Don’t miss the latest developments in business and finance.

<b>Readers' Corner:</b> Debt counselling

Image
Sanjay Agarwal
Last Updated : Sep 10 2015 | 7:39 PM IST
My credit report is showing I have an outstanding payment on my car loan, though I paid back the entire loan amount last year. I have a letter from the bank to prove it. When I applied for a home loan, the bank told me about my credit report. How can I get my credit report corrected?

To get the credit report corrected, the only way is to contact the bank from where you had taken the car loan, as it can only give the corrected data to the credit bureaus. In case they don't respond, you may contact the nodal officer of the bank for assistance. Simultaneously, you may also show this letter to the bank where you have applied for home loan and convince them about your credentials.

I have an outstanding of Rs 50,000 on my credit card. Since I cannot pay the entire amount at one go, I am paying Rs 5,000 per month. Can I continue using my card before paying off the entire amount?

Also Read

Most credit card issuers allow minimum payment of five per cent of the amount due for each billing cycle to classify the account as regular and continued usage of the card. Since you are paying more than that I see no problem in your being able to use the card. However, this is a very expensive loan and I'd recommend you to ask your bank to convert these dues in EMIs, which will attract lower interest rate.

According to my salary and age I can get a loan up to Rs 50 lakh. But I need Rs 55 lakh loan. How can I raise this additional amount?

Maximum loan eligibility based on the value of the asset to be financed, like a residential property, is of greater significance and most banks don't make exception in that. But when it comes to eligibility based on income and age, different banks have their own criteria and maximum eligibility is likely to be different. But in either situation speaking with the bank and convincing them is helpful. If you fail, I'd recommend you to speak with other banks and NBFCs.

My wife and I have taken a reverse mortgage loan and we have no children. Recently my ancestral property was sold. I am entitled to a share from that. Does it make sense to pay off my reverse mortgage loan with the proceeds received from this sale?

Reverse mortgage loan can be prepaid by the borrower at any stage. Also, unpaid loan along with accumulated interest has to be settled by the legal heirs of the borrowers, who may not necessarily be their children, after their death either by selling the house property or otherwise. The decision to do the part prepayment or not depends on your requirement of liquidity while you are living, expected expenses and how much loan you want to leave for your heirs to settle. If you have no heirs then of course it makes more sense for you to use the money as per your own priorities.

Sanjay Agarwal,
Executive vice-president - small and medium enterprise & retail business, ARCIL, answers your questions

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

More From This Section

First Published: Sep 06 2015 | 10:35 PM IST

Next Story