We have a home loan of Rs 55,00,000 (55 lakh) from SBI. It’s in my and my wife’s name jointly. My Wife is a homemaker.

I want to know whether my mother-in-law can repay our home loan. Can she issue a check to repay our home loan? She is a tax payer. Please let us know. 

Ans: The exemption of LTCG is not available for repayment of home loan. You can claim the benefit of the home loan deductions available.

Ans: Taking a joint home loan with your friend can be a viable option to fulfill your dream of owning the desired home. Banks typically consider the combined income and creditworthiness of all co-applicants when approving a joint home loan.

In your case, since your friend has 40 lakh rupees for the down payment, you can apply for a home loan of 70 lakh rupees jointly. However, it's crucial to note that each bank has its own lending criteria and may evaluate the loan application based on factors such as income stability, credit history, and debt-to-income ratio.

Before proceeding, it's advisable to discuss the terms of the joint ownership with your friend and seek legal advice to draft a co-ownership agreement outlining the responsibilities, rights, and obligations of each party to avoid any potential conflicts in the future.

Additionally, consult with multiple banks or financial institutions to compare loan offers and choose the one that best suits your requirements in terms of interest rates, tenure, and repayment options.

By leveraging the combined financial strength of both applicants, you can increase the chances of loan approval and make your dream of homeownership a reality.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Yes, as a joint owner of the flat, you can repay the entire outstanding housing loan directly from your bank account to LIC Housing Finance Limited (LICHFL), even if the loan is in your wife’s name. Since both of you are joint owners, your contribution towards the loan repayment is entirely permissible.

Points to Consider:
Loan Documentation: Ensure that the loan documents reflect your joint ownership, as this justifies your contribution towards the loan repayment.

Tax Benefits: If you are repaying the loan, you may be eligible for tax benefits under Section 80C and Section 24(b) of the Income Tax Act. However, this depends on whether you are listed as a co-borrower in the loan agreement. If you are not a co-borrower, tax benefits may not be applicable to you.

Loan Account Settlement: After repayment, ensure that you obtain a No Objection Certificate (NOC) from LICHFL, confirming that the loan is fully settled. This is crucial for clearing the mortgage on the property.

Repaying the loan from your account is a good strategy to clear the debt burden, especially as you approach retirement.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in