1 / 8

What is Mortgage and Its Types - Briefly Explained

A mortgage requires you to pledge your home as the lender's security for the repayment of your loan and also if we check then it is likely the largest and longest loan you'll see as the tenure is flexible. Read more at https://www.bajajfinserv.in/mortgage-loan

antilalisha
Download Presentation

What is Mortgage and Its Types - Briefly Explained

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. KNOW EVERYTHING ABOUT MORTGAGE LOAN AND ITS INTEREST RATES

  2. What is Mortgage Loan? In the present economic scenario, loans have become one of the popular financing sources that can sufficiently fulfil big-ticket expenditures. Under such circumstances, individuals can look for secured advances like mortgage loans as a more feasible option for high-value funding. These are financing options availed against the mortgage of a residential or commercial property and come with an extended repayment tenor.

  3. Features of Mortgage Advances Mortgage loan are primarily available in two types – home loans and loans against property. While home loans are designed to fund a residential property purchase, property loans or loan against property come with unrestricted end-use. Some typical features of these advances include – • Simple eligibility requirements • High-value financing • Simple documentation • Flexible tenor options • Fast processing of loan applications

  4. Interest Rates on Mortgage Loans Usually, interest rates of mortgage loan are lower compared to the other traditional unsecured funding options. It is because the risk of lending is lower with these advances due to the presence of a mortgage, allowing lenders to provide competitive rates. However, the property loan interest rate can be different from that of home loans even although they both are mortgage advances. Here, it is essential to note that such a difference is not as remarkable as for unsecured advances.

  5. Working Process of Mortgage Loans • A mortgage advance like a loan against property is considered one of the most convenient ways to raise size-able funds of up to Rs.3.5 crore. However, when applying for it, borrowers must analyse their repayment capacity beforehand. • A strong financial profile can prove beneficial in obtaining the loan at affordable terms. One’s credit profile is measured by an excellent credit score, timely payments, and responsible use of previous debt tools, among other parameters. • Once availed, borrowers can repay the loan liability in EMIs extending over a tenor of up to 20 years.

More Related