Know More About What is Mortgage Loan - PowerPoint PPT Presentation

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Know More About What is Mortgage Loan

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A mortgage is a loan from a bank or lender to help you finance the purchase of a home. When you take out a mortgage, you make a promise to the lender that it will act as a security or we can say collateral. – PowerPoint PPT presentation

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Title: Know More About What is Mortgage Loan


1
KNOW EVERYTHING ABOUT MORTGAGE LOAN AND ITS
INTEREST RATES
2
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.

3
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4
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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6
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.

7
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.

8
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