Why No-Cost EMI Can’t Be for Longer Tenure?

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

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