Ever wondered how refunds from failed/reversal/refund transactions are adjusted to your credit card bills? You may think, since the transaction will eventually be reversed, the bank will not charge you for the transaction. You are right, but the timing of the reversal/refund may sometimes complicate things a bit for you. RBI has specified the adjustment… Continue Reading
Can you spend beyond the sanctioned limit on your credit card? Let us say the sanctioned credit limit is Rs 1 lac. Can you do a purchase transaction of Rs 1.25 lacs? Or can the total unbilled transaction add up to more than Rs 1 lac? Apparently, you can. You can spend beyond the sanctioned… Continue Reading
Have you ever received an unsolicited card? OR received a card that you applied for but now think that you shouldn’t have applied for this card. As per regulations, the banks are prohibited from issuing unsolicited cards and are required to seek consent from the customer before issuing a card. Reproducing an excerpt from RBI… 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
You are taking a home loan. You are worried, who will repay the loan if you were not around? The lenders (the banks and NBFCs) are bothered about this too. And this is a genuine problem for every stakeholder. You, your family, and the lender. How will the loan be repaid if the borrower passes… 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
Credit scores are becoming more and more important. Your credit score reflects your credit worthiness. A good credit score can not only improve the odds of approval of your loan application but can also lower your loan interest rate. Not just that, but a good credit score can be helpful in other aspects of life… Continue Reading
Have repaid your home loan but are struggling to get back the documents from the bank? I have never taken a secured loan but have read that the banks are not so friendly in returning the documents to the borrowers after full repayment of the loan. No matter how much you may want the original… Continue Reading
The Reserve Bank has come out with two separate circulars in the middle of August 2023. First about levy of penal interest and the second about the reset of interest rate in retail floating rate loans. We discussed both these topics when the RBI broached these topics for the first time. Coming Soon: EMI Defaults… Continue Reading
You take a Rs 50 lacs home loan for 15 years at 8% p.a. The EMI for the loan shall be Rs 47,782. Interest rates keep changing. When the interest rate rises, the default bank action is to keep the EMI constant and increase the loan tenure. Let’s say the interest rate for your loan… Continue Reading