Members / Candidates grievance resolution system

FINANCIAL EDUCATION

LEARNING VAULT

Know Your Banking - General Banking
loans

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1. A guarantor is not liable for the loan amount in the event of default by the borrower.

True
False

2. If you already have a house, banks do not sanction housing loans.

True
False

3.Banks give housing loan only for houses which are ready for possession.

True
False

4.Banks give housing loans only for joint account holders.

True
False

5. For getting a loan for ready-made house/apartment/flat, banks insist on valuation report from their approved valuers.

True
False

6. Only salaried persons can get housing loans.

True
False

7. Generally, banks insist that the home/house purchased with the bank loan or financed by the bank is mortgaged to the bank as security for the loan.

True
False

8. Banks insist on the insurance of the house purchased through housing loan.

True
False

9. Some tax benefits are available for payment of interest and principal for housing loans

True
False

10. Longer the period of repayment for housing loan, larger will be the EMI.

True
False

11. Credit checks allow prospective loan providing bank to see the borrower's entire credit record.

True
False

12. Banks do not sanction loans for overseas education

True
False

13. Repayment of Education loan generally commences after the completion of education.

True
False

14. Banks give loans only for the purchase of new cars.

True
False

15. Borrower does not have to contribute any margin in a loan for purchase of car.

True
False

16. Repayment of car loan commence one year after the purchase of car through loan.

True
False

17. Banks do not permit prepayment of housing/car loans.

True
False

18.Banks generally do not recover processing fees for car loans.

True
False

19. Banks give overdrafts and loans to everyone who opens an account.

True
False

20. Indian Nationals who have secured admission to professional / technical courses through Entrance test / selection process in India / abroad can avail of educational loan.

True
False

21. Second educational loan is never sanctioned by the banks.

True
False

22. Travel expenses are not included while working out educational loan amount.

True
False



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