Your queries: Loans – You can close car loan after 6 months

financialexpress.com:

By  Chaitali Dutta

As I am planning to buy a car with a loan, can I repay the amount within six months without any penalty? —A R Srinivasan The floating rate car loans can be prepaid after six months of taking the loan. Most banks will restrict full repayment within six months of availing the loan.

I retired from service four years ago and my wife will retire this year. Our daughter wants to go abroad for higher education. Can we apply for an education loan for her and can we show our house as collateral? —Pawan Gupta If the course is for one year the education loan is possible. If it is for two years or more, you have to offer the collateral which could be multiple times the value of the loan. Typically, the interest on the loan is paid by the parent till the child completes education although it is not mandatory. The EMI has to be borne by the student once she starts working/after six months of completion of the course.

Is it better to go for a repo linked lending rate for home loan? —Sudip Kumar Yes, absolutely. We expect a reduction in the interest rate, probably by the second quarter of next year. In such a situation, with the repo rate linked loan, you can expect the interest rate to also reduce proportionally.

I am in need of some money for one year. Should I opt for a personal loan or take a loan against securities? —Raman Adhikery Taking a loan against securities is a better option as it is cheaper. The latter being a unsecured or collateral-free loan comes at a higher interest rate.

Is the interest rate for personal loan based on the credit report? —Vijay Pamar Yes, most loans, specifi-cally personal loans, would be priced within a range. An existing relationship with the bank, a higher repayment capacity,