Offers given on credit cards are genuine

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: Amitoj Sethi

Director www.deal4loans.com

I require a home loan of Rs 20 lakh. My monthly take home is Rs 40,000. Punjab National Bank is offering the loan at a 1% lower rate. Should I opt for this bank’s loan offering and how? If I go for a plot then how much loan of the registered value can I get? If I avail tax benefit then how soon do I begin construction?

Prima facie you seem eligible for a home loan of Rs 20 lakh, but not too many banks give loans to purchase land. You should approach consolidation portals like www.deal4loans.com for your loan requirement.

How can we find out if special packages on home loans, personal loans and credit cards, offered by banks during festive season, are genuine? If not, then where is the catch?

The ideal way to compare the various packages on home and personal loans is to look at the EMI being paid and the upfront payment for the same amount over the same tenure. Usually banks offer lower rates of interest, but make up the amount lost due to the lowered interest rate through fees and advance EMIs. Usually the offers given on credit cards are genuine as the banks partner with the retail outlets to compete for your spend. For example, if you were to purchase a new plasma TV, you will need to spend about Rs 50,000. Retailer X will be keen you purchase it from him and will be willing to offer a 5 % discount for the same. Bank Y will be keen that you make this purchase using their credit card and will be willing to offer a 5% discount on the same. In a case like this, they will partner to bring you a plasma TV at a 10% discount, but only if you purchase it from Retailer X on Bank Y's credit card. The down side to offers like this may be that Retailer X may not be able to offer you as much of a range to choose from as Retailer Y or you may not have Bank Y's credit card.

I am a software engineer with a monthly income of Rs 25,000. I am looking to take a home loan of Rs 5,40,000. Since, I am not aware of the market conditions, could you please advise what I should go for — fixed interest rates or floating rates of interest?

My personal recommendation would be that you should go in for a floating rate loan. Given the current market condition, the interest rates would remain flat or increase by a couple of percentage points over the next couple of years, but if the central bank wants to keep the economy on a high growth path, it needs to bring down lending rates for priority sectors like housing. So I feel that when the central bank does look to make such a correction, you will benefit with a lower interest rate if you have taken a floating rate loan.

I have a property in Gurgaon and now I want to build a house on it and for the construction I want to take a loan of Rs 5,00,000. What type of loan will fulfill my requirements? Will it be considered a home loan or property loan?

The loan you seek is a construction loan. It will be classified as a home loan. I am not sure what you mean by a property loan. You will have to submit an architect's construction estimate along with property papers to the bank. The bank's values and credit team will then scrutinise the documents, visit the property and process the loan.