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The Bill For Borrower And Lender

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Options are plenty and the cheapest is not necessarily the best. It might appear less expensive on paper but there are those hidden costs which should be verified from either your financial advisor, if you have one, or some well-qualified friends.

For housing finance we have displayed loans available at the lowest and highest rate against the lowest and highest loan amount. Look for processing or administration fees which may be part of the fine print. Some, like Citibank's Shelters, even include an annual service charge on the outstanding loan for every year of the tenure. Pre-payment penalty charges are imposed by most companies. Some also charge the interest on a reducing balance basis which is to your advantage.

In consumer finance rates are compounded annually, except for Countrywide Finance which has a flat rate. Again processing and other charges could tip the scale when it comes to working out an affordable loan in the long run.

At the time of writing, many non-banking finance companies are in the process of revising their rates, some quite substantially.

But guard against bad choices by checking the company's credit ratings. This is not a guarantee for your money, but relatively indicates the company's ability in fulfilling its commitments.

Bank term deposits have been divided into public sector Indian banks (excluding co-operative and scheduled banks) and foreign and private Indian banks.

The rate war is among the foreign and privately-owned Indian banks. While the table is fairly clear, what is not listed is the minimum deposit requirement. Finally, loans against shares are given against the pledge of blue-chip pre-selected shares.

Note. An effort has been made to cover options widely but the listing is by no means exhaustive.

First Published: Thu, October 03 1996. 00:00 IST