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
It is a new year. A chance to look back at how the past year went by. Achievements, setbacks, things that went right and what could have been. And an opportunity to welcome the new year. Make new resolutions and set out to achieve with loads of optimism. We will leave your life resolutions to… Continue Reading
On the account of Covid-19 related lockdown and associated financial stress, RBI had offered loan moratorium to borrowers. We checked in some of our earlier posts how availing loan moratorium provided immediate relief but increased your liability (same EMI but longer tenure OR same tenure but higher EMI). A component of increase in liability was… 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