Your Queries: Loans | You can transfer loan only after transferring the asset
By Chaitali Dutta
I have to pay EMI on home loan for another eight years. As I am retiring this year, can I transfer the loan to my son so that he can pay the EMI?
— Naveen Jha
Transfer of loans is not possible if the asset remains in your name. There are two options you could explore: you transfer the asset to your son and he avails a loan in his name, this will effectively transfer the liability as well, to your son. The second option is that there is a mutual understanding within the family and your son transfers the EMI to your account on a monthly basis so that your loan can continue.
Can my father transfer a home loan to me and from one bank to another and take a top-up loan on the same property? Can I claim the top-up amount for tax exemptions?
— Ravali Yarlagadda
Your father may transfer the home loan to another bank and while doing the same, apply for a top-up loan with the new bank. The top-up is sanctioned if certain parameters are met. Now, to your first question. It is not possible to transfer a loan without transferring the ownership of the asset. Option one is for your father to transfer the property by a gift deed to you and then you will simultaneously apply for a home loan in your name. Option two is to keep the property and loan in your father’s name and transfer the funds monthly to his account for ease of his cash flow. In this case you will not be able to claim any tax benefits under Sections 80C or 24B.
Can I get a home loan to build a floor on a plot owned by my unmarried sister? She wants to gift me the roof rights.
— Anirudha Deshmukh
The first step would be to check the permitted floor space index (FSI) in your area. Next, get the structural stability certificate from a structural engineer/ architect. The construction of the first floor will add weight to the ground floor structure. The building plan and layout approvals from your local authorities are a critical step. The bank will require ownership of the property before sanctioning a loan. A partition deed can be made to divide the property between the siblings. Based on your half ownership, you may avail a home loan.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to firstname.lastname@example.org.