What is a Mortgage Loan and How Does It Work?
Author : anil sinhaanni | Published On : 19 Apr 2021
Having a fixed property of home is a dream of everyone in the country, but it also has another blessing in disguise for Mortgage Loans. From time to time, everyone would need some financial assistance, especially during the current pandemic ridden time, and with Mortgage Loans, an individual can avail themselves of a loan with the individual owned property as collateral and use the fund for genuine personal use like health emergencies, business expansion, wedding expenses, education fees, a vacation abroad, and many more.
How does a Mortgage Loan work?
A Mortgage loan is just like any other loan out there; the individual has to make timely payment to the lender for the principal amount borrowed with the added interest and other charges with the property serving as the collateral. To avail themselves of Mortgage Loans, an individual has to have a good credit history, with the credit score playing a significant part in determining the interest rate of a Mortgage Loan.
Mortgage Loans are secured loans as the individual-owned property is the collateral for the lender; if the borrower is unable to make the payments on time, the lender will possess the property to reimburse itself.
Criteria to apply for a Mortgage Loan in India
· The individual should be above 23 years of age.
· The credit score of the applicant should be upwards of 700 to indicate a good credit history.
· The applicant should be able to prove a monthly income of 30,000 INR and above.
· A permanent bank account in India
· The applicant has to be of Indian nationality.
Types of Mortgage Loans
There are different types of Mortgage Loans available in the market, including ones that can be utilised for medical treatments, marriage, higher studies of your child, business expansion as well as vacation expenses. Mortgage Loans can be easily classified into three categories:
1. Regular Loan Against Property
This is the most common usage of Mortgage Loans, where the borrower takes loans against the property for purposes like business expansion, marriage and medical emergencies. In this case, the loan is taken against an already individual owned property, which serves as the collateral.
2. Loan Against Property Overdraft
Loan Against Property Overdraft for businessman and self-employed individuals whose income is subject to fluctuations during the year, and with Loan Against Property Overdraft, they can pay the loan amount at any time.
3. Loan Against Property Top Up
In case of the borrower already has an existing loan, the Loan Against Property Top Up allows the additional loan amount to be added to an existing loan.
For quick Mortgage Loans in Hyderabad, Finfree Enterprises is the best choice one can make. At Finfree Enterprises, one can easily apply for quick Mortgage Loans in Hyderabad and that too at a highly reasonable interest rate; an individual can easily have a Loan Quantum of up to 75 lakhs with unrestricted preconditions for usage. And with manageable repayment options and quick processing & approvals, Finfree Enterprises offers a seamless process for quick Mortgage Loans in Hyderabad to its customers. If you are looking to apply for mortgage loans, be sure to understand how it can be of great help to you. This way you can get amazing benefits from your choice of taking out mortgage loans.