Express Money: Ask Us

Absolutely not. You should consider this a blessing in disguise. Though this news would mean your home purchase could be delayed a bit,remember that more the down payment,the lesser is your interest cost. Moreover a decrease in the home loan amount also means a decrease in EMI,which means the stress on your monthly budget is further reduced.

I have a personal and a car loan running. If I apply for a home loan,will the bank consider my entire income for my loan eligibility or will it exclude the current EMIs,despite the fact that it is part of my income?

Rajan Burman,Pune

Your disposable income reduces when you service other loans. The ongoing EMIs restrict the amount you can shell out as EMI for a future loan,hence it is not considered for your loan eligibility. 40-50 per cent of the remainder of your income will be considered for home loan EMI,as the rest of your disposable income will be considered as part of your monthly expenses for your routine needs.

How much should I invest in infrastructure bonds? How do I find the best option?

Sania More,Kolkata

Infrastructure bonds were re-introduced last year. They are popular as they help you save an additional 20,000 from your taxable income. However,do remember that any investment beyond this will be taxed as usual. The disadvantage of infrastructure bonds is the lock-in period and the taxable interest. With a long lock-in period,the risk against inflation increases. So for example,if inflation is at the rate of 10 per cent,it will essentially give you negative returns on a bond that offers 9 per cent returns and also this is taxable.

The expert is CEO,Bankbazaar.com,For your personal finance queries please email at expressmoneyexpressindia.com