Challenges of loan against property in remote rural hills
anil nautyal
(Querist) 20 January 2012
This query is : Resolved
Hi,
We are a rural finance company with a mission of maximising the financial well being of the population by providing financial services like insurance,investments & loans.We operate through thin end branches which has a specific area with a population of 10000-15000.Our flagship asset product is the retailer loan where we disburse maximum amount of 50,000/ based on the eligibility.On popular demand we are getting a new product wherein we are thinking of taking land(both commercial as well as residential land) as collateral.My querry is:
1.Can we take aggriculture land as collateral considering the geography?
2.Most of the land is on "patta",can we take it as collateral?
Kindly suggest for the smooth launch of the product
Raj Kumar Makkad
(Expert) 20 January 2012
1. Yes. There is no legal hurdle to do so.
2. You shall have to be confirmed that such land is not having any encumberance prior to moving ahead.
anil nautyal
(Querist) 21 January 2012
Thank you Sir for your reply.In case customer defaults can we enforce it in court of law?
prabhakar singh
(Expert) 21 January 2012
1.YOU ARE ADVISED TO CHECK THE STATE LAW OF LAND.
2.CHECK THE TERMS OF PATTA.
