The interest rate for home loans has been going through the roof for the last couple of quarters. At the same time, CPI inflation is stubbornly at double digit. As a result, people have postponed their decision to buy a home or invest in real estate. In such a scenario, banks are looking for ways to become innovative with their loan offerings with all the more reason to do so, as we are in the thick of the festive season!

In this article, we will discuss the discount schemes that are on offer.

Dual rate scheme

Dual rate scheme fixes the interest rate for first few years and then changes it to the prevailing interest rate. The prime example of this type of loan offered by banks is ICICI bank. ICICI bank is giving home loans with interest rate fixed for 1^st year and 2^nd year. After 2^nd year, the interest rate charged will follow the prevailing interest rate. The prevailing interest rate will be the base rate of ICICI bank plus the premium. The premium can be anywhere between 0.5% and

To meet some of your goals like buying a car or building a home might require additional financial help in the form of a loan from a bank. In the current scenario of rising interest rates it is vital that you understand important elements in the loan taking process, helping you make an informed decision when it comes to balancing your monthly budget and your loan repayment.

What is an EMI?

An equated monthly installment (EMI) is the amount of money that is paid back to the lender on a monthly basis. It is essentially made up of two parts, the principal amount and the interest on the principal amount divided across each month in the loan tenure. The EMI is always paid up to the bank or lender on a fixed date each month until the total amount due is paid up during the tenure.

Now, you might assume that the equal parts of the principal and interest is repaid to the financial institution every month, however this not the case. During the initial years the interest component repaid is

In uncertain times everyone takes comfort with their best friends. Similar is the case with the investor community. Whenever market volatility increases, inflation raises its head, interest rates are rising and there is fear of economic down turn, focus of investors shift from capital appreciation to capital preservation. This is the time investors remember the old and trusted buddy "Debt Investment", whom they normally forget in good times. In this article we will try to understand why this instrument acts as a savior and find out the reason why it takes the back seat when the investor community is in a positive mood. We will also try to figure out when the right time to invest in debt instruments is and what are the options available with us.

Debt Instrument

A debt instrument is an asset that pays fixed returns over time. It has a fixed maturity period after that the investors can liquidate the asset and gets the principal with the remaining interest dues.

Debts are low