Providing loan to the plot owner
vignesh k
(Querist) 12 July 2012
This query is : Resolved
Dear sir,
As one of my friend who is owning an property need loan of 20000 as i am ready to provide him and he is pledging the land document to me so what type of agreement should be made and for how many years will it be valid and as per rule what should be the rate of interest .please reply
ajay sethi
(Expert) 12 July 2012
since original documents are being deposited with you an equitable mortgage is being created on the property .
memorandum should be executed mentioning the deposit of title deeds . it should be stamped
rate of interest etc are to be decided by parties
vignesh k
(Querist) 12 July 2012
dear sir,
can you describe in simple words and can i grant him loan or not and what type of memorandum should be prepared and were it should be stamped please let me know waiting for your great reply
ajay sethi
(Expert) 12 July 2012
yes you cna grant him loan . take original papers of property .
mention the receipt of orgiinal documents of property(complete details)as security for repayment of loan of rs _______ payable by ____ with interest at ________%
vignesh k
(Querist) 12 July 2012
dear sir,
thanks a lot it was an great helpful tip to me
ashutosh mishra
(Expert) 12 July 2012
Sethi sir is right.
But i wish you check first if the area where transaction has to go and the plot situate is notified for creation of equitable mortgage;more so if the plot is agricultural
then also check that state land law does not prohibit creation of mortgage.
vignesh k
(Querist) 12 July 2012
dear sir,
The property is situated in Bangalore near banasawadi limit and what are the documents to be collected and on what value agreement paper should be made and as per rule how much interest can be charged and do all the memebers of the family should sign or only the property owner?
ashutosh mishra
(Expert) 12 July 2012
All matters you are querying relates to state laws of Karnataka and only advocates practicing there can speak correctly.
Me from UP being unaware with stamp duties payable in Karnataka.
If it is a simple transaction of loan then why are you not lending through a bank cheque;
and receiving back the payment also through his cheque.
In case you are interested in his land after his default better enter into a conditional agreement to sale on default.
Mind that many states have legislated laws regulating money lending,Karnatka be one among them.
So one has to address several laws that too local states law in your matter.Better consult some one local.
V R SHROFF
(Expert) 12 July 2012
Atrocity :
If land belong to Adivasi etc, u need collector permission & in any case Mortgage deed need registration.
As Ashutosh suggested, , get Pro Note/ Pay by Cheque, and get a PDC , renewable every 3 months, to safeguard ur interest.
