4 days ago

Loan Advice Covers Overdrafts, Gold Loans, NRIs And More

A home-loan overdraft lets extra money in the account reduce the amount on which interest is charged.

Borrowers must still pay their regular EMI.

People borrowing against securities are assessed using the securities’ value on the day the loan is approved.

Equity securities usually receive a higher margin because their values can change more.

Gold loans can be repaid through monthly installments or all at once at the end.

A business-loan applicant needs a detailed plan showing expected growth over three years.

A lender may also ask for collateral.

Non-resident Indians can borrow from Indian banks to buy property in India, but a co-borrower must be listed as a joint property holder.

Key facts

Home-loan overdraft: Surplus funds parked in the account can reduce the outstanding amount used to calculate interest.
Home-loan repayment: Regular EMIs remain payable even when the home loan is structured as an overdraft facility.
Securities valuation: The valuation is considered on the day the loan against securities is sanctioned.
Gold-loan repayment: Borrowers can repay through EMIs or as a lump sum at the end.
Business loan: A lender may require a business proposal covering three years of expected growth and may also require collateral.
Credit-card conversion: The article states that converting outstanding credit-card dues into a one-year EMI involves no extra cost.
NRI property loan: NRIs can take loans from Indian banks to purchase property in India; a co-borrower must be named as a joint holder in the purchase documents.

financialexpress.com · 4 days ago