Closure of seller’s loan account is very simple
QI
am planning to purchase a house, which is already under mortgage. The house title deeds are with the lender ( ICICI Bank). Is it possible that the bank — to which I am applying for a loan — to take it over and the rest of the amount can be paid to the party? If yes, how should I initiate the process? I want to opt only for nationalised banks. G. Parthasarathi
Hyderabad Typically if your own contribution is higher than the loan amount due to the seller’s lender ( in this case ICICI Bank), then you can pay off the bank from your own funds and then submit the original papers received from them to your bank for the balance disbursement to the seller. Please make sure that your bank has agreed to make the disbursement before you make the payment to ICICI Bank. If your own contribution is less than the loan amount due to ICICI Bank, you will have to request your bank to make up the difference amount directly in favour of the seller’s loan account. It will do so once i t receives a letter from ICICI Bank stating the amount on payment of which the entire loan will be paid off as well as the number of days it will take to release the documents after it receives payment. If your income is sufficient to justify the loan, the bank will finance up to 80 per cent of the registered agreement value of the property, provided the physical condition of the house is good and the valuer of the bank certifies the value as well as balance life of the property being more than the loan tenure. Frequently, the valuation done by the valuer of the bank is lower than the actual cost and hence your effective down payment goes up.
Q I am 49 years old. I have not taken any term insurance plan. Which plan do I need to take? A term plan is a pure risk plan which pays the sum assured to the nominee in case of death of the policy holder i. e. the person insured. You have taken the right decision of buying an online term plan, also they are the cheapest. As a thumb rule, you must have life insurance cover equal to 12 times of your annual income. Since you have not given details of your income, it is difficult to recommend the life insurance policy that you need. You should buy your term plan from any insurance company which provides you the cheapest plan as the term plan is a very simple product. All the term plans are comparable on the basis of premium payable on a certain amount of risk cover. The writer is the CEO of Apnapaisa. com. You can send your queries to movingmoney@ deccan
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