CHEQUE BOOK

HT Estates - - Front Page - Harsh Roongta

I have a joint home loan from a hous­ing fi­nance com­pany, with me, my fa­ther and brother as ap­pli­cants. I am the pri­mary ac­count holder. I want to change this to a sin­gle ac­count holder, which will be me. The bank has re­fused to change this as the prop­erty is mort­gaged with it and it can­not do this un­less the loan is closed. What are my op­tions? Can I trans­fer the loan to another bank where I re­move the joint hold­ers from the loan ac­count dur­ing tran­sit to the new bank, re­quest­ing them the change (my fa­ther and brother are happy to sign any le­gal doc­u­ments, if re­quired)

—Mithilesh Ti­wari If your fa­ther and/or brother are also co-own­ers in the prop­erty then ev­ery lender will in­sist on them be­ing cobor­row­ers/co-ap­pli­cant with you. In case they are joint own­ers re­mov­ing their names as co-own­ers will have stamp duty / regis­tra­tion charges im­pli­ca­tions. How­ever, if nei­ther of them are co-own­ers and your in­come is suf­fi­cient to jus­tify the loan, you can trans­fer the home loan from one lender to another and get the names of your fa­ther and brother re­moved in the process.

You will need a good track record of pay­ment of EMI’s of present home loans as well as other loans/credit card dues to be able to get an of­fer from another lender to take over your ex­ist­ing loan.

I want to take loan of R12 lakh. My age is 36 years. Should I go for a 15-years or 20-year loan? My cur­rent take-home monthly salary is R30000.

—TK Awasty Re­mem­ber, the shorter the ten­ure, the higher the EMI per lakh. (For ex­am­ple at 10% the EMI per lakh for 20 years is R965 and for 15 years it is R1075. As the EMI in­creases, your loan eligibility de­creases. For a net in­come of R30,000 per month in the same ex­am­ple, the loan eligibility will be around R14 lakh for 20 years and R12.50 lakh for 15 years (as­sum­ing that the lender will con­sider 45% of your net monthly in­come as avail­able for pay­ing of all EMI’s and you are not ser­vic­ing any loans cur­rently)

Even if loan eligibility is not a con­straint, you should con­sider tak­ing longer ten­ure un­der float­ing rate. This way you get bet­ter loan eligibility with­out un­due stress on your monthly cash out­flow. At the same time, you can pre-pay the loan when liq­uid­ity per­mits you to do so with­out any pre­pay­ment penalty. I am hav­ing a per­sonal loan with one of the banks. Can that be clubbed with a home loan as I can pay only one EMI at a time?.

—Ran­jit T Sarin The home loan and per­son- al loan can­not be clubbed since both are dif­fer­ent prod­ucts. You can ask your home loan lender to give you a top-up loan on the se­cu­rity of the house and you can pre­pay your per­sonal loan with it. You will be el­i­gi­ble for a top- up loan only if your in­come is suf­fi­cient to ser­vice the EMIs on both the home loan and the top-up loan and the prop­erty value is suf­fi­ciently large to pro­vide an ap­pro­pri­ate mar­gin for both loans put to­gether.

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