July 22, 2021
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YOUR REQUESTS: LOANS: The complementary real estate loan must be used for the property for which it is subscribed

By on July 20, 2021 0
Part of the grant will need to be repaid, as this is a foreclosure case. You will only be entitled to a lower interest rate from 2018 until now.

Can I take out a cheaper complementary loan rather than a personal loan?
—Kailesh Chaturvedi
I am assuming that you are applying for a complementary loan on your home loan. Yes, the complementary loan is a cheaper loan than a personal loan. However, the end use of the complementary loan is monitored by the bank and you must use the money for repairs / maintenance of the existing property.

I plan to prepay part of my mortgage. Should I reduce the amount of the IME or reduce the duration of occupancy?
—Anumedha
The decision to reduce the EMI or reduce the tenure will depend on your cash flow. If you are comfortable paying the existing EMI, reducing the tenure is a better option, as your net interest expense will be significantly reduced. However, if your cash flow is tight, you should go for the EMI reduction.

I took out a loan from IndiaBulls in July 2018. I applied for foreclosure on June 16, 2021 and intend to transfer the loan to HDFC. IndiaBulls told me that I am eligible for the PMAY program according to the notification of June 23, 2021. Will I receive a proportional subsidy for the interest already paid?
—Minakshi
Grant approval sometimes takes a long time and if the grant has not yet arrived, you will not be able to receive it from HDFC. Wait for the grant amount to be credited to your IndiaBulls account and then transfer the loan. Part of the grant will need to be repaid, as this is a foreclosure case. You will only be entitled to a lower interest rate from 2018 until now.

I take a Rs 15 lakh car loan and pre-close a Rs 40 lakh home loan. I pay Rs 30,000 per month to my in-laws for the Rs 40 lakh they give to repay the loan. What’s the best division I can do?
—Jayanthi Murugan
A car loan is more expensive than a mortgage. To keep your interest costs low, buy the car with a full down payment. Prepay Rs 25 lakh home loan. Ask your banker to reduce your EMI by keeping the loan term the same. This will lower the EMI on your home loan and you will likely be able to manage your cash flow with the lower EMI and the Rs 30,000 repayment to your in-laws.

The writer is founder,
AZUKE personal finance consultancy (www.azukefinance.com). Send your questions to [email protected]

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