—A Garg If the agreement value of the property you are going to purchase is ₹ 1.4 crore and you wish to avail a loan of ₹ 50 lakh, then you need not worry about the margin I want a home loan for ₹ 50 lakh for a property for which the agreement value is ₹ 1.40 crore. The bank says that I will have to bring in margin money equivalent to 20% of the property value, that is, ₹ 40 lakh. I have another property worth ₹ 1.10 crore. Should I take a loan against this property? money as you are anyway contributing equal to 65% of the margin money which is far higher than the minimum margin requirement of 20%.
Your eligibility will depend on your regular income, credit history, etc. If your income is sufficient and you have enough years of working life left, you can get a home loan quite easily.
If you are taking a loan to buy a property, it is always advisable to take a home loan, as compared to loan against property. Home loans are cheaper than loan against property and are available for a longer tenure (20 years to 30 years) while loan against property is available for a period of maximum five years to 15 years.
Lenders finance upto 80% (90% for loans amount below ₹ 20 lakh) of property agreement value as home loan vis-a-vis 50% to 60% for loan against property.
In case you are unable to get home loan, you can take a loan against property. The process is the same as that for home loans. I availed a home loan in Bangalore. The total sanctioned amount is dis- playing in my netbanking account. I was expecting my builder’s first demand note on July 4, so I mentioned July 10 as the date for EMI on ECS. But the builders’ demand note did not reach me by July 10. Now, even without a builder’s demand note to the bank or the first disbursement of loan by the bank, my EMI has been cut based on the date mentioned on the ECS. Is it ethical? What is the logic behind it?
- B Shastri It seems that though the bank sanctioned your home loan they have not yet released the payment to you or to the builder. Since they have not disbursed the loan amount there is no question of you paying any EMI at all for the amount that is not disbursed to you.
You should approach the branch manager from where you have taken the loan and ask for clarifications. You have a right to get these clarifications in writing. If you are not satisfied with the response received from your branch, you can address your grievance to the nodal officer of the bank, details of which are given on the bank’s website.
If you are not satisfied or do not get any response within four weeks of your complaint to the nodal officer, you should file a complaint with the banking ombudsman on the RBI website at www.bankingombudsman. rbi.org.in I would like to know what all is included in the value of the property. Does it include car parking charges, PLC, club membership, lease rent, etc.?
- Rajesh Pant This would normally include the benefits that are of enduring nature like parking charges, club membership fees if the same is connected with the ownership of the flat. However, it will not include interest free maintenance charges, fire fighting charges, lease rent etc. This will depend on why you want the term to be defined. Harsh Roongta is CEO, Apna Paisa. He can be reached at email@example.com