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 opted for a home loan last month wherein the bank refused to take my mother as a co-applicant as she is 65 years old. So I had to convince my cousin to be a personal guarantor.

I have few questions regarding the same.

- Shameem Khader

1. I will be the one who will be paying the entire EMI. Am I eligible for the tax benefits for the entire amount?

Yes, you will be eligible for the full tax benefits.

2. Can my cousin too claim the tax benefits?

4. What is the difference between personal guarantor/ co-applicant/ co-borrower?

When two people jointly apply for a loan, they are co-applicants. When the loan is granted on that basis, the co-applicants are converted into co-borrowers. 

Legally, the co-borrowers are responsible for the payment of the loan. In case of default or death, the bank can proceed against either of the co-borrowers for the full amount of loan.

Guarantors are not borrowers themselves. They just stand to take over the loan when the borrower defaults. In your case, your cousin is a guarantor. This means he cannot pay the loan or the bank cannot hold any charge against him unless you default and the bank calls you a defaulter. 

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.

Disclaimer: While efforts have been made to ensure the accuracy of the information provided in the content, rediff.com or the author shall not be held responsible for any loss caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles and information).