I want to lend money for against property mortagage

Querist : Anonymous (Querist) 12 December 2020 This query is : Resolved
Dear Sir,

A person approached me for borrowing money for interest with property mortagage facility. I agreed to lend money for interest against Property(Land) Mortage. What are the precautions i need to take in lending money and documentations to safe guard my money.
I request to advice on this.

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Quick Summary

If you're considering lending money with a property mortgage as security, it's crucial to take specific precautions. You'll need to verify the property's status and check for any existing encumbrances by obtaining an Encumbrance Certificate (EC) for at least 30 years. Ensure the mortgage deed clearly states the annual interest rate or alternative profit-sharing arrangements, the repayment period, and the loan amount. Consulting with a qualified document writer or local lawyer is highly recommended to draft and register the deed correctly at the Sub-Registrar's Office (SRO), and ensure you have the necessary money lending license.

Guest (Expert) 12 December 2020
An Money Lender would certainly afford to discuss in detail with an Local Advocate

kavksatyanarayana (Expert) 12 December 2020
First, obtain whether the property is plain land or assigned/govt. land and an EC for 30 years to know whether there are any encumbrances or not from SRO concerned. In the mortgage deed, you have to mention the rate of interest for the annum. Or you can take the gains of the land instead of interest. Both you mutually decide the terms of interest, the period for repayment, amount, etc. A senior Document writer/a local lawyer who drafts the deeds and register the same at SRO concerned.

Rajendra K Goyal (Expert) 13 December 2020
You can proceed if having proper money lending license.

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