Moneymanagement’s Weblog

Back to School

Posted in Uncategorized by moneymanagement on July 29, 2009

Ajit Menon, an IIM-B graduate is working with an MNC. He is at the post of a regional sales head and the climb has been fast and hard.  But after being at this level for the last 2 years he feels that his career is stagnant.  Though he likes his job, he is ambitious for bigger things and wants a competitive advantage over his peers. Like Ajit, do you feel that your career graph is plateauing and you the next step up may be long way away?

The best way to give your career a booster shot is to go back to school. For the working professional, returning to academics is a great way of honing up skills and networking.

There are great choices in India but a foreign degree added to your resume will (literally) open up the world to you.

You can choose to study further in the field of your specialization or maybe explore new areas which have high growth potential.

The question at the top of the mind is how best to work out finances. If you are past your thirties you are likely to have some responsibilities like a home loan. You would also like to make sure that your family should not be deprived of any luxuries even for the period of your education.

A study loan often works out to be the most feasible way of financing your education. Some careful planning and voila! you will be ready to fly off to explore new paths.

Why take a loan?

Even if you have adequate savings, it may be wise to go in for a study loan to finance your continuing education. You saving and investments can continue their job of acting as a cushion for your family.

An education loan is widely available at banks at attractive rates. Banks infact prefer giving loans to individuals with work experience who would be able to pay off the loans quickly because of their higher start salaries.

What is the procedure to take a loan?

Most banks will provide you with an education loan for studying abroad. The amount prescribed by RBI is Rs.20 lacs for studying abroad. The rate of interest will vary from 11% to 16%.

The repayment period will typically start within 6 months of completing the education and the loan will have to be repaid within 10 years after finishing your education.

You will also be required to put in margin money of 15% of the loan amount…i.e. the bank will finance 85% of the loan.

Education Loan Comparison

There are several banks vying to give you a loan. At a glance the loan schemes seem to be similar since they are governed by RBI regulations. However the difference lies in the terms and conditions and the ease of documentation and disbursal. For instance the banks with the lowest rates may not provide you with the amount of loan you want. Or the bank with the fastest disbursal procedure may not have your institution of choice on their approved list. So you have to scout around and ask plenty of questions.

Tips for taking loans from Arun C. Vakil, Consultant and author of Gateway to America

  • Do not over borrow. Make sure you are covered for the first year and look around for financial aid in the college.
  • Look out for charges…guarantee charges, prepayment penalties, processing charges all add up to your cost.
  • Choose colleges with wider acceptance as this will make your loan procedure easier. Many lenders have a list of approved institutions.

This article has appeared in Moneycontrol.com

Is India insulated from the financial crisis?

Posted in banking, Uncategorized by moneymanagement on October 13, 2008

Are we living in an insulated shell? The finance minister is reassuring the public that our banking system is solid and we are not in a crisis.

But is India a closed economy? Are we not interconnected with the world economy? The sad part is that the popular media prints only press releases. There is very little investigative information available. Get on the Internet and see for your self that the financial world and with it all other parts of industry are crumbling. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Can we only take the benefits of globalisation and be protected against the down falls?

Go right ahead and bury your head in the sand. The wake up is going to very tough.

Financial crisis taking nations under

Posted in banking, Uncategorized by moneymanagement on October 10, 2008

 

Move over America the financial crisis in Europe aims at being bigger than anything Americans have faced. This crisis is about to take nations under with it.

It is not just the banks but also the countries that are about to declare bankruptcy

Kaupthing Bank hf, Landsbanki Islands hf and Glitnir are highly leveraged, like other now-troubled banks. The banks’ assets reached €100 billion, about 10 times the country’s gross domestic product last year, and their foreign depositors have come to far outnumber the island’s population.

Today, Iceland’s swollen banks are ruined. In the space of a few days, practically the government has seized the entire banking system. The largest bank of all, Kaupthing Bank, was seized Thursday, and trading was suspended on the stock exchange until Monday. The krona has ceased functioning as a currency outside Iceland.

Switzerland – the banking haven is on verge of a break down and the governement cannot rescue it. Here is why…

Switzerland’s gross domestic product totals 512 billion Swiss francs (€332.1 billion). UBS’s balance sheet adds up to 2 trillion Swiss francs (€1.3 trillion) — four times as much. Even Switzerland’s second biggest bank, Credit Suisse, oversees assets totalling 1.2 trillion Swiss francs (€778.4 billion). Together UBS and Credit Suisse have over 640 billion Swiss francs (€415.1 billion) in outstanding loans.

 

Britain is looking at a  bailout package for its banks with plenty of stings attached.

Next to go under seems to be Austria…Germany looks sold as of now but France is on very shaky grounds.

 

BBC has an excellent summary about what is happening in Europe

 

China and India – milk for babies

Posted in Uncategorized by moneymanagement on September 29, 2008

In India, it is a casually accepted fact that milk is adultrated. Most households, even in urban areas buy milk that is not pasturised,,,,from the local dudhwala who brings milk in cans and measures it out in front of the housewife. There are many a slips of water between the shop and home. 

The government bags of milk are are injected and milk is removed and water added. Blotting paper is also romoured to be used to thickened the milk. Our checks are so poor and so easily bribed away that they are non existance. But who really cares about the poor country India or for that matter who really cared about what China did with thier milk till it started killing babies in China. 

Well, the world did not really care about the small eyed yellow babies but the fact Chinese products are exported world over and may be on your table too!!!

http://news.bbc.co.uk/2/hi/asia-pacific/7635466.stm ran a story explaining the whole contamination procedure.

Have you eaten or drank any milk or milk based product that is made in China?

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Great innovations of the last 20 years

Posted in Uncategorized by moneymanagement on September 29, 2008

Came across this great post

http://howtosplitanatom.com/news/26-key-innovations-of-the-last-20-years/

Please read and enjoy add to the list yourself

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