A type of loan which is given by the bank against a property is the mortgage loan. It is a kind of secured loan in which your assets are provided as a collateral to the bank or lender. This is the more popular form of loan taken by many people. The lender gains the security of the money as he or bank have the property as the security.In the mortgage loan, the tenor span can be prolonged and the span can be decided by the person who takes the loan. A mortgage can be sanctioned on any immovable property like commercial property or house. The lender or bank keeps the property as the collateral as a security till you repay the loan money back. The mortgage loan is of three types and includes loan against property, commercial property loan and home loans. The commercial property loan or house loan are given only for buying a commercial space or house respectively. The loan against the property doesn’t have any restrictions. This can be used for weddings, higher education, home renovation, etc. Many banks provide the loan against the property within short span. The loan is sanctioned on the interest rate present on the day you availed the loan. But you have chance of changing the interest rate to the current FHA streamline rates. With this you can pay low interest rate for the loan against property loan.
Features of the mortgage loan:
- The processing time for any type of mortgage loan like house loan, commercial property loan or loan against property is quick. Most banks can avail the loan within three days. But you need to fulfil the eligibility criteria given by the bank.
- The eligibility criteria for mortgage loan is very simple. The person who wants to take mortgage loan should have the age ranging between the thirty three and fifty eight if salaried. If self employed, you can apply the loan between the age of twenty five and seventy. The income should be stable for you to take the loan. The stable income will make you to repay the money back without any delay.
- The documents required for the mortgage loan is limited. It require few documents like I’d proof, address proof, salary slips, income tax returns, bank account statements, documents of the assert that is to be mortgaged.
- You can take the loan of one crore in the mortgage loan if you are salaried and up to three and half crores if self employed. But the loan amount depends on the value of the property you mortgage.
- The interest rates are less than the other types of unsecured loans. The lower interest rates make you easy repay.
Hope you got an idea on mortgage loan.