Buying a house can be a great idea on a mortgage. It's better to pay EMI than rent. There are various types of mortgages. In this answer, I will explain, what is equitable mortgage: meaning and its functions
Equitable mortgage meaningEquitable Mortgage is when a person borrows money from the bank and deposits his property as a token of surety to the loan amount he has borrowed from the lender. It is also known as implied or constructive mortgage. Equitable mortgage comes under the Transfer of Property Act 1882.
Functions of equitable mortgageAt the time of application for the equitable mortgage, the borrower needs to submit the title deed of his property.
In an equitable mortgage the borrower needs to pay the stamp paper
Stamp duty is charged at an interest rate of 0.1% to 0.2% of the total loan amount.
If you fail to repay the loan amount then the bank will conduct the auctions of the property.
This is what is equitable mortgage is and its functions.
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What is Equitable Mortgage?
Gautam
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2021-03-23T13:39:33+00:00 2021-03-23T13:39:33+00:00Comment
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