I have a house which would be around ₹ 70 lakh at current market price. I need to buy another house for ₹ 70 lakh. Should I mortgage my current house or take another loan? I am a salaried person.
—Ajaz Khan It is advisable to take a regular home loan rather than taking loan against property. Home loans are cheaper than any other loans (including loan against the security of an existing home) and you do not have to provide any col- lateral security except for the house being purchased. Your overall loan eligibility will depend on your disposable income and existing borrowings, if any.
You need to approach any lender who provides home loans. The lender will determine your eligibility on its evaluation of your credit history and your disposable income. Most lenders normally provide loans up to a maximum of 80% of the agreement value of a house as regular home loan. Home loans are available for a longer tenure (20 years to 30 years) as compared to a loan against property (15 years).
In case you are not able to get home loan due to any reason, then you can take the loan against property. The process followed for loan against property is the same as that followed for home loans.
I am 32 years old with a monthly income of ₹ 30,000. My CIBIL score is above 750, but five years ago I settled my credit card and personal loan. Can I still get a home loan?
—Vinod Saxena As per CIBIL information, 90% of the loans are granted for individuals having score of more than 700 points. Anything above 750 can be considered good and anything below 700 can be considered as not so comfortable. While it will be difficult for you to get a loan if your credit score is less than 700, the converse is not really true. So it is not necessary that you will certainly get a loan just because your score is above 750. If your report shows some old delays / defaults that have subsequently been regularised, then even if your credit score is greater than 750, you may face trouble in getting a fresh loan. Just having a good credit score does not guarantee you a loan. The bank will still evaluate your old default and then take a decision.
With an income of ₹ 30,000 per month, you should be eligible for an approximate loan amount of ₹ 12 lakh to
₹ 14 lakh at 10.15% - 10.25% per annum for 20 years tenure if the lender decides to give you a loan.
I have a home loan from a bank worth Rs 7 lacs. The property is in my name but my brother gives the EMI. Now he wants the property in his name. How can I transfer the property ?
We have assumed that your brother is not a co-borrower to the home loan and that he is informally paying your loan EMI. In the given cir- cumstances, you can definitely transfer the house in your brother’s name with the bank’s consent through a sale deed on which you will have to pay stamp-duty and registration charges. Your brother can apply for a fresh loan and can get the same on the basis of his income and past repayment histories, if any. Please bear in mind that taking a new loan will attract processing fees for your brother. Moreover since the transaction is between two related parties, the bank will be extra cautious while granting you the loan.
Harsh Roongta is CEO, Apna Paisa. He can be reached at firstname.lastname@example.org