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I need to undergo a hair transplant. Will my procedure be covered under any health insurance plan?

Although hair transplants have become a common, it is not covered under any health insurance pan largely because it is a cosmetic surgery procedure.  While cases of pure cosmetic treatment are clearly excluded, plastic surgery if required for treatment after an accident is usually considered if the health insurance company is fully satisfied with the line of treatment and its significance. So you are better off waiting a while while you collect adequate funds for your hair transplant procedure.

 

I am seeking to buy a pre used car on loan. I have read that maximum loan possible is between 60 to 75% of the car price. Who determines the price of the second hand car?

Yes you have heard it right. Car loans for pre used cars come with a LTV of 60 to 75% of the car price as determined by the car valuation expert of the concerned bank. For example you are seeking to avail the pre used car loan from Bank X. After you shortlist your car, you will need to inform your concerned bank. The bank will send its official car valuation expert to check the price of the car. Whatever the car valuation expert would conclude as per the car’s condition, its make, model and other parameters would be the final price considered by the bank. So your LTV will be calculated as per the price determined by the bank.

Can I opt for a loan on my term life insurance plan?

To answer your question in one line, no you cannot opt for a loan against your term insurance plan. However you can get a loan if you have any other life insurance policy along with a term plan. Since a term plan does not have any cash value associated with it is difficult for any bank or NBFC to mortgage the life insurance policy as security and give out any sum against the policy. Life insurance plans like endowment policies, money back plans and unit linked insurance policies (ULIPs) are eligible for loans while term insurance plans are not eligible for any loans. It is always a good idea to check with your bank or life insurance service provider whether any insurance plan you have is eligible for a loan or not.

What is a FOIR when someone is applying for a home loan?

FOIR is known as fixed obligations to income ratio and is a parameter used by banks to determine your final loan eligibility. If the bank says it will offer you a 50% of your FOIR, this means the loan amount will be offered in such a way that your loan EMI does not cross 50% of your monthly income. So if you earn Rs. 55,000 per month and have a other loan or financial obligations come to Rs. 10,000, you will at best get a loan where your monthly EMI does not exceed Rs. 22,500.

I am planning to abroad the coming month with my family for a short visit. Should I take a travel insurance policy? If so, what all benefits I get?

Taking travel insurance is good to protect you from any unforeseen circumstance like medical emergency or lost baggage or some other problem comes up while you are abroad. Taking a travel insurance to cover the risk during travel will help both financially as well as mentally. Typically, travel insurance covers all risks like loss or theft of baggage, loss of passport, medical needs, personal accident, missed flight connection travel delays, etc.

Medical examination s not required to take a travel insurance policy. However, it is important to check all policy conditions and coverage before you select the policy. You can now check online, the various policies offered by different companies and choose a plan with the best rates and covers. Premium varies with the country you visits, duration and specific coverages required.

I am planning to take an education loan for my son for his higher studies. What will be the rate of interest? How much can I get as loan? What are the eligibility criteria? When will the repayment start?

Congratulations for your son’s achievement. All leading banks are providing education loans. You can make a comparison of the interest rates and other terms online before you zero down an option. Usually all education loans are provided up to 100% of the course fee till the end of the course. Any boarding and lodging expenses for students that are relocating to a different city for studies are also taken care of in the education loan.

You will have to provide the id proof and address of parents as well as the child (KYC documents). Proof of admission to the bank to prove that your son has got admission in a particular institute is also required. Most banks would ask for income documents of parents to know your background. The loan amount will not be given to you, but disbursed to the institute, directly by the bank.

The interest rates for education loan vary from bank to bank and also it depends upon the amount you are availing. The repayment starts after the completion of course, but there is an option for part-prepayment before that. Some banks ask for collateral security under certain conditions.

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