Loan foreclosure refers to paying off the entire outstanding loan amount before the completion of the loan tenure. It helps borrowers get rid of debt earlier than planned, but it also comes with potential drawbacks like penalty charges and loss of tax benefits. Before making a foreclosure decision, it’s essential to understand its advantages, disadvantages,…
Paying off a loan before its scheduled tenure—also known as loan prepayment—can be a great financial decision in some cases, but it also comes with potential downsides. Before making a lump sum payment towards your loan, it is essential to understand the benefits, drawbacks, and best strategies for early repayment. In this guide, we will…
Missing an EMI payment can be stressful, and if it continues for a few months, you may start receiving calls or visits from Debt Recovery Agents (DRA). However, you have rights as a borrower, and recovery agents must follow specific rules set by the Reserve Bank of India (RBI) and other regulatory bodies. This guide…
Missing an Equated Monthly Installment (EMI) payment can have serious financial consequences, impacting your credit score, increasing your debt burden, and even leading to legal action in extreme cases. However, if you have missed or are at risk of missing an EMI, there are solutions to mitigate the damage. This guide explains the consequences of…
When applying for a loan, borrowers often come across two major charges: log-in fees and processing fees. While both are upfront costs, they serve different purposes. Understanding these fees is crucial to avoid unnecessary expenses and make informed borrowing decisions. 1. What is a Log-In Fee? A log-in fee is a non-refundable charge paid at…
When applying for secured loans such as home loans, mortgage loans, or project loans, borrowers often come across a charge called the log-in fee or log fees. This fee is paid upfront before the lender processes the loan application. But what exactly is a log-in fee, and why is it required? 1. What is a…
When taking a loan, most borrowers focus on the interest rate and EMI amount but often overlook the hidden charges that lenders impose. These charges can increase the total cost of borrowing and impact your repayment strategy. In this article, we will break down:✔ Processing Fees✔ Prepayment & Foreclosure Penalties✔ Other Hidden Loan Charges✔ How…
Debt can be a useful financial tool when managed wisely, but it can quickly spiral out of control if not handled properly. Many individuals fall into a debt trap, struggling to make repayments while accumulating more debt. This situation can lead to financial stress, poor credit scores, and even bankruptcy. In this guide, we will…
