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SANDEEP AGARWAL   27 October 2019

Bank loan against property

My mother expired 18 years ago, till date we didn't filed for legal heir certificate. My brother took loan against the property belonging to my mother, till date the property is not transferred into heir... How can the bank gives loan to my brother against the property of my late mother. Without succession ,ans legal heir certificate, and without transferring the property. And suppose my brother failed to pay the loan to bank, does the bank have right to auction the said property? On what ground, the property is still registered in my mother's name and expired 18 years ago.


 12 Replies

Real Soul.... (LEGAL)     27 October 2019

If your brother has secured  aloan on the property belonging to someone else that is the fault of that fianacial agency who advanced such loan. 

However if ur brother does not pays the bank cannot calim from right on the property as a whole being in your mother's name though they can have lien on the property to the extent your brother has share.

YOu should instantly prepare for partition fo the property and seek legal heir certificate,don't delay any more. 

1 Like

Nilesh P   27 October 2019

Who is in possession of the property at present

SANDEEP AGARWAL   27 October 2019

Presently, the property is given on rent, and Iam taking care of the property since last 18 years. Monthly rent too I am taking .

SANDEEP AGARWAL   27 October 2019

Presently, the property is given on rent, and Iam taking care of the property since last 18 years. Monthly rent too I am taking .

SANDEEP AGARWAL   27 October 2019

Thanks for quick reply. We are 5 legal heirs, without our consent brother took the loan against the property.

SANDEEP AGARWAL   27 October 2019

Brother doesn't have share in rental income. But I taking care of the property.

SANDEEP AGARWAL   27 October 2019

Thanks for quick reply. We are 5 legal heirs including brother, without consent of 4 legal heirs, brother took the loan against the property. He made firged will of my mother, and according to will the bank has given him loan. But the will is forged, my mother didn't left any will. So all that property of my mother have to be divided into equal share. After taking the bank loan, my brother refuse to pay back the loan to bank... Bank served notice of demand otherwise legal procedure will carried out including auction of the above said property. The bank believed in forged will , and without transfer of property to my brother , without legal hier certificate, kept the original property document as collateral security and passed loan to my brother.

Shashi Dhara   31 October 2019

You legal heirs all of you four heirs were eating bun and banana from past 18years when your brother have approached any advocate for opinion.i think all four of you were not ready to spend some money to take advocates simply taking rent and enjoying so your intelligent brother has took the advantage of yours everything is in vain you have to spend much money time and strength to get honeymoon days have gone. if the property worth's more then secured loan all of you jointly sell it and clear the loan and share the excess amount if not leave it ,if you go to court you loose everything waste of time ,money ,energy ,power,you gain nothing.

SANDEEP AGARWAL   31 October 2019

Actually, we are 5 legal heirs, me my brother and 3 elder sisters, my all 3 sisters are not interested in all the property left by mother. Since 18 years, the property was taken care by me, my brother too have no interest in the property. The bank loan is recently taken without my consent. I was not aware as the document are with my brother. I came to know thought my tenants that some bank people came and inspected the property and later came to know that bank had already given loan on the property. Since the property value is 150 lakhs and bank loan is 50 lakhs. So I am looking for settlement with brother to sell of the property, share the amount equally and he pay off his bank loan. Otherwise I need to approach court.

Shashi Dhara   31 October 2019

All of you sit together and come to conclusion and after wards settle it amicably with well wishers and friends and relatives.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     12 November 2019

I presume that your brother availed the bank loan after the death of your mother. Your brother also has a share in the property as an heir. Hence that bank can a claim on the property to the extent of his share, whether the property was mortgaged to the bank  or not. Hence the bank can sue your brother to attach the property, to dispose it of, adjust their own claim from the proceeds and if any balance is left, give it to your brother to be shared among you.

Viraj   10 December 2019

One of the popular secured loans in the Indian market is a loan against property. Here, you need to pledge your property as security or collateral. Since you pledge your asset as security, their rate of interest is lower. They are also known as mortgage loans.

The interest rates levied depends on specific factors such as the loan amount applied as well as the loan type scheme along with other facets mentioned on the lender’s property loan agreement.

Let us take the example of HDFC Bank and understand the features they offer –

  • Indian residents, whether salaried or self-employed, can apply for the scheme.
  • The tenures are flexible, which is generally up to 15 years.
  • The documentation process is quick and hassle-free.
  • You can use commercial or residential properties as collateral for availing of loan against property.
  • The monthly instalment repayment options are simple.

Features and benefits:

  • Considering loan against property is a secured credit, the interest rates are lower. If you also hold a decent credit history and score, the interest rates drop further.
  • The documentation and approval process is a no-fuss process. The loan application goes through lesser scrutiny as they are secured loans.
  • Most of the property loans offer flexible repayment options. Based on the lender you can choose; you can avail a property loan for a tenure up to 20 years.
  • In case of the mortgage loans, the ownership of the property remains with the borrower. When you offer the property as collateral, the ownership does not change, unless you default, and the lender sells the property.
  • You have the option to pre-close the property loan, especially if you opted for variable interest rates.
  • If you apply for a loan against property by offering collateral, you receive a loan amount at par with the property value.

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