Understanding “Loan To Value” in your home Loan

Posted by on Jan 26, 2011 in Family Finances | 0 comments

Rajeev lost his job recently and his immediate worry is home loan EMI of Rs.15,000. For a person with an annual salary of Rs.3.0 lakh, this is a huge burden. He is having sleepless nights. He has cut his household budget to minimum and savings have been reduced too. Where did Rajeev go wrong? Initially, when he approached banks for financing his house, he was offered 75% finance. He was not able...

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Good Loans Vs Bad Loans

Posted by on Nov 26, 2010 in Family Finances | 0 comments

There are many situations you face in your Lifetime where you have to borrow money from someone to satisfy your needs which could be purchasing of some assets or for personal expenses. Your Desires govern your needs and Loans help you to convert that need into demand. When you borrow from a Financial Institution, your purpose defines the type of Loan and your income defines your capability to...

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Base Rate system and it’s effect on lending rates

Posted by on Aug 16, 2010 in Banking | 0 comments

The banks have moved to a new base rate system. This is to make the lending rate more transparent. Also, the changes in lending rates are passed on to the client. Erstwhile Prime Lending Rate ( PLR) had been opaque and much of the lending were happening below this rate, in any case. Also, the changes in rates initiated by RBI were not being transmitted, which was a key concern for RBI, in it’s...

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