First, the property you are buying is the guarntee itself. As per banking guidelines introduce your banker to the concept of interim guarntor. This is the person who holds guarntee only till the liason is not marked in favour of the bank. generally 15 days. This term plan is a good idea to protect your family in case of an eventuality after you. But certainly not a tool to guarntee a home loan. What if you fail to repay home loan due to financial reasons and you are still alive. This term plan wont help you. The banker is just trying to fleece you.
Insurance premiums for the policy alluded to in this article is way more than what a term insurance needs
I recently took a SBI loan without a guarantor by subscribing to SBIs Smart Shield Term Insurance for the loan amount. This provides an annual premium payment option.
Assuming i foreclose the loan amount in 10 years i save about Rs 70000 if i used this option
i am a senior citizen, pensioner and owner of a freehold DDA flat. my daughter-in-law and son raised a loan of Rs. 30 lakhs from SBI. Bankers insisted for a guaranty. i was pestured and compelled to give guarantee. i purchased peace from my daughter-in-law and son. However, i asked the bank as to how my guaranty is good. they said i own a DDA flat and also pensioner. after purchase of the flat they shifted to the new flat. being old and qualified with heart problems, sugar and bp my wife and self wanted to stay with my daughter-in-law &co. the flat is in the name of my daughter-in-law. they refused to accommodate me. i told her that i am the guarantor for their flat. she threatened me by saying i will stop payment of instalments to SBI. then as a guarantor you will be liable for liquidation of the loan. i cannot pay Rs. 25000/- monthly instalment to SBI since my pension works out to Rs. 14000/- p.m. i have no other source of income. CAN SBI attach my DDA flat or pension? the position is i will not be accommodated by my son & co. if pension and DD flat is attached by SBI, i will have no source of income or place to live. can anyone guide me/advise me?
Re: I AM A GUARANTOR
by Sarfraz Bhairakdar on Aug 01, 2011 01:03 PM
Dont get scared sir, check with the bank telling them that you don't want to be a guarantor any more and bnak will have some solution
Re: Re: I AM A GUARANTOR
by DON on Jul 29, 2011 09:55 AM
THAT IS WHAT WE INDIAN CAN DO BURN ALIVE THIS IS THE ONLY SOLUTION WE HAVE FOR THIS TYPE OF PROBLEM. I NEVER SAW PEOPLE BURNING OTHER ALIVE LIKE THIS. THERE IS NO HUMANITY IN INDIA. THERE IS A LEGAL PROCESS IN THIS TAKE THE LEGAL PROCESS IF YOU FEEL YOU ARE IN REAL TROUBLE.
Re: I AM A GUARANTOR
by rajan raja on Jul 30, 2011 06:01 PM
If you have the paper of your flat you can reverse morgage your propety. and you and your wife will get emi till a certain age and after you your wife death house will go the bank. With the emi you can afford a servent.
i am a senior citizen, pensioner and owner of a freehold DDA flat. my daughter-in-law and son raised a loan of Rs. 30 lakhs from SBI. Bankers insisted for a guaranty. i was pestured and compelled to give guarantee. i purchased peace from my daughter-in-law and son. However, i asked the bank as to how my guaranty is good. they said i own a DDA flat and also pensioner. after purchase of the flat they shifted to the new flat. being old and qualified with heart problems, sugar and bp my wife and self wanted to stay with my daughter-in-law &co. the flat is in the name of my daughter-in-law. they refused to accommodate me. i told her that i am the guarantor for their flat. she threatened me by saying i will stop payment of instalments to SBI. then as a guarantor you will be liable for liquidation of the loan. i cannot pay Rs. 25000/- monthly instalment to SBI since my pension works out to Rs. 14000/- p.m. i have no other source of income. CAN SBI attach my DDA flat or pension? the position is i will not be accommodated by my son & co. if pension and DD flat is attached by SBI, i will have no source of income or place to live. can anyone guide me/advise me?
Re: I AM A GUARANTOR
by Monster on Jul 29, 2011 10:28 AM
Tape your discussions with your daughter in law and approach the bank manager that you are cancelling the guarantee.
Re: I AM A GUARANTOR
by rajesh prajapati on Jul 30, 2011 06:24 PM
1. When the loan is taken, the property for which the loan is taken is mortgaged to the Bank and hence the first thing the Bank should do and will do is to confiscate your son's (daughter-in-law's) flat! Only if that is not possible will they approach you and your flat. However, check with the Bank's manager. 2. Approach the Bank and say that you do not wish to continue being a guarantor and would like to revoke your guarantee. Send this notice after consulting your lawyer - your daughter-in-law would have to approach fresh guarantors! 3. File for maintainence thru' a lawyer. Under the recent laws, it is mandatory for the son to maintain his parents. 4. Wish you all the best.... as all options are difficult and prayers should help you.
i am a senior citizen, pensioner and owner of a freehold DDA flat. my daughter-in-law and son raised a loan of Rs. 30 lakhs from SBI. Bankers insisted for a guaranty. i was pestured and compelled to give guarantee. i purchased peace from my daughter-in-law and son. However, i asked the bank as to how my guaranty is good. they said i own a DDA flat and also pensioner. after purchase of the flat they shifted to the new flat. being old and qualified with heart problems, sugar and bp my wife and self wanted to stay with my daughter-in-law &co. the flat is in the name of my daughter-in-law. they refused to accommodate me. i told her that i am the guarantor for their flat. she threatened me by saying i will stop payment of instalments to SBI. then as a guarantor you will be liable for liquidation of the loan. i cannot pay Rs. 25000/- monthly instalment to SBI since my pension works out to Rs. 14000/- p.m. i have no other source of income. CAN SBI attach my DDA flat or pension? the position is i will not be accommodated by my son & co. if pension and DD flat is attached by SBI, i will have no source of income or place to live. can anyone guide me/advise me?
Nothing new. My wife got same facility in 2002 itself.Despite that,I paid back remaining amount after her death in 2005 without bothering for insurance co. to pay.
Re: Guarantor vs Insurance cover
by rajesh prajapati on Jul 30, 2011 06:15 PM
So, why did you buy the insurance? And why did the Insurance company accept the payment as that amounts to not honouoring its own insurance in case of death or disability?
This article is nothing about guarantor but about the policy that provides a backup in case of an eventuality. Today its mandatory for all home loans to have such a policy. Banks like HDFC even try to force it for personal loans.
Re: Nothing about guarantor
by Anil Gupta on Jul 28, 2011 07:58 PM
Well..you are right in a way. Banks have started forcing home loan insurance to earn from both hands. It is not mandatory though if you can provide any other type of collateral.
Re: Nothing about guarantor
by Venkataswamy Chinthalapudi on Jul 29, 2011 10:09 AM
Betther to have insurance backup for liabilities to have mental peace. I believe that total insurance cost should not more than 2% of loan amount.
I do not know if rules are changed recently.I took loan from SBI in december 2010.They did not ask for any guarantor and i got the loan.I am not sure if this is based on borrower's profile.
Re: I took loan from SBI without guarantor
by satish ganage on Jul 28, 2011 05:30 PM
Sir, What if your job profile & income as per as loan amount & let me know the agent of SBI whom u got loan. I want to do the same. tnx. hv nice evening sir
Re: Re: I took loan from SBI without guarantor
by satish ganage on Jul 28, 2011 05:31 PM
Sir, Please inform your job profile & income as per as loan amount & let me know the agent of SBI whom u got loan. I want to do the same. tnx. hv nice evening sir
Re: home loan under construction
by Anil Gupta on Jul 28, 2011 07:56 PM
Banks do provide loans for under construction property. Just check out with any bank of your choice.
Re: home loan under construction
by rajesh prajapati on Jul 30, 2011 06:43 PM
1. If the plot of land on which you are constructing your house is in your name, the same can be mortgaged against the Loan requirement. Check with your own banker.
