Q.1030 Bank wants Power of

Attorney from home loan

applicants

Question: Hello team, I am currently based in USA and a citizen of India. I have a recently taken home in Mumbai and for that I have applied for the Home Loan. For property registration, I have created and submitted general POA to my parents. I have also submitted general POA to bank – as per their format. Now bank is asking me to submit original POA which I have created for home registration. Please advise if should submit it? Thanks Sumeet Answer: The general POA that you state you have already given to the bank [usually these are IRREVOCABLE POA] probably already has a clause that permits the bank to present documents for registration before appropriate Registrar/Sub- Registrar and give authority letters to the Sub- Registrar to directly deliver the registered documents to the bank. Through the POA submitted to the bank you probably also agreed to provide them with any documentation they may require. Your bank is not going to approve the loan unless they get what they want. Even if loan is denied by the bank, you will be liable for the loan processing fee, which you may have already paid in part or full depending on your bank’s policy. You may also want to check with your bank about the procedure and cost involved to cancel the irrevocable power of attorney executed in favor of the bank after the loan was fully paid off or perhaps if you decided to sell the property at some point of time. Indians of foreign origin, NRIs, PIOs who opt for loans from Indian banks will find procedures are not that simple at Indian banks when compared to what they are used to in their home countries. A sample of what a bank may require in terms of an irrevocable power of attorney from those who apply for home loans is provided for information purposes of NRIs thinking of applying for a home loan in India. The document is for sample purposes only and different banks may have their own set of rules. This document will however give readers a general guideline as to what to expect when they do apply for a loan. To view sample of POA Click HERE