Role of Financial Advisor, Understand Personal and Home Loans and Coping Mechanism | Personal Finance Weekly #002

Welcome to Personal Finance Weekly!

With this newsletter, we want to make personal finance simple and easy to understand. With correct guidance, you can make choices that align with your goals. A qualified financial advisor can provide personalised advice based on your financial behaviour for peace of mind.

Each week, this newsletter will be your go-to guide, filled with insights, tips, and strategies to support you at every step of your financial journey.

This week, we’ll explore:

1. What is the Role of a Financial Advisor in Your Life?
2. Understand Personal and Home Loans.
3. Why do we use retail therapy as our coping mechanism?

1. What is the Role of a Financial Advisor in Your Life??

Creating wealth is not something you do alone. It involves advice and insights from many people around you. From your family and friends to professional financial advisors.

Why You Need a Financial Advisor

1. Major Life Changes: Whether it’s getting married, having a child, changing jobs, or retiring, these life events can significantly impact your financial plans. A qualified financial advisor can help you navigate these changes to keep your financial goals on track.

2. Complex Financial Situations: If you have various income streams, investments, or international assets, managing your finances becomes complex. Qualified financial advisors have the tools and knowledge to handle these complexities.

3. Achieving Financial Freedom: To reach a point where you live off your assets requires careful planning and discipline. Financial advisors are crucial in building and executing a plan that gets you to financial freedom.

The journey to wealth is not a path to walk alone. Financial advisors are key partners in this journey. Read more about what is the role of a financial advisor in your life?

Want to connect with our qualified financial advisor? Click here.?

2. Understand Personal and Home Loans

Loans are an important part of financial planning for making large purchases like homes and managing the high costs of weddings. Effective management of personal and home loans is crucial for maintaining financial health and achieving one's life goals.

Personal loan

Personal loans offer quick disbursements ranging from ?50,000 to ?50 lakhs, catering to immediate financial needs. These loans are flexible and based on your credit score but typically carry higher interest rates (10.49% to 26% per annum) due to their unsecured nature.

Home loan

Home loans are secured loans specifically for purchasing or constructing your future home, with loan amounts influenced by your creditworthiness and the property's value. Terms can extend up to 30 years, with options for purchase, construction, and renovation tailored to your long-term investment needs. Interest rates vary from 8.40% to 10.75% per annum.

Why Understanding Loans is Crucial

Understanding how interest rates on personal loans work is essential for making informed borrowing decisions. It's important to compare different loan offers, evaluate your financial circumstances, and seek the best possible terms. Doing so can help you reduce the cost of borrowing and enhance your overall financial health.

Key Aspects of Personal and Home Loans?

• Age: Ensuring you fall within the eligible age range.
• Income: Stable income to support loan repayments.
• Employment Stability: Consistent employment history.
• Credit Score: A higher score can lead to better loan terms.
• Debt-to-Income Ratio: Keeping a healthy balance between your debt and income.

Finding the right loan with the best terms can be a challenge. Click here to connect with our qualified financial advisor, who can guide you through your options as per your needs.

How Loans Impact Your Financial Health

• Credit Score: Timely repayments enhance your creditworthiness, while defaults and delays can significantly lower your credit score.
• Interest Costs: Choosing between flat and reducing balance interest rates can affect overall repayment amounts.

Strategies for Efficient Loan Management

• Refinancing: This can reduce your interest rates and monthly payments.?
• Budgeting and Prepayment: Helps in faster loan closure and saves on interest.
• Regular Monitoring: Ensures there are no surprises in your loan tenure.
• Step Up EMI: Gradually increase your EMI payments as your income grows, allowing you to repay the loan faster without financial strain.

By understanding and choosing the right loans, you can secure your financial future and manage your finances more effectively.

To watch the complete masterclass, click here.

3. Why do we use retail therapy as our coping mechanism?

Technology simplifies shopping. It's easy to find ourselves making purchases we might later regret. This convenience often turns into a cycle of emotional spending.?

Ritu David, founder and CEO of The Data Duck, takes us into the psychology of retail therapy. In this episode, we'll discover:

• How brands tap into our emotions to boost sales.
• Exciting technological innovations could make online shopping even more tempting.
• Practical strategies to curb impulsive buying habits

Watch the episode now

Whether you’re just starting or looking to level up your financial game, we’re here to guide you every step of the way.

Connect with our qualified financial advisors to create a personalised financial plan for yourself. Click here.

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