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Yes,this is a solution that can offer temporary relief when you are stuck with a heavy credit card debt and do not want to add further to the interest burden. A low interest or zero interest rate period during the initial days of owning the card is an advantage that can help you close out the existing debt from the old card. There could be other charges involved like a processing fee,which can be in the range of 2 per cent and 5 per cent of the total amount. This could be expensive depending on the amount of debt that you need to transfer.

What is e-gold? How can I purchase it?

Pradyot Kumar,Mumbai

It is simply electronic gold. This facility allows investors to buy gold in a dematerialised form.

Investors can buy in the lot of one unit of e-gold which is equivalent to one gramme of gold. You have to open a separate demat account from a list of depositories. The list of depositories can be taken from the NSEL website. The investors may choose to sell the e-gold whenever they want and get the cash or may take delivery in physical form from any of the designated centres.

I plan to take up a home loan soon. Is it better for me to consider my spouse as a co-applicant?

Sheetal Rajput,Lucknow

Most households these days belong to the double income category and when you apply as co-applicant for your home loan,your loan eligibility increases,helping you gain access to a good loan amount. However,the emphasis more often is on spending than saving resulting in procuring a higher loan amount than what was planned initially. It is best to wait till you save a considerable amount as down payment before opting for a home loan.

What are the aspects I should consider before opting for a home loan switch?

Sanjeeb Mohapatra,Kolkata

The obvious aspect is interest rate. Lesser interest rate will result in significant savings in the total loan cost. Remember to add the processing fee to the equation as well. Also,remember that when you shift your loan,the entire property verification process for your home loan is repeated from scratch. Hence,try and negotiate if your existing bank can provide you a loan conversion option instead if the interest rate between you and a new borrower at the same bank is significant.

The expert is CEO,Bankbazaar.com
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