6 Types of Mortgage Loans Perfect For a New Loan Seeker
Mortgage loans are secured loans with collaterals. Most of the times, these loans are given against properties, whether it is residential, or commercial. In today’s market, multiple financial institutions provide Mortgage Loan for salaried or self-employed individuals on eye-catching terms.
In this respect, Bajaj Finserv emerges to be a viable option in providing their prospects with hassle free mortgage loan amounts coupled with flexible repayment options.
Predominantly, a mortgage loan interest rate deems to be lower than personal loans making it a preferable option among prospects. Moreover, their tenor period is also longer than the latter, giving you ample time to repay the amount.
Although multiple mortgage loan options dwell today, a new loan seeker often faces difficulty in choosing a suitable scheme. So, let’s look at the varied options of mortgage loan available for a new loan seeker.
- Simple Mortgage Loans –
Whenever you choose a simple mortgage plan, you are getting a loan against your property, without handing over the ownership. You have to repay the loan at a mutually agreed interval.
However, if the borrower fails to repay the loan, the lender can repurpose the property according to their needs.
2. Title Deed Deposited Mortgage Loan –
If you choose to deliver your property to an agent or mediator and then avail a loan against it, it will be a title deed deposited mortgage loan. You will not have to pay the stamp duty when you avail this type of loan.
3. Reverse Mortgage –
In normal loans, a borrower repays monthly, and eventually, after completing the instalments, the loan gets repaid. However, in a reverse mortgage loan, a lender pays the mortgage money every month to the mortgagor, making it an equity type of payment.
A reverse mortgage scheme can prove helpful when you need periodic cash flow. You can also Repay An Existing Debt with Mortgage Loan with this type of loan.
4. Usufructuary Mortgage Loans –
If a mortgagor passes the ownership or binds himself to pass the possession to the lender, it will be identified as a usufructuary mortgage.
It is distinctive, as the profit from the property goes to the lender until the debt is paid off.
5. Conditional Sale Mortgage –
When a borrower fails to repay the debt, he/she can sell the property (as the ownership lies with him/her) and pay the remaining balance to the bank or NBFC. It is known as a conditional sale. In this case, if the property does not hold any value, the lender reassigns it to the borrower.
Why Choose A Mortgage Loan –
Mortgage loans offer various advantages over a conventional loan. They can be availed against any property or land, and even against properties under construction. You can opt for a longer repayment term with smaller EMIs, and the interest incurred is predominantly lower than personal loans.
With loan amounts effectively higher than most other borrowing options, mortgage loans allow individuals to handle crisis situations such as a medical emergency, an unprecedented financial nose dive or economic fallout.
Under such circumstances, a mortgage loan from financial institutions like Bajaj Finserv deems fruitful. They offer a good percentage of your property’s market value as your loan amount, and offer flexible repayment tenor for your convenience.
They also give pre-approved offers on different products and financial services. Such convenience brings ease and saves you time when you opt for a financial loan from Bajaj Finserv, by going through pre approved offers on loan against property, simply enter some basic details and know your credit availability.