Blog about Financial Education, Advisory & Planning
The burning topic today in India is about bank NPAs, NPA recovery especially from businessmen who have defrauded the banking system of crores of rupees & fled the country. As we complete 10 years of the Lehman Crisis, it seems we have not learnt any lessons from it though we must ensure that such a …
I had purchased a property with a home loan sometime back. Currently I need some additional funds for additional expenses on the property. I have decided to take a top up home loan on my existing home loan. Top up home loans clearly outscore other loan options because they come with lower rates of interest …
A loan guarantor is someone who is legally liable to pay off the loan, in case the primary applicant is unable to do so. In addition, being a guarantor will not only make you liable to pay off the loan in case of a default, but your own borrowing capacity would reduce and your credit …
As a smart borrower make sure you are taking the loan for the right reasons. Don’t borrow just because the interest rate is attractive or you can claim tax benefits. Here are a few basic rules to keep in mind: Take on an EMI only if you can afford it: A smart borrower will never …
Owning your own house is every man’s dream. It is a necessity & nothing beats it if you can also save some taxes in the process. Buyers can claim income tax deduction on both the principal repayment & the interest payment under different sections of the IT Act. Tax Deduction on home loan Interest: (Section …
The Employees’ Provident Fund Organization (EPFO) recently relaxed its norms to allow subscribers to withdraw up to 90% of the total accumulated corpus for purchase of a home. But we must remember that EPF is long-term savings for retirement and it is not advisable to dig into the retirement funds unless and until there is …
EPF withdrawal for home purchase – Avoid if possibleRead More »
If you are planning to take a loan to purchase a house, a car or a high-priced consumer good one of the first things you should do is to check your credit score to know the chances of a loan being sanctioned or rejected by the lender. Credit score reflects one’s creditworthiness which depends on …
Now a days a credit card is an essential part of our daily living. They allow quick access to emergency credit, provide an interest-free period of 20–55 days and also help improve our credit score if used properly. In addition they also offer benefits like cash back, reward points, air miles etc. The problem starts …
Personal loan for repaying outstanding credit card debtRead More »
There has been a lot of action relating to NPA resolution, a contentious issue for some time now the latest being the Insolvency and Bankruptcy Code (IBC), an Act which helps troubled corporates, partnership firms and individuals in debt to re-organise and opt for insolvency resolution in a time-bound manner to maximize value of its …
Home loan rate for new borrowers after 1st April 2016, linked to 1 year MCLR have come down drastically in the last 1 year. But borrowers who are under the Base Rate (loan taken prior to 1st April 2016) regime having seen their interest rates fall by a significantly lower amount. They will benefit by …