Different types of mortgage – Equitable mortgage and Registered mortgage
Aug20

Different types of mortgage – Equitable mortgage and Registered mortgage

Equitable mortgage is most common type of mortgage in India. What is mortgage and what are other types of mortgage and how these are different is explained in this article. What is mortgage? Mortgage is defined in Transfer of Property Act, 1882, Section 58: A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or...

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Analysis of Holding Period in Banks for Working Capital
May22

Analysis of Holding Period in Banks for Working Capital

Analysis of holding periods is an important aspect while sanctioning working capital facilities in Banks. In this article, we have discussed how holding periods are calculated and analysed for stocks, receivables and creditors. Holding levels means the period of a particular current asset or current liability after which it is converted or realized or is paid. To understand this, we will discuss it one by one: To understand what is...

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Bank to pay Rs.1 lac for not informing Rejection of Loan
May03

Bank to pay Rs.1 lac for not informing Rejection of Loan

State Consumer Disputes Redressal Commission, Maharashtra directed Bank of Baroda to pay Rs.1 lac as compensation for not informing the rejection of housing loan and reasons thereof. Jayprakash R.Kushwaha entered into an agreement for purchase of house, in a Co.Op. Housing Society for Rs.4 lakh on 12/3/2007 and gave Rs.87,000/- as advance. Rest of amount of Rs.3,13,000/- was to be paid by obtaining loan from the bank. Before execution...

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What is Pari Passu Charge?
Mar09

What is Pari Passu Charge?

Meaning of pari passu charge – Pari-passu is a Latin phrase, which means “equal footing”.  Thus pari passu charge means, having equivalent charge/ rights or say charge-holders have equal rights over the asset on which pari pasu charge is created. “Pari Passu” charge means that when borrower company goes into dissolution, the assets over which the charge has been created will be distributed in proportion...

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Difference between first charge and second charge
Mar07

Difference between first charge and second charge

Difference between first Charge and 2nd Charge and pari passu charge has been explained in this article. Meaning of Charge in Banking: Evidence of a lien or mortgage that secures the repayment of a loan. So when we say, charged asset, it refers to the assets mortgaged or under lien with bank. For example, if a house is held as collateral security in a loan account, the house is charged with bank or say, bank has charge on the...

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Lowest interest on home loan
Jan11

Lowest interest on home loan

Looking for a housing loan? But not sure, which bank is offering Lowest Interest on home loan? Here we have compared the rate of interest offered by top lenders, so that you can get best home loan at lowest interest rate. Bank of Baroda Bank of Baroda is offering lowest interest on home loan in the India. But this is with some conditions. Yes, if you have good credit score, you can get housing loan from Bank of Baroda at MCLR, as on...

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