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SURAJ VISHWAKARMA (ACCOUNTANT)     28 January 2022

Financer not giving disbursed cheque

Sir, My Home loan cheque was disbursed on 04 Dec, 2021 loan account created and first EMI for the same has been debited to my bank account on 05 Jan 2022 but Financer has still not given me home loan cheque as yet and says there's pendency of documents.

Is it legal to collect EMI without having given home loan cheque? What are my legal rights on the same? Also if i can provoke home loan agreement? Kindly advise!


 6 Replies

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     28 January 2022

No, Immediately issue a legal notice to the financier.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     28 January 2022

In certain cases when the full loan amount is not disbursed, one has to pay only the interest on the disbursed amount. This is called pre-EMI. EMI generally consists of repayment of two components – interest and principal amount. However, pre-EMI consists only the interest component. Note that pre-EMI does not affect the outstanding loan amount as principal is not paid.

Pre-EMI is generally applied to under-construction projects for home loans. However, in case there is a delay in possession or completion of the project, the borrower will need to pay pre-EMI unnecessarily. Once the construction is completed, the borrower will need to pay regular EMIs which would be interest + principal.

G.L.N. Prasad (Retired employee.)     28 January 2022

But the question here was EMI debiting without giving said cheque and disbursing without completion of document formalities.  The General rule is that amount should be disbursed only after full completion of documentation part unless waiver or request for a delay in submission of documents that are not significant.  Please go through the agreement copy and keep such a copy and file a simple complaint about deduction of EMI only after disbursal of the amount, as collecting the EMI without disbursement (Financier is enjoying the funds and not parted-Borrower has not enjoyed the sanctioned limit as no disbursements were made) is a serious deficiency of service.

(to me it appears as window dressing of balance sheet for that Dec,21 quarter to reach credit budget increase interest income, and to boost profit.

Dr J C Vashista (Lawyer)     29 January 2022

You have stated, inter alia, "My Home loan cheque was disbursed on 04 Dec, 2021 loan account created and first EMI for the same has been debited to my bank account on 05 Jan 2022 but Financer has still not given me home loan cheque as yet and says there's pendency of documents..."

Whether financier was to issue cheque or you were issue cheque for EMI?

Vague and confusing facts can not lead to form proper opinion and oblige.

 

SURAJ VISHWAKARMA (ACCOUNTANT)     29 January 2022

Sir ..Financer has issued home loan cheque but did not hand over to me for further submission to seller. My first EMI has been debited in bank vide ECS.

G.L.N. Prasad (Retired employee.)     29 January 2022

File simple application to the financier,  

1. Please provide me the acknowledgment for the cheque issued to..................after disbursement of ..............loan.

2. Please inform the laid down policy for deduction of EMI even without delivering the cheque.


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