Mortgage Loan

A mortgage loan is a financial product offered by banks, housing finance companies, and other lending institutions to help individuals or businesses purchase, construct, or refinance residential or commercial property. It is one of the most common forms of secured lending, where the property itself acts as collateral for the loan.

🔑 Key Features

• Purpose: Primarily used for buying a home, apartment, plot, or commercial space. It can also be availed for refinancing an existing mortgage or for home improvement.
• Collateral: The property being financed is pledged to the lender as security until the loan is fully repaid.
• Tenure: Typically ranges from 10 to 30 years, depending on the borrower’s eligibility and repayment capacity.
• Repayment: Borrowers repay the loan in Equated Monthly Installments (EMIs), which consist of both principal and interest.
• Interest Rates: Can be fixed (constant throughout the tenure) or floating (linked to market rates, subject to change).
• Eligibility: Based on factors such as income, credit score, employment stability, and property value.