Your Queries: Do banks give joint loans to sisters?
By Chaitali Dutta
My sister plans to buy a flat funded by a bank loan. Can I be the co-borrower for her so that the eligibility for the loan amount is higher?
—Avdesh Singh
This will be difficult as banks do not approve loans to two sisters or a brother-sister duo due to inheritance laws prevalent in India.
I had taken a home loan of Rs 50 lakh in 2018. Even after paying EMI for five years, my principal outstanding remains almost the same. What should I do to reduce the principal outstanding?
—Ritesh Mathur
On a loan of Rs 50 lakh with an interest rate of 8.5% for a period of 6 years, the outstanding should be about Rs 43 lakh. This situation arises as 75% of your EMI is going towards payment of interest, and only the remaining 25% goes towards the reduction of the principal. This ratio keeps on getting better as the loan gets older, with regular payment of EMIs. If you have surplus funds, you may pay off part of the loan which will go entirely towards the reduction of the principal outstanding.
I want to take a loan of Rs 10 lakh to buy an EV car. Will the bank finance the entire amount of the loan?
—Sanjay Gupta
As with all vehicle loans, there is a portion that is the contribution by the purchaser. This percentage may vary from 15% to 25%, depending on the institution you are taking the loan from.
I have four credit cards. As I plan to close two of them, what would be the impact on my credit score?
—R S Vishwanath
Closing of credit cards where there are no overdue amounts, do not affect your credit score.
Last year, I prepaid my home loan and have got back my documents. Now I want to take a loan to renovate my home. Will the bank give a renovation loan?
—Arvind Tyagi
Yes, this is possible, but it will be as a loan
