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.