Mortgage Loan

A Mortgage Loan is a type of secured loan provided by a bank or financial institution to help individuals purchase, build, or renovate residential or commercial property. The borrower pledges the property itself as collateral, which means the lender has legal rights to the property until the loan is fully repaid.

Mortgage loans typically have long repayment tenures—ranging from 10 to 30 years—and are repaid in equated monthly installments (EMIs) that include both principal and interest. The interest rate may be fixed, floating, or hybrid, depending on the loan terms.

If the borrower fails to make payments, the lender can foreclose on the property to recover the outstanding amount. Mortgage loans are popular for homebuyers because they offer large loan amounts, lower interest rates compared to unsecured loans, and tax benefits on both principal and interest under many jurisdictions.