Tahir Neyaz 21 March 2024
Hi, we have a partnership firm and we took cash credit loan of 50lakh for business purpose keeping home as a collateral of one of the partner. But now the business situation has deteriorated. I don't think after few months we will be able to pay even Interest to bank. What can we do now? How to get a house paper out of a bank. Kindly help.
T. Kalaiselvan, Advocate (Advocate) 21 March 2024
If the house property has been given as a collateral security for the loan then until the loan is discharged fully the house property papers cannot be retrieved.
The lender will take steps to recover the loan amount with interest as per procedures of law.
Dr. J C Vashista (Advocate ) 22 March 2024
The bank shall retain original title documents of hypothecated house till complete loan account is satisfied by borrower(s) / titleholder of the house.
The bank shall recover outstanding amount by auction sale of the mortgaged house as per law.
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