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.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today