By Chaitali Dutta
l My sister had taken a home loan five years ago. Now she is unemployed. Can I pay the EMI and transfer the property in my name?—Virender Kumar
In case you would like the property to be transferred to you, the loan has to be paid off before registering the property in your name. Even if your sister gifts you the property by way of a gift deed, the registration in the sub-registrar office is mandatory for you to be recognised as the owner. A possible solution could be that you enter into a registered agreement with your sister, that you will be paying the EMI on her behalf, and this is a loan to her. To the extent of the loan, you will have a right to the property. Keep a record of the number of EMIs you are paying, and, to the extent you may become a part-owner of the property, or your sister can pay you back the amount you lent by selling the property to a third party.
l If I have to apply for an education loan for my daughter’s higher education in the UK, should I look for a short- term repayment period of three years?—Rajesh Ahuja’
The repayment period should be chosen based on your plan as to who will repay the education loan. The loans are structured in a way that the student takes the responsibility to pay the EMIs, after he/she secures a job. However, if you, as a parent, want to take on this responsibility, then, depending on your cash flow, choose the repayment period.
l For a gold loan, is it better to repay the entire amount with the interest together?—Deepak Gupta
For any loan, the interest is always ticking; it is advisable to pay off the loan as and when any surplus amount is available. If the entire amount is available now, pay off the loan.
l I took a car loan last year. I will be going abroad now and want to sell the car. Do I have to repay the amount before selling the car?—Suresh Gulati
Yes, to sell an asset, it has to be free of a mortgage. So the first step is to pay off the car loan.
l I need money for some short term needs. How can I pledge some shares to get a loan against shares?—Amoog Vishwanath
You may approach your banker or an NBFC like Tata Capital, Bajaj Finance, Sharekhan which will provide loan against shares.
The writer is founder, AZUKE Personal Finance Advisory. Send your queries to fepersonalfinance@expressindia.com
