l How much loan can I get against bank fixed deposits of Rs 20 lakh and do the deposits have to be from the same bank?—Sourav Kumar
You can take an overdraft facility of up to 90% of the deposit value. Taking the loan from the same bank involves less paperwork and lower margins.
l I took an education loan for my daughter six months ago for an MBA course. However, she got an admission confirmation letter from an US university. Can I cancel the current loan by paying off the amount disbursed and apply for a fresh loan for the US university?—Ayush Kumar Mishra
Yes. You can provide proof of admission to the US university and confirmation that your daughter is discontinuing the local MBA course. Then pay off the existing loan and apply for a fresh loan for studies abroad.
l My son wants to take a home loan of Rs 50 lakh. Can I be a co-borrower to raise his eligibility?—Arvind Sharma
Yes, you can be a co-borrower. The additional loan amount will depend on your eligibility criteria and your remaining years of service. Include your name in the purchase agreement.
l I am a salaried employee and want to buy a commercial property. Can I apply for a loan of `1 crore and pay the rest from my savings?—Varun Pruthi
A commercial property loan is possible, but there are key differences compared to a home loan. Interest rates and margin requirements are higher, and the loan tenure is shorter, resulting in a higher EMI. Approach a bank to determine your specific eligibility.
l I had taken a car loan two years ago. Can I prepay the full amount without any charges?—Zafar Saeed
Yes, it is possible to prepay a car loan entirely after two years.
l I need some money for a short period. Is it better to take it by pledging some stocks or take a personal loan?—Pradeep Ahuja
The interest rate on the loan against stocks and other financial investments will be lower. The personal loan is an unsecured loan hence interest charged is higher.
l I have an outstanding amount on my credit card. How do I convert the money into EMI and what would be the interest?—Sachin Rathi
There is no fixed interest rate for overdue credit card amounts, as each issuer has different rates and criteria. Interest rates range from 25-40% p.a. on the outstanding balance.
The writer is founder, AZUKE Personal Finance Advisory. Send your queries to fepersonalfinance@expressindia.com
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
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