Home loan on power of attorney is usually denied by most banks and NBFCs, however there are a few lenders who give home loans against power of attorney. If your chosen agent according to the Power of Attorney applies for a home loan, he/she can get the mortgage loan or loan on your behalf but it should be noted that the agent is not liable to repay the loan personally, you will be responsible to repay the loan.
I would like to come back to the reason why home loan against power of attorney is denied by the lenders. As per the reports in 2011, Supreme Court of India said that the sale of property via a power of attorney won’t give ownership title to the buyer. The reasons stated for the same by the apex court is that the General Power of Attorney method of immovable property sales does not validate the transfer of property.
You may also want to check your home loan eligibility to get a better understanding of whether or not you will be able to get home loan for power of attorney. You can check it on NoBroker here,
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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.Reach Out to NoBroker’s Legal Experts if You Need Help in Drafting Housing Loan Application!Loan Against Power Of Attorney PropertyApplication 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.Take a Home Loan at Low-interest Rates from NoBroker’s Partnered Banks to Buy Your Dream PropertyRead more:What is revocation of power of attorney?What is power of attorney for property?This is all on power of attorney for home loan.
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.Hire expert lawyers to get your property documents verified
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:
The power of Attorney Holder should be an Indian resident.
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.
Photographs of the POA holder should be pasted and attested by executants and the maker of the POA.
A Judicial Magistrate or Notary Public must attest to the signature of the POA executants/makers.
POA executants/makers have their signatures on every page of the Power of Attorney.
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Can I get home loan on power of attorney?
Dheeraj
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March 18, 2021
2021-03-18T19:32:07+00:00 2023-07-18T21:16:17+00:00Comment
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