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HT Estates - - HTESTATES - Harsh Roongta

I am liv­ing/work­ing out­side In­dia, I took a home loan from a bank. For this pur­pose, I had to make GPA (Gen­eral Power of At­tor­ney). Can the GPA holder mis­use it? Can he sell the prop­erty with­out my knowl­edge? What are the risks in­volved here and how can I ad­dress them?

—Su­jan Sharma The holder of POA will be able to ex­er­cise only the pow­ers that you give to him un­der the power of at­tor­ney. Please note that it is not nec­es­sary for you to ex­e­cute an open/ gen­eral power of at­tor­ney. You can give limited au­thor­ity to the power of at­tor­ney holder un­der the doc­u­ment to be ex­e­cuted. I would ad­vise you to take the help of a good lawyer in pre­par­ing such a doc­u­ment. So in­stead of ex­e­cut­ing an open gen­eral power of at­tor­ney, you need to give only re­stricted power to the del­e­ga­tee. With such re­stricted power of at­tor­ney, the per­son can­not sell the prop­erty with­out your knowl­edge.

You can only au­tho­rise the per­son to ex­e­cute doc­u­ments in con­nec­tion with pur- chase/home loan, etc and ex­clude the power to sell / pledge or other­wise deal with the prop­erty in such a doc­u­ment.

In fact, the bank will pro­vide their stan­dard for­mat to you. If you read that, it does not au­tho­rise the POA holder to sell the prop­erty or in any man­ner deal with the prop­erty. It only au­tho­rises him/her to sign the loan ap­pli­ca­tion forms and au­then­ti­cate doc­u­ments on your be­half and sign the loan and other re­lated agree­ments and let­ters. Read that for­mat once and then get it ex­e­cuted. You are un­likely to have a prob­lem.

But if it is a ma­jor is­sue, then you will need to be here per­son­ally to com­plete the loan doc­u­men­ta­tion. I have set­tled dues with a bank in July 2010 for a credit card I was hold­ing. My CIBIL re­port shows the sta­tus as Post (WO) Set­tled. My CIBIL score is 812. I want to take a home loan from SBI. What are the chances that I would get a loan?

Ga­gan Nag­pal Firstly a credit score of 812 is ex­cel­lent and sur­pris­ing given the de­fault re­ported in your credit re­port. In most like­li­hood it must have been a small amount that must have been set­tled rea­son­ably quickly. That’s the only way you can get an ex­cel­lent credit score de­spite this de­fault in your credit record.

As per CIBIL in­for­ma­tion, 90% of the loans are granted for in­di­vid­u­als hav­ing a score of more than 700 points. The credit score is just a start­ing point to check the prob­a­bil­ity of the bor­rower de­fault­ing on re-pay­ments of the loan. The fi­nal de­ci­sion to sanc­tion the loan will also be de­pen­dent on your dis­pos­able in­come, your reg­u­lar house­hold ex­penses and cur­rent credit dues, if any. Con­sid­er­ing your cur­rent credit score, there is no harm in ap­ply­ing to SBI for home loan, but they will def­i­nitely ask for greater de­tails on the de­fault is­sue.

I am 33 years old, work­ing in a pri­vate school with a monthly salary of ` 14,000. Can I get a home loan of around ` 9 to 10 lakh and what would be the rate of in­ter­est?

Shailesh Gupta Nor­mally len­ders grant home loan up to max­i­mum of 90% (for loan amount be­low ` 20 lakh) of the agree­ment value of the prop­erty as a home loan. The over­all el­i­gi­bil­ity will be based on your in­come, your reg­u­lar out­go­ings and re­pay­ment track record, if any.

Since you are 33 years of age, with a net monthly in­come of ` 14,000 per month, you should be el­i­gi­ble for ap­prox. loan amount of ` 6 lakh @ 9.95% - 10.25% pa for a ten­ure of 25 years pro­vided you have no other loans to ser­vice. You can add your earn­ing par­ents / spouse as cobor­rower to the loan to in­crease the loan el­i­gi­bil­ity.

Harsh Roongta is CEO, Apna Paisa. He can be reached at ceo@ap­na­paisa.com

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