Need RBI DIRECTIVE related to loan disbursement on part property

[ercse.ankitjain]

I applied for loan with IDBI bank in june 2024. It was a construction loan and i own part property, means original plot size was 3960 sq. ft then in 1996 I bought 1960 sq. ft out of 3960 sq. ft. I have certified copy of registry and original sale deed is with my neighbour. IDBI bank told me to get the documents verified with advocate, i gave all the documents to advocate and he scanned all the documents. Loan got sanctioned however they did not disburse loan and asking me to submit original sale deed which my neighbour has to disburse the loan, which I think weird as no one will keep their origianl registry with bank so that neighbour can get loan on the part of the property they owned.

After registering complaint with RBI against IDBI branch they shared legal report submitted by advocate. There it was mentioned that bank will keep original title deed for loan disbursement.

Can anyone help here with legal options i can take against IDBI bank.

By the way I applied for loan with HDFC bank which got disbursed also. I wonder why HDFC didn't ask to keep original sale deed.

 

[TaxWiser]

I applied for loan with IDBI bank in june 2024. It was a construction loan and i own part property, means original plot size was 3960 sq. ft then in 1996 I bought 1960 sq. ft out of 3960 sq. ft. I have certified copy of registry and original sale deed is with my neighbour. IDBI bank told me to get the documents verified with advocate, i gave all the documents to advocate and he scanned all the documents. Loan got sanctioned however they did not disburse loan and asking me to submit original sale deed which my neighbour has to disburse the loan, which I think weird as no one will keep their origianl registry with bank so that neighbour can get loan on the part of the property they owned.

After registering complaint with RBI against IDBI branch they shared legal report submitted by advocate. There it was mentioned that bank will keep original title deed for loan disbursement.

Can anyone help here with legal options i can take against IDBI bank.

By the way I applied for loan with HDFC bank which got disbursed also. I wonder why HDFC didn't ask to keep original sale deed.

It sounds like a frustrating situation. Here are some steps and legal options you can consider to address the issue with IDBI Bank:

Steps to Take:

1. Review RBI Guidelines: Ensure that IDBI Bank's request aligns with RBI guidelines for loan disbursement. According to RBI guidelines, banks typically require original title deeds for securing loans.​

2. Seek Legal Advice: Consult with a legal expert who specializes in property and banking laws. They can provide specific advice based on your situation and help you understand your rights.​

3. File a Complaint with the Banking Ombudsman: If you believe IDBI Bank is acting unfairly, you can file a complaint with the Banking Ombudsman. This is a quasi-judicial authority set up by the RBI to resolve customer complaints against banks.​

4. Submit a Written Complaint to IDBI Bank: Draft a detailed complaint letter to IDBI Bank's grievance redressal cell. Include all relevant documents and correspondence. Request a written response explaining their requirement for the original sale deed.​

5. Escalate the Matter: If the issue remains unresolved, escalate it to higher authorities within the bank or seek intervention from consumer protection forums.​

Why HDFC Didn't Ask for the Original Sale Deed:
Different banks have varying policies and risk assessments. HDFC might have different internal guidelines or a more flexible approach to handling part-property loans. It's also possible that HDFC found the certified copy of the registry sufficient for their requirements.

(Source: Conversation with Gemini AI)

 

[ercse.ankitjain]

Where i can see RBI guidelines. Please share the documents if you have else share link from where i can download the documents.
I already complaint with IDBI till that time they were not sharing any document with me, only after compalining with RBI they shared legal report prepared by advocate. In that report it was mentioned that bank will keep original sale deed for disbursement. My relationship manager was already aware that i don't have original sale deed, only certified copy i have.

I think it's a scam to earn few thousand rupees as part of loan process and don't disburse the loan.

Let me know if anyone has some other thoughts on this.

 

[TaxWiser]

Where i can see RBI guidelines. Please share the documents if you have else share link from where i can download the documents.
I already complaint with IDBI till that time they were not sharing any document with me, only after compalining with RBI they shared legal report prepared by advocate. In that report it was mentioned that bank will keep original sale deed for disbursement. My relationship manager was already aware that i don't have original sale deed, only certified copy i have.

I think it's a scam to earn few thousand rupees as part of loan process and don't disburse the loan.

Let me know if anyone has some other thoughts on this.

You can find the RBI guidelines for loan disbursement on the Reserve Bank of India's official website. Here are the steps and a direct link to access the relevant documents:

1. Visit the RBI Website: Go to the [RBI Master Circulars page]​

2. Search for Housing Finance Guidelines: Look for the Master Circular on Housing Finance, which consolidates all instructions and guidelines issued to banks regarding housing loans.​

3. Download the Document: You can download the circular directly from the website for detailed information.​

Regarding your situation with IDBI Bank, it's indeed concerning that they did not share the necessary documents until you filed a complaint with the RBI. The requirement to keep the original sale deed for loan disbursement is standard practice, but it should have been communicated clearly from the beginning.

Steps You Can Take:

1. Consult a Legal Expert: Given the complexity of your case, consulting a legal expert who specializes in property and banking laws can provide you with specific advice and help you understand your rights.​

2. File a Complaint with the Banking Ombudsman: If you believe IDBI Bank is acting unfairly, you can escalate the matter to the Banking Ombudsman. This is a quasi-judicial authority set up by the RBI to resolve customer complaints against banks.​

3. Submit a Written Complaint to IDBI Bank: Draft a detailed complaint letter to IDBI Bank's grievance redressal cell, including all relevant documents and correspondence. Request a written response explaining their requirement for the original sale deed.​

(Source: Conversation with Gemini AI)