YOUR QUERIES: LOANS: Can you apply for a top-up education loan but for the same course?

No, a reduction of the period without paying the remaining EMI would not be possible as that would be a breach of the agreement.

A loan is a contract between the borrower and the lender, and all terms and conditions of the contract have to be adhered to, by both parties, till the loan is paid off and the outstanding becomes zero.
A loan is a contract between the borrower and the lender, and all terms and conditions of the contract have to be adhered to, by both parties, till the loan is paid off and the outstanding becomes zero.

By Chaitali Dutta

I had taken an education loan of Rs 10 lakh for my son. I want to take some more loan education loans and buy some devices. Can I get a top-up education loan?
—Varun Dandola
Yes, it is possible to avail a top-up loan on the education loan you have availed in the past. The top-up, however, cannot be for a new course. You have to provide the backup details as to why there is a shortfall in the funding requirements now, versus what was established at the start of the loan. The bank may charge a higher rate of interest for such a loan. All institutions and banks may not agree to such an arrangement. In case, it is not working out with the existing bank, you may look at transfer of loan where a larger loan may be possible, depending on the merits of the case.

I am taking a home loan of Rs 20 lakh going for a home loan of 20 years. Should I opt for 15 years with higher EMI as I can afford to pay the amount?
—S P Mohan
Usually, it is advisable to go for a longer period (and lower EMI) at the time of agreement. Then in the future, you can always make lump sum payments to reduce the tenure of your loan and subsequent lower interest outgo. However, the reverse is not possible.

Is there any penalty if Kisan Vikas Patra if redeemed after the lock-in period?
—Rajiv Kumar Kaushik
No, there is no penalty as your maturity proceeds are still with the government. Claim the maturity proceeds immediately, otherwise it will be notional interest loss to you.

I had taken a home loan in 2006 and have paid every instalment on time. Now can I request my bank for a waiver of the last 14 EMIs as I have already paid double the amount that I had borrowed?
—V Thaigarajan
No, a reduction of the period without paying the remaining EMI would not be possible as that would be a breach of the agreement. A loan is a contract between the borrower and the lender, and all terms and conditions of the contract have to be adhered to, by both parties, till the loan is paid off and the outstanding becomes zero. Only then the contract becomes null and void.

The writer is founder, AZUKE Personal Finance Advisory(www.azukefinance. com). Send your queries to fepersonalfinance@expressindia.com

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