Yes if it’s not mentioned in consent terms before court noc needed
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A loan of 4 cr was taken with two applicants (Namrata & Benod)- Sept 2020 Namrata primary and is also the single registerd owner has contributed to the loan fully. Nov 2024 primary applicant Na has paid the loan in full. They have also been seperated son jan 2021. Benod secondary applicant has not contributed at all. No joint account transactions or significant money transfers. Does hdfc bank need a n No-objection certificate from benod 2nd applicant) Or What is the case in case of divorce. Does hdfc need and NOC even in case od divorce
Asked 1 year ago in Property Law
Religion: Hindu
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8 Answers
Bank needs NOC from 2 nd Applicant
even in event of divorce bank will insist on NOac from second applicant
It is not clear whether both the applicants are joint owners or not.
If not NOC is not required from the non owner .
Even though she is a co-applicant, the bank will proceed as per law hence they are right in insisting NOC from the second applicant for returning the title documents on discharge of loan.
If the bank ignores NOC then she as a second applicant can sue the bank demanding damages and compensation.
yes the bank would need the NOC as the property stands in joint names
even if there is a divorce, that would not matter. Despite the divorce, Benod continue to remain the joint owner and joint applicant in the loan
try giving an indemnity to the bank for releasing the original title document to you since the full loan is repaid
- Since, the loan was taken by two applicants , then the consent of both the parties are needed for releasing the property mortgage documents.
- Further, if divorce decree has already passed , then the primary applicant submit the same before the bank .
Dear Client,
In the Present Scenario, a loan of 4 crores was taken with two applicants Namrata, and Benod, on September 2020. Namrata was the primary applicant and the single registered owner has contributed to the loan fully. On November 2024, the Primary applicant Namrata had paid the loan in full and, Benod the secondary applicant, did not contribute at all. Your query is whether a NOC is required from Benod. Herein, generally, HDFC Bank does not require a NOC, from the secondary applicant, for closing the loan, as Namrata, the primary applicant and sole registered owner of the property, has fully repaid the ₹4 crore loan. However, under the Indian Contract Act, since both are applicants, both are jointly and severally liable for the loan. But, once the loan is repaid, Benod’s liability ceases. Further, the status of co-applicant in the loan does not grant ownership rights to the property, that remains solely with Namrata, also as reflected in the registration documents. Therefore, since Benod has neither contributed to the loan repayment, not does he/she holds any legal rights over the property, HDFC Bank should release the property documents and issue a Loan Closure Certificate based solely on Namrata’s request and proof of repayment.
Hope you find this answer beneficial for resolving the dispute.
