Money Matters

Real Estate

Pankaj Arora

I am yet to take possession of the property from the developer. Now that the government has extended the deadline for completion of projects by six months, how does it impact my rights? Will I get any rebate from the bank on my home loan?

Adhil Shetty, CEO, BankBazaar.com

Delay in possession has significant financial implications for buyers. Since Covid-19 is being considered as force majeure, developers are currently not required to pay any compensation for the delay for six months. As far as the home loan is concerned, you will have to continue paying pre-EMIs. A six-month delay in the project means you will be paying pre-EMIs on the entire amount drawn without reducing your principal amount for six more months. If you have already started repayments, you can opt for the moratorium to reduce your current burden. However, do bear in mind that this will also increase your interest outflow significantly, and you will typically need to prepay 1.2X of the availed moratorium a year down the line to mitigate the impact.

Insurance

Nishant Jain

I am a 26-year-old. My father is 62 and my mother 59. I want to buy a family floater health policy covering the three of us. Should I go for it or should I buy an individual policy covering myself and a family floater only for parents? Please advise.

Naval Goel, CEO & Founder of PolicyX.com

Given your situation, it is advisable to buy an individual health insurance policy for yourself and a family floater plan for your parents. Age is an important factor for considering the health insurance premium. So, it is advisable to go for an individual plan. Make sure to choose an adequate sum assured for yourself and your parents.

Investment

Himanshu Verma

I am an NRI based in London and want to invest Rs 20 lakh each for short-term and long-term in India. Is NRE term deposit a good choice? What could be the other options? I have no other source of income in India.

Suresh Sadagopan, Founder, Ladder 7 Financial Advisories

NRE fixed deposit (FD) is a good option. It is tax free in India. But one needs to consider the impact of global income taxation in the country of residence. This is something many people dont factor in and think the income is non-taxable as it is tax free in India. For the long-term, equity-oriented investments are a good bet. It can be through mutual funds, PMS products or any other equity-oriented investment products.