Thank you very much for the answer.
I am yet to consult lawyer, which i am going to do now.
To start with, i am planning to request following document format with corrections related to us.( I got this from http://registration.ap.gov.in/CitizenServices/DocumentTemplates/Mortgage/SimpleMortgage/Agriculture/Mortgagewithout.pdf)

Please let me know your opinion.
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SIMPLE MORTGAGE
(for Agriculture lands)
THIS SIMPLE MORTGAGE DEED is made and executed on this the
___________ day of __________ year by
Sri____________________ S/o, D/o, W/o. ____________________,
aged about __________ years, Occupation: ___________________
Resident of D.No. ________________________________________
Represented by his / her agent
Being minor Represented by Father/Brother/Mother/Guardian
Sri____________________ S/o, D/o, W/o. ____________________,
aged about __________ years, Occupation: ___________________
Residing at ______________ under general / special
power of attorney dated________ Registered as Document
Number_____ of Year_____ Book I / IV of RO/SRO__________.
(Hereinafter called the “MORTGAGOR” which expression shall mean and include all
his/their heirs, legal representatives, administrators and assignees etc. of the ONE
PART).
A N D
____________________ S/o, D/o, W/o. ____________________,
aged about __________ years, Occupation: ___________________
Resident of D.No. ________________________________________
(Hereinafter called the “MORTGAGEE(S)S” which expression shall mean and include
all his/ their heirs, legal representatives, administrators and assignees etc. of the
OTHER PART).
WHEREAS the MORTGAGOR is the absolute owner and peaceful
possessors of the agriculture land bearing Survey No.
_____________admeasuring______Acres,______ Gts., Situated
at___________________(Vill)____________________
(Mandal) ____________________Districts, which was inherited / having acquired the
same from __________ through a sale deed / Gift /Gift Settlement/Partition/Will deed
registered as No.______ of ________ of S.R.O. ____________________ copied in
Volume No. ____________________ at Page ____________vide pattadar pass book
no_________ titledeed no_______ issued by______ M.R.O.
AND WHEREAS the MORTGAGOR(S) being in need of money has/have
approached the MORTGAGEE(S)s to lend the money, and the Mortgages herein also
agreed for the same, and on this day the MORTGAGOR(S) borrowed and received in
cash a sum of Rs. ________________ (Rupees only) from the
MORTGAGEE(S)s, the MORTGAGOR(S) do hereby admits and acknowledges the
receipt of the same.
NOW THIS DEED OF SIMPLE MORTGAGE WITNESSETH AS FOLLOWS:
1. That the MORTGAGOR(S) has agreed to pay the said principal sum of
Rs._______________ within a period of ______ months/years from this day
and interest will be payable in once in a month @ _____% per annum.
2. That in case of default in payment of the said interest amount, penal interest
will be charged @_______% in addition per month. If any interest amount
remains unpaid the same will be payable at once with the Principal.
3. That in further pursuance of the said agreement and for the consideration
aforesaid, the said MORTGAGOR(S) as the beneficial owner hereby
charges and assures by way of mortgage unto the said MORTGAGEE(S)s
the schedule property herein mentioned below with all fittings and fixtures to
have and to hold the same with all the rights of simple mortgage under the
transfer of property act.
4. That if the said principal sum or sums of money herein before covenanted
to be paid with interest at the rate and within the period stipulated is not be
duly paid or if MORTGAGOR(S) fails and/or neglects to complete this
obligation, in so doing the MORTGAGEE(S)s shall have the right to enforce
the security hereunder created and to sell the property and realise out of the
proceeds of such sale all sums due to them together with principal and
interest after paying the costs and expenses of such sale and if the
MORTGAGEE(S)s debt is still unsatisfied, the MORTGAGEE(S)s may
enforce the loan against the person or other property of the
MORTGAGOR(S) and in case of there being surplus, the same shall be
refunded to the MORTGAGOR(S).
5. That the MORTGAGOR(S) shall reimburse all the sums paid by the
MORTGAGEE(S)s on behalf of the MORTGAGOR(S). And also that if any
expenditure incurred by the MORTGAGEE(S)s towards postal, registration
charges, court expenses etc. shall be debited to the Principal and shall carry
interest as mentioned above.
6. As a security for the due repayment of all monies due under this deed, the
MORTGAGOR(S) hereby mortgage without possession with
MORTGAGEE(S)s all the schedule property as said above.
7. And the MORTGAGOR(S) hereby declares and covenant.
a) That the Mortgaged property is free from all charges and
encumbrances whatsoever.
b) That the MORTGAGOR(S) is the absolute owner of the property
mentioned below and is entitled to mortgage the same.
8. The land is not an assigned land within the meaning of A.P. Assigned lands
(Prohibition of Transfers) Act 9 of 1977 and it does not belong to or under
mortgage to Govt. Agencies/Undertakings.
9. There is no House or any constructions in the said Land, if any structure is
there the parties may be prosecuted Under Section 27 and read with
Sec. 64 of Indian Stamp Act besides recovery of the stamp duty.
10. The Vendor further declare that the schedule land is not attracted by the
provisions of A.P. Land Reforms (Ceiling on Agriculture Holdings). Act. No.
1 of 1973.
11. The Vendor hereby declares that there are no Mango Trees / Coconut
Trees/ Betal Leaf Gardens / Orange Groves or any such other gardens; that
there are no mines or quarries of granites or such other valuable stones;
that there are no machinery no fish ponds etc., in the lands now being
transferred; that if any suppression of facts is noticed at a future date, I will
be liable for prosecution as per law, besides payment of deficit duty.
12. Rule 3 Statement of Market Value.
SCHEDULE OF PROPERTY
All that the piece and parcel of Agriculture Land bearing Survey
No._________admeasuring Ac.______Gnts. / _______ Hectors, situated in
___________ Village ___________ Mandal _______ , Under the jurisdiction of Sub
District _______and Registration District ________ bounded by ,
NORTH :
SOUTH :
EAST :
WEST :
IN WITNESS WHEREOF, MORTGAGOR(S) has put his signature on this
Mortgage Deed with free will and consent without coercion or fraud in the presence of
the following witnesses on the above mentioned date, month and year.
WITNESSES :
1. MORTGAGOR
2.