Home loan
Akshit Kumar
(Querist) 20 April 2013
This query is : Resolved
My brother recently has identified a residential flat. He wants me to be the co-applicant with him. Though I verified with one of the other managers of UBI bank, about brother being a co-applicant. The manger said it is not possible. But the one whom my brother talked to said that it will be managed somehow, after submission of documents. At the same time my brother has asked me to give the a/c number of mine. The reason being that UBI needs to verify whether I have a salary a/c or not. But I highly doubt this stated reason.I have signed the paper as a co-applicant. Just for information my brother's CIBIL score is 638 as he had issues with credit card in the past. I think he is actually taking the loan on my name.Kindly suggest what precaution do I need to take to prevent myself from regretting in times to come. Also, whether I would be eligible for a new home loan in the future. Kindly suggest and keep it out of public.
Raj Kumar Makkad
(Expert) 20 April 2013
Being co-applicant, you shall be recorded as a mortgagor means loanee which shall definitely debar you to obtain further home loan from any other bank till the whole loan of this flat is not cleared with interest etc.
I suggest not to go ahead as desired if you have no mutual trust.
H.M.Patnaik
(Expert) 20 April 2013
I think you can meet the Manager of the lending bank personally to clear your apprehensions on this issue , bcoz nobody can avail a bank loan in your name without you signing the loan documents .
ajay sethi
(Expert) 20 April 2013
agree with experts
K.K.Ganguly
(Expert) 21 April 2013
1. There is no reason for your brother to ask you to be the Co-Applicant excepting that by involving you as the Co-applicant your brother can manage to get the home loan since otherwise he may not be eligible for the same for his low CIBIL score,
2. If you become the Co-applicant giving your Bank a/c no., you become liable to repay the said loan,
3. In case the home purchased is registered in the name of your brother, then the whole thing amounts that your brother is buying the flat after taking Bank loan in joint name for which you, alongwith your brother, will stand liable to repay the said loan.
malipeddi jaggarao
(Expert) 22 April 2013
I fully agree with the expert views of Mr.Ganguly.
Please note:
1)Co-obligant is equally liable for the debt received by any one of the obligants, here, though the debt is utilized by your brother you are equally responsible.
2) Bank has a right to go exclusively even against one of the co-obligants leaving the real beneficiary in case if it thinks fit that the beneficiary has no resources and the non-beneficiary i.e., co-obligant who has not received the benefit, it may go against you exclusively. You can not say that you have not received benefit, hence first exhaust the recovery sources of your brother.
3. To come out of the problem of CIBIL score your brother might have requested you to join as co-obligant.
4. If you have joined as co-obligant already, you might have signed some papers including loan documents already. Then only they will disburse the amount to your brother.
5. By this time i.e., once you have signed the loan documents, the Bank might have taken your account number.
6. As far as your eligibility for Housing Loan for your benefit, presently there is no such bar. It will be treated as second house loan, some times, the Government/RBI may put resttrictions, higher rate of interest etc.,but as of now it is not an issue.
7. If you do not have trust in your brother you should have straight away refused to join.
8. Leaving the past, if you have apprehensions, go to the Bank find out whether they have started disbursement of loan amount to your brother and check you have already included as co-obligant.
9. If the bank not started disbursement, you can give a letter under their acknowledgement that you are not willing to be co-obligant and ask them not to disburse any amount.
10. This stoppage is not possible once the amount is disbursed by the Bank. That means you can not withdraw yourself from the liability once the disbursement takes place.
Hence you have two options:
1) check whether you have signed the loan documents. Signing some papers is different from signing the loan documents with stamp duty affixed.
2) If so whether disbursement is commenced?
3) If you have not yet signed stamped embrossed loan documents or even if you have signed, bank has not started disbursement, you give a withdrawal letter that you are no more interested in the loan or to be the co-obligant and get the acknowledgement of the Bank under their stamp and date.
4) This isextreme step. If you have taken this, your brother will not get Housing Loan at least from that Bank. You think whether your apprehensions are real or mere apprehensions, your brother's attitude, if he honest and finding difficulty to get a loan, if you do not help who will help him?
That all depends upon the integrity of your brother and your belief that his problems are genuine. If you doubt his integrity seriously and if you believe that he is using you to get undue benefit, you can adapt the above method of withdrawal provided if the loan is not yet disbursed.
