Hi, My Father-in law is buying an apartment and availing a loan of 44L, but his current age does not allow him to go for a 20 year loan as he is 54 years old. In-order to assist him my wife want s to be a co-applicant in the loan, her salary will also be considered in the loan. My Father-in law would be the sole owner of the property. Due to legal reasons the bank is asking me to be a co-applicant with my wife too, but my salary wont be considered for the loan. I have the following questions 1. Does the Sale Agreement which will be signed needs to have my wife's name along with the my Father-in law's to avail the loan ? (Bank insists so) 2. Would this loan affect my CIBIL score/ loan eligibility ? (I have a home loan already) 3. Any simple solution to this situation ? Any help would be greatly appreciated. Thanks & regards, Sumitabh
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1. Yes ,both the sale agreement and the sale deed would show both of them as purchasers only.
2.No,it would not affect your CIBIL score in any way.
3.I do not find any problem if your wife join as co applicant . So I am not sure what solution you are seeking for.
Property will not be co-owned by my wife, so sale deed needs to show only my Father-in law's name. Is it possible to have the agreement in both's name but not the final sale deed ? Thanks, Sumitabh
If your wife's name is there in the sale agreement then her name should be there in the sale deed unless she assigns her rights in favour of her father and join the sale deed as confirming party.
1) your wife name has to be included in sale agreement as she is co borrower of loan
2) it would not affect your CIBIL score adversely
1. Since your father-in-law wants to be the sole owner of the property, the agreement of sale need not have your wife's name.
2. If you sign as co-applicant and if there is a default, then your CIBIL score and your personal loan eligibility will be affected.
3. If you are confident that your father-in-law, along with your wife are not going to default the loan, then you can sign the loan document as a co-applicant.
in sale deed name of both co owners and co borrowers should be mentioned
You should insert name of your wife along with the name of your father in law in sale deed because it will protect your interest in the property. Bank is telling right because in this scenario you should prefer to insert name of your wife as co owner.
The sale agreement will not be in your wife's name, it will be in the name of the buyer alone,.
Any default more than 3 months may attract adverse impact to reflect in cibil.
If you do not want to be a co-applicant you may refuse to sign the application as co-applicant.
Property will not be co-owned by my wife, so sale deed needs to show only my Father-in law's name.
Is it possible to have the agreement in both's name but not the final sale deed ?
If the sale agreement has both the names, then the sale deed also shall be in both the names until she has not given NOC for this arrangement.