Is it must to have a co-applicant?

S.C. Dhall

Advertisement

Q.Is it mandatory to have a co-applicant when applying for a home loan? If yes, who can be a co-applicant for my home loan? — Kailash Arora

A.It is not mandatory to have a co-applicant. If someone is the co-owner of the property in question, then it is necessary that he/she also be the co-applicant for the home loan. If you are the sole owner of the property, then any member of your immediate family can be your co-applicant

Q. I am working in a public sector organisation. My net salary is nearly Rs 40,000 but due to my personal loan and credit card, the bank is not giving me home loan,please advise me how I can avail home loan? — Kailash Arora

A.The home loan amount sanctioned depends on various parameters such as monthly income, current financial liability, tenure, rate of interest, property value etc. You will need to check your eligibility for the loan amount with your lending institution viz. bank or housing finance company. Normally, lending institutions finance upto 75 to 80 per cent of the market value of the property. Fifty per cent of your income is considered towards repayment of all your monthly liabilities through EMI within definitive parameters. However, your specific case will have to be evaluated to arrive at your actual loan eligibility. 

Q.If a loan is partly disbursed and earlier rate is linked to the Base rate, which benchmark (Base or MCLR) would be applicable for subsequent disbursements? — Mehma Singh

A.All existing loans linked to the  Base Rate will continue till these are fully repaid. All existing borrowers will, however, have the option to shift to the MCLR linked loan at mutually acceptable terms

Thus, in case of partly disbursed loan, for subsequent disbursements, the I-Base benchmark rate will continue to be applicable, provided the borrower does not exercise the option to move to the MCLR linked loan at mutually acceptable terms

Q.Can the EMI be increased during the tenure of a home loan ? — Anuradha Sharma

A.You can choose to increase the EMI amount whenever you want during the loan tenure. Taking advantage of this, you can reduce the loan tenure and save a lot of money on the loan. 

Q.Can you let me know the maximum  home loan amount that my father can avail from a bank  since he is retired. And can I be a co-applicant in that home loan ? — Promode Uppal 

A.Getting a home loan for retired people could be difficult, considering their age and uncertain income. However, on your joining as a co-applicant, the loan can be availed based on your income and part of your father’s income. Many lending institutions extend loan to retired people up to the age of 65 or 70 years, depending on a regular source of income. However, it’s better to take a loan jointly with an earning child. But in this scenario, the property should also be in joint ownership between the child and the father.