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
You have Rs 4 lacs in your bank account. You have 3 loans running and a bit of credit card debt. Home loan of Rs 20 lacs (Remaining Tenure: 17 years, Rate: 8% p.a., EMI: Rs 18,000) Personal loan of 5 lacs (Remaining Tenure: 3 years, Rate: 13% p.a., EMI: Rs 17,000) Personal Loan: Rs… Continue Reading
Not all credit is bad. In this post, I will show how an overdraft facility can be useful in certain cases. What Is an Overdraft Facility? An overdraft facility is a revolving credit facility just like a credit card. You pay interest only on the drawn (utilized) amount. You can draw from the facility up… Continue Reading
You got your annual bonus. You have a home loan too. What should you do? Use the bonus (lumpsum) amount to repay the loan OR Invest the amount in the hope that you will earn a higher post-tax return than the post-tax cost of home loan There is no black and white answer. My stance… Continue Reading
We had written about COVID-19 Personal Loan from Public Sector Banks earlier. These loans were not necessarily meant for covid medical expenses. Now, there’s some good news for all SBI customers (including salaried, non-salaried and pensioners). SBI is offering Kavach personal loans to its customers who are facing the cash crunch during this pandemic specifically… Continue Reading
Home loan interest rates have been moving down over the last couple of years. At some point in time, the interest rates will bottom out. Some of us may feel that the interest rates have already bottomed out. In that case, if you are planning to take a home loan, is it a good idea to… Continue Reading
Home loan is a long term financial commitment. At the time of borrowing, your income may not be sufficient to service the bigger EMI or you may have other obligations and debts like car loan or personal loan. But once you are done with all other loans or when your income increases, you may be… 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
You just got your annual bonus. You want to decide between whether to use the bonus to prepay the home loan. Or put this money away in a bank fixed deposit or any other investment. The approach is simple. If the post-tax cost of your loan is HIGHER than the post-tax return from the supposed… Continue Reading