Repeated delays in repayment will hurt

Oct 09, 2011 - Harsh Roongta

I had delayed making my credit card payments by two days. Will this count as a default? Will it affect my chances of getting a home loan?
Ramesh G.
The delay in payment by two days will not hurt your credit standing. It is persistent delay or default, which affects your credit rating. Therefore, you should not face any problem in getting a home loan. But make sure that such delays are not repeated.

I want to take a loan for doing an MBA degree. What are the requirements and repayment structure?
K.K.
You can take an education loan to fund your MBA by fulfilling some criteria: You should be an Indian national, aged 16-26 years or any other range specified by the bank, have a good academic track record, and your parents or guardians must have a stable source of income to be guarantors. Most of all, you should have chosen a recognised university in India or abroad. You start repaying the principal portion of the education loan six months to a year after finishing the course, or when you get a job, whichever is earlier. Repayment is done on an EMI basis. If you are not able to get the job within a year after completing the course and are unable to pay EMIs, your guarantors will be liable.

I want to know the processing, funding and release of payment in composite (plot purchase and construction) loan.
R. Govindan
A composite loan is taken for self-construction of a house. The loan is given to finance the cost of land as well as the cost of construction of property on such plot of land. The banks will require documents in respect of proof of income, identity, residence and documents relating to title of the property being purchased. You will have to submit an estimate of the total cost of construction, certified by an architect and civil engineer. The cost of the plot to you or the current market value will be taken into account to work out the total cost of the project provided you commence the construction within a reasonable time after purchase of the plot. The bank will determine the home loan amount eligibility based on the total cost, which includes construction cost and the cost of the plot. The loan will be released in parts, based on the progress of the construction, and after you have brought in your full contribution. The bank may insist on sending its own technical personnel to assess the progress of construction. Some banks are not comfortable funding self-constructed properties.

Harsh Roongta is the CEO of Apnapaisa.com. You can send in queries to movingmoney@deccanmail.com

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