A mortgage loan is an effective finance option for individuals looking for considerable funds at affordable interest rates with no end-use restriction. Customers can leverage their mortgage loan amounts to finance their high-value personal or professional goals.
What is a mortgage loan?
A mortgage loan is disbursed by a financial institution to an individual who mortgages their property in exchange for the loan amount.
The deed and property paper remains with the lender during the tenor of a mortgage loan. Individuals can claim it back after due repayment of the loan amount.
Amounts disbursed under mortgage loans
Mortgage loans include loans against property as well as home loans; in both cases, the property is mortgaged to the lender.
Due to the high-value loan amounts disbursed, mortgage loans come with long tenors to reduce the EMI amounts.
Interest rates offered on these loans are also more affordable than on unsecured loan variants. Lenders levy such reduced rates citing the mortgage guarantee which reduces the risk weightage on the loan amount disbursed.
Types of loan against property
Lenders offer several types of loan against property to customers. One can avail a loan against property for the following purposes –
A mortgage loan thus provides financial assistance to individuals in exchange for property for a tenor. Refer to leading lenders for the most beneficial loan terms.
Additional Read : What is a mortgage loan in business?
What is a mortgage loan?
A mortgage loan is disbursed by a financial institution to an individual who mortgages their property in exchange for the loan amount.
The deed and property paper remains with the lender during the tenor of a mortgage loan. Individuals can claim it back after due repayment of the loan amount.
Amounts disbursed under mortgage loans
Mortgage loans include loans against property as well as home loans; in both cases, the property is mortgaged to the lender.
Due to the high-value loan amounts disbursed, mortgage loans come with long tenors to reduce the EMI amounts.
Interest rates offered on these loans are also more affordable than on unsecured loan variants. Lenders levy such reduced rates citing the mortgage guarantee which reduces the risk weightage on the loan amount disbursed.
Types of loan against property
Lenders offer several types of loan against property to customers. One can avail a loan against property for the following purposes –
- Education - Individuals can mortgage their properties to fund higher education expenses.
- Travel - Travelling and vacation expenses can be funded using a loan against property.
- Marriage - Individuals can finance their marriage using this financing facility.
- Business - Entrepreneurs can mortgage to raise finances for their business.
A mortgage loan thus provides financial assistance to individuals in exchange for property for a tenor. Refer to leading lenders for the most beneficial loan terms.
Additional Read : What is a mortgage loan in business?
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