Can I take home loan on my father property?

Home loan is a complex procedure. There are so many factors, so many questions involved that it becomes difficult to judge if we can even apply for it or not. Your question: Can I take home loan on my father property is one such example. I had a similar query a few years ago. I was in need of a loan but didn’t have any collateral. All we had was my father’s property. So I went to the bank to get some clarity on this issue. I am sharing what they told me. Loan against father’s property I was denied the opportunity to apply for a loan against my father’s property. They said that only the owner can apply for a home loan against that property. I asked them if there was any way around it so this is what they suggested:

• I could either take a personal loan
• I could have asked my father to write a share of his property in my name by executing a gift deed in my favour so that I could apply as a co applicant
• I could have asked my father to take a loan on my behalf
• Another way was to apply as a co applicant with my father by showing relevant income proof to the bank

So yeah, these 4 alternatives can work for you and maybe that’s the answer to your query: can I take home loan on my father property India. You must also check your eligibility for home loan before you take a loan for your father's property. You can check it via NoBroker here,

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Hey,

If you have recently become the owner of your father’s property or will become an owner of one soon. You must have questions like ‘can I take loan on my father property?’, ‘who will give me a loan on the property etc. The interest rate and loan tenure are decided by the lender. The loan amount is decided based on the borrower’s repayment capacity.

 

Can I get a housing loan for my father's property?

Banks and financial institutions don’t usually give borrowers a home loan on their father's property. You can get a personal loan instead. You will have to do your research on the personal loan available and the least interest rate.

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If you have questions about can i get a loan to build a house on my parents land, read below :

• You will get a home loan on parent's property when you get the property transferred to your name. 

• You can only get a loan on the property if your father is a co-borrower for the loan. 

• If you and your father are co-owners of the land, you will get a property loan. You will get tax deductions on the loan repayments as well. 

How to get home loan ? 

• You will get a housing loan on the property if the lender is an organisation that does not have an eligibility criterion. In short, relatives, friends, or loan sharks, will give you the loan.

• If the property is ancestral, you will need to get a No-objection Certificate signed by all legal heirs before applying for a loan.

•  If the property belongs to your mother, your mother needs to be a co-applicant of the home loan.

This is all from my end on can I take loan on my father property. 

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I remember that a very close friend of mine came to me with a similar query regarding loan against parents property. I told him that even though the property is owned by his father, he was still eligible to borrow money from the bank. He could apply for a personal loan for a specified amount or a home improvement loan alongside his father as a co-applicant. I will tell you more about it in detail here.

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The quantity of the loan you need and the bank's standards will both have a significant impact on your eligibility. I'll give you a rough list of the documents you'll need. The bank will be able to provide you more specific advice based on your needs and the situation at hand. You can obtain a mortgage in your name and possibly receive 80C tax benefits.

Home loan to buy property from father

It is a common misconception in India that if a property is in either your father's or mother's name, you must alter it to your name. How come I say this? Because of my conversations with two house loan brokers last week, who shared with me some important information about this subject and assisted their clients in obtaining home loans for the purpose of constructing homes on land that is registered in their father's and mother's names.

Let me provide some guidelines in regard to home loan on parents property.

1. Property owners should be co-borrower - The first thing that a son or daughter can do to obtain a mortgage, is ask their parents to be co-borrowers on the loan. If they are employed, it would be ideal if they could also split the EMI, since this will expedite the loan application process.

2. NOC from legal heirs - If there are siblings, they must sign a NOC stating that they will not cause problems in the future and that the bank may take possession of the land or house if the EMI is not paid.

Due to their intricacy, these kinds of scenarios may require more documentation.

Typically, you would require the following documentation:

• Identity proof options include an active passport, a valid driver's licence, and an Aadhar card.

• Your father's pension is proof of income.

• Your salary statement for the last three months

• Bank statement for the last six months.

• Form -16 with most recent ITR.

• Supplementary documents: For a loan for home renovations, passport-size photos of both your father and you are required. 

• Particular documents about home improvement

• All of the home's original deeds

• Proof that the property is unencumbered

• A cost estimate for the proposed work from a civil engineer or architect.

Alternatively, if you are a family earner, your father may transfer his 50% interest into your name and permit you to apply for a loan too. The bank will then be able to approve a home loan in your name.

I hope now you can fathom about loan against parents property.

Read More: How to Get Loan Against Property: Eligibility, Documents Required What is the Interest Rate for Loan Against Property?  Which Bank is Best for Loan Against Property? 

I recently witnessed a lot of trouble when the bank officials declined the home loan of a man. He asked them- can I take mortgage loan on my father property and they simply said NO. I found their statement quite justified. How can someone else get a home loan against someone else’s property directly? Many Indians did not know the rules to avail a home loan on father's property. You cannot take a loan directly against your father’s property unless you follow the guidelines laid down. If you really want to do that, this answer will be helpful for sure.

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Can I take home loan for parents property India?

You cannot get a home loan for your parents’ property unless

• You get the property transferred in your name

• If the property is an ancestral one, get a No Objection Certificate from other legal heirs before applying for a home loan

• Get a gift deed executed by your father in your favour

• Apply for a home loan and be a co-applicant with your father

 

In short, you will either have to transfer the property in our name or apply for a loan along with your father as a co-borrower. I hope this answers- can I take mortgage loan on my father property or not.

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