Loans & credit
Borrowing is a tool. Used with care it spreads a cost over time; used carelessly it takes more than it gives. Know the arithmetic first.
Guides on borrowing
All articles- 4Sep 2026
Your credit score, explained: what moves it and how to fix a bad one
A plain walk through what lenders see in your credit report, the habits that matter most, and a six-month plan to recover a low score.
- 21Aug 2026
How much home loan can you really afford?
What the bank will lend and what you can comfortably repay are two different numbers. Here is how to find yours, and whether to prepay or invest.
- 31Jul 2026
Debt avalanche or snowball: which clears your loans faster?
Two well-known ways to pay off several debts at once, tested on a realistic Indian example with a credit card, a personal loan and a bike loan.
Before you sign a loan
- Check your credit reportFix mistakes first. A small score difference changes the rate you are offered.
- Work out the EMI you can carryKeep all EMIs together under roughly 35 to 40 per cent of take-home pay.
- Compare total costLook at the rate, processing fee, insurance bundled in and charges for changing rates, not only the headline rate.
- Read the prepayment termsFloating-rate loans to individuals cannot carry a prepayment penalty under RBI rules. Check your agreement for other conditions.
- Protect the familyMake sure a term plan covers the outstanding amount.
Try the numbers
See how rate and tenure change what you pay in the EMI calculator, which also shows the year-by-year split between principal and interest.
Carrying a balance can cost 36 to 45 per cent a year. Pay the full statement amount every month, or stop using the card until you can.
What lenders look at
| What lenders check | Why | What you can do |
|---|---|---|
| Credit score and report | Shows how you have repaid before | Pay on time, keep card use low, fix errors |
| Income and its stability | Shows capacity to repay | Keep payslips and tax returns in order |
| Existing EMIs (FOIR) | Limits how much more you can carry | Clear small loans before applying for a big one |
| Age and remaining working years | Affects the maximum tenure | Apply earlier if you can |
| Down payment and property value | Sets the loan-to-value ratio | Save a larger down payment |
Criteria differ between lenders. Treat this as a general guide.
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