How does a Mortgage Loan work?

Mortgage loans are secured in nature. A borrower must mortgage a property with the lender to avail this type of a loan. The collateral is held by the lender until full repayment of the loan is done. The loan is repaid through equated monthly instalments or EMIs.

The repayment schedule of a mortgage loan is calculated on the basis of amortisation. It refers to the process of calculating the amount of EMI. The value mainly depends upon the mortgage loan interest rates and the principal loan amount.

At the initial stages, the interest component will constitute a larger part of your EMIs as compared to the principal amount. As you continue through the repayment tenor, the principal component of your EMI will increase while the interest value will decrease. However, the total EMI value will remain constant throughout the tenor.

Some other features of mortgage loans include:

  1. High-Value Loans
    A salaried individual can avail up to Rs. 1 crore, while a self-employed individual can avail up to Rs. 3.5 crore.
  2. Longer Repayment Tenors
    The repayment tenor ranges from 2 to 20 years for salaried customers and 2 to 18 years for self-employed customers.
  3. Competitive Interest Rates
    Mortgage loan interest rates are lower than the interest rates of unsecured loans.
  4. 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 4 days.

Also Read: How to use Loan Against Property?



  1. Simple Eligibility Criteria
    The mortgage loan eligibility criteria can be fulfilled easily. You have to be within the age bracket of 33 and 58 years if you are salaried, and between 25 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.