Can You Apply for Home Loan if the Land is in Your Mother’s or Grandmother’s Name? – News18

Building a house or renovating an existing one requires significant capital, which typically comes through bank loans for common people. While getting a home loan is generally a simple process, it differs slightly if the land is in the name of your mother or grandmother. What process needs to be followed in this case and can you get the loan at all?

If you need funds to renovate a house built on your grandmother’s or mother’s land, you can apply for a home renovation loan directly. However, if you intend to construct a new house, you will need to explore the option of a home construction loan. The first step is to verify the land documents and visit to your bank.

Get a Co-Applicant

According to property expert Pradeep Mishra, in such cases, it is advisable to apply for the loan with your grandmother or mother as the co-applicant. This requirement arises because all co-owners of the property for which the loan application is being made must be co-applicants. This inclusion will facilitate the loan approval process.

Why is it necessary?

Mishra stated that banks only approve home loans when you have proper documentation for the land. If the land papers are in your mother’s or grandmother’s name, the bank may refuse to grant the loan solely on your name. In this scenario, you have two options: either take the loan in the name of the legal owner or include them as a co-applicant.

Why Not Apply in the Name of Your Grandmother or Mother Alone?

Mishra further said that one may wonder why you cannot apply for the loan solely in your mother or grandmother’s name. The reason is that banks also assess whether the applicant has a stable, fixed income to repay the loan. In many cases, grandmothers or mothers may not have a fixed income, leading the bank to decline the loan application. Thus, it is essential to include yourself as a co-applicant in the application.