Dear Friends,

First the background.

My father took many credit cards and loans from various banks in the first decade of 21st century. He defaulted on many and many were written off using the loan from the market.

I started college in 2007 and took education loan in mine and father’s name which is around 5 lacs.

Since the father’s loan from market was with huge interest so I took a personal loan after getting a job of amount Rs 3.85 lacs and cleared half of the market loan as earlier we were only able to pay the interest on the loan.

My salary is only Rs 31k per month and I’ve exhausted on my loan limit.

On the total there is around 16 lacs loan on us (including the interest and other stuff). My younger brother will be completing school this year and then continue higher education which will also cost us around 1.5-2 lacs per year. I also have a sister who is in 7th class and her school fees amount to Rs 10000 per month. The only steady source of income is only mine and since father is a contractor so sometimes he get money sometimes not and that too is just sufficient for the monthly needs.

There is constant pressure on the father since 2006 to meet the ends meet and with brother going to college that will become too difficult and he is now becoming restless.

We have a house with an estimated cost of about 90 lacs. My father is now thinking of selling the house–> clear all the debts –> buy a smaller house of around 40-50 lacs and  saving around 30 lacs for the children and invest 10-15 lacs in his business.

I suggested him to to mortgage the house and use that money to clear all high interest loans. But due to his very bad credit history no bank is giving him the loan . the transfer of property to me will also involve stamp duty of around Rs 5 lacs which we also don’t have.

So is there any way by which we can mortgage the property in my name and get the loan from the banks.

Or is there any other way to solve this problem.

Thanks