Why Government wants to decrease Repo rate at the time of Economical crises (crisis) in the market?

Financial crisesGovernment can take control on the market as and when it wants. If they find more money in the market, they will issue some bonds to get back that money and keep market as per the demand of the product and when it finds less money in the market, govt. decreases Repo rate against the loans that The Central Bank provides to banks and banks can lend money to individual/companies on a lesser interest rate.

Repo rate means the Government charges interest rates on the money lending to the banks in the country.

When there are crises (crisis) of equity in the market, banks do not have enough capital/equity with them to lend people. In that case bank won’t be able to provide loans to individuals or organizations, as a result people will suffer with lack of capital help and organizations may not be in a position to continue with their business. As a result citizens may lose their jobs even, companies may drop employees in order to reduce the cost of the company. Until and unless banks will be in a position to lend money to the companies or individuals, citizens will not progress in the society, they can meet their wants and it may lead to more unemployment in the country. In such cases, banks have only two options to make capital with them, one is to increase interest rates on deposits to attract the citizens or to request The Central Bank to lend money for the continuity of the business. These are the only ways to make money with them and this is going to be prime motto of the government to help the banks and in turn helping the individuals and organizations. In such attempts, if banks get enough capital with them in the market, the govt. may decrease the repo rate, meaning decrease the interest rate that The Central Bank charges to banks on lending money. In this process banks will definitely get some liquidity with them and they do not need to pay more interest to The Central Bank. Since they get sufficient capital with them, they can also reduce the interest rates on the deposit as well as on the lending, so that availability of loans can be processed in the market. In this way Financial Crises (crisis) can be eliminated from the market.

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6 Types of Insurance

Insurance is a way of risk management used to cover in case of loss. In insurance the insured pays a fixed amount of premium and in return the insurer guarantees to compensate the loss of the insured`s property or life or the insured thing in case of any damage. The premiums are being determined with insurance rate. There are many types of insurance available to insure your valuable things. But in general you can find 6 types of insurance policies that are available in the market to suit your needs.

Lets have a look at the 6 basic types of insurance that you can afford.

Life Insurance : The most valuable thing in the world is our life. So to insure life is given topmost priority while talking about the 6 types of insurance. In this insurance plan the insurer company gives the financial coverage in case of loss of life of the insured and his family. The policy holder have to pay a premium to get the coverage.

Health Insurance : Health insurance covers the health related expenses that needs in an emergency. This insurance can cover your all expenses regarding the treatment, fees of doctors, Hospital charges, medicine and also other charges in case of mishaps.

Auto Insurance : 3rd type among the 6 types of insurance is Auto insurance. You can opt for it. In auto insurance policies, insurer provides cover for damage caused by motor accident. The insured pays a monthly or yearly payment to get the coverage. In return the insured gets compensation in case of any mishaps. The insured Insurance premiums are decided on basis of age, gender, marital status, distance traveled, Vehicle classification, etc.

Disability insurance: Disability insurance provides cover an individual financially, if the person looses the work ability and unable to earn his living due any illness or accident. Two types of coverage are available, one is STD or Short Term Disability and LTD or Long Term Disability. In case of STD you can get compensation for a period of maximum 2years. In LTD the compensation will be provided for the life time.

Home Insurance : The 5th among the basic 6 types of insurance is Home Insurance. It provides coverage for your home against all the mishaps. Many different plans are now available in this section to suit your needs.

Business Insurance : Businesses can also be insured from any mishaps however its big or small. In business insurance policies the insurance company provides coverage for business property and liability. The most popular business insurance is BOP or business owner's policy, it’s a kind of bunch of policies with many kinds of coverages.

These are the basic 6 types of insurance. Although outside these 6, there are bunch of other types of insurance is also available in the market like: Travel insurance, Pet insurance, Financial loss insurance etc.

You can check this video too for the more ideas on 6 basic types of insurance.

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How to have an Impressive Credit Score

To have easy credit, the utmost importance is to have a very good credit score. Except an impressive credit score everyone can`t imagine to have an easy credit. It can create difficulty while applying for your loan. If the creditor allows you to get a loan despite your bad credit score, can charge huge interest rates. So all the persons try to have a decent credit score to avoid the hackles.

How to have an impressive credit score:

There are many steps you can take to have a good credit score, but they are not always easy. Lets have some easy way to improve your credit score significantly.

• The payment history always has great impact on the credit score. So to have a good credit score must make payments on-time and avoid the late payments. This can be a boon for your credit score.

• Credit score is also determined by the amount of debt you have owed. While taking credit card debt, try not to cross the credit limit. It can effect you negatively.

• Your credit history have an impact on your credit score. The longer your history, the better your credit score. Don`t opt for too many new accounts. It can have bad impact on your score.

• If you have different kind of credits such as mortgage loan, educational loan etc. the credit score will be better.

• If you you require to have a new credit, always try to rate shopping for a limited time period. The number of recent credit inquiries also effect your credit score.
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