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I’m investing 10,000 per month in PPF, but when the interest was credited, it was not as per the percentage mentioned. Can you tell me how to calculate it and secondly whom to contact for PPF queries like interest amount?

Sunil Advait

 

A public provident fund (PPF) account earns interest on an annual compounding basis; the interest is calculated monthly on the minimum balance in the account between the 5th of the month and the end of the month. So, the best case scenario is that you need to make a deposit before 5 April of every year to get the maximum benefit of compounding or before the 5th of every month, subject to your cash flows. Also, you need to be careful with the interest rates as now they are quarterly rates, and you need to use the interest rate appropriately.

Using the example cited above, you can compute your interest amount; in case if it’s different than what you are getting, you can contact your bank or post office branch to get the same checked out.

I’m a Delhi resident. After completing my diploma in 2020, I have been doing an apprenticeship. I wish to pursue BTech from IPU and for that I would require financial assistance. I will take admission in the second year of the course as I already have a diploma. I think I would need approximately 4 lakh to pay my fees over three years. I want to know from which bank should I apply for an education loan and what documents will be required. Will the gap in my education affect my application? My parents don’t have a regular source of income, thus they cannot provide a proof of regular income. Will this factor affect my application? Also, if I take a 4 lakh education loan, what will be the EMI that I would be required to pay after the completion of the course?

Name withheld on request

 

You can consider the bank where you or your parents already have an account as there may be some existing relationship with the bank, which can help you with the loan application. Typically, PSU banks will offer a lower interest rate, so you may start with them. You can also look at HDFC Credila, which specializes in education loans.

The gap in education will not affect your loan application. However, most of them will ask for collateral security. The interest rate will also vary and the EMI will be calculated accordingly.

Surya Bhatia is managing partner of Asset Managers.

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