AskBanking – Get solution to all your banking FAQs
Banking FAQs & HowTo Guide
Do ATM Debit Card Holders Need to Pay the Charges for using ATM at ATM Center- Yes. Banks can charge for transactions undertaken at ATMs. However, banks normally do not levy charges for transactions undertaken by their account-holders at their bank’s ATMs. Card holders can undertake a maximum of 5 transactions, in a month, free of […]
One Time Settlement Scheme , OTS effect on Credit History of an Individual future credit history : Just as all information about credit availed (amount availed, payments, defaults etc) is reported to Credit Information Companies (CICs), the fact that the borrower has closed a loan account after accepting an OTS is also reported to CICs. […]
How much time bank would take in returning the title deeds /securities after closure of loan. Banks should return all the securities / documents/title deeds to mortgaged property within 15 days of the repayment of all dues agreed to or contracted. If any right to set off is to be exercised for any other claim, […]
Insure the Loan from Bank – Yes. One will have to insure the property etc. as required by the bank during the tenure of the loan. However, banks cannot insist on your obtaining insurance cover from any particular provider.
Collateral Security – This is generally defined as additional security borrower offers a lender to secure a loan. Banks may take some additional securities which are called collateral securities. Collateral could be in the form of guarantee from one or two persons, assignment of life insurance policies, lien over shares, and units or other securities or mortgage […]
Penal Charge for Prepayment of Loan – Yes, most banks allow you to repay the loan ahead of schedule by making lump sum payments. However, banks may charge a pre-payment penalty which may differ from bank to bank. Pre-payment penalty may vary according to the sources of funds used to pre-pay the loan – if […]
Interest Rate Reset Clause – An ‘interest rate re-set’ clause allows a bank to review and reset rates at the end of a specified period of time based on interest rates prevailing at that time. Read – Whether Provident Fund (PF) Taxable ?
Fixed Interest Rate – An interest rate on a loan / credit facility that remains fixed either for the entire term of the loan or for part of this term is referred to as a fixed interest rate.
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