EveryMatter

All public sector as well as private sector banks offer educational loans for the students aiming for higher education in foreign countries or in India, but due to global meltdown prospectus of jobs have declined, even peoples are getting pink slips and after finalisation of next central government the process of cost cutting will increase so what should be the precautions while you are taking loan. How do you know about it.

First of all it is very difficult to compare the rate of interest charged.  It is common phenomena peoples think that private banks charges more interest but they provide loan and quickly without any hassles while government / public sector banks charges less interest but to getting loan from these banks is very difficult because of formalities involved and bureaucracy. Normally securities like your house, jewellery, fixed deposits, other assets are asked against disbursement of loan. In public sector banks may be you need to pay commissions (actually bribe) to the concerned authorities through the mediators.

Secondly are you sure what are the chances of placement after completion of course. What package you will got and  what is repayment plan for loan availed.

Thirdly, does the bank offers any discount or charge interest as per availed period if you pay early or before completion of specified time period.

Frankly if you see all those things you will be not able to avail loan because it is a time consuming process and no bank will provide all this information. Actually when bank gives you loan, they shows that it is a obligation which irritates every person availing loan because he is paying interest and giving loan is a investment by bank so why they shows that it is a obligation?

Send me your views on same.

We all know about the facility of educational loans available through public/private banks in India. In last 10 years a number of peoples have availed this facility for arrangement of quality higher education for their children’s especially middle class service personnel’s by mortgaging their personal saving/assets in the hope that on completion of education when their wards will get good job and they will be able to repay the liability of educational loan. Currently due to global meltdown/financial crisis all the good companies have stopped their recruitments and withdrawn appointment  / offers given to freshers. Today news of Satyam for deferring joining dates 9000 freshers came to picture. it is leading to unemployment and frustration for  all candidates and their families. they are worried about the repayment of loan.

The most important point is that if their are no opportunities available for our young educated force what measures/policies government has framed. I think that government must give them some relaxation and private banks must be instructed that they do not use wrong methods of recovery and must give some relaxation time for repayment of loans.

If the relaxation is not provided and something goes wrong with these family/candidates then it may lead to diversion of youth into wrong / unlawful / criminal activities which will be biggest blunder for our society. We all knows very well about the danger of terrorism. Many terrorist organizations are working on their strategy to engage / recruit the trained youth for the terrorist activities so to stop and save the society Government must act fast and provide some means and ways for relaxation / repayment of loans availed by them. 

Since last six month everyone is talking about global recession which started from America and affected our country India also. Our IT  / BPO / KPO sector companies which are mostly dependent on West as they provide services to American MNC’s are under stress due to fall in demand and credit crunch in USA.

If India wants to recover from the recession and economic slowdown and wants to become a independent nation then we should initiate ourselves towards the innovation and that too in villages. Pilot project related to Manufacturing/IT/Services/Sciences/Agriculture must be started in village where 60% to 70% population of India leaves. Not only it will help to remove unemployment but also gives  more strength to our economy in long term. We should also try to create jobs for rural India by starting new projects based on R&D in villages. It is the only way to recover from Recession and save ourselves from future recessions.

In my teenage I listened that Postal Department and Railway Departments are two departments for Government of India which can turn India’s luck if these both departments runs into profit it will be huge success and can feed whole Indian economy. Lalu Prasad Yadav turned the Indian Railway in really big profits and he wins the race against all Private Corporate Houses and MNC’s in his country. The profits of Indian Railway are moer than the Reliance Industries, the face of Indian Private Sector Companies. He really changed the face of Indian Railway, the first railway minister who reduced the railway fare during his tenure.

Today In his last budget  he have made announcement for BULLET TRAIN which will be a great facelift for our country on International scenario.

He (Lalu Prasad Yadav) is really great!

Now a days we knows that whole world is going through Global Financial Crisis and actual situation of industry according to my views is different than that. Let take an example of a factory owner who is manufacturing some finish product by use of raw material. In normal days (before financial meltdown) he used to purchase 100 kg of raw material which is sufficient for 2 months but now he is buying only 50 kg or less due to fear and the next person in line to whom he is selling finish product is also working in the same manner. The only fear is that whether they will be able to pay for the cost of material obtained as every transaction runs on credit basis. As banks have stopped giving payment on loose terms and conditions fear have increased. 

Raju quits Satyam; admits to financial wrong-doings- Hindustan Times

A late Christmas present for Wikipedia: It has now enough money to fund its 2009 operations. What a nice way to start the new year! Congrats, guys!

read more | digg story

First bailout package by Indian Government is announced yesterday amounting to Rs.35000 crores. Package will reduce the prices of cars and other consumer products. Government reduced central Value Added Tax. Package is aimed to give boost to real estate, exports,  auto, textiles, other industries and highways. It should help generate jobs in the textiles sector, the largest employer among industries. Reserve Bank had already announced the cut in CRR (Cash Reserve Ratio) and Repo Rate.  Further the decision regarding the cut in petrol and diesel prices is likely to be announced soon. Industries also announced that all the tax benefit will be passe3d to consumers. Package is announced by Planning Commission deputy chairman Montek Singh Ahluwalia.

Did the announcement of package indicate that India is also under recession and affected by Global Financial Crisis. It means that in next year the India will be also under big stress like the USA.

BSE Sensex which is around 22000 (Twenty Two thousand) mark in March 2008 had gone below the level of 11000 (Eleven thousand). All the major scripts like Reliance Communications (RCOM), ONGC, TATA Steel, NTPC, SAIL, State Bank of India, Relinace Petrolium (RPL), Reliance Infrastructure, etc. have lost more than 50% of their 52 weeks high and some of them have touched their 52 weeks low or lost more than that. High Inflation Rate is other major factor which is standing behind slowdown. I hope that share market will recover after the election when new Central Indian Government will be formed. I hope by May-June 2009 Sensex will cross the 15000 mark.

Above mentioned slowdown is the  result of dependence on FII money / Foreign Investors and financial failure of US economy players like Lehman Brothers, Goldman Sachs, AIG International etc. Even many other European & banks/financial institutions of other countries are also seeking help from governments of their respective territory. Some banks and financial companies have received the help from central banks of their nation to save themselves from bankruptcy. Before the slowdown whole world is working in the style of American system which is failed now and due to same whole world is facing financial crisis.

Still I think the financial crisis has not shown its full powers and can lead to bankruptcy of some nations and failure of financial/banking/insurance companies worldwide. IMF, World Bank and other international financial organizations are worried and looking for ways to save the whole world from financial crisis which happens because of virtual creation of assets and  too much over estimation of assets or we can say a hype of too much over estimation by private sector players without any intervention, monitoring by Governments of their respective countries.

In long term the unemployment, Inflation, political & other concerned crisis are not estimated till now which have much bigger impact on society and humanization.

Lets come forward to save our world from this crisis and efforts should be made that future generation will be able to save themselves from this kind of problem. Long term financial policy on national and international levels needs to be designed keeping in mind the safety aspects and interest of investors.