The property with the joint ownership of all the family members means we can say it’s a HUF (Hindu undivided family). One person of the family is appointed as a “Karta” and there is no limit to the membership of family members once the family members get married but he should be the son only. If the daughter gets married than she will not be considered as the member of HUF further. Generally HUF gets some income tax benefits on their yearly income and HUF gets special benefits from government and for getting the special benefits, in the same year two ITR(Income tax returns) needs to be filled by family. One is for individual name and another Income tax return with the name of HUF, so this is the clear picture of joint family low of Hindu religion.
Now we see the overall banks stands on the joint ownership property anywhere in India from HUF ownership. HUF is created due to some large undivided family structure and in this structure some minor family members can also be there and as per the Indian company law “No contact can be done with the minor members of the family in any manners”. If this happens, then it would be invalid and the transaction of property shall be cancelled. This is the only reason why banks and other financial institutes are not providing the mortgage loan, loan against property or any kinds of secured property loans against existing property which includes the ownership of HUF with presence of minor members of the family.
Sometimes, we see some kind of self employed customers who belongs from HUF and the owner of the firm is the “Karta” of the HUF in this situation. In such cases, if business stability is not a concern area which means company has enough experience approximating more than five years and have sufficient amount of ITR and supportive ABB is last one year bank statement with good vintage of existing loans in current balance sheets and P&L(Profit and Loss Statement) account of the company from last three years, some other parameters like the nature of business of the company also matters for availing unsecured loan from any of banks and financial company like NBFC and the loan amount can be availed up to 30 to 40 lacs as per the calculation from last three years ITRs.
HUF Karta can avail home loan also but the only points to be followed is, the family must not have currently any of minor members out of the HUF family, and some other point where member is director in any of Pvt Ltd entity, he is eligible to become the co-applicant, if the company is coming as applicant for any secure or unsecure loan processing. Loan against Property or any of Mortgage Loan on joint property is very difficult product due to some legal aspects which can come to HUF law, so the borrower have only few choices for getting loans. One is unsecure Personal Loan and other is Business Loan but he can avail the secured mortgage only if than he does not have any minor person in his family and it should be on board.
Loan against Property 