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francis (CHIEF)     02 December 2017

Collateral Security

Respected Counsels

I have availed loan from nationalised bank using my property papers as security.Loan have been continuing for 3 years.My friend is running a good business he is need of loan but doesn't have security.
My queries:
Shall i give my property as collateral when my exisiting loan is going i.e., by using the same property paper.


Learning

 3 Replies

R.Ramachandran (Advocate)     03 December 2017

If you use the same property, which you have already given to the Nationalised bank, YOU WILL BE COMMITTING A BIG CRIME.  YOU WILL BE LIABLE TO CRIMINAL ACTION.  Therefore, better drop your idea.

Advocate Bhartesh goyal (advocate)     03 December 2017

legally same papers can't be given for collateral

G.L.N. Prasad (Retired employee.)     03 December 2017

There is a process called parris pasu and if the present banker permits , you can explore chances of giving additional mortgage by Registration with consent of first Bank.  This according to me is simple if the other bank agrees.  It is also possible that your friend can avail same facility with your banker and this makes the process most simple.  All this subject to the fact that your property is carrying more value than your present liability.


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