Mortgage Loan

A mortgage loan is a secured loan where a borrower receives funds from a lender to buy a home, land, or other real estate property. The property being purchased acts as collateral, which means if the borrower fails to repay the loan, the lender has the right to seize and sell the property to recover the outstanding debt.

Mortgage loans are typically long-term, with repayment terms ranging from 10 to 30 years, and can come with either fixed or floating interest rates. The borrower repays the loan through Equated Monthly Installments (EMIs) that include both principal and interest.

There are different types of mortgage loans, such as:

• Home Purchase Loans

• Home Construction Loans

• Home Improvement Loans

• Loan Against Property (LAP)

Mortgage loans are widely used due to their lower interest rates compared to unsecured loans and the ability to own a high-value asset with relatively lower upfront costs.