Ask Us

If you choose to use the capital gain from selling your existing property to buy a residential property,you will not be taxed and there is no tax liability from such a sale.

I need R 3 lakh car loan for a period of seven years. Which bank would be better?

—Ramesh Singh,Chandigarh

The time frame for most car loan repayments range from a year to five years. Only a select few offer six year tenures as well. Considering you take R 3 lakh at an interest rate of 12 per cent,your EMI will work out to R 6,700 for a five year loan tenure. Its best if you opt for a five year tenure,which will save your interest outgo from your total loan cost.

Can we get loan on ULIPs?

—Sujit Ramnath,New Delhi

No,ULIPS do not offer this facility and according to a recent IRDA ruling,loans cannot be sanctioned against such products. However,you can obtain a loan against the surrender value of an ordinary life insurance policy with most banks.

Is it possible to get a home loan of R 15 lakh if the salary is R 9000 per month?

—Harnam Singh,Bhatinda

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 R15 lakh even at 10 per cent interest rate,will effectively mean an EMI outgo of nearly R15,000 approximately per month. This exceeds your total income,hence you will not be eligible for this loan amount.

Is it possible to shift the debt on current credit card on a new credit card?

—Rajiv Masand,Gurgaon

There is a facility called balance transfer on your credit card which allows you to transfer existing debt. It helps you close a difficult debt. It actually comes with either an interest free period or a nominal interest rate is charged for a limited period. In order to make the most of the balance of transfer facility,make sure you make the maximum payment during the low interest or interest free period so that your finances are not impacted when the actual interest rate kicks in. More importantly,note that moving from one card to another provides you with temporary interest relief. Also,do remember any new purchases and expenses on the card on which you have opted for balance of transfer will not fall under the low or zero interest purview.

—The expert is CEO,Bankbazaar.com
For your personal finance queries please email at expressmoney@expressindia.com