Your queries – Loans: can erase a mortgage online but recover the original sales contract



The changes would be automatic when the repo rate changes.

By Chaitali Dutta

I want to prepay my mortgage. I work overseas and cannot visit India due to Covid. Can I pay the full amount online and ask the bank to send me an electronic copy of my papers at home?
—Amit Khanna
Yes, it is possible to repay part or all of the outstanding loan to the loan account if you have online access. However, my suggestion would be to give an authorization letter to a local trustworthy person who can retrieve the original documents for your home from the bank. The original sales contract is an essential document and should be kept safe at all times.

I had taken out a car loan three years ago. Now I want to sell the car. I have to pay EMI for another two years. How to sell and clear the loan?
—Ashok Kumar
Once you have a buyer, you need to share the loan details with the buyer. The buyer will first pay part of the purchase price to the loan account to settle the loan. You need to collect the RTO forms from the bank, which will remove the lien from your car. Then the buyer will pay you the remaining amount, if any, directly to you.

My NBFC charges me 8.5% interest on the mortgage. How do I transfer the loan to a bank that will offer me lower interest rates?
—Deepak Hardayal
If you regularly pay your EMI and your loan account is not an NPA, then any bank would be happy to take over your loan. Talk to the bank first and share your loan details and income with them. They will sanction you the loan equivalent to the current loan with your existing NBFC. Check how much the interest rate is lower than the 8.5% you are currently paying. If it is more than 1% lower, it makes sense to stagger the loan.

I have a house in my name and my gross annual income is Rs 15 lakh. My wife is a housewife. I want to take out a loan of Rs 13 lakh to buy a house in his name. Is she eligible for the PMAY plan?
—Sanjay Gajjar
The main eligibility criterion of Pradhan Mantri Awas Yojna (PMAY) is that the beneficiary must not own a “pucca” house in his name or in the name of another member of his family, in any part of the country. You mentioned that you have a house in your name. Therefore, your wife will not be eligible for the PMAY grant.

The author is the founder of AZUKE Personal Finance Advisory (
Send your questions to [email protected]

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