Your Queries (Loans): To avail PMAY, sell existing property and buy new one with home loan

You may request for an extension of moratorium. Once your son gets a job, he then has to pay back the principal amount.

By Chaitali Dutta

I took a housing loan in 2018 and I paid all my EMI. Can I take the benefit of the PMAY subsidy?
—Neeraj Kumar Singh
Once the home loan is fully repaid the PMAY subsidy is not possible to avail. Going forward if you would like to upgrade to a better property, you may sell this existing property and buy one, with a loan, and avail of the PMAY then.

I took an education loan for Rs 10 lakh for my son’s higher education. My son was paying the EMI but he has lost his job after the start of the pandemic. We opted for the six months moratorium. Can I request the bank to extend the moratorium for some more time as a special case?
—A K Srivastava
You are the joint holder of this loan. The bank will ask for the status of your income as well. Pay the interest amount at least on a monthly basis. You may request for an extension of moratorium. Once your son gets a job, he then has to pay back the principal amount.

I had taken a housing loan in 2015 and have paid all my EMIs on time. All these years my CIBIL score was about 780. I had opted for the six months loan moratorium and have started paying my EMIs again. But now my CIBIL score is below 700. Why is it so?
—Ajay Kumar
As per the RBI notification, the rescheduling of payments, including interest, will not qualify as a default for the purposes of supervisory reporting and reporting to Credit Information Companies (CICs) by the lending institutions. So essentially, just availing of the moratorium should not negatively affect your score. Do check if you had other credits outstanding in the last one year. Credit card overdue amounts are also considered under CIBIL rating.

I took Rs 40 lakh home loan in 2019. My father has gifted me Rs 50 lakh on selling a property. Can I use the money to pay off the loan. How do I show the source of money to the bank?
—Bhushan Pandey
Get a gift deed made to show on record that the Rs 50 lakh is a gift and not a loan. This will be useful for both—your as well as your father’s income tax returns. Next, pay off the home loan entirely and declare that the repayment is from your own sources of funds.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to [email protected]