You must Sign In to post a response.
  • Category: Indian Law

    Can anyone misuse the land paper of a particular property


    Wondering if land documents can be misused? Searching for information about how to avoid this issue? Find advice from experts here.

    I have applied for a private loan of 20 lakhs but the person is asking me for the xerox copy of my owned land whose estimated cost is around 70 lakhs. Now I'm confused that I should give him the papers or not? Or whether he can misuse those papers or not?
  • #150296
    Why are you opting for a loan from a private party when you have own land. I advise you better go to a nationalised bank or a private bank and take a loan from there. You can hypothecate your property there. It is not having any risk. If you submit your papers the private party he may not misuse but he may try to trouble in future if you are not able to repay in time. The rate of interest here will also be more than in the banks.Giving land papers worth of 70 lakh rupees for a loan of Rs.20/- lakhs.It is not wise.
    drrao
    always confident

  • #150299
    Negotiation with respect to loan should not be made with a private party and that too submitting the land - paper totalling overRs 70,00,000 though a loan of Rs 20,00,000 is sought from your end. You cannot ascertain the intention of the person with which you are making a contract. In case of default of the loan, he may resort to any unfair practice and there are chances where you can be blackmailed in failure of making the payment of the loan - amount.
    Better go in to a Nationlised bank and negotiate a contract for the loan. You may get substantial relaxation in relation to terms of the loan. At least, you may not be required to submit the Xerox - paper of the land valuing to Rs 70,00,000 but it can be settled with the half of this amount. These banks maintain fair practices while dealing with their customers and so it is always safer in making a loan - negotiation with the Nationlised ones.

  • #150302
    The first I feel important to suggest is, it is better to avoid taking loan from a private party. You have any number of public sector banks and established private banks also.. Most banks have such loans which they give against the security of property. But of course, the purpose should be legal and right . Some banks give loan against property for consumption(any normal use like even family maintenance) and for social purposes like marriage, other rituals and ceremonies. Visit your bank fist and discuss with them frankly and thoroughly. They may guide you in this regard.

    Now, coming to the question of misuse, if the person is a popular or known person doing the private lending for long and there is no adverse report of cheating , then he may not misuse the copies . He may be needing it to verify and enquire at the registrar office, village office or to show to his lawyer to ascertain whether the property is alright and he can take it as security.

    But if the person is not known to you , and is not from your area and people do not know about him, then better not to take risk.We get to read many reports of cheating by misusing even copies of title deeds.

  • #150321
    Though they cannot misuse the land paper by using Xerox of any document, it is advisable to take the loan from a nationalising bank. There would be low-interest rate if you take a loan from a nationalised bank. You can also take the loan from any other reputed finance company but do not go to take the loan from the third private party. Any party which provide you loan will demand you the property paper and if it sold then they need last three registries of the paper. It is the formality and every bank or financial company will need it to sanction the loan.
    Honesty is the best policy.

  • #150334
    I'll suggest you to take a loan from any nationalized bank instead any third private party. Talk about land paper then no they cannot misuse xerox of your land paper so there is noting to be worry about. Why nationalized bank is because they charged low interest rate on loan compared to other private banks. So before apply for loan application do inquiry and compare interest rate by visiting websites. There are lots of websites by which you can compare loan interest rate and find out which bank giving loan in low interest rate.

  • #150335
    Thank you everyone of you for your valuable advices.. Thank you so much..

  • #150340
    Generally, the process of taking a loan from a nationalised bank takes time and full of procedures and due to this reason people go to private loan providers whose rates are on higher side. It is better to avoid these private parties and seek a loan from nationalised banks.

    Regarding the xerox copy of the land document, they can not misuse it but the contract for repayment of the loan should be properly drafted and should not have ambiguous clauses which the party can interpret in their favour later in case of loan default by you.

    If you take these precautions and use a lawyer to check the contract draft before signing, you will not have a problem even in taking a loan from a private party.

    Knowledge is power.

  • #150713
    If you have a property of Rs 70 lakhs, why do you want to approach a private person for a loan of 20 lakhs. If the loan you want and the property is within the framework of legality, then you can appraoch any bank.

    Private individuals give a loan quickly with a variable interest rates, although this appeals to many, the potential issues of fraud and fraudlent claims of non-payment, seizure of property and interaction with unruly people are high.

    Please approach the nearest bank, where you have an account, have the required documents in hand (land deed, IT returns, proof of identity, age, residence, nationality and emplpyment) you can avail the loan in due course.

    SBI has quick personal loans for various needs (https://www.sbi.co.in/portal/web/personal-banking/sbi-saral-personal-loan)
    For instance, ICICI advertises an express home loan in 8 working hours.(https://www.icicibank.com/Personal-Banking/loans/home-loan/express-home-loan-online-sanction.page).It also has instant personal loans upto 20 lakhs.


    Can anyone misuse the land xerox paper of a particular property?

    Any paper you submit has the potential of being misused for other similar guarantees in small places. If you are providing any document copy, please hand it over to the authorized person in the bank or government office. It is useful to state the purpose for which you are giving the document on each page and keep a copy of it with you. For example expert ask us to write clearly - document give for KYC purpose, given for DL purpose etc.


  • Sign In to post your comments