LAW BOOK

HT Estates - - HTESTATES - Su­nil Tyagi

I’m plan­ning to re­con­struct my house for which I re­quire a loan of ₹ 75,000. Will I be el­i­gi­ble to get a loan for re­con­struc­tion pur­pose?

– Savitha Jha The loan amount for re­con­struc­tion ap­pears to be very small. It may be ad­min­is­tra­tively con­ve­nient to take a per­sonal loan rather than a loan against prop­erty as min­i­mum amount for most home loans is ₹ 5 lakh.

I work in a pharma com­pany and earn around ₹ 7.5 lakh per an­num. My home­town is Al­la­habad. Can I get a loan to buy a plot in a scheme launched by Al­la­habad De­vel­op­ment Author­ity? What is the max­i­mum amount of loan I will get to buy a plot from them?

- Saransh Sharma Plot loans are avail­able only if they are bought from gov­ern­ment au­thor­i­ties. Typ­i­cally, you will be able to get a seven to tenyear loan of up to 60-65% of the plot value at a rate of around 10.50%. The equated monthly in­stall­ment for 10 years at this rate of in­ter­est will work out to be ₹ 1,350 for ev­ery ₹ 1 lakh. You may get around ₹ 12 lakh as loan (EMI ₹ 23,300 or 40% of the net take in­come) if the cost of the plot is at least ₹ 20 lakh.

Please share the check­list of doc­u­ments that are re­quired to be sub­mit­ted while ap­ply­ing for a home loan? - Shikha Gupta The doc­u­ments that you re­quire for ap­ply­ing for a home loan are: Proof of in­come for the last three years, Form 16, copy of IT re­turns, com­pu­ta­tion of in­come, bank state­ments for last six months show­ing salary credits

For self-em­ployed, please sub­mit Form 16A, copy of IT re­turns , com­pu­ta­tion of in­come, bank state­ments for the last one to two years.

For proof of iden­tity and res­i­dence, you need to sub­mit your pass­port, elec­tion card, PAN card and driving li­cense etc.

I had a taken a loan for ₹ 12.5 lakh with a ten­ure of 20 years five months ago at an in­ter­est of 9.65%.The prop­erty for which I took the loan is in Bharuch. I in­tend to re­pay the amount within a week. If I clear my loan within a week, how much in­ter­est will I have to pay?

- Sangeet Shah You will need to pay the in­ter­est for the pe­riod for which you had taken a loan. So, the in­ter­est payable will be for five months and the loan re­pay­ment amount will be the prin­ci­pal amount out­stand­ing after ad­just­ing the prin­ci­pal pay­ments made by you in the last five months.

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