Property as collateral
Jinesh
(Querist) 04 February 2015
This query is : Resolved
I wish to avail an educational loan exceeding 15 lakhs from private financial institution and has agreed to vouch my house as collateral.
The house is in grandma's name who is no more. No will was registered.
My father has two siblings and both have agreed to not claim the house and are ready to give NOC for that.
I wish to avoid the option of registering house in father's name for the time being.
The legal department has refused to accept property as collateral claiming bad title and sighting reason that a claim may arise in future.
If father's siblings agree to furnish an authentic NOC, why should there be an issue?
Please suggest a way out
Devajyoti Barman
(Expert) 04 February 2015
Approach another bank. The Bank seems to be too hesitant even when the other legal heirs are giving NOC.
P. Venu
(Expert) 05 February 2015
What are the constraints getting the house transferred/registered in your father's name?
Rajendra K Goyal
(Expert) 05 February 2015
Get the property transferred in the name of your father on the basis of registered relinquishment deed from other legal heirs of your grand mother.
You can explore the possibility of providing collateral security from some other guarantor.
Public sector Bank should be preferred as compared to private institution for taking education loan.
T. Kalaiselvan, Advocate
(Expert) 05 February 2015
The bankers are right in refusing to accept the collateral security the way you intend to to submit before them. You may try an alternative bank for loan, even if that does not approve your proposal, better get the things legally done making eligible for grant of loan.
Jinesh
(Querist) 06 February 2015
Thank you people.
If a valid NOC is supplemented along with property papers, how can a claim by the persons issuing such NOC arise?
