FLAME Newsletter - 13 March 2013


“The Indian banking sector remains ‘overbranched’ and the Indian consumer remains ‘underserviced’. There exists a huge latent need in the Indian banking consumer for a higher order of service and superior investment advice” — Rana Kapoor, CEO, Yes Bank, in The Economic Times


What documents NRIs need to opt for home loan to buy house in India

Every Indian staying abroad aspires to own a home back in his homeland—India. Home buying can be a tedious process especially if one is living miles away from one’s aspired house.

According to the definition of the Foreign Exchange Management Act, 1999 (FEMA), an NRI (non resident Indian) is someone who resides outside India for “employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. It also mentions that an individual will also be considered NRI if his stay in India is less than 182 days during the preceding financial year… Read more

Get a home loan without a guarantor

All you need to know about dual rate home loans

Banks always implement new strategies to attract more and more people to take loans. The dual rate loan is one of those rather new schemes that can convince some people to take loans in this high interest rate scenario. Dual rate loans are arranged in a way that a borrower needs to pay a fixed interest rate for the first few years and then pay a floating rate for the remaining period of the loan. The dual rate home loans are offered by many banks these days. Let us learn more about them… Read more

Should you opt for fixed or floating interest rate home loan?

How much home loan am I eligible for?

You have been eyeing a property for long and you have now finally scraped up some funds to make the down payment. Your credit profile is healthy and you are sure that your bank will find you eligible for a home loan. But how much will the bank finance? How much loan are you eligible for? Before you approach the bank with a loan application, let's quickly understand the various factors which can limit the maximum loan that you can borrow.

To begin with, the most basic thing that the bank wants to be assured of before they lend out their money is whether you are a default risk or you have the capability to pay back the loan money along with the appropriate interest. For this they will check if you have good credit ratings or not, have no outstanding loans or steady income at a secure job etc… Read more


“I was appointed Governor on September 5, 2008 and two weeks later the Lehman Brothers collapsed ... So there was an association with Subbarao becoming the Governor and the world economic crisis. So my term was initially for three years. So people thought when my term will be over, the global crisis will be over because there was a co-relation between Subbarao and financial crisis” - D Subbarao, RBI Govenor, to PTI

“MFI will be relevant for the next 10-15 years because our banking system is inefficient. Our banking system is not customer-focused. They (banks) are employee-focused… Salary in the banking system, as compared to the gross domestic product, is one of the highest in the world” - KC Chakrabarty, deputy governor, RBI, in Business Standard


Home equity loan

Home equity loan is a mortgage given against your property and can be used by you to meet any of your financial needs as long as you declare and give it in writing that the funds you receive will be used for legal purposes only and you can't even use this amount for speculation purposes… Read more


Black Swan

An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. Black swan events are typically random and unexpected.


Regulators sign MoU to monitor conglomerates

RBI launches survey on inflation expectations

SEBI makes certification compulsory for compliance officers

Insurers to inform reduction in yield each month: IRDA

Insurers to offer non-negative guaranteed return under VIPs

IRDA reworks investment norms for insurers

Ban on entry load of MFs affected lakhs of distributors

NSE introduces ‘T+0’ same-day settlement scheme


FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.

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