By Chaitali Dutta
My lender disbursed the home loan of Rs 72 lakh on July 7 this year and had taken three advance EMIs from me. Why did they do so as I thought the repayment will start from August?
—Subodh Kumar
The advance EMI essentially reduces the loan outstanding from the start itself. This way, the interest outgo over the entire loan tenure will be significantly low. However, it does impact your cash flow as the advance EMIs are a burden. Usually in an advance EMI scenario, the regular EMIs start after the number of months cyou would have paid.Verify from the lender that your regular EMIs will start from November 2025.
I have repaid my car loan six months ago. But in my CIBIL records, the loan is still showing. How can I rectify it?
—Vishal Sethi
Register your request for rectification under the Dispute section in www.cibil.com. You may have to gather the documentary proof of the closure of the account first. These documents need to be uploaded with your request.
I recently updated my PAN record where I had to put the full name of my father. Earlier, it was in initials. Do I have to update that in my home loan records?
—Abhijeet Das
The PAN is unique and the number does not change. With the correction of the details in your PAN, the basic data is rectified. You need not submit any updates for your home loan.
As I have around Rs 3 lakh in credit card outstanding, can I request the bank to convert it into EMIs which will be easier for me to repay?
—Keshav Pradhan
Credit card outstanding is an expensive loan. Pay off the outstanding with whatever surplus amounts you have, in several tranches as well in the month. By converting the loan into an EMI option, it instils a disciplined way of reducing this outstanding. Note that the interest accumulation does not stop, even if you start paying in EMIs.
If I take a loan against property (LAP), do I have to show the end use of the sum? Can I repay after six months without any penalty?
—Sujan Yadav
In a LAP, the end-use proof is not asked for by the lender but at the time of sanction of the loan, it will evaluate your ability to repay. Hence, there has to be a steady source of income and regular tax returns. The lender may also impose a lock-in.
The writer is founder, AZUKE Personal Finance Advisory.