In this scenario, a record number of people have had to resort to personal and credit card loans. According to data from the Reserve Bank of India, personal loans grew by 11.2 per cent in July 2021, up from 9 per cent last year. The high penalties in personal loans and credit card loans have a way of ensnaring people into a debt loop as even a single unpaid instalment can drag them deeper in the cesspool.
While loan restructuring was an option till last month to manage your debt, it was not the best option. We tell you why and what you can do instead to deal with debt.
Not The Best Option
The Reserve Bank of India (RBI) stepped in earlier this year to provide some relief to debt-burdened individuals hit by the pandemic blues. On May 5, 2021, RBI announced its Resolution Framework 2.0 for debt restructuring. The restructuring was applicable to Covidstressed individuals, small businesses and micro, small and medium enterprises (MSMEs) with a debt exposure of up to ₹25 crore till September 30, 2021.
There were a number of options under the restructuring plan. The first was the extension of the loan tenure, wherein RBI had allowed extension up to 24 months, though the bank was to decide the final term. The second option was step-up EMI, wherein you could increase the EMI when your cash flows improve. For instance, if your salary has been cut due to Covid stress but you expect it to be rolled back in six months, this option could work for you.
Continue reading your story on the app
Continue reading your story in the magazine
Daring The Third Wave
The equity market boom is based on strong fundamentals. Aided by a rapid vaccination drive and economic recovery, India is unlikely to be wounded badly even if Covid breaks out again.
Is The Grass Greener For Unicorns?
An unstoppable rally is being witnessed among the start-ups when it comes to initial public offerings. But, once listed, companies fall into the greater purview of the government, the market, and investor sentiments. We talk about the challenges and criticisms these start-ups may face after entering the new domain
Make Your Retired Life A Journey Of Comfort By Investing In Mutual Funds
Retired life can be 25 years or more and you need to work out your finances to make it a journey of comfort. Mutual funds can be one of the best options to park your money for this period when expenses would be more regular than incomes.
Is The NFO Euphoria Good For Investors?
New fund offers are being launched a dime a dozen. But does it make sense for investors to subscribe to them?
I'm a Conscious Consumer
Actor Konkona Sen Sharma has never been a careless spender but now she is a more careful saver.
Dealing With Debt
RBI’s loan restructuring scheme that lasted till September 30 had costs and conditions attached. If you weren’t able to avail of it, here is what you can do instead
Learning The Tricks Of The Trade
A new breed of traders wants to become financially literate before venturing into the stock market.
TECH SHOWS THE WAY TO SMES' REVIVAL
As the Coronavirus continues to exist and move freely across nations, the Indian economy had to stand back at its feet and rebuild itself. MSMEs and SMEs were badly bruised by the pandemic, and its remedy is machine intelligence, data security and cloud computing, among others.
MAKING SENSE OF THE MARKET LEAP
Low-interest rates, corporate deleveraging and retail frenzy push Sensex above 60,000 in September. Let’s understand the rationale behind the bull run and why retail investors need to be cautious amid the euphoria.
The EPIC of the ERRATIC INVESTOR
The do-it yourself. investors often end up with the wrong stock because they trust what they hear and what they see, instead of what they could learn on their own.
Are Boeing and Airbus Flying Into a Bubble?
They’re launching freighters just as competition from retrofitted jets and cargo space on passenger planes is heating up
GLORIA SEX ABUSER'S THREAT TO KILL MOM
Gloria says she pulled out her hair from the anxiety
EMILY RATAJKOWSKI: WHY I STAYED QUIET
Emily has also written about a creepy encounter with photographer Jonathan Leder.
UAE TO LAUNCH PROBE TARGETING ASTEROID BETWEEN MARS, JUPITER
The United Arab Emirates announced plans to send a probe to land on an asteroid between Mars and Jupiter to collect data on the origins of the universe, the latest project in the oil-rich federation’s ambitious space program.
KATIE FLUNKS DATING GAME!
Pushes her career to top of to-do list
the human essence
SERIES PREMIERE Sunday, Aug. 22, 10/9c, Epix
AUDIO NEWS & VIEWS
Emily vs. John - CLASH OF THE EGOS
John Krasinski is letting the success of A Quiet Place and its sequel go straight to his head, spills a source, who warns that John’s love of the limelight could lead to long-term problems in his marriage to Emily Blunt.
The 46th Peak
We decided to do this last hike of the challenge together. Partway down, I heard my husband scream