Intellectual Property Rights: Practice and Drafting by Adv Gautam Matani. Register Now!
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Jayaraman S (Manager)     03 November 2009

Bank Loan

Dear All,

Every bank is doing legal verification before dispursing the loan amount to client and we the borrowers believe that since the bank verified the property there won't be any problem.  Since one of my welwisher told me that now a days bank are looking the repaying capacity of the borrower rather than the legal portion.

My doubt is say for example after some time some one else cliam that the property is his own means, who will be the responsible person to get it settled. Do we need to still pay the EMI or bank will be taking care of it since they already checked the legal portion.




 2 Replies

Raj Kumar Makkad (Adv P & H High Court Chandigarh)     03 November 2009

The verfication of hte property by bank through its own persons is just for the purpose of bank's purpose and by doing this process, bank do not issue any certificate in favout of the borrower that the property is beyond any dispute or is having no incumerance thereon. In case any other persona claims any share, as you told, is the rsponsibility of the borrower to deal with becuase bank has not given any assurance to the borrower rather bank is also entitled to insist the borrower either to retun the latest loan amont or provide any other property for mortgage in such matter..

1 Like

Jayaraman S (Manager)     03 November 2009

Hi Raj

Can we consider the up to date EC as well as the copy of the docuement as a proof before buying any property. 

Can anyone able to change the copy of the document which is lying in registrar office.


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