ADDITIONAL TERMS USED IN THIS
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Post-term Benefits: In case of conventional loan policies, the post term benefits is Nil. or the repayment is complete in the terms span.
However, in inflapro option the balance at end of term can be considered to prorating to the percentile of last payout.
ie. In conventional cases it(future term) is partial balance of the loan amount. i.e. further debt as percentage (0% 50% and 100% options are provided in this.
In the case of pension scheme it is equivalent to return of purchase price either 0 or 50% or 100%.
With computer facility we can have any percentile from 0 to 100%;
In the case of INFLAPRO option 7, the future amount is always sufficient to get(pension) or repay(loan) at the 100% of last instalment amount.
In the case of INFLAPRO option 10, the future amount is always sufficient to get(pension) or repay(loan) at the 50% of last instalment amount.
Please view the audit tables for illustration of these by changing the input parameters in the custom page menu.
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Moratorium: In inflapro options the return in initil periods are too low that one can opt for moratorium period say 3 years / 5 years etc.
During the moratorium period the instalment (repayment or pension as the case may be) would be nil.
Moratorium is for option 2,3 and 4,5 or option 11,12.
Term: Let us call it uniformly as a policy term. It is either Loan period, policy period, investment period etc. as the case may be. For explanations in these web pages
It is in whole number of years only. The maximum number of years is 70 years in these web calculations. In some places because of graph limitations it is 50 years only.
There is maximum term limit just because we are going to calculate the INFLAPRO or inflation protection which is exponential and exponential terms can not go for unlimited period,
it has been restricted. In some cases there is provision for 100 years in my calculations.
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Inflapro option 1,4,7,10: The calculation for these option are shown in this page and customised. Option 1 is conventional without considering the inflation protection.
opton 4 is with application of inflation percentage, if inflation % is selected zero then in case of option 4 calculations are given for 10%,
because the option 4 with inflation 0% is same as the option 1, which has no meaning with inflation protection.
The post period benefits are same as option 1. i.e. if option one leaves 50% of principal, option 4 also will leave the 50% of principal.
opton 7 is with application of inflation percentage, if inflation % is selected zero then in case of option 7 calculations are given for 10%,
because the option 7 with inflation 0% is same as the option 1, which has no meaning with inflation protection.
The post period benefits are such a way that the carried over balance with round off effects attracts an interest of 100% as last pension drawn
opton 10 is with application of inflation percentage, if inflation % is selected zero then in case of option 7 calculations are given for 10%,
because the option 10 with inflation 0% is same as the option 1, which has no meaning with inflation protection.
The post period benefits are such a way that the carried over balance with round off effects attracts an interest of 50% as last pension drawn
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Other inflapro optins: i.e. option 2,3 and corresponding 5,6 and 11,12 are not emulated in this page. That covers inflapro calculation with moratorium.
In the moratorium perid, in case of education loan the interest applied is simple interest calculation otherwise in general it is compound interest principle, and
also it is to be noted that education loans are calculated at interest rate that is compounded as per normal practice. The compounding rate per annum of
the quarterly rate. The presently such rate is of the oder of 10.5% compounded quarterely. It works out to 10.92072% compounded annually.
In such a case in custom menu of education loan interest rate of 10.5 has to be entered. However in case of inflapro custom menu at another place
it has to be entered as 10.92072 if you have selected frequency as annual. However that page is login protected. In case you have selected monthly
frequency then the rate would be 10.40944 only. This is the technical aspect of it in using the custom menu at different places, in order to get same results.
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WITH THESE MUCH OF BACKGROUND AND UNDERSTANDING THE INFLAPRO CALCULATIONS CAN VISIT THE HOME
PAGE OF THIS WEB SITE and click various inflapro options such as LIC pension, educatin loan, custom menu etc etc. Plenty of calculations are
shown without the requirement of any login. Inflapro can also be applied to insurance , insurance commission, mutual fund, preference share applications and last but not least
the application on compensation to land acquisition. All sample calculations are available in this web site.
Custom menus require login registration with email id.
The is a custom menu in Education loan application that does not require log in. but one should remember that the moratorium calcualtions are based on simple interest.