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
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
There are many apps that are ready to provide you quick loans. The experience is seamless. Everything gets done on the app/website. How does everything work? Do these apps lend on their own or they are acting as agents? If any website or a mobile application is offering you a loan, one of the following… Continue Reading
RBI has reduced the repo rate from 4.4 percent to 4.0 per annum. If your home loan or any other loan is linked to the Repo rate, this is good news for you. RBI Repo rate has moved down sharply in the last 10-12 months. Repo Rate Reduction Date 6.25% to 6% April 4, 2019… Continue Reading
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
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
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
While all of us are staying at home amidst Covid 19 scare, all the expenses including the loan EMIs must still be paid. The salaried employees shouldn’t have much to worry, at least in the very short term since they will continue to get their salaries. However, a certain segment of self-employed, professionals, shopkeepers and… Continue Reading
My current credit card expired recently and I was issued a fresh card by the bank. An interesting thing about the new card was the it permitted contactless transactions. Call me paranoid but I was not very comfortable with the contactless feature. I asked the bank to switch off the feature but the bank declined.… Continue Reading
Online frauds are on the rise. Almost on a weekly basis, I hear new ways of customers being duped of their hard-earned money. Of late, the UPI frauds have been on the rise, where the fraudsters call/text you on one pretext or the other. You eventually end up installing malicious software on your phone or… Continue Reading