How Can I Release My Home Document from the Bank While Repaying My Education Loan?

I have an education loan with INDIAN BANK. I took a principal loan amount of Rs. 261,000 in February 2010. After completing my education, I began repaying the loan. Currently, my outstanding principal is Rs. 200,000.

While taking the loan, I provided two documents as mortgage:

1. Land document (owned by my mother)
2. Home document (owned by my aunt)

Due to some family issues, I now wish to release the second home document from the bank. I have requested the bank to provide me with the second document, and I have informed them that I am willing to clear 30% of the principal amount of my loan in one payment. Currently, I have no EMI bounces. However, the bank is refusing to release the second document and insists that I close the loan first.

According to INDIAN BANK rules, they should not take any security deposit if the loan amount is below 4 lakhs.

I would like to know if there is a specific process I need to follow to achieve this or what steps I should take next. Please suggest how I can proceed. I am eagerly awaiting your valuable advice. Please help.

Thank you,

Regards, Goutam Pradhan
[Phone Number Removed For Privacy Reasons]

Dear,

There is no thumb rule in banking. The rules are general and can differ from case to case. You can't insist the bank to release any security against the sanctioned terms and conditions. You must have a copy of the bank's sanction letter, please go through it. There must be a condition regarding the release of the offered security.

A. Prakash