MUMBAI: Kartik Jhaveri in a chat with Vikram Oza on loans, restructuring and its feasibility.
How does the restructuring of loans work?
Kartik: Due to recession, job loss yes the loans do not work
So does this mean that some one going through a rough patch should go for it?
Kartik: Yes reduce debts by renegotiating existing loans. Switch your financer is the other way
What should this person do if due to some reasons his expenditure has come to Rs 60,000 from Rs 80,000 and has to repay the loans in 14 yrs tenure?
Kartik: In this case if he shifts from his loan then its good or he has to look for an alternative financer opt for a loan with 8.5% This will help save 5-6 lakhs in interest .
So now that he's got an income of Rs 60000 his outstanding is Rs 270,000. So what should he do?
Kartik: Scan the market for best deal available arty and avoid a 2% prepayment penalty IF he cannot negotiate and some one in the market is offering a better deal switch financer. If income increases then do not repay loan rather invest the amount Profits from investments pay towards prepayment.
What are the things's to consider balancing the transfer from one bank to another?
Kartik: If the home loan rates are loan by 1.75% switch financer ensure liquidity before switching banks.
Will the kind of loan affect the reconstruction of it?
Kartik: Absolutely yes. In short term the EMI is high.
As far as EMIs are concerned will it affect my credit report?
Kartik: Reconstructing a loan will not affect individual credit report.