Banking: Jairam Sridharan

I have 26 months left on my home loan repayment. I want to lower my interest rate for which I am ready to pay a fee. But my bank is saying since the left over tenure is less, they cannot reduce the tenure but can reduce the monthly EMI amount? Why is this?
Most banks allow customers to align their rates with prevailing market rates, on payment of a fee. This can be done either through a lowering of tenure, or through a lowering of EMI. Usually, this facility is offered without limitations on tenure remaining, but it appears that your bank has a 'minimum remaining tenure' criterion. Anyway, if you are OK with the fee, you should still go ahead and take the lower EMI option, thus reducing your total payout over the 26-month period remaining for you.

I applied for a credit card from a bank, where I do not have an account, as I liked the features of the card. But it got rejected? Why? Don't banks give credit cards to non-customers?
Banks tend to prefer offering credit cards to customers who have their accounts with them. However, many banks will indeed offer cards to other customers. Norms for approving card applicants are different in every bank, and take into account things like past credit history (or lack of one), your relationship with the bank, etc. If you are not able to get a card issued right now, another path is for you to seek a "secured credit card" - many banks offer these cards, linked to FDs, as another alternative for customers who don't pass their filters right now. It helps you build (or improve on) your credit history, and gets you ready for a regular credit card over time.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Jairam Sridharan, President, Axis Bank , answers your questions