Experts suggest paying simple interest on education loans during the moratorium period to manage debt effectively. For home loans, adding a spouse as a primary borrower can improve eligibility. Meanwhile, car loan prepayments often carry no penalty after one year, and hybrid home loans help when interest rates might rise.

What is the simple interest charged for the moratorium period in an education loan? Should I pay the entire interest after the end of the moratorium period?

The rate will depend on the interest rate at which the education loan is approved. That rate will be applied as simple interest. For clearing the interest amount, you can decide to pay it off after the moratorium period or annually, as per your surplus availability.

I have a home loan of Rs 50 lakh and my take home is Rs 2 lakh a month. I want to invest in another property. Should I make my wife the primary applicant for higher loan eligibility?

-- Ekam Singh

The data here is inadequate for me to give specific recommendations. Yes, it is possible for your wife to be the primary borrower in the new home loan. In case she does not have independent earnings, then the loan eligibility will be based on your financials. The CIBIL scores of both will play a critical role in this case. The new property should be jointly held with your wife as the first holder.

Do I have to pay any penalty for prepaying my car loan as I am planning to upgrade my vehicle?

-- Akash Verma

If you have completed more than one year of an old car loan, mostly you will be able to pay the entire outstanding without a penalty.

What is a hybrid home loan and how is it beneficial in the long run?

-- Arpit Tiwari

In a hybrid (flexi) home loan, the initial few years the loan runs on fixed interest rates. After the agreed period, the loan carries a floating interest rate. These kinds of loans are beneficial if taken in an environment where rate hikes are expected in the next 2-3 years. However, if the interest rates are falling, then these hybrid loans should be avoided.

My wife is looking for a loan of Rs 25 lakh to start a business. She will invest around Rs 10 lakh from her savings. What type of loan will be better for her?

-- Vipul Kumar

If she has her business planned out and has made a project report then she can apply for a small business loan. This will be at a lower interest rate. However, if the business is not yet fully thought out, then a personal loan should be opted for. The latter will come at a higher interest rate.

Do banks finance used cars and what should be the tenure of the loan?

Yes, all lenders have a used car loan option. The loan tenure usually ranges from 5-7 years.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to fepersonalfinance@expressindia.com