A few weeks back, I wrote about the impact of RBI repo rate hikes on your home loans EMIs. RBI Repo rate hikes will quickly translate to longer loan tenures or higher EMIs for the borrowers, especially if your loan is linked to an external benchmark. If there is scope to increase the loan tenure… Continue Reading
You need Rs 5 lacs to fund an important event in your family. You have 2 options. Sell your debt funds (you had built up an emergency fund using debt funds for such situations only) Take a personal loan Selling your debt funds seems a superior decision over taking a personal loan. Why? Because the… Continue Reading
You have heard of gold loans. You reach out to a bank or NBFC, pledge your gold/gold jewellery, and the bank sanctions you a loan. However, have you heard of a gold-backed credit card? I had not until I read about a gold backed credit card from Rupeek. How does it work? Simple. You pledge… Continue Reading
The Reserve Bank has hiked the Repo rate in the first week of May 2022. If your home loan is linked to Repo rate or to any external benchmark, you will soon see one of the following things happen. EMI stays constant and the outstanding loan tenure goes up (that is the usually the default… Continue Reading
The Reserve Bank published Master directions on Credit and debit card issuances in April 2022. In the previous post, we looked at the rules pertaining to the closure of credit card accounts. In this post, I will focus on the changes in the billing rules for the credit cards. #1 No Charge for Disputed Transaction… Continue Reading
Ever tried to close a credit card? If you have, you know it is not easy. Not all banks cooperate when you try to close/cancel a credit card. What if I were to tell you that your bank must pay you a penalty of Rs 500 per day for each day of delay beyond 7… Continue Reading
Have you been reading reports about fake loans (loans taken using forged documents)? You may ask, how can this happen? An impostor uses your PAN in the application and gets a loan, the loan shows up against your name (and not the actual borrower). Again, such fraudulent intent should have been caught during KYC stage,… Continue Reading
You have a home loan from HDFC? In April 2022, it was announced that HDFC will merge into HDFC Bank. You may ask, aren’t these the same? No. HDFC and HDFC Bank are different entities. HDFC is a housing finance company (HFC) and is the promoter of HDFC bank, the bank. If you are still… Continue Reading
Interest does not take holidays. That’s right. When you take a loan, you pay interest for every day you have borrowed. When you make a fixed deposit, the bank pays you interest for each day. For interest, there is no concept of working and non-working days, festivals, and national holidays. However, in the case of… Continue Reading
Amit (name changed) approached HDFC for a home loan. The lender sanctioned the home loan and cross-sold a home insurance policy (HDFC Home Suraksha Plus). The home loan amount is Rs 29 lacs, and the single insurance premium is ~95,000. The premium for the insurance plan is quite high. Amit can’t pay such a high… Continue Reading