Moratorium on loans over, but money shortage continues? Reduce EMI, reset tenure

You can request the bank to lower your EMI and reset the term of your loan to an earlier term.

By Chaitali Dutta

In the event that RBI the deferral of payment does not increase further, can I ask my bank to continue the deferral of payment on my home loan for a few months because I have cash flow problems?
—Ashok Chaturvedic
At present, RBI has not extended the temporary relief measure for Covid-affected borrowers through moratorium beyond August 2020. In recent years, interest rates have been reduced. If you kept the EMI the same, your maturity would have decreased. You can request the bank to lower your EMI and reset the term of your loan to an earlier term. This may be a little relief for you.
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I am abroad and have no plans to visit India until the end of 2022. Can I prepay my full mortgage amount online and ask the bank to send me the title deeds by courier.
—Sachin Gupta
Yes, it is possible to pay off your loan without actually going to the office. However, contact them if they are ready to send you the original documents by secure mail. In practice, I would not recommend putting your original papers in the post/courier. If possible, give a letter of authorization to a friend/relative you trust to collect the paperwork and loan closing letter from the bank on your behalf. An alternative solution would be to pay off most of the loan now, leave only a small amount outstanding, and lower your EMI. If you come to India in 2022, close the loan account yourself and collect the papers from the bank. In this way you reduce your interest burden and you do not endanger your original property documents.

After paying out borrowed amounts twice, Indiabulls Housing Financing does not pay my loan to the builder. The demand this time is for Rs 8 lakh and another Rs 5 lakh will have to be paid at the time of possession. What should I do?
—Ashwini Singhal
First find out why Indiabulls Housing Finance is not paying your installments. Has your margin money not yet been paid out? Haven’t you cleared your pre-EMI yet? Is the property under court for some reason? Is the builder blacklisted? Once you know the reason, you can find a solution for it.

The writer is founder, AZUKE
Personal financial advice (
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