Krishav Mukherjee: We are two brothers and currently staying in a house bought by our late father. We want to renovate the house and are applying for a joint loan for the same, but we are not able to procure it. Are brothers, or siblings in general, not eligible for a joint loan?
Harshil Mehta, JMD and CEO, DHFL, replies:
Usually, as many as six co- applicants can opt for a joint home loan, including the person’s spouse and other blood relatives such as parents and siblings. But it is not usually granted to friends, sisters or unmarried partners living together although they could be co- owners of the property. Some banks and financial institutions also allow brothers to take a joint home loan provided both are co- owners. Most of these institutions follow something called the income ownership grid, which defines whose income and whose ownership can be considered for the home loan. Lenders consider several other factors such as an applicant’s age, job stability, credit score and repayment/ payment track record. A borrower must submit all the documents concerning the co- applicants, right from income proof, bank statements and KYC details to address proof and proof of property co- ownership. In this case, you need to speak to your lender and legal advisor as obligations vary.