Examples: Payment of difference bet compound interest & simple interest in loan accounts

Following the Supreme Court’s direction, the government came up with a scheme to waive off interest on interest during the 6 month moratorium period for eligible loans. As per the scheme, the lending institutions shall credit the difference between compound interest and simple interest to his account whether the borrower has availed the moratorium fully,…

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Sensex return is 16% plus over last 41 years but half of that came from just three good years!

It is well known that stock market returns are clumped: it will rain returns in a big way followed by years of frustration. In this article, we investigate the annual and monthly returns of the Sensex from April 1979 and show the annualized return after 41 years depend on just a few good years/months. All…

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Payment of difference bet compound interest & simple interest in loan accounts: Will you benefit?

RBI has notified the scheme for grant of ex-gratia payment of the difference between compound interest and simple interest for six months to borrowers in specified loan accounts (01.3.2020 to 31.08.2020). Why was this done? Will you benefit? About the author: Anjesh Bharatiya is a 30+ taxman by profession and a Chemical Engineer by education….

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