Express Money: Ask Us

The most important aspect is the interest rate of the loan. Now that interest rates are cooling off and are expected to drop in the coming months,the timing might just work in your favour. Remember to compare the total loan cost with every offer before you opt for a deal. It also helps to save as much down payment as possible as more the down payment the lesser the loan amount,which in turn helps you save on the borrowing cost. Most banks fund only 80 per cent of the property cost and also provide you a loan for an EMI that is only about 40-50 per cent of your income,provided you do not have any other debts.

I have taken R 2 lakh loan on my credit card. How can I increase this loan amount?

Manju Negi,Pune

The amount of loan you can avail on your credit card depends on several factors. These include your repayment track record,your current credit standing,the maximum loan amount you are eligible for,the actual credit limit on your card etc. You could try requesting your bank to increase your credit limit and the maximum amount of loan you can avail on your credit card. You could also supply documents that cite higher income like your IT

returns,your past payment track record etc to support your request. You could be considered for an upgrade in your card status that might enable you to apply for a top up loan. Having said that ,we strongly recommend that you compare interest rates between your credit card loan and a possible personal loan or a secure loan like a gold loan that your bank can offer.

I need a loan to repair my ancestral home. Are such loans available in the market?

Shiv Gupta,Mumbai

Yes,home loans are available for renovating existing homes as well. Most banks which provide home loans,provide home renovation loans as well. As far as EMI and tenure relationship goes,the higher the EMI,the lower the tenure and vice versa. However do bear in mind that even if your EMI is comparatively less in a loan with a longer tenure,your total interest cost goes up.

The expert is CEO,Bankbazaar.com

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