Even when you plan to purchase a house through a loan, you still must make the down-payment from your own pocket. Your home loan wouldn’t fund the complete purchase amount. You must fund some percentage of the purchase from own pocket. What if you didn’t plan well and you do not have funds to make… Continue Reading
Education loans have a unique feature. That feature is moratorium on interest payments. On home loans, you get a moratorium on principal repayments (Pre-EMI) and not interest payments. Interest must be paid on time. Even for corporate loans, moratorium is typically only for principal repayments. And there is good rationale behind such moratorium on interest… Continue Reading
Real estate is expensive in India, at least in major cities. It is difficult to purchase a house without a loan. And it takes many years to repay the loan. Despite all this difficulty, the desire for house does not end here. For the fortunate few who have been able to purchase their first house,… Continue Reading
That’s right. You just need to think of the bank as an investor. For the bank, a loan is an investment that it earns interest (return) on. You take a loan of Rs 50 lacs at 9% p.a. for 20 years. It is a bullet repayment loan. You pay the entire amount at the end… Continue Reading
We know that Financial institutions can do many things to sell their products. However, they refrain from codifying their thoughts or practices in an article or a blog post. Therefore, even though they indulge in many dubious activities to sell, they don’t write about it. I recently came across an article on the website of… Continue Reading
You have been struggling to make your credit card or loan repayments for a few months now. Bank officials and recovery agents have been breathing down your neck to make these payments. You have explored all potential options, but nothing has materialized. You have grown tired of all this. You decide to approach your bank… Continue Reading
A chain is only as strong as its weakest link. Similarly, your financial plan is only as good as your financial ability to handle a crisis. Why? Because things go wrong. Recently, Jet Airways shut down its operations indefinitely. Even before the shutdown, there were news about employees not being paid salary for months. Now… Continue Reading
When we book an under-construction property, the only outcome that we think of is getting possession of the property in a few years as promised. You either plan to set up your home there or bet that the price will go up quickly. Have you planned for any other eventualities? Likely not. In other words,… Continue Reading
Given the property prices, most of the home buyers take a home loan to fund the purchase. While finalizing a loan product, one of the critical decision factors is the loan interest rate. Clearly, you would prefer the lowest rate of interest. Competition in the home loan segment has ensured that the interest rate for… Continue Reading
We get several queries from readers about if they can get a loan or how much loan will they get. Some queries have details about the income or security too. It is not easy to answer such queries. The banks look at many more things before they sign off your loan application. By the way,… Continue Reading