A long term loan like a home loan is a debt that is part of your budget every month. If you invest too much into it, there might not be adequate funds to manage a huge list of other expenses that will tend to accumulate with time. For eg. You need to make allowances for… Read More »
Gold loans typically are for the duration of one year, and can be foreclosed at any time. Banks charge an interest of 10% to 12% on gold loans, and your liability is to pay the interest on a monthly or quarterly basis-no EMIs to pay or worry about. The jewellery is released by the bank… 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 »
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 »
Evaluate all loan offers. The first condition for loan offer selection is the total money outflow that the loan will cost. The second factor is the EMI. A loan offer with a lower EMI and a longer tenure may seem attractive, as it could be easy on your purse strings, however not all such loans… Read More »
This is not specifically a category of loan but more a loan for which an exhaustive set of documents are required. There are several conditions that need to be fulfilled while taking a loan. One of these is the kind of documentation you have to complete or submit to the bank before the loan is… Read More »
A bank cannot issue a notice to the defaulter until the account of the borrower becomes a non-performing asset, which takes 90 days. To enable recovery of funds lent Banks need to invoke SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests) Act. This again has a notice period of 60 days.
Prime lending Rate is the benchmark interest rate on the basis of which financial institutions decide the interest rates on the various loan products. For example, a bank might say a loan interest rate will always be 0.5% above the PLR. So this means if the PLR increases or decreases by a certain amount, the… Read More »
The fiscal 2009-10 saw a dull performance by the personal loan segment, according to the macroeconomic report from the RBI. The rivals of personal loans, viz education loan and home loans however did not display such poor performance. While personal loans showed a 4.7% increase last fiscal as against to 6.6% growth last year, its… Read More »
During the height of recession, banks had stopped offering personal loans. However they have started offering these loans again, but have become very strict with offering unsecured loans.