Power of Attorney for Bank Home Loan

A Power of Attorney (POA) is a legal document that allows an individual (the Grantor) to appoint another person (the Attorney) to act on their behalf. In the context of managing a home loan, a POA can be an essential tool, especially for Non-Resident Indians (NRIs) or those who may not be physically present to handle the intricacies of the loan process. Below, we’ll explore the key aspects of using a POA to manage a home loan.

Execution of POA in India and Abroad

• In India: The POA must be executed on a non-judicial stamp paper of the requisite value as per the stamp duty prevalent in the respective state. It must be signed by the Grantor and the Attorney, and as per the applicable rules it must be notarized or registered.

• Outside India: The POA should be typed on a plain sheet of paper, signed, and initialed by the Grantor. The signature must be attested by an authorized official of the Indian Embassy or Indian Consulate or Notary Public in the country where the Grantor resides. The POA is then sent to India and after attaching the required Stamp Duty the Attorney should sign and get it notarized.

In the context of home loans, this Power of Attorney can be quite comprehensive, covering various aspects of the loan process. Below are the 19 specific powers that can be granted to the Attorney:

1. Application for Financial Assistance: The Attorney can apply for financial facilities, sign applications, furnish details, and follow up with the bank.
2. Acceptance of Terms and Conditions: The Attorney can accept terms and conditions of the loan, sign documents, and pay all associated fees and charges.
3. Requesting Changes in Loan Terms: The Attorney can request or agree to changes in the loan amount, interest rates, repayment period, or other terms.
4. Receiving Disbursement of the Loan: The Attorney can receive the disbursement of the loan and give effectual discharge.
5. Providing Information and Documents: The Attorney can give necessary information and documents to assist the bank in appraising the application and any properties purchased using the loan.
6. Securing the Loan on Properties: The Attorney can secure the loan on properties as required by the bank, pay stamp duty, present documents for registration, and give authority letters to the Sub-Registrar.
7. Furnishing Indemnities: The Attorney can furnish indemnities as required by the bank in relation to the loan and execute all necessary agreements and documents.
8. Executing Legal Mortgage: The Attorney can execute an irrevocable POA authorizing the bank to execute a legal mortgage on the properties secured for the loan.
9. Authorizing Sale of Secured Properties: The Attorney can execute an irrevocable POA authorizing the bank to sell the properties secured on any delay or default in repaying the loan.
10. Pledging Securities: The Attorney can pledge shares, debentures, bonds, fixed deposits, or other securities as security for the loan.
11. Acknowledging Liability: The Attorney can acknowledge the Grantor’s liability or debt to the bank in respect of the loan.
12. Buying Properties: The Attorney can buy properties on behalf of the Grantor, execute agreements, pay stamp duty, and register the documents.
13. Taking Possession of Properties: The Attorney can take possession of the properties purchased on behalf of the Grantor.
14. Leasing Properties: The Attorney can lease or give properties on leave and license.
15. Interacting with Trustees/Agents of the Bank: The Attorney can enter into and execute documents and writings as required by the trustees or agents of the bank.
16. Selling Properties: The Attorney can sell properties belonging to the Grantor, including those secured for the loan.
17. Cooperative Housing Society Registration: The Attorney can sign forms, documents, and papers for registration with Cooperative Housing Society or Limited Company or Association of Apartment Owners.
18. Compliance with Laws: The Attorney must abide by all applicable laws, including the Foreign Exchange Management Act, 1999, in connection with the loan.
19. General Acts: The Attorney can perform all acts, deeds, matters, and things necessary and incidental to buying the property, paying the purchase price, borrowing from the bank, and giving security.

The Power of Attorney for managing a home loan is a comprehensive document that covers various aspects of the loan process. By detailing above 19 specific powers, it ensures that the Attorney can act effectively on behalf of the Grantor, ensuring a smooth and lawful process.