Your Queries – Loans: Stood as guarantor? You have to repay loan if borrower defaults on EMI

By Chaitali Dutta

I was a guarantor for a friend’s housing loan. He has defaulted on the EMI for the past six months. What should I do as I fear that the bank will harass me now?
—Mahesh Padalkar
The die has been cast. Once you become a guarantor; it will be difficult to get out of the responsibility. Guarantee should be given only in very select, special cases where you are ready to take on the repayment burden if the original account holder does not pay. The last six months have been difficult for many due to the pandemic. Hope that your friend can pay the outstanding EMIs soon.

My brother and I are joint owners of our parents’ property though we do not have any documents to show our name in the property as my father never wrote a will and my mother is no more. Can we get a joint loan of Rs 70 lakh to redevelop the property? What documents are needed to get the loan?
—S R Rawat
The first step would be to get the property in both the brothers’ name. For this, get a succession certificate from the court. Once the property is in both your names, you may apply for a loan as well.

Is there an option for pregnant women to avoid paying home loan EMI due to non- payment of salary by employer whilst on maternity.
—Rahul Lumb
As of now there are no rules which allow for this benefit of EMI holiday while on maternity leave. Please refer to the Maternity Leave Benefit Act 1961 and The Maternity Leave (amendment) Bill 2017 which allows for 26 weeks of paid leave which is applicable for all permanent employees, contract workers or engaged with agencies.

I have an education loan sanctioned in 2017. I started paying EMIs from November 2019, with the moratorium period yet to expire. Can I pay a lump sum amount along with my EMIs? Will it help me in claiming additional tax benefits under Section 80E?
—Vinayak Sharma
The entire interest paid in the year of the education loan taken for self/ child/ spouse is eligible for deduction from your taxable income. Ask your bank the breakup of principal and interest component of outstanding loan amount. Then you may plan the additional repayment you would like to do in this financial year.

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