Education loan(collateral)- prior title deed not available
Guest
(Querist) 27 April 2018
This query is : Resolved
I have secured admission to a top university in the US to pursue Masters in the field of Computer Science. However, to support my education, I would be requiring a loan of 30L(half of the total course expenses). We are willing to provide our house as a collateral and we do have the original title deed document which attests that the property is legally under my father's name. Our house is built on an ancestral property handed down to my father from his father after partition. However, when I approached the bank, they're asking us to provide the prior title deed document, before partition, to attest that the land belonged to my grandfather. The partition happened 45+ years back and we do not have any original documents with us to attest that.
The bank is asking us to get a certified copy of the deed from the registrar but still informs us that the process may not assure the loan. Getting a certified copy can take more than a month and getting the loan sanctioned can take even longer.
Is a prior title deed of more than 45+ years really necessary? Is there any other way out?
Siddharth Jain
(Expert) 28 April 2018
Getting certified copies from th Registrar does not always take a month and varies from state to state. Getting the said documents is necessary to get loan as bank needs to be convinced that their money is secured.For any other queries feel free to contact me at isidjain1@gmail.com
Ms.Usha Kapoor
(Expert) 28 April 2018
In order to obtain education loan security of prior title deed which was 45 years old is necessary for the bank to fall back on collateral security if you commit defaults in repayment of loan. You can't avoid this.
Dr J C Vashista
(Expert) 28 April 2018
The requirement of borrower bank is invalid, if your father has a clear title of the house property, get it authenticated from a local prudent lawyer.
You may apply to some other banker for advancement of educational loan.
However, the query is procedural where no dispute is involved to be guided/ advised by the experts on this platform.
BAALASUBRAMANNYAMM
(Expert) 28 April 2018
Mr.Siddarth Jain has suitably clarified your doubt
rajeev sharma
(Expert) 28 April 2018
It is very obvious that while accepting mortgage of any property wants to ensure that the property is not encumbered so the bank ask for the original previous title papers of the property.You have stated that your father got the property in a family partition. Whether any document of partition was executed? if yes that constitute the title document in favour of your father.If the property is ancestral then you may found its record in the municipality. You may get copy thereof from municipality. The certified coy of previous sale deed in favour of your grand father may be obtained from the office of sub registrar concerned and this act may not take more than three days to a week. Certified copy of sale deed , copy of municipal record , and the original partition deed are sufficient for creating equitable mortgage. If the present bank is not satisfied with these just change bank.
Kumar Doab
(Expert) 28 April 2018
Also check in said partition deed who has kept the original...
Otherwise everyone must have obtained certified copies..........
Show the certified copy in original..
