PSU banks to give documents within 15 days from closure of loans

The Finance Minister Nirmala Sitharaman in her press conference today announced that public sector banks (PSU) should ensure that "mandated return" of loan documents within 15 days of the closure of the loans. This move is aimed at helping out borrowers who are unable to apply for various clearances or other permissions despite having paid off their loans because they have not received the loan closure documents.

There have been problems faced by the banks' customers' in getting the loan documents back once the loan payments have been finished. Borrowers who have paid off loans often complain that their loan documents or security related documents have not been given back to them.

"Within 15 days of the closure of loan, documents will be returned to the customer," said the Finance Minister. "It shall not be held unreasonably by the bank," she added.


The move is aimed to benefit all the PSU banks customers who have repaid all their loans but face problem to get their security related documents back.


The finance minister further said that there will be online tracking of loan application made either with the bank or NBFC. The move will benefit all the customers including housing, retail, MSMEs to track their applications for loans.

All the customers who have applied for loans including housing, credit enhancement, vehicle etc. will be able to track their loans. This will increase transparency, reduce harassment and this will also improve the turnaround time for customers, she said.