How to Get Home Loan at GPA Property?

Under Indian law, a GPA does not transfer ownership. So, how to get a home loan on GPA property?

• Because there is no clear title or legally registered ownership in the name of the buyer/hypothecator, banks and formal lenders view GPA properties as legally insecure; they do not accept GPA-only properties as valid collateral for a home loan.

• Lenders require a clear, unambiguous title deed in the borrower’s name as collateral. GPA files fail this criterion.

• Legal ownership remains with the original owner. If challenged, the GPA can be revoked — making the lender’s collateral insecure.

• For these reasons, banks and most NBFCs refuse home-loan applications based solely on GPA property.

• Purporting a “home-loan on GPA property” through a standard bank loan is therefore often not possible in practice.

• If possible, get the property formally transferred (sale or gift) into your name, with full stamp duty, registration and title clarity. Once you have a registered deed, the property becomes acceptable collateral.

• Some firms position “GPA-property loans” not as home loans, but as personal or business loans, which do not require property title as collateral. These are unsecured and processed quickly.

• If you own a different property with clear title, you can use that as collateral (loan-against-property), then use the funds to purchase or build on the GPA property.

Because GPA transactions are legally risky, it’s wise to consult a real estate lawyer before proceeding. This helps ensure all paperwork (title chain, NOC, no encumbrances) is in order. Keep full documentation: identity, income proof, property history, and if using a different property as collateral, its clear title deed.

When my cousin considered purchasing a property via a General Power of Attorney (GPA), I assumed he would get a home loan easily. However, after researching how to get home loan on GPA property, I understood that it was not the same as purchasing a registered freehold property. Lenders view GPA properties as risky because the buyer does not have full ownership rights. I have shared the tips for getting a housing loan on the GPA property below.

How can I Get a Home Loan on a GPA Property?

The banks generally do not give loans directly in the name of the attorney under a POA. Instead, the legal owner (the principal) must be the borrower. In cases involving NRIs or people not physically present, the owner may appoint a POA (or GPA) to act on their behalf for documentation, signing, and follow-up tasks.

Therefore, to successfully get a home loan on a GPA property, the following steps (or conditions) are typically needed:

1. Ensure the POA is valid, stamped, notarised, and, where required, registered. 

2. The GPA must comply with legal formalities of the state (non-judicial stamp paper, notarisation, every page signed, etc.).

3. The property must have a clear title in the name of the original owner. Lenders must see that the property is legally owned (with title deeds, no disputes).

4. The POA document should explicitly empower the attorney to sign loan/mortgage agreements. It should authorise the agent to execute the necessary documents with the bank.

5. Submit all standard loan documents as per the rules. The bank must accept loan processing through POA. 

I hope you found this information helpful.

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

Wondering can we get home loan on power of attorney? In India, obtaining a home loan against a property held under a General Power of Attorney (GPA) can be more challenging compared to properties with clear titles or conventional ownership structures. But, it is true that a homeowner with a POA can apply for a house loan.

Can I Get Home Loan on Power of Attorney?

A GPA property refers to a property where the owner has given someone else the authority to manage or transact on their behalf through a GPA document. While some banks and financial institutions may be willing to consider providing loans against GPA properties, it's important to note that the process can be more complex and the terms may vary depending on the lender's policies and risk assessment criteria.

Here are some steps you can take to increase your chances of securing a home loan against a GPA property:

• Start by researching banks and financial institutions that are known to provide loans against GPA properties. Some lenders may have specific products or policies tailored for such cases.

• Ensure that the GPA document is legally valid and executed properly. Lenders will typically conduct a thorough legal verification of the property documents, including the GPA, to assess the title and ownership rights.

• Obtain a professional valuation of the property from a registered valuer recognized by the lender. The valuation report will help determine the loan amount that can be sanctioned against the property.

• Be prepared to provide additional documentation and information as requested by the lender. This may include details of the property, the terms of the GPA, the relationship between the owner and the attorney-in-fact, and any other relevant legal or financial documents.

• Demonstrate your ability to repay the loan by maintaining a good credit score and providing evidence of stable income and financial stability. Lenders will assess your creditworthiness based on factors such as your income, employment history, existing liabilities, and repayment capacity.

• Negotiate the terms of the loan, including the interest rate, loan tenure, and repayment schedule, based on your financial situation and preferences. Keep in mind that loans against GPA properties may attract higher interest rates or additional fees due to the perceived higher risk involved.

Consider seeking advice from a qualified legal expert or property lawyer who can guide you through the process and ensure compliance with legal requirements.

This is all about can we get home loan on power of attorney.

Read more

Hi. You can avail of a home loan on GPA property by visiting the sub-registrar and completing the property registration. I have mentioned the next steps in a detailed manner below. So, read along to find all the information to get loan approval against your property.

How to Get a Home Loan Against GPA Property?

If I speak for a general scenario, a home loan is not granted against a GPA property. But there is something you can do. Before I get there, I would like to share the meaning of GPA property. So, GPA or General Power of Attorney gives an individual the right to make decisions related to the property on behalf of its original owner. These decisions can be in the aspects of management, legal or financial.

Now, let me show you what is to be done to increase your chances of getting a home loan against power of attorney. 

1. Visit the sub registrar’s office and register your property.

2. You will have to pay a small fee, which will help in increasing your chances of getting a loan.

3. Once the registration process is completed, you need to go to a housing finance company to get your loan approved. You will have to carry your ID proof, property documents, income proof and any additional documents requested by the lending institution. 

This is how you can get a bank loan on GPA property. I hope this answer helps.

Hi there

You can get a loan against GPA (General Power of Attorney) property but at first you have to register that property at the sub-registrar office. The registration does demand some charge but that small cost can increase your eligibility against loan by 30%-40%.

After having the registration done, visit a HFC or other lending institutions and get your loan approved. Banks usually do not approve loans against GPA so it's better to visit a bank.

Just visit the financial institution with

• Identity proof

• Property documents

• Proof Source of Income and others as required and ask them to approve it

Hope this will work for you.