A mortgage can be defined as the transfer of holding of specific immovable property for the purpose of securing the payment of money advanced by the bank in the form of loan or existing future debt or any liability which arise in future due to mutual agreement. In This definition of mortgage, “The transferor is of property called a mortgagor and on the other hand the transferee is known to be as a mortgagee. There is also a concept of mortgage deed. it occurs when the principal money and the return of which payment is secured for the time being and instruments (if any) by which the transfer is affected.

So, for fulfilling the definition of mortgage and its all merits and aspects, the mortgage must have following fundamentals.

(a) A when mortgage is held it must transfers the interest of immovable property for which the loan is going to be advanced by the bank. This transfer must be transparent and actual. In some Acts it was decided that a mortgage cannot be created by a mere agreement to transfer the interest, but it can create a personal obligation.

(b) The property which is going to be transferred for the securing the payment must be purely immovable property.  However in some cases a movable thing when fixed permanently to an immovable property becomes a part and in law it is considered to be immovable.

(c) When the mortgage is formed the interest must be transferred just for the purpose of securing the debt. And if the object which is subjected to mortgage is used as discharge for a debt then it doesn’t form the mortgage.