Benefits of Personal Loans in India

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What is the typical range of interest rates for a car loan?

7% to 14% per annum (correct)

10% to 20% per annum

5% to 10% per annum

3% to 6% per annum

What is the maximum loan tenure for a car loan?

5 years

7 years (correct)

10 years

15 years

Which type of employee can get tax benefits on a car loan?

Self-employed professional or business owner (correct)

Neither salaried nor self-employed

Salaried employee

Both salaried and self-employed

What is the typical range of interest rates for a home loan?

7% to 9% per annum Signup and view all the answers

What is the typical loan-to-value (LTV) ratio for a home loan?

75% to 90% of the property value Signup and view all the answers

Which of the following is NOT a purpose for which a home loan can be taken?

Purchase of a car Signup and view all the answers

What is the primary reason why a home loan is considered special?

The wide range of lender options available to the customer Signup and view all the answers

What does savings represent according to the passage?

An individual's unspent earnings Signup and view all the answers

What is the primary purpose of savings according to the passage?

To pool up funds for the future Signup and view all the answers

Which of the following is NOT identified as a benefit of saving in the passage?

Being able to buy a new car Signup and view all the answers

What is the first step recommended in the passage for starting to save?

Start With a Budget Signup and view all the answers

What is the definition of net banking according to the passage?

A service offered by banks that allows customers to access various banking services and perform financial transactions online Signup and view all the answers

What is a key benefit of a personal loan in India?

Instant loan approval without submitting any documents Signup and view all the answers

How can personal loans help improve an individual's credit score?

By timely repayment of EMIs Signup and view all the answers

Why do lenders provide Car Loans to customers?

To fulfill the dream of owning a car for those with financial constraints Signup and view all the answers

What sets Car Loans apart from Personal Loans in terms of loan amount?

Car Loans offer higher loan amounts compared to Personal Loans Signup and view all the answers

What documents are required to apply for a Personal Loan?

Long list of KYC documents and income proof Signup and view all the answers

How do Car Loans help customers in purchasing cars?

By providing loan amounts upto 95% of the car price Signup and view all the answers

What is a common characteristic of Ponzi schemes?

Promising high returns with low risk Signup and view all the answers

How do Ponzi fraudsters typically describe their non-existent investments?

'High yield investment programme' or 'global currency arbitrage' Signup and view all the answers

What is the main purpose of a Ponzi scheme?

Paying returns to earlier investors with money from new investors Signup and view all the answers

How can investors protect themselves from falling victim to a Ponzi scheme?

Asking simple questions and being persistent if information is dodged Signup and view all the answers

Why are Ponzi schemes compared to pyramid schemes?

Both use new investors' funds to pay earlier backers Signup and view all the answers

In a basic example provided, who benefits the most in a Ponzi scheme scenario?

The early investors who receive returns funded by new investors Signup and view all the answers

What is the primary recommendation made by the Securities and Exchange Commission (SEC) regarding verifying the registration of an investment?

Verify the investment through the EDGAR database, state securities regulator, and FINRA's market data. Signup and view all the answers

What is one sign that an investor has put their money into a Ponzi scheme?

The investor is unable to obtain promised payments or cash out. Signup and view all the answers

Which of the following is NOT recommended by the text as a resource for learning how to invest and evaluate investment opportunities?

The North American Securities Administrators Association. Signup and view all the answers

What is the main reason the text suggests an investor should not invest in an investment they do not fully understand?

The investor will not be able to properly evaluate the risk and potential gain of the investment. Signup and view all the answers

What is one tactic that scammers may use to discourage investors from departing a Ponzi scheme?

Offering even higher returns to keep investors invested. Signup and view all the answers