Mortgage Loan

A mortgage loan is a secured loan offered by banks or financial institutions to help individuals buy residential or commercial property. The borrower agrees to repay the loan amount over a fixed period through EMIs (Equated Monthly Installments), which include both principal and interest.

The property purchased acts as collateral, meaning if the borrower fails to repay, the lender has the legal right to seize and sell the property to recover the outstanding loan.

Mortgage loans come with different interest rate options – fixed or floating – and usually have longer repayment tenures, ranging from 10 to 30 years. Approval is based on credit score, income stability, property value, and repayment capacity.

Types of mortgage loans include:

• Home Purchase Loans

• Home Construction Loans

• Home Improvement Loans

• Loan Against Property (LAP)

A mortgage loan helps make real estate ownership accessible by spreading out the cost over time, though it comes with the risk of foreclosure if repayments are not made.