By Chaitali Dutta

I took a home loan for Rs 12 lakh and applied for PMAY. I want to pay Rs 3 lakh in the first year on top of the regular EMI to reduce the interest outlay. Is it possible to pay like this?
—Rahul Hire
Yes, it is possible to prepay your mortgage loan when you have used PMAY. However, you will be required to repay a portion of the subsidy used by you. This will be calculated based on the reduced tenure of your loan.

My relative, who had a PPF account, recently died. His candidate does not want to withdraw the amount from the PPF account immediately. What are the rules for the continuation of accrual of interest on the amount deposited, closing the account, etc.
—Amar Nath
The bank must be notified immediately of the depositor’s death. All deposits to the PPF account will stop immediately. Until the nominee completes the paperwork to claim the balance in the PPF account, the balance will continue to earn interest. It is recommended not to let the balance continue in the PPF account for long after the depositor’s death, as the nominee is only the trustee of the amounts and is not the rightful owner.

When sending currency to children for one of the RBI permitted purposes, can the remitting bank ask for proof of purpose or is the statement of purpose sufficient?
—Rajiv Kaushik
Under FEMA rules and existing banking procedures, the shipper’s declaration is sufficient. However, if the amount is close to the LRS limit for the individual for that year, the bank may request additional proof.

I took a gold loan from an NBFC but the interest rate is very high. Can I change the loan to a bank?
—Sanjeev Bisht
Transferring a gold loan has its challenges, as the bank may not be able to approve you for a gold loan without inspecting your collateral. The NBFC will not release the decorations/gold as the loan is still pending. The only way you could do this trade would be to take out a bridging loan through a personal loan. Here too the personal loan will be more expensive than a collateral-backed gold loan.

The author is founder of AZUKE Personal Finance Advisory (www.azukefinance.com). Send your inquiries to [email protected])