Security

1. What are the different types of mortgage?
   
   Ans.: There are three types of mortgage viz; Equitable mortgage, mortgage by entering into a Memorandum of Entry and Registered mortgage or English mortgage. HFIs follow any of the three mortgages with the equitable mortgage being the most popular.
   
   
2. What is an equitable mortgage?
   
   Ans.: Equitable mortgage is basically mortgage of an asset by deposit of title deeds. Title deeds comprise of the entire set of original documents of your property, which prove that you are the owner of the property. These documents remain with the HFI till the loan is repaid.
   
   
3. How do you mortgage your assets by entering into a Memorandum of Entry?
   
   Ans.: By Memorandum of Entry, you enter into a Declaration with the HFI that you have handed over the original set of documents of your property for mortgaging the same as security for your loan. Creation of a mortgage by a Memorandum of Entry would attract a small stamp duty.
   
   
4. What is a Registered mortgage or English mortgage?
   
   Ans.: By Registered or English mortgage, the original set of documents need not be handed over to the HFI. You enter into a mortgage deed with the HFI, which is stamped and registered thereby making it an official and legal mortgage. Normally, the stamping charges and registration charges are to be borne by you this could be a heavy expense in some states. HFIs follow any of the above mortgages with the equitable mortgage being the most popular.