Indian Company Master Data Made Simple

Skip to main content

Mortgage

3 min read

Quick Summary

A mortgage is the transfer of an interest in immovable property to secure the repayment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement.

A mortgage is the transfer of an interest in immovable property to secure the repayment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement.

Key Characteristics

  • Transfer of interest in immovable property
  • Six types: Simple, Mortgage by deposit, Usufructuary, English, Equitable, Anomalous
  • Mortgage deed must be registered if principal > ₹100

Legal Framework

Right of redemption available to mortgagor

Key Points

  • Transfer of interest in immovable property
  • Six types: Simple, Mortgage by deposit, Usufructuary, English, Equitable, Anomalous
  • Mortgage deed must be registered if principal > ₹100
  • Mortgagor retains possession (in most types)
  • Mortgagee can foreclose on default
  • Right of redemption available to mortgagor

Frequently Asked Questions

What is the most common type of mortgage in India?

What is the difference between mortgage and charge?

Can a mortgaged property be sold?

What is the right of redemption?