About Home Loan Disbursement and Tenure

[AlertsByVivek]

I took home loan from HDFC, with a sanctioned amount of 45 lakh for a 10-year term.

The first disbursement was only 10 lakh. I have paid 4 EMIs, and it now shows 116 months remaining.

The builder is demanding an additional 5 lakh, so I requested a disbursement from the bank.

The bank reset my tenure to 120 months.

Is this legitimate, or should I ask them about it? I can pay a higher EMI as well.

 

[wcgxlr8]

That is how banks usually adjust. However, you should increase EMIs and reduce tenure as much as possible to avoid paying additional interest.

 

[TaxWiser]

I took home loan from HDFC, with a sanctioned amount of 45 lakh for a 10-year term.

The first disbursement was only 10 lakh. I have paid 4 EMIs, and it now shows 116 months remaining.

The builder is demanding an additional 5 lakh, so I requested a disbursement from the bank.

The bank reset my tenure to 120 months.

Is this legitimate, or should I ask them about it? I can pay a higher EMI as well.

Hey there! First off, kudos on being a responsible homeowner and keeping track of your loan! Let’s break this down:

• Initial Loan Details:

-You took a ₹45 lakh home loan from HDFC for 10 years.​

- The first disbursement was ₹10 lakh.​

• Current Status: You've paid 4 EMIs, and it shows 116 months remaining.
• Builder's Demand:

- The builder wants an additional ₹5 lakh.​

- You requested a disbursement from the bank.​

• Bank's Response: The bank reset your tenure to 120 months.

Now, about that tenure reset:

• It’s not uncommon for the tenure to change when you request additional funds. The bank recalculates everything based on the new loan amount.
• You mentioned you can handle a higher EMI. That’s great! If you’re comfortable with it, consider discussing this with the bank.
• Legitimacy-wise, it’s standard practice, but it’s always good to double-check. Give them a friendly call and ask for clarification.

Precautions:
- Read the fine print and understand any changes.
- Consider the impact on total interest paid.
- Check prepayment options.
- If comfortable, discuss a higher EMI with the bank.
- Keep records of communication.

Remember, transparency and proactive communication are key! Reach out to the bank, express your concerns, and find a solution that works best for you. You’ve got this!

(Source: Conversation with Gemini AI)