Trap of Lenders known as Loans

Bankers and financial institutions are partial towards new customers then the existing ones. In fact, they are greedy and offer teaser rates just to grab hold of new customers. Teaser rates no where means that you are a privileged customer, all it means is that they are offering you same so that they can trap you once and for all.

Once you take a loan at teaser rate, they will keep on increasing your rate of interest. If you get frustrated by all this, they will not let you take easy way out. You try to switch your loan to another bank or prepay it using your post-tax savings; in both the cases you will be charged prepayment penalty. It's a vicious circle you are caught in, so beware.


That's what I conclude when bankers first refused RBI's suggestion to withdraw prepayment penalty on loans and now they are not ready to extend cheaper loan rates to existing customers.

Lesson from this, bank don't give you loans so that you can become rich. They lend you money so that they can have excellent balance sheets. Think more then twice before applying for any kind of loan.

If some one claims to love your money as much you do, beware, because it means they are planning to take it all from you.

How India fares in America's Biggest RipOffs

I recently read an article on CNN money that talk about America's Biggest Rip-Off’s. How many of those things are actually also overpriced in India, let's have a look.

Text Messages (SMS)
My phone plan has call rate at 1Paise per second and 1SMS costs Rs 1. So I’ll say YES though I know there are several plans available across the providers that have lesser rates for SMS.
Score - 1/9

Movie Theatre Popcorn
Sure YES. They cost Rs 45-95 per packet across all the multiplexes in NCR where as same amount when I prepare at home only costs me Rs 4.
Score - 2/9

Credit Reports
This concept is still not too big in India, so this will be NO.
Score - 2/9

Name-brand painkillers
Indians are not much obsessed for branded medicines. No.
Score - 2/9

Wine at restaurants
YES. I don't take alcohol in any form, except cough syrups and rum-chocolates, but I have heard this from my friends that wine, or any alcohol, is overpriced at restaurants.
Score - 3/9

College textbooks
NO Please.
Score - 3/9

Super gasoline
YES. Be it IOC's Extra Premium Petrol or any other brands special, they charge Rs 2/litre more. And IOC generally never has regular petrol so that one is forced to buy Extra Premium, my experience.
Score - 4/9

Hotel mini-bars
Not Sure. I'll count as NO. :)
Score - 4/9

Hotel in-room movies
YES.
Score - 5/9

Not bad. In India, we are at least saving money on 4 things that those guys are not. :)

Economy is in revival mode

I read this blog on one my favorite PF Blog, JD Roth. He asked about reader's view on current economy. I am here trying to answer it in this post.

According to me, economy has bottomed out and is in recovery mode. My reasons:

I see lots of crowd in shopping malls.

I am getting interview calls after updating my CV on job portals.

Few of my colleagues has switched job recently.

Lots of companies in my domain are hiring again.

Pay hikes are happening again.

These are my reasons to see that economy is in revival mode. How about you?

how can you get your kid to be a taxiwala in Mumbai?

I was born in free India. My parents were born in partition days and grand parents faced partition. In partition they lost everything. They started their life from scratch but never complained. They used to very proudly tell the stories of the pre-independence days and how they are so proud to be living in Independent India now.

From their numerous stories, what I concluded about pre-independence days is that life used to be tough pre-independence. Indians neither had any choice nor any freedom in their own country. British people use to decide what all places we can go to, what all occupations we can take, what all policies should govern our society, who all should have decision making power, and who all will rule us. It's SAD to say the least. British people treated us, Indians, as inferior to them in our own country.

My grand-parents always used to conclude their stories as "you are lucky generation. You guys neither have seen slavery days nor the partition days. Live happily in the independent country."

Is this really true any more? I don't agree.

What British people did to us few years back is being repeated now by our politicians. Our politicians are trying to do the same, "Divide and Rule". Maharashtrian politicians don't want to see Non-Maharashtrians in Mumbai. Why and from when do I need Visa and work permit to work in any part of my country? I am born in "United One INDIA". Does an Indian should plan his kid’s birth so that they can work in some part of India? I am an Indian, and please don't sub-categorize me. Remember what binds India together and what makes us so unique is "UNITY in DIVERSITY". Let's respect this and let us not get bogged down by politicians this time.

SEBI regulazies Standard warning in Advertisements by Mutual Funds

In order to improve the manner in which the said message is conveyed to the
investors it has been decided that with effect from May 01, 2010:

The standard warning in audio-visual advertisement shall be displayed as
“Mutual Fund investments are subject to market risks, read all scheme related
documents carefully”.

No addition or deletion of words shall be made in the standard warning.

Let's make Ball Tampering LEGAL

Yes I am still running super busy now-a-days but I couldn't control myself.
Shahid Afridi suggests that "Ball tampering should be made legal."

Yes, I think he has a point. Few other things that should be legalized along with that are:
1) Cheating in exams, copying from others sheet or even straight from books, all do cheat sometime.
2) Stealing as every one needs/wants few things that they can't afford.
3) Killing the other person in argument as everybody gets angry while arguing.

Sir, there is only difference between human's society and other species society, and it is that we have some rules that we all must abide so that things run smoothly for everyone, so that things are fair for everyone. Is this really not so obvious to you?

No Pakistani Players in IPL 2010 - Purely Business Call

IPL-3 started with a controversy.

None of the Pakistani players were chosen by any of the IPL teams, though later few teams confessed that they initially wanted to get some of the Pakistani players but refrained because it was a consensus decision to not bid for any Pakistani player.

Well, I personally see this as more of a business move rather then any boycott. India is suffering from terrorism from so many years. Every time a new terrorist attack occurs, something like 26/11 Mumbai attacks, some bomb blast, India will strict its rule and not issue Visas to Pakistanis.

And if any such attacks occur before IPL commences, who will compensate the teams who have these players in their teams?

Why should any team take such a risk? I will never take this risk if given a choice.

And no I don’t see this as any boycott of Pakistani talent. We don’t discriminate based on nationality. Just for the fact, Rahat Fateh Ali Khan is winning so many film awards this year for his song in Love Aaj Kal.

P.S. These are my personal thoughts on this issue.

Petrol Prices May be hiked by Rs 3

Govt is again planning to hike Petrol prices by Rs 3.
First food inflation and now increased Petrol prices, I feel sorry for all of us.

Banks has to normalize their service charges

Please read the full good news at:
http://business.rediff.com/report/2010/jan/11/rbi-bank-charges-may-be-capped.htm

PAN is mandatory for shares transfer

According to new guidelines of SEBI issued on Thursday, 7 Jan 2009, PAN number is mandatory in case of following transactions:

Transfer of shares to the heir (inheritor) in case deceased shareholder was the only owner of the shares.

Deletion of the deceased shareholder name in case shares were held jointly.