1) approach bank where loan is pending and get loan transferred in your name 

2) pay balance amount to seller 

3) enter into registered sale deed with bank NOC 

If you want to buy the property outright by paying the entire sale consideration amount then why do you have to go for sale agreement, you can get a sale deed executed and registered on your name upon paying the sale consideration amount and also bearing the stamp duty and registration charges. 

The bank will certainly not release the property documents and issue No due certificate until the entire loan amount is discharged along with the accrued interest.

In that situation, if yo are keen to purchase the property, you can inform the seller to enter into a formal loan agreement with you on a stamp paper and promissory note, then clear the outstanding loan amount with interest, release the documents and execute a registered sale deed on your name, after which you can cancel the loan agreement 

First, obtain copies of all the documents deposited with the bank from the seller, engage a competent lawyer, ask him/her to scrutinise the vendor's title, and obtain his/her clearance in writing. Request the bank to let your lawyer see the documents, at a mutually convenient date. Obtain an undertaking in writing from the bank they shall release all the documents to you directly, immediately upon your clearing the seller's dues. Ask the bank to lift the encumbrance in the land registry's records immediately thereafter. Better to execute a tripartite agreement with the bank and the seller, in consultation with your lawyer. 

- As per banking rule , until the loan amount not refunded to the bank , the bank will not issue NOC and release the mortgaged documents 

- Since, if you are planning to purchase that property without taking loan , then you can pay the loan amount only to the bank to close the account of the seller , so that the bank issue the NOC in your favor , and release the registered documents to you via the seller.

- Hence, inform the bank to issue the NOC after mentioning that the loan amount has been paid by you on behalf of the seller . 

- However, an unregistered agreement is not admissible before the court .

Dear Client,

Due Diligence:

Before proceeding with any transaction, it's crucial to conduct thorough due diligence on the property. This includes verifying the ownership, checking the status of the mortgage, and ensuring that the seller has the legal authority to sell the property.

Loan Closure and NOC:

If you're planning to close the loan on behalf of the seller, you should ensure that the loan is indeed closed properly and all necessary documentation is obtained, including a No Objection Certificate (NOC) from the bank. The NOC indicates that the property is free from the mortgage and that the bank has no objection to the sale.

Risk Management:

Proceeding without a registered sale agreement could expose you to risks, as the terms and conditions of the sale might not be clearly established in a legally binding manner. This could lead to potential disputes later on

Is it worth closing the loan before without getting any registered sale agreement - NO. first execute tri partite agreement including bank, than only purchase is safe. 

It is correct that without NOC from bank sale deed cannot be registered. However, an agreement to sell can be executed containing all details, NOC etc. and the same can be registered also. Talk to bank for OTS. 

Execute a tripartite agreement with bank, seller and you on 100 stamp paper incorporating all terms to safeguard your interest. Than you can close the account and get the property registered. Much depends on how the agreement is drafted.  

When you close the loan bank returns you Orignal papers along with noc

1. Gert a tripartite agreement between the borrower, the buyer and the mortgagee bank be executed/registered  mentioning that immediately on receiving the outstanding amount, the bank will handover the original title deed to the Buyer.

2. No NOC from the Bank will be required in the instant procedure.  The Bank will handover the original title deed to the Buyer on receiving the DD towards the outstanding amount at the Registration Office itself, when the borrower/seller will register the sale deed in favour of the buyer.