CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I took a home loan in Au­gust 2012 The re­turn on in­vest­ment then was 10.5%, but now it is 11%. Now I want to trans­fer my loan to an­other bank where the in­ter­est is about 10.25%. Re­cently, the bank I took the loan from, gave me an of­fer to re­duce the in­ter­est rate from 11% to 10.25% by pay­ing a fee of ` 5,618. What should I do?

—Arvind Gupta Cur­rent (June 2014) com­pet­i­tive rate in the mar­ket for a home loan amount of

` 14 lakh is 10.15% to 10.25% and hence it is ad­vis­able to ac­cept the of­fer made by your bank to re­duce your in­ter­est rate to 10.25% by pay­ing a con­ver­sion fee of

` 5,618. You will gain back the amount paid to­wards the con­ver­sion fee in a few months and then en­joy the ben­e­fit of lower in­ter­est rate for the bal­ance ten­ure of the

Are prepayment charges levied by hous­ing fi­nance com­pa­nies reg­u­lated un­der Na­tional Hous­ing Bank on mort­gage loan? RBI waived prepayment charges on all float­ing term loans while is­su­ing di­rec­tions in May 2014 to all banks. Al­though HFCs say that mort­gage loans do not fall un­der the cat­e­gory of home loans, no di­rec­tions have been is­sued by NHB, as yet.

—Gaurav Kapoor Re­serve Bank of In­dia is­sued a no­ti­fi­ca­tion to banks to waive the penalty on fore- clo­sure of all float­ing rate loans but Na­tional Hous­ing Bank (NHB), that gov­erns the hous­ing fi­nance com­pa­nies, has not yet is­sued any such no­ti­fi­ca­tion. Since loan against prop­erty (mort­gage loan) does not come un­der the home loan cat­e­gory, HFCs are free to levy penalty on fore­clo­sure of such loans.

I am 30 years old and my monthly take-home salary is ` 59,000. I have an out­stand­ing home loan of ` 6 lakh with a monthly EMI of

` 7,000. The bal­ance ten­ure on this loan is 15 years. I also have a car loan of ` 3.4 lakh with a monthly EMI of ` 7,000, which will end in 2016. I want to buy an­other prop­erty cost­ing ` 45 lakh for which I re­quire a loan of ` 10 lakh. Am I el­i­gi­ble?

—Rishab Dasgupta Dif­fer­ent banks pre­sume dif­fer­ent por­tions of your in­come as avail­able for pay­ment of EMIs on loans. Nor­mally the bank will as­sume that 40% to 45% of your net salary is avail­able for pay­ment of EMI for all loans. The lender will cal­cu­late the el­i­gi­bil­ity based on the EMI be­ing paid now and the room left to pay the EMI for an­other loan. For ex­am­ple, if the ex­ist­ing EMI on your home loan and car loan is ` 14,000 per month, then the bank will as­sume that you can pay ` 12,550 per month as EMI for the new loan (to­tal EMI pay ` 26,550 or 45% of the net salary) and cal­cu­late the sec­ond home loan amount ac­cord­ingly. Hence, you should have any prob­lems in get­ting a home loan of an­other ` 10 lakh for which you will have to pay an EMI of ` 9,820 a month at an in­ter­est rate 10.25% a year for 20 years if you have a good re­pay­ment record.

Harsh Roongta is CEO, Apna Paisa. He can be reached at ceo@ap­na­paisa.com

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