By Chaitali Dutta
l I need some money for short-term business needs. Between a gold loan or a loan against property, which one is a better option?—Vipul Kumar
Currently a gold loan will be advisable. The loan against property will create a lien on your entire property. This being a short-term loan, the mortgage paperwork can be avoided.
l For personal loans, interest rates vary within a wide band. How is it determined for an individual? Can I negotiate a better rate?—Amogh Prakash
Yes, personal loans are not secured loans, hence the lender can price the service independently. That said, there are various factors affecting the pricing. The strength of the balance sheet of the lender, the margins, market penetration, the life stage of the business, and the prevailing repo rate. Usually, personal loan rates are not negotiable.
l My sister and I had taken a joint home loan five years ago and have repaid around 70% of the loan. Now my sister is getting married. Can I repay the loan myself and transfer the papers in my name?—Abhishek Sharma
The ownership will depend on the names mentioned in the sale agreement as well as the persons contributing to the purchase. If your sister has been paying part of the EMI, she is entitled to part ownership of the house.
l My son, who started working two years ago, wants to buy a house by taking a loan. As I have five years to retire, can I be a co-borrower to increase the loan amount?—Jayesh Mehta
Yes, you can be the co-borrower to increase the eligibility of the home loan.
l My daughter plans to study in Australia for two years after graduation. Given the high interest rate here and currency devaluation, should we take a loan from a bank in Australia and what should I keep in mind?—Alka Tiwari
Usually, the Australian lenders will look at local income capacity for the repayment of student loan. Your daughter may explore university scholarships/ grants/ payment plans to support the outflows.
l How do I convert my home loan which is based on MCLR to repo rate-linked rate and what would be the cost that I have to pay?—Parthiv Sood
Ask your lenders to convert it to a repo-based loan. The property is already mortgaged to them, so it will be a quick and smooth process. The charges would be minimal.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to fepersonalfinance@expressindia.com