Your most recent credit card bill is Rs 1.5 lacs. Your cashflows do not allow you to settle the card bill in full. What do you do? Clearly, you should have been more careful and should not have raked up such a high card bill in the first place. While you should have been more… Continue Reading
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
You plan to take a personal loan. What is the flexibility you would want from your personal loan product? I will share a few thoughts on flexibility expected. Lower charges (beyond the loan interest rate). Processing fee etc. Zero or lower prepayment penalty. No prepayment penalty in a personal loan is asking for too much.… 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
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
What is an EMI? Equated Monthly Installment. We usually associate this term with loan repayment. Every month, the same amount (and hence the word “Equated”) gets debited from your bank account and is used for loan repayment. A portion of the EMI goes towards interest payment and the rest towards the principal repayment. We have… 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
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
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
Credit card debt is the most expensive debt in the formal finance sector, with the annual interest rates ranging from 30% to 45% p.a. Hence, you should try to avoid revolving your credit card debt. “Revolving” means not paying your credit card debt in full and carrying forward unpaid amounts to the next cycle. The… Continue Reading