Property In Your Mother Or Grandmother’s Name? Here’s How You Can Get A Home Loan | Banking and Finance News

Home renovation loans are available for pre-built properties. (Representational Image)

With Diwali celebrated across the country on Monday, October 20, many families are gearing up to renovate or expand their homes. While some are sprucing up interiors and adding festive decorations, others are eyeing major repairs or even new construction. However, such projects often come with hefty expenses, and not everyone has the liquidity to fund them outright. For most, a home loan becomes a necessary option.

A common question arises when the property is not in one’s name but owned by a relative such as a mother or grandmother: Can a loan be taken in such cases, and what is the process?

Pradeep Mishra, property expert and founder of Oram Developments, explains that home renovation loans are generally available for pre-built properties. “If there is already a house on your grandmother’s or mother’s land, applying for a renovation loan is relatively straightforward,” Mishra said, adding, “But if the land is vacant, the process shifts to a construction loan, which has slightly different requirements.”

Co-ownership Is The Key

Banks require that all legal owners of a property against which a loan is being taken must be included as co-applicants. This means that if the land or house is in the name of a mother or grandmother, they must be a part of the loan application. This not only ensures compliance with banking rules but also increases the likelihood of approval.

Vacant Land vs Existing Property

If the property already has a house, securing a home renovation loan is relatively simple because the collateral exists and ownership aligns with the landowner. On the other hand, vacant land poses a slightly more complex scenario. In such cases, the loan must be structured as a home construction loan, and the co-owner of the land must apply alongside the borrower. This joint application demonstrates clear ownership and gives banks the necessary assurance to approve the loan.

Mishra advised borrowers to initiate discussions with banks early and ensure all co-ownership documentation is in place before applying. “Proper documentation and inclusion of co-owners can make the difference between a smooth approval and repeated delays,” he added.