I cannot pay credit card fees of Rs 20,000. If I don’t have new installments and take a one-month moratorium, will the bank charge me for the entire period until I repay the full amount?
Pay at least the minimum amount owed of the Rs 20,000 outstanding as a first step. Second, yes, the card issuer will charge you interest on the outstanding amount throughout the period until you pay the installments. The moratorium is only to prevent your account from becoming NPA. However, interest continues to accrue on the outstanding balance.
Can I ask my bank for another six months of mortgage loan moratorium in addition to the three months of RBI?
The RBI will soon come out with its decision on recommendations for the extension of the term loan moratorium for another three months. Wait for the announcement and then decide the request to your bank.
An IIFL executive, from whom I took a mortgage loan, says that if I postpone an EMI I would have to pay six additional EMIs. What is the policy to postpone three EMIs?
Richard D Bruce
I believe that your request for a moratorium has been accepted by IIFL and you have sent IIFL a written communication to that effect. What the customer service person wanted to convey was that if you don’t pay a month EMI now, then your loan period will be extended and you may have to pay additional EMI at the end of the loan to close the loan. As soon as you have enough cash flows / excess funds, pay the outstanding EMIs along with the additional accrued interest. That way, your additional payments will be minimal.
I took an educational loan for my son four years ago. Given the employment situation, is it a good idea to prepay the full amount since I have some extra money?
—Inder Raj Sharma
This decision should be made after evaluating your financial situation in its entirety. I assume the loan repayment has started or will start soon. If you anticipate that your child is not getting a job, then you may want to consider closing the loan with the amount of your surplus.
The writer is the founder of AZUKE Personal Finance Advisory (www.azukefinance.com). Send your inquiries to [email protected]