I am a salaried employee in the highest tax bracket with very good credit history. I booked a property and got a discounted rate on condition that the full disbursement would be made within December. I applied for loan in November at a government bank. They promised quick action but were painfully slow in processing. Finally I got the loan sanction letter in first week of January. Just after I signed all documents and sent them, they announced that there is a hike in r/i and a new sanction letter will be issued. I agreed to that too. But now they are asking for a undated blank check as security, apart from seventeen EMI checks. This inspite of the fact that the property is under mortgage with the bank. My question:
1) Can a bank ask for a undated, blank check? Is it a common practice? The mention of the blank check is nowhere in the loan documents that I have signed. The demand has been made verbally, but they won't disburse the amount till they get this check.
2) What options do I have at this stage, because it is already late by more than a month and going to another bank will again take a lot of time.
