Takeover of Home Loans from One Bank/FI to Another

There is a provision in banking to allow takeover of home loans from one institution to another, subject to no-objection letter from the transferor bank/FI and acceptance of the loan proposal from the transferee bank/FI. The other important conditions include the reason for such takeover as also the regularity of the loan account. The mortgage and documentation formalities are carried out by the respective bank/FI amongst themselves and the loan after such takeover is serviced by the new entrant.