BANKING: Manju Srivatsa

My son and I wish to take an education loan on behalf of my daughter. He is a green card holder in the US. Can we jointly apply for an education loan? If yes, is it important for him to be present during the entire loan process?
The applicant needs to be the student on whose behalf the facility is sought. He/she should be an Indian and should have secured admission in India, or abroad, through a recognised selection process. In this case, you can be the co-applicant. As a practice, a non-resident Indian cannot be the co-applicant/guarantor to the facility.

My wife had taken a personal loan to fund our travel plans, which were prematurely cancelled. Since the loan has already been approved and disbursed, is it okay to utilise the money for other personal expenditure and proceed with the repayment of the loan as planned? Should we intimate the bank about the variation in our plan?
While it is mandatory for the borrower to mention the use of funds at the time of loan availment, it is always in his interest to keep the financier informed of any change from what was initially declared. Having said that, the loan amount may be utilised for an expenditure different from the one originally applied for, as long as it is not for speculative purposes.

I have booked a foreign trip with a leading tours and travel company. They are also full-fledged money changers (FFMCs). They are providing me with great offers on exchange currencies. What is the difference between an FFMC and a bank? Do both offer identical rates?
Both, banks and FFMCs, are authorised by the Reserve Bank of India to buy and sell foreign currency, travellers’ cheques (TCs) and prepaid travel cards. You may buy foreign currency/TCs/travel card from an FFMC or a bank. The rates, however, differ across different banks and FFMCs. You may research about these to find out who is offering the best rate. However, instead of buying currency/TCs, which is fraught with risks and handling problems, you may also choose to buy a prepaid travel currency card, which can be loaded with the respective amount. Such cards are safe and secure and are very convenient to use — just like your normal debit/credit card. FFMCs and banks offer such cards in all major currencies.

The writer is the president, retail banking, Axis Bank. Send your queries at yourmoney@bsmail.in