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Usually,when a loan is disbursed for an under construction property,the lender will charge you a simple interest called the Pre-EMI interest till the entire amount of loan is disbursed after which the regular EMI begins. If you are concerned about paying pre-EMI,most banks start off your EMI on each tranche of loan disbursed with the EMI being suitably adjusted after every disbursement. This will help you save on pre-EMI interest. The bank is unlikely to agree to disburse Rs 4 lakh just before completion so as to enable you to start off EMI on the entire loan.

I have purchased a flat in Kolkata,which is registered in my name. At present,the flat is mortgaged to the company I work with. I wish to transfer the home loan to a financial institution. Is this option possible? If so,how?

Sushanto Banerjee,Kolkata

You can transfer the home loan from your employer to another bank by foreclosing it. You can get the loan transferred to the bank on the basis of your income and credit history,if any. This will involve the usual formalities of handing over the property documents from your employer to the new bank. You need to approach your employer for the formalities to be complied with,and get the documents released. If your employer gives an undertaking to the proposed lender giving the details on how the original documents would be handed over to the proposed lender,it should be possible to transfer the loan to new lender.

I am retiring from government service after two years on reaching the age of 60. Am I eligible for a home loan?

B Waghmare,Pune

Most banks cap the age limit at 60 for salaried individuals. The maximum tenure is restricted by the age of the borrower at the end of the tenure to ensure the loan is paid on or before retirement age. Some lenders such as housing finance companies do have step down plans where the EMI is higher for two years and then lower after your retirement. It is likely that the loan tenure will be restricted to five years. You can take a joint loan with your earning spouse or children to increase the loan eligibility and to ensure that the loan is available for a longer period.

The expert is CEO,Apnapaisa.com
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