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
You take a personal loan of Rs 2 lacs from a bank. Interest rate is 10% p.a. What is the cost of the loan? 10% p.a., right? Isn’t interest rate the cost of loan? Yes, but only if the bank levies no other charges. If the bank does levy additional charges, then the cost of… 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
Every lender claims to offer the “Best Personal Loan”. Fair enough. “Best” is anyways subjective. No one knows what aspect of the personal loan the bank is referring to. Well, according to you, what shall be the features of the “Best personal Loan”? In this post, let’s find out. While we are discussing the “best”… Continue Reading
ICICI Bank has launched an EMI facility for UPI payments under its ICICI PayLater product. With this, you can scan a UPI QR code from the UPI app and purchase using an instant EMI facility. So, you purchase an item worth Rs 15,000 and instantly convert this into 3 EMIs of say Rs 5,200 each.… Continue Reading
You open Amazon/Flipkart to purchase your favourite gadget. You notice you can get a discount if you pay using a credit card from a particular bank. And you get a higher discount if you purchase on EMIs using the same credit card. Interesting, isn’t it? Why higher discounts on EMI purchases? But first, why discounts… Continue Reading
EMIs make it easy and convenient to buy online. But even with EMIs, you have multiple options. You can opt for Instant EMIs (also called Merchant EMI) directly on the merchant website. Or you can pay the full amount upfront and later ask your bank to convert the purchase amount to EMIs. Which option is… Continue Reading
A car is an expensive purchase, and many families take a car loan to purchase the car. In this post, I discuss aspects that you must keep in mind while taking a car loan. #1 Processing Fee Car loans are short to medium term loans. Usually, 3 to 5 years. Hence, the impact of processing… Continue Reading
The simplest way to assess the affordability of the loan is to look at the EMI. Lower the EMI, the more affordable the loan is. Because that’s the hard cash you must pay every month. The EMI depends on the loan amount, the loan tenure, and the interest rate. And you can tweak around these… Continue Reading