6 days ago

Expert Answers on Home, Deposit and Education Loans

The article answers common questions about different kinds of loans.

If a builder does not deliver a home, the buyer usually still has to pay the bank.

Missing payments can hurt the borrower’s CIBIL score.

Someone needing a small amount of money may borrow against a fixed deposit instead of closing it early.

This can make sense if the money can be repaid within a year.

A borrower with an older MCLR home loan can ask the bank about switching to a repo-linked loan.

Borrowers seeking a property loan must usually provide the complete original ownership documents.

Parents and children can jointly apply for a house-construction loan, and education loans can be repaid early without a penalty.

Key facts

Builder default: The borrower’s liability to the bank generally continues even if the builder fails to deliver the flat.
Missed EMIs: Non-payment can negatively affect the borrower’s CIBIL score.
Loan against deposit: It may generally be preferable to premature withdrawal when the required amount is small and repayment is expected within 12 months.
MCLR conversion: A borrower can ask the bank about converting an MCLR-linked loan to a repo-linked loan; charges vary by bank.
Property documents: A loan against property generally requires the complete chain of original property documents.
Joint construction loan: A salaried borrower and parents can jointly apply for a house-construction loan.
Education-loan prepayment: The article states that the education loan can be prepaid without a penalty.

financialexpress.com · 6 days ago