What is Mortgage?, Mortgage Meaning in Banking

As per Section 58 of the Transfer of Property Act, 1882, Mortgage is the transfer of an interest in specific immovable property for the purpose of securing payment of money advanced by way of loan, existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.

About Mortgage

• Mortgage is a charge created on immovable assets
• Immovable Assets include land, building, or anything attached to earth
• The transferor is called a mortgagor
• The transferee a mortgagee
• The principal money and interest of which payment is secured for the time being is called the Mortgage Money
• The instrument (if any) by which the transfer is effected is called a Mortgage Deed
• Possession of the asset remain with the borrower
• Loan Period is longer
• Loan amount is comparatively higher