How to Deal with a Recovery Agent?

I came across an instance in a Youtube video about how borrowers are harassed by recovery agents. A news organisation uploaded the video on their Youtube channel. Do note the media does not smell of roses and tends to sensationalize things. I have not independently verified the claims of the concerned media channel. Broadcast media… Continue Reading

Borrow More for the Same Amount of Gold

The Reserve Bank of India has increased the Loan-to-Value (LTV) for gold loans offered by banks from 75% to 90%. This is to increase the availability of credit to households and small businesses during these difficult COVID times. Many Indian households hold gold. And gold makes for an excellent collateral. From a lender’s perspective, it is… Continue Reading

Loan Moratorium out, Loan Resolution In

The Loan Moratorium ended on August 31, 2020. While I have written about various measures to manage cashflow stress beyond August 31, let’s explore the relief that RBI has afforded to individual borrowers in a circular issued in August 2020. On August 6, 2020, the RBI provided a framework for Resolution of COVID 19-related stress.… Continue Reading

EMI Moratorium Math Explained

22-May Update — RBI has extended EMI moratorium on all term loans by another 3 months till 31-August-2020. The Reserve Bank of India had announced a 3-month EMI moratorium as a Covid-19 regulatory package in March 2020. In a previous post, we discussed if you should opt for such a moratorium. The crux was that, if… Continue Reading

What If Your Lender Fails?

Recently, RBI imposed a moratorium on withdrawals from a leading private bank. The depositors and the investors with the bank were understandably worried. The stock price tanked the following morning. We have been focusing on how the various depositors will be affected. As I understand from the bank’s restructuring plan, the depositors are completely safe… Continue Reading

EMI Moratorium: Should You Opt?

22-May Update — RBI has extended EMI moratorium on all term loans by another 3 months till 31-August-2020. Following RBI’s Covid-19 regulatory package, your bank may have provided you an option to not pay loan EMIs or credit card payment until May 31, 2020. As a borrower, should you opt for this? In this post, let’s… Continue Reading