Whenever RBI reviews Monetary Policy, some financial jargon's hijack the headlines of all the business newspapers and TV channels. Recently, the top headline on all Business Channels was that RBI cuts CRR by 25 bps i.e. 0.25%. 1 bps equals to 0.01%. As a layman, many people don’t even understand what it means and what will be its impact on home loan borrower. The newspapers and TV channels don't take the pain to explain the exact impact. A very generic conclusion is that your loan interest rate will come down. It may or may not be true. What is CRR or Cash Reserve Ratio? In layman terms, ... Read More
LED Vs LCD – LG Vs Samsung Vs Sony – Selecting the Best
While buying a new age TV, the biggest dilemma faced by a customer is to select between LCD Vs LED TV. In big cities, you will find only LED TV's. LCD TV is now available only in small cities and towns. On e-commerce websites, you may find both :). I will explain the reason for same later in the post. I also faced this dilemma and did a lot of research on this topic. I could not find much information from a layman perspective. There are loads of Technical Jargon to differentiate 2 technologies. I thought of presenting the findings in a simplified manner so that layman can understand the same. ... Read More
EMI Calculator or Amortization Schedule Calculator for Loans
When i took Home Loan, one of the problems that i faced was to find a right EMI Calculator. The EMI Calculator available on the web are not compatible with Home Loans. There is no option to change Interest rate, EMI or add pre-payment amount during home loan tenure. With the introduction of Marginal Cost of Funds based Lending Rate, the interest rates will become more dynamic. In short, interest rates will change more frequently. As a borrower, i find it difficult to check the financial impact of any change in Home Loan. One of the most common queries that i receive is on the impact of the ... Read More
HDFC Ltd Home Loan Experience – A Learning for Borrowers
Today i will share my worst experience till date i.e. availing Home Loan from HDFC Ltd. As i mentioned in my previous post that HDFC Ltd. and HDFC Bank are 2 different listed entities. Many potential borrowers fall into this trap considering both are same. After Pre Home Loan Review i finalized HDFC Ltd based on good experience with HDFC Bank. After processing fee was en-cashed, i came to know that both are different. It was too late. HDFC Ltd is largest and oldest lender. My personal philosophy is to always go with Market Leader and you will not face any problem. Unfortunately, this time, i ... Read More
Pre Home Loan Review of HDFC, ICICI, LIC, SBI and AXIS
Pre Home Loan Review is quite a tricky exercise. You have to judge and decide home loan provider based on a couple of pre home loan interactions. The problem is that you cannot apply with multiple home loan providers. For simplicity purpose, i will address home loan providers including HFC's as Banks only. In my post, How i am responsible for my low CIBIL Score i shared if you apply with multiple banks then it will impact your CIBIL Score. With this context, Pre Home Loan Review becomes more critical. When i availed home loan, i did this exercise of Pre Home Loan Review with top 5 lenders ... Read More
Fair Value of Property – Pay the Right Price
Whenever we plan to buy a property, The biggest dilemma for a buyer is what is the Fair Value of Property? It is because of fear of paying more than the market price. There is no straight forward answer to resolve this dilemma. In fact, sometimes people postpone purchase decisions in anticipation of price correction. In other words, they wait for the fair value of property. I am tracking real estate sector of key markets from last 6 years but i have never seen instances of sharp price correction. In last few years, prices have softened and corrected by 10%-15%. I do agree that there can be ... Read More