When there is an increase in the Prime Lending Rate (PLR), the interest rate on your loan will also go up, and your repayment would be higher. However, in most cases, financial institutions would allow you to pay the fixed amount of monthly repayment (EMI) throughout the loan tenure and would make any adjustment caused… Read More »
For most middle and upper-middle class families, a house is the most expensive asset owned by them. The asset also has emotional value and therefore families should perform meticulous research before buying the same. The following is a set of must-dos before buying a house.
The Income Tax Act treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other. HRA is dealt with in section 10(13A) Rule 2A while home loans are entitled for tax benefits under section 80C (tax benefit on principal repayment) and Section 24 (tax benefit on interest payment)… Read More »
Prepayment implies closing the loan earlier than planned. Most banks impose a penalty on prepayment. The prepayment can be charged in two cases. One, when you prepay with your own sources. In this case, you issue a cheque from your account. Second, you refinance the loan from another bank.
Employment history definitely matters! Your employment track record is also a yardstick to measure your loan repayment ability, apart from your company’s credentials. 3 years is how long you are expected to stay in your current company to be eligible for a loan with certain PSU banks!
Today banks are keen in identifying new business niches and more customised services to handle the stiff market competitions. On the other hand inflation is continuing to haunt the policy makers. In this scenario, RBI is expected to continue putting pressures on banks to increase the interest rates further in the coming year, with the… Read More »
Vipul needed a quick fix. Fortunately for him, he was in a hurry to invest also and had started young. Things like compounding interest, safe investment options like FDs and some shares that did extremely well, had stocked his treasury quite generously over time. Had he sat back and given a careful thought to his… Read More »
The clause known as the Force Majeure Clause states that “Provided further that from time to time, the bank may in its sole discretion alter the rate of interest suitably and prospectively on account of change in the internal policies or if unforeseen or extraordinary changes in the money market conditions take place during the… Read More »
What do the former customers of the lender have to say about the quality of service offered by the lender? Was the lender responsive to the customer requirements? Check the feedback given by the users on the customer review websites. It will give you an idea of what to expect from the lender, so that… Read More »
Equity mutual funds make a great investment. However, given the volatile nature of the market and the loss experienced by investors in the past months, one should keep expectations realistic and be willing to wait it out for at least 10-15 years to see a good return from equities.