RBI approves of compromise settlement of dues through Lok Adalats. They are convened to hear disputes where disposal of the cases are quick and concessions for one time settlement is offered by banks. It is an effort to settle large number of cases at a single forum in an expeditious manner where clients and banks are willing to settle the issue.
Home Loans are mostly against equitable mortgage. Please explain equitable mortgage
Where the mortgager i.e. the borrower delivers to the mortgagee i.e. the bank, at notified places, the documents of title to immovable property with intention to create a security thereon for availing a loan or credit facility it is known as equitable mortgage of the immovable property. It is also known as mortgage by deposit of title deeds. In case of non payment of the loan amount the bank can sue for sale of the property but cannot confiscate.
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