Loan against form 16?

Ask any person what is their biggest asset? Well it sets them thinking….and then the facts…

Most people do not know what is their biggest asset. They then say – it is ‘ my house’ , ‘my equity portfolio’, my car, etc.

However then I lead them to the next question:

Have you borrowed for your house?

They jump and say yes. My house cost me 93 lakhs – i put Rs. 12L of my own and borrowed Rs. 81 lakhs…or so goes the discussion.

Is this a home loan? They say yes. I ask them what is the security that you gave…they think it is the house. It is not.

You do not get a house loan, a car loan or a personal loan. What you get is a loan against your FORM 16 – it is an assumed capability to create income in the future ALSO.

So your biggest asset is ‘your ability to create the net cash flows which can repay the loans’ – that is your earning power.

What can affect your earning ability / power to bring in the cash flows?

Early death, Critical Illness, Disability – and these are the risks that you run. Thankfully these are all insurable risks.

One more very big factor affects your earning ability if you are in service – RETIREMENT. Learn about saving / investing for your retirement.

Read India’s latest book on Retirement planning – or a Retirement Guide by an Indian author “Retire Rich Invest Rs. 40 a day” – see the page on ‘about the book I have written’ button…you will find greater details.

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6 Responses to “Loan against form 16?”

  1. Where can I find your book in Hyderabad ? Thanks.

  2. thanks for asking! Crosssword, Landmark, “”, shops like bookzone at Mumbai, ….check on the net that seems to be the easier route?

  3. I am in US and want to buy this book. Please let me know are there any website sells/ships this book in/to US. Please provide me the details.

  4. I received it via courier from A1Books.

  5. Hi Subra,

    Reading your thoughts is insightful. However, what is in your book , I can expect to gain, which is different from your postings.


  6. can i get loan with my form 16 and pan card.

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