Secured Loans – Mortgage loans – Home Loans & LAPs
Secured Loans - Mortgage loans – Home Loans & LAPs
A Mortgage Loan is a secured loan where the borrower pledges an immovable asset, typically real estate, as collateral. The lender provides a loan based on the property’s value, and in case the borrower defaults, the lender has the right to seize the property to recover the outstanding loan amount.
Key Features
- Collateral Requirement: The property (land, home, or commercial real estate) is mortgaged to the lender.
- Loan Tenure: Typically ranges from 5 to 30 years.
- Interest Rates: Can be either fixed or floating (adjustable).
- Usage of Funds: Mortgage loans can be used for a variety of purposes, such as buying another property, refinancing existing debts, or other personal/business needs.
Conclusion Choosing the Right Secured Loan
Mortgage Loans
are general-purpose loans where you leverage property for financial needs, but they carry the risk of losing your property.
Home Loans
are a more focused type of mortgage loan, aimed at enabling individuals to buy or build a house with structured, affordable repayment options.
Loans Against Property (LAP)
Loans Against Property (LAP) are flexible loans where you can use the loan amount for a range of purposes, making them ideal for those needing larger sums for personal or business use.
