Grow with Us Through Smart Real Estate Investments
What Is Charge Creation
Charge creation occurs when a borrower pledges specific assets as collateral to secure a loan. This provides assurance to the lender that, in case of default, the assets can be used to recover the funds. It helps minimize risk and fosters trust between the borrower and the lender.
How does the debenture plan charge creation process work?
A group of entrepreneurs wants to build a warehouse and needs money. They decide to raise funds by issuing debentures and put the money into their Special Purpose Vehicle (SPV) account.
With the money ready, they use it to buy land for the warehouse, with the land owned by the SPV. They then appoint a debenture trustee, a person or organization that will manage the loan and ensure everything runs smoothly. To protect the loan, they mortgage the land in the trustee’s name, making sure the land can be used to pay back the loan if needed. Finally, they register the mortgage deed with the Ministry of Corporate Affairs (MCA), securing the deal through the CHG-9 charge creation form.
Now they have the funds, the land, and the proper legal steps to move forward.
How Vamica Resorts Secures Your Assets?
Once an asset has been charged, it cannot be sold without permission. We’ll make sure to reimburse all investors or replace the asset with something of comparable value if Vamica Resorts decides to sell it in order to protect your investment.
Vamica Resorts guarantees complete capital protection with our charge creation services. We’re committed to giving everyone a safe and successful future.