Siddharth (Student) 18 May 2011

Mutation requirement for property for securing a loan

Hello

I am looking to secure an educational loan against a property in Kolkata. There are a lot of problems.

My father passed away a long time back. The property that we have has been mutated in the past under my father's and mother's name. When we asked about the legal documents required for the loan, the lawyer of the SBI in Kolkata told us that we need to get a "new" mutation done under my sisters and my name, since my father's share is inherited by us. Since this supposedly takes 2-3 months, there has been a significant delay with all the proceedings.

However, recently when I spoke to a lawyer from the Supreme Court of India (Mr. M. Rao), he told me that once the mutation is done, it needn't be done again and for securing a loan, only a "legal heir certificate" would do (which takes about a day).

Please throw some light on this subject as I'm losing precious time.

Thank you in advance.

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2 Replies

Vikash Chandra Srivastava (Advocate) 22 May 2011

In property loan mutation order is necessary to ensure the chain of inheritence or passing of the property from one person to another. The legal heir certificate is a general document can be used for all purposes. But, specially to ensure the devolution of the landed property mutation is mandatory. In absence of mutation order a legal heir certificate along with legal opinion of a Bank advocate would help you to save your time.

V.C.Srivastava, Advocate

Patna High Court

prabhakar singh (advocate) 29 May 2011

It is surprising that BANKS are playing SUCH a HIGH HANDNESS in matter of EDUCATIONAL LOANS DESPITE GOVT. AND RBI DIRECTIONS that EDUCATIONAL LOANS HAS TO BE GIVEN AGAINST SIMPLE ONE GUARANTOR WITHOUT ASKING FOR COLATERAL SECURITY OF IMMOVABLES.

why donot you approch to some other bank to enquire a fresh about terms of loan in the light of my obsebations made here.Not every student family may have property is the reason behind it so that students without means may not loose chance of education is the reason in mind of govt.