Gift deed with existing home loan

Querist : Anonymous (Querist) 28 February 2021 This query is : Resolved
Hello All,

Let me start with thanking you all for help. We bought a property in 2015 and I was not earning enough so we took home loan on my sisters name which was unmarried at that time. Now I that I have steady income and paying the EMIs. We decided to do property transfer and home loan transfer on my name. As the bank I submitted document for the home loan; however they are saying we need to represent you as a buyer and my sister as a seller and have to complete registration process like buying a new flat. We can not do a GIFT DEED as there will be no money transaction; bank can not approve a loan for me to repay the home loan going on my sisters name. So need suggestion if you have come across this kind of clients and what do you recommend? I don't want to pay 2Lakh again for registering the property on my name were gift deed just take 5K.

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Guest (Expert) 28 February 2021
Once the Bank Loan is Cleared you will have No Restrictions.

kavksatyanarayana (Expert) 28 February 2021
Yes. You shall repay the loan to the bank by getting hand loans from near & dear. Then your sister can execute a Gift deed in your favour. After registration of the Gift deed, you can mortgage the property to the Bank and then repay the amount to your near & dear who give you hand loans.

Querist : Anonymous (Querist) 01 March 2021
Yes. That’s also a sound plan

P. Venu (Expert) 01 March 2021
Please examine whether it is possible that your sister can gift the property with the condition that you are liable for paying the EMIs for the loan taken by your sister.

Dr J C Vashista (Expert) 07 March 2021
Just persuade the Bank to transfer the loan in your name/ account before execution of Gift Deed by your sister.
Otherwise, best option is to repay the loan and get the Gift Deed executed in your name.

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Gift deed with existing home loan

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