Home loan in India is a very important financial option which provides people with the necessary funds to buy a property or build a house. This is especially useful for those who are not able to pay the lump sum amount and can repay the price of their property through monthly installments (EMIs). However, sometimes people have to sell their property before the end of their home loan tenure. In such cases, certain legal and financial formalities have to be completed so that the entire transaction of sale of property can be legally correct. Today we are going to know about him.

This rule has to be kept in mind

The first question that arises is whether a property on which there is a home loan can be sold? The answer is, yes, you can sell your property even if there is outstanding home loan on it. But for this it is necessary to follow some conditions and procedures. First, you need to get permission from your lending institution, such as a bank or finance company, to sell the property. This permission is in the form of a No Objection Certificate (NOC), which ensures that the bank has no objection to selling your property.

The process becomes easier when there is a same bank.

If the person buying the property also wants to take a home loan from the same bank, then the process becomes much easier. In this situation, the bank is not required to transfer the property documents to any other bank or financial institution. Instead, the bank can appraise the property and transfer the outstanding loan to the name of the new buyer. Thus, transfer of loan within the same bank makes the process simpler and less time consuming.

Whereas, if the buyer wants to buy the property in cash, then he will have to pay the outstanding loan amount directly to the bank. The property documents will not be released until the Bank receives payment of the entire loan amount and any other outstanding charges. As soon as the dues are paid, the bank releases the original property documents and the process of selling the property can be completed.

Know this before buying and selling

It is necessary to take certain steps to make the process of selling property simple and safe. First of all, get an accurate idea of ​​your outstanding loan amount and ensure that you have enough funds to repay it. If you are unable to repay the entire loan amount, talk to the bank or explore other options such as a personal loan. After this, NOC will have to be obtained from the bank, so that it can be proved that the bank has no objection in selling the property.