SBI do not have any policy to takeover Loan against property – Strange!

POSTED BY Roop Narayan ON May 23, 2013 4:59 pm COMMENTS (6)

I have applied for takeover of my ongoing housing loan in LICHFL to SBI. In LICHFL, I have two other loans in the category of Home entity loans which are actually loan against property(LAP). Generally, private sector banks have policies to takeover all such loans, ie, they process the takeover of housing loan, and simultaneously they go for taking over the LAP in LAP category. But, SBI returned my proposal stating that SBI do not have any policy to takeover LAP of other financial institutions. I am sure there are hundreds of thousands of such borrowers who took housing loans and LAP on the same property, but with such a policy of SBI, they just can not switch over their loans to SBI.

Any views suggesting any guidelines of SBI to deal with such cases, or some other ways to get the matter settled? Please respond.

6 replies on this article “SBI do not have any policy to takeover Loan against property – Strange!”

  1. Dear Roop, Home Eq. ‘ll be available to you only after 12Msuccessful track record of EMI repayment within SBI.



  2. Syamantak says:

    You may like to check with the SBI officials on your eligibility of Loan in Home Equity

  3. Roop Narayan says:

    Dear Ashal,

    I managed to closed the loan against property with LICHFL by arranging funds from my own sources. Now, I have only housing loan pending with LICHFL. I think, now SBI won’t have any problem taking over the housing loan.

    However, the next question which comes in mind is whether SBI will sanction me additional loan in Home Equity Product within a month after sanctioning and disbursing home loan (takeover from LICHFL) as Home equity eligibility criteria states home equity loan will be sanctioned to those home loan customers after viewing repayment track record of 12 months.

    – Roop N

  4. Dear Roop, SBI ‘ll not entertain such thing. Better to consolidate your loan & LAPs with any other lender like Axis bank or IDBI.



  5. Roop Narayan says:

    Dear Ashal,

    I am having a housing loan with LICHFL, and two LAP from LICHFL on same property. ie, all the three loans on same one property.


    Roop N.

  6. Dear Roop, I’m unable to understand your query. Are you having 3 loans for 3 properties or 3 loans for 1 property? Can you elaborate it?



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