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Power Of Attorney: Meaning, Eligibility For Home Loan

Jan 04, 2024
Power Of Attorney: Meaning, Eligibility For Home Loan

In the realm of legal and financial affairs, POA is a widely used term, but what is POA’s full form? It’s Power of Attorney, which stands as a vital document. Essentially, it provides an individual with the authority to make decisions on behalf of another person. The significance of Power of Attorney lies in its ability to empower individuals, facilitating the seamless navigation of complex legal and financial landscapes. This becomes particularly crucial in situations where direct personal involvement poses challenges. Whether grappling with intricate legal intricacies or complex financial transactions, this article aims to help you understand the Power of Attorney’s meaning, exploring different types, and how it works.

What is a Power of Attorney?

Power of Attorney definition includes granting someone else the authority to make binding decisions on your behalf when you may be unable to make sound judgments. The person or entity providing this authority is known as the principal, grantor, or donor, while the recipient of this power is referred to as the attorney, grantee, or donee. The terms and conditions of the Power of Attorney are explicitly outlined, often allowing for various financial matters, such as obtaining a home loan on power of attorney, or power of attorney for property, to be addressed during the grantor's absence.

Types of Power of Attorney (POA)

Power of Attorney (POA) exists in diverse types, each designed for specific needs and situations, offering a range of decision-making authority based on the unique requirements of the grantor and the circumstances at hand. Due to the broad spectrum of situations, different types of POA offer flexibility and customization in delegating authority.

Conventional Power of Attorney

Conventional Power of Attorney, or General Power of Attorney, is specific to limited responsibilities for a defined period. It grants authority to make business and personal decisions, such as signing a sale deed, when the grantor is unavailable.

Durable Power of Attorney

Durable Power of Attorney endures a lifetime, enabling decisions in the grantor's incapacitation. It lasts unless revoked by the grantor, managing affairs like investment portfolios.

Springing Power of Attorney

Springing Power of Attorney activates under specific events or conditions during the grantor's incapacitation, suitable for situations like a military person appointing an agent during deployment.

Medical Power of Attorney

Medical Power of Attorney encompasses durable and springing types, primarily addressing healthcare decisions. Agents handle medical bills but require specified authority for life support decisions in the absence of instructions.

How a Power of Attorney (POA) Works?

A Power of Attorney (POA) is commonly used when someone is unable to handle their affairs due to incapacitation. This legal document grants specific tasks to the appointed person, allowing them to manage responsibilities like home loans and financial matters. The principal, who appoints the attorney-in-fact, retains the ability to revoke or replace the POA at any time.

However, the assigned POA remains effective until the attorney-in-fact:

  • Resigns
  • Passes away
  • The principal revokes their appointment

In certain situations, such as incompetence due to illness or injury, no one else can take over the role as all powers have been withdrawn.

Who Can Be Chosen as the Power of Attorney (POA)?

Understanding how to get Power of Attorney is crucial for making informed decisions. In India, the chosen power of attorney must:

  • A resident and Indian citizen
  • A legal resident residing in the country for at least 181 days during a financial year
  • The appointed POA should be at least 18 years old
  • Possess the mental capacity to comprehend the associated responsibilities

How can Power of Attorney help in Home Loans?

Banks typically do not directly offer loans to individuals holding a Power of Attorney (POA). However, homeowners can apply for a home loan on Power of Attorney, a method often employed by non-resident Indians (NRIs) for loan approval.

While the approval criteria for a power of attorney may vary among banks in India, some general requirements include:

Residency Power of attorney holders must be residents of India.
Execution Of POA The POA must be executed on non-judicial stamp paper of appropriate value in the state where it is valid, and it should be notarized.
Passport-size Photographs Paste the POA holder's photographs, attested by both the executor and maker of the POA.
Attestation Signatures of the POA executant should be attested by a Judicial Magistrate or Notary Public.
Signature On Every Page The executor of the POA must sign every page of the document.

Meeting these criteria ensures that the power of attorney is valid and aligns with the specific requirements of the bank from which the loan is sought.


A Power of Attorney becomes crucial when acquiring property or its registration, securing home loans, or executing legal transactions in your absence. This holds particular significance for Non-Residential Indians (NRIs), for whom certain laws may not directly apply.

By appointing an agent or proxy through POA, you empower them to act on your behalf, facilitating the property purchase process by executing essential documents and ensuring a smooth transaction in your absence. Thus, in this journey towards property ownership, let SMFG Grihashakti be your trusted financial partner. With SMFG Grihashakti Home Loans, your dream home is within reach, and we are here to support you every step of the way.


What is a Power of Attorney?

A Power of Attorney is a legal document granting someone the authority to make decisions on behalf of another person. It empowers an appointed agent to act in financial, property, or legal matters when the person granting the authority is unable or prefers not to handle these decisions directly, ensuring a designated representative can manage affairs efficiently.

Who can override a power of attorney?

The person who granted the Power of Attorney (POA) can override it. They have the authority to revoke or modify the POA at any time, as long as they are mentally competent. Yet, if the principal lacks mental capacity, a family member or guardian can take measures to supersede a Power of Attorney.

Can a person appoint more than one power of attorney?

Yes, a person can appoint more than one Power of Attorney (POA) simultaneously. Each appointed agent may have specific responsibilities or areas of authority, as long as the grantee is above 18 years of age, and is of sound mind. The document must clearly outline the roles and responsibilities of each agent to avoid confusion.

What is the purpose of the power of attorney?

The purpose of a Power of Attorney (POA) is to grant someone the legal authority to make decisions on behalf of another person. It is commonly used for managing financial, property, or legal matters when the person granting the authority is unable to or prefers not to handle these decisions directly.

What are the types of power of attorney?

Power of Attorney comes in various types, including Conventional POA, Durable POA, Springing POA, and Medical POA, each serving specific purposes based on the unique needs and circumstances of the grantor.

What is the best form of power of attorney?

The best form depends on specific needs. A general durable POA is often recommended as it remains effective even if the grantor becomes incapacitated, ensuring continuity of decision-making. The principal can also decide to limit or add powers.

How long is a power of attorney valid?

A General Power of Attorney typically remains valid throughout the principal's life. However, if needed and explicitly stated, it can be revoked or expired early, allowing flexibility in tailoring the document to meet specific requirements or circumstances as outlined by the grantor.

What happens if you lack a power of attorney (POA)?

Without a Power of Attorney, decision-making can be challenging if one becomes incapacitated. Family members may need to resort to legal processes like guardianship or conservatorship, involving complex, expensive, and time-consuming proceedings.

Can we take home loans on power of attorney?

Financial institutions don't directly extend loans to Power of Attorney holders. Yet, homeowners can apply for a home loan using a Power of Attorney, a method often preferred by NRIs for loan approval in India.

What is the Eligibility to take home loan on Power of attorney?

The appointed holders should be Indian residents, residing within the country. The POA, to be valid in a particular state, needs to be executed on non-judicial stamp paper, notarized, and include photographs of the POA holder, attested by both the executor and maker. Additionally, a Judicial Magistrate or Notary Public must attest the signatures on every page.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

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