Your Queries – Loans: Parent has to pay EMIs on education loan if child can not

The RBI Floating Rate Bond money is sitting with the issuer, ie, RBI. The banks are only channel partners. The repayment also will be coming from the RBI.

By Chaitali Dutta

I took an education loan for my daughter five years ago. She has completed the course but has not got a job. Can I request for an interest moratorium till she gets a job?
—Praveen K Madhavan
The liability is in dual name. Hence, in case the child is unable to secure a job after the course, the payment liability falls on the joint holder, typically the parent, to pay the EMIs.

I had taken a home loan of Rs 22 lakh (7.1% interest rate) with overdraft facility. I have pre-paid Rs 20 lakh. Now I need a car loan of Rs 15 lakh. Should I take a car loan or use the overdraft facility to pay for the car?
– Name withheld
Looking at the interest rate on the home loan and a car loan, the latter would be an expensive borrowing. Hence, utilize the money sitting in your home loan, and buy the car outright, without taking on a higher interest loan for a depreciating asset.

I booked a flat in 2016 when RERA did not exist. In 2018, the builder got a notice for not registering with RERA. Since the project has not progressed, the builder is saying he will return the money. May I complain for interest in RERA?
—Abha Kirty
Yes, you may claim interest on this amount provided a clause to that effect was in the original arrangement. However, the right body for such a complaint would be the consumer forum / department of consumer affairs: Grievances Against Misleading Advertisements (GAMA) portal. Based on the amount in question the complaint is to be done in the District / State / National forum.

What happens to the RBI floating rate bonds serviced by private and public sector banks, when a bank goes for insolvency?
—Prakash Ramachandran
The RBI Floating Rate Bond money is sitting with the issuer, ie, RBI. The banks are only channel partners. The repayment also will be coming from the RBI. In case of the insolvency of the distributor bank, your investment will not be at risk. The only thing which may happen is that RBI asks for alternate bank account details, to pay the interest as well as the maturity proceeds.

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

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