By Chaitali Dutta
My home loan EMI will finish following 10 months. I want to apply for a major-up loan for renovating the property. What are the situations for a major-up loan or need to I take a loan against house following the existing loan is completely paid?
—Subham Kumar
If you look at the interest price, a major-up loan will be a much better option as the loan against house, ordinarily is a greater interest loan. Take a quotation for home renovation and submit it to your current loan provider quickly. The loan will be sancti-oned topic to guidelines as applied to home loans. You have to submit proof of renovation carried out, when you take such a loan.
I have taken a home loan for an beneath-building developing. It took eight years to comprehensive building. Can I claim tax exemption on a home loan following the possession? If not, can I transfer the loan to a different bank and then claim the exemption?
—Manoj Patel
Even if the loan is transferred to a new service provider, the building period will stay the similar as eight years, getting more than 5 years, the prior-period interest will not be eligible for deduction beneath Section 24. You will be capable to claim the added benefits only post possession, on each the interest and principal paid beneath Sections 24 and 80C.
As the interest prices on private loans are quite higher, what are the other solutions to borrow `10 lakh for a brief term at a more affordable price?
—Aditya Khurana
Yes, private loans are no-safety loans, therefore pricey. If you have any monetary assets, like shares /mutual funds/ LIC policy (regular)/bank FD, you may possibly think about taking a loan against such an asset. They will be priced reduce than a private loan.
My son gets delivers to avail loans from fintech providers without the need of any requirement for collateral. Should he take a loan from the app?
—Alok Chauhan
A loan need to be taken only when the need to have arises. If your son has a particular acquire in thoughts, for which he does not have quick funds, he could take a loan. I would also advise against leveraged assets, exactly where a loan is taken to invest in risky assets.
The writer is founder,
AZUKE Personal Finance Advisory (www.azukefinance.com).
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