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Today, Prashant Joshi, managing director and head, private & business clients (India), Deutsche Bank, answers your questions
I recently approached a bank for a housing loan but it allowed only 40 per cent of my take-home salary as loan. I need a higher amount. If I apply for the loan jointly with my wife, how much more can I borrow?
Most banks' lending policies on home loans estimate a borrower can pay between 40 and 60 per cent of his income towards equated monthly instalments (EMIs). As a thumbrule, this means if you have a monthly salary of Rs 50,000 a month, the bank estimates you can pay Rs 25,000 as monthly EMI. This works out to a loan amount of Rs 25 lakh, to be sanctioned at a rate of interest of 11 per cent a year and a loan tenure of 20 years.
If your wife has a regular source of income, that can be clubbed to yours' to enhance the amount one is eligible for. But, typically, the thumbrule of 40 to 60 per cent of total income is applicable.
I want to open a Public Provident Fund (PPF) account. Is it true only public sector banks offer this service? Will I first need to open a savings account with the bank before opening a PPF account?
With the latest changes, you can also open a PPF account in private banks. Banks allowed to offer PPF accounts include State Bank of India and its associate banks, Union Bank of India, Bank of Baroda, Bank of India, Vijaya Bank and IDBI Bank. Private sector banks ICICI and Axis are also allowed to provide PPF accounts. However, some branches of these banks may not provide the service.
To your second query, opening a savings account is not mandatory for a PPF account.
Shopkeepers have started asking me to key in the PIN number when I use my debit card to make payment. But in many shops, it does not happen smoothly. Why is it so? I am also afraid someone might get hold of the PIN while I am keying it. Is this possible?
To make your card transactions more secure, the Reserve Bank of India (RBI) has mandated a PIN entry for every debit card purchase transaction in India. You might face an issue transacting if the card swipe machine is not compliant with a process such as PIN-based transactions. To safeguard the PIN, never disclose it to anyone, including the merchant. Always enter the PIN yourself at the purchase terminal and cover the keypad with your hand while entering it. If you suspect someone has noted the PIN while you were keying it in, please change it immediately.
The views expressed are expert's own. Send your queries to yourmoney@bsmail.in
