If you prepay the loan during the initial phase of the EMIs itself, you will save a relatively higher chunk of interest as a result. Your saving of interest through prepayment, however, is not uniform across the loan tenor. Towards the later stage, the interest you save through prepayment would be relatively low.
With personal loan rates typically hovering in the 10-25% range and credit card interest at around 40% annually, that gold sitting idle in your locker could be your best friend. From medical emergencies to bridging business cash flow gaps, gold loans offer lower interest rates, instant approvals, and no credit score requirements, making them the go-to choice for millions of Indians who need quick, affordable credit without the paperwork nightmare.
From understanding the perfect timing to mastering different prepayment strategies that can save you lakhs in interest, here's everything you need to know about turning loan prepayment from a confusing maze into your fastest route to financial freedom.
Fixed deposit-backed credit cards offer a solution for individuals with no or low credit scores, as the FD acts as collateral for the bank. Let's understand how they work.
State Bank of India has maintained its Marginal Cost of Funds Based Lending Rate (MCLR) and External Benchmark-linked Rates for October 2025. This decision follows the Reserve Bank of India's stance of keeping repo rates unchanged at 5.5% during its October 1, 2025 Monetary Policy Committee meeting.
Bank of Baroda, Indian Bank, and IDBI Bank have lowered their Marginal Cost of Funds-based Lending Rates (MCLR) for select tenures in October. These rate cuts, following the RBI's Monetary Policy Committee meeting, are expected to provide relief to borrowers with floating rate loans linked to MCLR, potentially reducing their EMIs or loan terms.
Gold loans offer quick access to funds against pledged gold ornaments and coins, with interest rates varying by institution and borrower profile. Lenders accept gold jewelry from 18 to 22 karats, excluding gold-plated items or those below 18-karat purity. Loan amounts depend on gold purity and weight, with repayment options including EMIs and bullet payments.
HDFC Bank has lowered its Marginal Cost of Funds-based Lending Rates. Borrowers with loans linked to this benchmark will benefit from the reduction. The bank has cut rates by up to 15 basis points on specific loan tenures. New MCLR rates now range from 8.45% to 8.65%. This revision is effective from October 07, 2025.
Leading banks are offering car loans at interest rates as low as 7.6% this festive season, coinciding with a GST cut on select small cars from September 22, 2025. SBI provides attractive benefits like zero processing fees and up to 100% on-road price finance. Rates vary across lenders, with UCO Bank offering the lowest at 7.
The RBI has announced significant amendments to interest rate regulations for loans, gold/silver collateral, and Perpetual Debt Instruments, effective October 1, 2025. These changes aim to benefit borrowers with greater flexibility in loan resets and restrict lending against gold for speculative purposes. Additionally, the RBI revised limits for banks' Tier 1 capital via overseas PDIs.
The Central government’s recent ban on RMGs seeks to slam shut a digital Pandora’s box, but for thousands of debt-ridden families, the damage is done. Behind the colourful interfaces, dopamine-triggering sound effects, and promises of easy money lies a carefully engineered system designed to keep players betting until they lose all.
Home loan borrowers can anticipate potential relief as several major banks, including HDFC Bank, Bank of Baroda, and Punjab National Bank, have reduced their Marginal Cost of Funds-based Lending Rates (MCLR) across specific tenures in September 2025. These rate cuts may lead to lower EMIs or shorter loan tenures for existing borrowers.
In September 2025, several banks, including Bank of Baroda and Indian Overseas Bank, adjusted their Marginal Cost of Funds-based Lending Rates (MCLR). BoB reduced overnight and three-month MCLR, while IOB lowered overnight, one-year, two-year, and three-year rates. IDBI Bank also announced its updated MCLR rates across various tenors, effective September 12, 2025.
HDFC Bank announces a reduction in its Marginal Cost of Funds-based Lending Rates. This move will benefit borrowers with loans linked to MCLR. The bank has lowered MCLR by up to 5 basis points on select tenures. New MCLR rates now range from 8.55% to 8.75%, varying by loan duration.
A top-up home loan offers borrowers with a good repayment history an additional loan on top of their existing home loan. The loan amount depends on the outstanding amount and repayment capacity. Interest rates are similar to home loans, and tenure aligns with the remaining home loan period. Funds can be used for various purposes, including home renovation and education.
Want to pay off your home loan faster? You can consider the EMI plus SIP strategy. It involves taking a longer loan tenure and investing the EMI difference in mutual funds. Historical data shows that potential gains from mutual funds often exceed loan interest, but investment returns might not always outpace interest rates. Consistent investing and tax deductions are crucial for success.
SBI Card is revising its rewards program, effective September 1, 2025, discontinuing reward points for select cardholders on digital gaming and government transactions.
Home loan borrowers face a crucial choice between banks and housing finance companies. Banks often pass on rate cuts faster due to their funding sources. HFCs adjust rates at their discretion, leading to delays. Banks have stringent paperwork. HFCs have relaxed policies towards customers with low credit scores. However, borrowers should consider interest costs and convenience before choosing between HFCs and banks.
Despite the RBI maintaining the repo rate, several banks, including Bank of Baroda, HDFC Bank, and Punjab National Bank, have reduced their MCLR, potentially lowering EMIs for borrowers. Canara Bank and Indian Bank, however, have kept their lending rates unchanged. These revisions, effective in early August 2025, offer varied impacts on loan interest rates.
HDFC Bank has reduced its Marginal Cost of Funds-based Lending Rates (MCLR) by up to 5 basis points on select loan tenures, effective August 7, 2025. The revised MCLR now ranges from 8.55% to 8.75%. The bank also announced that its home loan interest rates, linked to the Repo Rate, range between 7.90% and 13.20% for salaried and self-employed individuals.
Despite the RBI announcing no changes in repo rate, homeowners can still reduce EMIs through strategic actions. Prepayments significantly cut principal and interest, while negotiating with lenders for lower rates, especially with a strong credit score, can prove beneficial. Balance transfers to lenders offering better deals can also help home loan borrowers reduce their EMI outgo.
My sister and brother-in-law are NRIs and have taken multiple home loans to invest in real estate in India. They have given me the power of attorney (PoA) to act on their behalf for these loans. Can these loans affect my credit score ?
If you are confused by personal finance terms, jargon, and calculations, here’s a series to simplify and deconstruct these for you. In the 62nd part of this series, ET Wealth explains the difference between the two types of lending rates.
Business owners seeking capital for expansion can leverage their property through a loan against property (LAP). This secured loan offers lower interest rates and longer repayment tenures compared to unsecured options. Funds can be used for infrastructure upgrades, technology investments, or working capital.
In India, major credit bureaus, such as CIBIL, Equifax, Experian and CRIF High Mark, provide credit scores. A healthy credit score can lead to quicker loan approvals, lower interest rates and higher credit limits.
State Bank of India has reduced its marginal cost of funds-based lending rates (MCLR) across all tenures, effective July 15, 2025. The cuts, up to 25 basis points, bring MCLR rates to a range of 7.95% to 8.90%. Additionally, SBI's External Benchmark Lending Rate (EBLR) is 8.15% effective June 15, 2025. Home loan interest rates vary from 7.50% to 8.
Personal loans help with unplanned expenses and debt. These are unsecured loans, so no collateral is needed. Interest rates depend on factors like CIBIL score. Many banks have reduced lending rates after the Reserve Bank of India rate cut. This makes personal loans cheaper. Bank of Maharashtra offers competitive rates, followed by Punjab & Sind Bank and Canara Bank.
Bank of India has announced key changes, effective June and July 2025, including waiving minimum balance penalties on savings accounts. Interest rates have been reduced on home and education loans, alongside select retail loans. Savings deposit rates see a slight decrease for balances up to ₹1 lakh. The Green Deposit interest rate is revised to 6.7% for 999 days.
Bank of Baroda has further reduced its home loan interest rates to 7.45% per annum, waiving processing fees, following the RBI's repo rate cut. This reduction follows an earlier rate cut in June. Punjab National Bank's Repo Linked Lending Rate (RLLR) increased, but a decrease in Bank Spread balances the overall impact.
Punjab National Bank, Indian Bank, and Bank of India have reduced their Marginal Cost of Funds-based Lending Rates (MCLR) by 5 basis points in July 2025. This reduction in MCLR will lower borrowing costs for consumers across various loan tenures. The move follows the Reserve Bank of India's repo rate cut, aiming to make loans more affordable.
Following the Reserve Bank of India's repo rate cut in June 2025, several major banks, including SBI, Union Bank, and Bank of Baroda, have reduced their lending rates. This move lowers home loan interest rates for borrowers with floating rate loans linked to the repo rate.
In June 2025, several major banks will revise their MCLR. HDFC Bank, Canara Bank, and Bank of Baroda will announce rate reductions. This will provide borrowers with some relief. State Bank of India and Punjab National Bank will keep their MCLRs unchanged. These revisions will potentially impact EMIs and loan tenures. Borrowers should review the new rates.
Good news for home loan borrowers as Reserve Bank of India cuts repo rate. This move lowers home loan interest rates. Borrowers can expect reduced EMIs or shorter loan tenures. Many banks are revising their lending rates. Public and private sector banks offer varied interest rates. Borrowers should compare fees and processing times before deciding.
Many consider ‘credit card’ a bad term, equating it with losing self-control and going on a spending binge. However, if you resist that urge, credit cards can be the best way to earn points for travel. By replacing cash or UPI spends with credit cards, you spend the same amount of money, but get rewards in the process.
