Banks won’t sanction loan against open plot of land
I want to take a five- year loan of ` 2.5 lakh for an old car from a bank but they are asking for mandatory car insurance. If I prepay my car loan what will happen to the premium paid on the insurance policy? Will the policy be valid for my entire loan tenure?
The bank is right in asking you to take a car insurance policy and it is also legally obligatory for you to have insurance on your car. The car insurance policy is renewed every year and has no connection with the repayment of a car loan.
Even if you prepay your car loan, it is in your own interest to continue to renew the policy every year. I got my house registered during the current FY13 and paid ` 4.19 lakh for the same. Am I entitled to include this expenditure in my income- tax returns for the current financial year and, if so, what would be the amount and under which section of the Income- Tax Act? V. Mohan Hyderabad
The property registration fee and stamp duty ares eligible for deduction under Section 80 C up to an overall limit of ` 1,00,000. You can get tax benefit on stamp duty and registration together with other deductions like for repayment of housing loan, LIC, PF etc. to the maximum of ` 1 lakh in each year.
I need your advice about get-
Banks lend money to buy a plot of land rather than giving loan against security of an existing plot. When the plot is at some other place, lender may find it difficult to protect
ting a loan against a vacant residential plot. We have our residential plot ( share from our traditional property), which is on my mother’s name. She is retired now and gets a monthly pension. We are based in Mumbai, but our vacant residential plot is in our native town. Is it possible to get a loan on this land based on my mother’s monthly pension?
If yes, could you please suggest the best and quickest way to get this loan? Our property value is over ` 20 lakh and we need ` 5- 6 lakh for our personal needs. Sudhakar Bhosle
Mumbai
Most lenders lend money to buy a plot of land rather than giving loan against security of an existing plot.
Moreover when the plot of land is not situated where the lender is based it becomes more difficult to get a loan as the lender cannot safeguard itself against trespass.
Even if the bank agrees to give a loan against a plot of land in principle, it would be very difficult to get a loan where the borrower is retired. If you have income of your own, you should join as a co- borrower and then your income can also be considered for the purpose of eligibility. Your best bet is to take such a loan from an NBFC in the area where the plot is located.