Archive · 25 Sep 2026
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.
Borrowers generally must continue paying EMIs even if a builder fails to deliver a flat.
A loan against a fixed deposit may be preferable to premature withdrawal for small needs repayable within 12 months.
Switching an older MCLR-linked home loan to a repo-linked loan may be beneficial, with charges varying by bank.
A loan against property generally requires the complete chain of original property documents.
Joint house-construction loans with parents are possible, and education loans can be prepaid without penalty.
- Who
- A personal finance adviser responds to questions from home-loan, deposit, property-loan and education-loan borrowers.
- What
- The article explains repayment obligations, loan choices, document requirements, joint borrowing and prepayment rules.
- When
- One home loan was taken in 2015; one education-loan repayment period begins in six months after a two-year moratorium period.
- Where
- The article does not specify a particular location.
- Why
- To provide practical guidance on managing different borrowing and repayment situations.
- 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.