Legal Question in Banking Law in India
Whether Bank can take agriculture land as collateral security for commercial loan /cc. If No, under which provision. Borrower himself is owner of agri.land
Asked on 10/24/15, 6:46 pm
1 Answer from Attorneys
Fca Prashant Chavan
Expert Edge LLP
25.10.2015
Dear Sir / Madam.
No. Banks are not allowed to accept agricultural land as collateral security for commercial loan or cash credit facility, The borrower will have to first convert the land into Non Agricultural to avail of loan or credit facilities from the Bank.
Regards,
Answered on 10/25/15, 2:42 am
Related Questions & Answers
-
Dear Sir, I have received a Foreign Currency D.D. against a supply order. I... Asked 10/24/15, 3:27 am in India Banking Law
-
I had taken housing loan of 560000, in the year 2003, i have defaulted bank loan for... Asked 10/22/15, 6:09 am in India Banking Law
-
Can one can mortgage property situated in lal lakir to punjab for taking a loan. Asked 10/22/15, 5:56 am in India Banking Law
-
Hi, I was not into job from last 3 months and didn't got the salary. Due to this... Asked 10/21/15, 3:11 am in India Banking Law
-
Hi sir i have issued a check long 7 years back to a person now i dont have that... Asked 10/21/15, 1:20 am in India Banking Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
