Who does not want to prepay a home loan early? By prepaying your home loan, you take a big liability off your back. This also ensures emotional and financial security for the family. The problem is that, for most middle-class families, the home loan amount is a multiple of their annual incomes. And you would… Continue Reading
Standard Chartered Bank recently introduced an interest-only home loan product. Well, no loan gets repaid if you just keep paying the interest. Therefore, in this product, you do not need to repay any principal for a few years. The regular EMI starts on the completion of principal moratorium period. In this post, let us discuss… Continue Reading
Want to take out a home loan? What should be the loan tenure? 15 years, 20 years, or 25 years. Similarly, what loan tenure would you choose for your personal loan? 18 months, 36 months, or 60 months? OR What is the ideal tenure for a car loan? As always with personal finance, there is… Continue Reading
Who does not want a few of their home loan EMIs to be waived off? I am not speaking about the EMI moratorium scheme introduced due to Covid crisis in 2020. Under the moratorium scheme, EMIs were just postponed and not waived. Here, I am talking about Axis Shubh Aarambh home loan product, where the… Continue Reading
Given the loan amount, interest rate and home loan tenure, how many of us can calculate the quantum of EMI? I bet not many can. And most of those who can require spreadsheet software to calculate. We have written about how reducing balance home loans work. The post explains about the workings of EMI calculations.… Continue Reading
You have taken a personal loan an year ago. Interest rates have moved down since and you can get a personal at a cheaper rate. Lower interest rate means lower EMI. Without any friction, you would move to the lower interest rate right away. i.e., take the new loan at a low rate and use… Continue Reading
Loan interest rates have been going down over the past 18 months. It is also evident in the examples that we use for various illustrations in our posts. Earlier, we used 9-10% p.a. for long term loans. Now, we use 7-8% p.a. in the illustrations. If you use Amazon or Flipkart, you would have noticed… Continue Reading
I got this query from one of the readers. He had taken a home loan from a leading housing finance company. Original Loan Amount Rs 39,12,633 Loan Outstanding Rs 37,94,900 Original Loan Tenure 240 months Remaining Loan Tenure 221 months Current Rate of Interest 9.1% EMI Rs 35,455 The loan interest rates have fallen sharply… Continue Reading
Many banks have come up with loan resolution / restructuring plans for Covid-19 related stress. The relief offered by the banks works within the Loan Resolution Framework due to Covid-19 related stress. We have written about the RBI framework in an earlier post. The eligibility criteria as specified by RBI must be met. The banks… Continue Reading
The Reserve Bank of India has been cutting repo rates for over a year now. We might argue whether the loan interest rate for the existing borrowers are falling enough or not. However, the new borrowers are clearly getting attractive deals. In a previous post, I wrote about Covid-19 personal loans from public sector banks,… Continue Reading