Legal Glossary · Property Law
Right of Redemption: Meaning, Explained Simply (2026)
The right of redemption is the heart of every mortgage from the borrower’s side. When a borrower mortgages property for a loan, the property is only security. Once the loan is paid off, the borrower has the right to take the property back, clear and free. This page explains the right of redemption in plain words, the law behind it, a short Indian example, when it applies, and two ideas tied to it that people often confuse, the equity of redemption and a clog on redemption. This is general information, last verified October 2026, and not legal advice.
- Meaning: the borrower’s right to get the mortgaged property back on paying off the loan.
- Law: Section 60 of the Transfer of Property Act, 1882.
- Equity of redemption: the right survives even after the fixed date for payment has passed.
- Clog on redemption: an unfair term blocking redemption can be struck down by a court.
- Opposite of: the lender’s remedy of foreclosure.
01What the right of redemption means
The right of redemption is the right of a mortgagor, on paying the mortgage money after it has become due, to require the mortgagee to return the mortgaged property and the title documents and to re-transfer the property. It is a core right of the borrower that cannot be unfairly fettered.
Put simply, a mortgage is not a sale. The lender holds the property only as security for the loan. The moment the borrower clears the debt, the reason for the lender holding the property is gone, and the borrower can get it back. That get-it-back right is redemption.
A famous rule sums it up: once a mortgage, always a mortgage. A deal that looks like a mortgage cannot be turned into a permanent loss of the property for the borrower.
02The law behind it
The governing provision is Section 60 of the Transfer of Property Act, 1882. It gives the mortgagor, at any time after the mortgage money has become due and on payment or tender of that money, the right to require the mortgagee to deliver the mortgage deed and documents, to deliver possession where the mortgagee is in possession, and to re-transfer the property or execute an acknowledgement that the right has been extinguished.
Section 60 also makes clear that this right cannot be taken away by a mere contract to the contrary in a way that defeats it, which is where the rule against a clog on redemption comes from. The right of redemption continues until it is lawfully extinguished, for example by a decree of foreclosure or by sale. The Transfer of Property Act is a civil statute and is not replaced by the new criminal codes.
03A simple Indian example
Suppose a borrower mortgages a shop to secure a loan, with a term in the deed that says the borrower can redeem only after thirty years. The borrower wants to repay and take the shop back in year five.
A term that locks the borrower out of redemption for an unreasonably long time can be struck down as a clog on the equity of redemption. The borrower may be allowed to redeem on paying what is due, because the law protects the right to get the property back and does not let the lender convert the security into something close to ownership.
04Equity of redemption and clog on redemption
Two linked ideas sit around Section 60. The table explains them.
| Idea | What it means |
|---|---|
| Equity of redemption | The borrower’s right and interest to get the property back by paying the debt, even after the date fixed for payment has passed. |
| Clog on redemption | Any term in the mortgage that blocks, delays or unfairly burdens the right to redeem. Courts can set such a term aside. |
| Once a mortgage, always a mortgage | A transaction that is in substance a mortgage stays redeemable; it cannot be dressed up to defeat redemption. |
So the equity of redemption is the right itself, and a clog on redemption is an unfair term that tries to choke it. Courts lean in favour of allowing the borrower to redeem.
05When it applies
The right of redemption arises in any mortgage once the mortgage money has become due. Keep these points in mind.
- Pay what is due: the borrower must pay or tender the full mortgage money to redeem.
- Return of property and documents: the lender must hand back possession, if held, and the title documents.
- Until extinguished: the right lasts until it is ended by a foreclosure decree, a sale, or an act of parties recognised by law.
Redemption is the mirror image of the lender’s remedy of foreclosure. Which remedy applies depends on the kind of mortgage, which we explain in our note on types of mortgage under Section 58.
06Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
A reader who wants to see how Indian courts have treated the right of redemption, what counts as a clog on redemption, or how long the right survives, can search for those judgments on Claw. Claw lets you search across 30 crore+ judgments from 9,102 courts, benches and forums, with results in under 5 seconds, and its Legal GPT can pull up how Section 60 has been applied. Coverage runs from the Supreme Court since 1950 and High Courts since 1990. Claw does not train on customer documents. You can create a FREE Claw account to look up the case law behind a term like this. Claw is a research tool, not a substitute for advice from your own advocate.
07Sources and further reading
Check the current text of the law before relying on it:
- India Code (official Acts, including the Transfer of Property Act, 1882): indiacode.nic.in
- Supreme Court of India (official judgments): sci.gov.in
- Claw: clawlaw.in
This page is general information, last verified October 2026, and is not legal advice.
08Frequently asked questions
What is the right of redemption in a mortgage?
The right of redemption is the right of a mortgagor, on paying the mortgage money after it has become due, to require the mortgagee to return the mortgaged property and the title documents and to re-transfer the property. It is a core right of the borrower that cannot be unfairly fettered.
Which section governs the right of redemption in India?
Section 60 of the Transfer of Property Act, 1882 governs the right of redemption of a mortgage.
What is a clog on the equity of redemption?
A clog on redemption is any term in a mortgage that blocks, delays or unfairly burdens the borrower’s right to redeem the property. Courts can set such a term aside, following the principle once a mortgage, always a mortgage.
When does the right of redemption end?
The right continues until it is lawfully extinguished, for example by a decree of foreclosure, by a sale of the property, or by an act of the parties recognised by law.
What is the difference between redemption and foreclosure?
Redemption is the borrower paying off the loan to get the property back. Foreclosure is the lender obtaining a court order that ends the borrower’s right of redemption so the property becomes the lender’s absolutely.