Home Loan

Business Today - - INVESTING Q&A -

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.

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