Mortgage Loan
A mortgage loan, also known as a loan against property (LAP), is a secured loan where you can borrow funds by pledging your residential, commercial, or industrial property as collateral. It is widely used for personal, business, or education-related financial needs.
Key Features
- Loan Type: Secured (property as collateral)
- Usage: Business expansion, education, medical needs, etc.
- Loan Amount: Depends on property value (typically 50–70% LTV)
- Tenure: Up to 15–20 years
- Interest Rate: Lower than personal loans
- Property Ownership: Must be self-owned and free from legal disputes
Eligibility Criteria
- Age: 21–65 years
- Ownership of residential/commercial/industrial property
- Stable income source (salaried/self-employed)
- Good repayment history and credit score
Required Documents
- KYC documents (Aadhaar, PAN, etc.)
- Property documents with title deed
- Income proof (Salary slips/ITR)
- Bank statements (last 6 months)
- Photographs, and any existing loan documents (if applicable)
Benefits
- Large loan amount based on property value
- Longer repayment tenure
- Lower interest rate compared to unsecured loans
- Retain property ownership while using funds
Top Lenders Offering Mortgage Loans
Banks like HDFC, SBI, ICICI, Axis, LIC Housing Finance, and Bajaj Finserv offer competitive rates on mortgage loans.
Important Notes
- Ensure the property has a clear title and no ongoing disputes
- Loan approval depends on property valuation and income profile
- Failure to repay can lead to property seizure by the lender