For an expensive online purchase, do you pay in full or take the benefit of an EMI scheme? Depending on the range of credit cards you have and the ongoing offers, you may have the following options during checkout: Full upfront payment. Full upfront payment with discount. Interest-EMI without discount: The EMIs add an interest… Continue Reading
When you apply for a loan, your primary aim is to reduce the interest rate of the loan. And that’s a fair concern too. We assume that the interest (the cost of the loan) will be calculated properly. However, the Reserve Bank of India, the banking regulator, has found during examination that certain lenders have… 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
You are taking a home loan. You are worried, who will repay the loan if you were not around? The lenders (the banks and NBFCs) are bothered about this too. And this is a genuine problem for every stakeholder. You, your family, and the lender. How will the loan be repaid if the borrower passes… Continue Reading
Struggling with credit card debt? You make small payments on your credit card every month, but the debt just does not seem to go down. Why Does This Happen? Because credit cards are the most expensive debt in the formal finance sector. The interest rate ranges from 36% to 45% p.a. While you may be… Continue Reading
The Reserve Bank has recently increased the risk weights on personal loans and credit card receivables. Many questions would have popped up in your mind. What are risk-weights? And how do these risk-weights affect the cost of your loans? In this post, let’s find out. Can the Banks Lend Whatever They Want? We know that… 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
If you own a credit card and have been paying your bills on time, your bank must have bombarded you with one of the following offers. This is over and above various merchant/brand or discount/cashback offers that the bank sends communications about. Get a higher credit limit. Get a personal loan on your credit card.… Continue Reading
RBI has increased repo rate from 4% p.a. to 6.5% p.a. since May 2023. If your home loan is benchmarked to RBI Repo rate, that means a hike of 2.5% in your home loan interest rate. Impact of Interest Rate Hike on Your Loan Tenure Usually, the default option in case of interest rate hike… Continue Reading
While trying to figure out a good home loan product for a client, I stumbled upon these revised interest rates on SBI home loan website. You can read the SBI campaign offer document here. There are a few points that stand out in this interest rate chart. #1 SBI Has Reduced Home Loan Interest Rate… Continue Reading