Pay accrued interest in small amounts as early as possible

By Chaitali Dutta

I availed the moratorium for six months and will pay my EMI this month. After a few months should I also pay some of the accumulated interest for the moratorium period?
—S Rao
Yes, absolutely. That will reduce your burden. Pay small accumulated amounts as and when you have surplus to clear the six EMIs as well as the accrued interest in this six-month period.

Can I ask my bank to restructure my loan as I cannot pay EMIs for at least one year?
—Manoj Malhotra
As of now the RBI is figuring out the way forward and no clear instructions have been given to the bank. Officially the moratorium is over in Aug 2020. You may put in a request to your banker for further relief giving the reasons as to why they should consider your request. Attaching proof of your situation with the request letter is advisable.

I cleared my car loan a year ago but forgot to take the papers from the bank. I have relocated and want to sell the car now. What should I do now?
—K Dhingra
You may write to your bank to send you the papers by courier. Another option would be to request a friend/ relative to visit the branch personally to get the RTO forms and loan account closure letter. You may have to give an authority letter to the person visiting the bank.

 I have two years of home loan repay-ment left. As I am paying interest of 8.7%, should I balance transfer to a bank lending at repo rate?
—A K Gupta
Talk to your existing bank and reduce your interest rate with it. A balance transfer will involve expenses and paperwork which may not be worth the interest saved in the next 20-24 months.

My home loan is sanctioned and I have paid the token amount. Now I want to wait till the Covid pandemic settles. I have convinced the seller. What should I do with the loan as the manager is keen for disbursement?
—Mohit Sinha
For the bank manager, it will be a loss of business therefore he will suggest otherwise. But you are the consumer, you should decide when you want to go ahead with the purchase. Tell the bank you will reapply when you decide to buy later.

The writer is founder, AZUKE Personal Finance Advisory (www.azuke finance. com). Send your queries to fepersonalfinance@expressindia.com