15 years. Investors have the option to extend the PPF account in blocks for 5 years after the completion of the mandatory 15-year maturity period.

Thus, investing Rs 1.5 lakh / year in the PPF account for 20 years would result in a corpus of approximately Rs 66 lakh. If you keep investing Rs 1.5 lakh / year for another five years, your PPF balance will reach approx. Rs 1 crore in 25 years. You can achieve this faster if the government reviews and increases the interest rate during the investment period. (Learn more about this PPF calculation here)

PPF 2022 interest rate

The PPF interest rate is revised quarterly by the government. The current interest rate is 7.1% and should be revised by the end of December 2021 (Check for an update on the PPF 2022 interest rate soon).

In the past, PPF deposits have earned higher interest, even up to 12%. (Read the history of PPF interest rates since 1968)

PPF deadline, closing / withdrawal rules

The PPF account expires after the expiration of a period of 15 years from the end of the financial year during which the account was opened. PPF account holders can extend their account in blocks of 5 years each after maturity.

The premature closure of the PPF account before 15 years is generally not advised. However, you can close the PPF account prematurely after the completion of 5 years for specific purposes like medical treatment, children’s higher education, etc.

Also check: the latest NSC interest rate and how it is calculated

From the 7th year, only one withdrawal is allowed per year. However, the maximum withdrawal can be 50% of the balance amount at the end of the fourth year or the previous year, whichever is less.

Calculation of the PPF 2022 interest rate: How to get the most out of the PPF?

Interest on PPF deposits is calculated monthly but credited to the account at year end. Interest is calculated between the fifth and the last day of a month. So, to maximize returns, you need to invest in a PPF account no later than the 5th day of a month. This will earn you interest on the current month’s balance, in addition to the previous month’s balance.

If you invest a lump sum in a PPF account over the course of a year, the ideal option for maximum return would be to make the deposit between April 1 and April 5 of a fiscal year.

What is special about PPF?

The PPF enjoys judicial immunity. The level of guarantee of your money in a PPF account is such that it cannot be attached to paying off debts through a court order.

Where to invest in a public provident fund or open a PPF account

An account of the Public Provident Fund can be opened at the Post Office and also with some banks.

Only one PPF account can be opened by a person in their name. You can open separate PPF accounts for each member of your family. You can also open separate PPF accounts for each of your dependent children. However, for tax benefits, the combined contribution from you in these accounts should not exceed Rs 1.5 lakh.

A parent is allowed to open a separate minor PPF account in their child’s name in addition to the account in their own name.

Eligibility for opening a PPF account

An individual is authorized to open an account with the Public Provident Fund at any age. You can also open a PPF account in the name of your minor child (ren). HUFs are not allowed to open a PPF account. NRIs can have the PPF account provided the account was opened while they were Permanent Resident Indians.

What if you have two PPF accounts?

A natural person is not authorized to open more than one PPF account in his name. If a person has opened two PPF accounts, one of them must be closed. If the total of deposits on the two accounts is within the prescribed maximum limit, they can be merged into one account chosen by the investor. If the amount exceeds the prescribed deposit limit of Rs 1.5 lakh per year, the excess amount will be refunded to the account holder without any interest.

If there is an outstanding loan in any of the PPF accounts to be merged, the depositor must repay the full amount plus interest must be repaid before the accounts are merged.

According to the rules, if a depositor has opened more than one PPF account, the second and subsequent accounts are treated as irregular.

Tax advantage on the PPF deposit

PPF deposits enjoy tax advantages under section 80C of the Income Tax Act. The maximum deduction you can claim under this section is Rs 1.5 lakh per year. It is important to note that there are several other instruments which also enjoy benefits under section 80C. For a tax benefit, the combined deposits under all of these instruments should not exceed Rs 1.50 in a fiscal year. (Check out the top 10 investment options under section 80C)

PPF benefits from “exempt-exempt-exempt (EEA)” tax status. Investors do not have to pay tax on the amount deposited into the PPF account (subject to an annual limit), the interest received and the amount withdrawn at maturity.

Key features of the PPF

  • Sovereign guarantee
  • Legal immunity
  • No tax on investment, interest and returns
  • Loan facility
  • Invest as little as Rs 500 / year

How much money you can deposit in PPF

The maximum investment limit in a PPF account per year is Rs 1.5 lakh and the minimum deposit amount is Rs 500. You can deposit money into your PPF account 12 times per year.

According to Sudhakar Sethuraman, partner of Deloitte India, post offices accept cash up to Rs 50,000 per day. He says that a cash deposit of over Rs 1.5 lakh into the PPF account is currently not accepted by the PPF system. However, transferring money online to a PPF account is allowed. Some cases have been reported where banks discourage PPF account holders from depositing money into PPF account even though the amount may go up to Rs 50,000.

PPF loan facility

You can take out a loan against deposits in the PPF account.

On loan against PPF, the interest rate is 1%. However, the PPF account does not earn any interest until the loan is repaid. Experts suggest that you should go for a loan against PPF if a small amount is required for a short period of time.

The amount of the loan against PPF surety cannot be greater than 25% of the amount available in the account at the end of the second year immediately preceding the year in which the loan is applied.

The loan against PPF must be repaid within three years of the sanction.

You can use the 4th to 6th year credit facility on the amount credited to the account between the third year and the fifth year.

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Government official: Freezing personal mortgage interest rates could save households HUF 30 billion https://johnhesch.com/government-official-freezing-personal-mortgage-interest-rates-could-save-households-huf-30-billion/ Fri, 24 Dec 2021 06:55:46 +0000 https://johnhesch.com/government-official-freezing-personal-mortgage-interest-rates-could-save-households-huf-30-billion/ The decision on the six-month freeze from January was announced by the prime minister on Wednesday. Personal mortgage interest rates will be frozen at their end-October levels, which means February’s monthly payment will already be lower than previous ones, Viktor Orbán said. Domotor said about half a million Hungarians have variable rate mortgages. Without the […]]]>

The decision on the six-month freeze from January was announced by the prime minister on Wednesday. Personal mortgage interest rates will be frozen at their end-October levels, which means February’s monthly payment will already be lower than previous ones, Viktor Orbán said.

Domotor said about half a million Hungarians have variable rate mortgages. Without the measure, the accelerated rate hikes from October could have added 23%, or 11,000 forints on average, to borrowers’ monthly payments, he said in a video message posted on the government’s Facebook site.

The Hungarian Banking Association said on Thursday it did not support a temporary government freeze on mortgage interest rates.

“The Banking Association cannot support the temporary freeze of interest rates, to the detriment of the Hungarian banking sector, for customers who have decided to take out riskier variable rate loans despite several warnings to the contrary,” said the professional body.

Prime Minister Viktor Orban announced on Wednesday that the government had decided to freeze interest rates on mortgages at end-October levels until the end of June 2022.

The association said it “learned with surprise” of the measure on Wednesday.

He noted that Hungarian lenders, in cooperation with the National Bank of Hungary (NBH), have proposed in recent years to convert customers’ variable-rate loans into fixed-rate loans, drawing attention to the benefits of low-cost loans. fixed rate in public forums and among their clients.

The association underlined the “contribution of the banking sector to the defense against the pandemic” in the form of the payment of a sector tax and the participation in a repayment moratorium which extended over a period longer than any other in Europe.


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Kenedix Retail REIT: Notice Regarding Change in Base Interest Rate for Loan Agreement and Interest Rate Swap Agreement Due to LIBOR Shutdown Announcement https://johnhesch.com/kenedix-retail-reit-notice-regarding-change-in-base-interest-rate-for-loan-agreement-and-interest-rate-swap-agreement-due-to-libor-shutdown-announcement/ Thu, 23 Dec 2021 06:57:02 +0000 https://johnhesch.com/kenedix-retail-reit-notice-regarding-change-in-base-interest-rate-for-loan-agreement-and-interest-rate-swap-agreement-due-to-libor-shutdown-announcement/ Translation from the Japanese original 23 December 2021 To all parties involved REIT Issuer: Kenedix Retail REIT Corporation Representative: Moyuru Watanabe, Executive Director (Securities code: 3453) Asset manager: Kenedix Real Estate Fund Management, Inc. Representative: Masahiko Tajima, President and CEO Contact:Koichiro Nobata, Head of Strategic Planning, Retail REIT Department PHONE :+ 81-3-5157-6013 Notice regarding the […]]]>

Translation from the Japanese original

23 December 2021

To all parties involved

REIT Issuer:

Kenedix Retail REIT Corporation

Representative: Moyuru Watanabe, Executive Director

(Securities code: 3453)

Asset manager:

Kenedix Real Estate Fund Management, Inc.

Representative: Masahiko Tajima, President and CEO

Contact:Koichiro Nobata, Head of Strategic Planning,

Retail REIT Department

PHONE :+ 81-3-5157-6013

Notice regarding the change in the base interest rate for the loan agreement and

Interest Rate Swap Agreement Due to LIBOR Cessation Announcement

Kenedix Retail REIT Corporation (“KRR”) today announced its decision to modify the base interest rate on loan agreements (borrowings) and interest rate swaps (the “Modification”), as set out herein. below due to the end of the publication of the London Interbank Offered Rate (LIBOR) at the end of December 2021.

1. Details of the change

  1. Loan contract (loans)

Quantity

Interest rate

Series

Lender

(millions

Above: before the change

yen)

Lower: after the change

Basic rate

(ICE Benchmark Administration Limited (“IBA”) JPY LIBOR 6 months)

Japanese life

+ 0.70000%

24-B

Assurance

700

Basic rate

Society

(Overnight risk-free benchmark rate compounded in arrears

(TONA / Observation lag) (Note 1) + Adjusted reference rate (Note 2))

+ 0.70000%

(2) Interest rate swap contract

Series

24-B

Counterparty

Nomura Securities Co., Ltd.

Notional amount (million yen)

700

Fixed interest rate for

0.2130%

Payment

Interest

Floating interest rate for

Base rate (IBA JPY LIBOR 6 months)

rates

received

Above: before the change

TONA / Observation lag + Adjusted reference rate (Note 3)

Lower: after the change

Start date

September 28, 2018

Termination date

March 31, 2025

(Note 1) The benchmark risk-free overnight compounded arrears rate (TONA / Observation Shift) is derived from an unsecured overnight call rate for the Japanese yen (TONA) published by the Bank of Japan or the successors of the administration. The rate is a daily TONA compounded during the observation period (while applying single rates of TONA from the preceding working days to the holidays in the period), which is divided by the number of days in the period, multiplied by 360 and rounded to the fifth decimal place. The above working days refer to the days when the Tokyo Unsecured Silver Market is open. The observation period above means that a period begins 10 business days before the first date of an applicable interest period and ends one day before 10 business days before the last date of the interest period.

1

Translation from the Japanese original

(Note 2) The adjusted reference rate is a spread adjustment, 0.05809% per annum, applied in order to minimize the transfer of value between the parties concerned when the base interest rates change. The figure is the corresponding spread adjustment for each period published by Bloomberg Index Services Limited on March 5, 2021, and is recommended by the Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks, whose secretariat is the Bank of Japan.

(Note 3) The Series 24-B interest rate has been essentially fixed at 0.91300% by the interest rate swap agreement, and the essentially fixed interest rate will not be changed after the change.

2. Other questions

The risks associated with the early repayment of borrowed funds remain unchanged from those listed in KRR’s securities report submitted on December 23, 2021.

KRR website address: https://www.krr-reit.com/en/

This notice is the English translation of the Japanese announcement of December 23, 2021. However, no assurance or warranty is given as to the completeness or accuracy of this English translation.

2


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China cuts policy rate for first time in 20 months https://johnhesch.com/china-cuts-policy-rate-for-first-time-in-20-months/ Tue, 21 Dec 2021 02:14:15 +0000 https://johnhesch.com/china-cuts-policy-rate-for-first-time-in-20-months/ (CNN) – China’s central bank has cut its main interest rate for the first time in 20 months, as authorities step up efforts to stimulate an economy that has been hit by pandemic-related restrictions, a housing crisis and a crackdown unprecedented against private companies. The People’s Bank of China on Monday lowered its one-year prime […]]]>

(CNN) – China’s central bank has cut its main interest rate for the first time in 20 months, as authorities step up efforts to stimulate an economy that has been hit by pandemic-related restrictions, a housing crisis and a crackdown unprecedented against private companies.

The People’s Bank of China on Monday lowered its one-year prime lending rate (LPR) by 5 basis points to 3.8%. The LPR is the rate at which commercial banks lend to their best customers and it serves as the benchmark rate for other loans.

Although Monday’s rate cut is small, it is the first such measure since April 2020, when China cut rates to boost its economy hit by Covid, which had just contracted for the first time. in over 40 years.

“This drop reinforces our view that authorities are increasingly open to lower interest rates amid economic headwinds,” Zhaopeng Xing, senior Chinese strategist at ANZ, said Monday in a research note. .

A lower borrowing rate can help lower borrowing costs for households and businesses and, in turn, encourage consumer spending and investment.

Unlike the West, Beijing had refrained from flooding the economy with stimulus packages during the pandemic, instead focusing on offering targeted support to small businesses.

China was the only major economy to record growth in 2020, but this year the country’s expansion was affected by several factors, forcing it to consider ways to provide support even as other major central banks did. are withdrawing their stimulus measures and raising their interest rates to fight inflation.

An energy shortage has hampered industrial production for much of this year, as the country struggled to balance its electricity needs with its efforts to tackle the climate crisis.

Government data last week showed house prices fell for a third consecutive month in November, a sign that the ongoing housing crisis continues to worsen.

Retail sales have also struggled, suggesting that coronavirus outbreaks and the government’s “zero-Covid” approach of locking down areas where infections break out are wreaking havoc on the economy.

Key Chinese leaders have already expressed concerns about the growth prospects. At a key economic meeting earlier this month, they said “securing stability” would be a top priority for the coming year. This is a huge fulcrum from last year’s meeting, when “stemming the disorderly expansion of capital” prevailed throughout the day.

To counter rising economic risks, policymakers pledged at this year’s meeting to adopt “upfront” policies, including keeping monetary policy “flexible”.

Last week, the central bank lowered the reserve requirement ratio of most banks by half a percentage point. The move, which cuts the amount of money banks must keep in reserve, is expected to free some 1.2 trillion yuan ($ 188 billion) for loans to businesses and households, according to the PBOC.

Monday’s LPR cut is expected to reduce “the interest burden” by about 80 billion yuan ($ 12.6 billion) per year, starting next year, for businesses and households, Xing estimated. of the ANZ.

“The PBOC wants to offer more easing as it is increasingly concerned about economic dynamics,” Societe Generale analysts said in a research note on Monday.

“There should no longer be any doubt by now that a serious (albeit still small) easing cycle is unfolding.”

The world’s second-largest economy could grow at its slowest pace since 1990 next year, economists say.

This story first appeared on CNN.com, “China lowers key interest rate for first time in 20 months.”


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