Real deal about festival home loan offers; starting marathon running

This week we report about how to review a discount home loan and what you need to take up running

With households eager to capitalise on festival offers from builders, there is a surge in demand for home loans around this time of the year. Banks and housing finance companies have come out with their offers to sweeten the deal further. The key for borrowers is to identify which offers are genuinely beneficial and which are superficial. In this week’s lead story, Himali Patel provides a guide on how to get the best deal on festival loan offers.
 
Marathon running can transform physical, mental, and emotional health, even for those starting late in life. The second article, by Namrata Kohli, emphasises the importance of training, nutrition, and proper gear, while also highlighting how running events can raise awareness and funds for important causes.

 
Home loan interest rates are at peak levels or near peak. Following the US Federal Reserve’s recent decision to cut its benchmark rate by 50 basis points, the Reserve Bank of India may also reduce the repo rate soon. If you want to lock in the current interest rates and are seeking better returns than those offered by banks, check out Paisabazaar.com’s table on company fixed deposits for an overview of the options available in the market.
 

For those still under the old tax regime, now is the ideal time to start making tax-saving investments. Equity Linked Savings Schemes (ELSS), also known as tax-saver funds, are an excellent option as they offer the potential for high returns typical of equity funds. Moreover, they have the shortest lock-in period among all tax-saving instruments. If you are looking for a fund from this category, refer to Morningstar’s review of Axis ELSS Tax Saver Fund.

 
NUMBER OF THE WEEK
 
5.49%, rise in retail inflation in September
 
The consumer price index (CPI)-based inflation increased from 3.65 per cent in August to 5.49 per cent in September, according to figures released by the National Statistical Office (NSO).
 
Fruits (7.65 per cent) and vegetables (35.99 per cent) saw the biggest price increases, which caused retail food inflation to jump from 5.66 per cent in August to 9.2 per cent in September. Price increases for protein-rich products like eggs (6.31 per cent), meat, and fish (2.66 per cent), as well as cereals (6.84 per cent) slowed down.

 
Retail core inflation (a measure that excludes food and fuel) increased marginally to 3.5 per cent in September. While fuel prices fell by 1.4 per cent, prices increased at a faster rate for goods like apparel and footwear (2.71 per cent) and services like health (4.09 per cent), education (3.79 per cent), and personal care (9 per cent).
 
If inflationary pressures persist, the Reserve Bank of India may not cut the repo rate in December. This means borrowers may not get any relief on their home and other loans. Capital gains from longer-duration debt mutual funds may also get delayed.

 
Households must have considerable exposure to equity mutual funds in their longer-term portfolios (retirement, children’s education) if they hope to beat inflation.