Ever wondered why you pay interest on a loan or earn interest on your savings? It all comes down to interest rates. Interest rates affect everything, from mortgages and car loans to the financial activities of businesses and governments. When you borrow money, you pay a fee for using it for a certain period. This fee is called the interest rate and is usually expressed as a yearly percentage. It is how banks and other financial institutions earn money by lending you money. Keep reading to learn more about interest rates, their types, how they work, and the factors that affect them. What is an ..read more

When someone mentions ‘loan,’ our minds often jump to images of putting up a house, car, or other valuable asset as security. But what if there was another option? Collateral-free loans, also known as unsecured loans, offer an alternative by eliminating the need for collateral. So, what exactly is collateral? A collateral is an asset with a clear market value that you pledge to the lender when taking a loan. Examples include a house, land, machinery, stocks, and vehicles. If you default on the loan, the lender has the right to seize and sell the collateral to recover their losses. In simple te ..read more

Does debt feel like you are trying to climb a mountain with a heavy backpack? But what if there was a strategic way to lighten your load and reach the summit faster? That is what the debt avalanche method does. It is a debt repayment strategy that helps you save money on interest. Unlike other methods that might give you quick wins but cost you more in the long run, the debt avalanche focuses on tackling high-interest debts first. Read on to understand how this strategy works and how to make full use of it. What is the debt avalanche method? The debt avalanche method is effective for those who ..read more

Did you know there are strategies for finding competitive loan rates? By understanding the repo rate, you can grab better and more competitive loan deals. The Repo Rate or Repurchase Agreement Rate is the interest rate at which the Reserve Bank of India (RBI) lends short-term funds to commercial banks in India. In simple terms, it is the rate which banks pay to borrow money from the RBI. At times, when a bank goes low on cash, it borrows money from the RBI. However, the RBI charges an interest when it lends money to commercial banks. This, in turn, affects your interest rates on loans and savi ..read more

Need financing for a personal emergency or a big purchase? Collateral loans might be your answer! But what are collateral loans? Let’s first understand the basics. This article discusses what a collateral loan meaning, its benefits, and the different types available. By understanding how collateral loans work, you can decide if they’re the right way to finance your goals. What is a Collateral Loan? There are two main categories of loans: secured and unsecured loans. For unsecured loans (meaning no collateral required), you do not need to keep any of your valuable assets as a guarantee. Only yo ..read more

Imagine you need to cover an unexpected expense—perhaps a car repair or a medical bill. Should you use a personal loan or a credit card? Both credit cards and personal loans offer a way to access funds quickly, but they’re not one-size-fits-all solutions. Let’s look at the difference between personal loans and credit cards to help you make the best financial decision for your situation. What is a Credit Card? Think of a credit card as a handy loan in your pocket. Issued by banks or financial institutions, it lets you borrow money up to a set limit for purchases or even cash advances. Unlike a ..read more

What if getting a loan was as easy as a few taps on your phone? A paperless personal loan is a modern way of borrowing that eases the application process. It is convenient and speeds up the entire process. But how do they work? Let’s understand what paperless personal loans are, how you can use them, and their advantages. What is a Paperless Personal Loan? Paperless personal loans allow you to digitally apply for and manage your loan. Submitting physical documents is not required when applying for a paperless personal loan, saving your effort and time. This can be done from the comfort of your ..read more

A credit bureau is a company that collects your credit history, which is used to generate a credit report. This report helps lenders determine whether you’re a good borrower. Let’s consider an example – Suppose you want to borrow money from a friend. Before lending it to you, your friend might ask other friends about your borrowing habits. If you’ve always paid back on time, your friend will feel confident lending you the money. If not, they might hesitate. Similarly, banks and non-banking finance companies (NBFCs) check your credit history to see if you have managed money well in the past bef ..read more

SMEs are the engine driving India’s economic growth, which is particularly essential for developing nations like itself. These businesses contribute significantly to the economy, employing over 60 million people and generating 1.3 million new jobs annually to account for 45% of India’s industrial output and 40% of its exports. They produce a diverse range of over 9,000 products, fostering economic growth and diversifying the country’s GDP. While familiar businesses like garages, grocery stores, and local restaurants fall under the SME umbrella, these enterprises are defined by specific regulat ..read more

Banks and NBFCs are financial institutions that play important roles in the financial world. But what exactly sets NBFCs apart from banks? Banks are traditional institutions that accept public deposits, lend to individuals and businesses, and offer merchant banking and other financial services. NBFCs, on the other hand, provide a wide range of financial services, such as personal loans, business loans, vehicle loans, gold loans, salary advances, asset financing, and microfinancing. Here, we will explore the key differences between banks and NBFCs to understand their roles and what these differ ..read more