My girl friend booked a flat in Pune, Maharashtra & she was eligible for PMAY subsidy hence the flat costed her 5-6 lakhs less than the market price. When I checked with them regarding my eligibility
we found that I was not eligible for the subsidy. Now due to Corona she lost her job and she is unable to buy the flat. So we decided that I will take Personal loan & purchase the flat & later she will transfer the property to me so that I can Mortgage or Loan Against Property(LAP) it. The amount which we will get from mortgage, we will use it to foreclose the personal loan.
Now the property is bought as well as registered under my girlfriend's name. All I wanted to confirm is whether I should do a sale deed or gift deed. If we do a gift deed then can any bank lend me LAP because what i heard is only blood relations or relatives can do gift deed and only such gift deeds are eligible for LAP. However in case, if we do a sale deed then what financial complications(like ITR/tax/penalties/etc.) i have to take care.