All About Mortgage Loan

Mortgage loan is a type of secured loan. This type of loan is offered by many leading banks and NBFCs in Mumbai. One has to keep his/her assets as mortgage to keep it as collateral to the bank/NBFC to get a mortgage loan against it.
As mortgage loans are a type of secured loan, one gets benefits of lower interest rate compared to an unsecured loan like personal loan. Mortgage loan can be taken for longer tenure, as long as 30 years. One can avail maximum funds by taking a mortgage loan. As there is an asset involved in mortgage loan, one can to deal with a lot of documentation. The asset that is being kept as mortgage should be not be under any legal dispute and should officially be in the name of the loan borrower. The bank or NBFC keeps the mortgaged asset to themselves or the original papers of the asset under their custody (depending upon the type of asset). The asset or its papers are released to the loan borrower once the loan is paid in full in the given tenure. If the loan borrower fails to pay off the loan, the bank/NBFC sells the asset to recover the loan money. If there are any funds left after selling the asset, the lender gives those funds to the loan borrower.
There are various types of mortgage loans available in Mumbai:
Home Loan: This is the most famous and common type of mortgage loan. One can get a home loan to buy new property (flat/bungalow/row-house), to buy an under construction property, to buy a second hand property, to buy a land to build a property on it, to buy a commercial property (office, shop, commercial building), to renovate their existing property or to expand their current property. The home loan tenure ranges up to 30 years. Banks and NBFCs provide 80%-90% amount of the house which will be kept as mortgage. Until the loan is paid in full, the property documents are kept with the bank/NBFC. The loan borrower can use the property while it’s being kept as mortgage.

Loan Against Property: This type of mortgage loan is taken if anyone needs funds for emergency needs or to fulfill their personal/professional needs. One can get a loan against property for their residential as well as commercial property. The tenure for loan against property ranges from 5 to 20 years. One can get maximum amount of loan this type of loan. Banks and NBFCs provide 70%-80% loan amount of property’s current market price. Just like home loan, until the loan against property is paid in full, the property documents are kept with the bank/NBFC. The loan borrower can use the property while it’s being kept as mortgage.