Debt counseling: Sanjay Agarwal

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I have problems repaying a home loan. Can I withdraw from my provident fund to repay it? What is the procedure?
You have not mentioned if you are talking about personal provident fund (PPF) or employees' provident fund (EPF). In case of PPF, a loan can be availed for a maximum period of 36 months after completion of three years and a withdrawal can be made after six years. I would suggest you go to www.ppfaccount.in and www.epfindia.com to understand the entire process of taking a loan or withdrawal applicable to your PF account.

I have run up an outstanding of Rs 1.2 lakh on my credit card. Should I take a personal loan to repay it?
Revolving credit on the credit card is the most expensive loan since you not only pay highest interest rate on this, which is generally in the range of 40 per cent per annum, but also forfeit the right on interest-free period available on fresh purchases till the due date. Instead, you pay interest on all purchases from the date of purchase itself. To avoid this, you have to settle the entire dues once for which you have various options available, in the order of reducing interest rates, like conversion of the dues in equated monthly installments (EMIs) with the same bank, taking a personal loan, taking a gold loan, loan from employer, PF or even against an existing fixed deposit with a bank. You may choose the one most suited to you.

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
Today, Sanjay Agarwal, executive vice-president, small and medium enterprises and retail business, Arcil, answers your questions