In India, mortgage loans are a type of secured loan where an asset of the borrower’s choosing is kept as collateral. This mortgaged asset provides a type of security to the lender just in case the borrower is unable to pay the loaned amount back. These types of loans are popular for their long tenure period as well as their high loan amount. The collateral asset mortgaged is usually of a high value asset as well as an immovable asset. Mortgaged loans in India can be used for a variety of purposes from personal to professional. The loaned amount can be used to fund your child’s education, marriage, can be used for travel expenses, or any unavoidable emergencies.
In India, Mortgage loans are a great way to generate any additional income from idle properties that are not occupied and just idle. It can be a great way to gain extra money. Mortgage loans are of three types, these include- home loans, commercial property loans, and loans against property. However, a home or commercial loan can be exclusively used only to purchase a house or any commercial property respectively. But with loans against property, the usage of the loaned amount can be anything of the borrower’s choice. Any Indian citizen with a regular source of income and owning a non-agricultural property is eligible for these loans. The age limit for these loans is between 18 years to 75 years. Any Indian citizen whether resident or non-resident can apply for these loans. Individuals can apply singly or jointly with other individuals who meet the eligibility criteria. Mortgage loan India can have a wide range in their loaned amount. Mortgage loans can be a minimum of Rs 5 Lakhs. The maximum amount for Indian residents is Rs 10 crore and for non-resident Indians, it is Rs 5 crore.
The margin for the property evaluation is 50% of the fair market value as per the latest valuation report. The nature of the facility can either be term loans or overdrafts. Term drafts allow a maximum tenure of 15 years. Under this, there is also a residual period till the borrower attains the age of 75. Overdrafts also offer a maximum tenure of 15 years. One of the most attractive features of opting for a mortgage loan in India is the flexibility to withdraw money earlier and there is no pre-payment penalty.