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to get the security of agricultural loan back


the security(gold) that produced in SBI in the case of agricultural loan were not returned because of the one of legal heir of deseased were not ready to sign. to get the security back what are the evidence or documents needed to submit to get letters of administration or a succession certificate from the court?
 
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Lawyer

Originally posted by : ANJU P V
the security(gold) that produced in SBI in the case of agricultural loan were not returned because of the one of legal heir of deseased were not ready to sign. to get the security back what are the evidence or documents needed to submit to get letters of administration or a succession certificate from the court?

Where is such a Bank who have retained gold as "security" for agriculture loan ?

 
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Retired Manager

The original borrower who took the loan expired and jewellery is still with Bank. 

Point here is that the jewellery is in physical form and bank cannot give your share and be absolved. Further, claim settlement cannot be in parts. It should be in one shot.

 

Solution is claim settlement  duly convincing the legal heir  who is refusing to sign. Have a family meet with elders to counsel the person duly making it clear how the jewellery or the value thereoff shall be shared as per the law or the Will if any written by the deceased.

During the counselling he has to come out the reason why he does not want to sign. Explain and try to convince him as noted above to co-operate.

If counselling fails, depending upon the value of jewellery, a case may be filed in a Court with he help of a reliable Advocate against the legal heir for not cooperating to get the jewellery out from the bank duly explaining the loss to other legal heirs and wait for the verdict whenever it comes.

 

 

 
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Retired employee.

The bank can only guide you depending on the quantum of value of gold ornament and considering the ultimate amount after adjustment all dues.  In all probability, the bank may insist for a succession certificate only.  The advocate that takes the case for getting SC will give more details about the documents that are needed for getting SC from competent court.

 
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Lawyer

I respectfully differ as for an agriculture loan it is the land which is being mortgaged by Bank/ financier but not gold as stated by the author.

Presumption and assumption would digress the subject. 

 
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Retired employee.

Security is different from sectorial lending.

If one applies and avails all loans, he maybe not having any other source for availing any type of loan or some accounts may be in default then he may apply for a gold loan, and classification is done as agricultural depending on the end-use,  In villages, agriculturists may not be having title deeds of passbooks and banks may not advance for lessees though they have to invest the amount for such agricultural operations..

Keeping gold as security any type of loan including overdraft in the current account can be allowed.

Every bank has to make priority sector lending up to 25%+ to the priority sector.

Banks to reach their target disburse gold loans and classify them as agriculture to reach their targets.

Even Big Industrialists and top officials use the gold loan for agriculture as the rate of interest is 10% and for personal it is over 17.5% and self-declaration is enough.

Though this specific topic is not relevant to the query clarification is provided for information..

 
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Retired Manager

Scheme of Agriculture Gold Loans has been there for decades in all Banks, especially the rural branches of Banks. The scheme is still there.  Among the Gold Loans (can be given for non-agriculture purpose too), loans given for the purpose of Agriculture are classified under Direct Finance to Agriculture and counts under Priority Sector Finance.  

There is no presumption involved as the question is perfectly understood and therefore there is no digression of the subject.

In the instant case, Borrower availed the loan, pledging gold jewellery and he expired before the pledged gold ornaments could be released by the Bank to the borrower.

 
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