Abhishek Kumar on Debt and loans in the Media

Abhishek Kumar said many households still lean on credit cards and BNPL during festivals, and suggested setting a festive budget well in advance and paying for purchases from savings rather than borrowing.

Abhishek Kumar said a signed panchnama made at the time of seizure should note the state of the vehicle, its odometer reading and any belongings inside. He also pointed out that breaking locks, intimidation and towing with people inside are unlawful methods.

Abhishek Kumar said borrowers should check pre-closure terms, compare the full cash price with the EMI price to find the net cost, confirm the lender is RBI-registered, and limit digital consent to the data needed for underwriting.

Abhishek Kumar said a 36 to 48 month tenure can balance cash flow with the car's remaining life, suggested a 20–30% down payment, and said total vehicle costs should stay within 15–20% of net monthly income.

Abhishek Kumar said counting accrued interest in the LTV limit may cut bullet-loan disbursals by about 10–15%, and pointed out that the lump sum due at maturity and a thinner buffer raise risk for borrowers.

Abhishek Kumar explained that a protection plan's premium can be added to the loan but then attracts interest for the full tenure, while a term plan stays in place if the loan is prepaid or moved. He suggested pairing the two.

Abhishek Kumar said paying rent and an EMI together can cause a serious cash flow strain, pointed out that delays can cost buyers Section 24(b) interest deductions, and noted that SIPs are often paused first.

Abhishek Kumar said paying rent and a home loan EMI together can severely strain household cash flow, and that buyers may lose Section 24(b) interest deductions if possession comes after five years. He described a couple who had to halt investments and borrow from relatives.

Abhishek Kumar cautioned that a missed margin call can lead to forced sale at low prices, locking in losses and hurting credit scores, and suggested borrowing only 30% to 40% of the eligible limit against liquid large-cap holdings.

Abhishek Kumar said today's debit card differs from that of a few years ago, with better security and spending controls, and that it gives customers who prefer not to borrow a flexible tool without credit exposure.

Abhishek Kumar said families should stress-test repayment against Indian salaries, borrow conservatively and avoid putting key assets such as homes at risk. He also flagged often-missed costs, including inflation abroad, currency swings and initial deposits.

Abhishek Kumar said moviegoers returning to cinemas are finding that co-branded card offers cut ticket and food costs, and expected demand for such cards to rise in the near term.

Abhishek Kumar said buyers should check how a new loan fits their budget and other goals such as retirement, and read prepayment and foreclosure terms so they can clear the debt early if their income rises.

Abhishek Kumar shared the case in a LinkedIn post cited by the outlet, describing ₹3.3 lakh in EMIs on a ₹2 lakh salary, outlined steps that put cash flow first, and said debt is a behaviour problem.

Abhishek Kumar cautioned that borrowing at a high loan-to-value ratio means even a small price fall can trigger a margin call. He said bullet repayment is risky when prices fall and suggested not pledging heirloom jewellery.

Abhishek Kumar cautioned that buying depreciating gadgets with future income is a worrying trend. He suggested keeping total debt payments below 40 per cent of income, holding six months of EMIs and expenses as a buffer, and weighing hidden costs.

Abhishek Kumar suggested that borrowers first ask their bank for a debt restructuring plan and, failing that, seek a settlement. He said talking to the lender early can stop a case from going to outside agents.

Abhishek Kumar suggested borrowing under 80% of the permitted amount to keep a buffer, favoured EMI repayment to bring the loan-to-value ratio down, warned against judging capacity by the gold's value, and advised tenures of six to 12 months.

Abhishek Kumar said long-term buyers of state debt, such as insurers, pension funds and banks, may show little appetite because of regulatory pressures and slower asset growth.

Abhishek Kumar said banks were expected to pass on the cut through lower home loan rates, helping first-time and mid-income buyers. He cautioned buyers to keep an emergency fund covering six months or more, hold total EMIs under 40% of income and avoid overstretching their budget.

Abhishek Kumar cautioned first-time buyers against rushing after one-off deals or stretching their finances. A checklist of common mistakes credited to SahajMoney flags strain on savings and the hidden costs and illiquidity of a home.

Abhishek Kumar, in a LinkedIn post the article cites, said fear of missing out, not EMIs, is what stops people saving. He described a loan that buys an asset, builds skills or raises income as a useful tool, and one taken only to keep up with others as a trap.

Abhishek Kumar shared a case of a user whose missed instalment led to higher fees and a lower credit score, in a LinkedIn post that India Today cited. He suggested using such credit only for planned essentials.

Abhishek Kumar cautioned that BNPL should be avoided by impulsive buyers, people already juggling several debts, those using it for daily essentials, and those without a stable income or emergency cushion, as it can lead to a debt spiral.

Abhishek Kumar cautioned about clauses that shift all responsibility to users and automatic credit bureau reporting. He suggested using at most two BNPL plans, keeping total EMI and card dues within 30–40% of monthly income, and treating BNPL as a loan.

Abhishek Kumar cautioned about auto-debit charges and one-sided clauses, suggested keeping total EMIs and card dues within 30–40% of income, and advised seeing BNPL as borrowing rather than free credit.

Abhishek Kumar pointed out that the clause, as some insurers use it, runs against IRDAI rules that bar changing a policy at renewal because of past claims or newly declared health conditions.

Abhishek Kumar suggested spending only on planned needs within budget, paying the full bill by the due date, keeping credit use below 30% of the limit and avoiding purchases made just for rewards.

Abhishek Kumar suggested borrowers stay 20-30% below their maximum eligible amount so that margin calls are less frequent, and advised keeping emergency funds ready to meet such calls on time.

Abhishek Kumar said financing gadgets through loans locks monthly surplus into fixed payments, leaving less for savings or an emergency fund. He added that an EMI may be worthwhile only if the device helps earn or raise income.

Abhishek Kumar shared on LinkedIn, as cited by the outlet, how three fraudulent loans in his name hit his credit score. He described filing a police complaint and a dispute to fix it, and suggested checking credit reports regularly and guarding identity documents.

Abhishek Kumar explained that regulated lenders must report borrower data to credit bureaus under a 2005 law, and pointed out the weight of payment history, the harm from high card use and late payments, and several score myths.

Abhishek Kumar cautioned that the approach carries market risk because investments may not beat the loan rate, and said it works only with disciplined, consistent investing.

Abhishek Kumar explained how credit bureaus collect monthly data from lenders, why scores matter for loan approval and how to dispute errors. He suggested paying on time, applying for loans cautiously and keeping credit use below 30% of the limit.

Abhishek Kumar explained three repayment methods, which can be used alone or together, and said prepaying early in the tenure saves the most interest. He suggested reducing the tenure rather than the EMI after a prepayment.

Abhishek Kumar said high interest makes travel loans costly and fit only as a last resort, cautioned that they can lead to a debt trap, and suggested building a travel fund instead, keeping EMIs within 20-30% of income if borrowing.

Abhishek Kumar said even small additional principal payments can save a lot of interest over time. He suggested raising EMIs by 5-10% a year as income grows, if affordable, and moving the loan to a cheaper lender after counting all associated costs.

Abhishek Kumar pointed out that buyers facing a delayed flat are stuck between paying the home loan EMI and, in many cases, rent for where they live now.

Abhishek Kumar said total EMIs should stay within half of one's income, suggested using no more than 30% of the card limit, and pointed out that converting dues into EMIs carries a processing fee and reduces the available limit.

Abhishek Kumar cautioned that lifetime-free does not mean cost-free, as such cards often need regular spending to keep benefits. He said providers use these perks as a loss leader and pointed to hidden costs such as high interest on missed payments, late fees and benefits that can change.

Abhishek Kumar pointed out that credit reports can show loans a borrower never took, mismatched account numbers and closed loans still marked open. He added that delays in updating repayment status are also common.

Abhishek Kumar pointed out that NBFCs with stronger credit ratings may be better able to pass on rate cuts, since they can raise funds more cheaply and have better access to funding.

Abhishek Kumar explained that expenses often grow faster than income and named warning signs such as using credit for bills. He suggested the 50-30-20 budgeting rule, automated investing and a pause before big purchases.

Abhishek Kumar explained that with lower rates a borrower can take a larger loan for the same EMI. He cautioned that undecided buyers should not decide on rates alone, since floating rates can rise, and should check they can afford the EMI through different cycles.

Abhishek Kumar said public-sector banks had recently passed on rate cuts faster than private banks, noted that lower rates raise loan eligibility, and suggested keeping the EMI unchanged and shortening the tenure to save more on interest.

Abhishek Kumar explained that only property with a clear title and proper documents qualifies, that farm land is usually not accepted, and that co-owners must consent. He pointed out the lack of tax benefits and advised against such loans for those already carrying heavy debt.

Abhishek Kumar explained that the external benchmark rate is tied directly to the RBI repo rate, which makes it more transparent. The article's savings comparison for switching was sourced from SahajMoney.

Abhishek Kumar of SahajMoney said some borrowers route their salary through the overdraft account and pay credit card bills from it to save more interest, and cautioned that only idle cash should go there, not money meant for long-term investments.

Abhishek Kumar suggested estimating monthly expenses and total assets and weighing costs against one's means before deciding. For a retiree with a pension, he said upfront payments would need savings, making tier-2 options workable but metro homes harder.

Abhishek Kumar said a vehicle loan suits buyers who need money only for the bike and can manage the down payment, while a personal loan fits those who want room to cover other expenses.

Abhishek Kumar suggested that new borrowers shop around and compare what different lenders charge for their credit score. He also said fixed deposit investors could ladder deposits across tenures to adapt as rates change.

Abhishek Kumar suggested prepaying the loan when possible, cutting expenses and approaching lenders to restructure if repayments get hard. He reminded parents that they share liability and that repayment should not hurt their retirement plans.

Abhishek Kumar, founder of SahajMoney, is the contributor credited on this guide, which sets out a three-step plan to cut household debt: list debts and pick a repayment method, free up cash, and stay disciplined with an emergency fund.

Abhishek Kumar suggested keeping about ₹10 lakh for medical emergencies, especially with elderly family members, held partly in a savings account and partly in liquid funds. He cautioned that some fintech lenders ask for EMIs upfront and that hospitals may raise bills to offset subsidised interest.

Abhishek Kumar pointed out that lenders also waive legal and valuation charges and offer loan-to-value ratios of up to 90%. He said lower spreads over MCLR or repo-linked rates are preferable to teaser rates, noted that many offers need a high credit score, and suggested keeping total EMIs within 35% of take-home income.

Abhishek Kumar cautioned that the main danger of top-up loans is borrowers going over their budget, and suggested fixing a spending limit for interiors and home improvement work and sticking within it.

Abhishek Kumar, founder of SahajMoney, said an emergency fund of six to 12 months of expenses helps people cope with a job loss, and suggested the avalanche method of clearing high-interest debts first.

Abhishek Kumar suggested keeping the debt-to-income ratio, which is total EMIs divided by monthly income, between 20% and 35%. He also suggested sorting spending into essential and optional items, so that cuts to optional spending free up money to repay costly debt.

Abhishek Kumar cautioned that borrowers must be able to pledge more collateral if the lender asks for it, and suggested keeping an emergency fund so that such a loan is not needed.

Abhishek Kumar of SahajMoney suggested sorting spending into mandatory and discretionary items, and using windfalls such as annual bonuses to prepay high-cost loans like credit card dues or personal loans.

Abhishek Kumar of SahajMoney said people react to heavy debt in different ways, that weak personal-finance awareness adds to debt stress, and that saving first and spending what is left helps avoid falling behind on repayments.

Abhishek Kumar, SEBI RIA at SahajMoney, said total EMIs should ideally stay between 20% and 35% of monthly income, and that regularly dipping into savings to pay EMIs is a sign to start reducing debt.

Abhishek Kumar said some lenders add a markup of 1-2 percentage points to the home loan rate for top-up loans and noted tax benefits when the money funds renovation. He cautioned against using them for holidays or lavish buys, and suggested keeping total EMIs within 35% of monthly take-home pay.

Abhishek Kumar suggested checking prepayment penalties before finalising a personal loan and keeping the monthly EMI below 35% of take-home pay.

Abhishek Kumar explained that if a wife has no role in her husband's business, the Married Women's Property Act can protect her assets from recovery. He cautioned that in a sole proprietorship or partnership her assets could be attached.

Abhishek Kumar, founder of SahajMoney, cautioned buyers against stretching their house budget during festive offers and said total EMIs should not exceed 30% of the family's net income.

Abhishek Kumar said lenders have usually extended tenures so borrowers do not feel a higher EMI at once, and suggested checking that key financial goals are funded before prepaying a home loan.

Abhishek Kumar, founder of SahajMoney, said many people without formal income documents are shut out of credit cards, and that pre-approved UPI credit lines with basic checks could help small borrowers and shopkeepers fund working capital instead of borrowing from moneylenders.

Abhishek Kumar, founder of SahajMoney, said credit cards need many documents and leave out people without formal income proof, while pre-approved UPI credit lines need only basic checks and could help small borrowers and shopkeepers meet working-capital needs instead of borrowing from moneylenders.

Abhishek Kumar suggested that business owners tie borrowing to the ratio of annual profit to annual interest, and keep liquid assets enough to pay a year of interest if income falls.

Abhishek Kumar, founder of SahajMoney, said lenders fund 60–85% of a used car's value against 85–100% for a new one, suggested avoiding car loans where possible, and pointed to a personal loan or home loan top-up as alternatives in some cases.

Abhishek Kumar suggested that parents teach children early to feel at ease sharing bad news and to live within their means.

Abhishek Kumar, founder of SahajMoney, said a borrower's credit score largely shapes a personal loan's rate, amount and terms, and that borrowing from the bank holding one's salary account can help negotiate a lower rate.

Abhishek Kumar said that while regular investing helps offset loan interest, borrowers should also prepay using pay rises, annual bonuses or other windfalls to reduce the interest burden.

Abhishek Kumar worked through an example showing how a higher rate lifts both the EMI and the total interest on a home loan. He pointed out that stretching the tenure to keep the EMI unchanged increases total interest even more.

Abhishek Kumar said a reverse mortgage can help when a family's wealth is mostly in property and it has little cash for retirement expenses. He added that heirs who repay the loan can keep the house.