I have got a Rs 2 lakh loan on my credit card. How can I increase this loan amount or do a top-up? Ruchi Dutta,Ghaziabad It all depends on the credit standing you have with your bank. This includes your repayment track record so far,the maximum amount you are eligible for and the current credit limit on your card. Based on these factors you can discuss increasing your credit limit with your bank if its currently inadequate for a top up. You could provide documents that can vouch for your current income like your IT returns etc. This will enable you to get an upgrade on credit limit and help apply for a top up loan. A loan from a credit card is comparatively quicker,but do consider a personal loan or a loan against security,as the interest rates are lower. I have a salary of Rs 10,000 per month. I wish to take a loan of up to Rs 15 lakh. Is this possible? Ravi Singh,Gurgaon Banks as a general rule do not provide a loan,where the EMI exceeds around 40-50 per cent of the monthly income. In your case a loan of Rs 15 lakh at say even 10 per cent interest,will effectively mean an EMI outgo of nearly R15,000 per month. This exceeds your total income hence you will not be eligible for this loan amount. I am a business man with around Rs 8 lakh per annum as profit. I wish to construct a house on a plot I already own,how should I go about this? Milind Waghmare,Pune You can approach all leading banks for your home loan. The bank will first evaluate your work profile your current assets and the supporting documents and then sanction a loan. You will need to keep supporting documents for your income and property. As you already have a plot of land on which you need to construct your home,you should not have problem obtaining a home loan as your bank will take into account your current net worth as well,before sanctioning a loan. Also,you will be able to increase the loan amount based on this factor. I want to take a car loan of Rs 3 lakh for 7 years. Which bank do I approach? Sunil Nair,Mumbai The time frame for most car loan repayments ranges from 12-60 month.Some PSU banks offer longer tenures. At an interest rate of 12 per cent,your EMI will work out to Rs 6,700 for a 5 year tenure. You could opt for this,if you can comfortably shell out a few thousands more as this will save total interest outgo and is cheaper in the long term. The expert is CEO,Bankbazaar.comFor your personal finance queries please email at expressmoney@expressindia.com
