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Credibility Of Encumbrance Certificate
12-Mar-2026 (In Documentation Law)
Will an Encumbrance Certificate show if a loan against the property has been taken from a Non-Banking Financial Company /Any other kind of companies?
No. If mortgage deeds are not executed typically it wont show in the encumbrance cirtificate. It is called gehan and the it will not reflect in your encumbrance cirtificate. You have to produce further details for forming an effective opinion
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Adv. Ahammed Faisal
Thrissur | 100+ Answers
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No. An Encumbrance Certificate (EC) will reflect only registered encumbrances, and in the context of loans, it typically shows only a registered (Gehan) mortgage.
A Gehan mortgag, being a mortgage created through a registered instrument, would appear in the EC. However, this form of mortgage is largely obsolete today. It was more commonly used prior to the introduction and widespread enforcement of the SARFAESI Act, 2002.
In present practice, most loans availed from banks or NBFCs are secured through equitable mortgages (deposit of title deeds), which do not require registration and therefore do not get reflected in the EC.
Accordingly, an EC will not reliably show whether a loan has been taken from an NBFC or other financial institution unless it involves a registered mortgage (which is now uncommon).
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Adv. David Varghese Thomas
Trivandrum / Thiruvananthapuram | 25+ Answers
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