By Chaitali Dutta
If I go for a home overdraft account, will it be beneficial in the long run?—Vipul Sharma
A home loan overdraft (OD) facility is beneficial for borrowers who have surplus funds. The additional funds parked in the OD account contribute to reduced interest payouts. However, for a salaried person with a tight cash flow, this facility may be detrimental as the interest rate is higher for the OD facility than that for a regular home loan.
I had pledged some shares to take a loan last year. I have paid EMI for one year. Can I repay the full money without any penalty?—Saurab Mittal
Most of the loans against securities may be paid off without penalty after a year. However, do check the terms and conditions in the sanction letter to get further clarity.
I am planning to take education loan for my daughter’s higher education in Singapore. Should I look for a local bank for a loan and what documents will I need?—Anil Nair
Yes, it is possible to avail a loan in Singapore itself. The advantage is that the interest rate would be lower than that of India loan. However, you may have a requirement for a local Singaporean person to be a co-applicant or a guarantor. The documents are the usual set, comprising application form, letter of acceptance, expenses details, identity details and income proof.
I had taken a car loan 10 years ago. The loan is paid and I have changed cities twice. Now, I want to sell the car. But the authority is asking an NOC from bank for transfer and change of name in favour of the buyer. How can I get the bank NOC now?—Amol Kumar
The NOC from the bank is a critical document. You can approach the local branch of the same bank for the same. However, you will also need to submit the RTO forms to remove the name of the bank and change the ownership of the car. This needs to be done at the city where your car is registered.
Do I have to show the end use of home renovation loan and are there any tax benefits?—R S Murli
Yes, the invoices need to be submitted to the bank for the renovations done. The tax benefits are the same as those of a home loan.
The writer is founder, AZUKE Personal Finance Advisory