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Indian Express
3 days ago
- Business
- Indian Express
From buying to renovating: Choosing the right home loan
For most Indians, buying a home is a lifetime aspiration. A home loan can make this dream a reality. Now, most of us think of home loans as a single, straightforward product but home loans have several variations tailored to different needs. Let's find out what these are and how they can help you. 1. Home purchase loan: This is the most common type of home loan that can be used for purchasing a ready-to- move-in house, an under-construction property, or a resale flat. Most lenders offer this loan with either fixed or floating interest rates, for repayment tenures of up to 30 years. 2. Pre-approved home loan: If you're house hunting and want to know how much you can borrow, a pre-approved loan can be useful. Here, the bank assesses your income, credit history and overall financial health, and gives you a sanctioned loan amount in advance. This type of loan speeds up the home-buying process once you have finalised the right property. 3. Home construction loan: Planning to build your own house instead of buying one? This loan covers the cost of construction on a plot you already own. Typically, the loan is disbursed in stages as the construction progresses, for a tenure of up to 15 years. 4. Plot loan: If you want to buy a plot of land to build a house on later, this is the right loan. The loan amount depends on the market value of the land, your income, and your repayment capacity. However, do note that many lenders require you to start construction within a specific time frame after purchasing the plot. 5. Top-up loan: If you already have a home loan and need extra funds, a top-up loan can be a convenient option. You can use this money for anything, be it home improvements, funding a child's education, or even a medical emergency. Interest rates for top-up loans are usually lower than personal loans, and tenures are flexible. 6. Home extension or renovation loan: Need to upgrade your kitchen, add a new room, or just repaint your house? This type of loan covers all renovation or expansion needs. It is usually smaller in size than a home purchase loan but still offers competitive rates and flexible repayment terms. 7. Home loan balance transfer: Not happy with the rate, terms, or service of your current lender? You can transfer the outstanding balance of your existing home loan to another bank or housing finance company offering better interest rates or terms. This is an effective option if you're looking to lower their monthly EMI burden or extend your loan tenure. Choosing the right type of home loan depends on what stage of your homeownership journey you're in, regardless of whether you're buying, building, improving or simply trying to cut costs. Understanding your options can help you make smarter financial decisions. Always compare lenders and read the fine print before signing on the dotted line. Adhil Shetty is the CEO of
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Business Standard
23-05-2025
- Business
- Business Standard
The credit card reward mirage: High earn rates, low real returns
Swipe, earn, repeat. That's the rhythm many of us follow with our credit cards, driven by the thrill of earning points on every transaction, be it a coffee run, an online order, or a weekend getaway. But here's the catch: not all points are created equal. While flashy ads boast of earning '5X reward points' on spends, what they often leave out is the most important detail: What are those points actually worth when you redeem them? 'A high rate of earning points doesn't necessarily mean better returns if those points have low redemption value,' says Adhil Shetty, chief executive officer of It's not about how many, but what they're worth Credit card rewards are only as valuable as their conversion rate. Shetty explains with an example: a card offering 5 points per Rs 100 might seem superior. But if each point is worth only Rs 0.10, the return is just Rs 0.50 per Rs 100. Meanwhile, another card offering 2 points per Rs 100, but with each point worth Rs 0.50, yields Rs 1 in benefits, double the value. 'It's crucial to evaluate both how many points you earn and what they're actually worth when redeemed,' he adds. Why conversion rates vary Reward point conversion is driven by strategic partnerships and backend negotiations. According to Shetty, airlines and hotel chains often offer better value due to bulk deal arrangements. On the other hand, gift cards or merchandise typically have lower redemption value because of added costs and markups. For example: Travel bookings via card platforms like HDFC's SmartBuy can give Rs 1 per point. The same point might be worth just Rs 0.30 if converted to cashback. Best reward conversions in the market today Here's a quick comparison of some cards with strong conversion systems: Standard Chartered Ultimate: Rs1 per reward point across most options. HDFC Infinia & Diners Club Black: Rs 1 per point on travel via SmartBuy. Kotak Solitaire: Direct 1:1 conversion to Air India miles. Cards like Axis Bank Magnus and BoB Eterna also offer high earn rates, but their value depends on how (and whether) you redeem them effectively. (Above mentioned data is provided by Common mistakes to avoid Shetty points out several traps: Focusing only on points earned, not on their actual worth. Redeeming points for low-value options like merchandise. Overspending just to earn rewards, which can lead to debt.
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Business Standard
08-05-2025
- Business
- Business Standard
Will travel insurance cover you if war breaks out abroad? Check terms
Worsening ties between India and Pakistan has hit commercial aviation, forcing rerouting of flights and cancellations. Indians planning to travel to politically unstable places of the world are likely asking: Does travel insurance cover war-like situations? 'Standard travel insurance policies generally do not cover war-like situations,' said Adhil Shetty, chief executive officer of 'Events such as armed conflict, civil war, rebellion, or military uprisings are typically excluded from coverage. This is a long-standing norm in the insurance industry, as these situations present extremely high and unpredictable risks.' According to Bajaj Allianz 's website, its international travel plans do not cover 'losses due to war, rebellion, or terrorism.' Similarly, SBI General Insurance's website says claims arising from 'war, invasion, acts of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power' are excluded. Even if a traveller is unintentionally caught in a conflict zone which means if one get caught in war zone/ war like sitution unforseen, 'claims arising from such scenarios are often rejected unless specifically covered by a rare exception or special arrangement,' said Shetty. Limited protection can be availed of through add-ons. 'There are a few specific riders or add-ons that may offer limited protection,' said Shetty. 'These are not standard and must be added to a base travel insurance policy separately. Such add-ons may include coverage for political risk, emergency evacuation, or repatriation in the event of sudden political instability.' Add-ons/riders are rarely offered for destinations under active travel advisories or those already designated as conflict zones at the time of travel. What should travellers do From an insurance perspective, travellers to risky destinations should prepare carefully. 'Read the policy documents thoroughly to understand what is excluded, especially clauses related to war, terrorism and civil unrest,' said Shetty. 'Consult the insurer directly to ask whether any riders are available for high-risk destinations and what conditions apply.' People should check travel advisories of the Indian government or reputed global sources. 'Traveling against these advisories can void insurance claims,' he warned. Additionally, registering with the Indian embassy at your destination and keeping emergency contact plans ready is strongly advisable. Cautious insurers As geopolitical risks rise, insurers are becoming more cautious. 'With geopolitical tensions rising, insurers in India are more cautious,' Shetty said. 'Many are explicitly excluding coverage for civil unrest, strikes, and war-related damages, and some have even withdrawn certain covers for specific high-risk countries.' While a few narrow riders for political risk or evacuation exist, Shetty noted that 'the industry trend is toward limiting exposure rather than expanding coverage in conflict zones.' If you're planning to travel to a high-risk region, don't assume your travel insurance will come to your rescue in case of war or civil unrest. Understand your policy, ask your insurer about rider options, and always heed travel advisories. As Shetty puts it, 'Insurance is a tool for preparedness, but not a blanket cover for every geopolitical risk.'
