You need to pay your daughter’s college fee of Rs 15 lacs in the coming month. You are wary of visiting the bank branch multiple times for getting an education loan sanctioned. You took a home loan 5 years back. You get a call from your bank that you are eligible for a top-up home… 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
Buying life insurance to cover your home loan is a good idea. For both borrowers and the banks. I recently came across a home loan product from Bank of Baroda, where the bank charges you a higher rate of interest if you don’t purchase a loan (credit) insurance product from the bank. This is a… 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
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
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
You take a Rs 50 lacs home loan for 15 years at 8% p.a. The EMI for the loan shall be Rs 47,782. Interest rates keep changing. When the interest rate rises, the default bank action is to keep the EMI constant and increase the loan tenure. Let’s say the interest rate for your loan… Continue Reading
HDFC Ltd. merged with HDFC Bank effective July 1, 2023, and thus HDFC Ltd. ceased to exist from July 1. Does that affect the home loan borrowers from HDFC? What Happens to the Existing Home Loan Borrowers with HDFC? HDFC Bank has released FAQs for the existing HDFC home loan borrowers and loan applicants. You… Continue Reading