Want to apply for a loan? Here’s what you need to do first

Published: December 4, 2019 5:31:19 AM

Usually, there is no restriction on amount or periodicity of prepayment of a home loan taken on a floating interest rate.

If a brother and a sister (unmarried/ widowed/ divorced) are staying under the the same roof, they may avail of a home loan together but need to be co-owners.

By Chaitali Dutta 

Restore your CIBIL score and then apply for loan

My wife had defaulted on a credit card loan before her marriage. We planned to take a joint home loan but her CIBIL score is very low. The bank is refusing the joint loan. What should I do?

– S R Keshunath

Once you rectify the credit card irregularity and pay off the dues, the CIBIL score can be restored. I would advise you to bring up the score first, then apply for the home loan. A way out would be to buy the property in your single name. The loan also will be only in your name then.

I have taken a 20-year home loan at 8.7% for Rs 50 lakh in July. Should I pay one or two extra EMI every year to reduce my interest outgo?

Absolutely. Continue to pay additional amounts as and when you have surplus funds, after taking care of your other life goals.

I plan to take a bank loan with my married sister as a co-applicant to buy a flat for my parents. Will the bank agree to her as a co-applicant for the loan?

—HR Durai

If a brother and a sister (unmarried/ widowed/ divorced) are staying under the the same roof, they may avail of a home loan together but need to be co-owners.

Should I check my CIBIL score before applying for a home loan?
—Pankaj Poddar
If there has been no default in loan repayment or overdue on your credit card, there is no need to check it. If your earlier score was not satisfactory and you took some steps to bring it up, you should check your score before applying for a loan.

I want to prepay a part of my home loan in January next year. Are there any rules on maximum amount that can be prepaid in a year?

—Suresh Gupta

Usually, there is no restriction on amount or periodicity of prepayment of a home loan taken on a floating interest rate. However, there could be some clauses in your arrangement letter which puts a cap on this. Go through your letter in detail to understand the exact status.

How long will a bank take to handover the property papers after clearing the loan? What is the procedure?
—Deepak Kumar

It should be same day if prepayment notice is given in advance. In some cases, the bank issues a ‘no dues’ certificate along with advice for return of original papers. All this should not exceed seven days.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to
fepersonalfinance@expressindia.com

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