Replacement of a Fixed Asset and Creation of Sinking Fund
All industries make long-term capital investments for growth. These capital assets may be plant and machinery, or intangible assets like IT, or infrastructure assets. Irrespective of their nature, every asset has a lifecycle that demands careful attention whether to repair or replace certain assets. To decide between repairing and replacing an asset, the management of…
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Why Reverse Mortgage Loan enabled Annuity/ RMLeA is a better option?
In our previous article we have explained about the Reverse Mortgage Loan (RML) Scheme, which offers regular income to senior citizen against pledging of their home with the lender. However, the RML product has not met with much success, because the scheme is not as supportive as expected to old age people. This is for…
Read article Reverse mortgage loan scheme, windfall to senior citizen
Reverse mortgage loan scheme turn out to be windfall to senior citizen who needs financial help. The scheme also known as ‘RML scheme’ is created from Maintenance of Parents and Senior Citizen Bill 2007, by way of social security measure initiated by the Government of India. The RML scheme is also popular in other developed…
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Understanding the Sinking Fund or Depreciation Fund
Introduction A sinking fund, also referred to as a depreciation fund, is a financial strategy used by companies to systematically set aside funds over a period of time. These funds are earmarked for specific long-term purposes such as replacing fixed assets at the end of their useful lives or for the gradual repayment of long-term…
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What are annuities and how to calculate annuities?
Annuity is a fixed sum of money paid to the investor or insurer to a series of annual sums for specific length of time or the rest of their life. In the case of reverse mortgage loan provided to senior citizen against security of their home is another example where loan amount is used to…
Key Considerations When Selecting a Home Loan Agent
IntroductionHome loan agents and brokers play a pivotal role in facilitating the loan acquisition process. Their industry expertise, access to multiple lending institutions, efficient handling of documentation and personalized service make them valuable partners for prospective homeowners. A well-chosen agent can help borrowers navigate the complex world of home financing with greater ease and confidence.…
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