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
You wouldn’t want to find yourself in a situation where you are struggling with debt. As discussed in many of our earlier posts, there are only 4 ways to get out of debt problems. Increase income Reduce expenses Reduce debt Reduce the cost of debt Or a Mix of all the above approaches In this… Continue Reading
If you want to repay your home loan quickly, the only way out is to make some prepayments on the home loan. Many use their annual bonuses to make big prepayments on their home loans. Not surprising that average home loan tenure in India is about 7-8 years. What if you can’t manage very big… Continue Reading
Recently, I read an excellent article from Uma Shashikant about the signs of a person battling with debt. Remember, the person who is in debt trap or nearing one may not tell you if that’s the case. However, if you see such signs and realize that your friend or family member is struggling with debt,… Continue Reading