YOU may have your reasons for not submitting original documents to your home loan lenders. But home loan expert Harsh Roongta suggests that you submit all documents to avoid legal entanglement.

I took a home loan five months back from a bank, and have been paying the EMI (equated monthly instalment) regularly. They asked me to submit the original documents and create an equitable mortgage for the loan amount. I have not submitted the original documents to the bank for the following reasons.

My personal experience is that the banks would not cooperate to show the originals to the purchaser's lawyer for their verification purpose when I plan to sell the property. I do pay EMIs regularly and will pay in the future without fail.

What action can a bank take for not submitting the originals? I would like to keep them with me safely and in good condition. I do not mean to cheat the bank under any circumstances.
-- Sarathi

Harsh says:Home loans are basically secured loans issued against the security of the house that is financed. That means, if the borrower fails to pay back the loan, the lender will have recourse to sell the house and reclaim the money it has lent.

A common practice:
It's standard across the world, for the lending bank to keep the original documents for a home loan.

This will also ensure that the borrower will not sell the property without the knowledge of the lender till the home loan is paid back.

So, there's no option for you but to give your original documents as requested by your home loan lender.

Typically, banks disburse home loans only after they receive the original documents. This is a condition that will be in the loan offer document as well as in loan agreement.

Since these are legally binding agreements, I cannot see how you can stay away from submitting original documents to the bank.

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