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Best loan rates in India

Land

  1. Purchasing a piece of land is one of the oldest investment options.
  2. The value of land may increase / decrease based on market conditions.
  3. The investment can be redeemed only by sale (part sale) of the land, which involves lot of legal issues.
land

Land – Pros and Cons

Pros

  1. Build an fixed asset for the buyer.
  2. Can generate phenomenal returns if purchased at the right time & place.
  3. May be utilized for buildings and other property development.

Cons

  1. Large investment is required.
  2. investment in land can be converted into cash only afetr completing all legal formalities.
  3. The growth rate is uncertain and there is a risk of selling at a loss when you urgently need the money.
  4. There is the risk of encroachment.
  5. No Tax benefits.

Gold

  1. Since ancient times, Gold has been an investment avenue and can be converted into any currency in any country.
  2. The value of gold over the long term increase at a decent rate.
  3. Investments in gold are generally made in pure gold bars or Jewelry.
01-gold-bar

Gold – Pros and Cons

Pros

  1. Gold is a real asset for the customer.
  2. It has value as a status symbol.

Cons

  1. There is the risk of theft.
  2. The price may rise or fall.
  3. The purity of gold can be a problem (especially in jewelry).
  4. No Tax benefits.
  5. Converting the investment to cash is difficult.

Bonds

  1. Bonds are investment options offered by both the goverment as well as companies.
  2. When you buy a gold, then the entity who is issuing a bond promises to pay back your investment with returns at a fixed period (Generally 5 – 10 years).
  3. It is as if you are giving a loan (Debt) to the issuer of the bond.
  4. NSC and KVP are examples of bonds issued by the government.
  5. Bonds are also known as DEBT instruments.
bonds

Bonds – Pros and Cons

Pros

  1. Government bonds are safe form of investment.
  2. There is little chance of loss of capital.
  3. The bonds can be bought and sold in the bonds market.

Cons

  1. They cannot be converted to cash easily.
  2. The growth rate is between 6-8 percent.
  3. Tax benefits are available only on some bonds.

NSC and KVP

  1. The National Saving Certificate and Kisan Vikas Patra are investment options offered by the government of india.
  2. They offer a fixed rate of interest which is revised by the government based on market conditions.
  3. The investment is for six years.
nscnewlive

NSC and KVP – Pros and Cons

Pros

  1. They offer a fixed rate of growth.
  2. Loans are available by pledging them .

Cons

  1. There is no facility for partial withdrawal from the Poast Office.
  2. The interest offered by them has been falling steadily (currently 8 percent).

Post office savings

  1. Post office savings accounts are offered by post offices across India.
  2. It is very similar to a bank savings account, growing at a rate of interest fixed by the government from time to time.
  3. The present rate of interest is 4.5 percent.
post-office-live

PO savings – Pros and Cons

Pros

  1. The money can be withdrawn any time.
  2. The interest is tax free.

Cons

  1. There are no tax benefits on the invested amount.
  2. The rate of growth is very low.

PPF

  1. PPF stands for Public provident fund.
  2. It is offered by the government as a saving option.
  3. The minimum investment is Rs 500 per year.
  4. The maximum investment allowed in a year in Rs 150,000.
  5. The PPF account matures in 15 years. It can be renewed in blocks of five years, thereafter
PPF_investment

PPF – Pros and Cons

Pros

  1. The amount invested in PPF is eligible for Tax deduction under Sec 80C. The interest is also tax free.

Cons

  1. There rate of interest offered in PPF has been falling steadily over the years (From 12 percent to Presently 8 percent).
  2. No partial withdrawals for first six years.