By Chaitali Dutta
l My son will go to Canada to pursue MBA. Can I take the loan on my name and my son will repay the money after he gets a job? What will be the terms and conditions?—Alok Pradhan
Yes, an education loan is possible in the joint name of a parent and the child. The institute has to be in the approved list of colleges to avail the loan. If the loan is above Rs 10 lakh, then you may have to provide the security in terms of a mortgage of real estate or a lien marking on financial assets. While the course is on, only simple interest is applied to the outstanding. Once the course is completed, your son will have to start paying the EMIs. There may be slight variations in the rules from different banks and NBFCs.
l I took a top-up loan on floating rate last year and used the money to renovate my flat. Can I repay half of the amount now without any penalty?—Subash Sharma
Yes, in a floating rate home loan, you can repay part of the outstanding without any penalty.
l Can I get a short-term bank loan to buy a used car. What are the documents that I will require and what will be the interest rate?—Abhiraj Thakur
The short-term car loan may vary from 1-3 years. The paperwork is the same as for any tenure car loan. The interest rate would also be the same.
l My parents had a plot of agriculture land in the hills which I inherited. As it is near the highway, can I take a bank loan to construct a small resort?—Rishi Kant
Yes, if the documents are in place that establish your ownership of the land, you can take a loan for construction.
l As the interest rates are falling, is it a better idea to take a loan on fixed rate?—Dhruv Mehrotra
No, in a falling interest rate regime, taking a loan at a fixed rate will lock higher rate of interest for you. Opting for a fixed-rate loan is beneficial only in an increasing rate scenario.
l How do I transfer my deceased father’s ancestral property in my mother’s name. I have only one sister.—Name withheld
I assume that your father passed away intestate. Therefore, the first step would be to acquire a certificate of heirship from the local magistrate. This being an ancestral property, the no-objection certificate of other heirs like uncles, aunts, and their children, from your father’s side of the family, will also be required.
The writer is founder, AZUKE Personal Finance Advisory. Send your queries to fepersonalfinance@expressindia.com
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.