What are the provisions of Mortgage/ Collateral/ Security with regards to Home Loans?
The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. In case the property is under construction, then an additional interim security may be required. The customers need to ensure that the title to the property is clear, marketable and free from encumbrance and any legal hassle. In short, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.
