If the property (for which I have taken a home loan) goes under some kind of legal dispute or builder stops construction, what will happen to the loan? Will I need to keep paying EMI?
Ram Awasthi, Noida
Your liability to service your home loan is independent of your inability to get possession of the property, either due to legal dispute or fault on the part of the builder. In case if there is a delay in getting the possession for any reason, you will have to keep on paying the EMI. As a buyer, it is basically, you, who is responsible for checking on the property title or the possibilities of a delay in construction and the risks to be borne. It is in your own interest to continue to pay the EMI so that your credit history is not spoiled. In case you stop paying your EMI it will be reported in your credit history which in turn will damage your ability to avail any credit facility from the banking system in future.
