Interest Archive

Sharia Banking and Fintech

As indicated by several financial services professional firms such as Ernst and Young, KPMG, PwC etc., no other viable alternative exists for the banks, but to adapt to financial technology. The age old concept Islamic banking is no exception to it. No wonder, if any startup or bank canvasses exposure in the field of Sharia compliant banking, it would have a massive business to take …

Understanding Investment Risk

In the simplest of terms, investment can be described as the tendency of putting a resource to work to get the desired output in the future. Everything that we do is an investment. From breathing to work, we tend to invest one resource to another and get anticipated results. However, only a few investments qualify to be measured quantitatively, and this is the where the …

Understanding Credit Risk

The system of organized lending can never run out of risks. Be market, liquidity, credit, interest or operational, risk is inevitable for banks and other financial firms. Hence, a primary importance is given to risk profiling in all financial institutions. One of the omnipresent risks that have taken a toll on banks regularly is credit risk. In simplest terms, this risk can be defined as …

How a Credit Card Works?

A Credit Card is a small debt based financial product that can help you build credit, make suitable payments and meet everyday expenses in people life. Credit cards are financial tools issued by banks and other financial institutions that can save you money, allow you to make purchases, take cash advances, transfer balances from other accounts or completely ruin your finances, based on how you …

Simple vs Compound Interest

Lending and borrowing money has always been an essential part in humankind unity and kindness. But nothing in this modern world comes for free. The added benefit which the lender gets is, in very plain words, known as the Interest. Getting into technicality, we usually talk about financial Interest. Interest is indeed the payment from the borrower  to the lender  of an amount above repayment of the principal …

How Does Recurring Deposit Work

Recurring Deposit is a small savings based financial tool which can be used to meet a lot of your life’s goals without any risks, and with certain returns. It is one of the most simple and straight forward investment tools. It is ideal in a way that it is not only easy to understand and manage, but also prevailing to meet your short term goals in …