This home loan variant may go by any nomenclature, but the concept remains the same. You take a home loan. You have an “Excess Account” where you can keep your excess funds. You can also call it “Overdraft Account.” In the next month, interest is calculated only on the (Home loan outstanding – Balance in… Continue Reading
10%? 30%? 40%? I don’t think there is a crisp answer to this. Clearly, lower the better. Let’s first understand what is credit utilisation ratio and how it is calculated. Then, we get down to what is a healthy credit utilisation ratio and the different ways to improve the ratio. What Is Credit Utilisation Ratio?… Continue Reading
A friend was planning to take a home loan of Rs 75 lacs. With an EMI of Rs 66,278 for 20 years. Over the 20 years, the total of all payments will be Rs 1.59 crores. So far, so good. Now an interesting twist. He calculated the cost of this home loan as 3.83% p.a.… Continue Reading
Your most recent credit card bill is Rs 1.5 lacs. Your cashflows do not allow you to settle the card bill in full. What do you do? Clearly, you should have been more careful and should not have raked up such a high card bill in the first place. While you should have been more… Continue Reading
Debt is bad. Loans are bad. That’s what we are fed religiously on various social media channels as well. That’s correct to an extent too, especially for personal balance sheets. If debt is not managed well, it will lead to big problems. However, things are not always black and white. Debt, if taken within limits… Continue Reading
Has your credit card application been rejected? If yes, do you know the reason? The banks usually do not tell and just reject the application. If you have recently started working and had applied for your first credit card, a reason for rejection could be the lack of credit history. Also known as ‘No Credit… Continue Reading
Almost everyone wants to close their home loan soon. A home loan is a big liability and getting this burden off the head is important for most households. Of course, there is only one way to close the home loan soon: Pay more than the EMI. There is no other way. Yes, a reduction in… Continue Reading
Recently, I misplaced my wallet. I used the word “misplaced” because I was not sure if I had lost it or had simply kept it somewhere and forgot. I noticed my wallet was missing in the morning, and I had last seen my wallet the previous evening. While I found the wallet in the house… Continue Reading
I tried to recharge my FastTag account recently through Paytm app. Decided to make payment through a credit card. My credit card was already saved/tokenized on the app and hence did not have to enter the credit card details. That’s expected and quite convenient too. However, I was not asked to enter CVV either. The… Continue Reading
Recently, I came across a viral content on social media where the author referred to home loans as a scam. Why? The author took a loan of Rs 48 lacs. EMI of Rs 42K. After paying 15 EMIs, the author had repaid only Rs 75,000 in principal and Rs 4.8 lacs in interest. And it… Continue Reading