Bank not releasing mortgage paper after repayment of loan. What to do?

113 votes

First of all you have not mentioned the entire facts of the case. Further, on Rs 100 Stamp paper stating that your property will be the banks' is not the proper procedure. Usually, banks while offering a loan will keep the original title deeds of property or would require a Guarantor.

If the last EMI and all outstanding dues have been paid, then you need to write a letter to the bank requesting a return of the original documents.

The bank will return your original documents and issue a closure letter stating that there is no outstanding amount. It will also give a N.O.C stating that it no longer has an interest in the property.

If mortgage has been registered, then the no- objection certificate needs to be taken to the Registrar’s Office to get the lien removed. The borrower and a representative of the bank need to be present for this.

However, if the mortgage is not registered, the bank will simply returns the title deeds.

In case the bank fails to return the said document, we suggest you to engage an advocate who after examining your document, who may also suggest you the further course of action.

Kindly contact us for any further details and action.

LawRato LawRato

106 votes

The RBI has stated that if the lender fails to provide the borrower with reasons for a delay, such as a delay in providing the original documents of immovable or movable property, or failure to submit the charge satisfaction form to the registry within 30 days of full repayment of the loan.

Advocate Chikirsha Mohanty LawRato