Channeling gifts and inheritance to close off loans
If we are taking a loan in India, it can be a burden for many years and it can be a burden until we close it. The interest rates are heavy and especially some personal loans are a huge burden. It is always best to not take a loan and try to satisfy our needs without taking any loans. Even if we do so, it is always good to finish off the loans as soon as possible.
There are a few additional options available where people can pool money from different sources to close of the loans. Taking another loan on top of an existing loan can sometimes be an option only if the new loan has lesser interest than the previous loan. This way we can easily close off the previous loan and work with the loan that has lesser interest. There are a few additional options available to close the loan off sooner than the tenure we initially planned. Some of these options are also a tax-free option for us.
Parents can pay the loan EMI for their kids
Inheritance is something that is very common in a family. Usually, the property and assets are inherited from parents to children. This way sometimes parents can help their kids to pay the loan EMI by contributing some amount every month towards EMI or additionally, they can sell of any of their existing property and use that fund to pay the loan.
Some banks offer part payment. For example, SBI is one of the comfortable choices for Home loans because there are unlimited part payment options available and people can keep pushing money whenever they have. When parents give some money to their kids, it can be immediately pushed to close the loan. The more we push money, the faster the loan will get closed.
Receiving gifts to pay the loan EMI
Gifts are another thing that is very common. People are allowed to receive gifts from others as help. There is a certain limit to how much a person can gift others. If the gift value is more than that particular amount the government has defined, we have to pay taxes even if we receive money as gifts. Some people accumulate money from the functions and use that the pay of the loans. For example, it is very common in India to receive money during a marriage function or other function in the house. When people take a huge loan to get married, they would be using this money to close off the loan or repay a part of the loan amount.
Selling a different property to reduce the burden of the current loan
Some people might have additional properties with them that are usually inherited. They might take a loan because the property might be locked and may not be in a state where it can be sold and liquidated. In that case, the individual usually takes a loan for the time being and after that, if the property is in a selling position it is good to make use of that and reduce the loan burden.
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