We are continuing from the last post i.e. loans
Let me to share one thing RBI is working on to get more transparency in the business of lending, RBI looking towards wavier of the Prepayment charges levied from bank this may be good for clients so it is like a Number potability in telecom. You may have different options & banks has to compete on the interest rates & the existing clients will not be taken for grated or taken for ride. Good thing.!!!
But do you know today also you can negotiate on the interest rates. Depending on the Financial strength, your salary or income your CIBIL credit report data you can negotiate the rates. Negotiating interest rates means negotiating margin taken by banks or Financial institutes over their basic lending rate .
IF you could able to negotiate 1% also it can have a very positive effect over a period of time on your cash flows.
Normally many people I had seen are in hurry of getting loan disbursed, majorly it happens with long term loans like Housing loan. So when you are in hurry without giving thought on long term implication of loan we just see that the disbursement happens & keep on cursing the Financial institutions rest of the life.
" But be sure that if you are signing any document before reading & understanding it then you deserve to be cheated ".
Ok ! that is not the subject of this post, I was talking about loan interest rates. Before taking any type of loan :
Do your homework properly
1. Do proper study of the Interest rates offered by Different institutes.
2. Ask your Builder enough time for disbursement of Loan.
3. Try to understand the different conditions the financial institutes is putting on you.
4. Try to find out the possible trap for you in loan agreement.
5. Try to negotiate with financial institutes for interest rates on the basis of CIBIL Credit report & Financial rating.
6. Be ready to take little pain in getting the process done which will payoff very well in long run.
This 1% can be used to optimize your cash flow in Financial planning and can be aligned to your Financial goal. As well as you can claim the Tax benefit as well.
We will put some more focus on loans in next post as well !
.
Let me to share one thing RBI is working on to get more transparency in the business of lending, RBI looking towards wavier of the Prepayment charges levied from bank this may be good for clients so it is like a Number potability in telecom. You may have different options & banks has to compete on the interest rates & the existing clients will not be taken for grated or taken for ride. Good thing.!!!
But do you know today also you can negotiate on the interest rates. Depending on the Financial strength, your salary or income your CIBIL credit report data you can negotiate the rates. Negotiating interest rates means negotiating margin taken by banks or Financial institutes over their basic lending rate .
IF you could able to negotiate 1% also it can have a very positive effect over a period of time on your cash flows.
Normally many people I had seen are in hurry of getting loan disbursed, majorly it happens with long term loans like Housing loan. So when you are in hurry without giving thought on long term implication of loan we just see that the disbursement happens & keep on cursing the Financial institutions rest of the life.
" But be sure that if you are signing any document before reading & understanding it then you deserve to be cheated ".
Ok ! that is not the subject of this post, I was talking about loan interest rates. Before taking any type of loan :
1. Do proper study of the Interest rates offered by Different institutes.
2. Ask your Builder enough time for disbursement of Loan.
3. Try to understand the different conditions the financial institutes is putting on you.
4. Try to find out the possible trap for you in loan agreement.
5. Try to negotiate with financial institutes for interest rates on the basis of CIBIL Credit report & Financial rating.
6. Be ready to take little pain in getting the process done which will payoff very well in long run.
This 1% can be used to optimize your cash flow in Financial planning and can be aligned to your Financial goal. As well as you can claim the Tax benefit as well.
We will put some more focus on loans in next post as well !
.
Very good Information. Being an Businessman we provide less importance to such area. Actually it brings lot more comfort in our business. Thanks for valuable information.
ReplyDeleteThanks Anil, The purpose of this post is met !
ReplyDeleteIt can really add value to your cash flow & ultimately your financial planning.
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