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 firstname.lastname@example.org