Mortgage Loan

A mortgage loan is a secured loan, where you use your property as collateral to borrow money. The lender retains ownership of your property until the loan is fully repaid.

Types of Mortgage Loans:

• Home Loan: Used to purchase a residential property.
• Loan Against Property (LAP): A loan obtained by using an existing property as collateral

Key Features of Mortgage Loans:

• Secured Loans: Lower interest rates than unsecured loans due to the property as collateral.
• Long Tenure: The repayment period can extend up to 30 years.
• EMI Structure: Repayment is usually through Equated Monthly Installments (EMIs).
• Tax Benefits: Tax deductions can be claimed on the interest paid on the home loan.
• Prepayment charges: Some lenders may charge a fee for prepaying the loan.

Factors affecting mortgage loan eligibility:

• Income stability
• Credit score
• Property value
• Down payment

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