How does a mortgage loan work
A mortgage loan is secured in nature. This means, you pledge a property and avail a loan against it. This property is the collateral that is held by the lender until you repay the loan fully. Repayment is made through equated monthly EMIs. Mortgage loan interest rates are lower than the interest rates of unsecured loans due to the presence of collateral, which reduces the lending risk.
In the initial stages, the interest component constitutes a larger part of your EMIs as compared to the principal amount. As you continue through the tenor, the principal component of your EMI increases while the interest value decreases. However, the total EMI value remains constant.
As you continue through the tenor, the principal component of your EMI increases while the interest.
Other features of mortgage loans
Here’s a look at some of the other features and benefits of a Mortgage Loan
- High value loans
A salaried individual can avail up to Rs. 1 crore, while a self-employed individual can avail up to Rs. 5 Crore* - Longer repayment tenor
The repayment tenor ranges from 2 to 18 years for salaried and for self-employed customers - Competitive interest rates
Mortgage loan interest rates are lower than the interest rates of unsecured loans - Minimal documents
You only have to provide few basic documents to avail a mortgage loan. Bajaj Finserv processes the fastest Loans Against Property in just 72 hours* along with loan amount disbursals within 3 days* - Simple eligibility criteria
The mortgage loan eligibility criteria can be fulfilled easily. You must be within the age bracket of 28 and 58 if you are salaried, and between 25 years and 70 years of age if you are self-employed. A good CIBIL score will further ease the loan approval process
Apply for a Bajaj Finserv Mortgage Loan and finance your needs today.
