The procedure for return of original movable/ immovable property documents


A. Process for release of movable/immovable property documents to Legal heirs in case of demise of the Sole borrower or Joint borrowers:


1.    Branch to obtain certified copy of death certificate. Verify it with original.

2.    Obtain application to return the movable/immovable property documents of the deceased borrower(s), with full details of loan account(s).

3.    Obtain all KYC compliant documents of the Claimant. Verify the credentials of the claimant(s).

4.    Verify if the deceased borrower has given guarantee or offered the property as collateral for other persons’/firms’ loan with our bank. If, yes, we must inform (in writing) the claimant to clear the dues/liability of such other borrower including his/her/their own loan dues.

5.    Get the due amount paid in the Loan Account and ensure all the dues are fully paid to close the account.

6.    Obtain Indemnity-cum-undertaking from the claimant/s / legal heirs.

7.    Issue a letter of closure of loan account/No Dues of deceased borrower(s) to claimant and handover the documents against which loan was allowed to deceased borrower under proper acknowledgement.

8.    In case documents are to be collected from other branch (as is the case in the Branches in Dombivli are required to keep property documents under mortgage with Gograswadi Branch), inform Claimant in writing the tentative date of return of property documents.

9.    Arrange to collect the movable/immovable property documents from such other branch and deliver the same to claimant under proper acknowledgement.

10. File Charge Satisfaction request/form with relevant authority. Obtain the charge satisfaction letter and deliver to claimant under proper acknowledgment.

11. Branches must ensure that entire process is completed within 30 days from date of full repayment in loan account.  Since. if branch fails to deliver movable/immovable property documents to Claimant within 30 days after full repayment/closure of loan account, compensation at the rate of Rs.5000/- per day is payable till date of return of document & satisfaction of charge. 


B. Process for release of movable/immovable property documents to Legal Heirs In case when the Borrower/ Deceased borrower has given guarantee to other borrower or has offered his property as collateral security to other borrower (Third Party security):


1.    In cases where the deceased person has given guarantee or standing as co-borrower to other borrowers and has offered his security as collateral security, the property documents shall be released after the process of substitution of security/guarantee in that other loan account to the satisfaction of the Bank.


2.    Where the immovable property documents have been placed with branch/ central office other than the lending branch, in such cases the lending branch will ensure that they collect the documents from that other branch/ central office and deliver to the borrower/claimants within 30 days from receipt of full repayment.




C. Process for charge satisfaction:

1.    For Mortgages – intimation of satisfaction of charge to Registrar of Assurance, Letter to society for release of charge & Reconveyance deed.

2.    To CERSAI –  satisfaction of charge

3.    To RTO for removal of bank’s hypothecation charge for auto loans

4.    To Post /LIC Office with whom original charge was registered – Release of Assignment.


Annexure – I

Personal Loans:

Personal loans refer to loans given to individuals and consist of (a) consumer credit, (b) education loan, (c) loans given for creation/ enhancement of immovable assets (e.g., housing, etc.), and (d) loans given for investment in financial assets (shares, debentures, etc.).

Consumer Credit:

Consumer credit refers to the loans given to individuals, which consists of (a) loans for consumer durables, (b) credit card receivables, (c) auto loans (other than loans for commercial use), (d) personal loans secured by gold, gold jewellery, immovable property, fixed deposits (including FCNR(B)), shares and bonds, etc., (other than for business / commercial purposes), (e) personal loans to professionals (excluding loans for business purposes), and (f) loans given for other consumptions purposes (e.g., social ceremonies, etc.). However, it excludes (a) education loans, (b) loans given for creation/ enhancement of immovable assets (e.g., housing, etc.), (c) loans given for investment in financial assets (shares, debentures, etc.), and (d) consumption loans given to farmers under KCC. For risk weighting purposes under the Capital Adequacy Framework, the extant regulatory guidelines will be applicable.

Fair practices code 2003

Lenders should release all securities on receiving payment of loan or realisation of loan subject to any legitimate right or lien for any other claim lenders may have against borrowers. If such right of set off is to be exercised, borrowers shall be given notice about the same with full particulars about the remaining claims and the documents under which lenders are entitled to retain the securities till the relevant claim is settled/paid.