Are you planning to buy an apartment? The brother-sister combine cannot be a co-candidate for a mortgage | Your requests

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If EMIs stop being paid, the bank will lower your CIBIL score and the chances of a loan being sanctioned to you in the future would be difficult.

By Chaitali Dutta

I plan to buy an apartment in Goa where my sister will stay. We are both married. Can my sister and I buy an apartment in our name? Do we need to add our spouse for loan processing / approval? Can I take out the loan while my sister pays EMI?

—Rahul Sharma

If you do not have a loan, the purchase of real estate in the common name of the brother and sister is possible. However, a brother-in-law cannot be a co-applicant for a mortgage. Co-applicants are generally people who would stay together: spouses, sons with parents, single daughter with parents, brothers who live together. Considering that the property is in one name and the other sibling takes responsibility for repaying the loan, there could be chances of litigation afterwards. The responsibility to the bank would be yours. If EMIs stop being paid, the bank will lower your CIBIL score and the chances of a loan being sanctioned to you in the future would be difficult.

I regularly paid for my NDE while in confinement. I have now transferred my mortgage to another bank. Will I get default interest on my old account?

—Sanket S

The advantage of simple interest over compound interest for the moratorium period is for all regular loans (not NPA) as in March 2020. This facility is applicable even if the loan is closed between March and August 2020. Thus, your old loan should get credit. If you don’t have a bank account with the old bank, go to them with your loan account details, and balance transfer, savings account with canceled check.

I have a PPF account with my wife as a nominee. With all the activities in SBI computerized, will it allow the change to include one more candidate? Do I have to define a percentage of money in relation to the nominees?

– Rajendra Rajyaguru

You can have two or more nominees on a PPF account but this is not possible on the netbanking site. Go to your bank branch to register it. Define the percentage of assets to be paid to each candidate. If the percentage is not defined, the balance is divided equally among the candidates. However, for applicants, the Elder or Survivor clause does not work. Yes, 99% and 1% will work. The concept of a cascading nomination does not currently exist.

The author is the founder of AZUKE Personal Finance Advisory (www.azukefinance.com). Send your questions to [email protected]

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