The database will contain address, survey number, agreement value, loan amount, information about the borrower and importantly, history of past enquiries about the property.
Even as plans are afoot by the National Housing Bank (NHB) to prepare a databank of all mortgages against property and land, Credit Information Bureau (India) Limited (CIBIL) and TransUnion with the support of Indian Banks Association has on Thursday launched CIBIL Mortgage Check, a database that can be accessed currently by lending banks only.
This database will contain address, survey number, agreement value, loan amount, information about the borrower and importantly, history of past enquiries about the property.
While CIBIL will share the database with that proposed by NHB, the NHB database will allow consumers to access details of a particular property even if they are not availing loan.
The setting up of the database follows lending institutions facing increases in write-offs and bad debt, many of which can be attributed to fraudulent activities. The absolute level of gross non-performing assets (NPAs) — loans defaulted by borrowers who delay payment of principal or interest beyond 90 days — increased by nearly Rs14,000 crore, or 25%, to Rs71,604 crore for the year that ended March 2010 with public sector banks contributing maximum to the fresh NPA creation.
While the database would be of major help to restrict frauds, Arun Thukral, managing director of CIBIL and S Shridhar, chairman, NHB and Central Bank of India, admitted the system is not 100% foolproof. “Banks will have to visit the property or find other ways to curb any connivance between the bank employee-developer-loan
taker,” said Shridhar.
Additionally, as pointed out by DNA in Wednesday’s report, the database is no proof when the government, through the registration department, has yet to maintain and update property records.
A group of advocates have filed a PIL pointing out the major lacunae in the system and it is pending in the Bombay high court.
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