Planning to buy an apartment? Brother-sister combine cannot be co-applicant for home loan | Your questions

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In the event that the EMIs are no longer paid, the bank will lower your CIBIL score, and the chances of sanctioning a loan to you in the future would be difficult.

By Chaitali Dutta
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I am planning to buy a flat in Goa where my sister will stay. We are both married. Can my sister and I buy a flat in our name? Do we need to add our spouse for loan processing/approval? Can I take out the loan while my sister pays EMI?

—Rahul Sharma

If you do not use a loan, the purchase of real estate in the name of brother and sister is possible. However, a sibling sibling cannot be a co-applicant for a home loan. Co-applicants are usually individuals who would stay together: spouses, son with parents, unmarried daughter with parents, brothers living together. Let’s keep in mind that the property is in one name and the other sibling takes the responsibility to repay the loan, disputes may arise later. The liability to the bank would be yours. If the EMIs are no longer paid, the bank will lower your CIBIL score and the chances of you getting a loan in the future will be difficult.

I regularly paid my EMI during the lockdown. I have now transferred my home loan to another bank. Will I receive moratorium interest on my old account?

—Sanket S

The advantage of simple interest over the compound interest for the moratorium period applies to all regular loans (non-NPA) as in March 2020. This facility also applies if the loan was taken out between March and August 2020. So your old loan would be the credit. If you don’t have a bank account with the old bank, ask them the details of your loan account and balance transfer, savings bank account along with canceled check.

I have a PPF account with my wife as the nominee. With all activities in SBIA computerized, will it be possible to include another candidate? Do I have to set a percentage of the money for nominees?

—Rajendra Rajyaguru

You can have two or more nominees on a PPF account, but this is not possible on the netbanking site. Go to your bank branch to register this. Define the percentage of the asset to be paid to each nominee. If the percentage is not defined, the balance will be divided equally among the nominees. However, for nominees, the former or survival clause does not work. Yes, 99% and 1% will work. The concept of cascade nomination does not exist now.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your inquiries to [email protected]

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