Mortguage Loan
1) The properties proposed to be mortgaged to the Bank should be evaluated properly by the competent person – civil engineers and valuation report should indicate the basis of valuation. The valuer should be authorised by the Bank.
2) Before granting advance, a nil encumbrance certificate upto date of execution of mortgage should be obtained while mortgaging the property to the Bank with the registering authority, a second encumbrance certificate which would reflect the Bank’s rights to the property, should be obtained.
3) The Bank should obtain legal opinion from its legal advisor. The legal report should contain the full description of the owner and proptery, the validity of the title deed as to whether the Mortgager has a good and marketable title to the property and is competent to create a mortgage of the property.
4) In case of Joint Holding, all the persons named in the property extract, should be members of the bank and should jointly mortgage the property to the bank. If required, the Bank should obtain a consent of all holders on a non-judicial bond.
5) The Bank shall generally dissent to grant an advance to a borrower against security of immovable property of third person/persons. If so necessary in the openion of the Board, to grant such advances, the Bank should take all necessary precautionary steps as stated in (4) above and legal opinion from its legal advisor.
6) Cash credits may also be granted against the mortgage of immovable properties.
7) If an advance is granted against immovable properties which have already been mortgaged to the Bank, a continuing mortgage letter shall be obtained.
8) The application for loan shall be in the form prescribed by the Bank. The borrower shall execute the following documents. i) Demand Pomissory Note (DPN) ii) Property Extract and E.C. iii) Mortgage Deed.(Original Title Deed should be obtained) iv) Agreement and Letter of Lien and Set off v) Property valuation Report vi) Continuing security letter and any other documents prescribed by the Bank from time to time vii) Income and Expenditure Statement of Borrower viii) Income Tax Pan Card ix) VAT Certificate or License issued by local authorities under shop and establishment Act.