My bank has disbursed the loan amount and started charging the interest on it without the coapplicant’s signature on all the documents. The bank officials say that the loan has been disbursed and, therefore, interest is chargeable. The issue now is that the co-applicant is not ready to sign the loan agreement documents. The co-applicant’s income was not clubbed while taking this loan and the co-applicant is also not included in the property agreement. The bank says that without the co-applicant’s signature, they will not release the loan cheque to the main applicant and if the co-applicant doesn’t sign the necessary document, the loan will get cancelled. How can the bank charge interest on the amount which is not handed over yet to applicant. What is the way out?
— Rahul You seem to have raised two questions. First is whether the bank is right in charging interest without handing over the disbursement cheque. The answer to that is a clear no. If, despite everything, the bank claims it will charge interest for the period when the disburse- ment has not been handed over to you, you should file a written complaint with the nodal officer of the bank. The details will be available on the bank’s website. If the nodal officer does not resolve your complaint to your satisfaction within 30 days, you can then file a complaint with the banking ombudsman. But I am sure in a clear-cut case like this, your issue will be resolved.
The second question raised by you seems to be whether a co-applicant is necessary at all. That clearly is the bank’s discretion and would also have been part of the sanction letter. So you have a choice to go to another bank which does not insist on the co-applicant or somehow convince the co-applicant to sign the documents. You will need to decide which option is easier for you.
Can I take joint home loan with my sister to increase my eligibility amount?
— Suresh It is very unlikely that the lender will allow your sister to join you as co-borrower for the loan. Normally, lenders allow immediate kin like spouse, parents, son as coborrowers to the loan and a few lenders even allow brothers as co-borrower. Most banks will provide a loan to brothers on a case-to-case basis, but it might be more difficult for a combination of brother and sister.
If you can convince a bank that the income of the two borrowers will constitute a single economic unit and is likely to remain so in future as well, then they may agree to allow a brother and sister to be co-borrowers.
What is the importance of CIBIL in getting a home loan?
— Prabhat CIBIL stands for Credit Information Bureau (India) Ltd. though now it is the generic name for Credit Information Company. It is the repository of information which has been pooled in by all banks and lending institutions operating in India. It maintains the information related to the credit history of commercial and consumer borrowers. It provides this information to its members in the form of credit information reports.
Before granting the credit cards or any credit facilities, almost all the lenders obtain the credit report of the applicant from the CIBIL.
If any loan or credit card payments show as overdue or amounts settled in the CIBIL records, it will continue to be shown as such for the next seven years. It will be almost impossible for you to get a home loan if your CIBIL report shows any significant default or write-offs. It is very important for you to maintain a good credit history so that you are able to avail any credit facility from the system in the future.