By Chaitali Dutta
Is the interest rate on a personal loan fixed for the whole tenure?
Very few bank loans in India are on a fixed interest rate basis. Personal loans are also on a floating rate.
l I paid my car loan a year ago. Now, I want to sell it but the buyer is insisting that I get a NOC from the bank and inform the Pune RTO. Why?
For any hypothecated vehicle, the proof of payment of all outstanding by a No Dues certificate as well as order to vacate their lien to the RTO (form no 35 in duplicate), is mandatory. Otherwise, the purchaser will not have clear title to your vehicle. Both documents will be given by thebank from where you availed the loan.
I have some spare money. Should I use it to pay off a part of the loan or double the amount of EMI?
—T R Subbu
Very pertinent question. From purely the financial benefit point of view, you should make a bulk repayment in your loan. The full amount will get reduced from your principal outstanding. Furthermore, continue paying your original EMI, that way your loan tenure will get reduced.
I plan to avail a home loan with my married sister as a co-applicant to buy a flat for my mother. Will the bank raise any objection if she is the co-applicant?
If a brother and a sister (unmarried/ widowed/ divorced) are staying under the the same roof, they may avail of a home loan together but need to be co-owners.
Is there any need to check my CIBIL score before applying for a home loan?
If there has been no default in loan repayment or overdue on your credit card, there is no need to check it. If your earlier score was not satisfactory and you took some steps to bring it up, you should check your score before applying for a loan.
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My home loan application was reject-ed by SBI as I did not have a regular income last year. I joined a firm two months ago. What should I do to get a loan from a bank/NBFC?
The criterion for checking for regular income depends on the banks. Usually, they look for a confirmed job or at least a six months history. Most banks/NBFCs will not give a loan while an employee is in the probation period.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to firstname.lastname@example.org