To help readers keep pace with what’s happening in the real estate sector, Mint’s Q&A will appear every other Monday.
Can a non-resident Indian loan be transferred to resident Indian? What is the procedure?
You may apply for the change of residential status to Indian. The process would broadly require you to submit a fresh application form along with the applicable documents such as your income proof, updated bank statement showing the source of income, tax documents, and a letter stating your new job/business profile especially if your are self-employed.
We have a family house in Kolkata, where my parents are staying. We want to raise money against that for my father’s treatment. Will I get a loan against it ?
Yes, you can definitely get a loan against the property by mortgaging the house to a financial institution. It is an all-purpose loan and can be availed of to meet any unforeseen financial crisis while you continue occupying the house. The criteria for the same are that it should be a freehold, self-owned property, having a clear and marketable title. All the co-owners in the family will need to be the co-applicants for the loan.
I am a qualified chartered accountant and have been working with a multinational company for about seven months. I am 25 years old. I have checked out with some banks but I am not getting the desired loan amount.
Your loan eligibility will depend on your monthly income. Since you are a qualified professional and have a long career ahead, you may consider a “structured loan” or a “step-up loan”, where there are better chances of getting a higher loan amount as the equated monthly instalments or EMIs are accelerated in proportion to your assumed increase in salary.
I want to part prepay my loan. Which can I reduce, the term of the loan or the EMI?
You have an option of reducing the term or the EMI or both.
However, it will depend on your financial commitments and cash flows. For instance, if you presently have a huge financial outgo and are in need of more disposable cash on a monthly basis, then you may choose to reduce the EMI, but in case you foresee some future financial commitments like buying a more expensive property or some other family commitments, then reducing the term makes more sense.
Renu Sud Karnad is executive director with HDFC.
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