1. 1 INFLATION PROTECTION -------------------------------------- author B N VENKATARAMAN

2. 2 INFLATION AND RETURN ---------------------------------------- There is inflation consistently over the period of years and since 2010 it is of the order of 10% Whereas if one has capital amount in bank FD or LIC pension one gets return fixed percentage say 9.25% or With tax exemption 10(10)D some 8%

3. 3 1980s and before ---------------------------------------------- IN CASE OF LOAN REPAYMENT TO BANK WE HAD DIMINISHING BALANCE METHOD WHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT OF PRINCIPAL PLUS INTEREST ON DIMINISHING RUN BALANCE IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYS RS.15000 IN FIRST YEAR 14500 IN SECOND YEAR AND SO ON AND AT 20TH YEAR PAYS RS.5500 ON RS. 1 LAC LOAN

4. 4 Since 1994 we have EMI ---------------------------------------------- IN CASE OF LOAN REPAYMENT TO BANK WE HAD EQUATED MONTHLY INSTALMENT METHOD WHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT OF COMBINED (PRINCIPAL REPAYMENT PLUS INTEREST). IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYS RS.11745 EVERY YEAR on a loan of Rs.1 LAC

5. 5 INFLAPRO ---------------------------------------------- IN CASE OF LOAN REPAYMENT TO BANK BNV PROPOSES I N F L A P R O (inflation protected say @ 10%inflation) METHOD WHEREIN THE BORROWER HAS TO REPAY EQUAL INSTALMENT less amount than in EMI in the first year and repays 10% over Previous year repayment in next year and so on Until the end of term. IN A TYPICAL CASE FOR 20 YRS SCHEME WITH RATE OF 10% interest ONE PAYS RS.5500 IN FIRST YEAR 6050 IN SECOND YEAR AND SO ON AND AT 20TH YEAR PAYS RS.33637 ON RS. 1 LAC LOAN

6. 6 Graph Diminishing Balance Repayment Vs Year ----------------------------------------- Rupees Years

7. 7 TYPICAL Graph (EMI) Repayment Vs Year -----------------------------------------

8. 8 Typical Graph (INFLAPRO) Repayment Vs Year -----------------------------------------

9. 9 graph (dimn.bal), EMI & inflapro ----------------------------------------------

10. 10 PURCHASING CAPACITY (DIMN.BALANCE) ------------------------------------------- WITH THE RETURN OF RS 15000 IN FIRST YEAR The purchasing cap. Is approx 15000 and In 20 th year with return of 5500 the purchasing cap is only Rs. 900 of current price

11. 11 PURCHASING CAPACITY (EMI) ------------------------------------------- WITH THE RETURN OF RS 11745 IN FIRST YEAR The purchasing cap. Is approx 11745 and In 20 th year with return of 11745 the purchasing cap is only Rs. 1920 of current price

12. 12 PURCHASING CAPACITY (INFLAPRO) -------------------------------------------- WITH THE RETURN OF RS 5500 IN FIRST YEAR The purchasing cap. Is approx 5500 and In 20 th year with return of 33637 the purchasing cap is only Rs. 5500 of current price. The Purchasing capacity never diminishes during the term

13. 13 Typical chart of inflapro ------------------------------------------------------------------------

14. 14 BNV's WEB SITE ------------------------------------- THERE ARE TWO WEB SITE www.bnv.bvraghav.com www.bnv.bvraghav.com Dealing inflapro in detail of one option For a given set of parameters and www.bnvenkat.com www.bnvenkat.com Giving chart of inflapro With 13 options for a given set of parameters

15. 15 Please visit www.bnvenkat.comwww.bnvenkat.com And click link Chart of inflapro

16. 16 CONTACT US ------------------------------------- Shri. B N Venkataraman D 1/233 sector F, Jankipuram Lucknow (India) 226 021 Phone: 0522-4072761 Mobile: 7388270901