Know Me In Mortgage Says The Property, Before You Pledge Me

Posted by Ushali mishra on September 12th, 2019

Know Me In Mortgage Says The Property Before You Pledge Me

It is important to understand the importance of property in the mortgage loan, as a property is the only base in the mortgage that is provided as collateral to secure the loan from lender bank/NBFC. There are numerous properties that cannot be pledged as collateral for a mortgage loan. Below mentioned is the list of such properties which cannot be mortgaged.

1) Third-party ownership property.

2) SRA property which has not completed a minimum age of 10 years.

3) Pagadi property. No direct funding is allowed on the pagadi property. However, there are banks who consider the pagaadi property as a supportive property in order to increase the loan amount.

4) Old structures/buildings where the age of the property has expired.

5) Illegal property cannot be a mortgage.

6) Raw houses / chawl property cannot be the mortgage.

7) A property which has a notarized agreement cannot be a mortgage.

8) Government allotted quarters cannot be mortgage.

9) A rented property cannot be mortgage.

10) A property ownership transferred through gift deed where after – no stamp duty and registration is paid, such property cannot be mortgage.

11) MHADA/CIDCO/MMRDA/ or any other government property wherein the clause in the agreement states that the title of the property cannot be sold or mortgage.

12) Each bank Banks/NBFCs has their own list of negative areas for funding. A property in such area cannot be mortgage.

13) Banks have their own norms on the requirement of minimum square feet area for funding. If the property area does not satisfy the bank’s criteria it cannot be mortgage.

14) A property whose property papers are missing (lost, misplaced, stolen or damaged) cannot be mortgage.

15) A residential property converted to commercial/office use cannot be mortgage, unless it has the BMC approval & the property tax in paid in commercial name.

16) A property having suit filed against it, cannot be mortgage unless the clearance from the court and the society justifies the suit.

read more aboyt Mortgage loan 


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Ushali mishra

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Ushali mishra
Joined: August 30th, 2019
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