Two terms are floating in the finance market – mortgage loan and loan against property. It is easy to think that these two loans are different from each other. But, in reality, these are two different names for the same loan.
So, what is a mortgage loan?
It is a loan that a borrower is entitled to when they put up a self-owned property as collateral against the loan. It can be an industrial plot, a commercial property, a residential plot of land, or a residential property. The property papers are submitted to the lender at the time of the application process.
Who is eligible for a mortgage loan?
While all lenders will have different criteria for the loan in terms of age and income, all of them require the borrower to be the owner. If it is a jointly owned property, then all co-owners should be co-borrowers to the loan.
How do you calculate the EMI?
A delay in EMI payment leads to penalties, and borrowers should understand their liability before filling the application form. One way to judge the monthly installment is using the mortgage loan EMI calculator. It is free and easy to use, allowing borrowers to get an approximation of the principal and interest amount they will pay each month.
It is important to remember that the tenure of a loan extended by lending companies is up to 30 years. Hence, it is important to know and understand the applicable terms and conditions before filing your mortgage loan application with the lender.
