Personal Finance Queries: As soon as you have sufficient cash flows/ surplus funds, pay off the pending EMIs along with accrued additional interest.
I am unable to pay credit card dues of Rs 20,000. If I do not have new dues and take one month moratorium, will the bank charge me for the entire period till I repay the full amount?
Pay at least the minimum amount due out of the Rs 20,000 outstanding as the first step. Secondly, yes, the card issuer will charge you interest on the outstanding amount for the whole period till you clear the dues. The moratorium is only for avoiding your account from becoming NPA. However, the interest keeps on accumulation on the outstanding.
Can I request my bank for another six months of home loan moratorium apart from the three months by RBI?
The RBI will soon be out with its decision on the recommendations for extension of the moratorium on term loans for another three months. Please wait for the announcement and then decide on the request to your bank.
An executive in IIFL, from where I have taken a home loan, says that if I postpone one EMI I would need to pay six extra EMIs. What is the policy towards postponing three EMIs?
—Richard D Bruce
I believe that your request for a moratorium has been accepted by IIFL and you have written communication from IIFL to that extent. What the customer care person wanted to convey was that if you do not pay one month EMI now at all, then your loan period will get extended and you may have to pay additional EMIs at the tail end of the loan to close the loan. As soon as you have sufficient cash flows/ surplus funds, pay off the pending EMIs along with accrued additional interest. That way your extra payments will be to the minimal.
I have taken an education loan for my son four years ago. Given the employment situation, is it a good idea to prepay the full amount as I have some spare money?
—Inder Raj Sharma
This decision needs to be taken after assessing your financial situation in totality. I presume that the repayment of the loan has started or will start soon. If you foresee that your son is not getting a job at all, then you may consider closing the loan with your surplus amount.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to email@example.com