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I have a fixed-rate 20-year home loan from ICICI Bank. I took it eight months ago. Now I want to sell my flat.
Can I do so even though I have a loan on it and the documents are with the bank?
Will the buyer have to take the loan from the same bank?
- Sujoy Das
Yes, you can sell the home even if you have a home loan.
The buyer need not necessarily take the loan from the same bank though it would be administratively convenient if he does.
Let's say the buyer decides to taking the loan from another bank, say Bank A.
Then, you must obtain a letter from ICICI Bank. This letter must state what the exact amount to be paid is to close the loan.
It must also state what documents are lying with them as security for the loan and that they would release the listed documents to Bank A within a fixed number of days after receiving full payment.
Bank A will typically be comfortable with this arrangement only with a select list of banks.
To see the other queries answered by Harsh Roongta, read A personal loan to buy a home? and Want to change your EMI date?
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