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KSharma   18 January 2016

Cancellation of loan application

I had applied for a SBI preapproved home loan. I have submitted signed application form and photocopy of documents but nothing else. The application is still under processing.

Now I've changed my mind about buying the property and also have to fly out of the country on job assignment. My understanding is that I do not have any liabilities until the loan is actually disbursed and thus do not need to do anything other than declining to sign disbursal form.

But I just want to confirm if I have any legal liabilities at this point that would require a formal cancellation. Or would there be any penalties applicable (loan processing fee was zero so would bank try to recover its costs)?

 

 



Learning

 1 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     19 January 2016

You had only applied for a Loan. What you gave thim is only an application. You have not signed any loan documents.  If your answer for each of this statement is YES, You have no liability.

To make things clearer, write a letter under Registered Post (Acknowledgement Due A/D) sent by Indian Post (not by courier) telling the bank you are no longer interested and your application stands withdrawn.  Ensure that the letter is written on a paper with your full pariticulars, fold it like inland leter and get it posted in Registered Post A/D. Preserve the acknowledgement.

 


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