My brother and I purchased a property in Jamshedpur by taking a joint home loan from HDFC. According to income-tax regulations, we should get a tax exemption on the loan. HDFC has issued a single statement stating the total principal and interest deducted as EMI from April 1, 2005, to March 31, 2006. I feel that by the rule, HDFC should not issue a single statement as it is a joint account. Both of us need to file income-tax returns and would individually claim 50 per cent of the interest amount. Is it possible for us to do so?

Pranab Ghosh, Jamshedpur

HDFC officials say they will issue just one certificate for a loan on a property, whether it is a single or a joint account. However, it is possible for you to claim income-tax deductions based on the certificate in keeping with income-tax regulations. You can consult a chartered accountant on this.

I wish to apply for a home improvement loan. Do I need to take a detailed estimate from an architect before applying for it?

Gargi Mallick, Calcutta

Before opting for a home improvement loan, it is always better to seek professional advice like that of an architect or a structural engineer.

You should always keep in mind that any structural changes, like extensions or further construction require clearance from municipal authorities.

Moreover, documents of a property, including the sanctioned plan, and licence for the extension are also required by housing finance companies before they disburse a loan. The loan process should be initiated only after the contractor for the work is identified and the cost of repairs estimated.

I want to take a loan to buy a house. What are the collaterals banks and financial institutions accept?

Rajan Boral, Calcutta

Generally, you can provide title deeds or such other documents as collateral security. If the property is under construction, interim security may be required as the property itself is not ready to be used as collateral.

Interim security could be assigned to the bank or financial institutions where the surrender value is at least equal to the loan amount. It could be other forms of guarantees or pledges of shares acceptable by the bank or financial institution.

One should ensure that there is no existing mortgage, loan or litigation that could affect the title of the property.

Send your queries to propertt@abpmail.com or mail them to

Sambit Saha, Business Telegraph, ABP Ltd,
6, Prafulla Sarkar Street, Calcutta — 700001