Ask Us: Housing loan

Banks offer anywhere between 50-80 per cent of the value of the security,provided as the loan amount depending on various factors. PSU banks are a good bet for such loan products. However,judging by your current financial circumstances,its best you try and liquidate some of your assets rather than opt for another loan,which you will need to repay within a specific time frame on a regular basis.

I need an education loan for graduation in nursing from Melbourne. I have to pay AUD 42,000 as tuition fee and AUD 4,000 as miscellaneous. I would need a loan up to R 16 lakh. My father passed away four years ago,leaving a house which I can mortgage. Please advise.

Manjari Sinha,Lucknow

Your requirement for a study loan falls under the highest bracket of R 15-20 lakh. Usually most banks don8217;t offer a loan above R 15 lakh for higher studies abroad but most cap it at R 20 lakh,where required. Of course this varies from bank to bank and if your bank is open to sanctioning this amount,then they would expect the loan to be covered 100 per cent in value with an equivalent security like a property or other forms of security like NSC,units of UTI,LIC policy,RBI bonds or any transferable government securities. If you have a property to mortgage perhaps you could try to take a loan against property to fund your education. Do talk to various banks and choose the best option along with the bank you are currently dealing with.

Who can be the guarantor for my home loan? Can my father stand as a guarantor? Does the guarantors property value matter?

Sanjana,Chandigarh

Anyone who can vouch for the repayment of your loan and who has considerable assets like property,regular salary and other such assets can be a loan guarantor. Being a loan guarantor is a tricky business,as if you dont pay up the loan due to some reason,then the onus falls on the guarantor to repay the loan. Though property value as such may not be that much of an issue,the bank will check if the guarantor has the capacity to repay the loan if due to some reason,you are unable to do so.

The expert is CEO,Bankbazaar.com
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