Can I get Home Loan on Power of Attorney?

[widget_homeLoan_checkEligibility_form]

A Power of Attorney (POA) can be useful if you're unable to manage real estate transactions in person or are residing overseas. But can we get home loan on power of attorney? In India, homeowners, particularly non-resident Indians (NRIs), may apply for home loans through a POA under specific circumstances, even though banks do not issue home loans directly to POA holders.

Can I Get a Home Loan on Power of Attorney?

If you own the property, you can apply for a home loan through POA, particularly if you are an NRI or Person of Indian Origin (PIO). 

Banks, however, demand that the: 

1. POA holders must be Indian residents residing in the country. 

2. The POA needs to be notarized, signed by the executor on each page, and executed on non-judicial stamp paper of suitable value. 

3. The photograph of the POA holder, confirmed by both parties, must be included. 

4. The signatures must also be confirmed by a Notary Public or Judicial Magistrate.

As each bank has different requirements, it’s best to verify the lender's POA format and paperwork requirements in advance.

Get Fast Approval and Quick Disbursement of Home Loan Via NoBroker Home Loan Service

Let me make this clear, you cannot get a home loan on power of attorney. I checked out the answers written by Mr Narayandas and Mr Sarthak. And what they mentioned is correct. I had some confusion and after reading their posts my doubts were fully cleared. But still, I will share some insights on power of attorney home loan.

Power of attorney loan against property:

The bank won’t provide a direct loan to the Power of Attorney. But if you are an owner you can apply for a home loan through a power of attorney. NRIs generally get loans approved through this method. However, the eligibility criteria for power of attorney for bank loans in India varies. There are different criteria in different banks. Let me share with you what is the eligibility criteria for SBI Home Loan Power of Attorney.

If the Power of Attorney is executed by NRI/POI here are the criteria that should be met:

1. The power of Attorney Holder should be an Indian resident.

2. Power of attorney should be executed in the prescribed format on a non-judicial stamp paper of appropriate value in the state where it is executed and duly notarized.

3. Photographs of the POA holder should be pasted and attested by executants and the maker of the POA.

4. A Judicial Magistrate or Notary Public must attest to the signature of the POA executants/makers.

5. POA executants/makers have their signatures on every page of the Power of Attorney.

I hope you understand if the power of attorney home loan is eligible or not.

Read more:

I was also thinking about getting a home loan on power of attorney, I can tell you what I learned when I did my research on power of attorney for home loan.

Power of Attorney (PoA) is basically a document that gives power and permission to your chosen agent, such as to get a home loan or buy a property. When this agent gets a loan or mortgage on your behalf, the agent isn’t personally liable for the debt, but you are.

The concept of PoA has been discussed under the two laws in our country: the Indian Stamp Act, 1899 and the Powers of Attorney Act, 1882.

As Narayandas rightly mentioned, most banks and NBFCs deny home loans on power of attorney. However, there are a couple of lenders that might give you a home loan on PoA.

I hope now you have the answer to your query on “can we get home loan on power of attorney”.

I also want you to know that the Supreme Court has stated that only registered sale deeds give any legal holding to property transactions and any property transaction that is done through general power of attorney (GPA) doesn’t have legal sanctity.

Application for a loan against property is approved comparatively easily in banks if one does not put GPA property as a mortgage. Otherwise, it gets very difficult to get a loan against GPA property.

This instrument is generally used by NRIs (non-resident Indians), as it may not be possible for them to come to India at a given time, because of their businesses or personal reasons. Thanks to the convenience it offers, a PoA is very helpful for busy people like businessmen and people who can’t perform several professional and personal tasks.

I hope now you know everything about power of attorney loan.

Read more:

This is all on power of attorney for home loan.