What is Mortgage Loan?

Hello friends, In this post I have told you what a mortgage loan, how to apply it and what are the types of mortgage loans, you will get information in this post.

What is meant by mortgage A mortgage or mortgage loan is a loan taken against property (such as gold, house, and land). In which a person mortgages his property (such as gold, house, and land) with a financial institution and takes some amount on it as a loan and after paying the loan amount, the ownership of his property (owner) is returned receives.

How Many Types Of Mortgage Loans?

Although there are many types of mortgage loans, There are mainly Six types.

Loan Against Property (LAP) - LAP stands for Loan Against Property commonly known as LAP. While taking a home loan, the same land or plot is mortgaged for which you have taken a loan to buy it. Whereas the loan obtained by mortgaging one's own land, house, or any property is called Loan Against Property (LAP) loan. You can use the amount received from LAP for any need. There is no restriction of any kind on this.

Commercial Purchase - A commercial loan is a financial instrument that business owners can avail of to meet any short-term capital requirements. The sanctioned amount can be used for raising working capital, acquiring new machinery, construction of new infrastructure, operating costs, and meeting other such expenses.

Lease Rental Discounting - Leasing your own business assets (like money, gold, house, etc.) is a very common practice. Mortgage loans are also taken against leased properties. This is called 'lease rental discounting. The monthly rent amount is called EMI and then the loan amount is taken on the basis of EMI. The tenure of the loan (there is a time limit) and the amount of the loan, both depend on how long the property is to be leased.

Second Mortgage Loan - If someone borrows and applies for a loan again, then that loan is called Second Mortgage Loan, in this the bank or NBFC office works to re-loan to the borrower, but on some conditions and some rules, then only the borrower gets the loan. The loan is given against some mortgage and the borrower has to start paying the EMI of the second mortgage loan along with the first mortgage home loan.

Reverse Mortgage - Under the reverse mortgage scheme, after the death of the person pledging his house, the house becomes the bank. Now if the family of that person wants to take the house, then the house can be bought by paying the price of the house. Under this scheme, the bank gives loans only to people above the age of 60 years. There are some banks that do not give these loans on crossing the age of 72 years.

Home Loan – A mortgage or mortgage loan is a loan taken against the property. In which a person mortgages his property with a financial institution and takes some amount on it as a loan and after paying the loan amount gets back the ownership of his property.

Also Read - What is Insurance / Type of Insurance

How to Apply for Mortgage Loans –

There are some Terms and Conditions to applying for a Mortgage Loan, you have to read them properly and then apply a very important document while applying which is written below -

A copy of your PAN card
The mortgage loan application form was filled correctly
Some accepted KYC documents like - Aadhar Card / Driving License / Voter ID Card / Lease or Rent Agreement
Business Proof: Sales Tax / Service Tax / Excise / VAT Registration / Business License / Partnership Deed / Certificate of Practice
Income proof: ITR statement for last three years, balance sheet, P&L account, and bank account statement for last six months

Conclusion - With all these documents your loan will be passed. You have to apply in this way, hope you liked this post, if you have any doubts or any queries, then you can comment to us in the comment box.

Also read - What is a Mortgage? Know All the Details

What is Mortgage Loan? | How Many Types of Mortgage Loan