Home loans are long tenure loans. 15-30 years. And even a difference of a few basis points can make a huge difference to your overall nominal outgo. Assuming the interest rates stay constant, here is the difference between the cash outgo to repay a Rs 50 lacs home loan in 20 years. Interest Rate 7.50%… Continue Reading
The Reserve Bank has come out with two separate circulars in the middle of August 2023. First about levy of penal interest and the second about the reset of interest rate in retail floating rate loans. We discussed both these topics when the RBI broached these topics for the first time. Coming Soon: EMI Defaults… Continue Reading
Home loan interest rates have risen over the 15 months. When interest rates rise, the default response by the banks is usually to increase the tenure while keeping the EMI constant. If the tenure can’t be increased because of the loan tenure breaching the contracted tenure or because you don’t want to pay for a… Continue Reading
You take a Rs 50 lacs home loan for 15 years at 8% p.a. The EMI for the loan shall be Rs 47,782. Interest rates keep changing. When the interest rate rises, the default bank action is to keep the EMI constant and increase the loan tenure. Let’s say the interest rate for your loan… Continue Reading
Do you use credit cards for cashbacks, discounts, and rewards points? Many of us do. What if the bank were to suddenly reduce such benefits on your credit card? Why Would Your Bank Reduce the Benefits? Yes, the customer may get annoyed and feel cheated. You may use the card less or even stop using… Continue Reading
If you own a credit card and have been paying your bills on time, your bank must have bombarded you with one of the following offers. This is over and above various merchant/brand or discount/cashback offers that the bank sends communications about. Get a higher credit limit. Get a personal loan on your credit card.… Continue Reading
Recently, I found out about SBI Cashback credit card and found its features and benefits quite simple. In this post, let us review the product features and how it fares against two popular cashback credit cards. Amazon Pay ICICI Credit Card and Flipkart Axis Bank Credit card. Major Benefits and Features of SBI Cashback Card… Continue Reading
Starting October 1, 2023, you may be able to port your credit Card just like your mobile number. No, you won’t be able to port your ICICI Bank Credit Card to HDFC Bank or vice versa. But you can choose the card network for your credit card. What Are Card Networks? If you look at… Continue Reading
Credit card debt is the most expensive debt in the formal finance sector, with the annual interest rates ranging from 30% to 45% p.a. Hence, you should try to avoid revolving your credit card debt. “Revolving” means not paying your credit card debt in full and carrying forward unpaid amounts to the next cycle. The… Continue Reading
That’s how it should be, right? Longer home loan tenure means you want a longer period to repay the home loan. And that can happen only if you repay the loan slowly. Still, when I wrote about a 40-year home loan product a few weeks back and discussed how you would have paid only ~15%… Continue Reading