Not in a position to pay Home loan

Hi,

Thanks for immediate reply. We didn't take insurance while taking the loan.

Thanks.

in that case if u dnt have an insurance policy and u are unable to pay a loan just talk to bank for the reassesment of the loan with the possible emi u can pay , if u cant pay anything u can ask the bank to provide u a resonable time to sale the property , u can do so and pay the bank the amount outstanding and rest will be yours and invest  in the new home which u  can afford .

but make sure u do have a insureance cover , we are talking about the insurance against u r property for which u are not suppose to pay any premium that included in the emi bcause from last 15 years banks does not provide loans whithout taking insurance cover , so it should be there talk all the papers of u r aggrement deed and emi bifurcation  u will get it from there and if there is insurance cover u are not suppose to pay anything the bank will recover whole the outstanding amout from the insurance company

Hello Ramsinghania sir,

Just please clarify my doubt. If i ask for the time to sale the property, then what the bank will give the option:

1.They will collect all the stopped months EMI's also after the property is sold. means interest on the emi amount also.

                                                                          (or)

 2. Only the principal amount.       

I don't have any idea about property issues and loans.

Thanks.

yes they will deduct all the EMIs amount with their respective interest

Bank will collect all unpaid EMI as on date of settlement and remaining principle amount along with prepent penalty charges, which are generally 1-2% of unpaid principle amount.

You can't  sale ur property without no dues certificate from bank.

as the bank will stop all the emi now the day when they give u the option to sale the property and pay the amount they will charge u the intrest for the period they provided , its upto bank to bank which differes genreally on the basis of  personal status and relationship with bank , they will collect the amount outstanding and the intrest again when u will sale the property might be u dnt get the right price as everyone is sure about u r need so take care when u make the final deal , but once again i will tell u to check out all the papers bcause there is a clause of insurance , ask the bank people and before making final decision check it put with a proper person bcause though u dnt have the insurance then even there is some clause in the agreement and if any such clause is there u can get ride of paying anything to bank even if bank dnt allow or dnt take the insurance we can move to consumer court so plz plz check all the papers before making any furture decision and its sound hard that u lost u husband but now u need to take care of u r self and u r child so make sure the decision u take that will not make u to regret later bcause every now and then bank had not taken the insurance which they are suppose to take and u need to pay for there mistake bcause as u r a house wife there must be a insureance as u r hubby is only person who is suppose to pay for emi when he is no more bank make the substitue for it which if  they dnt provide they need to pay for it and not u so before making a decision just check out each and every paper carefully and take the help before talking to bank so if u dnt able to understand the documents some one will do it for u

bank will not collect the penal intreast in such a cases mr.vikas kumar

@ Ramsinghaniaji

Penal Interest @ i mean to loan prepayment penalty. All bank carges loan pre-payment penalty.

u r right that penal intrest is charge when u make the prepayment of the loan amount but when a death or some unavoidable cause take place bank never charge the penal intrest , its the pre condition as provided by rbi in its guideline so in such case penal intrest is not charge and again a relief is suppose to be provided depending upon the relationship and the stauts of account like they are regular in payment of emi till hubby is alive then they will get releif upto 25% of the intrest charge and so on

Hii Swathi,

So far an Insurance clause is concerned with the loan, most of the Bank makes it a pre requisite for the loan. So same must be the case with your loan too.

For other Rules regarding Housing Loan, following may be useful to you.

Options with the Bank if Customer can pay any amount:

Reschedule your debt: After having analyzed your financial position, if the bank feels that the quantum of EMI is what is troubling you, they may be willing to reschedule your debt by extending the loan tenure. That will bring down the monthly EMI commitment, though it will mean more interest outgo in the long term. However, you should consider the immediate relief it can bring to your current situation. When the tide turns and you are facing better times you can try negotiating with your bank and revert to your old or higher EMI or even prepay your loan, closing it early and saving excessive interest outgo if it makes sense post the pre-payment penalty.

Deferring the payment: If your financial situation is such that there is likely to be a jump in cash flow going forward because of any reason, you may seek temporary relief from the bank for a few months. The bank may permit the same but may charge penalty for not paying within the time frames agreed upon earlier.

Restructuring the loan: Banks have a provision for restructuring the loan e.g. terms of extending the tenure of the loan. For the same, the bank must perceive the reason of default to be genuine. The Reserve Bank of India (RBI) has issued guidelines on the same. For. e.g. the loan tenure can be increased by not more than 1 year in most cases. Foreclosure by selling the collaterals with the borrower’s co-operation is also advised as the next step.

Option with the Bank if Customer can not pay any amount:

 If none of the above options work, the bank after giving you time for repayment will go in for repossession of the asset for the purpose of recovery of dues.

Procedure Bank would adopt:

A notice will be sent to the borrower.

This can be done only after the loan is classified as NPA as per the

guidelines set by RBI

The customer will be allowed 60 days post issuance of the notice to regularize the account or come forward to settle the account.

If the borrower refuses to pay, then the authorized officer will ask for the physical possession of the property by handing over the demand possession notice to the borrower.

The Bank shall proceed with the auction of the attached property post 30 days of taking possession of the property, in the event, that the customer does not come forward and settle the loan. The Bank shall send the customer a letter intimating him, of the venue of the sale indicating date and time of the same.

The bank will consider handing over possession of property to the borrower any time after repossession and before concluding sale transaction of the property, provided the bank dues are cleared in full.

Any Excess Amount obtained after adjusting the dues on the loan will be refunded to the borrower.

In our sanction letter they mentioned there will be 2% on amount prepaid. Means Sir as you said they won't charge any amount when i clear my loan.

we started paying EMI only from August till now. Will they consider for the deduction of 25% of the interest  in my case.

Hello Sunil,

Thanks for your reply. We took loan from ICICI bank. With me only the loan sanction letter is there. In that they mentioned only about first applicant will benefit from a free personal accident insurance. And i am scared for adoption of the property by bank. Now how do i know whether the is providing insurance or not.

Thanks.