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Banks normally provide car loans for 5-7 years or for 65 years minus your current age which-ever is lower to self- employed / professionals. However,the lender may be willing to consider relaxation of this limit if you can prove your ability to repay the loan. Assuming you fulfill the age criteria and retire in two years,you can get a loan for a maximum tenure of two years,even without relaxation in age.

In cases of contingency,would credit card loans make sense?

Sheetal Sharma,Delhi

Loan on credit card is similar to personal loans and comes without the need for any documentation. The interest rate charged on this loan will be much higher than personal loans while interest on cash withdrawals,tend to be even higher. Also the loan on credit card may carry a pre-payment fee which is not applicable if you withdraw cash using your credit card. If you are in a position to pay back the amount in a few days then cash withdrawal using the credit card may be a better option.

I am an advocate and my income tax return for the last two years is Rs 2.6 lakh. Will I be eligible for a car loan?

Shardul Bhattacharya,Kolkata

Normally banks finance around 80-100 per cent of the ex-showroom cost as a loan for new car. You will have to provide your income tax returns for at least three years and proof of sufficient income. The maximum loan will be around 2.5-3 times of your average annual income for the last three years if you have no other loan liabilities.

We plan to purchase an apartment in Mumbai costing nearly Rs 1.13 crore. We have bank savings of Rs 40 lakh. For the balance we need to take a loan. Recently my husband inherited property plot worth Rs 50 lakh in Kerala. Will it be worthwhile to take part-loan against this property so that our EMI burden gets reduced?

Sanjana Bijapurkar,Pune

You will have to pay EMI for both the loans and in all probability the combined EMI would be more than the individual EMI of home loan for same aggregate amount of loan since loan against property is more expensive than a regular home loan and is also available for a shorter tenure as compared to a home loan. Go for a regular home loan and offer the plot in Kerala as an additional security only if it is required since it is unlikely to reduce the interest rate for your home loan.

The expert is CEO,Apnapaisa
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