A Loan is another name of consumerism. An easy finance or loan is both good and bad for the economy. Recently, you must have read news articles on the Gross NPA's of the banks. Though no one is willing to state the obvious, that it is a direct fall out of easy loans in past. The declining interest rates are good for an economy but to maintain the quality of a mortgage is a big challenge. It is another threat to the economy. It is called Easy Money. Though we can say that without consumption, the economy cannot grow and I do agree. But in this whole debate we miss a very crucial point that it's ... Read More
What is the ideal Home Loan Tenure?
Home Loan Tenure is one of the most crucial decision making factor during Home Loan Process. Home Loan Tenure has a direct impact on your cost of borrowing. In turn, the cost of borrowing increases your overall cost of the property. I receive many queries on what should be the ideal Home Loan Tenure?. There is no standard answer to this query. As a borrower, you need to arrive at the optimal value which should be a fine/comfortable balance between your current financial condition and your Home Loan requirement. The home loan providers i.e. banks/HFC's push for longer home loan tenure as it is ... Read More
Bundling of Financial Products is ILLEGAL
"Bundling of Financial Products is ILLEGAL", one of my clients sigh a relief after listening to this. Financial Products are the lifeline for any investor or borrower. We all must have come across situations wherein banks or financial institutions bundled Financial Products. A customer/borrower is at the mercy of a Bank or Financial institution for financial services/products. Now, you must be wondering that we have so many banks or financial institutions that we can shift to others. I agree, but the practice of Bundling of Financial Products is so widespread that it will not help. Home Loan ... Read More
Should i Invest or Prepay Loan?
Should i Invest or Prepay Loan? is the classic dilemma faced by the borrowers. This catch 22 situation arises when a borrower receives a lump sum amount. The most common sources are an annual bonus, the maturity of deposits, a gift from parents/relatives or inheritance. Normally i don't suggest to prepay loan especially Home Loan from any amount received through inheritance or gifts from parents / relatives. The only exception is if you have signed proper gift deed or family settlement agreement to safeguard your financial interests. If you prepay loan from gifted/inherited money then it may ... Read More
Tips to Increase Home Loan Eligibility Amount
Home Loan Eligibility Amount is a nail-biting suspense during the home loan process. From buyer's perspective, it's some secret recipe or a sort of exam whose outcome is eagerly awaited. There are multiple factors which impact the Home Loan Eligibility Amount. Through my posts, i keep highlighting these factors which directly or indirectly impact the Home Loan Eligibility Amount. CIBIL Score is one such factor which i have covered in detail through my posts on CIBIL Score. In this post, we will discuss some tricks and tips through which you can increase the Home Loan Eligibility Amount. Though ... Read More
How Financial Institutions Kill CIBIL Score?
CIBIL reporting by financial institutions is one of the most discussed topics on my website. I never suggest my clients to default on loans/credit card/overdraft. As i keep highlighting that any default may lead to a major impact on CIBIL Score of the borrower. To avoid credit default, financial institutions urgently need Credit Counselors. Even in the case of a credit default, defaulter should be punished and penalized which is logical and reasonable. Moreover, punishment should be as per existing rules and regulations. Through this post, I am not justifying the default on credit availed by ... Read More