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| Loans by Choice not by Chance! |
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| “Top-ups are usually cheaper than fresh loans.
Check your top-up eligibility before taking a fresh loan.” |
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| Learn Smart moves to manage your Debt! |
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Loans and credit cards are an integral part of our life now. But every coin has the other side also. And we can simply avoid this by implementing some smart strategies to help make loans work smarter
Go for zero surcharge or Lifetime free credit cards: This will take care of two major recurring annual costs.
Use overdraft facility instead of credit card cash: You should avoid withdrawing cash using credit cards since you have to pay a processing fee, an interest of 2.95 per cent per month charged on daily basis and service taxes. Instead, opt for a bank savings account with an overdraft facility that will allow you to access funds at a much lower 21-22 per cent per annum.
Take loans against assets: For short-term cash requirements, opt for loans against assets instead of personal loans (interest rates 15-20 per cent). You can get Loan against fixed deposits (FD), Insurance Policy, vehicle, Mutual Funds etc
Go for credit card having maximum offers: using a card online involves certain offers such as booking air tickets. The card also enables you to avail discounts at travel and shopping portals.
Time your loan/card application: Take advantages of promotional schemes of banks to spur purchases by the people due to shradhs, festivals, marriages etc
Opt for a joint home loan with spouse: This will enhance your loan entitlement and give you more tax-breaks -- up to Rs 1 lakh (Rs 100,000) per annum each under Section 80C for principal repayment and up to Rs 1.5 lakh (Rs 150,000) each under Section 24 for interest repayment -- since both would be entitled for them. |
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Leverage your credit history: If you have been a good borrower in the past, you can use your credit record to bargain for lower rates. Many banks have already introduced products that reward good credit history with loans at lower rates, waiver of processing charges and increased loan eligibility.
Leverage your banking relationships for access to loans: Homemakers, part-time workers and others with irregular incomes and cash flows may find it difficult to get credit cards and loans. In such cases, it pays to have a regular banking relationship, where, among other things, you operate the account regularly. The tenure of the relationship sometimes helps get access to these products, especially a credit card. Once you build a good credit history by using your credit card regularly and clearing your dues on time, you can prove your credit worthiness.
These simple moves can not only make your credit history healthy but also will advices you on how you should manage your debt.
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