Loan Against Property

POSTED BY CL RAO ON November 15, 2012 4:16 pm COMMENTS (4)


In case of Loan against Property, can somebody help me in understanding the process that lending institution (Bank) will opt in a scenario when a person is unable to pay back laon in stipulated timeframe?

Is court involved & can court provide a stay on the mortgage of property if genuine reasons are presented.

are there any exceptions where the mortgage of property can be avoided … & the delay in payment is accepted by bank ?




4 replies on this article “Loan Against Property”

  1. CL RAO says:

    Guys … Pls Help. waiting for the details

  2. CL RAO says:

    Thanks Manish & Biswa …

    a small case .. lets assume LAP is worth 1CR, with 80L still pending to be paid back. Now a House is (worth 1Cr) given as a guarantee against the loan … what will be outcome of following scenarios :

    1. In case of liquidation — will it undergo bidding price ?
    2. What if Bidding price is more than loan amount ? (in above case e.g. 1.25Cr) where the liability was only 80L … Will Bank keep the entire amount ?
    3. what if auction doesnt result in required amount … the base price might be 80L but if no bidder is there … what will Happen.

    Aside, while everthing will happen wrt agreement, Just wanted to understand … the normal workflow in case of non payment.

    If anybody could give details on that ..Hope one of readers here is a property Lawyer 🙂

  3. Loan against property is very simple, you are taking a loan and keeping some property as the guarantee , so if you cant pay off the loan in any case, the property will be liquidated .simple concept .

    Rest all the points will be mentioned in the agreement .

  4. Biswa Singh says:

    Please check this link below. It may help you but you need to consult a property lawyer to better understand the legal aspects.

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