Your Queries: How can I scale back curiosity burden on my bank card invoice?

By Chaitali Dutta

I’ve 1 lakh due on a bank card for which I’m paying curiosity each month. Can I scale back curiosity burden by changing the due into EMI?

—Rahul Gupta

Bank cards cost a excessive rate of interest on overdue quantities, to the tune of 24% to 40% every year relying on the service supplier and card taken. You might be paying solely the curiosity quantity each month on this Rs 1 lakh. It’s essential to pay further quantity each month to cut back your principal excellent. Even within the EMI possibility with the service supplier, the curiosity part will stay. Repay this bank card overdue quantity as quickly as doable. It’s possible you’ll take into account taking a private mortgage out of your financial institution and paying off the bank card mortgage.

I wish to purchase a property in Pune after one 12 months. I’m 52 years with six years for retirement and my spouse can be working. How a lot mortgage will a financial institution give me as the worth of the property shall be round Rs 80 lakh plus registration?

—P Ok Sankaran

Contemplating a complete outlay of Rs 85 lakh, you might get a mortgage of Rs 60 lakh. That may have an EMI of round Rs 1.25 lakh. If the combination month-to-month, submit tax, in-hand wage of yours and your spouse’s, is about Rs 2.5 lakh, you might be good to go. Alternately, in case your revenue is decrease, then you must prepare for a bigger margin cash and you may take a decrease quantum of mortgage.

If I pay two further EMIs yearly on my Rs 40-lakh mortgage for 20 years, how a lot curiosity can I save?

—Deepak Arora

Contemplating further cost of two EMIs on the finish of the 12 months from the time that you just take the mortgage, you’ll pay curiosity of Rs 28.86 lakh as a substitute of Rs 41.79 lakh. It is a saving of Rs 12.93 lakh curiosity. Your mortgage will recover from in 175 months as a substitute of 240 months.

My 28-year-old daughter desires to purchase a flat. She desires to take mortgage and save tax. Registration shall be in joint identify of my spouse, daughter and I. Will there be any drawback when she will get married?

—Rakesh Prakash

I don’t foresee any drawback in proudly owning this property in joint identify. Let your daughter be the primary holder. If the eligibility of the house mortgage is barely on her revenue, she will be able to declare the complete advantages for revenue tax functions.

The author is founder, AZUKE Private Finance Advisory (www.azuke finance.com). Ship your queries to fepersonalfinance@expressindia.com