Your queries: Loans; Brother-sister duo is not automatically given loan
By Chaitali Dutta
l My unmarried sister wants to take a home loan of Rs 20 lakh. Can I become a co-borrower with her and remove my ownership from the bank records once she gets married?
—Brijesh Pant
The loan is sanctioned based on the ownership of the property. You may purchase a property in the name of siblings. However, a brother-sister duo is not automatically sanctioned a loan. The main applicant has to be the sister and the brother can become a co-borrower with an undertaking to stay in the same property. The rules applicable for such loans are different for different banks and NBFCs.
l I have paid my EMI regularly for five years. Since I will be taking a sabbatical for one year and will get a reduced salary, how can I negotiate with my bank for a one-year moratorium on EMI. I can pay 50% of the EMI for one year and then resume paying the full amount?
—Yogesh Parmar
This will be challenging to negotiate with your existing bankers. You may have to do a balance transfer to a new bank/lender. However, there’s no harm in discussing your present situation with the existing creditor and see if it can offer you a new loan with revised terms.
l I retired two years ago. If I take an education loan for my son, will it be in my name and what collateral do I have to give?
—Jitender Kumar
The education loan will be in joint name with both your names. The collateral need and the amount will depend on what you’re looking for. Usually, a mortgage of a property or lien on financial assets like FDs and RBI bonds is acceptable.
l How will the interest rate on a car loan be calculated? Will the amount of EMI be fixed even if the repo rate rises or falls?
—KP Sharma
The car loan interest is calculated on monthly rests. It will usually
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