For an expensive online purchase, do you pay in full or take the benefit of an EMI scheme? Depending on the range of credit cards you have and the ongoing offers, you may have the following options during checkout: Full upfront payment. Full upfront payment with discount. Interest-EMI without discount: The EMIs add an interest… Continue Reading
You must have heard that you can get a loan against your life insurance policy. Are you aware that all life insurance policies are not eligible for a loan facility? Yes, only a certain category of life insurance products are eligible for a loan against policy facility. Types of Life Insurance Products There are broadly… Continue Reading
Here’s another case of identity theft. The victim was a finfluencer and he narrated his ordeal lucidly in a Twitter thread. You can go through the Twitter thread for a detailed account — https://x.com/b50/status/1796784315990491526 Here is the TLDR version: He started getting calls from recovery agents. Checked CIBIL report which showed a digital loan. Had… Continue Reading
Debt is not evil. In fact, if used responsibly, debt can be extremely useful. Yes, taking on debt involves additional cost in the form of interest. Clearly not desirable but that’s just the cost of capital. If you are using your own funds for purchase, consider the possibility that those funds could have been invested… Continue Reading
Have you taken a loan from your employer at a concessional rate of interest? As I understand, such arrangements are quite common for bank employees. The banks offer loans at a concessional rate to their employees. This could result in significant interest savings for the employees, especially for long tenure loans. However, as per the… Continue Reading
I will give you Rs 1 lacs. You have to pay me 5% interest. Sounds like a good deal? I will add a few caveats. You must pay 5% interest upfront. Pay off the loan in 3 equal monthly installments of Rs 33,333 each. Is this a joke? No, it is not. This is the… Continue Reading
RBI released a very important circular on April 15, 2024 about Key Facts Statement (KFS) for loans and advances. The circular aims to enhance transparency in the loan costs and charges for the retail borrowers. Usually, the loan agreements have all the information about various costs and charges, but loan agreements are lengthy documents, and… Continue Reading
I noticed a new charge in my recent credit card statement. DCC Fee. While the quantum of charge was low, I still had to find how it became applicable. What is DCC Fee? DCC stands for Dynamic Currency Conversion fee and this fee is levied in two cases: For transactions conducted in INR at international… Continue Reading
Ever wondered how refunds from failed/reversal/refund transactions are adjusted to your credit card bills? You may think, since the transaction will eventually be reversed, the bank will not charge you for the transaction. You are right, but the timing of the reversal/refund may sometimes complicate things a bit for you. RBI has specified the adjustment… Continue Reading
Can you spend beyond the sanctioned limit on your credit card? Let us say the sanctioned credit limit is Rs 1 lac. Can you do a purchase transaction of Rs 1.25 lacs? Or can the total unbilled transaction add up to more than Rs 1 lac? Apparently, you can. You can spend beyond the sanctioned… Continue Reading