Can my brother be a co-applicant for a loan to modify ancestral property?
Kavitha Vallur
(Querist) 14 June 2014
This query is : Resolved
Respected Lawyers,
My mother is aged around 62, and my brother is working for a Retail company as a manager. The ancestral property which belongs to my grandmother was transferred to my mother's name in 1978.
Me and my brother are the only siblings and I do not have any source of income. My brother has applied for a loan in SBI as a co-applicant. Do I have to give a release deed for the approval of loan and also should I sign any documents. Please clarify.
Regards
Kavitha
ajay sethi
(Expert) 14 June 2014
1) merely because your grand mother was owner of property and inherited by your mother does not make it ancestral property .
2) as on date your mother is absolute owner of property . since she is 62 no bank will grant her a loan for renovation of property .
3) since you dont have any income bank wont sanction you loan .
4) your brother is working as manager and if he is co applicant loan can be sanctioned in his name
5) you have not mentioned whether bank has requested that you execute a release deed for sanction of loan . as and when such request is made you have to decide whether you should do so or not
adv. rajeev ( rajoo )
(Expert) 14 June 2014
Still your mother is there so you need not to sign on any loan documents. She has to stood as a surety to the loan.
Kavitha Vallur
(Querist) 14 June 2014
Respected Sir,
Thank you for the information. One more question. In order to avail the loan on the above mentioned property should my brother's name be registered on the property?
Could you please clarify?
Regards
Kavitha
Rajendra K Goyal
(Expert) 14 June 2014
It is not necessary that the name of your brother should be on the property.
The SBI Bank may provide loan in the name of your mother if she is able to repay it upto 70 years of her age. At the discretion of Bank loan can be provided with your brother for more period or otherwise.
Better consult the Bank official(for formalities to be completed) and Bank lawyer (for checking of clear title) as the credit decision is to be taken by Bank keeping in mind so many aspects and formalities.
Dr J C Vashista
(Expert) 15 June 2014
I agree with Sh. Rajendra K Goyal's expert advise.
Raj Kumar Makkad
(Expert) 16 June 2014
Generally bank club two or more persons as their loanee if the income of one person is not sufficient meant for the re-payment as per parameters of the bank so better to consult the concerned banker for this purpose.
T. Kalaiselvan, Advocate
(Expert) 16 June 2014
I too agree with the experts opinions on the subject issue, nothing more to add.
