Frequently Asked Questions

Banks’ intent is not to forfeit money but liquidate asset, thus, in case of slight delay, banks can arrange for extension of timelines.

EMD payment is mandatory to apply. Per the procedure, missing a payment would amount to forfeiture of payments made till date. However, banks’ intent is not to forfeit money but liquidate asset, thus, in case of slight delay, banks can arrange an extension of timelines. However, it is discretionary and done as exceptions.

Every notice mentions a payment schedule, however for most auctions payment schedule is as below:
10% is paid as EMD or application money
Another 15% within a day of winning the auction
Balance 75% within 30 days of the auction date.

Banks mention the name of all borrowers and guarantors of the loan in notice only as part of the process. Banks are the seller here and there is no consent required from borrowers or guarantors.

If there are no other bidders or no one bids above the reserve price, you will get the property at reserve price and at times, add a minimum increment bid amount which is mentioned in the auction notice. This amount is usually 5,000 — 10,000.

To ensure only genuine buyers are involved in the transaction and auction process, banks usually require 10% of the reserve price as EMD. If you win, EMD is adjusted towards winning bid price. If you do not win, banks auto refund this EMD to your bank account

Reserve price is the minimum price at which a bank is selling the property.

It is bank’s procedural and legal way of saying that there is no delivery risk. They are offering the asset as it exists in its current condition. They are not promising any further construction or amendment in shape, size, quality, amenities, dues, title among others.

It is critical that you read this notice before applying. It contains most important terms of the sale and property information.

This is bank’s procedural way of notifying the property they are selling. It contains all relevant information they are required to publish.