Loan Rule: Can a loan be taken on grandfather's and father's property? Know what the rule says!

PC: lokmat.news18.

Everyone gets a share in Bap Dada's wealth. But have you ever thought of taking a loan against this property? According to the succession law, the grandfather and father have rights over the property, but is there any law and method, which can get a loan from the bank in lieu of the father's or grandfather's property? In this regard, much unique information has come to the fore in conversations with legal experts and experts related to banking matters.

If the ancestral property is in the name of the grandfather, then the grandson has a share. But he himself cannot take a loan on this land. Only the person in whose name the property is registered has the right to take a loan against the property. If there is no partition of the property, then naturally the property will be in the name of the grandfather. In such a situation, it is clear that the grandson has no right to take a loan from the bank on this property.

Then what are the ways of loan,

Even if the property is in the name of a grandfather, many ways can be opened to take a loan. If the grandson wants, he can take a loan from the bank in the name of his ancestral property, even if the property is in the name of his grandfather or father. Rajeev Mishra, Banking Expert and Head of the Loan Department, at HDFC Bank, says that there are 3 ways to get a loan against your ancestral property.

1. Make the owner of the property a guarantor

If a person wants to take a loan on a property in the name of the grandfather, he has to make the grandfather a guarantor for the loan. That is, a written affidavit will be given to the bank on behalf of the grandfather, in which there will be a full guarantee of the loan. It has been clearly stated in this affidavit that if due to some reason you are not able to repay the loan, then the same amount can be recovered by selling the property.

2. Make the property owner a co-applicant

Another way is you can make your grandfather or father in whose name the property is currently a co-applicant for your loan. By making a co-applicant, the responsibility of repaying the loan will be the same as that of a grandfather or father. In such a situation, the bank can easily provide the loan amount, because there is no risk of loan default.

3- Property acquired in Gift Deed

The third way to get a loan against ancestral property is for the person who currently owns the property to do the gift deed in your name. It means suppose there is a property in your grandfather's name and his only son is your father and you are also the only son of your father. So, in such a case, your grandfather can execute a gift deed for 50% of the property in your name. After this, you can take a loan from the bank on this gift deed. But even after this, you will have to apply for the loan in both names.