Month: February 2008
Basics of a home loan
Basics of a home loan
3 Feb, 2008, 0544 hrs IST,Kavita Sriram, TNN
Times are fast changing. Remember when your father purchased a house? In all probability, it was when he was close to retirement. It was possible to have saved enough money to buy a house only after years of working.
Supplemented with his retirement money, he could have managed to purchase a house. Today, many homeowners are young people in their thirties. Thanks to banks offering loans and increased earning capacities, buying a house is no longer a distant dream.
Borrowers can live in the property, even when they are still repaying the loan. At the end of it, you have an asset that has multiplied manifolds in value. Home loan enables you to do just that.
Banks give home loans for constructing a home or purchasing a ready-built house, flat or residential plot. They even re-finance existing loans that borrowers may have availed from other banks. The loan amount sanctioned to borrowers is based on age, salary, educational qualifications, credit history and previous employment track record.
You can club the income of your spouse, in order to increase your loan eligibility. Typically, banks only lend the amount where your monthly EMI outflow is 30 to 50 percent of your salary. Any amount greater than this would make repayments towards the loan a burden and one may default.
What is EMI?
EMI stands for equated monthly installment. It comprises interest and principal components. EMI repayments commence when you take a full disbursement of the loan amount. Pending final disbursement, borrowers only pay interest on the amount disbursed. This is called the pre-EMI interest.
When a borrower makes EMI payments to the lender, during the initial years, a large chunk of money will flow towards interest repayment. As the years roll by, the principal component increases.
If you do not own a house of your own, it is time you consider taking a home loan. Borrowers can also avail tax benefits on both the principal and interest components of the loan. This makes it even more lucrative.
Options in home loans
Home loans usually come in three flavours – floating, fixed and hybrid. In case of a floating rate loan, the interest rate fluctuates with the prevailing market rates. It is usually pegged against the bank’s prime lending rate.
This moves up or down depending on the movement of repo rates, inflation, cash reserve ratio and liquidity in the system. Exposed to a host of external factors, a floating rate of interest is simply unpredictable. But as much as 80 to 90 percent of the borrowers have opted for the floating rate.
Borrowers, who opt for the floating rate, intend to benefit from a fall in interest rates. If, on the contrary, the rates go up, they have to pay out more money in the form of EMI to the lender.
They understand that interest rate fluctuations follow a cyclic pattern and are further lured in by the lower cost of this loan. If you are taking a short-term loan, simply float. It is difficult to predict the interest rate scenario over a long term.
Pure fixed rate loans, as the name implies, remain fixed for the entire tenure of the loan. Such a product is offered by very few banks as interest rate on them is very high compared to floating rate loan. What most lenders offer is fixed rate loans – fixed for a short tenure, say five years. So the rate remains fixed for five years, after which the interest rate is reset to the value prevailing at that time.
Fixed rate is for borrowers who are anxious every time the rates climb up. Those who want predictability and want to set aside fixed money towards their loan repayment can select fixed loans. Such borrowers believe that the rates will travel northwards.
Before locking into a fixed rate, go through all the fine print to know how ‘fixed’ the product really is. If it comes with a reset clause, it means the bank can at its own discretion increase your rate, though it is called a fixed rate loan.
Between the fixed and floating rate option, investors have the hybrid loan alternative. It is a combination of fixed and floating rate loan, where a borrower can decide how much he intends to lock under fixed and how much he wants to expose to floating rates.
If you’re unsure simply lock 50 percent of the loan under fixed and remaining under floating rate. This innovative product gives more flexibility and option to the borrower.
With interest rates giving all indications of going southwards, it is time to consider investing in a house. A home loan will help you realise your dream of owning a house.
Bird flu hits badminton!
Bird flu hits badminton!
8 Feb, 2008, 0000 hrs IST, TNN
There is never a shortage of excuses for India’s sub-standard performance in international sporting events. Two decades ago, the then PM Rajiv Gandhi wondered why the country had sent a huge contingent to the 1986 Asian Games when India returned with just five gold medals, four of them courtesy P T Usha!
The excuses offered for poor performances were bizarre, like that the wrestlers were reportedly demoralised because they had to sleep on the floor while the officials accompanying them occupied their beds in the games’ village.
Now we are told that bird flu could affect India’s performance in international badminton in the Thomas Cup (for men) and Uber Cup (for women)! And this despite no Indian player coming down with anything remotely resembling bird flu over the last few weeks!
What has happened is that an acute shortage of quality shuttlecocks has forced the cancellation of the training camp being organised by the Badminton Association of India (BAI) ahead of the Thomas Cup and Uber Cup. The training camp was scheduled to commence on February 7.
With locally-manufactured shuttlecocks not being up to the mark, the Sports Authority of India (SAI) would import them from China where they are made from goose feathers. The BAI says it had asked the SAI six weeks ago to import shuttlecocks for the camp.
SAI says it had passed on the request to the Union sports ministry. Since the imported shuttlecocks are made from goose feathers, the delay in sourcing them is attributed to the Union agriculture ministry’s apprehensions of bird flu. Such fears are unwarranted since the shuttlecocks are chemically treated.
However, that hasn’t stopped the training camp from being cancelled while the BAI, SAI and sports ministry continue to play ‘shuttlecock’ with the issue! That too just six months ahead of the Beijing Olympics where badminton is one of the events!
Formula for fun driving
Formula for fun driving
So you love long drives but always dread the nagging neck aches and back pain that invariably comes along with every excursion? Don’t worry.
A lot of your problems can be sorted out by improving your posture. Here are four steps to sit comfortably that will help you sort out the ouch factor.
Excerpted from the BMW Magazine, it offers tips to stay active when you are driving and prevent whiplash or muscle knots and strains.
Given that BMW sought the help of orthopedic experts to design its comfort seat specifically to help its high-end consumers get better muscle support during driving, what better source to take guidance from on how to make sure driving isn’t a pain in the neck. Check out the four-step formula.
Seat height :
Always sit as high as possible to get the best view of the road ahead.
There should be a fist’s width between the driver’s head and the roof lining.
Sit up straight. The backrest should be almost vertical to keep the spine in its natural position and precent strain. This is particularly important over long distances.
Moreover the backrest will also provide support during emergency braking or in an impact.
The rule of thumb is: with arms outstretched, your wrists should rest on the steering wheel. And remember to move closer to the pedals: while pressing down the clutch your knee should be slightly bent.
Raise the headrest to the level of the crown of your head and if possible higher still. There should be a gap of just a few centimetres between the head and headrest.
This will protect the neck vertebrae and is most likely to prevent whiplash from occurring.
Don’t tense up and do try to vary your posture at frequent intervals. Adjust the backrest angle by one or two degrees, move the seat a couple of centimetres forward or back.
The (BMW) comfort seat also helps to extend or shorten the seat bottom while the active seat function raises and lowers the left and right side of the seat squab in turn.
This has a relaxing effect similar to a gentle massage.
Source: The Economic Times
Exxon to freeze $12 bn Venezuelan assets
TNN
NEW YORK: Exxon Mobil has won court orders freezing up to $12 billion in Venezuelan assets around the world as it fights for compensation for operations lost to President Hugo Chavez’s nationalisation drive.
The largest US company sought the asset freeze to guarantee repayment should it win arbitration over the Cerro Negro heavy oil project. The move is the boldest challenge yet by an international oil major against any of the governments around the world that have moved to increase their holds on natural resources as energy and commodity prices have soared.
“To me it sounds like a very aggressive tactic,” said Stephen Zamora, professor of international law at the University of Houston Law Centre. “I can’t really say that I’m aware this has been used in other investment disputes. They may be trying to get the government to settle.”
Exxon —which last week posted the largest ever year’s profit by a US company —said on Thursday it has received court orders in Britain, the Netherlands and the Netherlands Antilles each freezing up to $12 billion in assets of Venezuela state oil firm PDVSA. An Exxon spokeswoman said the total that could be frozen worldwide was $12 billion.
Exxon also won a court order from the US District Court for the Southern District of New York in December freezing more than $300 million belonging to PDVSA, seeking to guarantee repayment should it win the arbitration. PDVSA, one of the largest suppliers of crude oil to the US, was not immediately available for comment. The White House and the US State Department also declined to comment.
Venezuela’s sovereign bonds sold off after the court orders surfaced. Left-winger Chavez, who regularly clashes with the Bush administration, took over Exxon Mobil and ConocoPhillips stakes in multi-billion-dollar heavy oil projects in Venezuela’s oil region last June. The move was part of the left-wing leader’s drive to nationalise key industries including utilities and telecommunications companies owned by private companies.
The news comes as a tough blow to Chavez, who suffered a stinging defeat in a December referendum that would have let him run indefinitely for re-election and enshrine socialism as the OPEC nation’s economic system. PDVSA is already facing growing debt and increasing operational problems that analysts attribute to underinvestment caused by the company’s massive contributions to Chavez’s social programmes.
The South American nation has an extensive overseas refining network, including the Citgo refining and marketing branch in the US. Exxon said in court filings that recent estimates have placed PDVSA’s global asset value —including its operations in Venezuela —at over $62 billion.
PDVSA’s European refining assets, principally a 50% share in the German refining joint venture Ruhr Oel, were held through a Netherlands Company PDV Europa, according to filings PDVSA made with the US Securities and Exchange Commission in 2006. Exxon filed for arbitration in September with the International Centre for Settlement of Investment Disputes.
Exxon has not specified how much it wants for the 41.7% stake in the Cerro Negro project, but it has said its remaining book investment in the project was about $750 million at the time the assets were expropriated. The move underscores Exxon’s reputation for toughness in dealing with foes as varied as governments and fishermen, as it has been willing to wage prolonged legal battles to defend its interests around the world.
Amy Meyers Jaffe, energy policy researcher at Rice’s Baker Institute, said the case could have far-reaching implications. “These are precedents that are going to be important for what people can and cannot do in the oil industry,” she said. ConocoPhillips spokesman William Tanner said his company “continues to discuss an amicable resolution regarding the assets that were expropriated in Venezuela”. Conoco filed for arbitration over the dispute in November.
Venezuela’s benchmark global bond due 2027 lost 2.375 points in price to be bid 98.938, while total returns offered by the country’s debt slipped 1.52% according to the JP Morgan EMBI+ index.
ICICI Bank fined Rs 10 lakh for denying credit card to lawyer
ICICI Bank fined Rs 10 lakh for denying credit card to lawyer
The Delhi Consumer Commission today imposed a Rs 10-lakh fine on ICICI Bank for refusing credit card to a lawyer for a “negative profile” profession. However, the bank refuted the charge that it was not giving credit cards to advocates and said it would appeal against order before an appropriate forum. The Commission asked the bank to deposit Rs 10 lakh in the State Consumer Welfare Fund, and pay Rs 50,000 as compensation to the complainant. In a strongly-worded order, the Commission, presided over by Justice J D Kapoor, also restrained all other financial institutions from rejecting consumers’ applications on the premise that their occupations fell under “negative profiles”. Deploring ICICI for not following the guidelines laid down by the Reserve Bank regarding financial credits, the Commission noted that the lender could not be allowed to “defame and demean” any profession in general and the legal fraternity in particular.
Following the order, an ICICI Bank spokesperson said in a statement that it has refuted it was not giving credit cards to advocates and submitted a list of advocates holding ICICI Bank Credit Cards.
“The bank would prefer an appeal before an appropriate forum. The bank had filed a reply taking a preliminary objection stating that the complainant is not a consumer of the bank, as provided for in the Consumer Protection Act,” the spokesperson said.
“There is no service provided, therefore, the question of deficiency of service does not arise and the complainant does not fall within the purview of Consumer Protection Act,” the bank added.
Source :ECONOMIC TIMES
Taye Yashoda – Morning Raga Carnatic classical music Fusion
Taye Yashoda – Morning Raga Carnatic classical music Fusion
Taye Yashoda – Karanataka music Fusion from movie Morning Raga ..Feat Shabana Azmi doing justice to her role as Singer Swarnalata . sung by Sudha Raghunathan..
Lyrics :
pallavi
tAyE yashOdE undan Ayarkulattuditta mAyan
gOpAlakriSNan seyyum jAlattai kELaDI (tAyE)
The price of love
The price of love
By Shireena Al Nowais, Staff Reporter GULF NEWS Published: February 07, 2008, 00:15
Future brides and their husbands-to-be are discovering just how much it can cost to tie the knot at the Bride Show Abu Dhabi
With a few exceptions, I have to confess this year’s bride show was less shocking than most years. It’s either that or I’ve just seen it all.
I do my best to approach these events with an open mind and try very hard to mask the look of horror on my face when an exhibitor coolly tells me that the centre stage costs Dh300,000.
But there were times this week when I just couldn’t help it at the Bride Show Abu Dhabi.
One of them is a stunning stall for flower arrangements and centre pieces from Paris. Space and Flowers’ floral designs and centrepieces cost anything between Dh50,000 and Dh1 million.
And you don’t get to keep the centrepieces or long flower vases! You do, however, get to take home all the flowers which will last longer than the Dh100 invitations (per piece) at Kazma for wedding cards.
Giveaways
And just when you think it can’t possibly get any worse, you find a flock of soon-to-be brides trying to decide whether they should buy the Dh35 or the Dh50 giveaways, at Kazana and Raife.
It isn’t enough that they will feed and entertain their guests, they have to give them gifts too.
This is at least an additional Dh10,000 to the groom’s tab.
Thankfully, some brides are immune to the wedding mania and, in a show of sanity, choose to rent expensive Dh80,000 or Dh60,000 dresses for Dh19,000 or Dh5,000 from designers like Rahmanian.
According to exhibitors, those who do go all the way and buy the Dh80,000 or Dh60,000 wedding gown, can sell it back to the store and get half or a quarter of their money back.
Of the popular stalls at the bride show, where most brides were willing to cough up thousands of dirhams, were the spas, beauty treatment and make-up stalls.
At Helen Beauty Centre, a bride can get her hair and make-up done for around Dh3,000. Sharanis spa, on the other hand, has a Dh10,000 to Dh15,000 six-week intensive regime of facials and Moroccan baths for brides.
These beauty and make-up exhibitors promised to turn every bride into a sparkling beauty. And that’s one area that no bride is willing to cut back on.
Did you know?
Exhibitors include Amato, Cygnet Fashion, Ghanati Couture and La Donna.
Fashion shows, held at 5pm, 7pm, 8pm and 9pm daily, include Cygnet, Arabesque Sheilas and Abayas and creations by Rahmanian.
Finalists in the Swarovski Abaya Design Awards will have their creations showcased on the catwalk at 5pm tomorrow.
About the event
What: The Bride Show Abu Dhabi
Where: Abu Dhabi National Exhibition Centre.
When: Today and tomorrow.
Time: 3pm to 11pm.
Photo Speaks – UAE Floral tribute
It’s a Friday special and it’s all happening in Abu Dhabi. Captured, as I always say, as passing shots at some point or other. Keep smiling.
Etihad set to increase India flights
Etihad set to increase India flights Staff Report GULF NEWS Published: February 07, 2008, 00:15
Dubai: Etihad Airways yesterday said it will boost its flights to India with the addition of four new major cities – Chennai, Jaipur, Kolkata and Kozhikode – to its expanding global network.
The decision follows successful bilateral talks earlier this week between the governments of the UAE and India, a statement said yesterday. The airline is now finalising launch dates for these services.
James Hogan, Etihad Airways chief executive, said: “Etihad is always keen to build up its Indian services and we are thrilled to have been given the rights to serve four new cities.”
Etihad now operates daily flights from Abu Dhabi to Mumbai, New Delhi, Kochi and Thiruvananthapuram. The airline said it had set its sights on eight cities in India for new services.
7 easy ways to avoid a cold
7 easy ways to avoid a cold
January 31, 2008 | 17:42 IST Source: rediff.com
Cold and flu season seems to be upon us. Everywhere you look there are people sneezing, wheezing or looking downright miserable thanks to a stuffy nose, sore throat or heavy head — and there seems no way of escaping it. However, if you are determined to keep the common cold at bay, try these seven easy-to-do steps.
The hands-off approach: According to the health portal commoncold.org, the cold virus resides in the nose and is most contagious during the first three days of a cold. So, if you have a cold, try not to use your hands to shield a sneeze or cough. The nasal secretions will transfer the virus to your hands and then on to everything else you touch.
If you haven’t yet fallen prey to the cold virus, the first thing to do keep your hands clean. For most of us, at work, at home or outdoors, it’s impossible to keep your hands as clean as they could possibly be. The best thing to do is avoid touching your nose, mouth and face.
The cold virus can be transferred even from brief contact with a person suffering from a cold or a contaminated surface, so try wash your hands as often as you can or buy a hand sanitiser available at almost all medical stores.
Liquids: Mayoclinic.com recommends you ensure your liquid intake is high. Whether in the form of water, juices or soups, the fluids will help flush out the toxins in your system and keep illness at bay.
Air it out: For most city-dwellers, air conditioned offices and homes are inescapable. While this modern convenience is no doubt a blessing, it can also be a Pandora’s box of illnesses. Thanks to the recirculated air, germs tend to reside in air-ducts with no place to go. If colds and coughs seem to be afflicting colleagues or relatives constantly, get your the ducts cleaned professionally and open the windows to let in some fresh air in. Health portal webmd.com recommends getting a regular dose of fresh air particularly during winter.
Work it out: The internet abounds with studies and articles that demonstrate the benefits of regular exercise to the human immune system. Even 20 minutes of aerobics or moderate-intensity physical activity at least five days a week can make a world of difference to your body’s energy levels and immunity.
Get a vitamin boost: Studies have found that a regular intake of vitamins, particularly vitamin C, boosts the immune system. If you’re not the pill-popping type, load up the natural way with plenty of green leafy vegetables, the red and yellow variety help too.
Cut down on smoking and drinking: According to webmd.com, statistics show that heavy smokers are more prone to colds and suffer more severe bouts.
Heavy alcohol consumption dries out the body, taking away valuable fluids. This again makes you susceptible to the cold virus. So, if you can’t kick the habit completely, make sure to cut down your consumption to improve your chances of staving off cold.
Relax: Stress impacts your immune system, making you more vulnerable to infections and illnesses, says most research on the subject. While it is easier said than done, there are methods by which you can teach yourself calming techniques, the most popular of which is yoga. Practice these techniques regularly to keep your mind and body in peak condition.
ClicksandWrites 
You must be logged in to post a comment.