Gurantee for property
Yetendera Agrawal
(Querist) 13 December 2011
This query is : Resolved
Dear Experts,
I have applied for house loan to a private bank and accordingly submitted all the documents to bank, but now they are dening for disbursement due to following reasons:
1. Loan section requires the "Notarised English Transalation" of property sale deed.
As far as my understanding and knowledge of law, English Translation of any document is in India is required only if the document is in vernacular language. But my property sale deed is in Hindi, and loan section is mentioning that some of their employees are not well verse with Hindi hence English Translation is required.
2. Personal guarantee from guarantor duly signed by guarantor only
My father is guarantor for the said case, and as an applicant I have also signed all the pages of guartnee since it belongs to my loan application. The Guarantors name and signature is very well available on the guarantee. But now loan section is not accepting the said guarantee since my signature is available on all the pages and as per their reasoning it should be signed by guarantor only. They give the reasoning behind this that "In case the matter goes legal due to it becoming unsettled loan then the guarantor can claim to have guaranteed only for 50% of the loan amount since the loan availer has also signed on the guarantee paper . According to him that by signing the guarantee deed alongwith the guarantor the borrower has indicated indirectly that the guarantor is liable only for 50% of the loan amount."
3. Co owner guarantee duly signed by co owner only
My wife is co owner of the property, and as an applicant I have also signed all the pages of guartnee since it belongs to my loan application. The Guarantors name and signature is very well available on the guarantee. But now loan section is not accepting the said guarantee since my signature is available on all the pages and as per their reasoning it should be signed by guarantor only. They give the reasoning behind this that "In case the matter goes legal due to it becoming unsettled loan then the guarantor can claim to have guaranteed only for 50% of the loan amount since the loan availer has also signed on the guarantee paper . According to him that by signing the guarantee deed alongwith the guarantor the staff has indicated indirectly that the guarantor is liable only for 50% of the loan amount."
Kindly guide since I am following up with loan department since last one year and every day they come with a new requirement as per their own logic.
ajay sethi
(Expert) 13 December 2011
you want the bank loan . bank is not bound to grant you a loan unless you meet the bank requirements .
if you are unable to fulfill bank requirements apply to another bank for housing loan
Devajyoti Barman
(Expert) 13 December 2011
There are plenty of banks out there .'Leave this one and knock another. Where is the problem?
Sailesh Kumar Shah
(Expert) 13 December 2011
you have to understand that You have no legal right to obtain loan. Totally depend upon, as per rules,regulations,will of competent authority of the bank.
Raj Kumar Makkad
(Expert) 13 December 2011
It seems that think that it is the civil right of a citizen to obtain bank loan of his own terms and conditions whereas law is entirely opposite.
Otherwise also the requirement of the bank is totally accurate and legal. You shall have to fulfil entire documentary requirement prior to sactioning of loan over your application.
Beware that even after fulfilment of the aforesaid requirement, bank can deny to sanction you loan and you cannot do legally against it under legal system of India.
RAJU O.F.,
(Expert) 14 December 2011
First you have to realise the fact that sanctioning of loan is at the discretion of the bank. If you don't agree with their terms search for another bank.
Even if the title documents are made in Hindi, please note that everybody working in all parts of India is not conversant with the language of document in Hindi. Hence only alternative is translation to English.
Extraneous signatures in documents may make the documents invalid, please note.
Guest
(Expert) 14 December 2011
I believe, there is no need for translation of document in English, if the same is in Hindi, being our first as well as national language.
If one bank denies a loan, you can try another bank.
Besides, you can take up the matter with the banking ombudsman as well as the RBI.
