A mortgage loan in simple term is a secured loan, borrowed against property. It is a debt instrument which:
- People can take to purchase a property like land, home, etc.
- People take a loan against their property for personal or business purpose e.g. working capital, business expansion, etc.
The ownership of the property is retained with the owner. If a borrower fails to repay, the lender has the complete right to possess or sell the secured property. The borrower needs to repay the principal and interest amount on the loan within a period.
Interest rates for mortgage loans:
- Fixed-rate mortgage : The interest rate will remain fixed or constant throughout the tenure of the loan. You can not change the interest rate once fixed.
- Adjustable-rate mortgage : The interest rate remains constant for a certain period. With the fluctuations in market rates, it changes. It is also known as a variable or floating rate of interest.
Mortgage loan is helpful for borrowers
It is the best choice for high-value purchases. A mortgage loan assists in raising the necessary funds required to buy high-value assets such as a house or real estate. It can be availed easily if you have a good credit history and the value of the property covers the amount of the loan borrowed.
Many mortgage loan applications are refused due to simple goofs. If the past credit history has been bad, lenders refuse to give mortgage loan. Also, with so many lending options available in the market, it becomes difficult to make the right decision. Interest differs from bank to bank and it's up to the consumers to choose the best deal.All lenders/bankers have some unique features that differentiate them from others.
The interest rates for loan against property in Mumbai are less than other states in India. The fixed interest rate for 10 years is low. Getting a mortgage loan in Mumbai could be beneficial due to the lower interest rates. Mumbai has space constraints, and flats are expensive. Thus, it makes sense to go for a mortgage loan in Mumbai to have your own affordable house.
Mortgage loan gives attractive benefits
- The mortgage loan is for a longer duration and can be repaid in smaller monthly, quarterly EMIs.
- The rate of interest on borrowings is low as compared to other loans.
- It helps you to buy your own house and can be sole owner once the repayment is over.
- The mortgage loan can be easily availed against under-construction property, fully constructed, residential and commercial properties.
- The documentation process is quick and easy.
- It can be availed anywhere in India with integrated branch networks provided by banks.
- The Government provides tax benefits to consumers who take mortgage loan to buy a new house.
Fynamics is a digital lending platform that facilitates quick and hassle-free loans for the salaried employee, self-employed and loans for business at low-interest rates in Mumbai, Surat and Ahmedabad. Anybody can easily apply for loan against property to get the best deals, faster approval and quick disbursal.
