YOUR QUERIES: LOANS- Study loan paid but classes deferred? Ask bank to extend loan period, take simple interest

By Chaitali Dutta

I had applied for an education loan last year for my son’s master’s programme. Now he has returned to India as the university in Australia has only online classes. What should I do with the loan amount which is already paid by the bank to the university?
—Deepak Kumar
The next steps will be taken after ascertaining from your son whether he has taken a deferred semester or he has abandoned the programme altogether. Based on his decision, you need to inform the bank and take the next steps. In case it is a deferment, the bank may be agreeable to hold the loan and you may continue paying the simple interest on the outstanding loan. Formally apply to the bank to extend the period of the loan. If the course is abandoned, you have to close the loan and pay the outstanding amount to the bank immediately.

I took a loan from HDFC on which I got PMAY subsidy of Rs 2.7 lakh. Now, I want to transfer the loan to SBI. But HDFC says the subsidy has to be returned to the government if I balance transfer my loan. What should I do?
—Amit Lomate
PMAY can be availed only once. The subsidy is calculated as an interest rate benefit for the tenure of the loan. If the loan is closed (either with your own savings or by transferring the balance to another bank), the interest benefit for the unexpired tenure has to be surrendered. So, you have only two options: give up the remaining PMAY benefit and shift to SBI or stay with HDFC to continue with the full advantage of PMAY.

I bought a flat with a home loan five years ago. I want to sell it but I can’t prepay the loan. What do I ask the buyer to do as he may not take a loan?
—Surjit Kanwar
For sale of a flat where a home loan is running, once the deal is finalised with the buyer, get a loan outstanding letter from your bank. Also, let them know that you will be closing the loan. The buyer, either by his own funds or by taking a loan, will first pay off your home loan outstanding. The original property documents will be released by your bank, which will be handed over to the buyer on receipt of the balance amount of the payment in your name.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).
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