l I had taken an education loan for my daughter last year. Do I have to pay any penalty to repay the loan amount now as I have got some money?—Amaya S Kumar
There is no penalty for part pre-payment of the education loan. However, do check the fine print in the loan sanction letter of arrangement to make sure.
l I am looking for a loan for two years. Should I look at a personal loan or take a loan against property?—Ajay Gupta
If the quantum is large, then go for a loan against property as the interest rate will be lower. However, if the loan amount is significantly lower than the property’s value, then a personal loan is recommended.
l Is it mandatory to show all bills and receipts in case I take a loan for home renovation work?—Amit Singh
Ideally, yes. The home renovation loan is a specific loan for a particular use. These loans are also cheaper than a personal loan, hence the availed funds should be utilised for the specific purpose.
l My home loan interest rate is 9% and a couple of banks are offering 7% on balance transfer. Should I go ahead?—Meddhansh Srivastava
Yes, a lowering of interest will be beneficial at this point. Please initiate the balance transfer process. Once your existing lender realises that your business is migrating, they may themselves offer to lower the interest rate on your home loan.
l While I had repaid my home loan six months ago, CIBIL still shows it is outstanding. How do I escalate the matter?—Sumit Panwar
Once the home loan is repaid, you need to get a no dues certificate. Also, all the original property papers need to be given back to you. Write to your lender, attaching proof that it is not updated.
l If the builder takes a loan from some other lender, do I need to take a NOC to process my bank loan papers?—Vinit Sangwan
Ideally, the loan by the builder is to be paid off before they can start selling the units of the property. It is recommended to get a title search report before parting with your money to the builder. In case the title is not clear and there is a mortgage outstanding, then legally the builder has no right to sell any part of the construction. In case the builder’s loan is paid fully, the NOC from the lender will form part of the sale agreement.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to fepersonalfinance@expressindia.com
Disclaimer: This article is based on a recent ITAT Pune ruling in a specific case. Judicial decisions are fact-specific, and their applicability depends on individual circumstances. Taxpayers should seek professional advice before relying on this ruling for their own cases.
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