Pnb housing asking for undated blank chs in addition to mortgage and gurantee for home loan
vinaykala
(Querist) 20 January 2013
This query is : Resolved
dear sir,
pnb has granted a loan of 23 lacs to me for a plot of dlf.
apart from mortgage of plot and a very good guarantee they want ten blank undated chs but cross in favour of pnb.
this is not a part of the sanction letter.
in addition they have taken four blank ecs forms authorising them to debit emis agreed at monthly intervals.
the sanction letter is with me duly signed by them.
my queries on valuable guidance are:-
1. Is this violative of trade practices?..
2. if they present these chs filled in their own hand would it invite provisions of sec 138 of NI act.?
3. i am prepared to give crossed undated chs for the amounts filled equialent to the stated emis. Is that OK?.
4. I am prepared to give undated blank chs but with their acknowledgement. Is that OK?.
5. I am keen on the loan but do not want to give blank undated chs, ten in no. Can they after having sanctioned the loan wihtout the condition of chs, refuse the loan legally?
6. Pl advise
vinay kala dec 20, 13
Raj Kumar Makkad
(Expert) 20 January 2013
1. no.
2. if those stand bounced.
3. Yes, but the acceptance of the bank is must in this regard.
4. Yes.
5. Yes.
6. It is the mercy of bank to materialize the advances to you or not. If you do not accept their terms, you can be denied.
vinaykala
(Querist) 20 January 2013
dear makkad sahab,
a clarification sir.
perhaps i have not been able to explain enough.
i have the sanction letter without this condition of blank checks.
in that event can they legally still refuse the loan considering that all other formalities have been considered?
another query sir
if they refuse to give ack of blank/dated filled chs what do i do?
you had called this a must.
regards,
vinay kala
dec 20,13
Raj Kumar Makkad
(Expert) 20 January 2013
It is the discretion of the bank to disburse the loan or not. Sanction letter is not an agreement rather an authority to the local branch to disburse loan but on which conditions?
The conditions are what you are being dictated now. If you follow those conditions, it shall be ok otherwise move to some other bank.
vinaykala
(Querist) 20 January 2013
thanks sir,
if they acknowledge chs as you state i shall take from them.
else move to another bank
thanks sir
vinay kala
