Joining a co-applicant in a home loan!

Are you aiming to avail a home loan? Will you like to relish substantial profits from it? Here’s your answer – joining hands for a bigger home loan. You can instantly apply for joint home loan by simply adding a co-applicant or co-borrower in your application of home loan. Let’s explore some terms about these loans which banks specify when co-applicants are added.

Loan eligibility

All banks allow two or more persons to jointly apply for a home loan. By applying along with a co-applicant, your eligibility increases and as a result, you can avail a higher loan amount. However, banks specify that only people with certain specified relationships like father and son, husband and wife, brothers are permitted to apply as co-applicants. Beyond these, other relationships are not permitted as co-applicants. Moreover, the co-applicant needs to have a regular source of income.

Between a co-owner and co-applicant

Co-applicant is a person who applies along with the borrower for a loan. A co-borrower along with the primary borrower accepts responsibility for repaying a debt. Infact, from a bank perspective, co-owners of a property should necessarily be co-applicants.

Husband and wife

One can include one’s spouse as a co-applicant for a home loan. His or her income will be added for determining the loan eligibility. The maximum tenure of the loan is determined based on the retirement age of the older partner. As per bank aspects, this is an ideal situation to have the husband/wife as co-applicant.

Father and son

The terms relevant to a father and son being co-applicants are thoroughly clear, if the applicant is the only son, he can jointly apply with his father with both the incomes being considered. The property should be in their names jointly and it does not matter who the main owner is. This is because in any case the son is the legal heir of the father’s property.

In case a person has two or more sons and if he wants to apply jointly with one of them, he should not be the main owner of the property. This is because, on his death, his children should inherit the property jointly and may cause an inheritance dispute. The father may only be taken as co-applicant and his income may be considered for the loan. He may be a co-owner or not own the property at all.

Unmarried daughter and father

An unmarried daughter can apply jointly with her father. However, the property should only be in the name of the daughter and the income of the father should not be considered. This is to avoid any legal complications on the subsequent marriage of the applicant.

Brothers and sisters

An applicant may apply with his brother provided they are currently staying together, and intend to do so in the new property as well. However, a brother cannot apply with his sister. Also, an applicant cannot have her sister as a co-applicant.

Documents

The documents needed for joint home loans are the same as any other home loan. The only difference is that here documents are needed from both applicant and co-applicant. General home loan documents needed are identity proof, address proof, salary slips and bank statements.

Taxation benefits

We all use home loans to save tax. Joint home loan tax benefits are an extension to the tax exemptions provided by home loans. In the case of joint home loans, applicant as well as co-applicant can enjoy tax benefit for the contributions towards the loan.

Visit www.cibilconsultants.com

Source-secondary

Prevent Identity Theft- Follow the Tips by Experts

Identity Theft is one of the by-product of technological evolution. World was more secure when there was no internet, photocopier or scanner. Identity Theft can be disastrous for any individual. Recently one lady's Home Loan was rejected because of low CIBIL Score. She was advised to pull out CIBIL Report. When  checked, her CIBIL Report, found that Rs 200000 outstanding was written off against her credit card. She never applied for this credit card. The credit card was issued at her old Delhi address before she shifted to Mumbai. It was a clear case of Identity Theft. 
Worst part is that complete onus is on an individual to prove that he is victim of Identity Theft. 

Normally on internet, the discussion on Identity Theft revolve around Online Identity Theft i.e. through internet. Offline Identity Theft is more dangerous and easy to execute. Secondly, there is more organized mafia whose job is find potential victims for Identity Theft. Mostly observed that online Identity Theft is because of mistake from user end which could have been easily avoided but scope of offline Identity Theft is vast. In this post we will discuss tips and tricks to prevent offline identity theft.

1. Photocopy of Documents: It was quite interesting episode, of one of TV serial, lady A gave her documents for photocopy and told shopkeeper that she will collect in 2 hours. Somehow fraudster steal the copy of documents. Documents were misused by fraudster to get job in Lady A’s  name. Fraudster committed fraud in her company and poor Lady A was caught based on documents. Though police finally caught the real culprit but imagine the trauma undergone because of Identity Theft.

Photocopy shops are soft and easy target for identity theft. With advancement of technology, photocopy machine can retain scanned copy of documents. It is advisable to take photocopy at home through printer only. If it is absolutely necessary to photocopy from outside because of volume then you should get it done only from known shopkeeper. You can also keep extra copies at your home for emergency.

2. Handover Documents only to Bank Executive and Take Acknowledgement: During our day to day financial transactions, we have to handover some imp documents to bank like PAN, Address proof etc. A businessman handed over his originals to employee and send him to bank for any such work. Yes, it is not feasible for businessman to do everything on his own. At the same time it is suicidal to handover either original or photocopy to 3rd party. It is advisable to handover documents only to authorized bank executive and insist on acknowledgement. In relevant document, also mention the details of documents submitted by you with the bank.

3. Watermark: One of the critical step to safeguard your identity is to watermark all the scanned documents and then take photocopy. Only use watermark copy for any future use. Watermarked copies are very difficult to temper with. Watermarking can be done using software like pdf writer or image editor. Though its a tiring job but you have to do only once in a lifetime.

4. PAN: Obtaining a PAN is one of the simplest govt process in my opinion. Last year CBDT madeverification of originals mandatory for PAN to reduce PAN based frauds. Analysts termed it as “Step Back”, “Return of License Raj”, “Bottle Neck” or “Retro Grade” step. Being an election year and under pressure from govt, CBDT withdrew the circular. PAN is lifeline for doing any financial transaction and process is so lax that anyone can manipulate.

PAN is one of the most misused document for financial frauds and is heart & soul of identity theft. PAN should not be issued / re-issued without verification of originals even if it cause inconvenience to general public. People don’t realize that its for their benefit only.

5. Inquiry in CIBIL Report

PULL out your CIBIL report atleast once in 6 months or preferable once every quarter. One of the important section to look out is “Inquiry Information”. Please check any suspicious entry in the report e.g. if bank A has posted entry related to Enquiry for issuance of Credit Card with credit limit 1 lakh. In case,  you have not applied for any such credit card then immediately you should bring it to the notice of the bank. Prevention is always better than cure and checking “Inquiry Information” in CIBIL Report is one such prevention.

6. Social Media: . An open invitation to Identity Theft, social media is one of the most dangerous place if not handled responsibly and with caution. Even Afghanistan, Iraq and Somalia will rank after Social Media. Social Media is emerging as a new crime hub both for financial and non-financial crimes.

“Too Little on Social Media can be Too Much”. It is advisable to draw a thick line between privacy and social interaction before you post anything through social media channels. Privacy should not be compromised at all and at any cost. Remember for a small mistake you have to pay heavy price.

7. Letter Box: In the age of internet and email, people don’t check their letter box for months. It is quite visible from overflowing letter boxes next to mine in my apartment complex. Its again an open invitation for Identity Theft. We receive bills and statements through snail mail and anyone can easily steal your identity using these document. It is advisable to check your letter box regularly to prevent identity theft.

8. Change of Mobile or SIM: Now a days most of the people change their mobile every 6 months. Also many of us have habit of storing important information on mobile like bank account no, PAN, Passwords, PIN etc. As mobile is personalized device therefore danger of Identity Theft through mobile is manifold. It is advisable that all the data from mobile should be deleted when you are changing it. Mobile should be restored to factory settings. Remove micro SD card and also remove all installed applications. Log out from all accounts sync with the device and most importantly remove SIM card (if you are opting for Nano SIM in new device).

9. Purpose of document: Whenever you are handing over photocopy of your documents, don’t forget to mention the purpose for which the documents is being handed over. For example, if you are submitting document for Ration Card then don’t forget to mention on Watermarked document “Purpose: Application for Ration Card” in either Red or Blue Pen. It will help to prevent identity theft. Secondly, if fraudsters realize that particular person has taken necessary steps to prevent identity theft then they don’t mess around. Only people caught unaware become victims of identity theft.

10. Date of Birth: Besides PAN, DOB is important piece of information for Identity Theft.  Birth Certificate was not mandatory earlier but now it is also one of the important document.

11. Beware of Freebies: Last but not the least and most crucial. Don’t share your DOB, mobile no, name etc through feedback forms in Restaurants or to participate in some lucky draw. You can politely say NO. There are no free lunches in this world but others should not have free lunch at your cost.

Learn more about identity theft at www.cibilconsultants.com
Source-secondary

Expert speaks on insiders role in online thefts

PUNE: It's not just clever tech planning but also inside information that apparently helped cyber thieves withdraw huge amounts of money from the accounts of people using the virtual funds transfer route.

Earlier this month, a businessman (Rajesh Bipinchandra Kamdar) was duped of Rs 19 lakh electronically in a cyberattack that targeted his bank account, where the fraudsters had blocked his cellphone sim to execute the fraud. As many as ten transactions were made from his bank account and the amounts were transferred to banks located in different parts of country. In a similar case earlier, Sanjay Govind Dhande (65), a former professor at IIT-Kanpur who now lives in Pune, also found Rs 19 lakh siphoned off from his bank account in a similar manner.

Cybercrime officials, who have leads on two of the four net-banking theft cases reported this month, revealed that in the case of the businessman who lost Rs 19 lakh, fraudsters submitted a copy of his passport to the mobile company to get another sim card issued. "The mobile company employee who issued a new sim in Kamdar's case has been traced, which will help us reach the fraudsters, who may be the same people in both cases as the IP address used in both cases is the same and has been traced to Nagpur," a cybercrime official said.

The official explained that once the second sim card was issued to the fraudster and it was activated, the first one in the victim's phone automatically got deactivated. "Investigations also revealed that the businessman's number had been diverted to another number (of a different mobile service provider) in Daund that had been deactivated six months ago. All calls made on his number were getting routed to this particular deactivated number," said the official, adding that in the meantime, Rs 19 lakh from his account were transferred to banks in Bhopal, Jaipur, Mumbai, New Delhi and Bangalore.

A cybercrime scrutiny expert said in many such internet banking related frauds, the cybercriminals usually have an insider in the mobile company as well as the bank. "The insider within a bank may provide the fraudster with information such as the 'fattest' account in the bank, the account number, user ID, the registered mobile number and even the prospective victim's KYC documents. The fraudster now knows the mobile company whose services the victim is using and arranges for an insider in that company to get the victim's KYC details. Without these insiders, such crimes are not possible," he said.

The expert added that the fraudster then uses these bogus documents to have another sim card issued to him. Once the sim is activated, he tries to reset the victim's online banking password for which the one-time-password is sent to the user's mobile number (which now the fraudster has via the duplicate sim).

Another cybercrime expert added that selling credentials of people is currently one of the biggest underground industry today, from where many fraudsters get the KYC details they seek. "There are also many duplicate sim card selling agents with vested interests within mobile service providers," the expert added.

A senior official from the cyber crime cell in the city told TOI there have been four to five such cases this month, where the victims' sim was blocked and cyber criminals transferred money from their bank accounts.

The official added that the money was transferred to 'fake beneficiary accounts' created by fraudsters in different banks across the country. "Fraudsters are able to create fake beneficiary accounts producing bogus KYC forms of people in whose names they open these accounts. Often, banks do not undertake KYC verification of each and every customer opening an account as it is a mammoth task," he said.

The official said that it is also very easy nowadays to hack into the victim's online banking username and password to execute such frauds. "If a prospective victim is using wi-fi, a seasoned hacker will know exactly how to get the information being punched in on the victim's computer even though he (victim) may be sitting somewhere else but in the same network," the official said.

Expert Speak:

"Upon receiving any alert of a bank transaction on the phone or upon having the sim suddenly deactivated, one should immediately visit the bank and ask the concerned authority to freeze all transactions. He should then lodge a complaint at the police station."

Sandip Gadiya, a cybercrime investigation expert

"Whenever people submit photocopies of pan cards or identification or address proofs, they have to make sure that it is going in trusted hands"

Sagar Rahurkar, a certified fraud examiner, said that

How the fraudsters did it?

Approached the mobile service providers, produced fake KYC documents of the victim and got a duplicate sim of the victim's number issued.

Activated the second sim card, because of which the original sim card with the victim got blocked.

Made several transactions, transferring victim's money into fake beneficiary accounts, in addition to online shopping transactions.

The criminals could hack into the victim's internet banking password to execute the crime.

'Banks should ensure safety of customer information'

"As financial institutions in India interact with more of their customers electronically, they face unique challenges in ensuring that every single new channel touching a customer is secure. This is vital with cyber threats growing in sophistication and increasing the numbers of financially motivated attacks, and exploiting security weaknesses across multiple channels of the bank and ATMs are no exception," said Anand Naik, managing director - Sales, India and SAARC, Symantec.

He added that cyber criminals are always looking for newer avenues namely social networks, unprotected mobile devices and unregulated usage of cloud services to not only attack an individual's identity but also their financial information. "These areas often lack security features such as encryption, access control, and manageability, providing a massive opportunity to cybercriminals. As banks shift from a branch-centric culture to a digital-centric approach to deliver great customer experience across multiple channels, they need to adopt an information-centric view of security. In fact, banks are mandated by RBI guidelines to implement comprehensive security measures such as two-factor authentication to protect customer information, identity and transactions," said Naik.

Improve your bad score and keep your good credit score intact. Consult us: Doctors for all your financial worries: Cibil Consultants

Source: Secondary

Misuse of Loan Documents affect your Credit Rating

We keep submitting our KYC documents such as Identity and Address proof (PAN Card, Aadhar Card, Passport, etc) for various purposes.

We apply for various loans for example housing loans, auto loans, consumer loans, etc. Even for buying a new sim card we need to provide our KYC documents. Not only documents, they accept those documents that are self attested i.e. signature on those documents.

With documents submitted for different reasons, there can be incidents where your documents could be misused. It can be used to apply for a credit card, home loan, auto loan, and for various financial purposes in your name. This can have a severe consequence on the credit profile as it can be termed as an inquiry in your credit report and greater the number of inquiries in your credit report.

 Misusing of documents can also result into identity theft. Identity theft is when someone uses your identity to apply for credit or loans. This will benefit the person who has applied for credit and can turn into a nightmare for the person whose name is being used.

 So here are some steps that should be taken care off:

• Keep your documents in a safe place, preferably in a cabinet or a lockable drawer.

• If your documents are lost or are misplaced, you should immediately file a police complaint. Also you should approach the concerned authority with a copy of police complaint filed by you.

• While submitting documents, you should write the purpose for which the documents have been submitted on that document.

• Digitizing documents is one of the best solutions to protect the risk of losing your documents.

• Checking your credit report timely will help you to identify the inquiries that an individual has not made and can take appropriate steps to rectify the same.

Don't let anybody harm your credit rating by using your loan documents secretly.
Check your credit report at www.cibilconsultants.com

Source: Secondary

Drop down in credit score due to errors !

Want to correct the errors in CIBIL Report and remove your name from CIBIL? Firstly let’s understand the type of errors that can be on your CIBIL report. Before that, the first thing you need to do, get your CIBIL Report.

Banks and financial institutes keep updating CIBIL about your credit behavior on monthly basis. So, at the time of entering some data, there can be some human error which can occur. Even though these are human mistakes, still they are responsible and correctly blamed by a lot of complaints.

Remember that each of these little things is very important and different banks have different criteria and weight age on a particular thing. So, getting each thing right is very important for your future loans. Make sure you have all of them corrected.

At times you will see things which do not belong to you, it comes into the category of “human error” or actually it might be on your name, just that you are not aware of it, this might happen if your documents are misused by some other person. This happens and has happened with lot of people. So take this seriously. Note that you might not see a recent update in your CIBIL report if you have applied for a CIBIL report within 45 days of a transaction. It takes time to update it in CIBIL report.

Once the loan provider confirms that there is an error, it will provide CIBIL with corrected data. CIBIL then updates the data and informs you as appropriate. Always remember, it is the duty of CIBIL to help you resolve your request.

Please remember that CIBIL score does not make changes to any information on its own. It is only a custodian of information received from credit institutions. CIBIL is permitted to make changes to your credit information only when it is confirmed by the relevant lenders.

For Receiving your credit score and Cibil report, book an appointment at www.cibilconsultants.com

Source: Secondary