How bank make loan against property secure,in india???

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Dipesh

Student

25 Points Posted on 12 August 2016

How the bank make the loan given on property in India secure, as I only came to know that they only keep original property document and give loan.Then there is obvious that a person can make duplicate by making any excuse like loss,theft..and can take new loan for same property, could anyone please make me know how it is secured. As in case of vehicle hypothetication in name of banker made in RC of vehicle, and even if he tries to make copy, copy will contain lender name. I exactly want to know as like hypotheciation in the name of banker is in RC of vehcile what is done in RC of property so that property remains locked till he make repayment.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 12 August 2016

The Charge of Loan as mortgage is entered in the register of Sub-Registrar of assurances, which gets reflected whenever any search is carried of the property. Even duplicate documents are not issued.

Dipesh

Student

25 Points Posted on 12 August 2016

Sir, could you provide me some refrence to the act or procedure mentioned for mortage So I can have it as the fact to prove.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 12 August 2016

There are mainly two types of Home loans given by banks: 1. Home loan and 2. Loan against property.

Loan against property is a collateral loan wherein as I said before charge is entered in the Sub-Registrar's registered. For more details, you may check :: www mondaq.com/india/x/16866/Financial+Services/Registration+of+a+Memorandum+of+Mortgage+by+Deposit+of+Title+Deeds

Where as for first type of loan some states like Gujarat, Maharashtra, Tamilnanu have started for compulsory registration of such loan deeds, and others are following.