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HT Estates - - HTESTATES - Harsh Roongta

My fa­ther re­tired from the postal depart­ment. Can he get a home loan?

—Shikhar Gupta For avail­ing any credit fa­cil­ity, the ap­pli­cant has to pro­vide proof of con­sis­tent in­come. Since your fa­ther has al­ready re­tired, the lender will not be in a po­si­tion to of­fer him a home loan on the ba­sis of his pen­sion in­come. It would be ad­vis­able that any other earn­ing fam­ily mem­ber joins him as a co-bor­rower so that he can get the loan. I have taken a home loan from a bank for ₹ 7 lakh and the prop­erty is in my name but my brother gives the EMI. He now wants the prop­erty trans­ferred in his name. What is the process to trans­fer the prop­erty in his name?

—San­tosh Ya­dav In the ab­sence of any in­for­ma­tion 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 cir­cum­stances, you can def­i­nitely trans­fer the house in your broth- er’s name with the bank’s con­sent, but this will have stamp-duty and reg­is­tra­tion charges im­pli­ca­tions.

Your brother can ap­ply for a fresh loan and can get a home loan on the ba­sis of his in­come and past re­pay­ment his­tory, if any.

Also, since this is a trans­ac­tion is be­tween two re­lated par­ties, the bank will be ex­tra cau­tious while grant­ing you the loan and may sub­ject the prop­erty to rigid val­u­a­tion norms.

I had a credit card with a credit limit of ₹ 25,000 some five years back. Due to fi­nan­cial con­straints, I was un­able to make pay­ments on time.

When I started work­ing with an es­tab­lished com­pany and was earn­ing well, I de­cided to pay off the amount. When I checked for the out­stand­ing amount, it stood at ₹ 50,000 which I was not able to af­ford. Sub­se­quently, I tried to set­tle the out­stand­ing amount by pay­ing an amount of ₹ 10,000 but was re­fused by the bank.

I am now look­ing for a per­sonal loan to ser­vice a house lease but banks have re­fused. Is there a way I can get it?

— Soami Iyer Be­fore grant­ing you a loan, banks will first ob­tain your credit re­port from the Credit In­for­ma­tion Bureau (CIBIL). Your de­fault will cer­tainly re­flect in the re­port and will con­tinue to stay in their record for at least seven years be­cause of which you will face dif­fi­cul­ties in get­ting a loan or a credit card even af­ter clear­ing off your dues. Even if you try and set­tle the amount now, your credit re­port will con­tinue to show that you had de­layed pay­ments in the past. And if you try and set­tle it at a lesser amount, the record will show that the bank had to write off some amount. This will have neg­a­tive im­pli­ca­tions.

With such long de­lay and de­fault, your credit score is bound to be very low mak­ing it dif­fi­cult for you to get any credit fa­cil­ity from the len­ders.

Please get the is­sue re­solved as soon as it is pos­si­ble as per­sis­tent de­fault is hurt­ing your credit rating and credit his­tory badly.

You can try and re­build your credit his­tory by tak- ing a se­cured credit card (se­cured against FD) or loan against tan­gi­ble move­able se­cu­rity such as fixed de­posits /jew­ellery/shares/units of mu­tual funds/life in­surance pol­icy with high sur­ren­der value etc where the lender can give you a loan de­spite your ad­verse credit his­tory.

By re­pay­ing such a loan reg­u­larly, you will grad­u­ally im­prove your credit his­tory. This is a very slow process and it will take at least a cou­ple of years be­fore you can im­prove your credit record and be el­i­gi­ble for a reg­u­lar loan or a credit card.

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