If the property (for which I have taken a home loan) goes under some kind of legal dispute or the builder stops construction, will my loan be impacted? Will I need to keep paying EMI? Will my property insurance come in use?
—T Mansukhani Your liability to service your home loan is independent of your inability to get possession of the property either due to a legal dispute or fault of the builder. In case there is delay in getting possession for any reason, you will have to keep on paying the EMI. Property insurance does not cover risks on matters pertaining to delay due to builders’ faults or legal disputes.
What security do I have to provide for home loan?
—Sambhav Yadav The bank will take exclusive charge of the property that is to be financed by way of deposit of title deeds or other collateral security, as they deem necessary from you. In most cases no other security will be needed.
I am an NRI and want to buy a house in India. I plan to take a home loan from a bank in India through my NRI account. Will the bank give me a loan if I repay the amount in one year? Is there any minimum period to repay the loan amount?
—Anand Sharma Most often, home loan are available for tenure of five years and above. You can always take a 5-year home loan and prepay it after one year. Pre-payment of such a loan may attract pre-payment charges if provided under the agreement. However, there are several banks you can apply for a loan from in India. Our advise it to check around and compare offers before you finalise your lender.
Can we claim both HRA and home loan benefit?
—Gaurav Singh Yes you can claim both HRA and home loan provided you are able to prove that you are staying in a rented premises not owned by you and you are paying rent on it .
The exemption of HRA allowance is not affected in any way whatsoever by claiming deduction for inter- est payable on a loan taken to buy any other property. This is irrespective of where such owned property is located and whether such owned property is used for self-residence or is given on rent.
Please tell me what specific details we have to ask from dealer before purchasing a house to know the authenticity of the property dealer.
—Krishan Kumar I think you are referring to a broker. Currently, there are no regulations surrounding real estate brokers and hence there is very little objective way of shortlisting real estate brokers. You can always make out the professionalism of a broker by interacting with him and judging by the time he takes to understand your needs and showing you properties that meet your needs. Most importantly, you should do an independent evaluation of the legal aspects of the property title as well as the construction risk for the under construction properties rather than relying completely on any verbal assurances from the broker.