Security to release the documents from the bank.
S.Krishna Prasad
(Querist) 22 September 2015
This query is : Resolved
Sir, the person who has taken the loan from the bank was expired and also his wife. He has no children left. To get the original documents released to his mother, banks are asking for security and Legal heir certificate. The cost of the house as per Government rates is about Rs. 15.00 lakhs. Now kindly tell us how much amount is to be shown as security and whether the person who gives security can have account in any other branch of the same bank.
Thanking you, Sir.
Prasad.
P. Venu
(Expert) 23 September 2015
The information furnished lacks clarity.
RAJU O.F.,
(Expert) 23 September 2015
The legal heirs can close the loans and get back the security documents which will be released only to the legal heirs of the deceased borrowers.
Rajendra K Goyal
(Expert) 23 September 2015
If the loan has been closed, submit to Bank the acceptable indemnity / surety and receipt from all legal heirs.
Person / surety should have more worth than the property in question. He may or may not be having account with the Branch.
Dr J C Vashista
(Expert) 25 September 2015
For the amount of security for release of documents qua the house of borrower, the bank may be approached, however, it should not exeed the loan amount irrespective of the market value of the property.
The bank would like to be indemnified in case the document (or release) to be claimed.
