Debt Counselling: Sanjay Agarwal

The existing limit of my credit card is Rs 25,000. I am planning to travel next month and want to get this limit increased for my travel period. Is it possible?
Card issuing banks have different policies for temporary enhancement of credit limit. Some banks allow this for one or two transactions only, when you make a specific request to them after having reached your credit limit. Others may approve an increased limit once you send them your current income documents before travel. You need to call the customer care executive of your card-issuing bank to know their policy. An easy way out can also be to credit the extra amount in your card account before your travel, so that you get the benefit of spending this additional amount without enhancing the credit limit.

I had taken an education loan of Rs 4 lakh for my son two years ago. His new job is not paying him enough to repay the loan. Can the bank stretch the loan tenure?
Extension of loan tenure is a discretionary decision that banks take on the basis on genuineness and merits of the case. No penalty is usually charged for such extension of loan tenure. However, you will have to pay the additional interest for the extended tenure at the prevailing rates.

A few instalments of my car loan remain unpaid. I could pay these in the next six months, but I have to meet some personal commit-ments. So, if I surrender the car to the bank, will it consider the deal closed? Or should I sell the car and repay the loan amount?
In India, a loan is considered repaid only when all dues are settled with the bank, unlike some other countries where returning the asset results in closure of the loan. In your case, speak to the bank manager and arrive at an acceptable repayment plan spread over the next six to eight months. Normally, banks are not averse to such solutions. However, if this is not possible, it is advisable to sell the car with the consent of the bank and repay the due amount. Any shortfall will have to be made good by you, and the bank will refund you any excess amount.

 

The writer is senior VP and group head (retail strategy & branding) at Arcil. Views expressed are his own.