Bajaj is Offering Mortgage Loans with Flexible Tenor

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Mortgage Loan

• Meaning, Process, Types and Interest Rate

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Meaning

• A mortgage loan is a type of secured finance.
  Under the mortgage loan, you can avail a large
  loan amount when you keep an immovable asset as
  collateral with the lender.
• The security could be anything from a residential
  to commercial property or other ones like heavy
  machinery and even industrial property.
• Since borrowers keep collateral to avail such a
  loan, the applicable rate of interest on it is
  much lower. Hence, you can avail a large loan
  amount to meet your different needs and pay
  smaller EMIs.

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Types of Mortgage Loan

• Simple mortgage - Under this type of mortgage
  loan, you are allowed to mortgage the immovable
  property to get the loan personally simply.
• Usufructuary mortgage - This type of mortgage
  loan permits the transfer of the propertys
  possession to the lender.
• English mortgage - This type of mortgage loan
  leads to the establishment of personal liability
  on the borrower.

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Types of Mortgage Loan

• Mortgage by conditional sale - In this type of
  mortgage loan, a mortgagor sells the property
  with conditions that it will become effective if
  there is the default on repayment.
• Mortgage by deposit of the title deed - If you
  want to know how to get a mortgage loan under
  this type, then the applicant deposits the
  mortgaged property title deed. It is with the
  loan provider and is against the loan to avail.
• Anomalous mortgage - You have so far come to know
  how to get a mortgage loan under various types.
  Under the anomalous mortgage, any mortgage that
  does not fall under the discussed ones is the one
  that lies within it.

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Aspects Determine Mortgage Loan Interest Rates

• LTV Ratio - Loan to Value (LTV) refers to the
  percentage of the value of the property that you
  can get while keeping the asset as the
  collateral. A large loan amount comes with a
  higher interest rate. It is as the credit risk of
  the lender is higher.
• Your Cibil Score - The credit score does have an
  impact on mortgage loan interest rates. It is the
  mirror of your creditworthiness. It showcases if
  you have paid earlier and ongoing EMIs on time or
  not.
• The Location Of The Property - The location of
  the new home if you are availing a mortgage loan
  may hamper the rate of interest. A home located
  with better connectivity and infrastructure will
  have a greater resale value.
• Your Job Profile - If you have been well employed
  and have a consistent source of income, then
  lenders may consider you as a low-risk loan
  applicant.

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You Must Consider a Few Factors Beforehand

• But before you apply for it, you must consider a
  few factors beforehand. It will help you approach
  and manage the loan better. Read on and know
  more!
• Know the Loan Amount That You Will Get
• Be Aware of the Repayments and the EMIs That You
  Will Pay
• Check out Property Loan Interest Rates
• Know if You Can Make Prepayments and Manage Fees
  for IT
• Know if You Can Avail any Tax Benefits or Not
• Compare Property Loan Interest Rates of Lenders