Author: Nisha Chawla

Nisha Chawla is a seasoned professional with 15 years of experience in banking, insurance, investment, and the debt sector. Holding a B.Com degree, she has been writing for the past five years, offering valuable insights on banking, loans, and financial schemes. Her passion for writing brings clarity to complex financial topics.

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.…

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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…

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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…

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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,…

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The Buy Now, Pay Later (BNPL) payment option is becoming increasingly popular among shoppers, allowing them to buy products immediately and pay for them later in installments. While it seems convenient, understanding how it works and its potential financial impact is crucial. Here’s a breakdown to help you decide if BNPL suits your needs. How Does BNPL Work? BNPL lets you split your purchase amount into smaller, interest-free installments if paid on time. However, delays can result in: Keep Your Spending Habits in Check BNPL makes it easy to shop without feeling the immediate financial burden, which can lead to…

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Closing a bank account seems like a simple task, but it’s not as straightforward as withdrawing your money and walking away. If not done carefully, it can lead to unexpected fees, complications, and even loss of funds. Whether you’re closing a salary account, savings account, or any other type, here’s a comprehensive guide to help you avoid common mistakes and ensure a hassle-free experience. Why Do People Close Bank Accounts? There are several reasons why someone might decide to close their bank account: No matter the reason, knowing the process and the precautions can save you time and money. 1.…

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Many leading Indian banks have recently updated their Marginal Cost of Funds-Based Lending Rate (MCLR), which directly impacts customers’ loan costs. These changes affect loans like home loans, auto loans, and personal loans. Here’s a detailed overview of the latest interest rates from major banks such as SBI, HDFC Bank, Punjab National Bank (PNB), and others. SBI Loan Interest Rates: Small Increases Across Tenures The State Bank of India (SBI) has increased its three-month MCLR from 8.50% to 8.55% and its six-month MCLR from 8.85% to 8.90%. The one-year rate, applicable to most consumer loans, has risen from 8.95% to…

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For young professionals starting their first job, managing finances can be tricky, especially if there’s an education loan involved. The common question is: Should you focus on paying off the loan completely before investing, or can both be done simultaneously? Experts suggest a balanced approach to handle debt while building wealth for the future. Prioritize Loan EMI Payments When you start earning, repaying your education loan EMI should be your first priority. Ensuring timely payments not only maintains your credit score but also prevents financial stress. Additionally, under the old income tax regime, you can claim deductions on the interest…

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With inflation rising in India, a new debate has emerged on whether the Reserve Bank of India (RBI) should still focus on controlling inflation by keeping interest rates high. Union Minister Piyush Goyal has added fuel to this debate, urging RBI to lower rates and suggesting that food inflation, the main driver of rising prices, may not warrant high interest rates. Here’s a look at the factors in play and why this discussion is crucial for India’s economy. Piyush Goyal’s Call for Rate Cuts Amid High Inflation At a recent CNBC-TV18 event, Union Minister Piyush Goyal expressed his views on…

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In India’s banking landscape, not all banks operate under the same reserve requirements. The Reserve Bank of India (RBI) has a specific rule that mandates certain banks to maintain a higher level of cash reserves than others. This rule applies to banks classified as “Domestic Systemically Important Banks” (D-SIBs). Each year, the RBI releases an updated list of D-SIBs, which includes the banks that are deemed crucial to the country’s financial stability. For 2024, the list includes State Bank of India (SBI), HDFC Bank, and ICICI Bank. What are Domestic Systemically Important Banks (D-SIBs)? D-SIBs are banks that play a…

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