I am in business but due to slowdown my income became very less and there was no question to pay any taxes such as income tax. Now I need investment to stay in market but no bank will provide me loan. I need your advice on, if it is feasible to take loan on my father’ name who is 85 year old and owns a selfoccupied home under reverse loan scheme. My mother expired many years back. We all live as single HUF along with my kids, total five members, in all. I am sure I will be in position to repay all amount in lump sum within few years. I am his only legal heir. Looking forward for your sincere advice in all aspects
—Satinder Gambhir Reversed mortgage loans are extended by scheduled banks and housing finance companies registered with NHB. The reverse mortgage loan is secured by way of equitable mortgage of residential property.
Your father should be the owner of the residential house property, which is acquired by him. He should also be staying in the same house. The residential property should be free from any encumbrances and the residual life of the property should be at least 20 years.
The loan is provided through monthly/quarterly/ half-yearly/annual disbursements or a lump sum or as a committed line of credit or as a combination of the three. The maximum lump sum, which your father can take is restricted to 50% of the total eligibility amount. The loan cannot be used for the purpose of speculation.
The maximum tenure of the loan is 20 years or till the demise of the borrower. The amount of loan can undergo revisions based on re-valuation of property at the discretion of the lender. Your father can continue to stay in the same residential property as his primary residence till he is alive.
If any time during the loan tenor if you feel you can prepay the loan, you can exercise this option on behalf of your father. There are no prepayment charges for such prepayments.
The maximum lump sum payment, which one can take, is restricted to R15 lakh for medical emergency in the family for dependents only so I am afraid you cannot get the lump sum loan under the reverse mortgage for your business.
From where do I can get loan for a 16-year-old flat?
—Mahesh Ratra You can get a home loan to buy a resale property based on your income and the title of the property. The age and the condition of a building has a bearing on loan eligibility and tenure. The banks are normally reluctant to lend money for a property, which is very old. In your case, as the property is only 16 years old (and if in a good condition) there should not be any problem in getting a loan from any bank . Normally banks grant loans of up to 80% (90% for loan amount below R20 lakh) of the agreement value of the property as a home loan. If your income is sufficient to justify the loan, you should not have any problem in getting a loan provided the condition of the house is good and the valuer certifies the value as well as balance life of the property as being more than the loan tenure. Frequently, the valuation as determined by the banker’s valuer is significantly lower than the actual cost and hence your effective down payment may go up.