Want to take a joint home loan? Keep this fact in mind

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Published: April 9, 2018 1:01:32 AM

Usually lending institutions give an option to take a joint home loan with as many as six co-applicants and minimum two co-applicants which includes his/her spouse, parents and siblings.

home loan, joint home loan, money, personal finance, Marginal Cost of Lending Rate, interest rateUsually lending institutions give an option to take a joint home loan with as many as six co-applicants and minimum two co-applicants which includes his/her spouse, parents and siblings.

Can I take a joint loan with my elder brother’s wife to buy a flat? Under whose name will it be registered?
– Anand Mehra

Usually lending institutions give an option to take a joint home loan with as many as six co-applicants and minimum two co-applicants which includes his/her spouse, parents and siblings. Most of them have something called the income ownership grid which they follow, which clearly defines whose income and whose ownership can be considered for availing the home loan. As for you wanting to buy a joint property along with your brother’s wife, it will depend upon the discretion of the lending institution. For property registration, it is up to the applicants’ discretion to mention the name of the co-applicant in the registered sale deed.

Do banks and NBFCs have different ways to calculate home loan interest rates? Which is more beneficial?
—Madhav Ohri
Banks provide home loans with floating interest rate which are linked to the Marginal Cost of Lending Rate (MCLR). An MCLR linked loan mentions the intervals at which its interest rate automatically changes. In a falling interest rate scenario, customers will receive RBI mandated rate cuts in a transparent and time-bound manner. On the other hand, home loans provided by NBFCs and housing finance companies are not linked to the MCLR. They are linked to the Prime Lending Rate (PLR). NBFC and HFCs are free to set their PLR. It is always best to compare across lenders to choose the rates and terms that are just right for you.

Since I am new to the city where I want to buy a property, I am not able to get a guarantor. What should I do as the bank is insisting on two names?
—Rahul Suneja
Lenders usually insist on a guarantor who agrees to make the payment in the event of applicant failing to pay the dues. Preferred guarantors are close relatives such as spouse, parents, siblings, earning children as guarantors. While a conservative lender insists on a guarantor, a few others ask for guarantors only in case of certain criteria which include higher loan amount application, variable income, self-employment, transferable job, etc. In your case, you could opt for a guarantor from another city or opt for a lender for whom a guarantor is not mandatory.

 

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