Civil Procedure Code (CPC)

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Govind   21 May 2016

Education loan against property

Hello fellow members,

I seek an advice regarding an Education Loan. I am a doctor by profession , I have an offer to study abroad (US) and I am earnestly interested in it. I have a sound academic background and seek education loan.

Since the loan amount exceeds 30 lacs, the bank wants a co-signer plus the property papers. The problem is that I have an apartment in a co-op society for which I have a share certificate and not the registry papers. 

Can this share certificate be given to the bank as a security?
If not what can be done in this case to present the property as a security?

I'll be greatly thankful if anyone could guide me.

Thank you

Best Regards

 9 Replies

siddhartha sinha   22 May 2016

Yes. Share certificate in a housing society is equivalent of title deed. When you take a loan it will be deposited with the bank . It will be advisable to go through the bye-laws once to find out any rules to or against this effect.

G.L.N. Prasad (Retired employee.)     22 May 2016

Have you not informed the bank and sought their opinion as to whether they can accept such society certificate as title deed for equitable mortgage ?

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     22 May 2016

Please go to the bank where you wish to take the loan and they shall verify the documents through their Panel Lawer and inform you. Follow the procedure. No point wasting time of this forum and your time posting questions in the wrong place.

Kumar Doab (FIN)     22 May 2016

The Bank is under obligation to provide the loan brochure, loan application, loan approval, loan agreement,loan statement etc......................and authenticated copies of each document signed by borrower, and loan declinature if any.

The Loan Officer/section of the bank, BM is the right person to discuss.



P. Venu (Advocate)     22 May 2016

It is doubtful whether share certificate could be taken as substitute for document of title.

G.L.N. Prasad (Retired employee.)     22 May 2016

Because the reply was provided by an expert, it has to be accepted that it must be a valid document of title.  But, as a Banker, none of the controlling authorities are agreeable in normal circumstances to take only Society share certificate as title deed.

T. Kalaiselvan, Advocate (Advocate)     27 May 2016

Share certificate is not a title document.

Bank is not obliged to grant loan on the basis of share certificate.

A share certificate is issued by the society or the apartments association and it is not a registered title document to prove one's ownership to the property.

The marketable title to the property can be established only by a registered sale deed document in possession of the borrower in his name.

The bank cannot recover their debt in the event you default the repayment on the basis of share certificate.

What happened to your sale deed document, how come you are not having title deed document but are having share certificate? 

Kumar Doab (FIN)     27 May 2016

The querist need to revert to experts.

Govind   30 May 2016

Thanks alot for the suggestions and feedback.


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