Advance against Immovable Properties:

Immovable properties are usually accepted as collateral security and to strengthen the main security for an advance. Security over an immovable property may be created in favour of the bank by deposit of title deeds with the bank    (E.M- Equitable Mortgage) or by execution of registered deed of mortgage.

Procedure Before granting Loans:

Before granting the loan the bank officials/Manager will inspect the security for the loans and they will ascertain the Value of the property by taking the following factors:

  (A) Location of the Property

  (B) Age of the building and present condition

  (C) Salability of the property.

  (D) Access to the property, whether any tenant is   occupying the building or land .

The branch also obtain legal opinion from the Bank's Legal advisor, for scrutiny of the loan the legal advisor needs the Encumbrance certificate for the last 13 Years and latest tax receipt is also must.

The valuation of the property also done by bank's approved Engineer. 

Procedure before Creating Equitable Mortgage:

(I) A written application from the borrower stating

  1.The amount of advance needed

  2.Purpost for which the loan is required

  3.Detail of the property offered as security

  4.If the property belongs to third party  a letter from the third party .

• Application
• Demand promissory note
• List of title deeds (Memorandum of deposit of title deeds )
• Letter of intimation
• Acknowledgement of having deposited title deeds
• Stamped letter of continuity.
• Stamped partnership letter / Memorandum/articles of association (if applicable)
• Registration of charges in case of limited Companies

For further clarifications and your business needs kindly contact the nearest City Union Bank Branch.

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