The Covid-19 induced economic scenario is not a regular occurrence.
By Chaitali Dutta
My bank did not decrease my dwelling loan EMI following interest price reduce. On enquiry, it stated the loan tenure will decrease, but when I went to settle the dwelling loan it pointed out the similar quantity devoid of lowering tenure. What really should I do? —Pradeepkumar P Usually, banks will want a separate request from you for a reduction/ raise in EMI when a floating interest price is decreased/elevated. The default is a reduction in tenure. In your case as well, the tenure was decreased as you continued paying the similar EMI. Now let us appear at the prepayment scenario. At any point in time in the course of the tenure of your loan, outstand-ing is the principal quantity on the day you have paid the EMI. If you need to close the loan, the outstanding desires to be paid in complete. It does not matter what the remaining tenure is—20 months or 200 months—the repayment of outstanding will have to be created in complete.
I had taken an education loan in Btech very first year in 2014 of Rs 6.5 lakh and began EMI right after a single year of my job in 2019. What added positive aspects can I get to decrease my loan quantity? Can I ask the bank to restructure my loan as I am the only earning individual in my family members? —Dinesh Patel The Covid-19 induced economic scenario is not a regular occurrence. In any other year, you would have no other recourse than to spend the contracted EMI for the education loan taken. However, because we are going by means of financial distress at all levels—personal as properly as economic—I recommend you appeal to the bank for loan restructuring. You have to have to clarify the economic issues you are going by means of, attaching proofs of the similar. However, please bear in thoughts that the application is no assure that the advantage will be supplied to you.
My wife’s Senior Citizen Savings Scheme account matured this month and was extended for 3 more years. Originally it was carrying 9.3% interest and now it is only 7.4%.From which economic year was this new provision implemented? —S Viswanathan The interest price on SCSS is fixed for 5 years. Five years back it was 9.3%. The current price of 7.4% is with impact from April 2020. You would have noticed that bank interest on FDs as well has been steadily declining.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to