New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    When a borrower creates a mortgage in favour of the

    lender by deposit of title deed of immovable property as security to the lender until the loan is fully repaid , it is known as ________  
    A Anomalous Mortgage Correct Answer Incorrect Answer
    B Equitable Mortgage Correct Answer Incorrect Answer
    C English Mortgage Correct Answer Incorrect Answer
    D Reverse Mortgage Correct Answer Incorrect Answer
    E Usufructuary Mortgage Correct Answer Incorrect Answer

    Solution

    A n equitable mortgage is typically created by handing over the title deeds of the property to the lender, without a formal registration process.   Other types of mortgage structures include:  

    • Simple mortgage – A simple mortgage is a financial arrangement where a borrower pledges property as collateral for a loan while retaining ownership. In this type of mortgage, the lender has the right to sell the property if the borrower fails to meet repayment obligations, thus providing a measure of security  
    • Registered Mortgage - the Mortgage Deed is registered with the Sub-Registrar.  
    • Mortgage by Conditional Sale: the property is transferred to the lender with the condition that it will revert to the borrower upon complete repayment of the loan amount.  
    • An anomalous mortgage is a type of mortgage that doesn't fit the traditional mortgage structure . It has unusual terms, unique collateral arrangements, or non-standard repayment plans  . It's a combination of two or more different types of mortgages  
    • An English mortgage is a type of mortgage in India that transfers the legal title of a property to a lender (mortgagee) as security for a loan. The borrower (mortgagor) retains the equitable title to the property, meaning they can regain the legal title by repaying the loan.  
    • A  reverse mortgage  is a unique loan option that enables homeowners, especially those aged 60 or older, to convert part of their home's equity into cash without  selling the property. Reverse mortgages don't require monthly payments. Instead, the interest accumulates and the loan is paid off when the homeowner dies or moves out.  
    • A  usufructuary mortgage   is a type of mortgage in which the borrower transfers possession of the property to the lender until the loan is repaid.  

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