Learn the Benefits of Mortgage Loans

Mortgage loans are a type of secured advance, whereby individuals can provide a residential or commercial property as collateral to avail funding. Usually, it is a high-value as well as a long-term credit.

Must Read : All to know about mortgage 

Lenders keep the asset taken collateral as security until the entire debt is repaid. Once it is done, they transfer the ownership back to the borrower. Usually, these advances are available in three sub-types

• Home loans 
• Commercial property loans 
• Loans against property 

Benefits of mortgage loans 

• As mentioned above, these loans are high-value loans. Based on the repayment capacity of a borrower, lenders decide the loan amount. Additionally, the upper limit of these loans may vary from one lender to another. 

• Furthermore, these secured loans have an extended repayment tenor, which can go up to 20 years or more. It thus gives borrowers an opportunity to repay their debt affordably. 

• A significant advantage of these loans is the income tax benefits they offer. As per the various sections of the Income Tax Act, 1961, individuals can avail exemption benefits on repayment of these secured advances. 

• Additionally, the eligibility criteria required to qualify for this loan is also straightforward. Applicants with the required age and stable monthly income along with a reliable credit history can easily avail this loan. 

• Last but not least, their variants like loan against property are disbursed quickly. Typically within 3-4 working days, individuals can get their money upon fulfilling the required eligibility criteria. 

These secured loans are a suitable way to organise funding for the purchase or development of a property. However, individuals must learn all the terms and conditions associated with this loan before availing it.