Business Standard / Mumbai Nov 05, 2009, 00:19 IST
I am a 40-year-old spinster. I tried applying for a loan with my sister, who is 37-year-old and also a spinster. We both are salaried and want to buy a house. Our loan application was rejected by two banks. I am unable to understand why this happened. None of us have any loan defaults. Is there any criterion followed by banks for a joint loan?
Only spouses are considered by banks for the purpose of joint home loans. In exceptional cases, other relationships such as siblings or parent with offspring relationships can also be considered. However, as mentioned, these are exceptions and at the discretion of the bank.
I had taken a personal loan of Rs 200,000 from a bank last year for a three-year tenure. I want to close the loan. Is it possible to negotiate the foreclosure charges to reduce the financial strain?
Negotiations can be initiated for relaxation of foreclosure charges with the lending bank. However, the bank is not obliged to agree to a change in terms, which have been agreed to between the borrower and the lender at the time of sanctioning the loan. Foreclosure charges are, usually, indicated clearly in the terms of sanction.
My car loan is coming to an end in mid-December. I want to sell the car and buy a new one. Which papers I should take from the bank to ensure I don’t have to run around later?
Once you have cleared all your dues against the loan, please ensure that you obtain from the lending bank the following documents:
a loan closure letter
a ‘no objection certificate’ for the registering authority/ RTO
‘Form No 35’ (in duplicate) and
a ‘no objection certificate’ for the insurance company.
I am renovating my house. I estimate that it will cost me around Rs 8-9 lakh. Will I get a home improvement loan of this amount? Will the bank mortgage my property for this amount? Neither I have any on-going loans nor this house was bought through financing. What are the options I have?
Yes, you can apply for a home improvement loan for this purpose. The bank will create a charge on your property for extending this facility. The quantum of loan would depend upon the market value of the property. You may also choose to take a ‘loan against property’ where you get greater flexibility towards the end-use of the loan funds. However, not all lenders in the market offer this facility.
Manju Srivatsa is president (retail banking) of Axis Bank.Send your queries at yourmoney@bsmail.in
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