Milind Ghag 02 January 2025

Mortgaged loan by co operative society

Dear experts,

We stay in kdmc thane, we want to regularize our housing society which is registered. For this purpose we want to raise a loan. So we decided (in meeting) to mortgage our land which is in the name of society.

Is it possible? What are the laws and rules of this? What documents are needed? What is the repayment method bcoz housing society is non profit organaization which manage the day to day society expense.

Please enlighten on this, experts

And sorry if there is any wrong choice of words.

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3 Replies

T. Kalaiselvan, Advocate (Advocate) 02 January 2025

This involves practical issues and related questions which need to be addressed by a local consultant to guide you properly.

You may engage the services of an experienced consultant in the local for all such further issues.

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Lavanya Malhotra 03 January 2025

If your registered housing society wants to raise a loan by mortgaging land owned by the society, it is possible under certain conditions. However, you need to check applicable cooperative laws, society bylaws, and obtain the necessary approvals from members and authorities. Key documents like society resolutions, title deeds, and NOCs will be required.

Since societies are non-profit entities, the repayment method must align with the rules governing cooperative societies, which can be complex. It’s strongly recommended to consult a legal professional to navigate this process and ensure compliance with all legal requirements.

Feel free to reach out at prachi@lawfinitysolutions.com for guidance and any assistance with this matter.