Readers' Corner: Mutual Funds

I want to take a loan against my ancestral home in my village, which is in my name. Since it is not in a very good condition, can the bank refuse the loan? Is that a criterion for approving or rejecting the loan?

In the case of ancestral homes, the first thing lenders ascertain is that the title flow to the current owner is clear and marketable. Further, lenders shall verify the source of income and repayment capacity of the loan to be availed. In addition, lenders do have guidelines on the underlying property in terms of the construction quality, residual life of the property, fair market value, plan and layout approvals and general upkeep. Hence, this does play a very important role in the loan approval/rejection.

Is there any difference if I buy an insurance policy from my bank or from an agent? Will my relationship manager help me with renewal premiums and at the time of claims?

Insurance is only one of the many financial products a customer avails from a bank. In that perspective, the level of engagement between a customer and a bank is very high. Hence, the role of an advisor can be essayed better by a bank, as the financial planning process would throw up multiple options and provide a better financial plan, including insurance. As a long-term relationship partner, the bank would service all financial requirements, including renewal and claims servicing.

What happens to the reward points I earn on my credit card? May I use it to pay off the credit card dues, instead of redeeming it for gifts?

The programme varies between banks. They could be based on catalogue based gifts and/or allow redemption options like gift vouchers, transfer to air miles, credit into the statement account, utilisation for online purchases. You would be able to utilise the points that you have earned on your credit card as a credit into your cards statement if the programme under which you have earned the points allows for it. This would vary from programme to programme.

My credit card was used fraudulently. I have lodged a complaint with the bank and the police. If I don't pay that amount, will it affect my credit score? What about the dues on my credit card?

If you raise a dispute for a transaction on your credit card, depending on type of transaction, your bank may offer a temporary credit. In case that is not possible, it's advisable to pay the outstanding till the investigation is completed by the bank, after which the transaction would be reversed.

Rajiv Anand,
group executive & head, retail banking, Axis Bank, answers your questions

The views expressed are expert's own. Send your queries to yourmoney@bsmail.in