For a salaried person, the loan tenure is matched with the retirement age. This is flexible in case a person is engaged in business.
By Chaitali Dutta
I am aged 50 years and am looking for a home loan of Rs 70 lakh. Is there any upper age limit for a loan? In a loan, is the upper age limit decided by the repaying capacity?
– Dilip Raut
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.
I am facing difficulty in servicing my home loan. Can I request my bank to give me a grace period of six months and after that, start paying the EMIs?
Sadly, as a rule, no such 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.
My brother and I want to take a joint housing loan to construct a house on a plot. Will a bank finance it and what are the documents that I need to show them?
Yes, it is possible. Siblings may jointly apply for such a loan. The documents—proof of ownership of land, an estimate of the cost of construction by an authorised architect, both your income proofs and ability to repay—has to be established.
Is it safe to take a loan against gold for a period of one year? What would be the interest rate? What does the company do with the gold?
Yes, it is safe if you take a gold loan from a bank or a reputed NBFC. They will do a purity test on the gold. The interest rates are in the range of 10% to 11% pa. The company is supposed to hold the gold ornaments or coins as it is. Once you pay off the loan, the same ornaments are returned back to you.
(The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to email@example.com)