Prakash 19 October 2017

Mod cancellation regarding

Dear Sirs,

I registered an MOD with HDFC bank for 21 lakhs to buy a land on March 2017. I paid 12500 MOD charge + 5150 registration charges for that. Now I am going for an add up loan of another 29 lakhs with the same bank branch for the construction of building. HDFC bank says I need to cancel the earlier MOD and register a fresh MOD of 50 lakhs. That cost around 25000 rs + 5150 reg charges. My doubt is I have already paid MOD charges for land and the land is in mortgage with the same bank. So why should I pay the MOD charges again for the total value of 50 lakhs ? is it possible to add up the loan value of 29 lakhs with the existing loan without cancelling the existing MOD ?

Thanks,

Prakash

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2 Replies

G.L.N. Prasad (Retired employee.) 20 October 2017

Normally, bank can insist only for the additional limit of loan sanctioned over the existing limit. File this as greivance in their on line website and seek clarification and copy of such directives of HDFC. The query can be simple and may be formed as follows:

Please inform whether borrower has to cancel the existing registered MOD , whenever additional limits are sanctioned in future. Kindly provide the laid down procedure in the Bank . The following is the fact on which the clarification is being sought.

Facts:

I registered an MOD with HDFC bank for 21 lakhs to buy a land on March 2017. I paid 12500 MOD charge + 5150 registration charges for that. Now I am going for an add up loan of another 29 lakhs with the same bank branch for the construction of building. HDFC bank says I need to cancel the earlier MOD and register a fresh MOD of 50 lakhs. That cost around 25000 rs + 5150 reg charges. My doubt is I have already paid MOD charges for land and the land is in mortgage with the same bank. Paying the MOD charges again for the total value of 50 lakhs brings additional burden on borrower. The registration for MOD can be done on add up the loan value of 29 lakhs with the existing loan without cancelling the existing MOD .

Read more at: https://www.lawyersclubindia.com/forum/Mod-cancellation-regarding-155221.asp