Author: Nisha Chawla

Taking a loan has become a common practice in modern times. From purchasing a home to funding higher education, loans help individuals achieve financial goals that might not be immediately possible otherwise. However, a worrying trend has emerged: many people misreport their income when applying for loans. A recent survey conducted by global software firm FICO sheds light on this issue and reveals shocking statistics about the behavior of Indian borrowers compared to their global counterparts. Why Do People Misrepresent Their Income? For many, the temptation to inflate income figures on loan applications stems from the desire to secure higher…

The Reserve Bank of India (RBI) has introduced new guidelines to make it easier for home and car loan borrowers to manage their interest rates. These rules allow borrowers to switch between fixed and floating interest rates during their loan tenure, offering greater flexibility to manage costs based on repo rate changes. This move is part of RBI’s effort to enhance transparency and give borrowers more control over their loans. Let’s understand what these changes mean and how they impact borrowers. What Are Fixed and Floating Interest Rates? Fixed Interest Rate A fixed interest rate remains constant throughout the loan…

Indian banking giants HDFC Bank, ICICI Bank, and the State Bank of India (SBI) have achieved a remarkable milestone by securing spots in the list of the world’s top 25 banks by market capitalization. This achievement reflects the growing strength and global competitiveness of Indian banks in the financial sector. Indian Banks Make Their Mark Globally According to a data analytics firm Global Data report, HDFC Bank ranks 13th globally, followed by ICICI Bank at 19th and SBI at 24th. The market cap of these banks as of December 2024 underscores their significant growth: This remarkable growth positions these Indian…

Education is key to shaping a bright career, but financial hurdles can arise during higher studies. To address this, banks offer two main financial solutions: student personal loans and education loans. While both help students financially, they serve different purposes and come with unique features. Let’s dive deeper into how these loans differ and where to find the best deals. How Is a Student Personal Loan Different from an Education Loan? While both loan types aim to assist students financially, their usage, features, and requirements vary. Banks Offering Student Personal Loans in India Several banks provide attractive personal loan schemes…

Even in today’s age of UPI and online transactions, cheques hold significant importance for large payments and as proof of transactions. Cheques are issued to both savings and current account holders by banks, and they come in various types. Each type of cheque is designed for specific purposes, making it essential to understand their differences and uses. Here is a detailed breakdown of the 9 types of bank cheques and where they are used: 1. Bearer Cheque A bearer cheque is payable to the person presenting it at the bank. It can be encashed by anyone holding the cheque without…

The government is working on a groundbreaking plan to make home loans accessible to low and middle-income families without requiring any third-party guarantee or extensive paperwork. A new zero-collateral housing loan scheme is in development, aimed at benefiting people who often struggle to secure loans due to lack of proper income proof or property documents. Loans Up to Rs 20 Lakh Without Collateral According to sources, the scheme will offer loans up to Rs 20 lakh without the need for any third-party guarantee or collateral. This initiative could prove to be a game-changer for families who cannot meet the stringent…

India’s largest public-sector bank, State Bank of India (SBI), has suggested changes to the Reserve Bank of India (RBI) regarding the deactivation of bank accounts. The current rules focus solely on financial transactions for determining whether an account remains active, but SBI has urged the inclusion of non-financial transactions like balance checks to mark accounts as operational. SBI Chairman C.S. Shetty emphasized that this adjustment is crucial to address the growing number of inactive accounts, particularly those linked to government welfare schemes. Challenges with Inactive Bank Accounts Many account holders, especially beneficiaries of government programs, perform only a few transactions.…

Purchasing a home is a milestone for many, but financing it with a home loan often feels overwhelming. The idea of paying hefty EMIs over decades can be intimidating, especially with the rising interest rates. However, with strategic planning and smart financial decisions, you can significantly reduce your loan tenure and save on interest payments. Let’s explore some practical tips to make your dream home more affordable and reduce your home loan repayment burden. Understand the Real Cost of a Home Loan Before diving into strategies, it’s crucial to understand how a home loan works and its actual cost. For…

Credit cards are a popular tool for managing day-to-day finances, but high interest rates can make them a costly affair. Recently, former US President Donald Trump proposed a 10% cap on credit card interest rates to ease the financial burden on consumers in the United States. This proposal has sparked global interest as credit card debt in the US surpasses $1 trillion. But how does this compare with credit card interest rates in India? Let’s explore the interest rates on credit cards offered by Indian banks and learn how to choose the best low-interest card. What is Trump’s 10% Credit…

Studying abroad is a dream for many, but the expenses can often seem overwhelming. From tuition fees to accommodation and daily living, the costs add up quickly. An education loan can bridge the financial gap and make this dream achievable. Here’s a simple guide to understanding and applying for an education loan for your overseas studies. Types of Education Loans for Foreign Studies Education loans can be categorized into two main types: Choose the loan type based on your financial situation and repayment capacity. Reduce Loan Burden with Scholarships and Grants Before applying for a loan, explore available scholarships, grants,…