Your Queries – Loans: For LIG PMAY subsidy, co-owner has to be female and co-applicant

The documents—proof of ownership of land, estimate of the cost of construction by an authorised architect, both your income proofs and ability to repay—has to be established.

By Chaitali Dutta

I availed home loan and I fall in the Low Income Group category. The property is registered in my and my spouse’s name but she is a guarantor for the loan and not a co-applicant. The bank says as my wife is not a co-applicant, PMAY cannot be availed. What should I do in this case?
—Vamshi Reddy
Yes, in the case of LIG PMAY subsidy, the co-owner or primary owner has to be a female. Also, she needs to be a
co-applicant. Speak to the bank to see whether you can add her as a co-applicant to the loan.

I have 15 months of EMI left for my home loan. For FY22, the principal component will be Rs 3.30 lakh and interest component will be Rs 21,000. Should I repay the remaining amount after a few months or continue to pay the EMI for another 15 months?
—Ashok Sawant
If you have other components for saving under Section 80C, close the loan account in this FY itself with your surplus amount. You may do it over a few months. If you do not have other eligible 80C compon-ents, continue with the regular EMI payment for full 15 months.

Can I open a PPF account in my minor son’s name? How much can I transfer to this account? Any other regulations/issues in this?
—Rajesh B Shah
Yes, you may open a PPF account in your minor child’s name. If you have a PPF account of your own, contribution to both PPF accounts should not exceed Rs 1.5 lakh. If the minor PPF account is the only account you have, the limit will be Rs 1.5 lakh in each financial year. The contribution would come from your income and you may avail of the income tax benefit under 80C. Once your minor son becomes a major, write to the bank/ post office along with his birth certifi-cate. Your name as natural guardian would be removed and on maturity, only your son will be eligible to get the funds.

My brother and I want to take a joint housing loan. Can we get a bank loan?
—C R Bhanu
Yes, it is possible. Siblings may jointly apply for such a loan. The documents—proof of ownership of land, estimate of the cost of construction by an authorised architect, both your income proofs and ability to repay—has to be established.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to [email protected]