Banking: Prashant Joshi

I have been servicing a home loan for eight years (another 12 years are left). Am I eligible for a loan against the property on this? How much can I borrow? Is the interest rate at par with that charged on the home loan?
Eligibility for the loan and the amount you can borrow would be determined by your home loan record, value of the property and income. Typically, banks are willing to lend up to 60-70 per cent of the property value (after subtracting the loan's balance), subject to their income evaluation criteria. The interest rate on a loan against property would be slightly higher than that on a home loan.

How different are prepaid foreign exchange (forex) cards from debit or credit cards in terms of charges? Which of these works out best?
When you use local debit/credit card overseas, you get charged an additional cross-currency mark-up, usually 3-3.5 per cent. However, when you use a prepaid forex card for that currency, this charge is less. Moreover, prepaid cards offer locked-in exchange rates for the amount loaded on the card. You need not worry about fluctuating rates, whereas a debit/credit card transaction would attract rates for that day.

Unlike a debit card, prepaid cards are not linked to your bank account, and do not have a credit limit assigned on it, as in a credit card. You can choose to pre-load it, with any amount. Hence, this is less risky.

Do banks shy away from lending to contractual employees? My company has employed me on a three-year contract. This contract is most likely to be renewed. But, when I approached a bank for a personal loan and a credit card, they took a lot of time to respond.
In the case of unsecured loans, like personal loans and credit cards, stability of income and employment are important. Banks primarily rely on the client's ability to repay the loan out of regular monthly income. The bank's decision to approve your application will depend on several factors, including details related to your employment, like when your contract is expiring, and the likelihood of it being renewed. This, however, may not be the reason for the delay. It is advisable to check with your bank if they need any further information to expedite your application.

The writer is managing director & head, private & business clients (India), Deutsche Bank. The views expressed are his own. Send your queries to yourmoney@bsmail.in