Defaults stay at Cibil for 7 yrs
I recently tried to take a loan against a life insurance policy, which I bought in 2011. However, the insurer said the policy is not eligible for loan until three premiums are paid. Can I pay two premiums in advance and become eligible for the loan?
Rajender, Via email
Most policies do not acquire a surrender value till they have completed three years (even if the premiums are paid in advance). So you are not likely to get a loan on a one-year-old policy even if you have paid required premiums in advance. As very few insurance companies grant credit on policies, you can approach the bank, which has a stake in the insurance company whose policy you have purchased. Secondly, when you have the ability to pay two premiums in advance, I can’t see the rationale for you to avail a loan unless the first year’s premium has appreciated dramatically.
I had defaulted on credit card payments from 2008 as I lost my job. I have a job now, but I cannot repay the dues as I have separated from my husband and need to take care of my son. Does this affect my son’s credit rating? Is there a way to settle the issue? How long does a bank keep the default information?
C. Jyothi, Via email
The bank can keep the records for as long as it wishes to. The bank would have reported your payment history to the credit bureau, which normally keeps the record for seven years. This impacts your ability to borrow from any bank in the future since all lenders have access to the payment history from the credit bureau.
Your best bet is to wait till your financial situation stabilises somewhat and you are able to save. After that you can try and create a good credit record by borrowing against the security of the savings. Such loans are available irrespective of your payment history. In any case, your son will not be affected if he borrows independently against his own income without using your guarantee.
I am confused about the demat account opening charges, AMC, intraday brokerage charge and brokerage charges etc. Which account is the best?
D. Chandrashekhar, Via email
Your question is not very clear. You may want to trade in equity shares through a broker. For doing so, you need to open a demat account. There are fixed charges for opening a demat account and an annual charge, normally referred to as annual maintenance charge. The broker will give you broking rates depending on your volume commitments and he may give different brokerage rates for transactions squared off during the day and those that result in actual delivery in the future.
Harsh Roongta is the CEO of Apnapaisa.com. You can send in your queries to movingmoney@deccanmail.com
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