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We have a LAP (Loan against property) loan with ICICI Bank. The loan is on my name (primary), with my brother and father as co-signers.

I am not sure how the ICICI bank sanctioned the loan on my name as primary, when the property is on my brothers name. Is this still acceptable that the property is not in my name but I am the primary borrower? It reflects in my CIBIL as well.

The issue is that my brother has stopped paying the EMI and ICICI bank is pestering me for payment.

Please guide me and let me know if anything can be done in this scenario.

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In Loan Against Property is slightly different than a "Home Loan". Technically there is nothing wrong in you being the primary borrower and the property being in your brother's name. It's normally avoided by the Banks Internal policy as recovery can at times be an issue. However this maybe adequately secured by the Bank by having the property title hypothecated before granting the the loan. From a Bank's point of you, you are the borrower and have to pay, if you fail to pay, they will go after your father and brother and then sell off the property to recover the money. Your credit score will take a hit.

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    What does "hypothecation of the property title" mean? Does the brother still have sole title to the property but has pledged it to the bank as security for the loan? Or has the title been changed to joint ownership by the two siblings until the loan is paid off?
    – Dilip Sarwate
    Commented Dec 4, 2013 at 21:31
  • (+1 and welcome to 10K rep :-)
    – Chris W. Rea
    Commented Dec 13, 2013 at 14:42
  • @ChrisW.Rea Thanks, do you get a surprise delivered to your home by Joel :)
    – Dheer
    Commented Dec 13, 2013 at 15:43
  • That would be nice, wouldn't it? :)
    – Chris W. Rea
    Commented Dec 13, 2013 at 16:20

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