How can I manage my dues and avail a housing loan?

Overdues will have a bearing on fresh loans

I have taken some personal loan and credit card dues of around `1.5 lakh. Now, I want to apply for a home loan. But because of my dues, I am not getting finance from any bank. How can I manage my dues and avail a housing loan? If you have overdue amounts on your existing personal loans and credit cards of the order of `1,50,000, you will find it difficult to get a home loan from anybody. If the amounts are not overdue (just due), then too it will impact your loan eligibility and the lender will reduce this amount from your overall eligibility. I want to buy machinery worth `2.50 lakh. How much loan can I get for this? What are the eligibility criteria? Normally, you need to put some part of the cost of the machinery known as margin money, and the bank finances the balance. You may get a loan of up to 75-85% of the value of machinery, subject to how you satisfy the eligibility criteria based on your existing earnings, age, loans, repayment track records and the like. If your income tax returns for the past three years reveal a business income of more than `3 lakh each year and you have no other loan outstanding, you should be able to get an unsecured business loan also, though it may be expensive – at around 21-26%. I have a personal loan of `5 lakh taken just three months ago and I got some unexpected money from the stock market. Can I repay half the personal loan amount i.e. `2.5 lakh back to the bank? Is that acceptable... or do I need to pay the total amount to close it? Normally, the pre-payment on personal loan is allowed only 6-12 months after the disbursal of loan. I would suggest you to go through the loan agreement carefully to verify the terms of the loans with regard to its pre-payment charges. In case your bank allows partial pre-payment with a penalty clause, then you will have to pay a penalty for pre-paying the loan. It is generally in the range of 3-5% of the outstanding loan amount. I have an outstanding towards four credit cards for the past two years. If I settle them now, am I eligible for a home loan? Assuming that you are already in the possession of Credit Information Bureau (India) Ltd (Cibil) report, you should make full and final payment to all card issuing companies which are showing up as delayed or unpaid in the report. Even though the full and final payment will reflect in your credit report in 45 days, it will continue to show both the facts - that you had delayed payment in the past and you made full and final settlement now You can try and rebuild your credit history by taking a secured credit card (secured against FD) or loan against tangible movable security such as FD / jewellery / shares / units of mutual funds / life insurance policy with high surrender value where the lender can give you a loan despite your adverse credit history. By being regular in the repayments of such loans, you will gradually improve your credit history. This is a slow process and will take at least a couple of years before your credit report gets repaired enough for you to be eligible for regular loan or credit cards.