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Do I need to Insure the Loan from Bank ?

Insure the Loan from Bank - Yes. One will have to insure the property etc. as required by the bank during the tenure of the loan. However, banks cannot insist on your obtaining insurance cover from any particular provider.

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What is Collateral Security ?

Collateral Security - This is generally defined as additional security borrower offers a lender to secure a loan. Banks may take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons,...

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Is there any Penal Charge for Prepayment of Loan ?

Penal Charge for Prepayment of Loan  - Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, banks may charge a pre-payment penalty which may differ from bank to bank. Pre-payment penalty...

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What is Interest Rate Reset Clause ?

Interest Rate Reset Clause - An 'interest rate re-set' clause allows a bank to review and reset rates at the end of a specified period of time based on interest rates prevailing at that time. Read - Whether Provident Fund (PF)...

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What is Fixed Interest Rate ?

Fixed Interest Rate - An interest rate on a loan / credit facility that remains fixed either for the entire term of the loan or for part of this term is referred to as a fixed interest rate.

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Why To Choose Floating Rate of Interest ?

If one has opted for a loan at floating rate of interest he / she needs to know about Floating Rate of Interest. Check out the most important point before opting the Floating Rate of Interest. The Base / Reference rate of...

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What is Floating Rate of Interest ?

Floating Rate of Interest -A floating interest rate is a variable interest rate which can change over the duration of the loan / credit facility. The applicable interest rate on the loan moves up and down with the market rates...

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Impact of One Time Settlement Scheme (OTS) on CIBIL

One Time Settlement Scheme (OTS) and  CIBIL Score  - What would be the impact of One Time Settlement Scheme (OTS) on borrowers credit history ? Do they may apply for the fresh loan ? Can fresh loan be provided to...

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