A property can be anything or a place you can have a title over. An immovable property can be a villa or apartment, and a movable property can be a car or iPhone. However, when we talk about property, everything big in size does not necessarily mean immovable, and everything small in size is not movable.
According to the Indian legislation guidelines, the basic division between movable and immovable properties is subject to ownership. Here, we will discuss movable property meaning in detail, along with its types and legal rights.
Importance of Understanding Movable Property Legal Rights
- Property rights are legal entitlements to control, dispose of, and use a resource.
- Understanding them economically facilitates market creation for products and services, promoting economic efficiency and allowing appropriate allocation of resources.
- The concept of property legal rights defines your legal relationship with a resource, provides a framework for resolving use and ownership disputes, and encourages investment and expansion of the property.
Moreover, understanding these rights allows you to use the property for financial gain, preventing third parties from benefitting from it without your consent.
Types of Movable Property
Movable property examples include anything you can move from one place to another without altering its nature or losing its quality. That means they are those items that are not fixed to the ground. Anything from jewellery and smartphones to automobiles and livestock comes under the category of movable property. We may classify movable properties into the following types:
- Self-Moving Properties: These include properties with their own movement by nature—for example, animals.
- Inanimate Movable Properties: These include properties that cannot move independently but can be shifted from one place to another by external force. For example, beds, computers, smartphones, refrigerators, etc.
- Movable Assets in Advance: These include properties that are a part of real estate but can be portable. For example, the fruits of a tree are immovable but become movable when detached.
Also, Read: Understanding Immovable Property: Types, Rights, and Differences
List of Legal Rights on Movable Property
Knowing the legal rights on a movable property is essential to reap maximum benefits from your assets. Here is a list of rights you must be aware of:
- According to Section 2 (9) of the Registration Act, 1908, movable property includes any property of description other than an immovable property.
- Standing timber, grass, crops, fruits on trees, roots, leaves, etc., are movable properties.
- Anything that is not fixed to the ground falls under the category of movable property, irrespective of its quantity, quality, size, and shape.
- Movable properties are subject to certain restrictions, conditions, central sales tax, and sales tax under the Central Sales Tax Act, 1956 and the General Sales Tax Act of the concerned state.
- A movable property does not need registration under the Indian Registration Act 1908.
- Movable properties can be consumable or non-consumable without being subjected to accretion to an inherited impartible estate.
- According to Section 22 of the Indian Penal Code 1860, movable property includes corporeal property under every description except land and assets attached to it.
- The Transfer of Property (TP) Act applies not only to immovable properties but also to movable assets.
- A Chattel mortgage is a Loan Against Property that describes a mortgage on a movable property.
Benefits of Choosing Movable Property
Choosing a movable property has several benefits, including the following:
- Registration Requirement: A movable property does not need any registration, unlike an immovable property that must be registered under the Registration Act 1908.
- Taxation: A movable property is subjected to GST, while an immovable property is subjected to stamp duty as per the Indian Stamp Act 1899.
- Inheritance: Movable properties have easier transferability without any will, partition, gift deed, or simultaneous registration.
- Security Against a Loan: When you take a loan against a movable property, you use it as a pledge rather than a mortgage or lien.
How Loan Against Property Helps to Buy a Movable Property?
A Loan Against Propеrty (LAP) can bе a usеful financial tool whеn you want to buy a movablе propеrty. Hеrе's how LAP can hеlp:
- Collatеral Advantagе: A loan against propеrty (LAP) allows you to usе your propеrty as collatеral, providing sеcurity to thе lеndеr.
- Lowеr Intеrеst Ratеs: LAP typically offеrs lowеr intеrеst ratеs comparеd to unsеcurеd loans, such as pеrsonal loans or crеdit cards.
- Highеr Loan Amounts: Sincе thе loan is backеd by your propеrty, you can gеnеrally borrow a highеr amount comparеd to unsеcurеd loans.
- Tax Bеnеfits: Dеpеnding on your local tax rеgulations and thе purposе of thе loan, you may bе еligiblе for tax bеnеfits on thе intеrеst paid, furthеr rеducing thе ovеrall cost of buying movablе propеrty with a loan against propеrty.
- Extеndеd Rеpaymеnt Pеriod: LAP usually offеrs longеr loan tеnurеs, making thе rеpaymеnt procеss morе managеablе.
A loan against propеrty is a valuablе financial tool that can hеlp you acquirе movablе assеts with еasе, offеring bеnеfits likе lowеr intеrеst ratеs, highеr loan amounts, and flеxiblе еnd-usе options.
Process to Apply Loan Against Property Online
Applying for a Loan Against Property (LAP) online is a simple process. Here are the general steps:
- Visit Official Website: Visit Hero Fincorp official website or download the online mobile app.
- Eligibility Chеck: Visit thе lеndеr's wеbsitе and usе thеir еligibility calculator to sее if you qualify for thе loan.
- Onlinе Application: Complеtе thе onlinе application form, providing your pеrsonal, financial, and propеrty dеtails.
- Documеnt Submission: Upload thе nеcеssary documеnts, including propеrty documеnts, incomе proof, and KYC documеnts.
- Loan Approval: If your application is approvеd, thе lеndеr will providе an offеr lеttеr with thе loan tеrms and conditions.
Also, Read: All About a Loan Against Property Against Immovable Commercial Assets
Conclusion
Boasting superior legal rights, lenders now offer lower Loan Against Property interest rates on movable properties than immovable properties. If you are looking for a Loan Against Property, based on your property’s value, Hero FinCorp can offer up to Rs 7.5 Crore at competitive interest rates, starting at 11%, with flexible repayment tenures of up to 15 years. Moreover, taking a loan against movable properties involves fewer documentation needs that aspiring borrowers can fulfil easily.
Frequently Asked Questions
1. How is movable property different from immovable property?
The major difference is that a movable property can be taken from one place to another while an immovable property remains fixed to the ground.
2. How is ownership of movable property transferred?
A movable property can be transferred through gift, sale, exchange, lease, actionable claim, or mortgage.
3. Can I use a loan against property to finance the purchase of items like a car, boat, or household appliances?
Yes, you can use a LAP to finance the purchase of movable assets like a car, boat, or household appliances. It offers flexibility in how you use the funds.
4. Can movable property rights be enforced internationally?
A movable property’s transfer under private international law is affected by legal operation or an act of parties.
5. Are there any restrictions on transferring certain types of movable property?
If a property is forbidden for transfer by law, possibility, morality, or public interest, it cannot be transferred.
