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HT Estates - - HTESTATES - Harsh Roongta

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 ceo@ap­na­paisa.com

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