FAQs

In this section you will find answers to frequently asked questions on life, health, travel and home insurance, savings, loans, mortgages and personal finance.

Loans and Cards (3)

Key considerations that one should keep in mind and evaluate when choosing which personal loan to opt for are:

  • Interest rates: One should consider the rate of interest various banks are charging on the amount borrowed. The interest rates will have an impact on the Equated Monthly Instalments (EMI) that you will need to pay towards repaying the loan and the associated interest rates. The easiest way to compare these loans would be to compare the EMI’s that you need to pay for a certain amount for a given tenure across banks.
  • Other charges: There are various other charges like bank charges, service charges, processing fee, etc, which are an equally important factors to be kept in mind and compared.
  • Tenure: The tenure for which a bank is lending you the money for can also be a consideration. If a bank is offering loans for only lower tenures, the EMIs might be higher than what you can pay. On the other hand, the lesser the tenure, the lower is the interest amount that you will be paying towards servicing the loan.
  • Turnaround time: The time taken by banks to process your loan. One should consider the urgency of the situation, evaluate various options given by different banks and then choose from where to borrow.

Pre-payment fee: Some loans have a penalty towards early prepayment of a loan. This is an important consideration since one may want to prepay a loan if your cash position becomes favourable and surplus money is available. Since the cost of personal loans are generally higher than other secured loans or rates available on fixed deposits etc., one should generally prepay these loans as soon as one is able. This is especially important if the residual period for the loan is long, say over 1-2 years.

Category: Personal Loans

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Personal loans are usually granted for a period of 2 to 5 years, though a few banks may offer tenures going up to 7 years.

Category: Personal Loans

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Keeping in mind how much you can afford to pay each month, try and keep the duration of the loan as low as possible. With a lower duration of loan, the EMI may be higher but what you would pay as interest over the term of your loan would be substantially lower. If you can’t afford the higher EMI and have to necessarily take a higher duration loan, it would help to try and manage your savings in a way that help you pre-pay the loan with intermediate payments in the initial years itself so as to reduce your overall interest burden

Category: Home Loans

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Home Loans (1)

Keeping in mind how much you can afford to pay each month, try and keep the duration of the loan as low as possible. With a lower duration of loan, the EMI may be higher but what you would pay as interest over the term of your loan would be substantially lower. If you can’t afford the higher EMI and have to necessarily take a higher duration loan, it would help to try and manage your savings in a way that help you pre-pay the loan with intermediate payments in the initial years itself so as to reduce your overall interest burden

Category: Home Loans

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Personal Loans (2)

Key considerations that one should keep in mind and evaluate when choosing which personal loan to opt for are:

  • Interest rates: One should consider the rate of interest various banks are charging on the amount borrowed. The interest rates will have an impact on the Equated Monthly Instalments (EMI) that you will need to pay towards repaying the loan and the associated interest rates. The easiest way to compare these loans would be to compare the EMI’s that you need to pay for a certain amount for a given tenure across banks.
  • Other charges: There are various other charges like bank charges, service charges, processing fee, etc, which are an equally important factors to be kept in mind and compared.
  • Tenure: The tenure for which a bank is lending you the money for can also be a consideration. If a bank is offering loans for only lower tenures, the EMIs might be higher than what you can pay. On the other hand, the lesser the tenure, the lower is the interest amount that you will be paying towards servicing the loan.
  • Turnaround time: The time taken by banks to process your loan. One should consider the urgency of the situation, evaluate various options given by different banks and then choose from where to borrow.

Pre-payment fee: Some loans have a penalty towards early prepayment of a loan. This is an important consideration since one may want to prepay a loan if your cash position becomes favourable and surplus money is available. Since the cost of personal loans are generally higher than other secured loans or rates available on fixed deposits etc., one should generally prepay these loans as soon as one is able. This is especially important if the residual period for the loan is long, say over 1-2 years.

Category: Personal Loans

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Personal loans are usually granted for a period of 2 to 5 years, though a few banks may offer tenures going up to 7 years.

Category: Personal Loans

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

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