When you take a loan or place a deposit as security, the bank can mark a lien on it. Releasing that lien may involve a charge. Here is what that means for Bank of India customers, and how to handle it.
What is a lien?
A lien is the bank’s legal claim on an asset or account, held as security for a loan or debt. When you borrow from Bank of India or pledge collateral, the bank usually marks a lien on that property or account. If the borrower does not repay, the bank can enforce its claim.
Lien release charges
Once the loan is repaid, you ask the bank to release the lien. Depending on the product and the bank’s schedule of charges, a fee may apply. The amount differs by the type of lien and the nature of the loan, so check the bank’s current service charges or ask your branch.
Why a fee may be charged
- It covers record keeping, verification and paperwork when the lien is released.
- It covers the administrative effort of closing the security.
How it affects borrowers
- Even a small charge can matter if money is already tight.
- Delays in releasing the lien can hold up your access to the asset or account.
- Terms differ, so read your loan agreement before you sign.
Tips to deal with it
- Ask about lien release charges when you take the loan, not at the end.
- Repay on schedule and request the release in writing once the loan is closed.
- Collect a no-dues certificate and confirmation that the lien has been removed.
- If a charge seems unfair, speak to the branch manager. Some customers have been able to negotiate or get fees waived.
- If you are not satisfied with the response, you can escalate to the bank’s grievance channel and, if needed, the RBI ombudsman.
The bottom line
Knowing how and when lien release fees apply helps you avoid surprises. Plan ahead, keep communication open with the bank and confirm the current charges with Bank of India before you act.
