Mortgage Loans

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The term Mortgage generally means getting a loan against a property. Mortgage Loans are provided by various Banks and Financial Institutions and are generally provided at an interest rate of 3-5% per annum with the repayments to be made in 10-15 years.

For a Mortgage Loan, Banks will require your property documents and a copy of the same will have to be provided to allow the Bank or the Financial Institution to get the required background checks done. Every Bank will have their own set of rules and regulations to make sure that the property against which the loan is provided is not mortgaged with any other Institution and also to make sure that the property does not have any legal cases attached to it.

Once the necessary checks and cleared, the Bank will assess the property value and sanction the loan which will be a percentage of your property value, this is done to make sure that the Bank or the Financial Institution safeguards their interest incase the property prices fall.

The amount is provided to customer's in their Bank account and can be used for any purpose as deemed fit by the person applying for the Loan. Some people purchase another property using the loan provided by the Bank and create source of income that can cover the Bank's monthly EMI and also provide profit to them month on month.

Few Banks and Financial Institutions provide lucrative offers to customers which include providing them additional interest free cash for furnishing their home when they purchase a home on Bank Loan and that amount is included in the loan outstanding once the interest free period is over.

Takeover also happens for Mortgages and the process is very similar to the process mentioned in my blog- Takeover process, the only change would be STL will not be required in this case.