This is generally in the case of home loan. Let us understand as to how it functions. If you have borrowed a home loan, you will begin to pay your Equated Monthly Installments (EMIs) right after the entire loan amount has been disbursed to you by the bank. The amount of your EMIs depends on… Read More »
Myth 1: Interest rate hikes will lead to higher EMIs Most borrowers are in the belief that with the rise in interest rates, they will be forced to pay out higher EMIs. This is not true. That is just one such option, where you can increase your loan tenor keeping the EMI at the same… Read More »
In 2004, Chennai-based Dr. Raghunath, took a home loan of `7.28 lakh from a private sector bank at 7.5%, even as other nationalized banks were offering higher rates. Today, the same bank is charging him 14.75%. More importantly, the loan that should have been repaid by the time he retires eight years from now has… Read More »
National Housing Bank (NHB) has increased provisions on standard assets from 0.1% to 0.4% on retail home loans given by housing finance companies. The reasons for NHBs move are significant. In the light of increasing inflationary pressure leading to high property prices and increase in interest rates, the demand of borrowers for a home loan… Read More »
In its new policy news, RBI has announced that there is going to be a further increase in the Home loans and Auto loans by 25 basis points. “The RBI has sought to maintain an interest rate environment that moderates inflation and checks inflationary expectations,” the Finance Ministry said in a statement, adding that this… Read More »
When there is a hike in the interest rates, there are certain quick steps you need to take. Negotiate the rate : When Remit Malhotra’s bank raised the interest rate on his loan from 9% to 12%, he wanted to refinance his loan. Rather than lose him to another bank, his bank offered to lower… Read More »
Over the last two years, interest on home loans has gone up by at least 200 basis points (100 basis points =1%), from about 8% to above 10%, even for those borrowers who have a good credit standing. When we calculate the approximate loan tenor after such an increase, the tenors can even go beyond… Read More »
Yes, this is latest news from the education loan section from banks across India. The reason for this decision are many, but valid. Banks do not ask for any collateral security for education loans under Rs4Lakh. And with the increase in the number of bad debts cases within this loan range has raised concerns with… Read More »
With the rising credit crunch, and inflation looming in the air, most students are unable to find their way through the placements that colleges’ offer. Even in the great B-Schools of the country, the placement structure seems to be very gloomy. Most Graduates when they finally, get through admissions in their sought after postgraduate universities,… Read More »
Many times we always get lured by the lucrative discounts and schemes that banks have to offer for opting for a personal or credit card. But very little do we want to analyze whether we actually need such debt traps or not. Sathish walked into a credit counselling Centre with a huge burden of credit… Read More »