Check these things before buying a credit card
Every time I visit the local supermarket/hypermarket to buy the monthly grocery supplies, there are a few credit card agents waiting at the exit who promptly approach me and check how much my bill was. And if it happens to be a reasonable sum, they are quick to offer an on the spot credit card with minimum documentation and a lot of offers – free shopping vouchers at the supermarket, low interest rate, free balance transfer , high credit limit etc. And, you don’t really need to put a lot of effort except sign the form and produce whatever documents you are carrying at the moment. But before you succumb to the agents’ marketing skills and buy a card, understand and keep these things in mind-
Things to consider before moving a loan
Shreya took a 20 year home loan of Rs 50 lakhs 3 years back at a fixed interest rate of 10.5 %. Now, in the current falling interest scenario, most banks are offering loans at the rate of 9.00 % – 9.5 % p.a. Since the amount of loan is sizeable and she still has 17 years to go, she wants to explore if it makes sense to switch over to another loan provider and take advantage of the low interest rates. But, moving a loan is a time consuming and a cumbersome process, and there is a cost involved too. These are some things which people like her should know and evaluate before taking a decision to shift.
When is a guarantor required for a loan?
While we are on the topic of loan guarantee, (See previous post- Guaranteeing a loan? Be careful!) it is important to know why and when will the lending bank insist on a guarantor to approve your loan.
Guaranteeing a loan? Be careful!
Jay and Vijay are around 35 years of age and are childhood friends, who went to the same school and later passed out from the same engineering college. Jay settled down for the standard software job and now, 13 years later is in the middle management position and draws a handsome salary. Vijay wanted to be an entrepreneur, started his own company which unfortunately is not doing that great and the performance is inconsistent. He does not have a fixed regular income. Hence, when he approached a bank for a home loan, the bank asked for a guarantor. Vijay approached Jay to help him out, and Jay signed up as a guarantor without much thought.
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