NRIs must pay EMIs on home loan from NRE account

I had purchased a flat with a bank loan five years ago. Now, I will be relocating to Canada. Can I pay the EMI in dollars from my savings bank account in Canada and link the home loan account with it for ECS? —Avinash Shah

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The home loan is in rupees. Your income in Canadian dollars will have to be transferred to your non resident external (NRE) account in India. The dollars will be converted to rupees as per the exchange rate of that date. Then you may pay the EMI from your NRE account to the home loan account.

I had converted my outstanding credit card amount into one year EMI. Now I have got some money from a life insurance policy. Should I prepay the full amount and will there be any penalty? —Ashok Purohit