By Chaitali Dutta
l I took a loan against securities last year. As the value of the pledged shares have fallen, will the bank ask me to pledge more shares?—Anand Gulati
Yes, there are two ways you can handle the situation. One is to pledge more shares to cover the shortfall. Another would be to pay off part of the loan, which will bring the loan to the eligible limit as per the value of the pledged stocks.
l I had repaid my home loan two years ago. Now, I need some funds for renovation. Can I apply for a home renovation loan and what would the interest rate be?—Akshay Sharma
This loan can be a home improvement loan or a loan against property. Even if the loan amount is small, you need to mortgage the entire house in both cases.
l I need a home loan of Rs 40 lakh for five years. Is it possible for me to take the loan for 15 years and repay it in five years?—Pallav Agre
Yes, that is a viable solution as the EMI for a 15-year loan will be smaller. So your cash flow on a monthly basis will be less affected.
l If I take a gold loan, do I have to pay the interest every month or pay at the end of the tenure and get my jewellery?—Divyanshu Chandola
Both options are possible. You can choose as per your cash flow needs.
l How is the interest on education calculated given the moratorium till the study period?—Manish Pawar
Interest on an education loan is simple interest. Hence, there is no interest on the interest, if not paid
l Is the interest rate for a pre-owned car different from a new car? How should I negotiate for a better rate for a pre-owned car?—Gaurav Anand
Sometimes the interest rate is different for new cars and pre-owned cars. Having a strong CIBIL rating and high monthly surplus are two ways the interest rate could be negotiated.
l I closed my home loan a year ago. However, my credit score is still showing outstanding balance of `3 lakh for the loan. What do I do?—Deepak Talwar
Visit the branch of the bank/FII with the proof of closure of the loan account, a copy of your CIBIL report and your application to have the outstanding removed. Under normal circumstances, this intervention is not needed as banks upload the outstanding reports every 15 days to the credit information companies.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). 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.