Your questions: Loans – You can’t wait to find a job to pay off your student loan

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By Chaitali Dutta

For a student loan, will repayment begin immediately after the student gets a job?
—AK Vishwanath

Student loan repayment can begin 6 to 12 months after graduation. It does not depend on whether the student gets a job or not. The responsibility lies with the student to pay.

I had taken a home loan of Rs 50 lakh in 2017 and now with the increase in interest rates, the term has increased by three years. Do I have to start repaying the remaining capital in advance by liquidating some of my financial investments?
—Ajay Mirdha

First, assess the length of your work term. If the three additional years are still before the retirement age, it is suggested to continue the loan. However, if the increase period extends past retirement age or if you want to be debt free with adequate provisions for your retirement, you can start additional repayments in the home loan.

If I prepay my home loan, will it impact my long-term credit rating?
—Somesh Jha

No way. Additional repayments in the home loan do not negatively affect your CIBIL score.

My CLSS home loan grant is in stage three and the loan was disbursed in October 2021. While the grant registration was done in December 2021, I have still not received the grant. What should I do now?
—JP Arora

Check the approval status of your CLSS grant on the CLSS Awas CLAP Pradhan Mantri Awas Yojana-Urban portal (pmayuclap.gov.in). Enter your 11-digit alphanumeric Application ID and check what stage your application is at.

Also read: Your money: what EBITDA hides and reveals

Is there a way to ask my bank to give me a six month grace period on my EMI home loan because I am facing a liquidity problem?
—Deepak Kumar

No repayment holiday is available for home loans in India. However, you can contact your bank and send it a written request to reschedule your loan, specifying your precise financial situation. The bank may consider an increased tenure or increased EMI (after six months) to salvage the situation. Please keep in mind that in such a situation, the cost of your loan increases, due to a higher interest payment. So you prevent your loan from becoming an NPA.

Is there an upper age limit for taking out a mortgage with a bank or mortgage finance company?
— Brijesh Maheshwari

For an employee, the duration of the loan is based on retirement age. This is flexible in case a person is engaged in a business. The specific situation – age of the borrower, type of business, business partners, business history, track record – determines the repayment period. Usually, having a younger co-applicant working, either a son or daughter, increases tenure and therefore reduces IME.

The author is a personal finance wellness expert and founder of AZUKE Finance. Send your questions to [email protected]

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