Sir, I am karta of the HUF property. Can I mortgage to the Bank for a working capital loan for a pvt. ltd company in which I am a Director. Allahabad Bank at kanpur is not accepting such property
3 Answers from Attorneys
What are you intending to mortgage ? Please clarify. Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.
Legally there is no bar in mortgaging the property belonging to a HUF for a loan granted to a company in which the members of HUF or the Kartha of the HUF hold major shares. It all depends upon the lending Bank's choice of security. No hard and fast rule can be laid by the borrower company or its directors on the type of security demanded by the lending bank.
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