Mortgage Loan

A mortgage loan is a long-term financial product offered by banks and financial institutions that allows individuals to buy, build, or renovate property. The property itself acts as collateral, meaning the lender can take ownership if the borrower fails to repay the loan.

Borrowers repay the loan through monthly installments (EMIs), which include both principal and interest components. The interest rate can be fixed, floating, or hybrid, depending on the loan terms.

Mortgage loans usually have repayment periods ranging from 10 to 30 years, and eligibility depends on factors like income, credit score, employment stability, and property value. Common types include home purchase loans, home construction loans, home improvement loans, and loan against property.

A mortgage loan helps individuals achieve home ownership while providing lenders with secured lending opportunities due to the property guarantee.