By Chaitali Dutta
l I need some short-term money for business. If I take a gold loan, can I repay it in six months and what will be the security of my gold ornaments which are pledged?—Akash Kumar
A gold loan for short-term needs is possible. The ornaments will be returned when the full outstanding amount is paid. The bank or the non-banking financial company will provide you details of the gold that you are pledging.
l My parents have a plot of land on which we want to construct a house. Can I take a loan from a bank and how do I do the registry of the property?—Amol Maheer
Yes, a loan for the construction of an independent house is possible. However, the owner of the land must be one of the loan applicants and have his name in the documents at the registrar’s office.
l Will a loan against property (LAP) be cheaper than a personal loan and what will be the maximum tenure of the loan?—Mohit Gupta
Usually, the LAP interest rate is less than that of a personal loan. The period you can choose at the time of taking the loan. The shorter the period, the higher will be the EMI. Choose a period that entails a comfortable EMI.
l Do banks charge higher rates on loans for a used car? What are the documents I should take from the seller?—Suresh Saini
The interest rate for financing a used car will be slightly higher. Make sure to bring copies of the RC book, valid insurance, and insurance claim history. The financing company will also conduct an independent valuation of the used car before approving the loan amount.
l I had taken an education loan of Rs 10 lakh. Is it possible to take a top-up loan as the institution has increased the fees by another Rs 2 lakh?—Rachit Goel
Usually, a top-up loan of an education loan is not common. However, on a case-to-case basis, the bank may consider your application favourably. Please provide the proof of increase in fees and put in your application.
l I had taken a home loan five years ago and also took a home renovation loan two years ago. I have got some money now. Which loan should I repay in full now?—Samarth Sambhav
You should pay off the loan with a higher interest rate. In case, both the loans are of the same interest rate, pay off the top-up loan.
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.