Express Money: Ask Us

Personal loan interest rates need not be the same for every individual. One key factor that determines your interest rate is your credit history,which is basically a record of your past repayment of loans and credit card bills. Before approving your loan a financial institution always checks with CIBIL on your loan repayment track record. A good repayment track record has its benefits. It could fetch you a higher loan amount at a lower interest rate as it is standing proof for your money management capabilities. In case of a bad repayment record,you will be charged high interest rates and you could also find it difficult to obtain a loan.

I took a personal loan 3 months back but I am struggling to make payments due to job loss. What should I do in this case?

Manusi Batra,Mumbai

Do approach your bank without delay and keep them informed of the situation. To solve your immediate problem,you could try to pledge any security you have like gold,shares,and obtain a loan on them to repay your personal loan. After you obtain a new job,you can repay the loan and reclaim your pledged assets. Else,you can negotiate with the bank to try and recommence your personal loan EMIs once you land a job. You could also approach a credit counseling center for assistance. They will evaluate your finances and help you figure out a way to repay the loan; else they will try and negotiate with the bank on your behalf to come up with a solution feasible to both you and the bank.

I recently read that the rent we pay is also deductible under section 80GG,25 per cent of total income,or excess of 10 per cent of ones total income is considered for the same? I pay R 10,000 as rent per month and would like to avail the benefit.

Chi Lee,Pune

This is for self-employed people who do have any HRA provisions to account for the rent they shell out every month,and not applicable for those who want to claim HRA benefits. So if you are a salaried individual,this does not apply to you.

Adhil Shetty is CEO of Bankbazaar

For your personal finance queries please email at expressmoneyexpressindia.com