Recently i was reading an article on Life's 15 most stressful events. Quite surprisingly "Divorce" was at no 2 in the list after "Death of a Spouse". Almost 10% queries posted on my blog are related to financial implications of a Divorce. I will not term it as financial implications/mistakes rather these are financial blunders. Divorce is a personal matter between the couple. Based on my interaction i can conclude that emotions like revenge, anger, and resentment take over financial wisdom. The financial implications of a divorce take a backseat. As a result, both husband and wife incur a ... Read More
Home Loan Tax Benefits – A Mirage or Reality
Home Loan Tax Benefits is one of the key reasons to avail home loan. In other words, it is a motivational factor to buy a property on home loan. In my opinion, it is more of a perception that may or may not be true always. This perception is so deep rooted in our minds that it has become a sort of universal truth. Whenever we decide to purchase a property through Home Loan, our friends and relatives remind us about the attached Home Loan Tax Benefits. The million dollar question is Have you did financial calculations on Home Loan Tax Benefits? Based on my experience i can say that in 99.99% ... Read More
Personal Loan – 5 Important Points to Avoid Rejection by Bank
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
Financial Distress – 5 Early Signs
Financial Distress, In layman terms, is the situation in which an individual may find it difficult to manage his/her personal finances. Financial Distress is not necessary linked only to borrowers. Even a debt free person can be in a Financial Distress. Another way to explain is when your expenses exceed your income then it implies that you are in a Financial Distress. Here expenses mean monthly outflow. It is an undesirable situation for any individual or a family. In my opinion, Financial Distress is not sudden phenomena. It gives timely and necessary warning in advance to fix the financial ... 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