1 INFLATION PROTECTION author B N VENKATARAMAN

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 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 IN FIRST YEAR IN SECOND YEAR AND SO ON AND AT 20TH YEAR PAYS RS.5500 ON RS. 1 LAC LOAN

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 EVERY YEAR on a loan of Rs.1 LAC

5 INFLAPRO IN CASE OF LOAN REPAYMENT TO BANK BNV PROPOSES I N F L A P R O (inflation protected 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 ON RS. 1 LAC LOAN

6 Graph Diminishing Balance Repayment Vs Year Rupees Years

7 TYPICAL Graph (EMI) Repayment Vs Year

8 Typical Graph (INFLAPRO) Repayment Vs Year

9 graph (dimn.bal), EMI & inflapro

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

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

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 the purchasing cap is only Rs of current price. The Purchasing capacity never diminishes during the term

13 Typical chart of inflapro

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

15 Please visit And click link Chart of inflapro

16 CONTACT US Shri. B N Venkataraman D 1/233 sector F, Jankipuram Lucknow (India) Phone: Mobile: