Home loan cheating
Kvijay12345
(Querist) 17 March 2017
This query is : Resolved
My friend had taken a Home Loan from private bank in 2008. But the bank did not disburse the full sanctioned limit of the loan despite of the several follow ups by the borrower and also the bank did not give any clarification on that front. However the bank charged the EMI, Processing charges etc. on full sanctioned amount of the loan. In fact all the documents including the loan agreement and the loan promisory note inside the agreement were filled in for the full sanctioned amount of the loan despite of the fact that the full sanctioned amount of the loan was never disbursed to the borrower. After one year when the bank still did not disburse the remaining amount of the sanctioned loan the borrower defaulted on that home loan by notifying the bank. Then the notice under SARFAESI act was sent to the borrower which was duly replied by him. He replied that since the full and final sanctioned amount of the loan is not disbursed and the EMI is charged on the full sanctioned amount of the loan, the loan agreement had become null and void due to which bank can not enjoy the benefits of secured creditor. Since then nothing happened till today. I have heard that it is mandatory for the banks to release the full agreement value, otherwise that loan agreement is void and can be termed as breach of the contract.
Recently when the borrower got his CIBIL report it was mentioned that this loan is reported as “Suit Filed and Written off ” by the bank. What does this mean? What legal remedies are available for the borrower to sue the bank ? Is the loan agreement legal? What can the bank do now to recover its loan? What legal measures can the borrower take against the bank?
ADV-JEEVAN PATIL, MUMBAI
(Expert) 18 March 2017
When did not disburse full loan because of some discrepancy. Ask reasons as to why they are not disbursing loan. please note that your flat is mortgaged . so settle the matter amicably. court will incur more expenses n delay.
Rajendra K Goyal
(Expert) 19 March 2017
It is not mandatory for the Bank to disburse full sanctioned amount if the terms of sanction not followed by the borrower.
Whether the property purchased was ready built or the loan was construction based and if so, proof of amount spent and construction stage to stage certificate was submitted to the bank on due time?
You have not mentioned the reason for non disbursal of loan by the bank.
EMI and loan processing charges are on the total sanctioned amount and disbursal of loan is secondary stage.
Show all documents to some Banking expert lawyer.
One can not claim disbursement as matter of right if he has not observed all the terms of sanction.
EMI has to be paid from agreed date if loan has not been rescheduled by the lender on the request of the borrower.
Rajendra K Goyal
(Expert) 19 March 2017
It is your 7-8 th query related to your loan not paid by you in time.
It seems from your other queries that the case is pending with DRT, please obtain services of some expert lawyer to save your interest.
Kumar Doab
(Expert) 19 March 2017
Agreeing with Goyalji,
obtain services of some expert counsel, at your location, to defend your interest.
krishna mohan
(Expert) 20 March 2017
Well advised by experts. I would like to add the following:
a. Loan agreement is enabling provision to disburse as per stages of progress. If it is a flat, just check the reason for denial as sometime the value of loan sought may exceed the market value of property. As property is a collateral security mortgaged against any likely default they will not normally disburse more than 80% of assessed value by technical assessors.
You may keep in mind until you resolve the issue amicably and legally your credit rating will be detrimental in getting any further loan. If you are still convinced you are right, you may take the help of local legal expert on property matter as well as DRT to give you right advise after perusal of papers.
Kumar Doab
(Expert) 20 March 2017
Agreeing with Mr. Krishna Mohan, if your credit rating has already been affected, there is NO point in getting entangled with current lender also.
Better is seek local counsel support.
krishna mohan
(Expert) 20 March 2017
Thank you Mr.Kumar Doab for agreeing with my views.
Kumar Doab
(Expert) 03 April 2017
You are welcome Mr. Krishna Mohan.
