Since the original title documents are with the bank, a transfer without their consent violates the loan agreement. 

2) If a gift deed is registered without their knowledge, the bank can challenge it in a court of law.

3)until loan is repaid bank will refuse to give NOC 

4) If the loan defaults, the bank can invoke the SARFAESI Act to auction the property to recover dues, regardless of the gift deed

Pay off the entire outstanding home loan. Once the loan is cleared, the bank has no interest in the property. They will release the original documents and provide a "No Dues Certificate." You can then register the gift deed with absolute freedom.

Under the Transfer of Property Act, 1882 and standard loan agreements, once a property is mortgaged the borrower cannot transfer ownership without the lender’s consent.

So if your wife executes a registered gift deed transferring her share to you without NOC, the situation becomes that the gift deed may still be valid between you and your wife but it will be subject to the bank’s mortgage rights.

The bank can ignore the transfer because the property was already mortgages to them. In short the bank’s rights override the gift deed.

The Bank may refuse to furnish NOC even after repayment of entire loan demanding the co-borrower's signature to release the documents.

At the time of selling the property, the buyer's lawyer may object stating that the gift deed was executed without lender consent during the mortgage.

This can delay or complicate the sale.

Even if she gifts her share she remains liable as a co-borrower unless the bank approves a borrower change.

The bank can still recover the loan from both of you.

Therefore it is suggested that you may Close the home loan, obtain mortgage release, execute gift deed.

When a flat is mortgaged to a bank for a home loan, the property is already under a registered charge in favour of the lender, and the borrower normally cannot transfer ownership rights without the bank’s prior consent. The loan agreement and mortgage terms generally contain a clause prohibiting sale, transfer, or creation of third-party rights without the lender’s permission.

If your wife executes a gift deed transferring her share to you without obtaining the bank’s NOC, the gift deed may still technically get registered because the Sub-Registrar usually does not verify loan conditions. However, such a transfer would violate the terms of the loan agreement with the bank. Under the Transfer of Property Act, 1882, a mortgaged property remains subject to the rights of the mortgagee (the bank). This means the bank’s charge continues regardless of the gift deed.

The practical issues that can arise later include the bank treating the transfer as a breach of loan conditions, which may allow it to demand immediate repayment or take action under loan default provisions. When you attempt to close the loan or sell the property in the future, the bank will examine the title documents and may object to the transfer made without its consent. Similarly, during loan foreclosure or resale of the property, the bank may insist on rectification or may require both original borrowers to sign documents.

In the event of separation or divorce, the existence of a gift deed without lender consent may also be questioned. Although the transfer between spouses may be valid inter se, the property will still remain subject to the bank’s mortgage rights until the loan is cleared.

If the bank is not granting an NOC, the most common practical solutions are:

• Continue the loan in joint names but record the arrangement privately through a family settlement or declaration regarding beneficial ownership until the loan is repaid.
• Request the bank for loan restructuring or borrower substitution, where your wife is released from the loan and you become the sole borrower (banks sometimes allow this after credit assessment).
• Close or refinance the loan with another lender and then execute the gift deed after the mortgage is cleared.
• Execute the gift deed after full loan repayment, which avoids any objection from the bank.

In most cases, the safest approach is to obtain the bank’s written consent before executing any transfer, because the lender’s charge on the property takes priority over later transfers made without permission.

Thank you for your response. Before providing a proper reply, I kindly request that you share the complete details of the matter for clarity. To ensure a thorough discussion and provide appropriate guidance, a phone consultation or office visit-Fort would be necessary.

If bank is not giving noc you can approach court. As bank can’t refuse unless the mortgage loan emis are unpaid. Other than that there is no reason bank can refuse.

- As per laws, any transfer of ownership of a mortgaged property requires prior permission or NOC from the bank.

- Further, transferring the share without informing the bank is a violation of the loan agreement.

- Further, in case of non-informing the bank , there will be joint ownership of the property in the bank. 

- Hence, you should take permission of the bank before registering the gift deed, and the bank may allow the same.