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!
Banks have been in the forefront of Indian growth story. In the last few quarters though, increased inflation and Government measures to rein it, has affected the Banks. The interest rate has been raised by the Government many times in 2010. Increasing interest rate impacts bank’s businesses directly.
1987 marked a very special year for both Maruti as well as our nation with the export of a first lot of 500 cars to Hungary. One can almost feel the jubilation that the workers of MUL must have felt in gaining acceptance in Europe, the very Mecca of automotive engineering. 1992 was a year… Read More »
Fixing a budget will give you more clarity on which models to choose. It will also act as a locus which defines the perimeter of flexibility that you can afford in case your needs are not satisfied by a lower end model. A budget is the best way to shortlist a segment as most of… Read More »
The Reserve Bank of India (RBI) a few days ago extended the deadline to another six months (till June 30 2011) to adopt the new method for computing base rate. Base rate is not very different from the PLR. However, it will be reflective of the current rates as RBI requires that the base rate… Read More »
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 »
Normally, banks only give 85%-90% of the total cost of the vehicle. The rest will need to be provided upfront as a down payment. Always opt for a higher down payment and look to save on total interest costs. When you book the car, you need to pay a booking amount, which can range anywhere… 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 »