A mortgage loan is a way to raise funds for your personal or business purpose. The peculiarity of a mortgage loan is the security that must be provided to take advantage of the loan. You can simply take advantage of the property you own to raise funds for a property you plan to purchase or to fulfill your business requirements. There are several circumstances where you need to raise funds from an outside source. Banks and financial institutions offer a variety of financing options for you to choose from. With competitive interest rates and a flexible payment tenure, you can take advantage of a loan for personal and business purposes. You can make use of a mortgage loan for the expansion of your business, acquisition of machinery or plant, financing of projects, purchase of new properties, expansion of the market.

Since it is a guaranteed loan, it will be essential to mortgage a property against this loan. You can mortgage your idle property and raise funds for it. It could be any property you own and the loan amount will be secured against the mortgaged property meaning you will be able to raise a larger loan amount. The property can be a piece of land, a building, an apartment, a commercial space, a factory, a store, a country house, a hotel, a guest house, a nursing home, or an industrial property. A home loan can be customized to your requirements and comes with several benefits, such as a lower interest rate, a larger loan amount, and a longer tenure. Likewise, business entities and self-employed professionals can claim tax benefits on them.

A home loan is available to business entities, merchants, service providers, manufacturers, and self-employed professionals. For a home loan, the applicant must provide proof of income, proof of identity, and proof of address. Also, it is important to present the property documents and also make sure that the property is insured against hazards such as fire. In the case of joint ownership of a property, the co-owners will become co-applicants for the loan. The value and age of the property are the main criteria for loan approval. Based on it, and the market value of the property, the loan is sanctioned. Once the application is processed, the Bank or financial institution will add an appraiser who will determine the market value of the property and based on it, the amount of the loan will be sanctioned. Typically, 60% of the property value is sanctioned as the loan amount. The tenure of this loan is longer due to the higher value and this allows the borrower to pay the same in regular installments over time. It comes with a flexible tenure of up to 180 months and a loan amount of up to Rs 15 million.

In the case of a secured loan, it is important to pay the installments on time. Since the property is mortgaged to the Bank, the Bank can transfer the property in case of regular default in the payment of installments. The Bank will also notify the payment and if the Bank defaults again, the Bank will have to auction the property and you could lose ownership of it. Therefore, it is extremely important to ensure that refunds are made on time. It also offers the option of prepaying the loan before the payment schedule ends. This option will save you interest payments and also provide you with a positive credit score. People with a satisfactory or positive credit score can easily process their loan.