Know More About What is Mortgage Loan

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KNOW EVERYTHING ABOUT MORTGAGE LOAN AND ITS
INTEREST RATES
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What is Mortgage Loan?

• In the present economic scenario, loans have
  become one of the popular financing sources that
  can sufficiently fulfil big-ticket expenditures.
  Under such circumstances, individuals can look
  for secured advances like mortgage loans as a
  more feasible option for high-value funding.
  These are financing options availed against the
  mortgage of a residential or commercial property
  and come with an extended repayment tenor.

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Features of Mortgage Advances

• Mortgage loan are primarily available in two
  types home loans and loans against property.
  While home loans are designed to fund a
  residential property purchase, property loans or
  loan against property come with unrestricted
  end-use. Some typical features of these advances
  include
• Simple eligibility requirements
• High-value financing
• Simple documentation
• Flexible tenor options
• Fast processing of loan applications

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Interest Rates on Mortgage Loans

• Usually, interest rates of mortgage loan are
  lower compared to the other traditional unsecured
  funding options. It is because the risk of
  lending is lower with these advances due to the
  presence of a mortgage, allowing lenders to
  provide competitive rates.
• However, the property loan interest rate can be
  different from that of home loans even although
  they both are mortgage advances. Here, it is
  essential to note that such a difference is not
  as remarkable as for unsecured advances.

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Working Process of Mortgage Loans

• A mortgage advance like a loan against property
  is considered one of the most convenient ways to
  raise size-able funds of up to Rs.3.5 crore.
  However, when applying for it, borrowers must
  analyse their repayment capacity beforehand.
• A strong financial profile can prove beneficial
  in obtaining the loan at affordable terms. Ones
  credit profile is measured by an excellent credit
  score, timely payments, and responsible use of
  previous debt tools, among other parameters.
• Once availed, borrowers can repay the loan
  liability in EMIs extending over a tenor of up to
  20 years.

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