Recently a reader posted this question to me: “Should I use funds from my mutual funds corpus to prepay home loan?” If you are also considering mutual fund withdrawals to prepay your home loan, I think article will help. It’s an intuitive urge, and at some stage of investing almost all investors face this dilemma….
The purpose of this blog is to emphasize the necessity of leading a loan-free life. There are moments in life when availing home loan becomes unavoidable. But, is it good to repay the home loan early? In this article, we will read why prepayment of loans cannot be ignored. For quick answers, read the FAQs….
If you are in a dilemma about whether to invest or prepay the home loan using your spare cash, then you are not alone. This dilemma happens to a majority of people. When people climb-up the income ladder, they begin to generate more free cash. If the focus is on improving one’s financial health, wise…
When you’ll Google the term “become debt free“, the search result will also display a query: “is it good to be debt free?“ This dichotomy related to debt has remained since ages. Why? For Banks, NBFC’s, government, and employers – loan (debt) strapped, EMI paying people are an asset. Hence they publicise debt as a…
There was a time in my life where I’d to spend 50% of my ‘take home salary’ on EMI for home loan. Though it was a conscious decision, but I had to live with it for almost 18 months. It was a debt trap for me. In the next phase, I paid back almost 35%…
Reverse mortgage is also a ‘home based’ loan. But it is different from our typical home loan. The main difference is that, reverse mortgage is available only for elderly people, above 60 years of age. In working, the reverse mortgage is just the opposite of home loan. Hence the word “Reverse” is used to name…
Why to bother and calculate personal loan eligibility? Is it worth spending time on it? Banks anyways does it for us, right? Yes, but bank’s intervention happens often very late. By the time bank’s disclose our loan eligibility, we are almost on the verge of loan disbursement. Where is ‘loan planning‘ here? As an individual,…
Let me give you the answer straight away. There is no way one can build or improve credit score without debt. Though there is a small compromise possible. But I will disclose it at the end of this article. But before that allow me to share my concept about “credit score” first. I know, you started to…
SBI provides home loan at most attractive interest rates. Yuvraj wanted his home long transfer to SBI. He did some study and here are his findings. Yuvraj carries home loan of Axis Bank. He was paying interest at rate of 10.75% on his home Loan. He saw that State Bank of India (SBI) is offering…
Prepayment of loan can directly lowers the principal amount. If one keeps the tenure unaltered, lowering of principal amount will directly lower the EMI. This is the way one can make a prepayment and save money. In order to understand how much EMI can be reduced by prepayment, I am providing here an excel based…
Generally people apply for personal loan when they need spare cash. But personal loans dose not come cheap. So it is better that one takes wise moves while availing personal loans. So, what should be the step 1? People opt for personal loans rather casually. But this is one debt that people must undertake after…
