INCOME TAX24 Sept 2026
Home loan repaid but lender didn’t return property papers? You can get ₹5,000/day compensation | Mint
Paying your last home loan EMI isn't the end. Your lender must return original property papers and remove its charge within 30 days of full repayment. This RBI rule covers banks and NBFCs for cases from December 1, 2023. Delay beyond 30 days attracts ₹5,000 compensation for each day, and lenders must explain the delay. Keep written records and follow up with your bank.
Key Statutory Highlights
- RBI directions require lenders to complete loan closure, including returning original property documents and removing the charge, within 30 days of full repayment.
- If the delay is the lender's fault, it must compensate the borrower ₹5,000 for each day of delay and communicate the reasons for the delay.
- The framework applies to cases from December 1, 2023, for banks and NBFCs that hold original property or collateral documents, such as housing loans and loans against property.
Actionable Advice for Taxpayers / Founders:If your loan is fully repaid but your documents or charge removal are still pending, note the delay in writing, preserve your loan documents, and raise it with your lender through their grievance process so you have a record if you escalate.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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