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Business loan against property

(Querist) 29 January 2015 This query is : Resolved 
Dear sir, need your suggestion with regards to a loan my father held with sbi bank in ichapur am, srikakulam district.My father was in need of funds for his business so he gave his property documents and borrowed inr 20000 of which he repaid only Rs.4000/- and due to financial crisis he could not pay the This was in the year 1997 Now when we contacted the bank they are not able to help and saying that they do not have the documents as the bank premises were changed three times. Also at that time the bank used to keep physical documents and it was not computerised so they are not able to pull anything with the loan account no. All we have now is the xerox copy of the patta and loan account book. We are also not sure if it was a mortgage or business loan. Need your advice on the following. 1 What happens in this case to the property? 2 If we want to claim how to go about it? I wanted to check with the Bank before I go further on this. I will really grateful to you if you can given me your valuable suggestion I would really appreciate
ajay sethi (Expert) 29 January 2015
you must have bank receipt of handing over original documents to bank . unless loan is repaid bank wont release the property . bank must be forwarding your father detailed statement of loan account . check the amount due and payable to bank

if bank gives in writing that original documents are lost you can obtain certified copy of sale deed from sub registrar office .
Isaac Gabriel (Expert) 29 January 2015
Send a online complaint to the Banking ombudsman,so that concrete steps would be taken to identify the loan and its present stage,and also locate your documents.
khananbar (Querist) 29 January 2015
Thank you so much for your suggestions. Sir kindly assist with details about the tenure before which we can claim or settle a business loan and mortgage loan.
Kumar Doab (Expert) 29 January 2015
Probably you are asking verbally and getting verbal replies.

The reply of the banker/bank shows how the bankers despite so many penalties still make a pass on unsuspecting customers.......

The bank is fully responsible for safekeeping of the documents and shifting of the premises is no excuse..........

The Central Office of the bank might be keeping title deeds of all properties under loan.....safely in safe....

If bank has lost it is fully responsible for deficiency and is liable for compensation and to recreate the documents........

It is vaguely remembered that in one thread judgement that M/s ICICI bank was held liable for damaged documents kept in safe during floods in Mumbai.....
Rajendra K Goyal (Expert) 30 January 2015
1. Are you sure that the loan was taken on property? Probably in 1997 property papers were mot required for business small loan of 20,000/-(being priority sector loan). Personal loan was not given frequently in those days.
2. Please ask the Bankers to check the deposit of title deed register (where the recital of depositing title deed are noted). The register is on going and may not have been destroyed. If entry of the title deed is there ask the Bankers to search the property papers.
3. There are possibility that the loan outstanding was written off by the Bank to clean the balance sheet. Entry of such loan is kept separately.

4. If you have proofs of deposit, Bank would issue the title papers lost certificate on clearing its dues, if documents not traceable with them, you can apply for the certified copies from registrar office.


khananbar (Querist) 31 January 2015
Sir kindly assist with details about the tenure before which we can claim or settle a business loan or mortgage loan.


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