Q&A
Can I get a home loan for a residential property, which is around 16 years old? - Rambabu, Hyderabad
You can get a home loan to buy a resale property based on your income and the title of the property. The age and the condition of a building will have a bearing on loan eligibility and tenure. The banks are normally reluctant in lending money for a property, which is very old.
In your case, as the property is only 16 years old, and if it is in a good condition, there should not be any problem in getting loan from any bank. Normally banks grant loan up to 80 per cent (90 per cent for loan amount below Rs 20 lakh) of the agreement value of the property as a home loan.
If your income is sufficient to justify the loan, you should not have any problem in getting a loan provided the condition of the house is good and the valuer certifies the value as well as balance life of the house being more than the loan tenure. Frequently, the valuation as determined by the banker's valuer is significantly lower than the actual cost and hence your effective down payment may go up.
I have a vehicle loan from Canara Bank. But now I want to sell it. Is it possible for me to transfer the outstanding loan amount to the buyer? - Sreedhar, Visakhapatnam
There is no such thing as a transfer of loan. You will have to foreclose the loan that you have taken and the buyer will have to apply a fresh loan on the basis of his loan eligibility. If the bank is the same, the process is likely to be easier than otherwise.
Currently, Canara Bank does not levy any penalty for the foreclosure of loan, but you need to check your loan agreement to find out if there are any prepayment charges. In case your bank has a prepayment clause, you will have to pay a penalty for prepaying the loan.
Once you have paid off the entire principal amount, you need to collect the final settlement letter from the bank, which will state that you have foreclosed your loan. Please make sure that you get the No-Dues Certificate to avoid any issues in the future.
Please ensure to get your car registration transferred in the name of the buyer in the records of RTO. If you don't, you may be put in trouble due to misuse of the car, if any. Since the no claim bonus facility is your personal, you are advised to obtain the no claim bonus from the insurance company when you are selling the car.
You should transfer the insurance policy in favour of the purchaser for which he may have to pay charges for.
(Harsh Roongta is CEO of Apnapaisa.com. You can send in your queries to movingmoney@ eccanmail.com)
