Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Get all your personal finance queries answered by The Personal Finance Advisor

Author: Administrator Account/Friday, February 24, 2017/Categories: Real Estate

Get all your personal finance queries answered by The Personal Finance Advisor

Dear sir

Recently I got a call from a telemarketer offering me a credit card with various benefits such as free domestic base fare air ticket, up to 15% off at the Marriott Hotels, flat 35% off on movie tickets, 10% cash back on all card spends (except fuel) and 5% cash back on fuel at all petrol pumps of BPCL, IOC, HPCL or Reliance. Sir please explain to me are these freebies for real or it is just a clever sales pitch to induce me to go for the card?

- Himadri Kilaru, Warangal

Dear Himadri,

These are true usually. Card companies have tie up with merchandise traders, hotels, petrol pumps etc. where a discount or cash back is offered to consumers if they have those cards.

You should see what kind of discount you are getting. These are too negligible discount to really go for a credit card and pay heavy interest. Moreover, read the fine prints. These offers may be on a certain value of spend. For example, it may say that 5% cash back is applicable only when you spend more than Rs 1000. Moreover, base rate in airlines are not much anyways.

What you should understand is that these discounts may not be very attractive and may come up with much administrative hassle that you would lose the interest after sometime.


Last month I was starved of cash so I went to a bank for personal loan. After usual queries on my job details, salary etc, the bank was willing to offer me personal loan of Rs 5 lakh at 13.50% interest rate. However, when I checked with another bank, it was offering me 13% interest, 0.5% less than the earlier bank. Sir why it is that different banks charge different interest rate on personal loan for the same person?

- Lalit Narayan Sinha, Gaya

Dear Lalit,

Banks have become very autonomous since RBI freed them on deciding interest rates on deposit or loan. There is no uniform interest rate on banks.

Hence banks have devised their own criteria to judge the credit worthiness and interest rate for borrowers. However, looking at only interest rate will not be a wise decision. Ask the banks their processing charges, one time fee, associated insurance (is it mandatory) etc. All these items add to your cost of borrowing loan. These costs can be big enough to bridge the gap between the interest rate of two banks.

Hence look at the total cost of borrowing money and not just the interest rate.

Dear Personal Finance Advisor,

I fall in the 20% tax bracket and my financial planner has been advising me to invest in ELSS as he says it is a good tax-saving investment and is one of the best ways to grow money along with saving tax. But I don’t know how to choose best ELSS mutual funds to invest? Please help me in this regard.

- Lovedelet D’Souza, Mangalore

Dear Lovedelet,

First thing you must do is to check if your deduction has already reached the figure of 1.5 lakhs under 80C. If not, you can think of investing in ELSS.

ELSS are close equity mutual funds that invest in a group of companies. The closed nature of this fund doesn’t allow you to sell it before 3 years of purchase. Hence when you invest, please be ready to wait for 3 years before you redeem the fund and get your money back (with returns depending on the market). Returns depend on the market and hence you should understand this risk.

The advanta

Print Rate this article:
No rating

Number of views (344)/Comments (0)

Administrator Account

Administrator Account

Other posts by Administrator Account
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free