Letters talk back

In the story on alternatives to personal loans (Nothing Personal, December 2010), the credit card has been included as an asset one can borrow against. Is this the same as the cash advance facility that credit cards offer? Are all card holders eligible for such loans? DEEPAK CHOPRA, e-mail
Loans on credit cards are different from the cash advance facility that credit cards offer. You can take a loan on a credit card for an interest that is on a par or slightly higher than that for a personal loan (18-22%), while the interest rate for cash advance would be between 25% and 40%. Some banks also provide a higher loan amount than the cash withdrawal limit on the card. A loan on credit card is usually not available to everyone, with the banks providing these only to customers with high credit standing. This means that you are most likely to be eligible if you have been using a bank's card for some time and have a good payment record.

In the story on online insurance (New Rules of the Game, November 2010), you have not mentioned offline procedures, such as submitting documents physically? When does one get the policy document after applying online? Also, does one have to undergo medical tests? ABHISHEK SAHAY, Patna
The policy document is despatched along with the first premium receipt, a copy of your proposal form, policy schedule and a copy of your medical report (if you have undergone tests). This is sent within 10 days of the documents having been picked up from you or on completion of the medical tests. Medical tests and other requirements are determined on the basis of the sum assured, your age and the specifics that were filled up in the online proposal form. This is decided by the underwriting guidelines of each company.

It doesn't seem appropriate to levy charges for trading in mutual funds through a demat account (Is the Online Channel Cheaper for Investors? December 2010). With one charge usually replaced by another, the worst affected are retail investors, who can benefit the most from the use of online channels and who are being encouraged to invest more in funds. S. RAMAMURTHY, Bengaluru

While buying as a group on the Internet (Big Group, Small Price, December 2010), what happens if a particular deal does not garner enough takers? Does one suffer a loss if a deal does not go through with the expected discount because of lack of customers? TONY RAI, New Delhi
Often, if you want a deal to go through, you must pay for it before the offer ends. If the minimum number requirement is met, you get a voucher via e-mail. If there aren't enough people, the deal is cancelled and the charge is reversed.

The report on the second quarter (The Comeback Quarter, December 2010) indicates a strong performance by the Indian markets. As most companies surpassed analysts' expectations in the previous quarter, let's hope the trend continues in the next one. Hopefully, the effect of the recent FII selling and high base effect will be minimised. GANESH PAREL, Mumbai