Axis Bank has a unique offering where the bank waives off your last 12 EMIs if you have maintained a good repayment record. Looks like a really good deal. Who wouldn’t like to save on 12 EMIs? You would, right? Why will a bank waive off the EMIs? Banks never do charity. Clearly, there is… Continue Reading
Ever since MCLR (Marginal Cost of funds based Lending Rate) came into existence from April 1, 2016, a question that I have been asked multiple times is “Should I switch from Base Rate to MCLR?” The frequency of these questions grew after various banks cut their MCLR sharply after the demonetisation drive. How Can I… Continue Reading
In this post, I will share an example where the bank did not pass the interest rate cut to the customer for a very long time. I found out about this case in an article in MoneyLife magazine. A gentleman took a floating rate loan from HDFC Bank in 2007. The loan was to be… Continue Reading
Young salaried employees are target customers for all the banks. Therefore, you can expect them to come with schemes to lure such prospects to their fold. The core idea behind such products is to offer such customers principal moratorium for a few years (since they may not be able to afford the full EMI). The… Continue Reading
Almost everyone plans to purchase a house sooner or later. For those who want to purchase their house early in their professional career, affordability of the home loan can be a serious issue. Your salary grows over a period of time. Your non-discretionary expenses such as rent, groceries, utility bills, school fees for kids etc.… Continue Reading
Ministry of Finance and EPFO have been on overdrive to ease partial withdrawal rules from EPF. With “Housing for All by 2022” in mind, there has been significant relaxation in EPF partial withdrawal rules if you want to withdraw to acquire a house. No Need for Multiple Claim Forms In a press release dated February… Continue Reading
I do not think there will ever be a crisp answer to this question. First, when the “right property” comes along, you will convince yourself to stretch your budget and go for a larger home loan. So, all the calculations and discussion on this topic may be futile to some extent. Well, nothing wrong in… Continue Reading
Refinancing a loan simply means availing a loan from a new lender to pay off an existing one. You approach a new lender for loan refinancing/balance transfer. The new lender sanctions the loan and settles your loan outstanding with the existing lender. Subsequently, your obligation with the existing lender terminates and a new repayment obligation… Continue Reading
I have discussed the question of whether you should switch your home loan from Base Rate to MCLR in an earlier post. Most of us focus only on the interest rate and the switch fee while deciding but tend to ignore spread while making the decision to switch from Base Rate to MCLR. From April… Continue Reading
Most salaried employees get their annual bonuses in the first quarter of the financial year. Many of us plan to spend it way before we actually receive the bonus. You have to keep up with the commitments that you made to your kids, your spouse, your siblings or your parents. You may have an eye on… Continue Reading