CASE – STUDY on Home Loan

Mr. Ram Kishore singh is a salaried class person. His DOB is 21 st May 1983
and is employed with I.T. Ministry as a software engineer for last 7 years. His
qualification is B.E., MBA. As on July 19,his monthly salary is Rs.120,000/=
and in addition to this he is getting Rs.35,000/= as a bonus in every quarter.
Income tax return for last 3 years are as under :
For 18-19 Rs.14.20, 17-18 Rs.12.75 Lakh and for 16-17 Rs.11.90 Lakh. He
has paid Rs.1,75,000/= and Rs.1,50,000/=and Rs.130,000/= respectively
TDS for these yrs - For 19-20 TDS of Rs.0.58 Lakh has been deducted till
July 19

Salary slip reveals deduction of Rs.10,000/= as P.F and Rs.14,500/= as

Income Tax

He along with his wife have entered into an agreement on 10th August 2019
with one Mr. Krishna Kumar for purchase of independent ready-built house
for Rs.90 Lakh which is around 4 years old. The house is constructed on 1800
sq.ft of land. The total constructed area on Ground Plus first floor is 2000 sq.
ft. The agreement is valid for 60 days. As per contract Mr. Ram Kishore has
already paid Rs.2.50 lakh as an advance of which Rs.2 Lakh has been paid in
cash and another 7.50 Lakh has to be paid before 30 August, 2019
The applicant further submitted that he is having following members in
the family
1. Mrs. Kusum Lata – wife – DOB 13-07-1986 employed with software co.
and earning Rs.52,000/= p.m. Her last 3 years income tax returns are as
under:
18-19 Rs.4,80,000/= and 17-18 Rs.5,40,000/= and for 16-17
Rs.6,24,000/=She has paid Rs.5000/=, Rs.4500/= Rs.9500/=as income tax
for these 3 years respectively

2. Mr.Rup Lal Singh – Father (aged 66 yrs) – an Agriculturist having land

10 acres and annual income around Rs.7 Lakh (no income tax return filed) He
is having Rs.30 Lakh as Term Deposit with Dena Bank

3. Mrs.Rupali singh (aged 62 years) – Mother of applicant no.1

– House wife (no income)

4. Mst Raju s/o Mr.Ram Kishore singh – minor son DOB 11.1.2011

Mr Ram Kishore singh and wife possess Pan card, Aadhar card and also
Passport.
 Mr. Ram Kishore singh is interested to avail the loan jointly in the name of
self and his wife. They are looking for a loan of Rs.65 Lakh

Mr. Ram Kishore singh availed car Loan from SBI and the present position of
the account is as under :

EMI 12875/= ; S.L. Rs.7,50,000/= O/s Rs.4,40,000/= loan availed in the year
Feb 2017

Bank account statements (Salary) reflect

1) One entry of Rs.5,000/= p.m. going to R D account which is in the
name of his minor son. Tenure of RD is for 10 years
2) One entry of Rs.15,000/= fvg. Mr.Janakraj Arora – every month
towards payment of rent towards the house where he is residing
3) Mr.Ram Kishore singh further informs that he is also getting
Rs.20,000/= as a rent in cash from one of his shop but the rent
agreement is not registered

On the basis of the information available work out

1) the maximum eligibility and the repayment period of the home
loan as per Housing Loan Scheme
2) Which are the important documents/information required to be
submitted by Mr.Ram Kishore singh and Mrs. Kusum singh
3) What will be total EMI for the loan amount
4.)What are the important points to be seen for assessing the home
loan proposal
5) Complete the application
6) Prepare the process note provided to you

Mr. Ram Kishore singh has further requested :

i) Not to insist for closure of his present car loan account
Ii) Allow him repayment for 25 years
Iii) Not to count the deduction of Rs.15,000/= for arriving his
eligible loan amount as he will be shifting to his new house
immediately after Registry and getting some renovation done which
will take 20-30 days
iv) Allow him moratorium period of 2 months in order to settle
down
While Assessing the proposal pl presume that
i) Effective ROI is 8.50% p.a.

Case Study No.2

In the case given above – work out the eligibility of home loan with
the following information :
i) Applicant is interested in availing home loan in his single
name and not interested to club the salary of his spouse
Kusum Lata And
ii) He is also ready to close his car loan account