• Buying a house is the most important decision a common man makes in his life and with the coming of low-cost housing he can reach his goal with much more ease. But as it's the most valuable buy of your life you need to be very careful with every step.

    Affordable housing has become the new mantra in Indian real estate where builders are luring investors to buy houses which not only come under their budget but also fetch good returns. However, as a consumer you need to be aware of the fine print before you take the plunge as many consumers are very easily fooled by fancy promotional campaigns and hidden charges.

    After recession builders have been reeling under pressure of a credit crunch, thus many projects have either been delayed or some compromises have been made with what was promised and later what was delivered as the final product.

    So it is very important to do your homework and a proper research before singling out a specific house. Pick 5 to 6 projects that may suit your

    Read More »from Getting a stellar first home deal? Understand what you are paying for!
  • How secure is your credit card?

    Credit cards have become an integral part of our life, but concerns about its security and vulnerability is an ongoing issue. Credit card frauds are rising at an alarming rate. Card associations and banks on the other hand have been trying hard to enhance card security features to minimize frauds and misuses.

    Here is a look at the security features introduced by card issuers and banks in the current scenario.

    Verified by Visa/Mastercard SecureCode

    A significant upgrade in credit card security features came with the introduction of 'Verified by Visa/MasterCard Secure Code programme' or second factor authentication. It addresses the credit and debit card transactions over internet.

    Earlier, to do an online transaction, the only information needed was your credit card number, expiry date and the CVV number printed on the back of the card. It is easy to obtain this information as they are exposed when you handover your card at hotels, shops or petrol stations. Fraudsters can use this data

    Read More »from How secure is your credit card?
  • Your home loan can help you buy more!

    Your existing home loan provider can be your best friend in times of your future financial needs. As they offered you a mortgage against your house, they can also help you with a quick loan against your house called a 'top-up loan' where you don't have to provide any additional collateral or paper work.

    Top up Loan Concept

    When Vishal Menon, Senior Manager of Reliance Communications, decided to buy a car, he wanted a car loan. He found that the loan started from 12% interest rate and so he turned to his home loan provider for a top up loan. He had about nine years left in his home loan. The bank offered him a top-up loan of Rs 4 L at a floating rate of 9.5%. Thus he was able to cut down an interest rate of 2.5%.

    Once you prove your bank that you can repay the home loan, you can ask them to get it topped up. It can be used as a personal loan to finance anything from your interior decoration or child's education to daughter's marriage. The top-up is treated as a second loan and is

    Read More »from Your home loan can help you buy more!
  • Who is a co-applicant?

    When taking a housing loan, there may come a situation when our eligibility in terms of quantum of funding or tenure of loan could be lesser than what we want. Is that the end of the road? No, the way out is in bringing in a co-applicant….

    Who is a co- applicant?

    A Co-applicant refers to a person who applies along with the borrower for a loan. This is done so that the income of the co-applicant can be used to supplement the borrower's income and increase his/her eligibility.

    Can anyone be a co-applicant?

    No, Banks and housing finance companies (HFCs) have allowed only a few specified relations to be co-applicants. Although, it must be note that it is not compulsion or legal requirement to have a co-applicant. Banks also do not allow a minor to be a co-applicant.

    We also need to note that any co-owner has to compulsorily be a co-applicant to the loan.

    Who can be a co-applicant to my home loan?

    Most of the banks in our country allow a few specified relations to be co-applicants.

    Read More »from Who is a co-applicant?
  • Understanding innovative home loans!

    Edward de bono- The guru of creative thinking and an exponent of innovation must be very proud of the managers who design financial products for us, especially the brains who keep throwing innovative home loans at us. Equally innovative are the marketing/advertising teams who promote these products to look so tempting for the prospective home loan buyer.

    Some innovations seen in the past few years

    1. Daily balance interest calculation - A daily version of prepayment
    2. Teaser loan - Low fixed interest for first 2-3 years and then floating rate
    3. Interest pay back home loans - a percentage of your interest for specific EMIs is refunded in cash to you

    Innovations we could see in the future

    a) Interest only repayment home loan - you pay only the interest component for a stipulated period.

    b) Equity release home loan - get funded for gaining equity on your house. (Reverse mortgage loan concept)

    Innovation, though a great thing, if interpreted wrongly could be disastrous for the common

    Read More »from Understanding innovative home loans!

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