Mortgage loans
Samba Murthy Madeti
(Querist) 10 April 2016
This query is : Resolved
Hello,
I would like to know the best way to mortgage a property in case of lending money.
I would like to give amount to my friend and I do not have any money lending license. He wants money and I am planning to I've him for a nominal interest rate.
Can anyone let me know if I can lend him money for a nominal rate of interest and also the best way of mortgage I can mortgage his property as security.
I need complete control over property and would like to avoid further issues.
Thanks,
P. Venu
(Expert) 11 April 2016
Why you want to expropriate the borrower's property, if you are really his friend.
It appears that you are in search for shortcuts to avoid rigours of money lending business.
It is beyond the status and dignity of this forum to assist or endorse unethical practices.
Samba Murthy Madeti
(Querist) 11 April 2016
Sir,
I am not sure if anyone lends huge amounts with out having any property as surety.
As an advocate I was expecting someone to suggest me on being at safer side. Yes I am rigorous of lending my money as it was my hard earned money and would like to be of atmost care as I had earned and saved it for more than 5 years. I was asking for best way to mortgage property and be on a safer side. I am an income tax assesses and declare everything for tax.
I had bad experiences previously and am in search of suggestions. You would have replied saying you need a money lending licence in case it is required. I thought it would not be required if I am lending to a single person.
Thanks for your reply thou.
Adv. Yogen Kakade
(Expert) 11 April 2016
You have to execute a mortgage deed mentioning the terms decided and get it registered at the office of the sub-registrar. No other option to secure the transaction.
Adv. Yogen Kakade
Jurycon Incorporation
Advocates & Consultants
Email: juryconincorporation@gmail.com
Web: www.juryconn.in Call: 020-65248888 / 09225510883
H.M.Patnaik
(Expert) 11 April 2016
Mortgage Deed is a must to be executed to secure the transaction in the given circumstance.
Samba Murthy Madeti
(Querist) 11 April 2016
Sir,
Thank You very much for the Reply. But I need a suggestion on what Kind of Mortgage is better? Is it Simple Mortgage any other mortgage that would help me more.
Thanks,
Rajendra K Goyal
(Expert) 11 April 2016
Equatable mortgage is equally effective if yours is a notified center.
You can go for registered mortgage which is bit costly process.
can get post dated cheques or can get promissory note for the amount given.
Samba Murthy Madeti
(Querist) 11 April 2016
Ok Sir,
Thank You very much for your suggestion. I would go for a registered mortgage even if it is little expensive. That should not be a major issue for me.
Apart, what is a notified center? Please can you explain.
Thank You again every one for your valuable suggestions.
malipeddi jaggarao
(Expert) 11 April 2016
Notified center relates to equitable mortgage. As you are going for registered mortgage which is the best way, forget about notified center and get the simple mortgage registered in relevant sub-registrar office.
Rajendra K Goyal
(Expert) 13 April 2016
Equitable Mortgage under Section 58(f) of TP Act is that the mortgagor should deliver the title deeds at some notified place with an intention to create mortgage.
This notification of centers is done by State Government concerned.
