Can I withdraw SBI lien amount?

Have you opened your account details and seen that there is a ‘lien account’ marked ? You start to panic as you think you might have to pay penalties for it. Before understanding how to check lien amount in SBI YONO app, let us focus on what Lien means. This means “lock,” and in SBI, the amount that has been locked by the bank is represented by the lien amount.

Is SBI bank safe to keep money?

It’s your best chance to at least keep some of the money involved. Lending money is risky, which is why lenders often protect their investments with liens. Liens are legal filings that allow lenders to claim property if the borrower defaults on repayment. It is important to understand that liens are a legal mechanism for enforcing a loan. Once you make sure that all of these measures are taken, you can absolutely avoid lien marks being put on your bank account.

How do I get a lien removed?

We are here to make it easier for you and break down the lien amount and how to tackle this term. To withdraw the lien amount in SBI, initially, you will have to remove the lien from your account. Once the bank resolves the issues and the lien mark is terminated, you get the option to withdraw the lien amount. If the lien mark exists towards a credit card, you can either contact the Kotak bank executive or terminate your card to uplift the lien mark. A floating lien can be used by a creditor if the subject of the lien has an unfixed value.

The secured nature of these liens means that customers have a cushion during financial hardships. According to a report by CRISIL, customers with liens on FDs have a 30% lower default rate compared to those without. Liens on FDs offer several benefits to both banks and customers. For customers, it allows them to access funds while keeping their FDs as collateral.

Liens on fixed deposits (FDs) are another common practice in banking. When customers take loans against their FDs, banks place liens on these deposits until the loan is repaid. According to a study by the Indian Banks Association, approximately 12% of all FDs in India have liens, with an average lien amount of ₹75 lakh. Once you pay all the dues at the SBI branch, the bank will remove the lien mark from your amount or account.

Based on the analysis, we help you discover loans and credit cards best suited for your credit profile. We help you understand your Credit Profile, Credit Information Report (CIR) and know where you stand. We ensure that you have a better shot at getting an approval for a loan or credit card you apply since we match the lender’s criteria to your credit profile.

If you have paid all of your dues and have absolutely no amount pending then in this case there might be a system error. The best option in this case is to visit the bank and find out the relevant reason and remove the lien mark from your bank account. In some cases, you will have to visit the bank and you will also have to speak to the branch manager to understand the entire process and resolve the situation. Now to make the process simpler for you, we will walk you through how you can remove the lien amount from a few banks. If you what is lien amount in sbi don’t know why there is a lien mark, speak with your dedicated bank executive. If you visit the bank branch with your account on, you can call the customer care executive via a toll-free number.

what is lien amount in sbi

When the borrower permits the lender to lock the amount in accordance with the recovery of money is called a lien mark. This happens mostly when the borrower fails to repay the amount in the given period of time as per the agreed terms and conditions. Managing your bank account can sometimes feel like deciphering a puzzle. One such puzzle—especially if you hold an account with the State Bank of India (SBI)—is understanding the concept of a lien amount. Whether you are a seasoned account holder or a new customer, having clarity about liens on your account can save you both time and stress while ensuring you fully access your funds. State Bank of India (SBI) takes around hours to remove the lien marked on the account.

How to check and remove Lien Amount on my SBI Account – FAQs:

He then visited his local SBI branch and explained the situation to a customer service representative. Following a written request and a few follow-up calls, the bank verified the details and removed the lien from his account within a week. Ravi’s prompt action and careful documentation not only safeguarded his finances but also ensured his credit and account accessibility remained intact.

There is limited legal protection for those who cannot pay a lien depending on the context. In most states, there is a homestead exception law that protects a borrower’s property from creditors even if the borrower is unable to pay the lien. In the context of Chapter Seven Bankruptcy, a borrower can remove a portion of their debt if the lien is judicial, but generally only for a certain amount of time. For all other cases like non-payment of taxes, skipped EMI towards SBI loan, etc., you will have to pay the default amount and applicable interest to lift the lien.

The Role of Lien in Modern Banking

  • By following these steps, you should be able to clear the lien hold amount in your SBI account efficiently.
  • Sometimes you withdraw money from the ATM but if that money is not debited from your bank account then the bank freezes or locks your account till the problem is resolved.
  • When customers take loans against their FDs, banks place liens on these deposits until the loan is repaid.
  • The “lien amount” refers to the specific sum secured by the lien.

Your debt has been satisfied, the lien removed and you can access your bank account as usual. Banks, lenders or any other creditors first must show a court that the conditions of the contract have been met. Once issued, it transforms the lien from a potential claim on your property into partial ownership of the underlying asset. Liens can be voluntary or consensual, such as a lien on a property for a loan. However, involuntary or statutory liens exist whereby a creditor seeks legal action for nonpayment. But you still can use the remaining amount in your bank account in spite of having the lien mark.

I have done all my payments and nothing is pending, still the bank has put a lien mark on my account why so ?

  • Let’s understand this with a real-life example using actual numbers.
  • This is also applicable to Loan accounts where you are a Guarantor.
  • Sometimes, the process also takes up to 7 working days after you take the necessary steps to resolve the issue.
  • Knowing that this lien was inadvertently causing him inconvenience, Ravi gathered all relevant documents, including his loan repayment receipts and updated account statements.

There are five types of liens that are imposed in SBI accounts, typically placed to secure outstanding dues or obligations. A lien is a judgment or legal right in respect of properties that are usually used as collateral to pay a debt. A lien helps to protect an underlying obligation, such as repaying a loan. Lien amount is a type of hold which SBI exercises against your account if you have any loan repayment or another kind of repayment dues. Usually before putting the lien amount or hold bank should inform you.

How can I know my balance in SBI account?

The amount will still stay in your bank account inspired of being locked or freezed but you will not be able to withdraw that amount or even transfer that amount to another account. So basically the bank authorities restrict this amount from being used for a specific period of time. The lien amount will stay frozen until the bank authorities decide to remove the lock from your bank account. Also, there is absolutely no specific limit to the locked amount.

However, due to an administrative hiccup, a lien was placed on his account even after he began the repayment process. Often, when you take a collateral-backed loan or if you have an overdraft facility, the bank might secure a portion of your funds as collateral. Once you clear the entire loan or regularly maintain the overdraft account, the lien is typically removed. Lien Amounts are placed by SBI on your account against Virtual Cards, loans taken against term deposits, unpaid or overdue EMIs, or any tax liability that is still unpaid. You are not able to pay your EMI even after notice from the bank. Bank can put a lien on your car as well as the balance of your bank account for payment of EMI.

Sometimes, the process also takes up to 7 working days after you take the necessary steps to resolve the issue. A lien amount in SBI is a sum of money that SBI ‘locks’ on an account holder’s funds, making it unable to withdraw until the lien is lifted. Generally speaking, a lien amount is a portion of funds held or frozen by SBI, either due to low minimum balances or loan-related security requirements.