Pre-payment charges are no more valid but come with specific circumstances, which differ from bank to bank. Check out the particulars with your bank initial.
By Chaitali Dutta
I want to clear my property loan inside a year. Should I clear at one go or can I spend just about every month some funds? Will the bank charge a penalty? —Ashish Kumar If you have the funds prepared, then paying the loan in one go is advisable. However, if you have a tiny surplus just about every month, please go on paying component loan just about every now and then. Do look at the fine print in your sanction letter, regardless of whether a number of spend-offs are achievable. Pre-payment charges are no more valid but come with specific circumstances, which differ from bank to bank. Check out the particulars with your bank initial.
My brother has a housing loan of Rs 20 lakh. He desires to sell the home. Can I take a loan to get that home? —Tushar Singh Yes, it is achievable offered you do a suitable sale agreement. If the sale docu-ment quotes a sale price tag of significantly less than the circle price, you will anyways have to spend the stamp duty as per the larger circle price. Moreover, your brother will have to show the sale proceeds as equivalent to the circle price, for the goal of capital gains. I recommend carrying out the agreement as per the going marketplace price in the location.
I am taking Rs 10 lakh from my brother to clear my loan. I have to repay it. Should I show it in my ITR as ‘Exemp-ted Income’ or really should I do a loan deed? —Tushar Chaudhari Since you intend to spend it back to your brother, show it as a loan in your books and your ITR. Similarly, your brother really should show it as a loan provided to you. That way when you spend the installments back to him, it will not be deemed earnings for him. It will be a superior thought to sign a present deed for this transaction.
I took a car or truck loan final year for 5 years. Now I have got some funds from life insurance coverage maturity. Should I spend off the loan quantity or invest the funds? —A R Rao If you can earn a much better price on the surplus than what you are paying on the car or truck loan, you really should go ahead and invest. I assume you have a time horizon of fewer than 5 years as component of the loan is paid off. In such a quick time, safer debt investment would be advisable. But then you will not be in a position to earn more than the loan interest price. This could be achievable only if you invest in equity. Valuations nonetheless are at a peak, so a measured month-to-month exposure to equity is much better.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to