Go for home loan against assets if you are close to 60 years

Generally, the tenure of a sanctioned home loan extends up to the borrower's retirement age.

Written by Guest

August 31, 2024 03:30 IST

The loan would be in joint name and the repayment by EMI would be a joint responsibility.

By Chaitali Dutta,

I will retire after two years at the age of 60. This year, I want to invest in a property worth `60 lakh in Bhopal for rental income. Post retirement, my monthly income from investments, pension and rent will be around Rs 2 lakh a month. Will a bank give me a home loan of Rs 20 lakh for 10 years?—Pradeep Gupta

Generally, the tenure of a sanctioned home loan extends up to the borrower’s retirement age. In this scenario, securing a home loan may be challenging. Nevertheless, you could consider securing a loan against assets, such as another property or financial investments.

I had taken a home loan of Rs 50 lakh in January last year. This year, I sold a property worth Rs 80 lakh. Can I repay the entire loan amount and will the bank impose any penalty?—Bhaskar Mishra

If your loan has a floating interest rate, you are typically allowed to repay the full outstanding amount. However, the loan provider may impose specific conditions on the repayment amount. It is advisable to carefully review the terms detailed in the sanction letter.

We are two brothers and have a single-story ancestral property in joint name through a Will done by my late father. We want to renovate the house and build two floors. We have a joint business. Can we take a loan against property of around Rs 70 lakh for the renovation?—Ranjit Doshi

The loan is possible provided the valuation of the existing property is adequate to cover the Rs 70 lakh loan. The loan would be in joint name and the repayment by EMI would be a joint responsibility.