Students and families must stress test repayment capacity based on Indian salary standards.
LAMF allows investors to access liquidity while staying invested.
'First-time applicants may witness longer approval times or higher rejection rates and requests for more documentation.'
Understand your travel insurance policy before travelling abroad this summer. This article outlines what travel insurance covers, including trip cancellations, missed connections, and medical emergencies, and what it excludes, such as war-related disruptions and pre-existing conditions.
The RBI has flagged concerns over rising volatility in gold prices and advised lenders to exercise caution in the gold loan segment.
Borrowers should consider switching from an MCLR-linked to a repo rate-linked loan.
Customers must sign the agreement promptly to avoid disruptions. They should read it thoroughly and understand their rights and obligations.
'The rise in SIP contributions has created a pool of long-term MF assets that can be pledged for loans.'
'Choose an FD tenure that provides a balance between returns and the horizon for which you can invest.'
'Some part could be used for consumption purposes, and the rest could be used to meet important financial goals.' 'The split can be 30:70 to 50:50, depending on one's situation.'
'Credit card debt comes with high interest cost and stringent penalties.' 'If you do not repay on time, the costs balloon.'
FDs are not advisable for long-term wealth creation as their post-inflation, post-tax returns are not very attractive.
Experts say you should be certain of living in a city and locality for a long time before purchasing a home.
Make minimum payments on all debts, then use extra funds to tackle the smallest debt first.
'If the borrower can't repay the loan due to lack of income or losses from speculative activities, they risk defaulting on it.' 'This could lead to the bank seizing the property.'
If the cashless request is denied, the entire cost may need to be paid for planned treatments.
'If the portfolio growth rate is higher, take this loan. If it is lower, liquidate your investments.'
'Save the entire chain of e-mail exchanges so that you have documented evidence to show you informed the bank about the issue.'
Nominations and addresses are of paramount importance in bank accounts, insurance policies, mutual funds, etc.
'Lack of self-control over spending leads to a credit card debt trap.' 'People think they have money and spend using a credit card, but when it's time to pay, they realise they don't have the money.'
'A mid-year review makes the end-of-year financial review manageable and less stressful.'
Maintain a proper record of documents that can act as proof of the cost of acquisition of the property, cost of improvements made to the property, expenses related to transfer of the property (like brokerage and registration charges). These will come in handy in case of a dispute with the taxman.
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Customers who possess gold jewellery but are either being denied a personal loan or are being asked for a high interest rate due to their poor credit profile may consider a gold loan.
If you fail to make the lump sum deposit before April 5, do so at least before the 5th of the next month (May). That way you will only lose out on the interest for April.
'The barbell strategy says that the best way to strike a balance between risk and reward is to invest at the extremes of the risk spectrum.'
Ultimately, the choice between no-cost EMI and BNPL depends on an individual's financial situation, preferences, and ability to manage repayments responsibly.
Begin the year-end review by assessing whether your portfolios are on track to achieve your life goals.
'Try to obtain a secured personal loan or credit card by offering some collateral, such as a fixed deposit or gold.' 'Not only will this improve your eligibility, but the lender may even offer a lower interest rate.'
'Look not just at the interest rate but also the processing fee.'
While the RBI's guidelines aim to streamline the loan closure process, borrowers must remain proactive.
For women, it is important to build an emergency fund and a financial independence fund independent of the couple's joint goals and plans.
Keep track of your foreign remittances to avoid giving incorrect declarations as these could be held against you.
Be wary of co-operative banks which have historically been most vulnerable.
Instead of only focusing on the tenure for which the best interest rate is available, investors should also focus on their own investment horizon.
While most borrowers calculate the gain they stand to make from switching to a lower interest rate, they often fail to take into account all the costs.
'Banks will continue to increase FD rates to attract more deposits and meet the increasing demand for credit.'
The advantage of leasing is that you can get a new car every few years. You can also get to drive a high-end car without paying its entire price.
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
If you don't have a specific goal, but want intermittent liquidity, then ladder your FDs, that is, invest in FDs of varying maturities, such as one, two, three, five or even 10 years. Laddering ensures FDs mature at regular intervals.
