Loan
Madhur Singh
(Querist) 19 March 2013
This query is : Resolved
Respected Sir,
For obtaining Limit Loan for the commercial shop from district co operative bank, can Agricultural land(khasra and khatauni) be accepted for creation of equitable mortgage there on as security for its advances/ loans?
ajay sethi
(Expert) 19 March 2013
you can mortgage agricultural land for obtaining loan . please cross check with your bank as to the formailites involved
ajay sethi
(Expert) 19 March 2013
for instance union bank gives loan to meet the production, investment and consumption needs of the farmer, i.e. cultivation of crop, purchase of farm equipments, etc., allied activities and consumption needs like marriage, medical treatment, education, etc.
To cover farmers having proven track record and also new farmers who are either not availing any loan or if availing finance from some other Bank, can be taken over if the repayment record is clean and their existing loan account is standard asset.
prabhakar singh
(Expert) 19 March 2013
Mr.Sethi is right in the sphere he is speaking about.
But your question is:"can Agricultural land(khasra and khatauni) be accepted for creation of equitable mortgage there on as security for its advances/ loans? "
Then my answer is NO to it.
Because you wish to create an equitable mortgage which in India is governed by section 96 of the Transfer of property Act,reproduced below:
"1[96. Mortgage by deposit of title-deeds.—The provisions herein before contained which apply to a simple mortgage shall, so far as may be, apply to a mortgage by deposit of title-deeds.]"
Then unless you have purchased this land by a registered sale deed and want to deposit
that very sale deed NO EQUITABLE MORTGAGE WOULD BE POSSIBLE IN YOUR CASE.TO say further the place where the deposit is to take place must be a notified area duly gazetted by government.
HENCE IN YOUR CASE A REGISTERED MORTGAGE DEED WOULD BE THE ONLY OPTION.
YOUR DESIRE TO SAVE STAMP DUTY CAN BE FULFILLED ONLY WHEN YOU HAVE A SALE DEED IN YOUR OR IN YOUR PREDECESSOR FAVOR.
IF PROPERTY WAS INHERITED BY YOU THEN NO EQUITABLE MORTGAGE CAN TAKE PLACE AS YOU DO NOT HAVE ANY TITLE DEED TO DEPOSIT .
Raj Kumar Makkad
(Expert) 19 March 2013
As the land is to be mortgaged for collateral security for commercial loan so it is required to be registered mortgaged, however, had it been for loan by farmer himself, then he need not to get it mortgaged in Haryana with land Mortgage bank up to 2 Acre of land.
