ron mumbai (a) 03 August 2021
Dr J C Vashista (Advocate) 04 August 2021
|Originally posted by : ron mumbai
|Property was in the name of deceased father and there is a bank loan on property with son as co-applicant. What if they want to transfer the bank loan to another bank. Father's legal heirs are: wife, son, 2 daughters. How to simply clear the ownership title, with minimum documentation and cost. There is no dispute between the legal heirs. What document should be executed to move transfer the legal property rights in least cost and faster timeframe.
Discuss with Bank if you are unable to clear outstanding loan amount.
Shashi Dhara 04 August 2021
If it is in instalments continue and discharge loan with consent of other lrs
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 04 August 2021
G.L.N. Prasad (Retired employee.) 04 August 2021
Just hunt for the bank that can offer to take up an existing loan. If the other bank is prepared to take over the existing loan, the process is simple. The other legal heirs can sign the memorandum and also offer a third-party guarantee in an individual capacity. As many banks have outsourced and have consultants, the agent will help in take over in a smooth manner without incurring any cost.
srishti jain 04 August 2021
According to the scenario you have mentioned,
Yes, you can transfer a loan from one bank to another. All of the heirs would need to initially consent to chalk out a methodology to clear the debt. In case there is debt towards the ancestral property, the debt will be paid, out of the property before it can be distributed.
The loan transfer process is simple. You just need to close your loan account first with the existing bank and then pay a transfer fee to your new bank. Your new bank will pay off the existing loan and you have to pay to the new bank in equated monthly instalments at a new rate of interest.
Once this is done, the property can be divided.
Hope it helps,