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I have taken a subsidised loan from my employer am I still eligible for a loan from a HFI?

April 26, 2017eligible employer hfi loan subsidised

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I have taken a subsidised loan from my employer am I still eligible for a loan from a HFI?

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Ans.: Normally, HFIs prefer to have the first right on the property for which they provide loan. However there are times when the customer who has availed of a loan from his employer (available at subsidised rates) may find the amount insufficient to meet his needs. To meet this shortfall he may want to approach a HFI. In such a case, the HFIs would go in for a pari passu mortgage or a second mortgage. In a pari passu mortgage, in case of default in repayment, both the employer and the bank share the right on the property as per the proportion of the loan amount disbursed by them. In a second mortgage the HFI only has second priority if it comes to recovering the money by way of disposing off the property. Second mortgage is acceptable only if the first mortgage lies with the President of India.