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1. SIX GOLDEN RULES TO FOLLOW WHEN TAKING A LOAN
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2. OVERVIEW
 In an ideal world, everyone has enough money to meet his needs. In fact, many of
us have the right choice and the two goals we have expected. Banks and NBFCs, a
gaping gap between reality and aspirations is a tremendous opportunity. They offer
credit offers for potential customers emails, SMS, and phone calls. Some promise
low rates, others offer quick disbursals and easy processes.
 The technology has changed many things for the lending industry. Online
aggregators help customers to zero on cheap loans and take less than a minute to
accept banks and lend credits. Personal loan facility from HDFC Bank Usain Bolt in
the financial world. Its net banking customers only take 10 seconds to spend a loan.
"It changed the game to the industry," said a bank official.

3. OVERVIEW
 Even though the way the technology is transferred, the laws that require discretion
cannot be changed. It does not make sense if you do not need money. Or take a
long-term loan to enjoy the tax benefits available to you.
Loan to Income Ratio Formula =Total EMI’s/ Net Monthly Income * 100

4. TOP 6 THINGS TO KEEP IN MIND OUR STORY THIS WEEK.
 1. DON'T BORROW MORE THAN YOU CAN REPAY : The first rule of smart debt is that the older
generation has been telling us all the time: do not live beyond your lines. Take a repayment loan easily.
Personal loan EMIs cannot exceed 10% of net monthly revenue, but at other side it states that car EMIs
should not be more than 15%.
 2. KEEP TENURE AS SHORT AS POSSIBLE : Maximum home loan tenure of all big lenders is 30 years.
Long-term tenure, less EMI, is very tempting to go for a loan of 25-30 years. However, it is best to take a
loan for the lowest tenure you would like. In long-term debt, interest is very high. In a 10 year loan, 57%
of the interest paid will be paid. If the tenure is 20 years, it will reach 128 percent. If you take a loan of Rs
50 lakh for 25 years, you will have to pay 83.5 lakh rupees (or 167%) in interest.

5. TOP 6 THINGS TO KEEP IN MIND OUR STORY THIS WEEK.
 3. ENSURE TIMELY AND REGULAR REPAYMENT : It is essential to pay discipline especially when it
comes to payments. If this is your short-term loan, such as a credit card bill or a short-term loan, make
sure you do not lose your payment. There are key factors in which an EMI does or does not affect your
credit profile delaying payment and hinder your chances of taking a loan for other needs later in life.
 Even if it does not lose other investments from time to time, do not lose EMI debt forever. In emergency
situations, give your dues priority. You should take care not to lose your credit card payments because
you will not be paid with non-payment, but you will have to pay a higher interest rate.
 If you do not have the money to pay the entire credit card bill, pay a minimum of 5% and roll on the
balance. But do not take this habit because credit card debt is 24-36% interest rate as you have the
most expensive loan you ever need. To avoid the deadline of each month, give instructions to your
bank to pay at least 5% of the bill when the bill is paid.

6. TOP 6 THINGS TO KEEP IN MIND OUR STORY THIS WEEK.
 4. DON'T BORROW TO SPLURGE OR INVEST : This is one of the basic principles of investment. Do
not borrow investments. Ultra-safe investments like fixed deposits and bonds do not match the interest
rate you pay on the loan. And investments that provide high returns, such as Equities, are quite unstable.
If markets deteriorate, you will not experience losses, but are emulated with EMI.
 5. TAKE INSURA NCE WITH BIG-TICKET LOANS : If you take big home or car loans, you can get
insurance coverage too. Buy a plan of the same amount to ensure that if anything happens to you, you
will not endure your family's affordable debt. If your assets cannot pay EMI, the lender takes that
property (house or car). Rs. 50 lakhs insurance scheme does not cost you much.
 6. KEEP SPOUSE, FAMILY IN LOOP ABOUT LOAN : Before you take a loan, discuss with your family. This is
important because the sum total is repayable. Learn about your spouse's debt and the reasons for it.
 Keeping a spouse in the dark on money matters does not only increase stress in a marriage but also
exclude opportunities to find a more cost-effective solution. Perhaps your wife (or husband) you have
some money. Do not lose that opportunity by keeping your need.