Loan Against GPA Property-Instant Loan on GPA Property In 2 Minutes-Loan on GPA

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How do you get a loan against GPA Property?

Bank or NBFC’s do not lend money against GPA Property. The only way is to take a loan from the private financier. Private money lenders in Delhi give loans against GPA Property.

General Power of Attorney does not transfer the ownership right but only creates a right to represent the true owner. Supreme Court and various High Courts have held that GPA, Agreement to Sell does not confer any ownership to the transferee.

In most of the unauthorized colonies where registration of Sale Deed is not permitted by the Government, the sale and purchase of the property is completed through GPA and Agreement ot Sell i.e. (ATS), though those documents are not recognized as valid documents of transfer/sale.

Banks do not give any loan to the against gpa property. Only private money lenders lend money against GPA properties.

A good credit score can only help in getting a personal loan or loan against a property or business loan or any other loan but practically if somebody is claiming that a bank or NBFC is lending money against GPA property that is an untruthful statement. Only and only private financiers lend money against GPA property.

Why banks do not give GPA Property Loans?

Assuming banks decide to lend money against a GPA property and thereafter the borrower commits a default and approaches the court of law to sell the collateral that will be GPA property herein then the Court will not recognize the GPA and will not attach or sell the property to recover the loan amount of the bank which will result in a total loss of the principal amount to the Bank.

This is the reason no bank in India will ever lend money against GPA property.

Generally, there are several reasons for purchasing the property through GPA

1. Registration of a Sale Deed or Gift Deed is not permissible.
2. The chain of Documents does not match.
3. The purchaser wants to avoid Stamp Duty or Registration Duty.
4. The purchaser wants to enter into a Benami transaction or wants to invest his black money or unaccounted money.
5. Property purchased is Acquired land of the Government or forest land, agricultural land, water body, etc.
6. The purchaser wants to

Is a loan available on GPA property?

Only Private Money Lenders lend money against GPA Property.

Can a GPA holder take a loan?

GPA holders can take loans against the property if the previous chain of the property is proper.

Is it desirable to purchase property through a general power of attorney?

One should not invest their hard-earned money by purchasing property through General Power of Attorney.

Take Loan on GPA Property Complete Guide with Tips and Tricks

A mortgage loan on GPA property is a secured debt where the applicant pledges his GPA property to banks/ Nbfc or private lenders as a security and obtains money as a loan against it.

What is GPA?

GPA means General Power of Attorney. This is a deed and a legal instrument by which one person authorizes the other to act on his behalf as if he does the same. A GPA can be registered at any place irrespective of the property location in the state.

Why is it necessary to Register a Gpa?

Nearly two decades earlier during the 2000s the sale of the property was going through GPAs rather than a sale deed which was giving losses to the Government. Purchasers were purchasing the property through registered GPA by paying nominal charges of 1000 rupees plus. Thereafter the executive government came up with the Notification that made GPA concerning the property a compulsorily registerable document with full Stamp Duty to be paid.

GPA concerning a property has to be registered and in the absence of registration and stamp duty, it is not valid in the eyes of law or before any court or authority.

GPA, ATS, WILL, DECLARATION, AND RECEIPT valid or not for transferring the property?

The judgment and directions of the Supreme Court GPA etc. are not valid documents for transferring the property from one person to the other.

Mortgage Loan on GPA Property

A General Power of Attorney (GPA) is not a valid document for transferring the title and ownership from the owner/seller to the purchaser. The GPA needs to be properly stamped and registered on which stamp duty and registration duty should be paid. Thereafter the seller has to bear the burden of capital gain also. Today in 2024 the capital gain tax is 12.5 percent.

Power of Attorney or Mukhtiyarnama for availing Mortgage Loan

The rights of the attorney holder can be limited or very wide which is dependent on the person who grants it. The person who grants power of attorney is called the principal and the contents of the power of attorney can also grant power to get a mortgage loan from a third party which is completely valid in the eyes of the law.

Reality Check of Loan Against GPA

There are no banks, NBFC, or any other regularised lending institutions that are giving loans on GPA property, there are only private money lenders who occasionally lend on a GPA property. The chances of getting a loan against a GPA property increase if GPA is registered it further increases if GPA is directly given by the previous owner of the property in whose name the registered sale deed or gift deed is registered.  It further increases where the complete chain of property documents like GPA  is connected and unbroken. It is further clarified that banks, NBFC, or any other regularised institution do not lend money against GPA  property anybody claiming that a loan on GPA property is possible is making a false statement as such a lending/loan will be against the public policy and law and RBI regulations and hence banks do not get involved in such lending practices. Moreover assuming the banks or NBFC’s choose to lend money against GPA property then there will be a fear of the principal amount getting stuck or ever getting recoverable, where there are more loan seekers available with the banks on legitimately registered title deeds of legitimate properties then why will a bank or any other lending institution choose a GPA property.  It is always to be kept in mind that bank deposits are always less than the number of loan applications. Hence, the quality and profile of the borrower has to be the best including the property which is kept as security.

Assuming for the time being that NBFC’s or Banks choose to lend money on G P A  property and there is a default by the borrower than an internal domestic inquiry will be held and then the person be it Branch Manager, Regional Manager, or director whosoever was the in charge in sanctioning of the loan on G P A  will be terminated after following due process and procedure  All in all, a person who wants a loan against G P A  Property should try getting it from private financiers or private money lenders other avenues to obtain a loan against G P A  property is to take a friendly loan from friends, family, and relatives

Loans against property can be obtained from forums providing peer-to-peer lending facilities. The prospective borrower can follow the groups available on social media or can create a group himself because sometimes a random investor can also visit and contact the borrower to lend money  Here borrowers can only find first-time lenders only, experienced lenders usually have borrowers lined up  Private money lenders and private financiers already have an established mechanism.  Once the prospective borrower or money lender finds an interested investor then the applicant should try to persuade the investor to show his bonafide requirement and genuineness in seeking a loan, furthermore, the applicant should also try to demonstrate the lender by which borrower will repay the loan amount  Very relevant to mention that the loan on gpa property is a risky financial transaction and unless the lender feels comfortable with the profile, nature, and behavior, no financier will ever lend money

Types of Loan Against GPA Property

1. Where there is a registered GPA
2. Where there is an unregistered GPA but the chain of documents is connected and unbroken
3. Where there is a registered GPA but possession is not with the owner

Documents required for taking a mortgage loan on GPA property: –

Main Applicant hast to arrange: –

1. Photo
2. Pan card copy
3. Aadhar card copy
4. Present address proof copy
5. Copy of Id proof of employee
6. Copy of salary slip for three months
7. Bank statement of 6 months
8. Running Loan account statement
9. Processing Fee Cheque

The document may vary for the businessman or self-employed. The concerned bank should be contacted for exact information.

The said information is for clarity in the Loan and finance sector only.

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