Showing posts from July, 2020

What is Emergency Fund and How to Build It?

What is an Emergency fund? Emergency fund is a corpus of money which is been kept aside to face any unexpected event in the future. The events could be sudden decrease in income, sudden financial liability, temporary income stop due to temporary disability or job loss. Emergency fund is one of the Must Do Activity for all individuals Before starting investing prepair Emergency fund. But most of the time we forget to plan and as well as to implement it. One should give importance to the Emergency Fund as it is a first step of Financial Planning. This Emergency fund should be in very liquid form so that it is instantly accessible with in no time. What should be the size of Emergency fund? Thumb rule is that one should have at least 12 months of his monthly expenses plus going on EMIs as his/her Emergency Fund. But if the investor has a stable job, good savings and controlled expenses he can set aside 6 months of his monthly expenses plus going on EMIs . If your spouse is working and yo

Pradhan Mantri Awas Yojana (PMAY)

The Government of India launched the Pradhan Mantri Awas Yojna or PMAY in June 2015. Also known as ‘Housing for all by 2022’, this credit-linked subsidy scheme (CLSS) aims to construct more than 2 crore houses for Indians belonging to particular economic sections. Individuals availing loans to buy residential property or land or to construct homes would be eligible for interest subsidies on the said credit. However, the loan interest subsidy is only available for individuals belonging to Economically Weaker Sections (EWS), Lower Income Group (LIG) or Middle Income Group (MIG).   Economic Section Annul Income Range    Subsidy  EWS Up to 3 Lakh  6.5%  LIG 3 Lakh to 6 Lakh  6.5%  MIG - I 6 Lakh to 12 Lakh  4%  MIG - II 12 Lakh to 18 Lakh  3% Income Range for Various Economic Groups The first thing that the housing scheme’s applicants need to understand is whether they are eligible for the subsidy. Their annual family income is the key determinant for the purpose. Keep in mind that family