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
Are you wary of buying an under-construction property? While under-construction properties are cheaper and offer greater potential for capital appreciation, such properties also come with an element of uncertainty. What if the builder fails to deliver the property on time? Or from what many buyers across the country have faced, the builder fails to deliver… Continue Reading
A Loan against Property can take two forms — A Term Loan or an Overdraft Facility. What Is the Difference? In a term loan, the entire amount will be disbursed upfront. You will pay EMIs on the loan for the duration of the loan. You will have to pay interest on the disbursed amount even… Continue Reading
All the banks linked the new retail floating rate loans to an external benchmark from October 1, 2019. In my opinion, that makes the comparison between various home loan products easier. Most of the banks have chosen Repo rate for the external benchmark for home loans. Earlier, benchmark MCLR (Marginal cost of funds-based lending rate)… Continue Reading
SBI had introduced home loans linked to RBI Repo rates as the benchmark in July 2019. This was before the RBI mandated all fresh floating rate loans to retail borrowers from October 1, 2019 to be linked to an external benchmark. SBI had used Repo rate linked lending rate (RLLR) as the benchmark. RLLR was… Continue Reading
The Reserve Bank of India has cut Repo rate by 110 basis points since the beginning of the year (2019). However, the banks have reduced their weighted average lending rates by 29 bps. If you have a floating rate home loan, then this news is not very comforting. This is a very common grievance for… Continue Reading
In December 2018, RBI had proposed that all fresh floating rate loans from April 1, 2019 must be linked to an external benchmark. The implementation has since been deferred. It is now up to the banks to come up with products linked to an external benchmark. Citibank had launched a home loan product in the… Continue Reading
A gold loan is a quick way to raise funds in times of need. In an earlier post, we had discussed gold loan products from the State Bank of India. With such gold loan products, you can take a loan against physical gold and jewellery. However, purchasing physical gold and gold jewellery is not the only… Continue Reading
Recently, I checked into a bicycle store to purchase a bicycle for my daughter. I noticed there were a few bikes for adults whose cost were as high as Rs. 1.8 lacs. To be honest, I didn’t know that bicycles could be that expensive. I believe those were models for racers, endurance cyclers or those… Continue Reading
A gold loan is a quick way to raise funds for short to medium term needs. You can pledge your gold jewellery with a bank or a gold loan company to get a short-term loan. When you repay the loan, you get your jewellery back. Since the gold loan is secured (backed by your jewellery), you… Continue Reading