Loan Zone
S.C. Dhall
Loan cancellation
Q. Can a bank cancel a loan after approval or can I cancel a home loan after sanction? — Mehma Singh Kharar
A. If the loan has been sanctioned, but not disbursed, it is possible for the individual to cancel the loan. But this decision needs to be quick as some lenders are quick to disburse the loan as soon as the deal is confirmed. In case of a lender, the loan can be cancelled if your financial situation changes suddenly, for example, a significant loss of income or a large amount of new debt. Usually, lenders do a final credit check right before actually funding the loan.
However, it is only a sanctioned loan that can be cancelled. Once it has been disbursed, the lender can not cancel it. So the answer to your query, can I cancel loan after sanction, is yes, but if you are wondering whether the loan can be cancelled after disbursement, then I am sorry to tell you that it cannot be done.
Buying house from NRIs
Q. How do banks give loan for buying a resale home from an NRI? — Dr RK Aggarwal, Panchkula
A. The procedure involves verifying the NRI’s legal title to the property, ensuring all documents are in order, deducting the appropriate Tax Deducted at Source (TDS), and making payments preferably through banking channels to the NRI's NRO account. Due diligence and compliance with FEMA regulations are crucial.
The buyer is responsible for deducting TDS on the capital gains of the NRI seller at the rate of 20% plus applicable surcharge and cess. However, Section 195 states that the TDS is calculated on the sale value of the property. If the NRI is a tax defaulter, the department will hold the new owner responsible for clearing the past tax dues along with 12 per cent interest. The new owner may also be penalised for the same.
If an NRI is selling property in India and is not physically present to carry out the deal, the only other alternative is power of attorney, which is a legal authorisation given to a person by the NRI to represent him and act on his behalf. If you are planning to buy the home through a loan from a bank or HFC (housing finance companies), then you will need to get the PoA done as per their proforma. This information is easily available when you contact the bank or when you visit their website.
If the PoA was granted overseas, then the document should be executed by the Grantor before The Indian Consulate Officer. The original document should also be adjudicated at the jurisdictional District Registrar’s office.
