How to deal with banks ?

In an Indian city, most of the ‘immigrants’ need to deal some way or other with an Instritution called Bank. This institution can be public and private in structure. This does not matter for this insider note.  Most of the immigrants (in their 20-40) are connected with banks in the following way:

a. Home Loan, b. Car Loan, c. Home Renovation Loan, d. Consumer Upgrade Loan, e. Personal Loan [ Marriage, Credit Card o/s payment, Loan for unanticipated debt, curative loan for previous toxic loan), f. Buy-Now-Pay-Later (with compound interest) loan, g. Go holiday and pay later loan, h. Personal Loan,i. Loan against metal (gold), j. Education loan (commit now, educate later, pay now),k. Loan against securities,l: Business Loan,m: ‘I don’t know loan’ (signing on the dotted line)

Salary Account / Savings Account/Business Account / DP

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Axiom I  : Banks are very good slaves.

Axiom II : Banks are terrible masters.

Lemma (i) : When you keep your money in a bank, bank is your slave. You control this slave using ATM card, cheque-book, digital banking and also by the threat of hiring another slave (competitor bank next few blocks away)

Lemma (ii) : When you borrow from a bank, bank becomes the master and you become a slave. You are controlled by EMI, MAD (Minmimum Amount Due), penalties, compound interest, credit score or worthiness. There are other more instruments bank can command to control you. The most interesting : sending a bunch of ennuchs to your home where they impersonate as persuasive collection agents.

Corollary

1. Borrow as less as possible. Minimize borrowing

2. Live below your means.

3. Build your happiness on things / experiences which need less and less borrowing

4. Borrow only for the 4 things : education which will teach you a new skill, home, business where you see a clear way of earning more than investing after a finite interval of time.

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