CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

Is there any re­la­tion be­tween a credit card and the home loan ap­proval process? I am plan­ning to take a home loan after two years.

—Satya Shah Your pay­ment track record on credit card dues will have a strong bear­ing on your abil­ity to get a home loan in the fu­ture. If you have de­faulted or de­layed in the past on credit card pay­ments, banks are un­likely to grant you a home loan (or any other loan for that mat­ter) ex­cept the one which is fully backed by tan­gi­ble ie eas­ily en­cash­able se­cu­ri­ties like a loan against gold, shares or a bank fixed de­posit. It is ad­vis­able to make timely pay­ments on your credit card dues to avoid its ad­verse im­pact on your abil­ity to bor­row in the fu­ture. How­ever, if you are reg­u­lar in mak­ing pay­ments, it will im­prove your el­i­gi­bil­ity for a home loan. If there are large val­ues payable on the credit card it could lower your home loan el­i­gi­bil­ity amount. If you are prone to im­pul­sive pur­chases lead­ing to over spend­ing, you should shift to a debit card and keep your credit card only for emer­gen­cies.

I have a joint home loan with a hous­ing finance com­pany along with my fa­ther and brother (I am the pri­mary ac­count holder). I want to change this to a sin­gle loan holder. The bank has re­fused to change it as the prop­erty is mort­gaged with them and the changes can­not be made un­less the loan is closed.What are the op­tions be­fore me? Can I trans­fer the loan to an­other bank, thereby au­to­mat­i­cally re­mov­ing the names of the joint hold­ers from the loan ac­count. My fa­ther and brother are happy to sign any le­gal doc­u­ments.

—Su­bodh Sharma If your fa­ther and/or brother are also co-own­ers in the prop­erty then ev­ery bank will in­sist that they be­come your co-bor­row­ers. Re­mov­ing their names as co-own­ers will have stamp duty/reg­is­tra­tion charges im­pli­ca­tions.

How­ever, if nei­ther of them are co-own­ers and your in­come is suf­fi­cient to jus­tify the loan, you can trans­fer the home loan from one lender to an­other and get the names of your fa­ther and brother re­moved in the process. You will need to sub­mit a record of timely pay­ment of your EMIs to get an of­fer from an­other lender.

I am plan­ning to ap­ply for a home loan to buy a res­i­den­tial plot in Ban­ga­lore to avail of in­come tax ben­e­fits. Which type of plots - BDA, cor­po­ra­tion, gram­tana, private town­ships - will en­able me to get a home loan?

—Raghav Ra­man Plot loans are more re­stric­tive and avail­able only for nona­gri­cul­tural ones bought specif­i­cally from statu­tory au­thor­i­ties such as BDA or de­vel­op­ers ap­proved by the spe­cific lender. Nor­mally, len­ders will not finance more than 60% to 65% of the to­tal cost of the plot and the re­main­ing 35% to 40% has to come from your own sources. No tax ben­e­fits are avail­able on a pure plot loan. You have to start the con­struc­tion of the house to be able to get a loan for con­struc­tion, in­clud­ing the cost of the plot which is called a com­pos­ite loan.

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

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