Banking: Prashant Joshi

I am expanding my business in two cities outside India. Is it possible to take a loan for property abroad from an Indian bank?
You will need to approach an Indian bank with branches in the cities where you are purchasing the property. Banks in India generally do not fund for property purchases outside the country.

My fixed deposit with an interest rate of 10 per cent is maturing in three months. Is it possible to extend the tenure of the deposit? Will I get the same interest rate on extention?
It is not possible to extend the tenure of the same deposit, as it is a legal contract between the bank and the customer. At the time of maturity, the bank will need fresh instructions from you on deployment of the maturity proceeds of the fixed deposit.

However, if you are unable to provide these instructions on maturity of the deposit, some banks have the facility of auto renewing the deposits for an identical tenure. The interest rate could be increased, decreased or remain unchanged.

I want to open public provident fund (PPF) accounts for both my child (aged 7) and my wife (homemaker). Is it possible? I already have one in my name. Will I get additional tax benefit?
A PPF account can be opened in the name of the minor with you as the guardian. You can keep contributing the PPF amounts year-on-year. Similarly, a PPF account can be opened in your wife’s name. However, additional tax benefit will not be available in your name.

I want to construct a house in my native place, but there is only one branch of Punjab & Sind Bank. Can I take a home loan from a bank in my resident city (Mumbai)?
A customer can avail a home construction loan from any branch of a bank that is present in both locations — place where the underlying asset is present and where he/she resides.

I run a website (proprietary firm) from my home, which is on rent. Can I open a current account in my company’s name? What are the documents required?
You can open a current account in the name of your proprietorship firm even if you are operating it from a rented premise.

You will, however, need to submit the following documents:
— two documents issued by any government authority to establish the entity’s existence like shop and establishment certificate; sales tax, service tax or VAT registration or copy of tax returns.
— copy of lease agreement for address proof
— any document to verify your identity, signature and address
— a copy of your PAN card

The writer is the MD & head, private & business clients (India) of Deutsche Bank. Send your queries at yourmoney@bsmail.in