Your Queries: Pay EMI first on personal loan while taking moratorium on home and car loans

Published: July 14, 2020 2:20 AM

If you had availed additional loan on non-subsidy on the same property, your repayment will be reduced from the non-subsidy part.

Pay the EMI on your personal loan as the first priority, car loan at your second, and home loan at third.Pay the EMI on your personal loan as the first priority, car loan at your second, and home loan at third.

By Chaitali Dutta

I have a home loan since November 2013, a car loan since May 2019 and a personal loan since November 2018. Due to the financial crises, I have earnings lower than monthly EMIs. What should I do?
—A Nagar
Personal loans are the most expensive of the three loans you have mentioned. Pay the EMI on your personal loan as the first priority, car loan at your second, and home loan at third. Take care to get approval for a moratorium on the ones you plan to defer.

I want to take Rs 12 lakh home loan from SBI and apply for Pradhan Mantri Awas Yojana (PMAY). I want to pre-pay Rs 3.5 lakh in the first year. Is it possible to do this?
—Sumit Prajapati
On approval for PMAY, your loan amount is reduced and consequently, your EMI is also reduced. In case you want to prepay, it will depend on your loan details. If you had availed additional loan on non-subsidy on the same property, your repayment will be reduced from the non-subsidy part. If your PMAY subsidy is on the entire loan amount, then you have to refund the present value of the subsidy availed on the refund amount, for remaining tenure.

I took home loan from an NBFC in February and have not applied for PMAY Credit Linked Subsidy Scheme (CLSS). Since the NBFC’s rate of interest is high, I want to transfer the loan to HDFC. Can I avail CLSS subsidy with HDFC?
—Rahul Garg
Yes, you may transfer the loan from the NBFC to HDFC. Since your applica-tion for PMAY has not been done yet, you may apply for the same with HDFC.

I have availed a HDFC home loan with my parents as co-borrowers. The property is owned jointly by me and my father. I have a separate household and also don’t own a house. Will my parents being a co-borrower in the loan and a co-owner hinder my eligibility for PMAY scheme as a separate household? Please guide me.
—Ankush Verma
Here in this case you will not be eligible for PMAY as on paper you are the owner of the property jointly held with your father, even though you may not be living in that house.

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

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