Collateral And Security For Mortgage In India: What You Should Know

Ans. Typically, the collateral property cannot be sold or transferred during the mortgage tenure without the consent of the lender. The property acts as security for the loan until It is fully repaid. Any transfer or sale of the property during this period would require the lender’s involvement and approval.

Ans. In India, the most common form of collateral for a mortgage is the property itself, such as a house or land. However, certain financial assets like fixed deposits, insurance policies, or government securities may also be accepted as collateral, depending on the lender’s policies.