Banking · Types of Mortgages
Which of the following statements is factually correct regarding the distinction between an Equitable Mortgage and a Legal Mortgage in the Indian banking context?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Equitable Mortgage requires a registered deed and high stamp duty, whereas Legal Mortgage only requires the deposit of title deeds.
- 2Equitable Mortgage is created by the mere deposit of original title deeds with the lender in notified towns, while Legal Mortgage involves the transfer of interest in the property through a registered instrument.✓
- 3There is no legal difference between the two; they are just different names for the same process.
- 4Equitable Mortgage can only be created for commercial properties, not residential.
Correct answer
Equitable Mortgage is created by the mere deposit of original title deeds with the lender in notified towns, while Legal Mortgage involves the transfer of interest in the property through a registered instrument.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Types of Mortgages MCQs →Want more practice questions on Types of Mortgages?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Types of Mortgages