Yes, that’s possible and it is all mathematics. In this post, let’s understand how this can happen. Before we go there, let’s do a quick recap of how No-cost EMIs work. How No-Cost EMIs Work You purchase an item worth Rs X. You opt for the No-cost EMI option (let’s say 6 months) on the… 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
Want to make an online purchase but do not have money in your bank account? Fortunately, e-commerce websites allow you many options to buy on credit. What Are Your Credit Options for Online Purchase? Credit card No-Cost EMI (on a credit card) Personal Loan Buy Now Pay Later scheme I want to compare options that… Continue Reading
Editor’s Note: Poornima had written a quick short post on SBI Kavach Personal Loan earlier. Below is a more in-depth article on this product from Deepesh Raghaw. Its rare that lenders offer good loan products to customers in times of distress/need. The more we know about such a good product, the better. If you still… 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
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
You plan to buy an expensive phone from Flipkart or Amazon. You do not have the free cash to buy the phone outright or settle the credit card dues in a month’s time. What can you do? You can buy the phone on EMIs. You have two options. You take the EMI offer available on… Continue Reading