Rate of Interest Calculation in Home Loan

Most people complain that their home loan rate of interest is not coming down with the rate cuts announced by the banks.What they fail to understand is the mathematics behind the calculation of rate of interest. Through this article, I would like to bring out the main points which affects the home loan rate of interest.The rate of interest in linked to the BPLR or the PLR of the bank.

What is BPLR?
The benchmark prime lending rate (BPLR), or the prime lending rate (PLR), is the rate at which the bank lends to prime borrowers. All retail loans are linked to the BPLR or the PLR. So, any change in it will affect the cost at which you take a loan from a bank.All the home loans are given relative to this BPLR.Whenever there is a change in the BPLR, your floating rate of interest will change.

Then why do customers complain that their interest rates are not falling?

The answer to this question is linked to the other factor which is called Discount or Spread by tha banks.Each bank offers home loan to its new customers by giving some discount relative to the existing BPLR.So, if current BPLR is say, 16% and the customer is offered a loan at the rate of 10%, the Discount/Spread offered to a customer 6%.This discount can vary from customer to customer at any point of time. This Discount is fixed for the complete Home Loan Duration.

Your rate of interest will change only if the BPLR changes.It will not change if the banks offer more Discounts to new customers. Normally, banks increase this discount portion from time to time without decreasing the BPLR.This is why, only new customers are benefitted.

So, if you have taken a loan at a time when this Discount portion is less, you will always end up as the loser. This is what happened with people in year 2004-05. They were offered loans at 6-7%. What they didint realise was that the existing BPLR at that time was either the same or very close to this rate. So, when the BPLR reached around 15% recently, their rate of ineterest also reached around this level.

Point to Learn:
Try to get a loan when the discount offered is more.I request the readers to kindly share their experiences here and also add more information so that everyone gets the full information.

The truth behind Affordable Housing

Affordable Housing is the new buzz mantra today in the reality sector. All developers are making hay in recession with the so called affordable housing.

I have been looking for a budget house for more than a year in Delhi-NCR. And not surprisingly, I could not find anything within my budget, thanks to the over hyped prices in NCR. It was almost impossible for a common man to purchase a house till these so called affordable houses were launched.

Many projects started in Noida of reputed builders like Jaypee, Amrapali, Divine Meadows, 3Cs and many others.

(I will write a detailed review of each of these projects in detail in my upcoming blogs. Here, I will cover the general points.)

Few questions immediately crossed my mind:

• Are these really a value for money?
• Is the consumer a real winner?
• Should we really go for it?

It was difficult to believe getting a 2/3 BHk house in such an interesting price. I was sure there is something fishy. I was also excited to see a 3BHk house within 30-35 lakhs and the next day I started my research and the results are as under:

1. The basic per sq ft rate has not changed much. To reduce the house cost, either we can reduce the rate per sq ft or the house area. The developers have opted for the latter. The basic sq ft rate have fallen but not to an extent to make it affordable for the common man. Check out the latest property rates in Delhi NCR.

2.It is only the house carpet/super area that has reduced not the per sq ft rate. We used to have a decent 3BHk in 1500-1800 sq ft range and a 2BHk in 1000-1300 sq ft area. But now, the developers are giving 3 BHk in 1000-1300 sq ft Area. Effectively, you are getting the area of 2 BHK in the name of a 3 BHK flat. Similarly, a 2 BHK now comes within 500-800 sq ft area.

3. The basic amenities in the new houses will be missing. The quality of material/fixtures is degraded.

4. All rooms are around 10*10 or 10*11 in size.
5. It is true that the common man has now an option to buy a 3BHk house in his range but he has to make a decision if he is comfortable living in a 10*10 or 10*11 size rooms. Some builders have even included the wardrobe space in the room space.
I personally don’t think it would be wise to go for this option as I prefer living in a house and not in a cage. I think the govt. should have forced builders to reduce the basic prices instead of the house area. A person buys a house to live comfortably and this is the basic requirement that is missing in these affordable housing.The end consumer has to decide whether to fall in this myth of affordable housing.Affordable Housing might be affordable but definitely not COMFORTABLE.

Aditya Mega City, Indirapuram

Aditya Mega City is a Residential Project in Indirapuram built by Agarwal Associates Group.

Agarwal Associates Group has handled many Residential as well as Commerical projects.
All the details can be found out at http://www.agarwalassociatesgroup.com/residential.htmlThis project has options from 2 BHK to penthouse. I will highlight the pros and cons of this project in brief:

Advantages:

• Good location.
• Good carpet to Super area Ratio. There are very few builders who provide good carpet area to super Area ratio.All the rooms are big and airy. Most importantly all rooms have big wardrobes. I had a look at the 1610 sq ft area flat, and looking at the wardrobe size, you dont need a store room separately.
• Good construction quality
• Good quality fixtures installed in the apartments.
• Aditya Mall right adjacent to the society. No need to go anywhere else for movies, shopping, household items. Big Bazaar is right here.

Disadvantages:

• Huge delay in handing over the posession. Posession was expected in Dec 2007 but all residents are still awaiting the posession. No clear dates available even today.
• All residents are furious with the builder and the same can be seen on the Orkut group of Aditya Mega City.
• Pace of work is too slow.
• Building area looks very crowded due to so many high rise towers.Lower floors can only dream of having sunlight. Open area like park looks very small compared to the number of flats in the society.
• Builder looks very ignorant of the allotees concerns.Refer the orkut group for such issues.

Current Expected Rate:
As per my research the final rate that you can get here is around 2700-2800 per sq ft and this includes all miscellaneous charges like car parking etc.

I was very much interested in buying a flat here but because of the uncertainity of the posession, I opted for a ready to move in society.

Through this blog, I just want to highlight the true facts and would request all the readers/apartment holders to put their comments/experiences so that others who are also looking for property in this society are benefitted.

Should HR use LinkedIn to shorlist candidates instead of Recruitment Agencies

Through this post I would like to highlight the growing current trend in many companies. Till now, all the companies pay huge amounts to recruitment agencies for finding suitable candidates for their respective companies. The recruitment agencies in turn provide the comapanies with the CV's of candidates through its strong reach and charge a huge sum from the company if the candidate is selected.

Why can't the company HR use LinkedIn to find candidates?
Today almost every professional has a profile on LinkedIn. The company HR can easily find suitable candidates for the required profiles by searching on LinkedIn. Infact many companies have started using LinkedIn for shortlisting candidates. I never took LinkedIn seriously but I changed my mind when I got few interview calls through LinkedIn. This trend is not yet very popular but I am sure this is going to gain popularity in coming years.

One point that can go against my view is that not everyone has a LinkedIn profile. I agree with them but at the same time I am sure, once this trend becomes popular everyone will be forced to have a LinkedIn profile. Infact this is the whole purpose of LinkedIn, to link all professionals together. Then why do we need a Third Party to link two professionals?

Why pay a huge amount when you yourself have access to thousands of profiles?
Its not far when companies will realize this and switch to use LinkedIn for recruitment. The golden period of Recruitment agencies will soon end in coming years.This is definitely going to help the companies in cost cutting measures as well. Ofcourse, for this to happen, the HR will have to take some pains.

Reader's views are very important and I request all my readers to provide their valuable comments/suggestions.

Reasons to Hate Your Boss

The most popular reasons to hate your boss are:

1. Technically incompetent. Talks only rubbish.
2. Spend all of his time looking at the stock market ups and downs.Discusses them aloud with other colleagues.
3. Always have some reason to complain.
4. Devotes his time surfing internet.
5. Will ask for status every now and then.Always have some reason or the other to disturb you.
6. Takes credit for the work done by you.
7. Force his decision to be implemented even if he is wrong.
8. Always try to monitor your PC.
9. Gives no increment and promotion and will say its good we are not laying you off.
10. Never tries to get good work for the team. Happy with monotonus work for the team.
11. Never interested in your career growth.
12. Biased towards particular gender.
13. Not a good listener. Always try to force his opinion.
14. Believes in Favouritism.
15. Will make you work day and night by giving a false deadline.

There will be many other reasons which each one of us would like to share. If you are also a part of Hate Your Boss Community, please share your reasons/views with the world.

Importance of having alternative source of income

How Can I earn something Extra?
This is the question which comes across every person every now and then.And in times of recession this question carries even more significance.Each one of us wants to have financial freedom which means we are able to lead our normal lives even if we loose our job or suffer huge loss in business.

Having an alternative source of income helps us to cope with tough times. Imagine running huge amount of loans and one fine day you loose your job or suffer loss in business. Can i lead my normal life and support my family, my expenses? The answer is a clear "No".
Many people suffer in recession just because of this.Only then they realize the importance of having financial freedom.

Having alternative income lets you build a corpus which frees you from all financial worries in tough times.

Is there any Work from Home Option available?
You will find hundreds of sites on the net claiming work from home and earning around 1000$ per month. But almost all of them are fake and they just cheat people by taking some initial amount which they call as joining fees. The moment you join, they will all disappear. I myself tried to find some genuine site which can let you earn from home but failed to find even a single site.

Blogging is one way to earn extra from home. No investment required.But the tough thing is to maintain its popularity.Once you are able to attract traffic, you can get advertisers to post ads on your site.I know poeple who earn a handsome amount by writing just blogs.

If anyone knows other work from home options, then kindly post them on this blog through your valuable comments.This blog is only for the readers so that anyone trying to get information on any topic is able to find everything on the same page.So, I request all my readers to provide their valuable comments.

All About Swine Flu

What is SWine Flu?

•Swine Influenza (swine flu) is a respiratory disease of pigs caused by Type A influenza viruses that causes regular outbreaks in pigs.
•Swine flu viruses have been reported to spread from person-to-person, but in the past, this transmission was limited and not sustained beyond three people.


Is the current swine flu virus contagious?

•Various international agencies (US Centers for Disease Control & Prevention, World Health Organization) have determined that this swine influenza A (H1N1) virus is contagious and is spreading from human to human.
•WHO has escalated the world Pandemic Phase from Phase 3 to Phase 4 (in a 6-scale Phase), indicating that a worldwide pandemic due to swine flu H1N1 is possible.


What are the signs and symptoms of swine flu in people?

•The symptoms of swine flu in people are similar to the symptoms of regular human flu and include fever, cough, sore throat, body aches, headache, chills and fatigue.
•Some people have reported diarrhea and vomiting associated with swine flu. In the past, severe illness (pneumonia and respiratory failure) and deaths have been reported with swine flu infection in people.
•Like seasonal flu, swine flu may cause a worsening of underlying chronic medical conditions.


How does swine flu spread?

•Spread of this swine influenza A (H1N1) virus is thought to be happening in the same way that seasonal flu spreads.
•Flu viruses are spread mainly from person to person through coughing or sneezing of people with influenza.
•Sometimes people may become infected by touching something with live flu viruses on it and then touching their mouth or nose.


How are human infections with swine influenza diagnosed?

•To diagnose swine influenza A infection, a respiratory specimen would generally need to be collected within the first 4 to 5 days of illness (when an infected person is most likely to be shedding virus).
•However, some persons, especially children, may shed virus for 10 days or longer.
•Identification as a swine flu influenza A virus requires sending the specimen to a hospital laboratory for testing.


How can someone with the flu infect someone else?

•Infected people may be able to infect others beginning 1 day before symptoms develop and up to 7 or more days after becoming sick.
•That means that you may be able to pass on the flu to someone else before you know you are sick, as well as while you are sick.


How long can an infected person spread swine flu to others?

•People with swine influenza virus infection should be considered potentially contagious as long as they are symptomatic and possible for up to 7 days following illness onset.
•Children, especially younger children, might potentially be contagious for longer periods.


Is there a vaccine for Pandemic Flu?

•Because the virus is new, there will be no vaccine ready to protect against pandemic flu.
•Vaccine against Swine Flu virus H1N1 needs at least 6-12 months to be produced.
•Seasonal flu vaccine or past flu immunization will not provide protection.


Are there medicines to treat swine flu?

•Yes. The US CDC recommends the use of oseltamivir (Tamiflu®) or zanamivir (Relenza®) for the treatment and/or prevention of infection with these swine influenza viruses. To be taken only if prescribed by Doctor.
•Antiviral drugs are prescription medicines (pills, liquid or an inhaler) that fight against the flu by keeping flu viruses from reproducing in your body.
•If you get sick, antiviral drugs can make your illness milder and make you feel better faster. They may also prevent serious flu complications.
•For treatment, antiviral drugs work best if started soon after getting sick (within 2 days of symptoms).


What surfaces are most likely to be sources of contamination?

•The virus can be spread when a person touches something that is contaminated with the virus and then touches his or her eyes, nose, or mouth.
•Droplets from a cough or sneeze of an infected person move through the air. The virus can then be spread when a person touches respiratory droplets from another person on a surface like a desk, doorknob, child’s toy or phone handset and then touches their own eyes, mouth or nose before washing their hands.

How long can viruses live outside the body?

•We know that some viruses and bacteria can live 2 hours or longer on surfaces like cafeteria tables, doorknobs, and desks.
•Frequent handwashing will help you reduce the chance of getting contamination from these common surfaces.

What can I do to protect myself from getting sick?

•Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
•Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
•Avoid touching your eyes, nose or mouth. The virus can spread this way.
•Try to avoid close contact with sick people.
•If you get sick with influenza, stay home from work or school and limit contact with others to keep from infecting them.


What is the best way to keep from spreading the virus through coughing or sneezing?

•If you are sick, limit your contact with other people as much as possible. Do not go to work or school if ill.
•Cover your mouth and nose with a tissue when coughing or sneezing. It may prevent those around you from getting sick. Put your used tissue in the waste basket.
•Cover your cough or sneeze if you do not have a tissue. Then, clean your hands, and do so every time you cough or sneeze.

What is the best technique for washing my hands to avoid getting the flu?

•Washing your hands often will help protect you from germs. Wash with soap and water or clean with alcohol-based hand cleaner.
•When you wash your hands -- with soap and warm water -- that you wash for 15 to 20 seconds. When soap and water are not available, alcohol-based disposable hand wipes or gel sanitizers may be used. You can find them in most supermarkets and drugstores.
•If using gel, rub your hands until the gel is dry. The gel doesn't need water to work; the alcohol in it kills the germs on your hands.

What should I do if I get sick?

•If you live in areas where swine influenza cases have been identified and become ill with influenza-like symptoms, including fever, body aches, runny nose, sore throat, nausea, or vomiting or diarrhea, you may want to contact their health care provider, particularly if you are worried about your symptoms. Your health care provider will determine whether influenza testing or treatment is needed.
•If you are sick, you should stay home and avoid contact with other people as much as possible to keep from spreading your illness to others.
•If you become ill and experience any of the following warning signs (next 2 slides), seek emergency medical care.


In children emergency warning signs that need urgent medical attention include:

•Fast breathing or trouble breathing
•Bluish skin color
•Not drinking enough fluids
•Not waking up or not interacting
•Being so irritable that the child does not want to be held
•Flu-like symptoms improve but then return with fever and worse cough
•Fever with a rash

In adults, emergency warning signs that need urgent medical attention include:

•Difficulty breathing or shortness of breath
•Pain or pressure in the chest or abdomen
•Sudden dizziness
•Confusion
•Severe or persistent vomiting


Household Cleaning, Laundry, and Waste Disposal

•Throw away tissues and other disposable items used by the sick person in the trash. Wash your hands after touching used tissues and similar waste.
•Keep surfaces (esp bedside tables, surfaces in the bathroom, children’s toys, phone handles, doorknobs) clean by wiping them down with a household disinfectant according to directions on the product label.
•Linens, eating utensils, and dishes belonging to those who are sick do not need to be cleaned separately, but importantly these items should not be shared without washing thoroughly first.
•Wash linens (such as bed sheets and towels) by using household laundry soap and tumble dry on a hot setting. Avoid “hugging” laundry prior to washing it to prevent contaminating yourself. Clean your hands with soap and water or alcohol-based hand rub right after handling dirty laundry.
•Eating utensils should be washed either in a dishwasher or by hand with water and soap.

References:
http://en.wikipedia.org/wiki/Swine_influenza
http://pediatrics.about.com/od/swineflu/a/409_symptoms.htm

Can E-Learning transform the education system?

E-Learning is the new concept emerging rapidly in today's education industry. E-learning refers to web based distance learning with no face to face interaction.

E-learning is a very good concept as it allows a person to learn from anywhere in the world and it provides complete flexibility in terms of time as well. Today, abundant information is available on almost every subject and one can gain knowledge on any subject sitting comfortably at home.
One can think of having E-Schools in near future. Imagine doing a course from foreign university sitting in India.
E-schools can help to take the best of education to even the remotest part of the country. Students in villages will have access to world class study material at affordable rates and classroom sessions can be done through videoconferencing or any other suitable means.The students will save a lot on fees and simultaneously have access and interaction with quality teachers in big cities/metros.
This concept can be extended to even coaching classes and other degree courses. The institutes will also save money as they dont need to have expensive infrastructure.
Also it will be good for the environment as this eliminates the need to paper material thereby saving lots of trees.
Any enterpreneur thinking in this direction?

Creating new IITs

Is the step of converting existing engineering colleges into IITs a step in the right direction?

This question has constantly hovered over my mind. Recently, the HRD ministry took a decision to convert many REC's and other engineering colleges into IITs. But has this step excited the aspiring student community? The answer is both yes and no.

My reasons for the same:

1. Do the new colleges have the same infrastructure and quality teachers as existing IITS? The answer is that many of them dont and they just cannot be compared to the existing IITs. The correct step would have been to first upgrade the infrastructure in these colleges and when they reach a standard comparable to IITs, the conversion to IIT should have taken place.
2. Will the student be willing to join the new IITs? I recently heard that many students have refused to join new IITs and infact opted for other RECs. This clearly shows the trend. Just having the IIT tag is not enough. It is also important to have the same quality as that of existing IITs.
3. I strongly believe that the conversion to IIT for some colleges is justified like IT-BHU, Roorkee college of Engineering and others whcih have been producing world class engineers. But we should be careful in selection of colleges to be converted to IITs as too many IITs will definitely make the IIT tag dilute and the existing image will also degrade.
4. Will the foreign universities accpet students from new IITs with same respect and recognition?I dont think this will happen till the new ones reach the standard maintained by the IITs.
5. Students will benefit in the sense that they now can have an IIT tag associated with them.For good students , this will definitely help in finding good jobs. Earlier companies would prefer an IITian over other college students if both are at same level. But this will help only if these colleges consistently produce talented pool of engineers.

If we convert every REC to an IIT, the image maintained by IIT will tarnish and people will start pointing fingers towards IITs. Even students will loose interest in joining IITs.