There are two schools of thought on borrowing. Both are right in their own way. Don’t borrow. Don’t waste your money on EMIs. Debt is evil. Invest for your financial goals, grow your money, and enjoy only when you have enough money. OR Money can be earned later too, but the time won’t come back.… Continue Reading
A common answer is 35-40% of the net take home salary. If you search on the internet, you will get an answer in a similar range. The banks may also have internal guidelines where they may not let your loan EMIs exceed a certain percentage of your net salary. When it comes to financial planning,… Continue Reading
Have you ever lost your credit/debit card? If you have, how did you react? Did you panic? What is the first thing you did? However, do you really need to worry? Don’t credit cards have inbuilt security features? For instance, when you swipe your credit card, you must enter your credit card PIN. And unless… Continue Reading
What is an EMI? Equated Monthly Installment. We usually associate this term with loan repayment. Every month, the same amount (and hence the word “Equated”) gets debited from your bank account and is used for loan repayment. A portion of the EMI goes towards interest payment and the rest towards the principal repayment. We have… Continue Reading
A good credit score is important. It can provide you with access to a wider range of credit facilities and help reduce the cost of credit. Going forward, your credit score may play an important role in non-financial matters, say employment or taking a house on rent. Fair enough but what are the factors that… Continue Reading
I have not found too many people who are not in a rush to close their home loans. For some, the obsession is so high that they put everything else, even long-term investments, on the back burner while they focus on closing their home loans. Do you belong to the same group? Nothing wrong in… Continue Reading
The festive season has begun. It starts with Ganesh festival (at least in some parts of the country), then Navratri, Diwali, and all the way to Christmas and the New year. The retailers also want to cash in on the festive mood and launch sales deals, discounts, and cashback offers during the period. This is… Continue Reading
You have 2 home loans. You got an annual bonus. You want to prepay your home loan. Which home loan would you prepay first? Clearly, the one with a higher rate of interest, right? You save more by paying off the loan with a higher rate of interest. Ready-to-Move-in or under-Construction Property? The choice will… Continue Reading
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
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