Readers' Corner: Banking

I want to take a loan for constructing a plot on my ancestral land. Are the lending rates for purchasing a plot on a loan same as for purchasing a ready property? Will the amount of loan be calculated on the value of the land or only my income? Will repayment start only after I finish constructing the house?
 
The rate of interest charged for construction loan could vary for different institutions. The amount calculation depends on both the financial eligibility and property/construction cost. Construction loans are disbursed on a pro-rata basis depending on stage of construction and repayment starts from the date of first disbursal.

 
I made an error in the account number while transferring money to my daughter through online banking and the money has gone into another account in the same bank. How can I get it back? My branch is in another city, as I have been transferred.
 

In such a case, a customer may contact his nearest bank branch who in turn will contact the beneficiary branch/bank for reversal of the funds. Note that such cases are taken up on good faith with the other bank for recovery and recovery is not guaranteed.
 
What does the downgrade of a bank mean for its customers? If I have a fixed deposit in the bank and it gets downgraded, is my money safe? Should I worry about the bank going bankrupt?

 
Under the provisions of Section 16(1) of the DICGC Act, deposits up to Rs 1 lakh is insured. This deposit insurance is applicable per depositor(s) for deposits held by him (them) in the "same right and in the same capacity" in all branches of the bank taken together. Many a time, this deposit insurance might not be enough for a lot of customers and so it is prudent to only keep deposits with highly rated large banks. Customers should also periodically review the credit ratings of the banks where they have deposits.
 
After my home loan is over how long will it take for me to get the property documents? Is there any specific process to be followed in order to get the documents?

 
A customer normally gets his/her home loan documents in 15-20 days from the receipt of closure request by the bank. Bank will hand over the original property documents along with the closure letter. For this all the applicants who are owners of the property should be present at the bank premises when the documents are handed over, with their original signature and photo identity proof.
 
If one of the applicants who is a co-owner cannot be present, the other co-applicants/representative should carry a Power Of Attorney (POA), ID-cum sign proof of the property owners and original
 
ID cards of the POA holders for verification. All the copies are to be self-attested.

 
My uncle who passed away left his house to me. He had taken a reverse mortgage against the house. Since I cannot afford to repay the loan entirely, can I convert the reverse mortgage into a regular home loan and repay it by Equated Monthly Installments?
 
In such case, you as the legal heir of the loan applicant(s) should pay off the loan in entirety before taking possession of the property.
 The writer is Executive Director, Axis Bank. The views expressed are the expert’s own. Send your queries to yourmoney@bsmail.in