Have a query regarding your home loan? Maybe we can help.

Drop us a line and our expert, Harsh Roongta, will answer it.

• Got a question for Harsh Roongta? Please write to us!

I took a loan of Rs 5,00,000 from ICICI Bank [Get Quote] a year ago. It was a floating rate loan at 7% p.a. The EMI worked out to Rs 4,028 for 20 yrs.

In March 2005, the interest rate went up to 7.5% p.a.

Because of that, my tenure got extended by nearly a year.

ICICI Bank is now offering a loan at 7% as a special scheme. Can I apply for it again? Or, can I claim this from the bank?

IDBI Bank has offered me a top up loan at 7.25% p.a. But, the bank requires the sale deed of the flat.

The builder has not yet given it to me. What must I do?

- Rahul Varma

As far as the loan is concerned, please look around in the market to arrive at the best deal available for your loan.

If your repayment track record has been good, banks will be more than willing to takeover the loan from your existing lender.

With an offer from another bank in hand, approach your existing lender and ask him to reduce the rate to that level. He might oblige.

However, I am afraid that all this will be possible only if the title to the flat is clear and hence it will be in your interest to settle the matter with the builder as soon as possible.

• Problems with your home loan?

I have purchased a flat but have put the agreement on my mother's name since I am single.
A private bank has sanctioned the loan but has objected to the house being on my mother's name.

They have asked me to change the agreement or take the signatures of my siblings on an indemnity bond stating that they don't have any right to the property. This is because they are considered as legal heirs of my mother.

- Captain Geeta

As far as the loan is concerned, the indemnity bond from your siblings is good enough.

As far as safeguarding your own interests go, I am afraid it is a technical query which really cannot be answered without a detailed review of the documentation and the situation.

You should consult a reputed local lawyer specialising in property and inheritance laws for assistance in this regard.

• Save money by taking a home loan

In March 2004 I got a home loan sanctioned from Canara Bank [Get Quote] for Rs 7,00,000 (the cost of the flat being Rs 42,00,000). The loan amount was disbursed in installments against fixed deposits pledged to the bank. The loan amount was fully secured with the bank.

Despite the deposits, the bank is still insisting on the Sale deed to be submitted to the bank. This is quite ridiculous because the construction of the flat is not yet complete and may take another four to five months for possession and registration.

- N K Gupta

I have not fully understood your query but it seems like you have offered the bank an interim security (fixed deposit) till the availability of the final security (the house property).

If such is the case and there is a delay in the creation of the final security, then the bank is well within its right to request for it. Specially if the interim security is likely to mature in the meanwhile.

One possible solution for this is to extend the term of the interim security such that there is a sufficient margin for the bank in terms of time for creation of the final security.

Got a question for Harsh Roongta? Please write to us!

Note: Questions may be edited for brevity. Due to the tremendous response, all queries will not be answered.

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