My brother is working in Dubai and plans to invest in a property in Chennai. How can he apply for a loan from an Indian bank and what are the documents that he will need?—A R Bhuvanesh
An NRI can apply for a home loan from a bank in India. The papers are similar to that for a resident. The additional papers are the proof of employment and employment pass of the resident country. The applicant needs to visit India to do the documentation and for the registration of the property.
I closed my home loan a year ago. I am out of the country and not able to collect the property papers. Can I authorise my brother to collect the papers from the bank?—Umesh Sharma
Usually, the bank will not hand over the original documents to a third party, even with an authority letter. You may have to cite special circumstances and request the bank for approval.
I have had a home loan for about five years and the interest rate is 8%. I have taken a top-up loan six months ago and the interest rate is 8.5%. If I prepay some amount, which one should I do?—Alok Singh
It is better to pay the costlier loan first. Here in this case, reduce your top-up loan amount with your surplus funds.
I have deposits of Rs 10 lakh in State Bank of India. Can I take a short-term loan pledging the deposits and repay the amount after six months without any penalty?—Sanjay Bisht
Loan on deposits will attract an interest rate higher than the rate that is applicable on the deposit. If you utilise the loan for six months, the interest plus the loan amount has to be paid back to the bank.
If I pay the interest on the education loan before the moratorium period, will the bank reduce the interest rate?—Aman Kumar
The interest rate will be the same. However, the interest amount payable will reduce as the outstanding will be lower.
I have Rs 10,000 credit card outstanding and the amount is under dispute as it was billed twice. The bank refuses to rectify it. How and where can I escalate the matter for redressal?—S R Dixit
The first step is to escalate the matter to the credit card company’s grievance redressal cell. If your complaint is not taken care of within 15 days , you have two options. You can write to the department of consumer affairs or escalate to the RBI Ombudsman Complaints.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to fepersonalfinance@expressindia.com
Disclaimer: This article is based on a recent ITAT Pune ruling in a specific case. Judicial decisions are fact-specific, and their applicability depends on individual circumstances. Taxpayers should seek professional advice before relying on this ruling for their own cases.
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