Debt counselling: Sanjay Agarwal

I, 45, earn about Rs 1.2 lakh monthly. My family and I were abroad for 15 years. We returned five years ago. While abroad, we were living in company-provided accommodation. But now, we want to buy a flat on home loan. However, since we have differences with our relatives, we can’t find a guarantor. So, is loan possible? Can my high earnings be considered? If not, what are our other options?
In a home loan, the primary security is the house property itself. Therefore, most banks do not insist any other security or a guarantor. However, when income is not enough to pay the equated monthly instalments (EMIs) comfortably, they may insist on a guarantor. This also applies when the property is highly valued, builder is non-reputable, or sufficient credit history is not available, etc. Since your income will allow payment of EMIs comfortably, you can get the loan without a guarantor. Talk to reputed banks and housing finance companies.

I plan to participate in an auction of distressed property next week. It is to be conducted by a mid-sized public sector bank. Is it advisable to buy? Will I get finance for it?
There is no problem in buying. The bank has been able to repossess the property, and is now auctioning it. This means all legal issues have been taken care of. To be on the safer side, though, you must ask a lawyer to check all documents, and to confirm any pending litigation or unsettled dues. Obtaining finance should not be a problem. In fact, apply to the same bank for this. It will make the transaction smoother.

The writer is senior vice-president and group head, retail strategy and branding at Arcil. The views expressed are his own