We have a residential property in my mother’s name and she is a Central government pensioner. I am also working in the public sector. Can I get loan against property on the above-mentioned property?
— Mukul It would be very difficult to get a loan against a residential property where the bor- rower is not earning regularly and is a pensioner. However, since you are employed, you can join your mother as a co-borrower. In that case, your income would also be considered for the purpose of eligibility. Typically you will be able to get up to 50% to 60% of the value of the property or twice your annual income (whichever is lower) as a loan against your mother’s property. I have taken a home loan of R28.5 lakh at 11.50% from a well-known bank. Is it wise to switch over or demand for reduction in interest rate? What is the ideal interest rate that the bank should offer?
— Sharad The current competitive rate in the market for home loan amount below R30 lakh is around 10% to 10.25% per annum. Since the base rate of the bank you mention itself is 10.50%, it will not be possible for them to offer you an interest rate below their base rate.
You should evaluate the option of switching your loan to another lender. Since the RBI has already instructed banks not to charge the foreclosure fee in respect of floating loans, you will not have to pay any penalty for shifting such loans. However, you may have to pay some processing fee to the prospective lender. In fact, most lenders will agree to take over your loan from the existing bank without any significant processing fees. So effectively, there will be no charge for shifting the loan to another lender.
You will need a good track record of payment of your EMIs on time to be able to get an offer from another bank to take over your existing loan. I earn R20,000 as salary (take home) and there is no deduction. My CIBIL score is 799 and I am 33 years old. I am looking for a home loan amount of R13 lakh to R15 lakh. Am I eligible?
— Shekhar A person with a credit score of 799 is considered to be a very creditworthy individual. You can negotiate with the lender for a better interest rate on a home loan. Normally, lenders grant home loans of up to maximum of 80% (90% for loan amount below R20 lakh) of the value of the property. The overall eligibility will be based on your income, your regular household expenses your past credit history on repayment of loans and credit card dues.