The RBI has flagged concerns over rising volatility in gold prices and advised lenders to exercise caution in the gold loan segment.
'Do exhaustive research and then select the one that best fits your budget and requirements.'
'Some buyers get carried away by festival offers and purchase higher variants or larger vehicles than they truly need, which impacts running cost and long-term affordability.'
Use these loans to meet emergency needs, and not to fund holidays or luxury purchases.
'Revolving credit without full repayment causes interest to outpace repayment capacity, and leads to financial distress.'
Borrowers should consider switching from an MCLR-linked to a repo rate-linked loan.
One should avoid keeping excessive funds in one's savings account.
'LAP is suited for borrowers with a steady income, sound repayment discipline, and a clear repayment plan.'
'Choose an FD tenure that provides a balance between returns and the horizon for which you can invest.'
'If you are not prudent, you may exceed your budget, and if it happens too often, you may end up in debt.'
In addition to interest rates, review the fine print for penalties and repayment terms, and select a reputable lender to avoid harsh recovery practices.
While festive offers can reduce costs, borrowers should also consider the lender's transparency and service quality. Customers need to be mindful of their repayment capacity.
Only borrow an amount that can be repaid comfortably. The ratio of total EMI to take-home salary should not exceed 40 per cent.
FDs are not advisable for long-term wealth creation as their post-inflation, post-tax returns are not very attractive.
'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 portfolio growth rate is higher, take this loan. If it is lower, liquidate your investments.'
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.
Do not shop around for loans immediately after getting a secured credit card. Such loan enquiries can also pull down credit score, as they are treated as a sign of credit-hungry behaviour.
Enhancing your credit score is the key to improving loan eligibility and securing a favourable interest rate.
The third quarter (Q3) of 2023-24 (FY24) has proven to be pivotal, witnessing some startups turning profitable and others enhancing their performance as their businesses finally begin to deliver. Startups like Delhivery, Zomato, PolicyBazaar, Mamaearth, and Nykaa have either become profitable or improved their profit margins in Q3FY24. A renewed focus on profitability, supported by operational efficiencies, expense rein-in, and robust demand during the festival season, has empowered companies to strengthen their performance.
Longer-tenure FDs generally give higher returns. Nonetheless, going for a tenure higher than two to three years is not advisable.
'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.'
Debit card payments remained sluggish due to the surge in digital transactions after the pandemic, and the Unified Payments Interface (UPI) has emerged as the most popular mode of money transfer, particularly for small value transactions, according to RBI data. In July 2020, the total debit card spends stood at Rs 2.81 trillion, as compared to Rs 3.15 trillion in July 2023, reflecting a growth of 11.96 per cent. UPI spends have seen a whopping growth of 428 per cent, zooming from Rs 2.90 trillion to Rs 15.33 trillion during the same period, the data revealed.
'Building a credit history is a gradual process that requires at least 6-12 months of consistent credit activity.'
Personal loans and credit card loans provide quick access to money when it is urgently needed, but they also carry risks for borrowers.
Ultimately, the choice between no-cost EMI and BNPL depends on an individual's financial situation, preferences, and ability to manage repayments responsibly.
'Banks will continue to increase FD rates to attract more deposits and meet the increasing demand for credit.'
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.
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.
Improved credit profile may make you eligible to transfer your existing home loan to another lender at a much lower rate.
'If you wish to make a big-ticket purchase on EMI without having to pay additional charges, no-cost EMI would be the right choice for you.'
The Reserve Bank of India (RBI) announced new rules for credit cards, applicable from July 1. "These directions cover the general and conduct regulations relating to credit, debit and co-branded cards which shall be read along with prudential, payment and technology & cyber security related directions applicable to credit, debit and co-branded cards, as issued by the Reserve Bank," the circular by RBI said. Business Standard culled out key rules from the list, and asked financial experts for advice on them, along with the thumb rules one needs to follow while using credit cards.
PB Fintech, the parent of Policybazaar and Paisabazaar, has set a price band of Rs 940-950 apiece for its initial public offering (IPO), which will open on November 1 and close on November 3. The company may be valued at around Rs 44,000 crore, and looking to raise an amount of around Rs 5,826 crore. The IPO comprises a fresh issue of Rs 3,750 crore, along with an offer for sale (OFS) of Rs 1959.72 crore by existing promoters and shareholders.
If you pledge market-linked instruments and their value plummets, you will have to provide additional collateral, points out Sanjay Kumar Singh.
'FDs should hold your emergency funds, equivalent to around 6-12 times your monthly expenses.'
The Reserve Bank of India's (RBI) new rules for credit and debit cards came into effect from October 1. These include tokenisation, one-time password (OTP) for activation after 30 days, written permission for enhancement of credit limit, and greater clarity on interest calculation.
While investing in PPF, investors must remember to put in the money at the right time to maximise the return they earn from it.
To minimise hardship for legal heirs, home loan borrowers must purchase additional insurance cover while taking a home loan.
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