By Chaitali Dutta
For an education loan, will the repayment start immediately after the student gets a job?
—A K Vishwanath
The repayment of the education loan may start from six to 12 months after education completion. It does not depend on whether the student gets a job or not. The liability is on the student to pay.
I had taken a home loan of Rs 50 lakh in 2017 and now with the increase in interest rates, the tenure has gone up by three years. Should I start prepaying the principal outstanding by liquidating some of my financial investments?
—Ajay Mirdha
First have an assessment of how long your work tenure remains. If the additional three years is still within your retirement age, it is suggested that you continue with the loan. However, if the increased period is spilling over after your retirement age or you want to get debt free with adequate provi-sions for your retirement corpus, then you may start additional repayments in the home loan.
If I prepay my home loan, will that impact my credit score in the long run?
—Somesh Jha
Not at all. Additional repay-ments into the home loan do not adversely affect your CIBIL score.
My home loan CLSS subsidy is at the third stage and the loan was disbursed in October 2021. While the registration for the subsidy was done in December 2021, I still have not received the subsidy. What should I do now?
—J P Arora
Check the approval status of your CLSS subsidy on the CLSS Awas portal CLAP Pradhan Mantri Awas Yojana-Urban (pmayuclap.gov.in). Enter your 11-digit alphanumeric Application ID and check at which stage your application is.
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Is there any way to request my bank to give me a grace period of six months for my home loan EMI as I am facing a liquidity issue?
—Deepak Kumar
No repayment holiday is available for home loans in India. You may, however, approach your bank and give them in writing a request for rescheduling your loan giving them your accurate financial situation. The bank may consider an increased tenure or increased EMI (after six months) to salvage the situation. Please keep in mind that in such a situation your cost of the loan is going up, by way of higher interest payout. You are therefore preventing your loan from becoming an NPA.
Is there any maximum age limit to take a home loan from a bank or a housing finance company?
—Brijesh Maheshwari
For a salaried person, the loan tenure is matched with the retirement age. This is flexible in case a person is engaged in business. The specific situation—age of the borrower, type of business, business partners, history of business, track record- determines the repayment period. Usually, having a younger, working co-applicant, either a son or a daughter, increases the tenure and as a result, reduces the EMI.
The writer is personal finance wellness expert and founder of AZUKE Finance. Send your queries to fepersonalfinance@expressindia.com
