If you are moving to one of the bigger cities such as Mumbai and Bengaluru, finding a cheap accommodation is not easy. Rentals can be quite high too. However, as a tenant, paying high rent is not the only problem. You need to put up a big security deposit with the landlord/owner too. In Mumbai,… Continue Reading
When we are looking for home loans, we tend to go with the loan product that charges the lowest rate of interest. What if the bank were to charge you a negative interest rate? Essentially, the bank pays you to take a loan from them. Not possible? Well, a Danish Bank has just done that.… Continue Reading
That’s right. You just need to think of the bank as an investor. For the bank, a loan is an investment that it earns interest (return) on. You take a loan of Rs 50 lacs at 9% p.a. for 20 years. It is a bullet repayment loan. You pay the entire amount at the end… Continue Reading
If you want to repay your home loan quickly, the only way out is to make some prepayments on the home loan. Many use their annual bonuses to make big prepayments on their home loans. Not surprising that average home loan tenure in India is about 7-8 years. What if you can’t manage very big… Continue Reading
When is a good time to prepay or part prepay a home loan? When you think about the above question, the next question that comes to mind is how do you define a “good time”. One of the ways to assess this could be the number of EMIs saved due to your prepayment. Let’s understand this with… Continue Reading
Many Indian banks offers loans to NRIs (Non-resident Indians). However, since the rate of interest for loans is higher in India as compared to personal loans abroad, it is tempting to take a personal loan abroad instead of taking a loan in India. In fact, I know borrowers who have taken a personal loan abroad to… Continue Reading
While browsing for various home loan products, you would have come across terms, Monthly Reducing Balance and Daily Reducing Balance. Home loan products from many banks including State Bank of India work on daily reducing balance method while the home loan products from some banks work on monthly reducing balance methods. What Is the Difference?… Continue Reading
You may be really excited to have negotiated a good interest rate for your loan with a bank. However, is the interest rate the only aspect in determining your cost of loan? What about the ancillary charges? Such charges also affect the cost of your loan, don’t they? Flat Interest Rate Loans vs Reducing Balance… Continue Reading
These days, it is not uncommon to find at least one e-mail per day about instant or pre-approved personal loan in your mailbox. The creative teams at banks can actually make you feel that the offer has specifically been customized for you. Do not fall for the attractive advertisement. You must avoid personal loans to… Continue Reading
Those, who have been on the wrong side of loan agreements, would easily understand a small clause or even a word can create a lot of difference. When I say wrong side of the loan agreements, I mean the exact terms and conditions of the loan were different from what you thought when you took… Continue Reading