education loan by a property with case
karthikeya manickam_M
(Querist) 02 May 2014
This query is : Resolved
hi, i am karthik, a meritorious student have got admission for mba in france.I am in need of education loan up to 1600000 lakhs for my studies. My family having an empty non-agricultural land [1.77 Acres/177 cents] with no buildings . We bought it before 20years from government, directly . Due to rise of land value up to 2crores, it has got occupied illegally by a broker. We have filed a case against him in sub-court. Without any documents he has got loose. we have got victory [X party side ]due to frequent absent of opposite party due to no documents. But for scare us Again and force to sell, he reapplied in district court. its going. due to mother documents submission in court I didn't approach bank. Regarding that i have discussed with ombudsman. she was needed banks suggestion. I am maintaining my account up to 7 years at one of the reputable government bank branch. My family members always maintaining their accounts and doing transactions with that branch. So, I have gone to main branch and discussed with loan-in-charge. He has given suggestion that, I should take a nil-encumbrance-certificate up to last month and I can get loan with my branch. So I have contacted my particular branch manager. Without analyzing my documents properly [ academic certificates] he has rejected with silly reasons that I have got low marks even I am having 70% average. And my property is not worthful even my property is valuable. and my property is not in main area even my property in main area too. Afterwards, he has told that my college ranking is not good even my college rank is 12 all over the france. Finally he has suggested that bring a property with buildings. So I am going to report ombudsman .
From my side additionally, i have got nil encumbrance certificate[up to current month].and i have got a legal opinion that my property is a marketable property from a notary public. Additionally, i have a no objection certificate[nil due certificate] of my own sister’s education loan from that branch. Additionally I am ready to take one time, single premium, term insurance for 2000000 rupees coverage up to 5 years to strong my side . If bank needs then I am ready to increase insurance amount and make double insurance with two different companies . Now I am going to apply to ombudsman. At any cost I am in need of loan. I don’t have any other options that any other property or income holder or sponsor. I belong to a lower middle class family. I am ready to file a case in high court against bank if ombudsman rejects my request. Could you tell me that may I get my loan at which possibility? If I cannot then what should I do and where I have to go for increase my loan approval possibilities. Please suggest.
Sudhir Kumar, Advocate 
(Expert) 02 May 2014
do you think that experts will work hard to understand your English and then advise you.
Rajendra K Goyal
(Expert) 03 May 2014
For granting an educational loan to this tune of amount, bank has to take credit decision depending on many factors as per their norms. It is not the right of applicant that Bank is bound to give him loan as demanded by him.
A property is not free from encumbrances if some court case is pending on it about its title.
Non encumbrance certificate has to be obtained from Bank's panel lawyer and not from notary.
Every Bank has fixed norms of ranking about institutions, studying in which loan has to be given.
Having long relation with the Bank by having accounts is a positive point but not only factor to decide.
You may approach ombudsman, but I doubt it would force the Bank to give loan without meeting all its criteria. High court if entertain your case, would take 3-4 years to decide.
Better complete the formalities required by the Bank, mortgage property with clear titles and get loan. You can offer property of some of your relative, who would stand as guarantor for your loan.
Sudhir Kumar, Advocate
(Expert) 03 May 2014
it is not understood what sort of certificate notary has given. He is competent only to authenticated depositions.
Such certificate can be given either by Distt Govt pleader or by the panel advocate of Bank.
Further, are you intending to visit France after taking loan?
karthikeya manickam_M
(Querist) 04 May 2014
sorry for grammatical mistakes. Sorry to disturb again.
I can understand about bank loan norms. But I am not having any other Resources like income holder or sponsor. If i am having then why am i reporting here?. I will go to the bank and get loan. I am having only that property. from my relative side no one will help.We are maintaining all the documents from 22 years back properly.
Me and my family members are doing transactions with that the bank up to 7 years. As I have said already my own sister paid her educational loan and has got nil due certificate.Additionally I am ready to take single premium term insurance coverage up to 2000000.
Sudhir Kumar, Advocate
(Expert) 04 May 2014
link
http://www.lawyersclubindia.com/experts/-Education-loan-by-a-property-with-case-469961.asp
Sudhir Kumar, Advocate
(Expert) 04 May 2014
also link
http://www.lawyersclubindia.com/experts/education-loan-by-a-property-with-case-469786.asp#.U2Zew6KlojA
Rajendra K Goyal
(Expert) 05 May 2014
If your relatives are not ready to help you should you hope from a Bank to give you educational loan when you are not fulfilling the Bank norms. Presently you are not taking cash from them, just a guarantee that if you do not pay back they would pay.
Rajendra K Goyal
(Expert) 05 May 2014
----If i am having then why am i reporting here?. I will go to the bank and get loan.
-- But this forum can not help in advising you as you want, It has no authority to direct Bank to provide loan to you even when your relatives are not ready to help you.
prabhakar singh
(Expert) 05 May 2014
Agreeing to lend or not is purely lender choice.
However banking and financing is a regulatory business.RBI is regulator.
Nationalized banks are expected to grant
loans to promote Govt.policies. Indian banking sector began giving education loan from 2001 on wards. However due to increase
of NPA for these kind of loans.banks have been advised to be prudent and cautious while granting educational loans. For instance, State Level Bankers’ Committee (SLBC) Chairperson sent a strong message to banks that, “The non-performing assets level is certainly on the higher side in case of education loan advanced collateral free. Only the meritorious rather than the deserving candidates should be considered for granting education loan.”
The RBI has included education loans as part of the priority sector lending of banks. It aims to provide need-based finance to meritorious students. But students should bear in mind that educational loan is like any other commercial credit, and it is at the
bank’s discretion to sanction a loan
after assessing ‘credit worthiness’
of the borrower. This entails that students should be well prepared for commercial negotiations by doing their homework well on how to repay the credit through earnings from job.
‘Meritorious’is a relative term, assumed if the student has qualified the entrance exam for admission to professional and technical courses. But in case selection is purely based on marks scored in the qualifying exams, the banks sometimes fix cut-off marks (percentage) for loan eligibility. Those being selected under the ‘management quota’ have been kept outside the purview of educational loan schemes as they are not considered as fulfilling the criteria of merit.It’s essential that students land up with good jobs on completing the course to repay a loan. So banks do consider available ratings in public domain, reflecting employability of students through campus placements of the institutes, for loan approval.
Students generally don’t have any credit history and their credit worthiness is presumed for granting education loans. But banks insist that parents who are joint borrowers should also have a clear credit history. In case parents have an adverse credit history, the bank may insist on having joint borrowers, other than parents, on which they can rely.
TO CONCLUDE 'TO GET ANY LOAN IS NEVER A RIGHT'.
YOU DID NOT HANDLE THE SITUATION IN PRACTICAL MANNER.
THOSE ENTRUSTED WITH DISCRETION IN INDIA APPLY IT ONLY WHEN THEY ARE ALLURED TO 'SOMETHING'THEY AGREE TO ACCEPT 'IN LIEU OF'.
THIS
'SOMETHING' IS CORRUPTION WHOSE BEGETTERS ARE CORRUPT LEGISLATURES IN WHOSE CONTROL
THE GOVERNANCE IS AND NOW IT HAS BECOME ALMOST A 'CUSTOM'AND OUR PSYCHIC IS THAT WE NEVER WANT TO SAY GOODBYE TO ANY CUSTOM,BE IT GOOD OR BAD.
ajay sethi
(Expert) 05 May 2014
agree with experts
Sudhir Kumar, Advocate
(Expert) 05 May 2014
Mr Sethi agree with Mr Prabhakar Singh detailed analysis but querist may or may not agree
prabhakar singh
(Expert) 05 May 2014
Mr.Sethi did not agree with me in particular.
He agreed with all experts.
That means with you Goyal and me.
BUT WHAT ABOUT YOU sudhir?
T. Kalaiselvan, Advocate
(Expert) 06 May 2014
infact I too agree with the views and opinions of expert Mr. Prabhakar Singh on the subject issue. He has very clearly and elaborately explained the circumstances and the conditions that are to be complied with which will render suitable report for grant of such educational loans. Whether the author is agreeing to this opinion or not, it is the opinion in the minds of experts on the subject issue, you cannot expect an expert to render an opinion suiting to the taste of the author, it will not be termed as an opinion at all and it will be wrong. Therefore let us maintain our quality while rendering our service to the needy through this honorable portal.
karthikeya manickam_M
(Querist) 07 May 2014
Good Noon Mr.Singh Sir,
As You have said "Agreeing to lend or not is purely lender choice." And TO CONCLUDE 'TO GET ANY LOAN IS NEVER A RIGHT'.
I have something to ask regarding your statement. If it is a private bank or institution it may be a lenders choice. because they are responsible one for their investors money.but according to government bank how it can be?. In the future If bank got bankruptcy , no doubt the government will save the bank and employees job. Every citizen is a part the government and for their money by tax. Then how they cannot have the rights of getting loan if they qualified. And how the loan NEVER BE A RIGHT if a citizen qualified.Is there any Assurance in the law book that government won’t save the government bank or institutions in case any problem?. And how all the experts agreeing with this point?
And in my case how the bank will loose their money after giving my loan.
My +ve's are,
1]I am a long term customer up to 7 years,
2] My family members [mom father sister ] are also the long term customer upto 7 years.
3] My own sister repaid her education loan and I am having the “nil due certificate “/no objection certificate for her loan.
4] I am ready to take single premium Insurance coverage up to 5 years for 2000000 rupees. But I am asking for 1600000 rupees only. In this case there is no need to renew the insurance or take worry about loan repayment. I am not saying I won’t repay. It will strong my side and giving additional protection for my loan. If the bank needs then I am ready to increase the amount and coverage period.And ready to take double insurance with two different companies. I am having letter from LIC manager Assuring If the bank will give the loan then they will insure.
5] Regarding property documents – a notary public opinion.
My only -ve is,
1] My property in a minor case. But for that reason Me and my family ready to obey any additional conditions or documentation by bank.
So my final statement is If the bank won’t consider me then why I cannot get my loan rights being citizen of India and paying my tax directly or indirectly?. Secondly, If the bank taking worry a lot about my property case then what is the use my many +ve sides and being a good long term customer? . Finally, After giving loan to me How the bank will loose their money Apart from my insurance?.
Experts, Please give answers for my last three questions , specifically.
prabhakar singh
(Expert) 07 May 2014
My capacity is not towards judging financial bankruptcy as that is the bank's or lenders'
business but for sure i assure the world about there is intelecutal bankruptcy but sorry,there is no law to declare one intelectually insolvent.
My dear author!
i have never qualified any exam of one like you nor did ever was that my need or aspiration.any way i am for below your logics.
Enjoy your holidaYS IN HONY LOOLOO !
OKAY!
REGARDS TO YOUR INTELLECT N HATTS OFF TO YOU......GENTLEMAN..
karthikeya manickam_M
(Querist) 08 May 2014
Good noon Mr. Singh sir and All Experts.
I didn't mean that I am an expert of law book. I don't know about law book a single bit. Thats why i am here to consult and take advice from you.
And now my doubts are totally cleared.I don't have any further doubts. Any how, Sorry a lot of disturbances by me. Thank you for your kind answers and advice.
Thanking you All for the precious time spent for me.
