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In a typical situation,it would be very difficult to get a loan against a vacant residential plot,where the borrower is a retiree. You can join as a co-borrower,in which case your income can also be considered for the purpose of eligibility. Also,most financial institutions lend to purchase a plot,rather than lending against the plot as collateral. You can,however,approach a smaller cooperative bank or an NBFC operating in the area where the plot is located.

I have taken a home loan from a private bank. The house is in my mother8217;s name. For the loan,she is the borrower while I am the co-borrower. I am making the payments towards EMI. Am I eligible for tax benefit as the co-borrower of the loan?

Kaushambi Nag,Panvel

It appears that you are not the co-owner of the property with your mother. Under the tax laws,only owners or co-owners can get tax benefits on home loan repayments. Even if you are a co-borrower,it will not help you as you do not own the property. Therefore,you will not be able to claim tax benefits on your EMI payments.

I want to purchase a flat in a society,which is offering a construction-linked plan. I have to pay Rs. 3 lakh every three months. My question is,can I take money from my father who has just retired and got Rs 18 lakh as retirement benefits? Do I get tax rebate if I take money from my father? Does my father have to pay extra tax if he gives me money?

Kamal Khan,Pimpri

There are no implications on taking a home loan from your father. With respect to such a loan,you can claim tax benefits for interest paid subject to a maximum of Rs 1.5 lakh per anum,if you stay in the house. No deduction,however,is available for repayment of principal for loans taken from friends or relatives. Also,tax benefits will be available only from the year in which the construction of the property is complete. For the interest payable during the year in which the property is under construction,you will be able to get the tax benefit for interest in five equal installments beginning from the year in which you take the possession of the property. You will also need a certificate from your father stating the interest payable each year,to present it to tax authorities for assessment. Further,you will have to conclusively prove that the loan was used for the purchase of property. The interest you pay your father will count towards his income.

The expert is CEO,Apnapaisa.com,For queries on real estate,please email us at estatesexpressindia.com