Unusual Credit Card And Loan Queries

By | May 30, 2018

CVV on your Credit Card faded? Got a loan but want to use your own funds now? We answer these and more.

There are some queries that are quite strange, unheard of or probably don’t occur too often. Those are the kind of queries that we love to answer. These are strictly related to Credit Cards and loans, of course! Ready?

1. Query: My Debit Card’s CVV number has faded. How can I get the number back?

Answer: The solution is to get your CVV tattooed on your arm. Just kidding! You might have to get a new card if your CVV has faded. Banks will not reissue CVVs. They are given only once along with your card. If your CVV has faded, banks might consider the card to be damaged. So, you might have to ask for a new Debit Card.

2. Query: Can I transfer debts from multiple Credit Cards to one Credit Card using the balance transfer option?

Answer: Of course you can! Banks allow you to transfer debt from multiple Credit Cards to a single Credit Card. However, you must check with the bank for the terms and conditions. Generally, banks provide lower interest rates or zero interest rate for a certain period after the balance transfer.

In case of transfer from multiple cards, some banks might allow you to enjoy lower interest rates or zero interest rate only for the first transfer. Also, there may be limits on how much you can transfer to your card. Usually, transfers are allowed up to your credit limit. So, it is important to understand the interest rates and the limits before you opt for a balance transfer.

Additional Reading: Should You Upgrade Your Credit Card?

3. Query: Can I buy a house in the name of my child using a Home Loan?

Answer: You can buy a house in your minor child’s name. However, such property cannot be sold without the permission of the court. However, you can form a trust, with your child/children as the beneficiary, so that there are no hassles selling the property and the property is transferred to their name once they turn 18 years.

You or your spouse can act as trustees for this trust. Note that a minor cannot be a co-applicant. So, you cannot buy a property using a Home Loan in your minor child’s name. Buying the house and then creating a trust might be the best option.

4. Query: Can I start repaying your Education Loan during the moratorium period?

Answer: For education loans, the moratorium period is given so that the student who has borrowed the loan has time to get a job that will help them repay the loan. You can, however, talk to your bank and tell them that you don’t need the moratorium period and would like to start repaying the loan. The bank might make an exception in your case. However, note that this is totally at the discretion of the bank.

5. Query: When one closes a Home Loan, is there a fee to get the original documents back?

Answer: When you close a Home Loan, the bank will charge document retrieval fees. Why? Usually, all original documents given to the bank will be divided into 2 parts. One will be the most important documents such as a sale deed or agreement to sell. The other category of documents will include no objection certificates and clearance certificates. Important documents such as a sale deed are kept in safe custody at a central repository.

This repository is managed by third parties and might not be in the same city as where the bank is located. Other documents will, however, be retained by the bank branch where you got the loan. So, document retrieval charges will be the cost of transferring the original documents from the central document repository to the bank branch where you availed the loan.

Additional Reading: Top 5 Home Loan charges

6. Query: How is tranche based EMI different from pre-EMI or are they the same?

Answer: Tranche EMI is a special facility offered by few banks where your EMI will start immediately after the first disbursal of the loan to the builder. This is for under-construction properties. You are allowed to fix the instalments until the property is ready and the total loan is disbursed.

Usually, the minimum EMI amount will be the interest on the amount disbursed. If you want to repay more, the excess amount will go towards your principal repayment. Under pre-EMI, you will pay back only the interest. There is no principal repayment until the total loan is disbursed. That’s why most lenders do not offer tranche EMI as pre-EMI is more beneficial for them.

7. Query: Does the down payment for a Home Loan have to be paid before the bank pays out any money?

Answer: Home Loans have a margin wherein the lender will provide a certain part of the cost of property and you provide the rest. Most lenders will fund only up to 90% of the property cost. This means that you need to shell out 10% to the builder form your own funds. This is known as a down payment.

Unless the lender knows that you have made the down payment, they wouldn’t want to disburse the loan. So, you might need to show the bank statement and the receipt provided by the builder for such down payment. Only after this is verified, the lender will disburse the loan amount to the builder.

8. Query: I am a senior citizen and I need a Credit Card. Am I eligible to get one?

Answer: Banks generally do not provide Credit Cards for senior citizens. However, there are some banks that provide Credit Cards for pensioners. Bank of India is one of them. They have a Credit Card for pensioners with a credit limit that will be 3 times your monthly pension. We suggest that you check with some public sector banks for such Credit Card. Some banks do provide Credit Cards against Fixed Deposit. You can check that too.

Have an unusual query? Or even a regular one? Feel free to put it as a comment on this post. We will be glad to answer it.

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