I have taken home loan from SBI 61 Lakh for under construction apartment in Bengaluru. I would request your expert opinion on the preclosure of loan from sale of my old apartment. So can i close / reduce from the sale of property? Or any better suggestions...

Ans: There will be no pre-payment charge on the partial pre-payment of Rs 10 lakh being made to LIC Housing Finance as it is not being made by transferring the loan to another lender. Yes, you can request LIC Housing Finance to change the fixed rate to the current floating rate but there can be some charges for such conversion.

Ans: Hi, You need to pay the entire 27 Lakhs.

Ans: Yes, this is a common approach for financing a new property purchase. Here's how it can work:
1. Financing the New House with a Loan:
• You can proceed with the bank loan you've availed jointly for the new under-construction flat. This allows you to make stage payments as required by the builder.
2. Using Wife's Flat Sale Proceeds for Loan Repayment:
• Once your wife finds a buyer for her flat, the sale proceeds can be used to repay the existing loan partially or fully. This will significantly reduce your monthly EMIs or even close the loan depending on the sale amount.
Things to Consider:
• Loan Agreement: Review your loan agreement to see if there are any prepayment penalties associated with paying off the loan early with the sale proceeds.
• Tax Implications: Selling your wife's flat might have capital gains tax implications. Consult a tax advisor to understand your specific situation and potential tax liabilities.
• Timing: There might be a time gap between taking the loan and selling your wife's flat. Be prepared to manage the loan EMIs during this interim period.
Additional Tips:
• Bridge Loan: If there's a significant gap between taking the loan and selling the flat, consider a temporary bridge loan to cover the interim EMIs. However, bridge loans typically have higher interest rates, so explore this option cautiously.
• Transparent Communication: Maintain open communication with the bank regarding your plans to use the sale proceeds for loan repayment.
By carefully planning and considering these factors, you can leverage your wife's flat sale to manage the loan for your new house purchase.

Best Regards,
K. Ramalingam, MBA, CFP,
Certified Financial Planner
www.holisticinvestment.in

Ans: you may need a proper plan to reduce or close your loan. you may prepay a part of the loan from any amount that you receiveas windfall like bonus,etc.