Question

Why do borrowers and commercial banks often prefer an Equitable Mortgage over a formal Simple/Registered Mortgage for credit facilities?

A Because an equitable mortgage waives the requirement for the borrower to repay the principal amount.
B Because it eliminates the bank's right to enforce security under the SARFAESI Act, 2002.
C Because it involves lower stamp duty/registration overheads, faster execution, and minimal legal documentation while maintaining strong security.
D Because it transfers the property ownership directly to the bank until the loan is fully repaid.
E Because it allows the borrower to freely sell the property without notifying or clearing the bank's dues.
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