What are the types of mortgage? (registered, equitable, English, and more)

A mortgage can be created in six different legal ways. Each way changes cost, speed, and how a lender enforces it.

Written 19 September 2026. For bankers in India.

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In one line

Indian law names six kinds of mortgage. A bank mostly uses two: a registered mortgage, or a mortgage by deposit of title deeds.

Why it matters to you

• The kind changes enforcement. Some kinds need a court order to sell the property.
• The kind changes cost. Stamp duty and fees differ by kind, and by state.
• Wrong paperwork risks the security. A mortgage made the wrong way can fail in court.
• Central Registry filing is a separate step. A valid mortgage can still lose fast recovery rights.
• This is not a Reserve Bank of India rule. A general law fixes the six kinds, not the regulator.

How it works

The Transfer of Property Act, 1882, section 58, names six kinds of mortgage. A rule that names choices must be given in full. Here are all six.

1. Simple mortgage. The borrower keeps possession and does not hand over the property. The borrower personally promises to repay. On default, the lender must ask a court to order a sale.

2. Mortgage by conditional sale. The property looks sold to the lender. The sale becomes final only on default, or becomes void on repayment. Courts read the true intention behind such a deed closely.

3. Usufructuary mortgage. The borrower hands over possession of the property. The lender keeps the rent or produce instead of interest. This lasts until the loan is repaid. It is rare in bank lending today.

4. English mortgage. The borrower promises to repay by a fixed date. The borrower also transfers the property to the lender outright. The lender must transfer it back on repayment. Indian banks rarely use this today.

5. Mortgage by deposit of title deeds. The borrower hands over the original ownership documents to the lender, meaning to create security. No registered deed is needed for this step alone. This is also called an equitable mortgage.

6. Anomalous mortgage. This is any mortgage that mixes features of the other five. It is also used when a mortgage does not match any of them cleanly.

Banks mainly use two of these six kinds. One is a registered mortgage, a formal deed registered with the Sub-Registrar. The other is a mortgage by deposit of title deeds.

Worked examples

Example 1: Registered mortgage and equitable mortgage cost the same in Maharashtra

A borrower takes a loan of Rs 50,00,000 in Maharashtra, secured by a mortgage on a flat.

• On the first Rs 5,00,000, stamp duty is 0.1 per cent: Rs 500.
• On the next Rs 45,00,000, stamp duty is 0.3 per cent: Rs 13,500.
• Total stamp duty: Rs 500 + Rs 13,500 = Rs 14,000.

Maharashtra charges this same amount and slab either way. This applies to a registered mortgage deed, or a deposit of title deeds. The old idea that an equitable mortgage is always far cheaper does not hold true here.

Example 2: Deposit of title deeds in Karnataka, with a registration fee

A borrower takes a loan of Rs 90,00,000 in Karnataka, secured by a deposit of title deeds. Karnataka calls this document a Memorandum of Deposit of Title Deeds (MODT).

• Stamp duty at 0.5 per cent: Rs 45,000.
• Registration fee at 0.1 per cent: Rs 9,000.
• Scanning charge, which depends on page count: about Rs 245.
• Total: about Rs 54,245.

Karnataka charges both a stamp duty and a registration fee on this kind of mortgage. In current practice, this is not free or unregistered, unlike the old, general idea of an equitable mortgage.

What the rule says

NO RBI NUMBER: a general law fixes the choices, not the Reserve Bank of India. The Transfer of Property Act, 1882, section 58, names the six kinds of mortgage. We checked the Reserve Bank of India's housing finance company rules from 2021 and their 2025 replacement. Both set loan-to-value limits and other lending rules, but neither says which kind of mortgage a lender must take. This is left to each lender's own board-approved policy.

THE LAW, NOT RBI: a deposit of title deeds has one limit, written into the Transfer of Property Act itself. Section 58 allows it only for a person in Calcutta, Madras, or Bombay. It also allows it in a town a state government has separately notified. We could not confirm a current, official list of notified towns beyond these three cities.

THE LAW, NOT RBI: Central Registry filing is a separate step, and it decides enforcement speed. The full name is the Central Registry of Securitisation Asset Reconstruction and Security Interest of India, or CERSAI. This comes from a law Parliament passed, not from the Reserve Bank of India. Section 26D of that law is clear. No secured creditor may use the fast, court-free sale process unless registered there. This rule took effect on 24 January 2020.

THE LAW, NOT RBI: section 26E of the same law pays a registered secured creditor before most other debts. This priority is subject to the insolvency law, once insolvency proceedings begin. Both sections apply the same way to a registered deed or a deposit of title deeds.

BANK PRACTICE: stamp duty is a state subject, and states do not all treat these kinds the same way. Maharashtra taxes a registered mortgage and a deposit of title deeds at the same rate. Karnataka charges both a stamp duty and a registration fee on a deposit of title deeds. We have sourced, exact figures only for these two states.

Common mistakes

• Assuming an equitable mortgage always costs less. It costs the same in Maharashtra. Check the current state stamp law.
• Skipping Central Registry filing. File there instead, so the fast recovery route stays open.
• Treating a deposit of title deeds as valid everywhere. The Act limits it to named or notified towns only.
• Believing priority under Section 26E is absolute. It is subject to the insolvency law once that starts.
• Ignoring fraud warnings on deposit of title deeds. The National Housing Bank flags forged documents as a real risk.

How to use it at your desk

1. Check your lender's own policy on which kind of mortgage to take for this loan.
2. Confirm the property's location, if a deposit of title deeds is proposed.
3. Check the current stamp duty and registration fee for your state.
4. File the security interest with the Central Registry after creating the mortgage.
5. Keep original title deeds safe and verified, since this kind of mortgage is a known fraud target.
6. Never assume a deposit of title deeds needs no paperwork at all; a state law may still tax it.

Related terms

• Loan to Value ratio — Sets how much a lender lends against the same property a mortgage secures.
• Own contribution and margin money — The borrower's own share, paid before the property is mortgaged.
• Reserve Bank of India rules on margin money — What the regulator fixes, and does not fix, for the same loans.
• Product rule pages: Housing loan rules, Housing Finance Companies Directions 2025.

Quick check

Does the Reserve Bank of India say which kind of mortgage a lender must take?

Answer: No. The Transfer of Property Act, 1882, names the six kinds. Each lender's own policy picks one.

Can a lender use the fast, court-free sale process without Central Registry filing?

Answer: No. Section 26D blocks this route unless the security interest is registered there.

Does an equitable mortgage always cost less than a registered mortgage?

Answer: No. In Maharashtra, both cost the same, under the same stamp duty slab.

Sources

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