Taking Loans on Provision of a Grant as a Security
 

Establishments which provide loans, guaranteed by the deed?

• Peoples Bank

• State Mortgage and Investment Bank

• Bank of Ceylon

• Lanka Development Finance Cooperation

• National Housing Development Authority

• National Housing Commissioner

• Sri Lanka Housing development Finance cooperation Ltd

• Societies and companies registered under the cooperative society ordinance.

• Establishments, registered under commercial Banks Act no: 30 of 1988.

• Establishments registered under Finance Act no 11 of 1963.

• Establishments registered under Finance Act no 27 of 1979.

• Establishments registered under Finance Act (amendment) no 78 of 1988

How to take Loans or Mortgage by a deed?

Your request should be forwarded to a divisional secretary/Deputy Land Commissioner (Inter province).He will obtain the reports from the Grama Niladari /Colonization Officer.

• The original deed, the copies of folio, obtained from the registrar office in which the deed was registered should be forwarded along with that request.

• A letter from the establishment which is expected to take loans or mortgage or keep mortgage should be forwarded to the divisional secretary /deputy land commissioner (inter province) along with a copy of the deed of contract prepared by the same establishment.

• Divisional Secretary/ Deputy Land commissioner (Inter province) will provide you a permission letter in form 5 with the approved deed of contract for giving loan.

• The approved deed of contract for giving loan with that letter too should be forwarded to the establishment which provides loan facilities.

Unless the loan settled?

• The land will be transferred to the same establishment unless the loan or mortgage settled.

• They can sell the land and recover the amount of loan.

• On that occasion irrespective of their class occupation or income can purchase the land.

• However the one who purchases the land will be required to comply with the conditions, contained in the deed.

• The one who buy the land will be required to comply with the conditions contained in the deed as he buy a land which contains a number of conditions.

• The one who purchase the land will be required to obtain a permission letter from the divisional secretary/Deputy land commissioner (Inter province) when he intends to sell the land.

• Can a deed be hypothecated as a security for Childs loan?

• Yes, of course you will be the guarantor of the loan.

Source By - 

Land Commissioner General’s department,

No 7, Gregory Avenue,

Colombo 7

 Tele: +94 11 2677166

Fax : +94 11 2684051

Web: www.landcommdept.gov.lk