** Is there any relationship between home loan approval and credit card usage? I am planning to take a home loan after two years and I want to cancel my credit card due to overspending.

Your payment track record on credit card dues will have a strong bearing on your ability to get home loan in future. If you have defaulted or delayed in the past on credit card payments, banks are unlikely to grant you a home loan (or any other loan for that matter) except the one which is fully backed by tangible movable i.e. easily en-cashable security like loan against gold or shares or bank fixed deposit. Hence, it is advisable to make timely payments on your credit card dues to avoid having default reflect in your credit history.

However, if you are regular in payment of your credit card dues, it will improve your eligibility for a home loan as this create a good credit history but at the same time if there are large values payable on the credit card it could impact your home loan eligibility amount adversely. If you are prone to impulsive purchases leading to overspending you should shift to a debit card and keep your credit card only for emergency.

** Can I get a tax exemption for my mother’s firm if I buy a car in her name and take a loan on my name?
Assuming your mother is self-employed, she can claim deduction for the interest payable on the loan taken to acquire the car, which is used exclusively for the purpose of her business. Addition-ally she can claim depreciation on the car as well against her business income. However, the liability to pay the loan will have to be hers. The loan can only be taken in the name of your mother, as she is owner of the car. You can be a guarantor or a co-borrower.

** Recently I had to undergo treatment for dorsalgia and I had applied for medical reimbursement but after few days I was told that my claim has been rejected. I enquired about the reason but I didn’t get any answer. What should I do?
It is not clear if you were hospitalised or not for the treatment of chronic back pain (dorsalgia). If you were indeed hospitalised for the treatment of this disease/illness then the hospital does not have any reason to deny you the reimbursement of the hospitalisation expenses within the policy limits. Since you have not provided with any reason for such refusal I advise you to lodge a complain with the concerned insurance company on their website. If you don’t get a reply from them within a period of 3-4 weeks, you can put in your complain with the Insurance Ombudsman which will look into the same.

** I am a 45-year-old male suffering from CKD (chronic kidney disease) stage 3. Can I avail any health policy?
It is very unlikely that any insurance company will give you a health insurance policy when you are already suffering from CKD. Even if you manage to get a policy please keep in mind that any health insurance policy has a clause on the period during which the pre existing diseases are not covered.
This ranges from the end of three years till five years depending on the policy. So any expenses incurred for treatment of CKD or any complication arising out of it will not be covered for the next few year as mentioned in the policy. If a big firm employs you, your best bet would be to get the employer to take a group insurance policy that normally covers pre-existing diseases since day one.

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