Banking · Retail Banking and Loans
Examine the following statements regarding banking and mortgage regulations and choose the correct option: Statement 1: A 'Second Charge' on a property can only be created with the explicit 'No Objection Certificate' (NOC) from the primary lender who holds the 'First Charge' on that specific asset. Statement 2: Under the 'SARFAESI Act', a bank can issue a 60-day notice to the borrower after the account is classified as a Non-Performing Asset, and if the borrower fails to pay, the bank can take symbolic or physical possession of the mortgaged property. Statement 3: The 'Equated Monthly Installment' (EMI) consists of both principal and interest components, and in the initial years of a long-term mortgage, the interest component is significantly higher than the principal component.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1All three statements are correct.✓
- 2Statements 1 and 3 are correct.
- 3Statements 2 and 3 are correct.
- 4Statements 1 and 2 are correct.
Correct answer
All three statements are correct.
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