Repeated defaulters can land in trouble

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: Amitoj Sethi

(Director, www.deal4loans.com)

I have three personal loans running for the past 12 months with EMIs ranging between Rs 2,000 to Rs 5,000. I need another loan for a substantial amount. How should I go about securing this loan?

You should check with all three banks for top-ups on your existing loans. This way you can ensure that the EMI outflow does increase and you still generate some liquidity. Alternatively if you have some assets that you can leverage, you should be able to get a loan at a rate lower than that of a personal loan. Last alternative is to take a fresh personal loan for your current requirement, but this will be subject to your income to debt ratio.

I have three personal loans and one consumer loan running and I also possess two credit cards from different banks. I have always managed to pay all my dues on time except for one occasion when one of my EMIs for a loan bounced. I have a feeling that my name has been listed in CIBIL. How should I clarify this?

You can approach the banks where you have the loans and credit cards from for information about your case. Ideally if the bank you have taken the loans / credit cards from, are attached to CIBIL, then they would share data about the performance of your loan / credit card with CIBIL. This data would be shared irrespective of whether you default on EMI payments.

Will buying a piece of land come under home loan or land loan? Would buying land be exempted from paying tax?

If you are buying land to construct a house, the tax exemptions of a home loan will apply. You will be able to claim the exemptions only post completion of the property. If you are buying land purely for investment purposes, the tax exemptions do not apply.

I had taken a personal loan from Citibank a year back and have been paying all my EMIs on time. I am looking to get another personal loan of Rs 5 lakh. My take home income is Rs 37,000. How can I get this loan?

Prima facie you seem eligible for a personal loan of Rs 5 lakh. You should approach consolidation portals like www.deal4loans.com for your loan requirement. They are in a position to put you in direct contact with multiple banks that will be able to fulfill your requirement in one go.

What mistakes committed by a loan-holder make him a defaulter?

A loan holder becomes a defaulter if he does not make payments as promised. This could be in the form of EMIs on loans or minimum dues on credit cards. If the cheque or the Electronic Clearing Service (ECS) bounce, on account of various reasons like insufficient funds, incorrect details, signature mismatch, stopped by issuer, etc, and the payment is not realised by the bank, the loan holder is called a defaulter. A loan holder can correct this by making the payment in cash or by issuing another cheque for the payment. Repeated defaulters are reported to the credit bureau.