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Equitable Mortgage
A mortgage created by depositing original title deeds with the lender, without requiring a formal registered mortgage deed. The most common form of mortgage in urban India.
An equitable mortgage is created when a borrower deposits original property title documents with the lender with the intention of creating security. No stamp duty or court registration is required (unlike a registered mortgage), making it faster and cheaper.
Equitable mortgages are valid in most notified areas in India. The lender holds the title deeds and can enforce their rights under SARFAESI if the borrower defaults. Always ensure you receive a written acknowledgement from the lender confirming the deposit of title documents.
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