What is an EMI?

What is an EMI? An Equated Monthly Installment (EMI) is usually a fixed amount of money that you need to pay your bank or lender every month as repayment of a loan taken, until your loan is totally repaid. It is essentially made up of two parts, the principal amount and the interest on the… Read More »

Breaking the Teaser Loan Mystery

The Teaser Loan Mystery??? The term used to describe housing loans that carry ultra-low fixed rates in the initial years, but charge market-linked rates thereafter. Normally, Most NBFCs and banks offer home loans at floating interest rates. The interest rate on the loan is at a ‘spread’ over the lender’s base rate. As the base… Read More »

Marginal Cost Lending Rate (MCLR) – The new benchmark rate in Indian Banking

MCLR (Marginal Cost Lending Rate) Marginal Cost Funds To understand Marginal Cost Lending Rate (MCLR) we have to first understand what Marginal Cost Funds are. They are the costs incurred at the boundary i.e. the most recent costs incurred from the latest loan borrowed. It involves calculating the incremental cost of borrowing money to fund… Read More »