Atul Kumar Khare (Service) 25 September 2024

Banker asked to submit original sale deed against running home loan taken 18 years before.

I had obtained home loan from a bank for purchasing a residential plot, and building a house on it about 18 years before. The loan was for a tunure of 25 years, of which 7 years repayment is remaining. Repayment has been regular since beginning as the same was deducted from my salary account.

Recently, the bank asked me to submit the original title deed or sale deed of my plot (land), which I had already deposited with the banker, but the banker had not given any receipt or acknowledgement for the same. Now the bank is saying that I had not deposited the original sale deed, thereby violated the loan agreement, qualified for the penalty. Please advise. Is the limitation act is relevant in this case?

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Quick Summary

A homeowner who took out a home loan 18 years ago, with 7 years remaining on the repayment term, has been asked by the bank to submit the original sale deed. The homeowner claims the deed was deposited with the bank at the time the loan was granted, but no receipt was provided. The bank is now alleging the deed was never submitted, potentially leading to penalties. Advice suggests issuing a legal notice to the bank, highlighting the loan's regular repayment for 18 years and the bank's likely possession of the deed before sanctioning the loan, and recommending consultation with a lawyer.

2 Replies

T. Kalaiselvan, Advocate (Advocate) 25 September 2024

On the basis of the evidence for loan and the loan agreement papers, you can issue a legal notice to the bank stating that they have already obtained the title deeds and have granted the loan only after the title deeds were depostied with them and moreover as the loan repayment was regular for all these 18 years, you canot be responsble if the bank has lost the original title deed.

You can consult a lawyer and issue a legal notice accordingly

1 Like

adv. rajeev ( rajoo ) (practicing advocate) 12 May 2026

Before releasing the loan, bankers will obtain the original sale deed, without original sale deed they will not sanction the loan.

Moreover along with Legal opinion by the panel advocate original documents will be submitted to the bank. go thru., the Legal Opinion which is submitted to the bank. You can also insist the banker to go thru., legal opinion.

If you have already submitted the original sale deed to the bank, you can say it to the banker. It is better to check the Legal opinion before doing anything.