Personal Loan is availed by borrowers to meet the immediate financial requirement. It is an unsecured loan. You need not provide any collateral/mortgage to avail the personal loan. The only collateral is signed cheques submitted by the borrower. As it is an unsecured loan, therefore, the rate of interest is much higher at 16%. Now compare it with secured loans like Home Loan at 9.55%. To be very honest, you can avail personal loan only if you are a salaried individual. Second pre-condition of the banks is that you should be maintaining good financial relation with the bank. The loan amount is ... Read More
5 Points a Property Buyer should Never Tell a Seller or Broker
In my journey so far, i observed two types of property buyer. The first one are those who are an Honest, and the 2nd category is of Smart property buyer. Honesty is the best policy but not always. Here i am not saying that a property buyer should be dishonest. I am trying to say that as a property buyer you should reveal only that much what is required. On the other hand, honest property buyer reveals all their cards in the first show. It goes against the natural law of negotiations. In past, i shared a post on how to negotiate property deals. This post is a continuation of same. In this post, ... Read More
Credit History – How I am Responsible for My Low CIBIL Score
CIBIL Report is the bible of a credit history of an individual. Through my blog, i have published large no of posts on CIBIL Score. I try to cover all the practical aspects of Credit History. On the web, you may find large no of posts on theoretical aspects that does not have much relevance in my opinion. In my post, How financial institutions Kill CIBIL Score? i shared how financial institutions could kill your score. Not many borrowers are aware that sometimes they are also indirectly responsible for low CIBIL Score. I hope you have heard the word Self Destruction. It is self-inflicted acts ... Read More
CIBIL Score is not Affected by these 5 Factors
CIBIL Score is the most important score of your life. It is more imp than your graduation score :). There are a lot of misconceptions around CIBIL Score. The banks and financial institutions have created psychological fear among borrowers. Let me clarify that through this post, i am not advocating to default on payments. The objective of this post to clarify some misconceptions around CIBIL Score. As a good citizen, you should make all your payments on time. At the same time, you should not lose your sleep over misconceptions around CIBIL Score. As i keep mentioning that there is no proper ... Read More
Bank Loan Default – How to Manage it?
Gone are the days when borrowers went scot free after defaulting on Bank Loan. In the digital age, it is very easy for banks to locate bank loan defaulter. In particular cases, i have seen banks filing FIR if the defaulter is wilful defaulter with an intention to fraud and amount is huge. I am not scaring the readers but to give a realistic picture. The things will go bad from here on as there is an enormous pressure on banks to recover the dues and bring NPA's under control. The default on a bank loan is not an overnight phenomenon. A borrower receives initial signals of financial distress. ... Read More
Loan Default – How to avoid it?
Loan Default is not good for both the borrower and the bank. The loan default increases Bank NPA's and negatively impact the CIBIL Score of a borrower. The default can be intentional or unintentional. If Loan Default is intentional, then nothing much can be done in this regard. Unfortunately, banks treat both sets of defaulters with the same stick. As i mentioned in my some of the previous posts that concept of credit counseling is not common in India. Your loan manager is all in one who may or may not be in a position to guide you. In the case of Loan Default, a borrower is left in a lurch, ... Read More