• Confusion about the 'Lock-in Period' of an 'NBFC Loan Aginst Property' loan

Good evening! 

I am interested to transfer my existing LAP to another lender (a private bank, probably). 

My existing lender is an NBFC. 

I have escalated the issue to my existing lender, who has been maintaining a stoic silence on the subject. 

Thus, I would like to know if 
A) at all, there is any so-called mandatory lock-in period pertaining to 'LAP' products, as laid out by the competent authorities, 

And, if there actually is a so-called mandatory lock-in period, then, 
B) what is the tenure of that period? 

Thanks and warm regards!
Asked 3 years ago in Consumer Law

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6 Answers

1. Generally there is no lock n period for the loans especially when the borrower  wants this loan to be taken over by another bank/NBFC.

The original lender bank cannot refuse to provide this service.

Obtain a consenting letter from the existing bank along with the outstanding loan amount. Provide these documents to the new bank that you wish to transfer the housing loan balance. The new lender will then pay off the balance due to your old lender.

If the original lender bank is reluctant to oblige, yo may issue a legal notice through a lawyer and demand the desired details. 

2.  There is no such lock in period in case of transfer of loan from one financial institution to another. though some banks mandate minimum lock in period for pre-closure or repayment. 

T Kalaiselvan
Advocate, Vellore
87627 Answers
2352 Consultations

There is no mandatory lock in period 

 

it all depends upon terms of contract entered into by you with the lender 

Ajay Sethi
Advocate, Mumbai
97432 Answers
7872 Consultations

There is no RBI rule but depends on the individual agreement with your NBC bank

Prashant Nayak
Advocate, Mumbai
32812 Answers
209 Consultations

A. Yes, you can transfer your home loan to another bank any time after the lock in period ends for the same.

B. Generally this lock in period for a home loan ranges from 6 months to 1 year.

- However , you can enquire from the NBFC for the said period. 

Mohammed Shahzad
Advocate, Delhi
14737 Answers
224 Consultations

There is no such lock in period 

However you can still check the loan agreement and other documents signed by you in favour of the bank for the grant of loan. Check if there is any stipulation to that effect. If it's there then it will be purely contractual. 

No statute imposes any lock in period for a loan 

Yusuf Rampurawala
Advocate, Mumbai
7741 Answers
79 Consultations

Dear clients,
  Lock-in period clause says that tenant cannot leave rented property before specified period. In case tenant decide to leave the rented property before lock in period he/she needs to pay the rented amount for the lock-in period as specified in rent agreement.

Anik Miu
Advocate, Bangalore
10355 Answers
121 Consultations

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