Educational loan query

Equitable Mortgauge means title of property is deposited with the financer untill loan is repaid.

Collateral mortgauge means additional security for repayment of loan amount .

For educational loan no need for any kind of mortgauge.

Without any thing written that was not considered as mortgauge.

 

If some one deposits the title deeds of the property for offering it as security to others and then addressing in the form of a letter (usually called memorandum) after such deposit of title deeds, it is treated as Equitable mortgage.  The memorandum never speaks of specific amount of loan.

It needs no Registration.  Now some states  stipulated registering the memorandums also.

Banks can accept any property as security for amount advanced and depositing such title deeds with an expression :we intend to avail a loan and deposited the title deeds as security already to you in the form of memorandum, stating such title deeds in schedule amounts to equitable mortgage.

If your query is that bank has accepted that deposit title deeds as security for advancing of educational loan to you, and they have taken only the title deeds and a letter, and whether you are bound to repay the amount ignoring the equitable mortgage and whether you can sell or alienate the property without repayment of loan, then you have to go through sanction terms and conditions.  

The bank records in their register, which is signed by a competent officials that so and so called on the bank, and deposited his title deeds to create mortgage for security of such loan on such and such date.

If the bank has taken proper precautions laid down, you have to repay the loan as it is a bonafide and legal mortgage. .  If you sell the property, concealing the facts the Bank and as well the purchaser can proceed gainst you for cheating.

@ adv. Bharat- thank you for your reply sir. @Mr. GLB prasad- bank has concealed all documents from us and applied serfaesi act after knowing that the student is suffering from schizophrenia. Just to recover the amount even after we were very much willing to pay the loan back. The bank did not follow any rules or regulations, they announced NPA account without any prior notice just to dispose off our loan case. The bank managers never talked to us and concealed all documents.

As bank not informed you by way of notice & declared it as NPA then you can proceed against the authority for cheating. You may give notice through lawyer for the same.

Please consult advocate locally in the matter and decide as you are not coming out with facts.  Bankers'  have a general lien on all securities offered by borrower and for creating Equitable mortgage, a mere deposit of title deed is enough. (That means if the title deeds are available with the bank, then comes the question as to how your title deeds found a place on bank record)  It is always proper to negotiate the terms with the bank rather than thinking about ways to avoid responsibility and getting title deeds from the Bank.  It will be a futile exercise for a common man to proceed against a Bank who might have seen several such cases in decades of theri experience and equipped with good lawyers and even their lawyer's fees has to be debited to the account and recoverable only from borrower.  When Mallayas and roys can not escape , a common man can not escape , now as the focus is only on recovery by the banks.  Further, if your account gets NPA, due to poor rating (CRIBIL), you can never raise single rupee loan from any financial institution in future.  Think in proper direction. as your can in no way escape a Bank liability .

@ mr.glb prasad- sir, who said that we, the common man is ever trying to escape the responsibility. But for sure the sole responsibility is not that of the borrower. Just because the bank sanctioned an education loan doesn't mean that they are gods and that we are culprit. I would here like to name also the bank, its bank of india that did all this misleading to us. Under genuine cases the bank cannot snatch the livelihoods of people. You are quoting an example of mallya, you must and should know what all these bank strategies are all about. It is a big scam the bank caress the powerful people and exploit the mango people. Only because they have the power and therefore can misuse it. Are you not ignoring the fact that RBI governor itself quoted that there are some cases which are genuine and these cases are being manhandled by the bank officials. The common man keeps on making rounds if courts for years for getting justice and people like mallya settle abroad quietly. HOW CAN YOU EVER TAKE THE SIDE OF BANKS WITHOUT EVEN KNOWING THE FACTS. IF YOU ARE A PANELIST OF THE BANK OR ANYINE RELATED THEN YES I CAN DEFINITELY UNDERSTAND. BUT OTHERWISE THERE IS NO WAY COMPARING THESE CASES WITH THAT OF FRAUDSTERS LIKE MALLYA. THIS STUDENT IS SUFFERING FROM SCHIZOPHRENIA, SEE MY REPLY BEFORE THIS., CAN YOU IGNORE THIS FACT TOO? BANKS ARE NOT GODS, IN FACT THEY ARE MORDERN DAY LOOTERS SINCE THEY DON'T FOLLOW ANY RULES OR REGULATIONS. THEY JUST FIND THE LOOP HOLES IN LAW SO THAT THEY CAN FULFILL THEIR OWN PERSONAL AMBITIONS. WHAT MORE IS THERE TO SAY, I HAVE PROOF AGAINST THE BANK AS THEY ARE INVOLVED IN A BIG SCAM HERE.

What you actually mean to say mr. Gln prasad, is also that taking an education loan is a crime? You must be thinking that when a common man takes a loan its a heinous crime?

Don't take advice of expert other wise we were here to help you.

Don't take advice of expert otherwise. We here help you only.

I never said that taking a loan is crime, unless one obtains a loan, the bank can not earn profit, as they have to pay interest to depositor. Just imagine the Bank pays 8% rate of interest to depositors and 40% of the amount earns interest of less than 5%, rest of the 6% may earn interest of maximum 12% interest. The establishment costs are minimum 4% of turn over. That means even if 10% borrowers go bad, the bank feels the strain and pressure. This is approximately the concept. Honestly, I feel that who can afford to repay but fails to repay and wishes to enjoy Public funds for a cheapter rate is Criminal, though he might be serving the country, creating employment, promoted several cultural activies, sponsorships also. How many persons treat Mallah or Roy as criminals ? In he past, educational loan concept is not there, now they are getting 100% interest waiver during moritorium period of the loan. Now, those who can not even afford, irrespective of their standards are joning the institutions, and in some states educational institutions are luring the students to join their courses, exempting attendance, providing higher marks in examinations, as they have to get minimum students as break even, and they might have invested crores in real estate. In case the students fail to get employment or becomes a default, he is branded in CRIBIL and he can not get loans for House, vehicle or any type of business. Those who avail advance must think what if the plans go wrong and what will be adverse affect. Because they are easily getting a loan now, one should not be tempted and experience loss of mental peace. Just google for the defaulters in educational loan in banks, it is alarming. This is neither good for borrower or for bank or for the system. When one opinion is given, it should not be treated as specific to the person, what we express is general in nature and even without knowing it is most discourteous to assume things. Hope you will understand and take guidance in right perspective, as we never intend any bad to any of our member, though an experienced person can get what is in mind of the poster. Our endeavour is not to blame the system, not to find loop holes in the system, always do what ever you can do individually as a responsible citizen. (here, once again You is general in coversation)

We have a decent culture and treat a tree,  meanest animal , air, filre as Gods and those who helps a man in education or to show a way of living is definitely God as per Hindu culture.  My point is why and how title deeds were in possession of the Bank ?  Are they extorting the money or insisting you to repay the money borrowed  as you have derived a benefit out of the funds and it is their duty to recover the amounts under sama, bheda, dana or dandopaya ?, whose funds they have given to you in trusting you, Are they not accountable for the Public who deposited ?.  I am not an advocate and just a common man, and do not assume things which I never meant..

In your entire posts, there is not even one word about repayment of the loan, but you are concerned with title deeds lying with the Bank, which are in no way useful to them for the present.

Out of 15 lacs of loan amount 12 lacs has already been paid. Bank simply declared NPA not served any notice. Education loan is always considered a soft loan and therefore they always have a collateral security and not an actual mortgage. THIS IS WHAT I HAVE LEARNT. Why banks are not questioned? I am not saying that people should not pay back the loan. But the bank does not have a right to play with anyone's livelihood. The banks these days are given orders by their topmost officials to just declare NPAs instead of finding a solution especially in cases which might be genuine and beyond control situation. Afterall if the financial institutions themselves be looters where will the public rely? On their own fates? Their are so many guidelines which a bank should follow before randomly declaring any account as NPA.

This Sarfeasi act they take as the solution to all problems. One shot in and the problem disappears. Someone please go to their homes and ask them what would they do if their son or daughter on whose basis they have taken the education loan gets under some unavoidable circumstances, like schizophrenia in this case? The student cannot pay the loan amount now, we only asked them for some time and nothing else. Just the moratorium period.